HUMAN RESOURCE INFORMATION SYSTEM (HRIS)= An integrated system designed to provide information used in HR decision making.
1.PURPOSES OF AN HRIS
The second purpose of an HRIS is more strategic and related to HR planning. Having accessible data enables HR planning and managerial decision making to be based to a greater degree on information rather than relying on managerial perception and intuition. For example, instead of manually doing a turnover analysis by department, length of service, and educational background, a specialist can quickly compile such a report by using an HRIS and various sorting and analysis functions.
HR management has grown in strategic value in many organizations; accordingly, there has been an increased emphasis on obtaining and using HRIS data for strategic planning and human resource forecasting, which focus on broader HR effectiveness over time.
2.USES OF AN HUMAN RESOURCE INFORMATION SYSTEM HRIS
An
HRIS has many uses in an organization. The most basic is the automation of payroll
and benefit activities. With an HRIS, employees’ time records are entered into
the system, and the appropriate deductions and other individual adjustments are
reflected in the final paychecks. As a result of HRIS development and implementation
in many organizations, several payroll functions are being transferred from
accounting departments to HR departments. Another common use of HRIS is EEO/affirmative
action tracking. Beyond these basic activities, many other HR activities can be
affected by the use of an HRIS, as Figure illustrates.
Uses of a Human Resource
Information System (HRIS)
3.ESTABLISHING
AN HUMAN RESOURCE INFORMATION SYSTEM
The explosion of information technology has changed the nature of HR information usage. Just a few years ago, most HR information had to be compiled and maintained on mainframe computers. Today, many different types of information technology are being integrated and used so that HR professionals can access HR-related data and communicate it to other managers and executives.
CHOOSING AN HRIS
It
is crucial when establishing an HRIS that the system be able to support the HR
strategies of the organization. This requires analyses of the uses
of HR information, both in the HR unit and throughout the organization.
Too often, the decisions about an HRIS are made based primarily on cost factors, rather than on how well the HRIS supports HR decision making.
DESIGNING AND IMPLEMENTING AN HRIS
To design an effective HRIS, experts advise starting with questions about the data to be included:
- What information is available, and what information is needed about people in the organization?
- To what uses will the information be put?
- In what format should the output be presented to fit with other company records?
- Who needs the information?
- When and how often is it needed?
Answers to these questions help pinpoint the necessary hardware and software.
Experts
recommend that a project team be established and extensive planning be
done. This team often includes representatives from several departments in the
organization, including the HR and management information/data processing areas.
The team serves as a steering committee to review user needs, identify desired
capabilities of the system, solicit and examine bids from software andhardware
vendors, and identify the implementation process required to install the
system. By involving a cross-section of managers and others, the organization attempts
to ensure that the HRIS fulfills its potential, is accepted by users, and is implemented
in an organized manner.
Many
different types of software systems are available to provide human resource information.
Some HRIS software systems use mainframe computers and represent significant
costs for purchase and installation. Other HR software systems can be run on
personal computers and through local area or wide area networks in
organizations. Growing use is being made of the Internet as a base for HR
information systems.
ACCESSING THE HRIS VIA INTRANETS AND EXTRANETS
The
dramatic increase in the use of the Internet is raising possibilities and
concerns for HR professionals, particularly when establishing intranets and
extranets. An intranet is an organizational network that operates over
the Internet.
Intranet=
An organizational network that operates
over the Internet.
The
growth in the use of HR intranets
for obtaining and disseminating HR information is seen in a study of
about 50 global firms, about 45%
of whom are using global intranets, up from 27% in just one year.
An extranet is an Internet-linked network that allows employees access to information provided by external entities. For instance, with an extranet, employees can access benefit information maintained by a third-party benefits administrator.
Extranet
= An Internet-linked network that allows
employees access to information provided by external entities.
In
another situation employees can access their payroll information
from a payroll service provider
and submit their travel requests to an external
travel-service provider. For both
extranets and intranets, security is important to prevent unauthorized or inappropriate access and usage.
Use
of web-based information systems has allowed the firm’s HR unit to become more
administratively efficient and to be able to deal with more strategic and
longer-term HR planning issues.
Firms
have used these web-based HRIS options in four primary ways:
·
Bulletin boards: Information on personnel policies, job posting, and training
materials can be accessed
by employees globally.
·
Data access: Linked to databases, an extranet or intranet allows employees
themselves to access
benefit information such as sick leave usage, 401(k) balances,
and so on, freeing up time
for HR staff members who previously spent
considerable time
answering routine employee inquiries.
·
Employee self-service: Many intranet uses incorporate employee self-service
options
whereby employees can access and update their own personnel
records,
change or enroll in employee benefits plans, and respond to employment
opportunities
in other locations. Obviously, maintaining security is critical
when
the employee self-service option is available.
·
Extended linkage: Integrating extranets and intranets allows the databases
of vendors of HR services
and an employer to be linked so that data can be
exchanged electronically.
Also, employees can communicate directly from
throughout the world to
submit and retrieve personnel details.
TRAINING
Training
those who will be using an HRIS is critical to the successful implementation of
an HRIS. This training takes place at several levels. First, everyone in the
organization concerned with data on employees has to be trained to use new
recording forms compatible with the input requirements of the system.
In
addition, HR staff members and HR executives must be trained on the system.
Support
and instruction from hardware and software vendors also are important in order
for the organization to realize the full benefits of the system. One study of
HRIS successes found that the presence of in-house training was linked with greater
user satisfaction with an HRIS.
ENSURING SECURITY AND PRIVACY
Two
other issues of concern are security and privacy. Controls must
be built into the system to restrict indiscriminate access to HRIS data on
employees. For instance, health insurance claims might identify someone who has
undergone psychiatric counseling or treatment for alcoholism, and access to
such information must be limited. Likewise, performance appraisal ratings on
employees must be guarded.
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