HUMAN RESOURCE

INFORMATION
SYSTEM (HRIS)

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 OBJECTIVES
Upon completing this section, you should be
able to:
1. Determine how an HRIS facilitates
various functions of HR.
2. Identify the criteria used to evaluate an
HRIS.
3. Describe what constitutes an HRIS
integrated database.
Wednesday, March 6, 2024 2
 INTRODUCTION
• Exponential growth in the quantity of information that
is needed by business to make efficient decisions and
to respond to the changing needs in the dynamic
external environment.
• Information is critical to HR function as people are the
most complex organisational resource to manage.
• With information technology (IT) systems, HR
functions can be done faster in a more accurate and
productive way.

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 INTRODUCTION
• An HRIS is an IT system used to gather, store, control,
analyse and retrieve data to provide timely and
accurate reports on HRM in an organization.

• It has become a strategic tool to manage people

efficiently by integrating HR information into the
organisation’s business strategy.

• HRIS, if used effectively, can provide a powerful

competitive advantage to the organization.
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 INFORMATION NEEDS FOR
HR DATA
The information needs of the organisation
define data requirements.

A thorough information needs in HR

function should be undertaken to ensure
that all data needs are met.

Data needs should be identified in detail so

that an adequate database is developed.

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 INFORMATION NEEDS FOR
HR DATA
Two types of data are needed in a typical business
organisation: employee data and organizational data.
Employee data may include the following:
• Personal details ; Contractual agreements
• Pay and pensions ; Education and qualifications
Organisational data may include the following:
• Organisational structure ; Departmental details
• Job analysis ; Education and qualifications

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 INFORMATION NEEDS FOR HR DATA
1. Duties and responsibilities of
data collection, input and
maintenance should be clearly
defined among organizational
departments.
2. Periodical review of data should
be conducted to meet with the
changing needs and
requirements in the information
age.
3. Finally, any changes in data
should be captured and
input into the system
immediately.
4. This will reduce the need for
extensive transfer of data at a
later point in time and the
potential for error.
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INFORMATION NEEDS FOR THE PROVISION OF
HR SERVICES
1. Intranet is a network of
computers that enables
employees and managers in
an organization to
communicate with each other.
2. It is a very useful
communication tool in HR
function.
3. It provides an easy and
effective way for the
organisational members to
access to HR polices and
procedures.
Pilbeam and Corbridge (2002) have
also identified the information
requirements of an HR Intranet as
follows:
• Recruitment and selection, with
online application
• Working hours and sign-in system
• Equal opportunities
• Holidays and application for leave
• Maternity, paternity and parental
entitlements
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 THE USES OF HRIS IN PEOPLE
RESOURCING
Human Resource Planning
• Planning is an integral function to any organisation.
• HR planning requires information from external and internal
sources.
• They also need to know the available resources in the external
labour market.
• An HRIS can be used to provide necessary information to assist in
the planning and decision-making process.
• Information such as labour turnover, workforce profiling, and
employee skills audit can be obtained from HRIS to facilitate HR
planning.
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 THE USES OF HRIS IN PEOPLE
RESOURCING
Recruitment and Selection
An HRIS allows the recruitment and selection process to
be streamlined and managed more effectively and
efficiently.
Screening and tracking of job applicants through the
computerized system will speed up the hiring process.
Reports can also be easily generated to monitor the
activities in recruitment and selection.
The HRIS not only enables recruitment and selection
activities to be done in a more cost effective manner but
also enhances the quality of HR services.
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 THE USES OF HRIS IN PEOPLE
RESOURCING
Pay and Rewards
Employee compensation has become a complex issue and constant
review is needed to ensure that reward objectives are being achieved.
Reports of salary profiles of employees can be generated for internal
pay comparison and adjustments.
The impact of pay increase can be projected to determine
affordability.
Reports of salary profiles by gender can also be generated by the
HRIS to check compliances of Equal Opportunities Acts.
Information on market pay rates can be analysed and stored to
determine the market posture of the organisation, that is, to
determine whether the organisation should pay above market
average, pay the market average, or pay below market average. 11
 THE USES OF HRIS IN PEOPLE
RESOURCING
Performance Management
HRIS can be used to monitor the performance management system
of an organization.
An HRIS can store and analyse such data as performance targets and
measures of performance to assess if they are fair and achievable.
Individual, team and departmental performance trends can be
monitored to track their performance over time.
Under-achievers can be identified by HRIS for personal development
purposes.
Expert systems can retrieve relevant data (salary, development and
performance) to identify employees eligible for promotion.

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 THE USES OF HRIS IN PEOPLE
RESOURCING
Training and Development
The strategic importance of training and development of employees
cannot be under-estimated.
Employee know-how has become a key competitive advantage for
today’s business organizations.
Newly hired employees need to be trained to perform their jobs
satisfactory.
Existing employees need to acquire new skills and knowledge due to
technology advances.
Training needs analysis can be performed by an HRIS to identify and
monitor the needs for employee development.
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 THE USES OF HRIS IN PEOPLE
RESOURCING
Employee Relations
An HRIS also offers benefits in the management of employee
relations.
The analysis of aggregated data on disciplinary issues may identify
common problems that give rise to employee dissatisfaction.
The identification of common disciplinary problems should result in
clearer policy statements on the governance of employee
behaviours.
Clearer regulations and solutions to common problems should
reduce the potential for conflict in the employment relationship.

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 Summary
HRIS plays an important role in managing HR data and functions.
The primary purpose of an HRIS is to assist all functional managers in
decision-making.
Thus, an HRIS must be able to generate information that is accurate, timely
and relevant to the needs of all managers.
IT has created opportunities for HR to reduce administrative costs and to
engage in a strategic role in achieving organizational goals.
The information needs for HR data and services must be carefully assessed
to develop an effective HRIS.
The uses of HRIS in people resourcing include HR planning, recruitment
and selection, compensation, performance management, training and
development and industrial relations.
 Summary
An HRIS should add value to the organization. Information generated by an
HRIS should help all functional managers make faster and better decisions.
Otherwise, the costs of the HRIS cannot be justified.
As stated by Stone (2008), HR manager should ask the following questions in
evaluating an HRIS:
• Is the HRIS able to generate accurate and timely information for
decision-making?
• Is the HRIS integrated with payroll system and other functional areas?
• Is the HRIS able to generate on-request as well as periodic detailed
reports?
• Are benefits of the HRIS outweigh its costs?