Chapter 3: Human

resource information
management systems

Presentation prepared by
Troy Fuller
Edith Cowan University

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 Learning objectives

1. On successful completion of this unit, you will be able to:

a) Describe the relationship between strategic HRM &
human resource information management systems
(HRIMS)
b) Explain the use of HRIMS in contemporary HR
functions
c) Outline the decision-making processes that need to be
followed when introducing HRIMS.
d) Explain the key issues determining success or failure of
an HRIMS
e) Describe how an effective HRIMS facilitates the
achievement of HRM objectives.
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 Human resource information
management system (HRIMS)

What is Human resource information management

system (HRIMS)?
a) A computerised system used to gather, store,
analyse and retrieve data in order to provide
timely and accurate reports on the
management of people in organisations.
b) Reason for automation – linked to business
objectives/outcomes.

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 Class Discussion 1.

Question:
(a) What the advantages & disadvantages of HRIMS
(computerising) HR?

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An HRMIS model

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 HR vs. payroll systems

Make decision on whether to have:

1. An integrated function
– Payroll and HR should be integrated to create
and maintain a complete system and to prevent
unnecessary duplication of effort,
OR
2. Separate activities
– Separate the two. Payroll is seen as an
accounting system that processes a large
number of transactions while the HRIMS is used
for planning and decision making.
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 Managing information

1. Database management
– Involves the input, storage, manipulation and
output of data

2. Knowledge management
– Deals with an organisation’s ability to collect,
store, share and apply knowledge in order to
enhance its survival and success.

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 Use of HRIMS

1. In high-tech organisations, technology is seen as a

strategic and competitive tool.
2. HRIMS can assist in decentralisation of time
consuming and expensive HR transactions.
3. This results in better informed and faster decision
making.
4. Employees can access and update their own
information (low value-added activity).

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 HRIMS issues

1. Flexibility
– HRIMS has to be flexible.

2. Confidentiality
– Potential for invasion and abuse of employee
privacy by both authorised and unauthorised
personnel (eg cyber attack by Russians in US
election).

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HRMIS design

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 Legal and management concerns

1. Cyberloafing
– Employee abuse of the internet and email
2. Sending confidential information and / or
breaching intellectual property rights
3. Defamation or harassment claims
4. Carefully worded policies governing use of email
and the internet are essential
5. Need to find a balance between permissiveness
and surveillance.

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Spell it out

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 Three options for HRIMS

1. It is important to justify the cost of setting up and

implementing an HRIMS. There are three main
options:
a) Design an in-house system using either
internal or external resources, or a
combination of both.
b) Buy a system ‘off-the-shelf’ and commercially
available (eg TPAF used but not working).
c) Buy a system as above but work with the
vendor to modify it to better satisfy the
organisation’s requirements.
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 Outsourcing

1. Apparent lower cost, simplicity and convenience

2. Successful outsourcing allows the HR
department to focus on its core business.
3. The organisation needs to assess whether
outsourcing is the best way to go for them. It has
pitfalls and downsides, as well as potential
benefits.

Question-What are the disadvantages of

outsourcing?
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 Resolution of key issues

1. Again, the issues must be explored, including:

a) A clear view of the HRM function
b) The ‘bells and whistles’
c) Payroll system or HRIMS
d) Knowing the jargon
i. Hardware
ii. Software
e) Using the ‘show me’ test
(cont.)

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 Resolution of key issues (cont.)

f) Extracting data and reports

g) Knowing when to call for help
h) Seeking integration between people,
policies/procedures, information flow and
computers.

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 Relationship with other departments

1. The HRIMS must be in line with the organisation’s

strategic objectives.
2. It must be help improve productivity and reduce
costs.
3. There should be strong working relationships with
the IT and Accounting departments (and others,
as appropriate).

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 Evaluating the HRIMS

Questions?
1. Is time spent entering data justified by accuracy,
timeliness and value of information generated?
2. Is HRIMS integrated with the payroll system?
3. Is HRIMS able to generate ad hoc, on-request
reports as well as regular detailed reports?
4. Is cost of HRIMS outweighed by benefits?

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 Summary

1. The purpose of the HRIMS is to assist both the HR

manager and line managers in decision making.
2. The HRIMS must generate information that is
accurate, timely and related to the achievement
of the organisation’s strategic business objectives.
3. Flexibility in system design and use cannot be
ignored.
4. As the HRM function continues to change, so too
must the supporting systems.

THE END
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