Human Resource Information System

(HRIS)
In the contemporary scenario of modernization and globalization, organizations heavily
rely upon technological advancement and innovation in the field of Information
Technology.

Advancements in the field of IT has opened up newer avenues for the organizations and
provided a competitive advantage by using innovative and customized solutions. It has
become an integral part of the organizational functioning and all the departments
depend on integrated systems for organizing, storing, retrieving and reviewing data.
Today Internet and automation has facilitated accessibility, reliability and accuracy of
information; improved organizational effectiveness and provided a leadership edge by
applying technology in various operations.

Human Resource Management function is fast evolving and the application of

Information Technology has revolutionized the way in which organizations operate.

The field of Human Resource Management has been continuously evolving and
the HR in today’s scenario is playing a strategic role than merely a support system.
Human Resource function primarily deals with the employees, employers and all the
people who are related with the organization. It is designed to improve employee
productivity, performance and align the workforce with the business.

The HRM functions in an organization deals with people related issues like Recruitment
& Selection, Compensation, General Administration, Employee Welfare and
Involvement, Communication, Organizational Development, Performance Management,
Employee Motivation, Rewards & Recognitions and Training & Development.

HRIS or Human Resource Information System, is a customized software solution

designed for helping the organizations to automate and manage their HR, payroll,
management and accounting activities. HRIS affects the performance of the people,
processes and key organizational strategies by automating key HR processes like
recruitment, training, manpower planning, performance appraisal and job analysis &
design.

HR software mechanizes the day to day general and administrative functions performed
by the HR department, enhances overall employee productivity and performance. HRM
applications can be used for updating and recording employee information, its usage
can make the recruitment process more robust and effective.

HRMS facilitates applicant tracking, interviewing and confirmation process. Apart from
this, the workforce administration strategies can be streamlined and it can generate
various cost advantages to the organizations by streamlining various functional
operations.

Human resource management system or HR Package (HR solutions) can be used in

training processes, tracking employee performance and participation (performance
management system), payroll management system and accounting, benefits and
leaves.

In a nutshell, HRMS offers distinctive advantages to the organizations by

automating various functions of HRM, thereby reducing the workload of the HR
department and increasing the efficiency of the department by standardizing key HR
processes.

According to Parry (2010), HRIS can serve as a vital strategic tool as it shares crucial
data with the management related with recruitment and retention strategies which can
be aligned with the overall corporate strategy for realizing the organizational objectives
of growth. Additionally, by using HR applications, a company can calculate the overall
costs incurred per employee and it’s effects on the business as a whole (DeSanctis,
1986).

Evolution of HRM and HRIS

Historical data reveals that the evolution of HRIS can be traced back in 1950’s and
1960’s when the first automated systems (payroll system) was introduced (Martinsons
1997). Kavanagh et al. (1990) shared their insights on historical evolution of HRIS by
introducing the historical eras in human resource from the pre-World War II period to the
1980s and how the evolving HR practices had its effect on the HRIS.

With the increasing importance of IT applications in HR, the functioning of HR

department has been undergoing a radical change from mere administrative and
support functions to a more active participant in the strategic decisions of the
organization.

During 1990’s, extensive studies were undertaken on the advantages of the introducing
HRIS in the organization and its influence on the overall human resource strategies and
business planning. Several theorists advocated the advantages of using HRIS and the
organizations were considered to be more competitive if they had a well-equipped HRIS
to support HR functions.

Essential Features of HR Software

Key features which an HR application must have are:

 Employee Database is the most important feature in any human resource

software. This involves filling in all the employee details and relevant data. It can
be revised or updated as per the requirements.
  A robust HR software must include Salary related details as well and the
software that supports this reduces half of the burden of the HR professionals.
The features might vary but nowadays a lot of software are adding time tracking
and attendance too into this feature.
 The option of self service in the software saves a lot of time of the human
resource personnel in big organizations where most of their time is spent on
several HR tasks. With the help of this feature, the staff members may have an
access to the software for updating their won details, without interrupting with the
work of the HR employees.
 Any HR software should have a module on Performance Management. The
software includes certain parameters and scoring system for evaluating the
performance against certain criterions or parameters and shares the complete
performance report. Good HRIS software also tracks training status and
professional development; which may help the HR professionals in implementing
strategic initiatives for boosting employee performance and developing their skills
through T& D initiatives.
 Administrative benefits are also availed from the software, as it generates reports
across various levels and equally of individual employees.
 HR software should also have provisions for publishing the jobs, listing of job and
should support the overall hiring process by producing quick user friendly reports
about various applicants and job descriptions, etc.
 HR software should have ease of accessibility which means it should be
accessible through any gadgets. This provides flexibility in using the software at
anytime and from any place.

HR information systems Data Sources

 Recruiting. Recruiting data gathered from the Applicant Tracking System (ATS)
is the first common data source in the HRIS. This includes the number of
candidates who applied, their CVs and other characteristics, as well as data
about the recruitment funnel, recruitment sources, selection, and so on. This
system is the most common input for recruiting metrics.
 Demographic data. Another key data source is HRIS employee records. This
includes the employee ID, name, gender, date of birth, residence, position,
department, cost center specifications, termination date, and so on. These
demographic data are often included in an analysis as control variables. Also,
when data is combined manually, this is often the database that is enriched with
data from other systems by matching the employee’s ID as a unique identifier.
 Learning management. The learning management system (LMS) is another
source of HR information. The LMS contains a course offering and registers
employee’s progress through different programs. Not all learning data is stored in
the LMS. Often finance holds the information of expenditure on external courses
while learning impact and effectiveness is often measured using surveys.
 Performance management. The performance management system (PMS) is
part of the HRIS and contains information about performance management. This
includes employee reviews and performance ratings.
 Job architecture. Job architecture, also referred to as global grading or job
leveling, is a framework that serves as a foundation for remuneration. Different
roles are put into salary scales that have bands and grades with maximum
reward levels. Different roles apply to different salary scale levels.
 Succession planning. Succession planning schemes are also part of the HRIS.
The amount of data depends on the maturity of the organization’s succession
planning practices. Example data includes leadership development data,
managerial bench strength, and data about which people are next in line for
positions.
 Compensation & benefits. To keep employees engaged, they are
compensated. Compensation and benefits data are also stored in the HRIS.
These include remuneration details but also secondary benefits.
 Talent development. Talent development data is a bit of a weird one out. Talent
programs often consist of courses and workshops that are often included in the
learning management system. However, the broader approach to developing
talent is another key piece of information that can be retrieved from the HRIS.
 Exit interview. Depending on the organization, exit interview information may
also be stored in the HRIS. This provides information on the reasons why
employees have left the organization. This data can be used for analyses aimed
at reducing employee turnover.