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Information & Management 44 (2007) 74–89

www.elsevier.com/locate/im

The use and impact of human resource information systems


on human resource management professionals
Zahid Hussain a, James Wallace a,*, Nelarine E. Cornelius b,1
a
School of Management, University of Bradford, Emm Lane, Bradford BD9 4JL, UK
b
Faculty of Management, McGill University, Montreal, Quebec H3A 1G5, Canada
Received 22 January 2005; received in revised form 19 September 2006; accepted 27 October 2006
Available online 6 December 2006

Abstract
Human resource information systems (HRIS) usage allows the human resource (HR) professional to become a strategic player.
With both increasing functionality and affordability, HRIS are being used extensively in organisations of all sizes. Despite this,
surprisingly little is know about the current usage, whether disparities exist between companies of different sizes, or about the
impact HRIS has on the general professional standing of the HR professional.
We developed and administered a survey and gave structured interviews to assess and compare the specific areas of use and to
introduce a taxonomy that provides a framework for academic discussion and comparison. We further determined whether HRIS
usage was strategic, a perceived value-add for the organisation, and its impact on professional standing for HR professionals. These
findings were compared to those for other professions that also use MIS. Our results showed that, on average, few differences exist
between SME and large company usage. Moreover, we found that the professional standing of HR professionals has been enhanced
by the specific use of HRIS for strategic partnering but that this is not as pronounced as that experienced by those from other
professions.
# 2006 Elsevier B.V. All rights reserved.

Keywords: Human resource information systems (HRIS); HRIS taxonomy; Non-strategic and strategic HRIS usage; Strategic partnership;
Professional standing

1. Introduction [25] and Legge [16] have both described this migration.
Of recent, the increasing pressure to support strategic
Human resource management (HRM) is relatively objectives and the greater focus on shareholder value
new. Indeed, Storey [26] observed that prior to the has led to changes in both job content and expectations
1990s, the term HRM was rarely used outside the US. of HR professionals [24,1,5,18]. One of the major
The subsequent process of convergence of traditional changes has been the contemporary use of IS in support
personnel management in the UK into the US based of the HR process [30,23,8,20]. Increased use of human
human resource (HR) practice has been rapid. Storey resource information systems (HRIS) allows profes-
sionals to achieve improved performance and thus
facilitate participation in internal consultancy activities
* Corresponding author. Tel.: +44 1274 234335; [27,28]. Moreover, it is argued that HR professionals
fax: +44 1274 546866.
E-mail address: j.wallace1@bradford.ac.uk (J. Wallace).
both provide value to the organisation and improve
1
Permanent address: Brunel Business School, Brunel University, their own standing in the organisation by using HRIS
Uxbridge, Middlesex UB8 3PH, UK. [12,15].

0378-7206/$ – see front matter # 2006 Elsevier B.V. All rights reserved.
doi:10.1016/j.im.2006.10.006
Z. Hussain et al. / Information & Management 44 (2007) 74–89 75

Ulrich [31] and Brockbank [2] argue the need for HR however, that the use of HRIS and, in particular, fully
to become a strategic partner. HRIS is seen to facilitate integrated HRIS systems, did not necessarily ensure that
the provision of quality information to management for HR would become a full strategic partner.
informed decision making. Most notably, it supports the The role being played by HRIS in support of strategic
provision of executive reports and summaries for senior decision making is important as this enables organisa-
management and is crucial for learning organisations tions to achieve competitive advantage [7,13]. However,
that see their human resource as providing a major little is known about use of HRIS by small-to-medium
competitive advantage. HRIS are therefore a medium and large sized companies for strategic decision
that helps HR professionals perform their job roles more making. Furthermore, the impact that this has had on
effectively [6,3,17] and to support strategic decision the HR professionals is also relatively unknown.
making.
In 1992, Kinnie and Arthurs [14] reported their 2. Research method
findings of HRIS usage based on a national survey and
four in-depth case studies of UK organisations. They Our research used two techniques to investigate the
analysed the responses of 231 personnel directors and impact of IS on HRM: a questionnaire survey to
itemised typical routine and non-strategic usage. Whilst obtain responses from HR professionals in UK
they did observe a difference in the level of HRIS use, organisations, and interviews with a small number of
they found that the nature of usage had not changed senior executives, such as directors, to gain deeper
appreciably since the 1980s. They therefore argued that insights into the emerging issues and as a source of
this was evidence of considerable ‘‘lost opportunities’’. corroboration of the research hypotheses deduced from
The comparative benchmarking study by Martinsons analyses of the survey responses.
[19] further suggests similar patterns of usage, also at In our analyses, the convention of treating routine
that stage, in Canada. Later, Ball undertook a survey in usage as having an associated probability of 0.5, was
the UK of small and medium sized private and public employed. Then usage at a significantly higher level
sector organisation (her analysis was based on 127 would be considered evidence of substantial use
usable returns, a 24.4% response rate from organisa- throughout HRM whilst the lower level demonstrated
tions with up to 1500 employees). Approximately 54% only sporadic use.
of her respondents worked in personnel or HRM and of
these, 36% were personnel or HRM managers: the 2.1. Questionnaire
remainder, including the 10.4% of respondents who
were directors, were from non-HRM functions but used A questionnaire was first developed by the authors. It
HRIS systems. She found that HRIS was primarily used was then piloted with ambiguous questions and those
for ‘‘filing cabinet replication’’ of administrative tasks. with poor response rates being reworded for clarity,
Thus, she argued, most HRIS use was in support of accordingly. The revised version was then sent to HR
routine administrative HR tasks, a conclusion broadly managers at 450 organisations situated around the UK.
consistent with that of Kinnie and Arthurs. These were in diverse sectors of the economy and were
In contrast, Lawler and Mohrman’s 2001 US study selected by stratified random sampling from the UK
created a different picture. It built on the work of Ulrich Business Directory. As we were only concerned with
and surveyed HR directors of large commercial HR professionals, the seniority of the responder was
companies (the average number of employees was confirmed and confidentiality assured. Of the ques-
21,023) in order to assess the degree to which HR was a tionnaires received, 101 were from suitably senior HR
strategic partner; they defined this to be a role related to professionals (a 22% return); these were used in the
the development and implementation of business subsequent analyses.
strategy for the organisation. Their analysis of 130 The survey questions were designed to provide
returns, a 15.5% response rate, found that 41.1% of demographic information about the responder and their
respondents were full strategic partners with only 3.4% organisation; to elicit beliefs on the role of HRIS in
with no role in the strategic process. Furthermore, they supporting professional activities; to determine the
found that the use of HRIS had consistently increased extent to which HRIS were used, particularly for
over the previous 5–7 years, irrespective of the degree of strategic decision making; the current reliance on HRIS
strategic partnership held by the HR function. Indeed, by HR professionals; the level of intervention afforded
HRIS usage had increased substantially even in firms by HRIS and the perceived impact that current or
where HR had no strategic role. They cautioned, expected future HRIS usage was having on the
76 Z. Hussain et al. / Information & Management 44 (2007) 74–89

professional standing of HR professionals. A copy of We also assessed the degree to which companies
the relevant questions is given in Appendix A. were currently employing HRIS in support of non-
strategic HR, from the surveyed companies. This was
2.2. Interviews contrasted with previous levels of usage, as reported by
Ball. Tests for a difference in the respective proportion
In-depth semi-structured interviews were conducted of users were undertaken for current and future HRIS
with 11 senior organisational executives to whom the use. The proportion of current users of HRIS for non-
HR professionals reported. These were intended to strategic functions was compared to the proportion
determine whether the professional standing of the HR of previous users, as identified by Ball. A similar
professional had been elevated as a result of using comparison was also made for future use, which was
HRIS. Comparisons were made with other non-HR estimated from reported HRIS planned usage from our
professionals. In each case, the executives were survey. These comparisons were made for both SME
randomly selected from companies in the survey who and large companies. An additional test for proportional
used HRIS, with selection being based on company usage was also made, regardless of company size, and
size, approximately in proportion to those responding to the previous user levels. In all cases, it was assumed that
the full survey. In order to select senior executives, it non-strategic HRIS use was likely to have increased and
was therefore necessary to receive the questionnaires so one-sided Fisher’s Exact tests were conducted. We
ahead of the interviews, which were subsequently also identified the current profile of SME versus large
undertaken on the telephone. company non-strategic HRIS usage and planned usage.
A copy of the question template is presented in Finally, the extent of usage of HRIS for strategic
Appendix B. tasks over those that were still performed manually was
determined. This degree of computerisation of strategic
2.3. SME and large companies tasks was also computed to see if it differed according to
company sizes. A descriptive summary was provided
In our research, company size was grouped as small- for the former, and a Fisher’s Exact test conducted to
and-medium sized or large. The former, termed SME, quantify the latter.
had a workforce that did not exceed 500 workers, with
the remainder being categorised as large companies, 2.5. The research hypotheses
these being in accordance with the guidelines of a recent
Commission of the European Community report [32]. Six research hypotheses were investigated in our
study. The corresponding questions (see Appendix C),
2.4. Strategic and non-strategic HR usage and the associated investigations were as follows:
Hypothesis 1. HRIS are used by HR professionals in
HRIS are used to support a variety of HR tasks. Here,
support of strategic tasks.
strategic tasks are those that have a direct impact on, or
are used in support of, an implicit or explicit strategic Strategic tasks included strategic decision making
objective. Kinnie and Arthurs and Ball itemised specific and providing crucial information in support of this, in
HR non-strategic tasks that were undertaken using the areas of: HR Planning, Salary Advice, Employee
HRIS; Lawler and Mohrman similarly introduced an Benefits and Industrial Relations. Operational level
array of tasks that related to strategic usage. In all activities were considered to be background tasks,
instances, a large number of disparate categories were typically performed by junior personnel. Data for this
present. As a consequence we have introduced a hypothesis were obtained from responses to survey
taxonomy consisting of a broader categorisation with question 8: ‘‘At which level can/do HRIS support you in
fewer entries; it provides focus and facilitates mean- your emerging roles, such as HR consultancy and
ingful comparisons. The strategic and non-strategic strategic decision making?’’ The appropriateness of the
functions identified in these major studies were mapped response was gauged by qualifying questions 2, 9 and
onto this taxonomy. All routine activities that were 10.
typically performed by less senior, non-professional Fisher’s Exact test for HRIS use by HR professionals
personnel were excluded. This made it possible to make was conducted to assess whether the proportion of users
a qualitative comparison between previous and current to non-users differed between SME and large compa-
non-strategic uses of HRIS, strictly by HR profes- nies. Additional binomial tests were undertaken for
sionals. these two groupings to assess the level of advanced task
Z. Hussain et al. / Information & Management 44 (2007) 74–89 77

use against a routine level of use (H0: p = 0.5, H1: In both cases, separate binomial tests were con-
p 6¼ 0.5). ducted to assess whether usage was routine for SME and
large companies. Fisher’s Exact tests were also
Hypothesis 2. HRIS will be used differentially by
conducted to appraise whether the proportion of
small and medium sized companies in support of stra-
companies using HRIS in both categories of strategic
tegic decision making relative to large sized companies.
decision making were likely to depend on company
Several types of HR strategic use were categorised: size.
HR Planning, Salary Advice, Employee Benefits,
Hypothesis 5. HRIS are seen as an enabling technol-
Industrial Relations, Assessment and Training Needs,
ogy by HR professionals.
Recruitment and Performance Management. Data for
this hypothesis were obtained from responses to question Data for this hypothesis were obtained from
14: ‘‘What strategic HR tasks are you performing that responses to question 5: ‘‘At which level can/do HRIS
are supported by HRIS?’’ The appropriateness of the support you in your normal HRM duties (advice,
response was gauged by the qualifying questions 2 and 9. service, functional support to the organisation)?’’ The
A separate Fisher’s Exact test was conducted for appropriateness of the response was gauged by the
each category of use to determine whether the qualifying questions 1, 2, 9 and 11. Here enabling
proportion of users to non-users differed between technology was seen as supporting advanced tasks.
SME and large companies. Additional binomial tests We looked at whether HRIS were believed to be an
were conducted for the two size groupings, to further enabling technology by selected HR professional
compare each type of advanced task use against a groupings using binomial tests. A test was carried
routine level of use (H0: p = 0.5, H1: p 6¼ 0.5). out for HR managers, HR directors and personnel
managers, respectively. An additional binomial test was
Hypothesis 3. HRIS will be used more in support of
also conducted with no distinction made for the job title
strategic decision making in organisations in the future.
of the responder. A Fisher’s Exact test was also used to
Data for this hypothesis were obtained from responses see if the views were dependent on company size.
to question 12: ‘‘What is your view of (further)
Hypothesis 6. HRIS usage for strategic decision mak-
deployment of HRIS in your organisation for work
ing leads to enhanced professional standing.
and decision making?: More strategic use of HRIS for
long term planning’’. The appropriateness of the response To assess possible enhancement in professional
was gauged by the qualifying questions 2 and 9. standing due to the increased use of HRIS, responders
A binomial test was performed to see whether HR who used HRIS in support of strategic decision making
professionals will use HRIS more in support of strategic were asked to make a self-assessment and to judge if
decision making in the future. Two separate binomial their organisation recognised any enhancement. Those
tests were also undertaken for each of the company size who did not use HRIS, were asked whether they
groupings in our survey. A Fisher’s Exact test was also expected that if they did use it in support of strategic
conducted to look at the proportion of companies decision making, this would enhance their professional
claiming there will be an increase, to those not status. Data for this hypothesis were obtained from
anticipating one, for company size grouping. As we responses to questions 16 and 17. The appropriateness
were trying to determine whether there was likely to be of the response was gauged by the qualifying question 9.
an increase in usage and that a reduction was not To confirm that there was consistency between the
anticipated, the test was one-sided. responses for self-assessed enhancement and perceived
acceptance of enhanced status by the organisation, we
Hypothesis 4. HRIS are used differentially by small
obtained a measure of correlation between the two
and medium sized companies for strategic decision
responses. To take ties into account, Kendall’s t–b
making relative to large sized companies.
coefficient was calculated.
HRIS facilitated strategic decision making was We considered that those who were not currently using
appraised both for its support in decision making per HRIS for strategic decision making, and responded as
se, and for information provision. Data for this hypothesis neutral when assessing enhancement of professional
were obtained from responses to question 15: ‘‘If you are standing, did so due to a lack of practical exposure. This
now using HRIS in support of strategic decision making, category was therefore excluded and the overall
what is your role(s)?’’ The appropriateness of the responses for self-assessment, perceived organisational
response was gauged by the qualifying questions 2 and 9. recognition and potential enhancement were assessed
78 Z. Hussain et al. / Information & Management 44 (2007) 74–89

individually using binomial tests. Fisher’s tests were also enhanced status of these non-HR professionals was
conducted to see if company size grouping had any greater than any increase for senior HR personnel.
influence, both for self-assessed enhancement and Corresponding binomial tests were conducted, with
perceived enhancement. The three categories were ‘‘Strongly Agree’’ and ‘‘Agree’’ responses being treated
finally compared using a one-way ANOVA, treating as affirmations, ‘‘Neutral’’ responses were ignored, and
the Likert scale data as interval data, and with a Kruskal– the remaining ‘‘Disagree’’ and ‘‘Strongly Disagree’’
Wallis non-parametric test where no such assumption responses as disagreements with the proposition. As all
was made. For all responses: 1 = Strongly Agree, 2 = ‘‘Neutral’’ responses were associated with the executive
Agree, 3 = Neutral, 4 = Disagree, 5 = Strongly Disagree. not feeling able to give a considered or measured
response, this test and the expedient were deemed
2.6. Semi-structure interviews with senior appropriate.
executives from responding companies
3. Results
To corroborate several of these later results, the
responses to the follow-up semi-structured interviews 3.1. Strategic and non-strategic HR usage
and survey from selected senior executives were
analysed. The responses were considered to represent Our taxonomy, as shown in Table 1, comprised seven
their company’s view. In all cases, HR professionals were categories. We believe they adequately covered all
using HRIS for strategic decision making. Several t-tests previous and current areas of HRIS use by senior HR
were conducted. In all cases, H0: m  3, where 3 was the personnel.
neutral value (from 1 = Strongly Agree to 5 = Strongly From this we can see that a new development is the
Disagree). Furthermore, all tests were one-sided (H1: use of HRIS for strategically related Industrial
m < 3) unless stated. The tests determined whether Relations issues. It is currently being used to support
professional status had been enhanced as a result of using strategic Union Relations (Industrial Relations) in large
HRIS in support of strategic decision making in the US organisations. Furthermore, HRIS is supporting
company and, more generally, within the professions. Industrial Relations per se in UK companies, albeit
Furthermore, we tested to see if it was felt that this usage marginally. This is true for both non-strategic and
was valuable to the company. t-Tests were undertaken to strategic purposes, regardless of company size. There is
establish whether increased usage of MIS within the no evidence of this being so prior to 1999.
company by other non-HR professionals was consistent The non-strategic use of HRIS, regardless of
with that for the HR function, and if the professional company size, increased substantially over that by
standing of these professionals had been enhanced. smaller companies since the survey of Ball in 1998.
Finally, a t-test was conducted to determine whether any This is evident from the results of the tests between the

Table 1
Categories of use of HRIS by senior HR personnel
Categories of HRIS use Previous non-strategic HRIS use Previous non-strategic HRIS Current strategic use
(Kinnie and Arthurs) use (Ball) (Lawler and Mohrman)
HR Planning Succession planning; relocation; Manpower planning; budget HR planning; organisational
human resource planning; labour control (recruitment); budget development; organisational
turnover; HR budgeting; wage modelling control (training) design; strategic planning
Salary Advice Performance appraisal; wage modelling Salary information; recruitment Compensation
(organisation salary structure)
Employment Benefits Pensions; car schemes; health schemes Appraisal Benefits
Industrial Relations None None Union Relations
Assessment and Training Training; management development; Appraisal; training; training Performance appraisal;
Needs performance appraisal (course evaluation); training competency/talent assessment;
needs analysis; skills monitoring; employee training/education;
training evaluation; skills matching management development
Recruitment Recruitment Recruitment; budget control Recruitment; selection
(recruitment)
Performance Management Performance appraisal Appraisal Performance appraisal;
competency/talent assessment
Z. Hussain et al. / Information & Management 44 (2007) 74–89 79

Table 2
Tests for proportions for current and planned HRIS use against previous use
Company size Proportions p-Value Degree of take-up
HRIS Previous HRIS
Overall (current use) 0.77 0.64 0.01* Significant increase in recent usage regardless of company size
Overall (planned future use) 0.86 0.64 <0.0005*** Highly significant increase in planned usage regardless of company size
SME (current use) 0.65 0.64 0.42 No evidence of increase in recent usage by SME
SME (planned future use) 0.77 0.64 0.03* Significant increase in planned usage by SME
*
Significant at 0.05 level.
***
Significant at 0.001 level.

previous level of usage by smaller companies and that When comparing the degree of computerisation of
from our surveyed companies. Moreover, this trend is strategic tasks to company size grouping, the relative
expected to continue. Interestingly, there is no evidence, increase of HRIS usage for advanced functions
from our data, that the level of use has increased appears to be slightly more pronounced for large
significantly since 1999. However, when comparing companies than for SME. However, a Fisher’s Exact
current and planned use for SME, we observe a test showed that the proportion of advanced usage, to
significant increase. These results suggest that there has manual usage, for company size was not significant at
been substantial adoption of HRIS for non-strategic the 5% level ( p = 0.40), so we have no evidence that
work by large companies with SME following this trend an overall difference in relative usage was present
in the near future. These results are presented in Table 2 between the two company size groups for those using
and are shown graphically in Fig. 1. HRIS.
It was found that substantial use of HRIS was still
made in supporting HR Planning, Salary Advice, 3.2. The research hypotheses
Employment Benefits and Training for non-strategic
purposes. Usage rates continue to be in excess of 40% Hypothesis 1. HRIS are used by HR professionals in
in all cases. support of strategic tasks.
Whilst it was found that a large number of strategic There is strong evidence that HRIS were used in
HR tasks were supported by HRIS there were still support of strategic tasks. The findings are consistent
several that were performed manually. An indication of with organisations being increasingly more reliant on
the extent of this is provided in Table 3. Approximately the use of HRIS in support of advanced strategic
44.5% of all companies use HRIS exclusively in support business tasks, irrespective of company size. The results
of strategic tasks. are presented in Table 4.

Fig. 1. Frequencies of current and planned HRIS non-strategic usage.


80 Z. Hussain et al. / Information & Management 44 (2007) 74–89

Table 3 from routine, although the observed number was below


Number of non-computerised strategic HR tasks average usage. There was, however, weak evidence that
Number of tasks Frequency usage for Salary Advice by large companies was
None 40 significantly above the routine level. Although this
One-to-three 32 result was marginal (B(36, 23), p = 0.07), this was a
Greater than three 18 two-tailed test and the Fisher’s Exact test for the
proportions was significant.
Table 4
Statistical tests for Hypothesis 1 3.2.3. Employment Benefits
Null hypothesis p-Value
From our survey data, there was a significant
difference in the proportion of users between SME
Overall routine usage, regardless of company size <0.0001***
and large companies who use HRIS to support
No difference in proportional usage and company size 0.45
***
Significant at 0.001 level. Table 6
Statistical tests for HRIS use in support of strategic decision making
HR tasks
Hypothesis 2. HRIS will be used differentially by
small and medium sized companies in support of stra- Null hypothesis p-Value
tegic decision making relative to large sized companies. HR Planning
No difference in proportional usage and 0.39
The overall use of HRIS in support of strategic company size
decision making was highly consistent for SME and Routine usage by SME 0.50
large companies. Furthermore, this overall use was seen Routine usage by large companies 0.62
to be substantially greater than routine for both Salary Advice
company size groups. These findings demonstrated No difference in proportional usage and 0.03*
that most companies that have HRIS, used them company size
Routine usage by SME 0.13
extensively in support of strategic decision making,
Routine usage by large companies 0.07
regardless of company size. The results from the
associated statistical tests are presented in Table 5. Employment Benefits
No difference in proportional usage and 0.03*
The results from testing the specific strategic decision company size
making uses are present in Table 6 and demonstrate Routine usage by SME 0.08
that differences exist in specific usage however. Routine usage by large companies 0.13
Industrial Relations
3.2.1. HR Planning No difference in proportional usage and 0.12
There was no difference in the proportion of users company size
from SME and large companies who use HRIS in Routine usage by SME 0.00001***
Routine usage by large companies 0.04*
support of HR Planning. Use here was also shown to be
no different from routine. Assessment and Training Needs
No difference in proportional usage and 0.11
company size
3.2.2. Salary Advice Routine usage by SME <0.0005***
From our survey, there was a significant difference in Routine usage by large companies 0.62
the proportion of SME and large companies who use Recruitment
HRIS in support of Salary Advice. There was no No difference in proportional usage and <0.0006***
evidence that the level of use by SME were any different company size
Routine usage by SME <0.00001***
Routine usage by large companies 0.14
Table 5
Statistical tests for Hypothesis 2 Performance Management
No difference in proportional usage and 1.000
Null hypothesis p-Value
company size
No difference in proportional usage and 1.000 Routine usage by SME <0.004**
company size Routine usage by large companies <0.008**
Routine usage by SME <0.00001*** *
Significant at 0.05 level.
Routine usage by large companies <0.00001*** **
Significant at 0.01 level.
*** ***
Significant at 0.001 level. Significant at 0.001 level.
Z. Hussain et al. / Information & Management 44 (2007) 74–89 81

Employment Benefits. There was weak evidence that Table 7


usage of HRIS in support of Employment Benefits by Statistical tests for Hypothesis 3
SME was significantly below the routine level. Null hypothesis p-Value
Although, similar to that for Salary Advice by large No difference in proportional increase <0.01** [one-sided
companies, this result was only marginal (B(54, 20), in usage and company size test for increased
p = 0.08); this was a two-tailed test and Fisher’s Exact usage]
test for the proportions was also significant. There was Increase in usage regardless of <0.0001***
company size
no evidence of the level of use by large companies being
Routine usage by SME <0.0005***
any different from routine, although the observed Routine usage by large companies <0.00001***
number was below average usage. **
Significant at 0.01 level.
***
Significant at 0.001 level.
3.2.4. Industrial Relations
There was no evidence of an overall difference in the
proportion of users between SME and large companies Hypothesis 3. HRIS will be used more in support of
using HRIS for Industrial Relations. Both SME and strategic decision making in organisations in the future.
large companies, however, showed significant differ-
HR professionals anticipate using HRIS increasingly
ences from routine usage. We therefore conclude that
in support of strategic based decision making in their
use of HRIS for Industrial Relations was significantly
organisations, regardless of the size of the company.
smaller than we would expect by chance alone although
However, the test to see if a difference in the degree of
there is no evidence of a difference in relative usage.
future take-up for company size suggested a significant
difference. This showed there was a difference between
3.2.5. Assessment and Training Needs
the size of company and predicted increased relative use
There was no evidence of an overall difference in the
of strategic decision making. These results were
proportion of users between SME and large companies
consistent with organisations being increasingly more
using HRIS in support of Assessment and Training
reliant on the use of a MIS to maintain competitive
Needs. SME usage was highly significant, demonstrat-
advantage, perhaps by supporting flat organisational
ing limited use of HRIS in support of this. There was,
structures and being more responsive. In the case of
however, no evidence of the level of use by large
future HRIS usage, this was more pronounced for large
companies being any different from routine.
sized companies. The results from the associated
statistical tests are presented in Table 7.
3.2.6. Recruitment
There was strong evidence of an overall difference in Hypothesis 4. HRIS are used differentially by small
the proportion of users between SME and large and medium sized companies for strategic decision
companies using HRIS in support of Recruitment. The making relative to large sized companies.
use here by SME showed a significant difference from
routine usage with the reported number of companies 3.3. Decision maker role
being lower. We therefore have evidence that use of HRIS
for Recruitment by SME was significantly smaller than SME and large companies do not use HRIS for
we would have expected by chance alone. The use by strategic decision making per se differently. Indeed, the
large companies in support of Recruitment was not found data suggested that in both cases, usage was no more
to be any different than routine, however. than at the routine level.

3.2.7. Performance Management 3.4. Information provider role


There was strong evidence of no overall difference in
the proportion of users between SME and large The relative use of HRIS by SME and large
companies using HRIS in support of Performance companies for information provision in strategic
Management. The use by SME showed a significant decision making was similar. However, as the test used
difference from routine usage, however, with the was two-tailed, we do have weak evidence at the 8.3%
reported number of companies being low. Similarly, level of a difference due to company size. Information
and consistent with the proportions test, the use by large providing appeared to be used substantially greater than
companies for Performance Management was found to by chance for large companies. This has to be contrasted
be significantly lower than routine. with typically routine usage by SME. These results
82 Z. Hussain et al. / Information & Management 44 (2007) 74–89

Table 8 Table 9
Statistical tests for Hypothesis 4 Statistical tests for Hypothesis 5
Null hypothesis p-Value Null hypothesis p-Value
Strategic decision making—decision maker role HRIS are not an enabling technology <0.0001***
No difference in proportional usage and company size 0.52 Proportion of users considering HRIS 0.66
Routine usage by SME 0.68 as an enabling technology: SME
Routine usage by large companies 0.62 vs. large companies
HRIS are not an enabling technology— <0.0001***
Strategic decision making—information provider role
HR managers
No difference in proportional usage and company size 0.08
HRIS are not an enabling technology— 0.013*
Routine usage by SME 0.89
HR directors
Routine usage by large companies 0.029*
HRIS are not an enabling technology— 0.23
*
Significant at 0.05 level. personnel managers
*
Significant at 0.05 level.
***
further reinforced the view that a difference did exist Significant at 0.001 level.
between the relative provision of information in
strategic decision making.
It would appear that the profile of usage for HRIS results from the associated statistical tests are presented
supported strategic decision making between the in Table 9.
company size groupings, did prove to be different. Hypothesis 6. HRIS usage for strategic decision mak-
Overall, we have evidence that a reasonable number of ing leads to enhanced professional standing.
companies were using HRIS to facilitate or enable a
strategic business partnership role within their organi- The number of neutral responses for the two
sation but with a different emphasis, regardless of the questions for HRIS users who used HRIS for strategic
size of the company. decision making was high. For self-assessment of
The results from the associated statistical tests are enhancement to professional standing, we combined the
presented in Table 8. ‘‘Strongly Agree’’ and ‘‘Agree’’ responses as affirma-
tive and tested against those who disagreed; no
Hypothesis 5. HRIS are seen as an enabling technol-
responders registered that they strongly disagreed that
ogy by HR professionals.
professional standing had been enhanced.
HRIS were seen as a crucial and enabling technology There was very strong evidence that those using
by HR professionals. This was the case, regardless of HRIS for strategic decision making believed that
the size of the company. The tests across the various undertaking this strategic partnering role enhanced
categories of HR job titles for the HR professionals in their standing. This was the case when neutral responses
our survey were consistent for two of the three main were excluded and similarly when neutral responses
categories of HR professionals: HR managers and HR were treated as disagrees. These results were consistent
directors. These demonstrated that they attached much for HR professionals working either in SME or large
importance to HRIS as an enabling technology. companies, when including neutrals as disagrees or
However, this was not shared by the personnel directors excluding them from the test.
in our survey. This is consistent with Hoque and Noon’s Similar results were obtained regarding perceived
2001 study [10]. Their analysis of data from the UK enhancement to professional standing by the organisa-
Workplace Employment Relations Survey 1998 [34] tion, again even when excluding neutrals and treating
established that respondents with the title ‘‘human neutral responders as disagreers.
resource manager’’ were more likely to be profession- The counts for the relationship between self-
ally qualified and develop more sophisticated business evaluated and perceived enhanced professional stand-
policies and practices than those with the title ing are given in Table 10. In each case, the strong
‘‘personnel manager’’. recognition of enhanced status, and concomitant
Finally, no difference was seen in the proportions of acceptance by the company of this, is apparent. The
users who believed that HRIS was enabling for all correlation between these using Kendall’s t–b,
categories of job title when compared by company size. r = 0.61, thus further demonstrated consistency in
This showed that there was evidence that the importance responses for self-assessed enhanced professional
of HRIS by several main groups of HR professionals standing and the belief that this was duly recognised
was consistent across companies, regardless of size. The by the company.
Z. Hussain et al. / Information & Management 44 (2007) 74–89 83

Table 10 3.5. Interviews


Self-assessed and perceived enhanced professional standing
Recognised enhanced Self-evaluated enhancement The semi-structured follow-up interviews with
Strongly Agree Disagree Strongly organisational executives revealed that HRIS use had
Agree Disagree not enhanced professional standing within the organisa-
Strongly Agree 16 1 0 0
tion, but had done so in the profession at large. They
Agree 0 22 0 0 did see the use of HRIS within the organisation as
Disagree 1 3 11 0 substantially benefiting it, however. The increased use
Strongly Disagree 0 3 2 2 of HRIS was considered to be, on average, equivalent to
that for MIS by other professions within the companies
but there was a strong feeling that the professional
standing of these professionals was enhanced more.
The responses for potential enhancement to profes- This seeming contradiction may well be a consequence
sional status from those not currently using HRIS were of a persistent pejorative view of the relative worth of
more difficult to analyse unambiguously due to the large HRM per se [4,21]. The results of the t-tests and
number of neutral responses. When these were corresponding confirmatory binomial tests, are given in
excluded, we again obtained strong evidence confirm- Table 12.
ing the belief that professional standing would be The results were consistent for the two tests in all
enhanced by using HRIS. When including the neutrals cases, with the binomial test for enhancement of
as disagrees however, the test was not significant, professional standing within the profession due to HRIS
demonstrating perhaps that a neutral response was usage being significant at the 6% level. As this is a
based on a lack of experience and it is too extreme to substantially underpowered test, it can be seen as
consider this as disagreement with the proposition. providing confirmatory evidence.
The one-way ANOVA with all neutrals removed was
not significant at the 5% significance level 4. Discussion
(F 2,158 = 1.012, p = 0.37). Levene’s test on the residuals
however ( p = 0.007) indicated that there was violation We have introduced a parsimonious, high level,
of the homogeneity of the variances assumption and so a advanced HR usage taxonomy to facilitate comparisons
Kruskal–Wallis non-parametric test was also obtained. with other studies and to provide a focus when
This confirmed the ANOVA result (K = 1.71, p = 0.43 investigating the direction in which HRIS usage is
(adjusted for ties)) that we have no evidence from these changing. Our taxonomy proved to be sufficient to
data of any overall average difference between self- categorise all advanced usage by HR professionals in
assessed enhancement, perceived recognition and the companies in our survey.
potential enhancement if strategic decision making Strategic decision making allows HR professionals
usage was undertaken. to participate at the organisational level and to work
The results from the associated statistical tests are closely with strategic management, potentially enabling
presented in Table 11. and facilitating the formation of strategic partnerships.

Table 11
Statistical tests for Hypothesis 6 from questionnaires
Null hypothesis p-Value
No enhanced professional standing due to HRIS usage for strategic <0.00001***—neutrals excluded
decision making (self-assessment) <0.0001***—neutrals included as disagreers
No enhanced professional standing due to HRIS usage for strategic 1.000—neutrals excluded
decision making—SME vs. large companies (self-assessment) 0.38—neutrals included as disagreers
No enhanced professional standing due to HRIS usage for strategic <0.00001***—neutrals excluded
decision making ( perceived) <0.0001***—neutrals included as disagreers
No enhanced professional standing due to HRIS usage for strategic 1.000—neutrals excluded
decision making—SME vs. large companies ( perceived) 0.29—neutrals included as disagreers
No enhanced professional standing due to HRIS usage for strategic <0.0005***—neutrals excluded
decision making ( potential) 0.87—neutrals included as disagreers
***
Significant at 0.001 level.
84 Z. Hussain et al. / Information & Management 44 (2007) 74–89

Table 12
Statistical tests for Hypothesis 6 from data from interviews with senior executives
Null hypothesis p-Value (t-test) p-Value (binomial test)
No enhanced professional standing due to HRIS usage for strategic 0.22 0.23
decision making within company
No enhanced professional standing within the professions due to HRIS usage 0.03* 0.06
HRIS usage has not provided a value-add to the company 0.008** 0.04*
Increased use of MIS by HR professionals is consistent with that for other 0.20 0.29 [two-tailed test]
professionals
No enhanced professional standing for non-HR professionals due to MIS usage <0.001*** <0.001***
No enhanced professional standing of non-HR professionals relative to HR 0.02* <0.001***
professionals, due to MIS usage
*
Significant at 0.05 level.
**
Significant at 0.01 level.
***
Significant at 0.001 level.

The corroborating views of senior executives based in A summary of the usage profile of HRIS supported
several of the companies participating in the study were HR activities is given in Table 13.
obtained to further assess the impact of HRIS use in The use of HRIS is mostly due to the improvements
enhancing professional standing of HR professionals, of HR related ROI [22] and efficiency gains [11]. In
both absolutely and relatively. addition, it is likely that increased functionality and
We found that slightly less than 50% of the flexibility in HRIS coupled with decreased costs [33], in
companies use HRIS or other software exclusively in real terms, may also be contributing factors. However,
support of strategic HR usage tasks. Furthermore, there our finding of the consistent use or planned use of HRIS
are a substantially higher proportion of large sized across company size groupings is a recent phenomenon.
companies with full computerisation of strategic HR The Cedar 2003 Workforce Technology Survey of 328
tasks. There were also differences in the proportional respondents identified an increase of approximately
HRIS usage of advanced tasks or in strategic decision 260% in investment in IT budgets for companies with
making, between SME and large sized companies in 500–1000 employees, whereas for large sized compa-
three of the categories: Salary Advice, Employment nies the investment levels have remained roughly the
Benefits and Recruitment. In each of these, the degree of same. This suggests that there was an initial lag in
usage was relatively greater for larger companies. investment in HRIS technology by SME relative to

Table 13
Summary of usage profile of HRIS supported strategic HR activities
HR activity Usage comparison—SME vs. large sized companies Company size Level of use
Planning No difference SME Medium level of use
Large Medium level of use
Salary Advice Difference SME Medium level of use
Large Overall high level of use
Employment Benefits Difference SME Overall low level of use
Large Medium level of use
Industrial Relations No difference SME Overall low level of use
Large Overall low level of use
Training and Assessment No difference SME Overall low level of use
Large Medium level of use
Recruitment Difference SME Overall low level of use
Large Medium level of use
Performance Management No difference SME Overall low level of use
Large Overall low level of use
Z. Hussain et al. / Information & Management 44 (2007) 74–89 85

large sized companies but that the gap is now did see the use of HRIS as substantially benefiting the
narrowing. It therefore appears that the driving forces company. The increased use of HRIS was considered to
of ROI and increasing efficiency, functionality and be equivalent to that for MIS by other professions
flexibility are sufficient motivation for the take-up of within the companies but there was a strong feeling that
HRIS, regardless of company size. Our study at least the professional standing of these professionals was
provides evidence of this trend. more enhanced by their MIS use. We argue that this
Our findings also challenge Ball’s view that seeming contradiction may well be a consequence of a
company size is likely to be a key determinant, both persistent pejorative view of the relative worth of HRM
for the adoption of HRIS and the degree of its use in per se.
decision making and strategic support, regardless of
other factors. They are however, consistent with the 5. Conclusions
views of Haines and Petit [9] and Thaler-Carter [29],
that lower cost, higher utility and flexibility are the Our research suggested that for senior HR profes-
determining factors for SME uptake of HRIS. Indeed, sionals, strategic use of HRIS is increasingly the norm,
our survey suggested that HRIS are likely to be used irrespective of company size. This has led to the HR
even more for strategic decision making in the future; profession providing a value-add for the company.
this was a strongly held belief by both SME and large Moreover, strategic use of HRIS enhances the perceived
sized companies. The responses from the large standing of HR professionals within their organisations,
companies were, however, notably more positive in a view however, not shared by their more senior non-HR
this belief than those from the SME. This reinforced the executives. Nonetheless, these executives acknowledge
view that larger organisations use IT in support of that HRIS has provided value-add and increased the
responsive, flatter organisational structures. Notwith- status of the HR profession as a whole.
standing this, most HR professionals viewed HRIS as We also suggest that there may be more benefits in
enabling software, providing timely and accurate using HRIS for non-strategic purposes; companies may
information to HR professionals and top management seek to gain efficiencies that allow them to reduce
in support of strategic decisions making, regardless of staffing levels of routine administrative tasks.
organisation size. One question raised by our findings is why SME are
Our findings reveal wholesale adoption of HRIS in adopting HRIS more readily. Maybe, in smaller
support of a full strategic partnering role, regardless of companies, the increased legislative burden requiring
company size. They also validate claims that such a role accountability, from business activities through to equal
does provide value to the company. opportunities monitoring, has increased the demand for
Finally, our results show that HR professionals HRIS as they are able to generate reliable quality data
believed that the usage of HRIS for strategic decision for audit purposes. Although there is empirical evidence
making led to enhanced professional standing within that small companies in particular feel that the costs of
and outside the organisation, regardless of company such systems are too high, there is also evidence that
size. They also unilaterally believed that this elevation HRIS are being better used by small companies. Thus,
was recognised by the organisation, and this was shown for the SME, there is an improving return on investment
to be consistent, irrespective of company size. This for such systems.
belief of elevated status was also shared by HR
professionals who are not currently using HRIS or do Acknowledgements
not use it in support of strategic decision making.
The semi-structured follow-up interviews with The authors would like to thank Professor Sibley and
organisational executives revealed that HRIS use has anonymous reviewers for their helpful comments that
not enhanced their professional standing within the have made this paper more readable and pertinent to a
organisation. It has in the professions at large but they wider readership.
86 Z. Hussain et al. / Information & Management 44 (2007) 74–89

Appendix A. The role of human resource information systems (HRIS) in supporting senior HR
management
Z. Hussain et al. / Information & Management 44 (2007) 74–89 87
88 Z. Hussain et al. / Information & Management 44 (2007) 74–89

Appendix B. Interview questions

Appendix C. Relationship between research References


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