Human Resource Information
System
WHAT IS HRIS?
• HRIS is a systematic way of storing data and
information for each employee to aid
planning, decision making, and submitting of
returns and reports to the external agency.
• The application of computers to the
employee-related record keeping and
reporting, and management decision making
WHAT IS HRIS?
• A set of interrelated components working
together to support the functions of the HR
function
• Primary function:
– Documenting the employment relation in all its
complexity
• Basic technology:
– Storing, retrieving and distributing information
PURPOSE
•
•
•
•
Storing of data for future reference
Providing a basis for all HR functions
Meeting daily transactional requirements
Supply data to statutory agencies
IMPORTANCE OF HRIS
•
•
•
•
Strategy
Competitiveness
People
HRM
EVOLUTION OF INFORMATION
SYSTEMS
• Transaction Processing (i.e. payroll)
• Management Information Systems (i.e. daily
and monthly absenteeism summary)
• Decision Support Systems (i.e. How many
employees should we hire?)
• Expert Systems
DATA vs. INFORMATION
• Data – “Just the facts” > raw facts
• Information – data that has been transformed
into a more useful or meaningful form
ALL COMPUTER-BASED INFO SYSTEMS
(HRIS INCLUDED)
CONSIST OF:
• Hardware
• Software
• Databases
• Telecommunication
• Procedures
• People
AN HR EXAMPLE
INPUT
(hours worked)
PROCESSING
(calculating net pay)
Feedback Loop
(Is paycheck accurate?)
OUTPUT
(cut paycheck)
IS IN HR
EXECUTIVE SUPPORT
Plant Location
Merger/Acquisition
Support
MANAGEMENT REPORTING
EEO, OSHA, etc.
Absenteeism by Department
DECISION SUPPORT
Staffing
Benefits Planning
TRANSACTION PROCESSING
Time & Attendance
Benefits Enrollment
WORKFLOW
Time & Attendance
Benefits Enrollment
BASIC HRIS CAPABILTIES
WITHOUT HRIS –
PERFORMANCE EVALUATION
•
•
•
•
•
•
•
•
•
•
Prepare evaluation forms
Print and copy evaluation forms
Distribute forms to employees
Employees fill in evaluation
Evaluation forms personally submitted to HR Manager
Re-write results to the computer or file them
Manual processing of data gathered
Prepare result sheets
Print, copy and distribute result sheets to employees
File all forms for future use
WITH HRIS –
PERFORMANCE EVALUATION
•
•
•
•
•
•
Define evaluation forms
Online evaluation entry
One-click access to results
History information captured
Evaluation reports
Strategic decision making process can take
place
WITHOUT HRIS – LEAVE
APPLICATION ADMINISTRATION
•
•
•
•
•
•
•
•
•
•
Prepare leave application forms
Print and copy leave application forms
Manually maintain employee attendance information daily
Maintain company calendar
Employees applying for leave fill out an application form
Application form personally submitted to supervisor
Manual check for employee’s leave status history
Supervisor’s approval or rejection
Application form personally submitted to HR Manager
Manual update of employee’s personal leave information
file
WITH HRIS – LEAVE
APPLICATION ADMINISTRATION
• Define company specific leave administration
processes
• Online leave application form
• Online leave approval or rejection
• History information captured
• Leave balance reports generated by the
system
• Saves strategic resources
INTRANET – NEW DIMENSION OF HRIS
Employee Self-Service
View/check/modify online:
• Personal information
• Qualifications
• Leave application
• Leave balance
• Leave cancellation
• Leave approval/rejection
• Salary information
• Company calendar
• Appraisal results
• Online appraisal process
1. What
Impresses CEO
Most
2. Human
Value Added
3. Return on
Human Capital
Invested
10. Healthcare
Costs
9. Pay Benefits
TOP 10
CALCULATIONS
FOR HRIS
4. Time to Fill
Jobs
8. Cost Per
Hire
7. Return on
Training
6. Volunteer
Turnover Rate
5. Turnover
Cost
THREE LEVELS OF HRIS
STRATEGIC
FUNCTIONAL
•Economic trends
•Industry forecasts
•Manpower demand forecasts
•Employee background and
experiences
•Performance evaluation
•Skills inventory
Benefits programs
Compensation programs
Insurance programs
Employee demographics
OPERTATIONS
Position description
Training projects
Manpower planning
Pension fund investments
Recruiting
Employee selection
Employee placement
Employee Promotion
Assignments Matching
Internal reporting
Absentee rates
Human resource accounting
Productivity assessments
External reporting
Equity monitoring
Vacancy reporting
Health & safety reporting
WHY ARE CAREFULLY DEVELOPED
INFO SYSTEMS IMPORTANT TO HR?
•
•
•
•
•
•
•
•
Safer
Better Service
Competitive Advantage
Less Errors/Greater
Accuracy
Higher Quality Products
Improved Health Care
Improved Communication
Increased Efficiency
• Increased Productivity
• More Efficient
Administration
• More Opportunities
• Reduced Labor
Requirements
• Reduced Costs
• Superior Managerial
Decision Making
• Superior Control
BENEFITS
• Time saving
• Cost saving
• Work reallocation
Time Saving
•
•
•
•
Easy date maintenance
Administrated processes automated
Employee ‘self-service’
Adequate information base that leads to
timely and quick decision making
• Responding faster to employee inquiries to
enhance efficiency and productivity
Cost Saving
• Less time spent on tasks = less money
• Minimal paperwork
• Timely and accurate decision making includes
less cost
Work Reallocation
• Helps the employees perform better through
effective career planning and performance
management
• Integrating the human resource function with
other business functions in the enterprise to
better serve personnel
HRIS – THE STRATEGIC VALUE
• Efficiency – cost & time
• Effectiveness – orientation on the most
valuable asset of the organization - PEOPLE
IMPLEMENTATION OF HRIS
INCEPTION OF
IDEA
TAILORING THE
SYSTEM
COLLECTING
DATA
FEASIBILITY
STUDY
TRAINING
TESTING THE
SYSTEM
SELECTING
PROJECT TEAM
CONTRACT
NEGOTIATION
STARTING UP
AUDIT
DEFINING
REQUIREMENTS
VENDOR
ANALYSIS
RUNNING IN
PARALLEL
MAINTENANCE
LIMITATION
•
•
•
•
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Expensive in terms of finance
Problems of computer illiteracy
Inadequacies in design of HRIS
No substitute for human being
Regular updating of information necessary
DECISION MAKING PROCESS
• Strategic
Create a comprehensive learning organization that
enhances the knowledge capital of all employees
• Functional
Personal development plans for employees, individual
training plans according to employees training needs,
performance evaluation meeting, etc.
• Operational
Maintaining data in the system, administration
HRIS UNPLUGGED –
TIME ALLOCATION
• Strategic:
– Strategic decision making………………...….2%
• Functional:
–Functional decision making………………….23%
• Operational:
–Operational day-to-day tasks………………75%
IDEAL DECISION MAKING PROCESS
• Strategic:
– Strategic decision making………………...….2%
• Functional:
–Functional decision making………………….23%
• Operational:
–Operational day-to-day tasks………………75%
CONCLUSION
• “By automating human resource practices, HRIS
saves time and money, effectively reallocates
work processes and thus provides competitive
advantage, adding strategic value to the
organization.”
• ‘HR managers must make use of HRIS to achieve
improved performance; removing routine
administration allows them to become
professional consultants to the rest of the
organization.