A Study of the Effectiveness of Human Resource Information …dypatil.edu/schools/management/wp-content/uploads/2015/11... · 2015. 11. 19. · Mumbai Department of Business Management

A Study of the Effectiveness of Human

Resource Information System on an

Organisation with special reference to

Macleod’s Pharmaceutical Ltd.

Dissertation Submitted to the D.Y. Patil University,Navi Mumbai

Department of Business Management in partial fulfillment of the requirements for the award of

the Degree of Master in Philosophy (Business Management)

Submitted by:

SHIKHA SINGH (Roll No - DYP-MPhil-11013)

Research Guide Dr. R. GOPAL

DIRECTOR, DEAN& HEAD OF THE DEPARTMENT D.Y. PATIL UNIVERSITY,NAVI MUMBAI

DEPARTMENT OF BUSINESS MANAGEMENT, Sector 4, Plot No. 10,

CBD Belapur, Navi Mumbai – 400 614

MAY 2014

2

A Study of the Effectiveness of

Human Resource Information

System on an Organisation with

special reference to Macleod’s

Pharmaceutical Ltd.

3

DECLARATION

I hereby declare that the thesis titled ―A Study of the Effectiveness of Human

Resource Information System on an Organisation with special reference to

Macleod‘s Pharmaceutical Ltd‖. Submitted for the Award of Master of

Philosophy (M. Phil) in Business Management at D.Y. Patil University,Navi

Mumbai Department of Business Management is my original work and the

Dissertation has not formed the basis for the award of any degree,

associateship, fellowship or any other similar titles.

The material borrowed from other sources and incorporated in the thesis has

been duly acknowledge.

I understand that I myself could be held responsible and accountable for

plagiarism, if any, detected later on

The research papers published based on the research conducted out of an in

the course of the study are also based on the study and not borrowed from

other sources.

Date: Signature of the student

Enrollment No: DYP-MPhil-11013

4

CERTIFICATE

This is to certify that the dissertation titled ―A Study of the Effectiveness of

Human Resource Information System on an Organisation with special

reference to Macleod‘s Pharmaceutical Ltd‖ is the bonafide research work

carried out by Ms. SHIKHA SINGH, student of Master in Philosophy (Business

Management), at D.Y. Patil University, Navi Mumbai Department of Business

Management, in partial fulfilment of the requirements for the award of the

Degree of ‗Master in Philosophy (Business Management)‘ and that the

dissertation has not formed the basis for the award previously of any degree,

diploma, associate ship, fellowship or any other similar title.

Place: Mumbai Dr. R. Gopal Date: Signature of the Guide

5

ACKNOWLEDGEMENT

First, I would like to place on record my gratitude to all concerned respectable

executives of Macleod‘s Pharmaceutical Ltd forgiving me this opportunity of

Research work which has been a pure learning experience and which have

enlightened my knowledge and skills about the HRIS practices in industry. I

would also like to express my gratitude towards the D.Y. Patil University ,Navi

Mumbai Department of Business Management for giving me the opportunity

to MPhil from their esteemed institution.

I would like to express my sincere gratitude to my guide Prof. Dr. R. Gopal,

Director, Dean and Head of the Department at Department of Business

Management of D.Y.Patil University,Navi Mumbai for the continuous

support of my Mphil study and research, for his patience, motivation,

enthusiasm, and immense knowledge. His guidance helped me in all the time

of research and writing of this thesis. I could not have imagined having a

better advisor and mentor for my Mphil study.

My thanks and appreciations go to my colleague in developing the project and

people who have willingly helped me out with their abilities. I would be

failing in my duty if I do not acknowledge with a deep sense of gratitude

to my family for their support and motivation.

6

PREFACE

While searching for a suitable topic for the M.Phil. Dissertation, I came across

a problem that I faced at work with the Human Resource Planning in HRIS.

The topic having aroused my curiosity, discussions were held with several

people in the HRD of various sector, to understand the veracity of the

above thought process and also understand the real issues plaguing the

industry.

All these aspects then resulted in the development of the project report titled

―A Study of the Effectiveness of Human Resource Information System on an

Organisation with special reference to Macleod‘s Pharmaceutical Ltd‖ It is

strongly hoped that this project covers not only the various requirements of

the Project Study but also of the Industry.

Signature of the Student (Shikha Singh)

7

Contents

Executive Summary………………………………………… 16-24

1. Introduction……………………………………………….. 24-30

2 .Literature Review…………………………... …………... 31-46

3 .Objective of Study ………………………………………. 47-53

4 .Research Method………………………………………... 53-74

5.Concepts and theory

5.1 HRIS Definition…………………………………………. 75-76

5.2 History of HRIS…………………………………………. 77-78

5.3 Types of HRIS………………………………………….. 79-81

5.4 Application of HRIS……………………………………. 82-88

5.5 Human Resource Planning…………………………… 89-90

5.6 Human Resource Forecasting ………………………. 91-92

5.7 Demand Forecasting…………………………………. 93-99

5.8 Supply Forecasting……………………………………. 100

5.9 Estimating Future Human Resource Needs………… 101

5.10 Outcome of the HR Planning Process……………. 102-105

5.11Information required to successfully forecast human resource demand and supply……………………………… 106

5.12 Identify Stakeholder to be involved…………………. 107-108

8

5.13 Human Resource Action…………………………….. 109-109

5.14 Succession Planning in HRIS………………………. 111-119

5.15 Corporate Communication…………………………. 120-122

6. Case Study of Macleod‘s Pharmaceuticals Ltd………. 123-126

7. Data Analysis ……………………………………………. 120-182

8. Data Findings ……………………………………………. 183-186

Annexure1………………………………………….............. 187-190

Glossary…………………………………………….............. 191-195

Bibliography………………………………………………… 195-200

9

List of Tables

1. Objectives for introducing HRIS ……….............................................. 43

2. End users of the HRIS once it was installed ..................................... 44

3. Distribution of sample among the department ……………................. 45

4. Sample collected at Macleod‘s pharmaceutical ltd………………….. 56

5. Breakdown of Variables ……………................................................ 60

6. Distribution of sample among the department………………………… 110

6. Measurement scales for variables……………………………………. 62

6.1. Types of data requirements and data collection methods…….... 63

7. Data Requirement table ………………............................................ 65-66

8. Data Requirement table ……………................................................ 67-68

9. Data Requirement table ……………................................................ 69-70

10. Multi-item indicators of independent variables…………………….. 74

11.Target population at Macleods pharmaceuticals Ltd………………. 124

12. Response rate from the organisations............................................ 126

10

13 Show the Descriptive data of the variable JA1, JA2, JA3………… 127

14. Tally for Discrete Variables: JA 1……............................................ 128

15. Tally for Discrete Variables: JA 2…............................................... 129

16. Tally for Discrete Variables: JA 3……........................................... 130

17. Show the Descriptive data of the variable ER1, ER2, ER3………… 131

18. Tally for Discrete Variables: ER1…….............................................. 132

19 .Tally for Discrete Variables: ER2…….............................................. 133

20. Tally for Discrete Variables: ER3……............................................... 134

21. Descriptive Statistics LS1…SP2……................................................ 135

22 .Tally for Discrete Variables: LS1……............................................... 137

23. Tally for Discrete Variables: LS2…….............................................. 138

24. Tally for Discrete Variables: LS3……............................................... 139

25. Tally for Discrete Variables: LD1……............................................... 140

26. Tally for Discrete Variables: LD2……............................................... 141

27. Tally for Discrete Variables: LD3…….............................................. 142

28. Tally for Discrete Variables: SP1……............................................... 143

11

29. Tally for Discrete Variables: SP2……............................................... 144

30. Tally for Discrete Variables: CO1….................................................. 145



33. Summary of Descriptive statistics …................................................ 148

34. Tally for Discrete Variables: JA 1, JA2, JA3, LS1, LS2, LS3, LD1, LD2…………...........................................................................................

151-152

12

List of Figure

1. Schematic diagram for the study framework…. 51

2.Variables in the study framework………………. 59

3.Historical Evolution HRM……………………….. 76

4.Functional components in any HRIS…………… 78

5. Type of HRIS…………………………………… 79

6. Model of an Organizational System Centred on HRIS 85

7. Resource Flow of HRIS Model…………………. 88

8. Features of the HRIS…………………………… 64

9. Human Resource Planning ……………………. 67

10. Elements of Forecasting……………………… 81

11. HR value pyramid …………………………….. 111

12. Core of Succession Planning in HRIS……….. 113

12.1. The stages of recruitment and selection….. 92

13. Variables code ………………………………. 127

14. Summary Report for JA1……………………. 128


13


17. Summary Report for ER1…………………… 133

18. Summary Report for ER2……………………. 134

19. Summary Report for ER3…………………….. 135

20. Summary Report for LS1…………………….. 136



23. Summary Report for LD1…………………….. 139

24. Summary Report for LD2……………………. 140

25. Summary Report for LD3……………………. 141

26. Summary Report for SP1…………………….. 142

28. Summary Report for CO1……………………. 143



31. Hypothesis t- test JA1 ……………………….. 154-155

32. Hypothesis t- test JA2……………………….. 155

33. Hypothesis t- test JA3……………………….. 157

14

34.Hypothesis t- test ER1……………………….. 159



37. Hypothesis t- test LS1 ………………………. 165

38. Hypothesis t- test LS2……………………….. 167

39. Hypothesis t- test LS3……………………… 169

40. Hypothesis t- test LD1……………………….. 171

41. Hypothesis t- test LD2………………………… 173

42. Hypothesis t- test LD3……………………….. 175

43. Hypothesis t- test SP1…………………………. 178

44. Hypothesis t- test SP2……………………….. 180

15

List of abbreviations

HRM Human Resource Management

ERP Enterprise Resource Planning

ERPIS Enterprise Resource Planning Information Systems

HRP Human Resource Planning

HR Human Resource

HRD Human Resource Development

HRIS Human Resource Information Systems

IS Information Systems

IT Information Technology

SHRP Strategic Human Resource Planning

JA Job Analysis

SP Succession Planning

CO Communication

LS Labour Supply

LD Labour Demand

16

EXECUTIVE SUMMARY

17

Executive Summary

The human resource information system (HRIS) is ―the composite of

databases, computer applications, and hardware and software necessary to

collect/record, store, manage, deliver, present, and manipulate data for

human resources‖ (Broderick and Boudreau, 1992). A survey conducted in

1998 (Ball, 2001) showed that 60 percent of Fortune 500 companies use the

HRIS to support daily human resource management (HRM) operations.

The last decade has seen a significant increase in the number of

organisations gathering, storing and analysing human resources data using

Human Resource Information Systems (HRIS) (Ball, 2001; Barron et al.,

2004; Hussain et al., 2007; Ngai et al., 2006). Strategic value can be derived

using HRIS tools that assist decision-making concerning vital HR functions

(Farndale et al., 2010; Troshani et al., 2011). HRIS gave the information

needed the strategic planners to forecast future workforce demand and

supply. Human Resource Planning is the procedure used to tie human

resource issues to the organization's business needs.

Human Resource Information Systems (HRIS) have become one of the most

important tools for many businesses. HRIS is advancing to become its own

information technology (IT) field. With HRIS, the administrative efficiency

maintains faster information processing, improved employee communications,

and greater information accuracy (Overman, 1992; Beadless, et al., 2005),

18

lower HR costs and overall HR productivity improvements (Beadles et al.,

2005;Dery et al., 2009; Wiblen et al., 2010; Troshani et al., 2011).

As valuable as HR planning is, many companies ignore this opportunity.

Human resource planning links people management to the organization‘s

mission, vision, goals and objectives, as well as its strategic plan and

budgetary resources. A critical component of an effective HR plan is the

method of forecasting. HRIS offer an alternative channel of communication

with employees and line managers by carrying organisation wide news stories

and highlighting policy changes. As for employee and manager, self-service

one of the fastest growing trends in the delivery of HR information is

employee self – service.

HRIS applications help employees to access and maintain HR information

about them. Human resource information (HRIS) is a system that help an

organization acquire, store, manipulate, analyses, retrieve, and distribute

information about an organization‘s human resources (Tannenbaum,1990).

Human Resource Information Systems (HRIS) is a process that utilizes the

information technology for the effective management of human resource

functions and applications. Actually HRIS is directed towards the HR

department itself (Ruel, Bondarouk & Looise, 2004), but the use of HRIS can

provide a number of benefits not only to the HR function, but also line

managers, and the wider organization (Parry, 2009).

This current research study is an attempt to create a framework for the

study of the effectiveness of the applications of HRIS .The Objective of study

19

are to study the Effectiveness of HRIS Recruitment application in the

organisation, to explore the contribution of Human Resource Information

System in Human Resource Planning and to study the use of Human

Resource Information System in corporate communication. The Research problem understood were, HRIS does not play a significant role

in Macleod‘s Pharmaceutical HR planning department to manage their

employees fairly, equally and transparently. How does HRIS contribute to HR

planning? Do the available HRIS functionalities adequately support

organisational HR planning efficiency and effectiveness? This dissection is to

investigate the contribution of HRIS to human resources planning through

forecasting supply of human resource , training and development subsystems

to reveal the strength of HRIS as a management information system and as a

decision support system as against a mere transaction processing system.

The current study research question were - How effective and efficiently does

the HRIS recruiting application in the organisational planning? How effective

and efficiently does the Human Resource Planning HRIS recruiting application

in the organisational planning.

This study would guide future HRIS users to make optimum use of HRIS

functionalities in HR planning rather than employing it only for administrative

works. The Study framework consists of 3 sub systems of HRD: HRIS

recruitment, HRIS Human Resource Planning and HRIS Corporate

Communication. HRIS recruiting subsystem represents the functionalities of

HRIS job analysis and inventory control. HRIS labour Forecasting and

20

Succession planning contributed by HRP system. HR – Employee relation

and Employee – Management relation represent Corporate Communication

Application.

A case study of Macleods Pharmaceuticals Ltd. was used for this study

purpose The data of 100 respondents were collected. Research strategies

developed to plan and answer the research questions. Sampling method used

is quota sampling, which was divided into 3 subset viz HRD, IT specialist

coordinating HRIS and Employees using HRIS. Data collected through the

questionnaire provided standard data allowing easy comparison. The facts

generated from the HR and the employees through field visits to Macleod‘s

pharmaceutical Ltd. HRIS through questionnaire, which was designed base

on many variables. Hypotheses were generated for future research. From the

following statements

1. Use of HRIS job analysis process in an organisation improves the efficiency

and effectiveness of HR planning.

2. The greater utilisation of HRIS Forecasting Demand and Supply analysis in

an organisation increases the efficiency and effectiveness of HR planning.

3. Succession planning of HRIS increases the efficiency and effectiveness of

HR planning of an organisation.

4. HRIS implementation is a factor for effective communication in the

organisation

Questionnaire, designed using the likert scale method was e-mailed to the

senior HR executives and the employees of the organisation who deals daily

21

with HRIS to get their views. The questionnaire was based on three main

sections; namely HRIS role in Human Resource Planning Forecasting

demand and supply, HRIS role in Recruitment - Job Analysis and

Communication - HR distance and isolation from the employees. HRIS

vendor‘s web sites used to find out the correct HRIS users, HRIS features,

and cost. Journal articles and references used to find out information on

previous research work relevant to Information system, HRM, HR planning

and HRIS Survey reports by Chartered Institute of Personnel and

Development were also used for reference. HRIS role identified from three

sub systems: HRIS recruiting subsystem, HRIS Human Resource Planning

subsystem, and HRIS Communication. From these three sub systems,

mediate variables identified considering available HRIS features. Data

requirements table were made, variable analysis code were formed which

comprise of the Principle code JA – job analysis, LD- Labor Demand, SP-

Succession planning.

HRIS job analysis process efficiency and effectiveness measured using three

factors JA1, JA2 AND JA3.

HRIS E- recruitment efficiency and effectiveness measured using three

factors ER1, ER2, ER3.

HRIS labour demand and supply analysis process effectiveness was

measured using six factors namely LS1, LS2, LS3, LD1, LD2, LD3, SP1, SP2.

HRIS communication analysis effectiveness measured using three CO1, CO2,

and CO3 factors.

22

Data analysis was done using Minitab 17, a statistical tool. A single sample t-

test was conducted using a hypothesized mean value of the variables. JA1

represent - HRIS identifies unfilled positions accurately. The most favorable

answer was agreed with 45% of the total respondent for JA1. JA2 represent -

HRIS analyses each job description and its job specification. The most

favorable answer was neither agrees nor disagreed with 35% of the total

respondent for JA2. JA3 represent - HRIS evaluates the recruiting processes

effectively. The most favorable answer was strongly agreed with 48% of the

total respondent for JA3. ER1 represent- HRIS leverages employee‘s talent in

the right place at right time. The most favorable answer was strongly agreed

with 46% of the total respondent for ER1. ER2 represent HRIS help to reduce

costs. The most favorable answer was strongly agreed with 46% of the total

respondent for ER2 .ER3 represent - HRIS eliminates unsuitable applicants

early and focus on promising candidates. The most favorable answer was

strongly agreed with 40% of the total respondent for ER3.The most favorable

answer was strongly agreed with 59% of the total respondent for LS1 which

represent HRIS forecasts supply of human resource. LS2 represent HRIS

estimates future human resources requirement of the organization. The most

favorable answer was strongly agreed with 32% of the total respondent for

LS2. The most favorable answer for LS3 which represent HRIS ensures

organization has right kind and numbers of employees at right place at

right time( EMPLOYEE PLACEMENT ) was strongly agreed with 27% of the

total respondent. The most favorable answer was strongly agreed with 48% of

the total respondent for LD1 HRIS manages internal information within the

23

organisation.LD2 represent HRIS manages external information outside the

organization. The most favorable answer was strongly agreed with 32% of the

total respondent for LD2. The most favorable answer was agreed with 49% of

the total respondent. SP1 represent HRIS identifies a logical progression

path and the steps required for advancements. The most favorable answer

was agreed with 53% of the total respondent for SP1. SP2 represent - Future

supply and demand of labor can be forecast using What-If analysis

function of HRIS. The most favorable answer was agreed with 51% of the

total respondent for SP2. CO2 represent - HRIS create platform for Open

Communication. The most favorable answer was agreed with 51% of the total

respondent for CO2.

This reduced data was further analyzed by applying t- test. Above graphical

analysis aim was to compare the sample mean with the hypothesized mean

for probability estimation, that the sample mean is different by chance or

random occurrence. Summary tables show the means and grand means of

five factors those were helpful to explain the direction and extent of difference

of perceptions of managers/employees in the organization.

Research findings clearly show that HR executives are well aware that they

can increase the efficiency of HR planning through HRIS, saving time and

cost. However, findings do not support the premise that HRIS increases the

efficiency of HR planning other than in functional work such as job analysis.

24

Organizations should identify the strategic value and competitive advantage

that they can gain through HRIS in HR planning. Strategic planning linked with

the HRIS can make the organization efficient for merger, acquisition and

takeover.

Corporate Communication through HRIS could build up strong organization

culture, which has been least bother in the organization. Human Resource

Information System will help the organization in building corporate image.

HRIS role can be studied in any of the sector as human resources are assets

of the organizations irrespective of the sector. Consequently, same research

can be conducted in future to know whether HRIS is improving with changing

time or not.

The foremost research limitation is on the subject of the industry perspective.

The research study was restricted to those respondents who wish to respond

to the questionnaire; therefore future research might focus on a generously

proportioned sample of respondents, in order to validate the results of the

study.

25

CHAPTER 1

INTRODUCTION

26

Chapter1

INTRODUCTION

The last decade has seen a significant increase in the number of

organisations gathering, storing and analysing human resources data using

Human Resource Information Systems (HRIS) (Ball, 2001; Barron et al.,

2004; Hussain et al., 2007; Ngai et al., 2006). Strategic value can be derived

using HRIS tools that assist decision-making concerning vital HR functions

(Farndale et al., 2010; Troshani et al., 2011). HRIS gave the information

needed the strategic planners to forecast future workforce demand and

supply. Considering it as a tool that helps employers in retaining the right

employees. Paying, them competitive salaries compared to the market, and

training them to develop their skills and abilities to carry out their existing and

future jobs do it.

To ensure that management practices support business needs, organizations

must continually monitor changing environmental conditions and devise HRM

strategies for dealing with them. Human Resource Planning is the procedure

used to tie human resource issues to the organization's business needs.

Human Resource Information Systems (HRIS) have become one of the most

important tools for many businesses. Even the small, 20-person office needs

to realize the benefits of using HRIS to be more efficient. Many firms do not

http://www.referenceforbusiness.com/knowledge/Human_resource_management_system.html

27

realize how much time and money they are wasting on manual human

resource management (HRM) tasks until they sit down and inventory their

time. HRIS is advancing to become its own information technology (IT) field. It

allows companies to cut costs and offer more information to employees in a

faster and more efficient way. Especially in difficult economic times, it is

critical for companies to become more efficient in every sector of their

business; human resources (HR) are no exception.

To increase the effectiveness of HRM, organizations are becoming more and

more dependent on HRIS (Ball, 2001; Lippert and Swiercz, 2005; Troshani, et

al., 2011). At the functional level, HRIS can keep track of employees,

applicants, and contingent workers qualifications, demographics, performance

evaluation, professional development, payroll, recruitment, and retention

(Harris and Desimone, 1995; Troshani et al., 2011). With HRIS, the

administrative efficiency maintains faster information processing, improved

employee communications, and greater information accuracy (Overman,

1992; Beadless, et al., 2005), lower HR costs and overall HR productivity

improvements (Beadles et al., 2005;Dery et al., 2009; Wiblen et al., 2010;

Troshani et al., 2011).

The purposes of HR planning are to enable organizations to anticipate their

future HRM needs and to identify practices that will help them to meet those

needs. It takes short or long term (three or more years to do HR planning. Its

aim is to ensure that people will be available with the appropriate

characteristics and skills when and where the organization needs them. The

28

use of HR planning enables companies to gain control of their future by

preparing for likely events. That is, they can anticipate change and devise

appropriate courses of action. When companies learn how to capitalize

on future events, their own future improves

As valuable as HR planning is, many companies ignore this opportunity.

Some see it as too difficult and frustrating, while others simply do not see the

need for it. However, when failing to properly plan for their human resources,

employers respond to events after they occur, rather than before; they

become reactive, rather than proactive. When this outcome occurs, an

organization may be unable to correctly anticipate an increase in its future

demand for personnel. At best, such a company recruit personnel at the last

minute and may fail to find the best candidates. At worst, the company may

become seriously understaffed.

HRP is to get the right number of people with the right skills, experience, and

competencies in the right jobs at the right time and at the right cost. This

ensures that the business production requirements are in efficient and

effective manner. Having too many employees is problematic due to the risk

of high labour expenses, downsizing, or layoffs. Having too few employees is

also problematic due to high overtime costs, the risk of unmet production

requirements, and the challenge of finding the instant human resources

needed to get the job done. Human resource planning links people

management to the organization‘s mission, vision, goals and objectives, as

well as its strategic plan and budgetary resources. A critical component of an

29

effective HR plan is the method of forecasting. Forecasting refers to the

interaction between the decision maker‘s perceptual and cognitive processes

and the objective characteristics of their environment.

HRIS offer an alternative channel of communication with employees and line

managers by carrying organisation wide news stories and highlighting policy

changes. As for employee and manager, self-service one of the fastest

growing trends in the delivery of HR information is employee self – service.

HRIS applications help employees to access and maintain HR information

about them. In the organisation such as ICL, Nationwide, employees are able

to select their own benefits package. Similarly, manager‘s self-service

provides a variety of HR tools and information for manager thereby improving

managerial effectiveness. Increasingly, employee can carry out some basic

HR transaction using interactive self-service application. Accuracy of the

records improves when staff handles the primary responsibility for maintaining

their own personal details.

30

CHAPTER 2

LITERATURE REVIEW

31

Chapter 2

LITERATURE REVIEW

During this study Several Articles, Research paper and Survey Report on

Human resource Information System was reviewed.

HRIS Design Characteristics: Towards a General Research Frame-work

(Daniel Mueller, Stefan Strohmeier, Christian Gasper) which was Published

by Saarland University, Germany in the Year 2010 .The objective of the

research was to examine the Problem How far the HRIS under consideration

actually meets the (elicited/existing) design characteristics relevant to HRIS

success. The objective of the paper was to propose a general research

framework of HRIS design characteristics, which allows researchers to

understand and apply crucial aspects relevant to HRIS design characteristics

better so that practitioners get support in developing, implementing and

permanently improving successful HRIS. Study Population taken was BPO

(Employee), where the unit of analysis was the employees who work in

organizations where HRIS have been introduced were selected to give their

responses on the questions asked on resistance to HRIS. The questionnaire

was sent to 200 employees. The Method of Sampling used was Simple

Random Sampling.Researcher has use of Questionnaire method for data

collection, where 200 employees questionnaire were send. Sixty six questions

were included in this questionnaire. The data analysis was prepared through

32

SPSS (Statistical Package for Social Sciences) version 16 which were used to

analyze the data set. Bar charts are used wherever possible.The key findings

of the research proposal were the framework hopefully will stimulate future

research regarding the development, implementation and improvement of

HRIS by means of particular design characteristics. In so doing, the

framework was thought to be continuously elaborated by, respectively

supports researchers in their attempts to constantly improve HR-related IT

artifacts by means of (particular/particular bundles of) HRIS-related design

characteristics.Another research paper published at Management knowledge

and Learning Conference; The importance of using human resources

information systems (HRIS) and a research on determining the success of

HRIS. (Yasemin Bal, Serdar Bozkurt, Esin Ertemsir) Year of Publication 2012.

The research objective was to analyse the relationship between the

satisfaction of employees from HRIS and their perceptions of HRIS. The

Study Population was HR employees from different sectors participated to the

research; the Unit of Analysis was 78 as only 78 respondent had answered

the questionnaire. Purposive sampling was selected, which gave the

researchers to use their own judgment to select suitable people for the

sample The First scale had 4 dimensions and 22 items that measured HRIS.

The second scale had 3 items that measured HRIS satisfaction.

Questionnaires played as measurement instrument of this research .Data

analysis was performed using SPSS for Windows 18.0 package program. T-

test and one-way ANOVA test were used to determine the differences

according to demographic qualifications. This Research founded that, the

33

satisfaction of employees working as a manager/vice manager, specialist or

HR assistant show difference. The use of HRIS in organizations has various

advantages for managers especially in decision making processes .The

results of the research reveal that HR employees perceive HRIS useful and

they are Satisfied with the system Also, it is found those employees‘

perceptions of HRIS show difference according to their position and

satisfaction of employees from HRIS shows difference according to their

position. The research paper Titled : Human Resource Information System

and its impact on Human Resource Planning: A perceptual analysis of

Information Technology companies ( Dr. Shikha N. Khera1, Ms. Karishma

Gulati ) in the Journal IOSR Journal of Business and Managementwhich was

published by IOSRJBM ; in the Year ISSN: 2278-487X Volume 3, Issue 6

(Sep,-Oct. 2012) have the Objective of to investigate the benefits of HRIS in

IT organizations. To probe the role of HRIS in strategic activities by HR

managers of IT companies. To explore the overall contribution of HRIS in

human resource planning of IT organisation. Sample of 127 respondents as

the study population from top 7 IT companies was consider. Unit of analysis

were employee of the IT organisation, where method of sampling used was

Simple random sampling. Data Collection was performed through primary

source i.e. questionnaire and Secondary sources i.e. Internet, websites of

various IT companies etc. Data analysis showed the Highest mean of 3.02 i.e.

HRIS is its ability to manage ample data and Lowest standard deviation of

0.766 showed that people are comprehensible about the ability of HRIS to

store voluminous data. The Human resources are important asset for IT

34

organization as it is the only face where if an organization lacks they have to

recompense in form of their competitiveness. HRIS is an excellent tool for

HRP but there are still some bones to pick up and the actions that HRIS has

not absorbed, should need to work on it. Limitation of this study was the

foremost research limitation is on the subject of the industry perspective.

Study of HRIS in any of the sector, as human resources is assets of the

organizations irrespective of the sector. The research study was restricted to

those respondents who wish to be interviewed. The static nature of the study

other limitation is that the questionnaire survey may endure with the reaction

bias.The Research published by Amity Business School, AUR in the January

2013 in their journal name INDIAN JOURNAL OF APPLIED RESEARCHwith

the Title Resistance to Human Resource Information Systems (HRIS) –

Problem Recognition, Diagnosis and Positive Intervention : A Study on

Employee Behaviour and Change Management (Devadesh Sharma ).This

research explores and the study examines, how HRIS technology could be

implemented effectively in the organizations with very less or no resistance to

change. BPO employee were taken as the study population ,from which unit

of analysis selected to give the response on the question asked on resistance

to HRIS , the Questionnaire was sent 150 employees. The method of

Sampling used was Random sampling .The survey was conducted in the

company where the HRIS was introduced.In this research primary data was

collected by preparing a descriptive questionnaire. Data analysis was

conducted using Chi Square Analysis where it was founded that the Null

hypotheses was rejected @ α=0.95 in all the cases hence the research data

35

was found to be significant. The finding were proposed as The resistance to

HRIS introduction needs to be recognized diagnosed to the very root level

and then with a very careful and positive intervention the change needs to be

introduced by the line managers or the change leaders. Take action to quickly

remove barriers (human or otherwise). Proper training to be induced to

facilitate acceptance towards changing system and environment. Skilled

change inspectors. Psychological expert help and managerial communication

are required before inducing change of a magnitude of affecting the whole

system. The research paper Titled Use of HRIS in Recruitment Process.

(Fernández-Sánchez, de Juana-Espinosa) Published by European and

Mediterranean Conference on Information Systems in the Year 2006.Their

Objective of the research was to study the use of HRIS as a tool for assisting

hiring decisions where 3000 Firms with more than 200 employees – Spain as

a study population which gave 334 valid answers (11, 1%).Random sampling

method was used as a Sampling technique. Descriptive data were used to

perform Data Collection which was carried a nation-wide to perform empirical

research .The T test, used to determine the inference of the observations chi-

square method. The Business HRIS is in a developing and retrieval. Large

percentages of firms rely on these systems for at least one the stages of the

recruitment process HRIS add competitive value to the firm as a whole and to

the HRM department specifically. Another research paper Titled Human

resource information systems: a review and empirical analysis (E.W.T. Ngai

and F.K.T. Wat) which was published in the year 2004. The objective of this

research is to present a comprehensive literature review of human resource

36

information systems (HRIS) and to report the results of a survey on the

implementation of HRIS in Hong Kong. The study population taken as the

HRIS users in Hong Kong. A sample of 500 company addresses was

randomly drawn from the 250 public companies quoted in the Hong Kong

Stock Exchange and 250 other selected companies listed in the Business

Directory of Hong Kong (2000). Sampling Technique used was Cluster

sampling technique .A structured questionnaire was designed, pre-tested,

modified, and used to capture data on a cross-section of HRIS users in Hong

Kong. The questionnaire was pilot-tested by practicing HRIS consultants and

by HR and MIS managers. Modification of questionnaire based on the

feedback from the pilot-test, and a final questionnaire was developed and

mailed to companies in Hong Kong. ANOVA test was conducted to compare

the means of the respondents‘ perceived benefits and barriers to the

implementation of HRIS and determine if there were any significant

differences among small, medium, and large companies. Most Hong Kong

industries perceived that the greatest benefits to the implementation of HRIS

were the quick response and access to information that it brought, and the

greatest barrier was insufficient financial support. Moreover, there was a

statistically significant difference between HRIS adopters and non-adopters,

and between small, medium, and large companies, regarding some potential

benefits and barriers to the implementation of HRIS. The research paper titled

the Relationship between Human Resource Information System (HRIS)

Functions and Human Resource Management (HRM) Functionalities (Bader

Yousef Obeidat) was published in the Journal of Management Research in

37

the year 2012.The objective of the Research paper was to study Human

Resource Information System (HRIS) functions and Human Resource

Management (HRM) functionalities. The population of the study consisted of

all commercial banks trading in the Jordanian banking sector with a total

number of fifteen banks, the population was limited to HR departments in

each bank‘s headquarter in the capital of Jordan . Only 123 questionnaires

were returned from these five banks with a response rate of 61.5%. Quota

sampling method was used as a Sampling technique.In order to address the

research objective, data was gathered using a structured questionnaire, which

enabled the hypotheses testing. Fifty six questions were included in this

questionnaire. In order to examine the research hypotheses, the data was

collected through the questionnaire, distributed to the HR professionals in five

banks in Jordan were analyzed using Statistical Package for Social Sciences

(SPSS) version 17. It was found that performance development, knowledge

management, and records and compliance as dimensions of human

resources information systems have a relationship with human resources

functionalities, accordingly, an effect over them. The results of this study were

derived from the data collected in only five banks out of fifteen Jordanian

banks. This was because of the fact that most of the banks refused to give

access to the researcher to collect data which is considered to be a limitation

of this study. The Research Paper The role of human resource information

systems in human resource planning in private sector organizations (udani

chathurika wickramaratna)in the year 2009 .The research was conducted

because the problem was known in SLT , the problem was ; Chief Officer HR

38

of SLT said that SLT initially used HRIS for administrative activities such as

salary calculations and attendance recordings successfully. According to him,

they did not use HRIS as a management tool, which contributes to HR

planning and planning related activities such as recruitment, selection,

succession planning, training, and development. The Objective of the study

was To explore the contribution of HRIS recruiting subsystem to workforce

planning of an organization. To investigate the contribution of HRIS training

and development subsystem to workforce planning of an organization. To

identify the overall contribution of HRIS in HR planning through HRIS

recruiting and training and development subsystems of an organization. Few

IT Companies were selected as the population where the Unit of Analysis HR

executives, HR Head were selected – 150 corrects answers were selected.

Stratified random sampling is used to select senior HR executives who use

HRIS to extract information to assist the top management based on the

organisation type: financial, manufacturing, and service.Data Collection was

done through Semi-structured interviews - Three semi-structured interviews

were conducted with the Heads of HR of selected organizations.

Questionnaire -Questionnaire, designed using the likert scale method was e-

mailed to the senior HR executives who deals daily with HRIS to get their

views. SPSS (Statistical Package for Social Sciences) version 16 was used to

analyse the data set. Bar charts are used wherever possible.

Research findings clearly showed that senior HR executives are well aware

that they can increase the efficiency of HR planning through HRIS, saving

39

time and cost. However, findings do not support the premise that HRIS

increases the efficiency of HR planning other than in functional work such as

job analysis. Organisations should identify the strategic value and competitive

advantage that they can gain through HRIS in HR planning. Few limitations

were founded such as HRIS user population is small since most organisations

cannot afford it. Especially small organisations cannot use integrated HRIS

with ERP within an affordable cost. Corporate planning consists not only of

human resource planning but also of marketing, financial and production

planning as well. For this research study, only the HR planning aspect is

taken in to consideration since HRIS mainly involve HR functions and

research has to be carried out within a limited time. Human Resource

Outsourcing - SURVEY REPORT published by A study by the Society for

Human Resource Management ;Year of Publication: July 2004.The Human

Resource Outsourcing Survey conducted to better understand the impact of

human resource outsourcing on today‘s organizations. The sample of HR

professionals selected from SHRM‘s membership database, which included

approximately 180,000 individual members at the time the survey was

conducted. Only members who had not participated in an SHRM survey or

poll in the last six months were included in the sampling frame. 1,619 e-mails

were successfully delivered to respondents, and 298 HR professionals

responded, yielding a response rate of 18%.Random sampling method was

used as the sampling technique. Survey study was conducted which founded

that More than one-half of HR professionals indicated that their organizations

partially outsourced an HR function and fewer outsourced completely.

40

Administration of health care benefits, pension benefits and payroll were

functions most commonly cited as partially outsourced. Only 2% of HR

professionals predicted that their organizations would outsource their entire

HR department within five years. Some of the most frequently named drivers

for outsourcing were reducing operating costs and controlling for legal risk by

improving compliance.HR outsourcing, in the form of moving one or more HR

functions from in-house to an outside provider, is a practice used by almost

six out of 10 organizations. One-third of organizations do not currently

outsource any HR functions, and only a few plans to outsource in the next

three years. Several limitation was founded while performing the survey such

as Of the 70% that did experience challenges, 37% indicated that lack of face-

to face contact with employees was the downside of outsourcing.HR

professionals from large-staff-sized organizations were much more likely than

those from small organizations to report that outsourcing had led to a lack of

face-to-face contact with employees and a loss of in-house expertise. About

one-half of small organizations (52%) reported that they had not yet realized

any downsides to outsourcing, compared with only 17% of large

organizations. It is not clear, whether small organizations are better able to

buffer the unfavourable experiences of outsourcing or if they simply realize

them later than large organizations.

41

Title of the Report: People and technology Is HR getting the best out of

IT.

Report: Survey report

Publisher: Chartered Institute of Personnel and Development (CIPD)

Year of Publication: June 2004

Introduction

Significant changes are to the role of HR professionals and the ways in which

they work. HRIS are a key part of that transformation, helping to improve the

efficiency of HR administration and enabling a greater focus on making a

strategic contribution to the organisation. However, much debate surrounds

these changes in areas such as the introduction of HR service and call

centres, and the outsourcing and off shoring of activities

Universe/Study Population:

5,000 HR professionals (one per organisation from a sample of the public,

voluntary and private sectors, stratified by size and sector) were surveyed

using a paper questionnaire. The survey was later augmented by a series of

telephone interviews with a small sub-sample of the questionnaire

respondents.

Unit of Analysis:

488 replies (9.8%) were received. Of these:

• Twenty-nine per cent were from smaller organisations (< 250 staff), 46%

were medium sized organisations (251–1,500) and 24% were from large

organisations (>1,500).

42

• Thirty-one per cent were public sector, 27% private sector (manufacturing

and production), 32% private sector (service), and 9% voluntary sector

organisations.

Data Collection: The survey data and telephone interviews

DATA ANALYSIS:

Objectives for introducing HRIS

Table 1: Objectives for introducing HRIS; Source CIPD Report.

Objective %

Improve the quality of information available 88

Improve the speed at which information is available to the organization 83

Reduce the administrative burden on the HR department 80

Improve flexibility of information to support business planning 60

Improve services to employees 45

Improve productivity 28

Reduce operational costs 24

Manage people's working time more effectively 18

Enable employees to access HR information 15

Improve profitability 08

Other reasons 06

Reduce head count 05

Gain preferred bidder status for external customers >1

No key reasons >1

43

Table 2: End users of the HRIS once it was installed; Source CIPD Report.

The most frequent reasons given for introducing an HRIS are to improve the

speed and quality of information, and to reduce the administrative burden on

the HR department.

Who uses the system once it is installed? According to the Chartered Institute of Personnel and Development (CIPD)

Survey Report in the year June 2004 on People and technology Is HR getting

the best out of IT?

%

HR department 99

Other individuals (often specified as Finance) 56

Line managers (non-HR) 50

Employees 29

44

Organisations where this function is part of HRIS

Absence management 90

Training and development 83

Reward 72

Recruitment and selection 63

Managing diversity 63

Appraisal/performance management 61

HR planning 47

Other* 37

Knowledge management 32

HR strategy 28

Expenses 20

Communication 19

Table 3: Organisations where this function is part of HRIS; Source CIPD Report.

REPORTING/ KEY FINDINGS ON INTRODUCING HRIS

Suggest some steps that organisations can take to improve the effectiveness

of their implementation, and use, of HRIS. CIPD recommend the following

points:

Draw up a list of things your new system must be capable of doing, what is

of secondary importance, and what you might like it to do, so you can be

really clear what you want from your system, where you can compromise, and

where you should not.

45

Appoint a dedicated project manager with the authority, training and

resources to see the job through.

Ask similar organisations what systems they have, and what their

experiences of them have been, both positive and negative.

Use it as an opportunity to expand the system to integrate more functions so

that more people find it valuable.

Sell the new system to other department heads that may have to lose their

current ‗pet‘ system in favour of one that allows for more cross-organisational

integration. Work with them at the design and development stages to increase

utility and cut out duplication of effort and records.

Conduct a pilot before full implementation.

Form a user-group committee with as wide a range of stakeholders as

possible, including an IT specialist if you have one.

Design a framework for evaluation at the design stage and fully evaluate the

effect of the new system once installed.

46

CHAPTER 3

Objective of Study

47

Chapter 3

Objective of Study

3.1 Research problem

Macleod‘s Pharmaceutical Ltd initially used HRIS for administrative

activities such as salary calculations and attendance recordings

successfully. They did not use HRIS as a management tool, which

contributes to HR planning and planning related activities such as

recruitment, selection, succession planning, training, and development.

HRIS does not play a significant role in Macleod‘s Pharmaceutical HR

planning department to manage their employees fairly, equally and

transparently.

How does HRIS contribute to HR planning? Do the available HRIS

functionalities adequately support organisational HR planning efficiency

and effectiveness? This dissection is to investigate the contribution of

HRIS to human resources planning through forecasting supply of human

resource , training and development subsystems to reveal the strength of

HRIS as a management information system and as a decision support

system as against a mere transaction processing system. This study

would guide future HRIS users to make optimum use of HRIS

functionalities in HR planning rather than employing it only for

administrative works.

48

This study would determine the contribution of this to human resources

planning by developing a conceptual framework and testing it using

hypotheses.

Due to the self-service agenda in HRIS there is lack of communication

between the employees and HR manager, this has created isolation area

in the organisation.

3.2 Research Question

1) How effective and efficiently does the HRIS recruiting application in the

organisational planning.

2) How effective and efficiently does the Human Resource Planning HRIS

recruiting application in the organisational planning.

3) How effective and efficiently is the use of HRIS Corporate

Communication application in the organisational.

3.3 Study framework

A study framework developed to hypotheses a logical understanding of the

relationships between the factors that were vital to the problem.

Conceptual framework (Figure 11) The 3 sub systems of HRD: HRIS

recruitment, HRIS Human Resource Planning and HRIS Corporate

Communication. HRIS recruiting subsystem represents the functionalities of

HRIS job analysis and inventory control. HRIS labour Forecasting and

Succession planning contributed by HRP system. HR – Employee relation

49

and Employee – Management relation represent Corporate Communication

Application.

Figure 1: Schematic diagram for the Study framework

Source: Author

3.5Objective of study

1) To study the Effectiveness of HRIS Recruitment application in the

organisation.

2) To explore the contribution of Human Resource Information System in

Human Resource Planning.

3) To study the use of Human Resource Information System in corporate

communication.

HUMAN

RESOURCE

INFORMATION

SYSTEM

EMPLOYEE – HR

RELATION

FORECASTEING

DEMAND &

SUPPLY

SUCESSION

PLANNING

JOB ANALYSIS

INVENTORY

RECURITMENT

CORPORATE

COMMUNICATION

HRP

50

3.6 Hypothesis

Null and Alternative hypotheses developed as follows for the research study:

1. Use of HRIS job analysis process in an organisation improves the

efficiency and effectiveness of HR planning.

H01: Higher utilisation of HRIS job analysis process in an organisation does

not improve the efficiency and effectiveness of HR planning.

H11: Higher utilisation of HRIS job analysis process in an organisation

improves the efficiency and effectiveness of HR planning.

2. The greater utilisation of HRIS Forecasting Demand and Supply

analysis in an organisation increases the efficiency and effectiveness of

HR planning.

H02: The greater utilisation of HRIS Forecasting Demand and Supply analysis

in an organisation does not increase the efficiency and effectiveness of HR

planning.

H12: The greater utilisation of HRIS Forecasting Demand and Supply analysis

in an organisation increases the efficiency and effectiveness of HR planning.

51

3. Succession planning of HRIS increases the efficiency and

effectiveness of HR planning of an organisation.

H03: Succession planning of HRIS does not increase the efficiency and


H13: Succession planning of HRIS increases the efficiency and effectiveness

of HR planning of an organisation.

4. HRIS implementation is a factor for effective communication in the

organisation

H04: HRIS implementation is not a factor for effective communication in the

organisation

H14: HRIS implementation is a factor for effective communication in the

organisation

52

CHAPTER 4

Research Methodology

53

Chapter 4 Research Methodology

4.1 Research Design

Exploratory research or formulative research

The objective of exploratory research is to gather preliminary information that

will help define problems and suggest hypotheses.

4.1 a) Research strategy

Research strategies developed to plan and answer the research questions.

After having considered several research strategies, case study adopted for to

carry out the research. This research study was an academic research, which

completed with limited available resources: both time and money. Sampling

method used is quota sampling, which was divided into 3 subset viz HRD, IT

specialist coordinating HRIS and Employees using HRIS. Data collected

through the questionnaire provided standard data allowing easy comparison.

Therefore, survey was the most suitable strategy for this research. To test the

likelihood that the characteristics of the sample founded in the population a

statistical method has been used Data gathered from questionnaire was used

to find dependant and independent variables in the relationships and the

validity of the relationships of proposed conceptual framework.

54

4.2 Type of investigation

The t-test compares the actual difference between two means in relation to

the variation in the data (expressed as the standard deviation of the difference

between the means).

4.3 Time horizon

Cross sectional

Studies are one-shot or cross sectional when data gathered just once,

perhaps over a period of days or week or months, in order to answer a

research question (Sekaran, 2003). Researcher generated facts from the HR

and the employees through field visits to Macleod‘s pharmaceutical Ltd. HRIS

through questionnaire, which was designed base on many variables.

Hypotheses generated for future research. Therefore, cross-sectional study

was selected as time horizon.

4.4Target population

Population

HRIS user population is restricted to large-scale organisations due to

implementation and maintaining cost, lack of knowledge, technical problems,

etc. The number of employees used to decide whether the organisation is

large or small. If the employees are more than 100, it is consider as large

organisation. Macleod‘s pharmaceutical have around 765 employees which

was taken as target population

55

4.5 Sampling methods

Probability sample- Stratified random

Quota sampling used to select senior HR executives and the employees who

use HRIS in Macleod‘s pharmaceutical. Strata were divided into HR

executives, IT officers, and the employees.

Distribution of sample (valid) among the department

Department No of employees

Human Resouce Department 25

IT specialist handling HRIS 20

Employees using HRIS 55

Total 100

Table 4- Shows the sample collected at Macleod‘s pharmaceuticals

4.6 Data collection methods and procedures

Questionnaire

Questionnaire, designed using the likert scale method was e-mailed to the

senior HR executives and the employees of the organisation who deals daily

with HRIS to get their views. Questionnaire consisted of scale questions to

collect opinions. Five point Likert-style rating scale (1: strongly disagree, 2:

disagree, 3: neither agrees nor disagrees, 4: agree, 5: strongly agree) was

used when designing the questionnaire.

56

Questionnaire structure

The questionnaire was based on three main sections; namely HRIS role in

Human Resource Planning – Forecasting demand and supply, HRIS role in

Recruitment - Job Analysis and Communication - HR distance and isolation

from the employees.

Organisational annual reports

Annual reports were used to cross-reference the number of employees,

annual profit etc.

Internet / web sites

HRIS vendor‘s web sites used to find out the correct HRIS users, HRIS

features, and cost. Wikis and blogs used for user comments and technical

problems regarding HRIS.

Journal articles and references

Journal articles and references used to find out information on previous

research work relevant to IS, HRM, HR planning and HRIS.Survey reports by

CIPD were also used for reference.

4.7 Data analysis

Data analysis techniques

Based on the data collected at Macleod‘s pharmaceutical ltd, percentage

frequency in frequency distribution, median and mode through measure of

central tendency used to analyse data. t- Test is used to compares the actual

57

difference between two means in relation to the variation in the data

(expressed as the standard deviation of the difference between the means).

Data analysis tool

Minitab is a statistics package, Minitab 17 used to analyse the data set.

4.8 Variables

A study framework used to develop the hypothesis and from the hypothesis, a

working model formed as follows to test the above hypotheses and measure

the relationship between variables.

RECURITMENT

HRP

CORPORATE COMMUNICATION

Figure 2: Variables in the study framework; Source: Author

H1

H2

H3

H4

Employee – HR Communication

HR SUCESSION PLANNING

HR FORECASTING

HRIS JOB ANALYSIS

HR

PLANNI

NG

EFFECTI

VENESS

58

4.9 Breakdown of variables

Table 5 Variable breaks down based on the variable types: independent,

mediate and dependant.

4.10 Independents Variable

HRIS role identified from three sub systems: HRIS recruiting subsystem,

HRIS Human Resource Planning subsystem and HRIS Communication. From

these three sub systems, mediate variables identified considering available

HRIS features. All the variables measured using a five point Likert scale

ranging from strongly disagree (1) to strongly agree (5).

Independent Variable

Mediate Variables Dependent Variable

HRIS Role

HRIS Job Analysis

HR PLANNING EFFECTIVENESS

HR PLANNING EFFICIENCY

HRIS labor demand and supply analysis

Employee- HR

Communication

59

4.11 Dependant Variable


According to Hendrickson (2003), increased efficiency is an HRIS benefit.

Both Time and cost efficiency addressed with the ability to do more

transactions with fewer fixed resources. This can specifically seen in areas

such as payroll and benefits.


In terms of accuracy, the HRIS helps in transactions. Additionally, the

technology used to simplify processes (Hendrickson, 2003). Some information

is only available through technology. Many types of computer-based training,

Internet access to the recruitment world and the use of certain programs to

assess employees in the hiring process are only available for those with

technology-rich environments.

4.12 Measurement of Variables

The following variables and the sub variables (Table 6) were measured as

given below. Dependent, mediate and independent variables were included.

60

Table 6: Measurement scales for variables

Variables were classified according to whether they have more or less of a

characteristic; the scale used is referred to as an ordinal scale (definition of

ordinal scale). The main characteristic of the ordinal scale is that the

categories have a logical or ordered relationship to each other. These types of

scale permit the measurement of degrees of difference, but not the specific

amount of difference.

Ind

ep

en

den

t

Vari

ab

le

Me

as

ure

me

nt

Me

dia

te

Va

ria

ble

s

Me

as

ure

me

nt

De

pe

nd

en

t

Va

ria

ble

Me

as

ure

me

nt

HRIS Role

Ordinal Scale

HRIS Job Analysis

Ordinal Scale


Ordinal Scale

HRIS labor

demand and supply analysis

Ordinal Scale


Ordinal Scale

Employee- HR communication

Ordinal Scale

61

5.18 Data collection methods

Table 6.1 shows data requirements and relevant data collection methods

according to the research questions. The data requirement table was further

elaborated into three sets of table as given below.

Table 6.1 shows data requirements and relevant data collection methods

Research questions

Data

requirements

Data collection

methods

Qu

esti

on

nair

e

Lit

era

ture

Revie

w

1) HRIS Recruitment

process in an

organisation effective in

improving the Strategic

HR planning

Efficiency and Effectiveness of Job Analysis of HRIS

X

X

2) How effective HRIS is as

strategic planner in

forecasting demand and

supply.

HRIS help to design career/succession plans Strategic planner in forecasting demand and supply.

X

X

62

3) Does HRIS

implementation is the

factor for HR distance

and Isolation from the

employee.

Employee – HR relation Maintenance

X

63

Table 7: Data requirement table 1

Research Objective Type of Investigation

HRIS Recruitment application in an organisation effective. Exploratory Research

Variable - Job Analysis

Hypotheses (1)

1. Use of HRIS job analysis process in an organisation improves the efficiency and effectiveness of HR planning.


does not improve the efficiency and effectiveness of HR planning.


improves the efficiency and effectiveness of HR planning.

Investigate questions Variable(s) required

1) HRIS identifies unfilled positions accurately.

Employee Opinion on HRIS vacancy definition

2) HRIS help to reduce recruiting costs

Opinion of HRIS cost reducing ability

3) HRIS evaluates the recruiting processes effectively.

Opinion of HRIS ability in Recruitment process

4) HRIS performs comprehensive reporting and tracking of applicants efficiently.

Opinion of Applicants Tracking and reporting

5) HRIS analyses each job position and its job title in an organisation.

HRIS ability to analyze Job position and job title

6) HRIS leverages employee‗s talent in the right place at the right time.

HRIS ability to put employee at right place at right time

7) HRIS maintains relationship with individuals who register in a talent warehouse.

Behavior of candidate using HRIS

8) HRIS eliminates unsuitable applicants early and focuses on promising candidates.

Short listing of candidate

9) HRIS create ideal job description and job specification

Opinion on Job description and job Specification

10 ) Organisation uses HRIS recruitment subsystem at an optimum level

Opinion on use to HRIS at optimum

64

The above table is the summary of the data of the research question, which

were undertaken through exploratory research where the variable under study

was job analysis. To study the hypothesis I, 10 questions were study, which

are given as the investigation question and from the investigation question

variable required are framed variable analysed will help us to test the

hypotheses.

65

Research Objective Type of

Investigation

To explore the contribution of Human Resource

Information System in Human Resource

Planning.

To investigate the HRIS as strategic planner in

forecasting demand and supply.

Exploratory Research

Mediate variable – Succession Planning & Forecasting demand and supply

Hypotheses ( 2 and 3)

2) The greater utilisation of HRIS Forecasting Demand and Supply

analysis in an organisation increases the efficiency and

effectiveness of HR planning.

H02: The greater utilisation of HRIS Forecasting Demand and Supply analysis in an organisation does not increase the efficiency and effectiveness of HR planning. H12: The greater utilisation of HRIS Forecasting Demand and Supply

analysis in an organisation increases the efficiency and effectiveness of

HR planning.

3) Succession planning of HRIS increases the efficiency and




H13: Succession planning of HRIS increases the efficiency and



1. HRIS forecasts supply of human resources. Opinion of HRIS ability to analyse supply

66

Table 8 - Data requirement table 2

The above table is the summary of the data requirement for the current

research question, which were undertaken through exploratory research

where the variable under study was job analysis. To study the hypothesis 2,

10 questions were study, which are given as the investigation question and

2. HRIS constantly analyses and matches the

demand for human resources. Opinion of HRIS ability to analyse demand

3. HRIS manages internal information within

the organisation.

Opinion of HRIS ability in Internal data management process

4. HRIS manages external information outside

the organisation. Opinion of HRIS ability in External data management process

5. HRIS estimates future human resources

requirement of the organisation. HRIS ability to analyze Forecasting

6. HRIS identifies a logical progression path

and the steps required for advancements.

Opinion of HRIS on Career planning

7. Future supply and demand of labour is

forecasted using What-If analysis function of

HRIS.

Opinion of HRIS succession ability

8. Role of HRIS aligns with the organisation‗s

HR Strategy. Opinion on organization goal achievement

9. HRIS ensures organisation has right kind and

numbers of employees at right place at right

time.

Opinion on employee placement

10. Through HRIS, the Accuracy of planning has

improved

Opinion of HRIS strategic partner role

67

from the investigation question variable required are framed, variable

analysed will help us to test the hypotheses.

Research Objective Type of Investigation

To study the perceptions of employees

toward HR distance and isolation for the

dimension of internal corporate

communication that constitutes HRIS.

Exploratory Research

Mediate variable - Employee- HR Communication

Hypotheses (4)

HRIS implementation is the factor for effective communication in

the organisation.

H04: HRIS implementation is not the factor for effective communication

in the organisation.

H14: HRIS implementation is the factor for effective communication in

the organisation.


1. HRIS create environment of open

communication between employees and

management?

Employee Opinion on open communication

2. HRIS perceive the effectiveness and

integrity of current communication culture Opinion of communication culture

3. Employee submit feedback and

suggested improvements to the HRIS Employee opinion feedback

4. Automated leave management system

help in smooth function of leave

management

HRIS ability to perform leave management – self service

5. HRIS salary management system help in

smooth function of payroll management HRIS ability to perform payroll management

6. Salary slips generated from the HRIS of

individual employee. Self – service by the employee

7. Experience letter and personal data can Opinion towards self

68

Table 9 - Data requirement table 3

The above table is the summary of the data requirement for the current

research question, which was undertaken through exploratory research where

the variable under study was job analysis. To study the hypothesis 3 and 4,

10 questions were study, which are given as the investigation question and

from the investigation question variable required are framed, variable

analysed will help us to test the hypotheses.

be generated from HRIS service

8. HRIS give the chance of creating social

network in the organisation Opinion on organization culture

9. System being self- service there has

been very few interaction between HR and

the Employee

Opinion on HR – Employee isolation area

10. HRIS make employee aware of the

new joined , Retirement , birthday that

create friendly environment Opinion on organization culture

69

5.18 Multi-item indicators of independent variables

The independent variables identified in the research model measured using

multi-item indicators

Table 10: Multi-item indicators of independent variables

Variables Items Description

HRIS Labour Demand Analysis (LD)

LD1 HRIS manages internal information within the organisation.

LD2 HRIS manages external information outside the organisation.

LD3

HRIS constantly analyses and matches the demand for human resources.

HRIS Labour Supply Analysis (LS)

LS1 HRIS forecasts supply of human resources.

LS2

HRIS estimates future human resources requirement of the organisation.

LS3

HRIS ensures organisation has right kind and numbers of employees at right place at right time.( EMPLOYEE PLACEMENT )

HRIS Succession Planning ( SP)

SP1 HRIS identifies a logical progression path and the steps required for advancements.

SP2

Future supply and demand of labor can be forecast using What-If analysis function of HRIS.

70

Multi-item indicators of independent variables continue

HRIS Job Analysis (JA)

JA1 Identification of unfilled positions accurately.

JA2

HRIS analyses each job description and its job specification

JA3

HRIS evaluates the recruiting

processes effectively.

HRIS E-recruiting (ER)

ER1

HRIS leverages employee‗s talent in

the right place at the right time.

ER2

HRIS help to reduce recruiting costs

ER3

HRIS eliminates unsuitable applicants early and focus on promising candidates.

HRIS Corporate Communication ( CO)

CO 1

HRIS create self service in the organisation

CO2 HRIS create platform for Open Communication

CO3

HRIS perceive the effectiveness and integrity of current communication culture

71

CHAPTER 5

CONCEPTS AND THEORY

72

Chapter4

Concepts and Theory

5.1 HRIS Definition

HRIS, the abbreviation for Human Resources Information System, is a system

that lets you keep track of all your employees and information about them. It is

usually done in a database or, more often, in a series of inter-related

databases.

Human resource information (HRIS) is a system that help an organization

acquire, store, manipulate, analyses, retrieve, and distribute information about

an organization‘s human resources (Tannenbaum, 1990)

Human Resource Information Systems (HRIS) is a process that utilizes the

information technology for the effective management of human resource

functions and applications.

It is a computerized system typically comprising a data base or inter related

data base that track employees and their employment specific information

(Gill and Johnson, 2010).

It can be briefly defined as integrated systems used to gather, store and

analyze information regarding an organizations human resources

(Hendrickson 2003). An HRIS can perform a number of functions from the

simple storage and communication of information, to more complex

transactions. As technology advances, the range of functions that an HRIS

can undertake increases. Actually HRIS is directed towards the HR

73

department itself (Ruel, Bondarouk & Looise, 2004), but the use of HRIS can

provide a number of benefits not only to the HR function, but also line

managers, and the wider organization (Parry, 2009).

5.2 Historical evolution of HR and HRIS

History of HRIS – Early (Pre-WWII)

Early HR (then called personnel) practices were limited to employee record

keeping and were provided as a service to the organization. There was no

HRIS as we know it today. Personnel record keeping was done by hand, often

using a system as simple as an index card file. The personnel department

was typically small, with little authority and limited interaction with the

organization‘s business mission (Hendrickson, 2003).

History of HRIS – Between 1945 and 1960

After WWII, organizations became more aware of human resource issues,

recognizing the importance of employee morale to the success of

organizations. Formal selection and development processes were developed

but there was little real change from the original responsibility of the personnel

department—that of record keeping. Record keeping was still done by hand,

and pre-1960, HR information systems hardly gave a hint of what they would

become with the advent of workplace technology (Hendrickson, 2003).

History of HRIS – Early (1960 to 1980)

In the late 1960s and 1970s, the term ―human resource management‖

replaced ―personnel,‖ and by 1974, the new term, human resource

74

management, appeared in media headlines and was eventually shortened to

just HR. Between 1960 and 1980, organizations firmly integrated HR into their

core business missions. At the same time, employer regulatory reporting

requirements increased significantly. Large organizations used mainframe

computers to maintain organization databases, and technology-based human

resource information systems (HRIS) provided an efficient solution for the

increased record keeping and reporting required by government regulation.

The HR department became one of the most important users of the

organization‘s computer systems, though the primary task was still record

keeping (Hendrickson, 2003).

ROLE OF HRM

Early 20th century 21st century

Caretaker Strategic planner

Employee Focus Cost Effectiveness

Record Employee Development

Figure3: HISTORICAL EVOLUTION HRM

Source: Hendrickson, 2003

75

5.2a. Components of an HRIS

Kovach et al., (1999) presented the three major functional components in any HRIS by giving the model below:

Figure 4: Functional components in any HRIS

Source: Kovach et al

The Input function enters personnel information into the HRIS. Data entry in

the past had been one way, but today, scanning technology permits scanning

and storage of actual image off an original document, including signatures

and handwritten notes. The maintenance function updates and adds new data

to the database after data have been entered into the information system.

Moreover, the most visible function of an HRIS is the output generated.

According to Kovach et al., (1999), to generate valuable output for computer

users, the HRIS have to process that output, make the necessary

calculations, and then format the presentation in a way that could be

understood. However, the note of caution is that, while it is easy to think of HR

information systems in terms of the hardware and software packages used to

implement them and to measure them by the number of workstations,

applications or users who log onto the system, the most important elements of

HRIS are not the computers, rather, the information. The bottom line of any

Input Data Maintenance Output

76

comprehensive HRIS have to be the information validity, reliability and utility

first and the automation of the process second.

5.3 Types of HRIS

Fig 5: Type of HRIS Source: Author Operational HRIS

Operational HRIS Provides data to support routine and repetitive human

resource decisions. Information is detailed, structured, accurate and internal.

Examples of Operational HRIS:

Performance Management Information Systems

Applicant Selection and Placement Information Systems

Employee information system

OPERATIONAL HRIS

TACTICAL HRIS

STRATEGIC HRIS

77

Tactical HRIS

Supports management decisions emphasizing allocation of human resources.

Within the human resource management area, these decisions include

recruitment decisions; job analysis and design decisions, training and

development decisions, and employee compensation plan decisions.

Examples of Tactical HRIS:

Job Analysis and Design Information Systems

Recruiting information system

Employee training system

Compensation and benefits information system

Strategic HRIS

Strategic HRIS Help top level managers to set goals and directions for

organisation.Gather and manage information from within and outside

organization.

Examples of Strategic HRIS:

Information system supporting Workspace planning

Specialized Human Resource Information Systems Software

5.4 APPLICATION OF HRIS

Payroll – This is the most common feature of any HRIS, and included in any

of them. A variety of payroll systems exist in an HRIS including some that are

fully automated and synced with external time clocks and others that allow

each employee to enter their time into the system for managerial approval.

When looking for an HRIS be sure that the payroll feature it includes is fully

http://www.unicornhro.com/payroll

78

functional and includes the ability to review payroll information quickly as well

as any other additional features your specific HRIS needs may call for.

Benefits Administration – Some figures state that an HR employee could

spend as much as forty percent of their time managing employee benefits. A

great HRIS can eliminate the majority of this time completely. Many HRIS

programs will even allow each employee to manage their own benefits,

adding a spouse to their insurance or checking the total of their FSA when

they want without having to bother HR at all. If you offer employee benefits

you shouldn't invest in an HRIS that doesn't provide you with benefits

administration options, and taking it a step further and investing in an HRIS

that allows employee self-service will help your company even more.

Training Systems – With the extra time an HRIS will give your HR

department, they'll likely be able to devote more time and energy

into developing training strategies to improve your workforce. An HRIS with

a training system will allow your HR department to track and manage all

aspects of employee training and is a great feature to have in any HRIS.

Recruiting – Your HRIS will also allow your HR department more time to

focus on their recruitment efforts. New hires are valuable, but the recruitment

process can be complex. A good HRIS will provide many different features

designed to help your HR department manage each step of the recruitment

phase with ease. It's a vital component to any HRIS, and one that can really

improve your overall ROI on employees.

http://www.unicornhro.com/benefits

79

HR Metrics – The best HRIS will give you the chance to review a wealth of

data about your company and your employees. This feature gives you the

ability to see where your company thrives and where it struggles and lets you

develop new strategies for improving your company.

80

Fig 6: Application of HRIS; Source: Author

Recruiting

Benefits Open Enrollment

Attendance

Training

Time Collection

Succession Management

Position Control

•Outsourced Tax Filling

• Outsourced Check Printing

Payroll

Multi Language

Multi Currency

Employee Self Service

Email Alerts

•Employee Vacation Leave Request with Manager Approval

•Pay History, Print Advices, etc

•Work Flow Management

• Multi – Level User Defined Approval Levels

• Manager Self Service

• Have Managers approve Employee Time Sheets

•Life Events

Employee Self Service

•Online Review Form for Management and Work Flow and Manager Approval levels

• 360 Reviews

• Competency Based Employment Development Plans

Performance Management and Compensation

•Ability to Post Requisitions on Major Job Boards

•Screening Questions

• Testing and Results

• Applicant Self Service

Training Management

•Ability to log time online

•Need for a rules based physical time keeping system

•Time Entry and Leave Accrual Sub Questions

Time Entry & Leave Accrual

81

Figure 7: Model of an Organizational System Centred on HRIS

Source: Evolution of Human Resource Management and Human Resource

Information Systems - The Role of Information Technology

National culture environment

Government regulations

Labour market Societal concerns

HR Programs

Corporate culture

Planning

Recruiting and selecting

Training Performance management

Strategic Business Compensation HR programs

management plan and Quality of life and safety evaluation

system goals employee and labour HR metrics

HR scorecard

Value-added

Strategic human HR goals Human Resource

ROI

Legal compliance

resources

Retention

Information System

management

Climate/moral

Productivity

Accident rate IT knowledge

HR knowledge

Feedback Feedback

Technology HRM research Competition

MODEL OF ORGANIZATIONAL FUNCTIONING

82

The use of computer technology to improve the management of employees is

centered on the creation and maintenance of an HRIS. Figure 6 depicts a

model of an organizational system centered on an HRIS. This model shows

the interrelatedness of the parts of an organization that can affect the

functioning of the organization. It indicates the interrelatedness between the

strategic management system, the strategic HRM system, and the

performance, business, and HR goals that are generated during the strategic

planning process. Note particularly how the business goals directly affect the

HR goals; this relationship should be an ongoing process in an organization,

with adjustments made to either set of goals as needed. The HR goals drive

the HR programs that provide management the tools for the efficient and

effective use of employees.

There are several aspects of this model that are critical Firstly , this is a

systems model; that is, it is organic and can change over time, as represented

by the feedback loops from goal achievement to other parts of the model.

Secondly, the model concentrates on the use of an HRIS as critical to the

efficient operation of an organization. Removing HRIS from the model, it

would still be a model of organizational functioning. However, it is our

contention that an organization operating in accordance with this model would

run more slowly and less efficiently, and this could hurt its competitiveness in

the market place. Third, the HRIS and the HR program evaluation results, in

terms of HR metrics and cost-benefit results (value added and return on

investment—ROI), are in continual interaction. This emphasis is consistent

with current thinking in the HRM field (Cascio, 2000; Fitz-enz, 2000, 2002)

83

and has generated the HR workforce scorecard (Becker et al., 2001; Huselid

et al.,2005). Finally, it is important to note that the successful design,

development, and implementation of an HRIS depend equally on IT and on

HR knowledge.

Other aspects of this model are important. First, all the factors in the external

environment will influence the internal functioning of the organization. The

most important of these factors is national culture. National culture will affect

all the factors in the external environment: government regulations, the labour

market, societal concerns, technology, HRM research, and competition.

These factors, in turn, will have an impact on the organization. Second, the

two-way arrow between the strategic management system and strategic HRM

indicates our understanding that this interaction will improve the functioning of

the organization. Finally, note that corporate culture influences the entire

internal operation of the organization.

84

2.4 a) Resource Flow of HRIS Model

Figure 8: Resource Flow of HRIS Model; Source: Raymond

The figure 7 shows the resource flow of HRIS model by Raymond (1995). As

you can observe through the HRIS model, it has three set of components,

85

which are Input subsystem, HRIS database, and Output subsystem. In Input

subsystem, there are three main subsystems, which are data processing,

human resource research, and human resource intelligence. Some input data

might include software that can transform the data into the format that needed

and required. The second one is HRIS database, all the data and information

can be store in computer storage. The software such as Database

management system (DBMS) can help to perform the maintenance

processes. The last one is output subsystem which contain all the output

related to HR consists of workforce planning subsystem, recruiting

subsystem, workforce management system, compensation subsystem,

benefit subsystem, and environmental reporting subsystem.

86

COUNTRY MAKE THE BEST USED OF THE AREAS IN THE HRIS In which of the following areas is the HR Information System used

UK SWEDEN GERMANY GREECE SLOVAKIA

Individual personnel records

98 46 33 97 95

Payroll 74 96 93 95 94

Benefits 66 72 80 80 48

Time registration and attendance

48 20 90 86 82

Recruitment and selection

66 19 39 60 35

Training and development

68 38 55 69 44

Performance M anagement

36 12 29 53 28

Career planning / Succession Planning

15 12 24 30 17

Work scheduling

11 54 28 64 40

Health and Safety

21 18 24 29 29

Table: 11: Areas is the HR Information System used in various countries.

Source: Carnet (2003)

87

The table 11 show which country make the best used of the areas in the

HRIS. From the table it can be interpreted that GREECE have the best

average for the use of HRIS in all the areas mention above.

5.5 Human Resource Planning

Bulla and Scott, defined human resource planning as ‗the process for

ensuring that the human resource requirements of an organization are

identified and plans are made for satisfying those requirements‘

According to Wikstrom, Human Resource Planning consists of a series of

activities, viz.

(a) Forecasting future manpower requirements, either in terms of

mathematical projections of trends in the economic environment and

developments in industry, or in terms of judgmental estimates based upon the

specific future plans of a company(b) Making an inventory of present

manpower resources and assessing the extent to which these resources are

employed optimally (c) Anticipating manpower problems by projecting present

resources into the future and comparing them with the forecast of

requirements to determine their adequacy, both quantitatively and

qualitatively; and (d) Planning the necessary programmes of requirements,

selection, training, development, utilization, transfer, promotion, motivation

and compensation to ensure that future manpower requirements are properly

met.

88

Fig 9: Human Resource Planning Source: Edwin B.Flippo, Personnel

Management McGraw Hill , Sixth edition .

RESOURCE DEMAND FORECASTING

•Long Range

•Strategic Plans

•Demographics

•The economy

•Technological trends

•Social trends

•Short range

•Production schedules

•Affirmative Action employment opportunitygoals

•Relocations

HUMAN RESOURCE ACTION

•Hiring

•Training

•Career Management

•Productivity Program

•Reduction in Force

RESOURCE SUPPLY FORECASTING

•Current Inventory

•Productivity Levels

•Turnover Rate

•Absenteesim Rate

•Movemeny among Jobs Rates

89

5.6 Human Resource Forecasting HR Forecasting attempts to determine the supply and demand for various

types of human resources, and to predict areas within the organization where

there will be labor shortages or surpluses

There are three major steps to forecasting:

1. Forecasting the demand for labor

2. Determining labor supply

3. Determining labor surpluses and shortages

FORECASTING HR REQUIREMENTS (DEMAND ANALYSIS)

Trend Analysis

• Constructing and applying statistical models that predict labor demand

for the next year, given relatively objective statistics from the previous

year.

Leading Indicators

• Objective measures that accurately predict future labor demand.

FORECASTING HR AVAILABILITY (SUPPLY ANALYSIS)

Succession or Replacement Charts

• Who has been groomed/ developed and is ready for promotion right

NOW?

Human Resource Information Systems (HRIS)

• An employee database that can be searched when vacancies occur.

90

Transition Matrices (Markov Analysis)

• A chart that lists job categories held in one period and shows the

proportion of employees in each of those job categories in a future

period.

• It answers two questions:

• ―Where did people in each job category go?‖

• ―Where did people now in each job category come from?

• Personnel / Yield Ratios

• How much work will it take to recruit one new accountant?

91

5.7 Demand Forecasting

Demand forecasting involves predicting the number and types of people the

organization will need at some future point in time. There are two general

approaches to demand forecasting: statistical and judgmental. Using a

statistical approach, an organization predicts its needed workforce size on the

basis of certain business factors. A business factor is an attribute of the

business, such as sales volume or market share, which closely relates to the

size of the needed workforce. For example, a hospital could use the business

factor of projected patient load to predict the number of nurses it would need

at some point in time.

A statistical approach to demand forecasting typically is used when an

organization operates in a stable environment, where an appropriate business

factor can be predicted with some degree of certainty. For example, a

statistical approach may be appropriate for a hospital located in an area with

little population growth. Organizations operating in less stable environments

(e.g., a hospital in an area experiencing explosive growth and change) are

more likely to rely on a judgmental approach.

92

STATISTICAL APPROACHES

The most commonly used statistical methods of demand forecasting are

trend, ratio, and regression analysis. In trend analysis, the future demand for

human resources is projected on the basis of past business trends regarding

a business factor. Ratio analysis is the process of determining future HR

demand by computing an exact ratio between the specific business factor and

the number of employees needed. It thus provides a more precise estimate

than trend analysis. For instance, the demand for professors at a university

could be forecast on the basis of the student-faculty ratio. Suppose that a

university has 10,000 students and 500 professors; the student-faculty ratio is

thus 10,000:500 or 20:1. This ratio means that for every 20 students, the

university needs 1 professor. If the university anticipates a student enrollment

increase of 1,000 for next year, it would need to hire 50 (1000/20) new

professors. This is in addition to any hiring needed to fill vacancies from

existing faculty who might leave in the meantime.

Regression analysis is similar to both trend and ratio analyses in that

forecasts are based on the relationship between a business factor and

workforce size. However, this method is more statistically sophisticated. Using

statistical software, the analyst first creates a scatter diagram depicting the

relationship between the business factor and workforce size.

The software can then calculate a regression line, which cuts right through the

center of the point on the scattered plot. (The regression line

is mathematically determined using a formula found in most statistical texts.)

http://www.referenceforbusiness.com/knowledge/Regression_analysis.html

http://www.referenceforbusiness.com/knowledge/Mathematics.html

93

By inspecting values along the regression line, one can see how many

employees are needed at each value of the business factor. Both ratio

analysis and regression analysis are aspects of human resource management

systems (HRMS) packages, and therefore provide the business with the

capabilities to calculate more accurate and timely forecasts.

Statistical methods of demand forecasting assume that the relationship

between workforce size and the business factor remains constant over time. If

this relationship were to change unexpectedly, the forecast would become

inaccurate. For example, the forecast of needed professors based on the

student-faculty ratio would be inaccurate if the university decided to change its

teaching approach and institute distance learning classes. This approach to

teaching involves the use of video equipment, which can beam the professor's

lectures to many different locations, thus allowing many more students to

enroll in the class. Consequently, the 20:1 ratio would no longer apply; the

university would now be able to function with fewer professors (or at least

more students per professor).

JUDGMENTAL APPROACHES.

Judgmental approaches to demand forecasting involve the use of human

judgment, rather than a manipulation of numbers. Two of the most commonly

used judgmental techniques are group brainstorming and sales force

estimates. The group brainstorming technique of demand forecasting uses a

panel of experts (i.e., people within the organization who collectively

understand the market, the industry, and the technological developments

94

bearing on HRM needs). These experts are asked to generate a forecast

through the process of brainstorming.

A variety of brainstorming techniques exist. Most involve a face-to-face

discussion among group members, who are asked to reach a consensus.

When using a group brainstorming technique to forecast human resources

demand, participants must make certain assumptions regarding the future.

That is, they must examine the firm's strategic plans for developing new

products or services, expanding to new markets, and so forth, and then try to

predict such things as:

Future marketplace demands for the organization's products and

services

The percentage of the market that the organization will serve

The availability and nature of new technologies that may affect the

amounts and types of products or services that can be offered

The accuracy of the forecasts depends on the correctness of these

assumptions. Of course, the future is very difficult to predict because it is

subject to many uncertainties. Therefore, the organization must

continually monitor its demand forecasts in light of any unexpected changes.

HRMS packages facilitate the calculation and monitoring of demand

forecasts.

95

The use of sales force estimates represents another judgmental approach for

forecasting HR demand. This approach is most appropriately used when the

need for additional employees arises from the introduction of new products.

When a new product is launched, sales personnel are asked to estimate the

Sdemand for the product (i.e., expected sales volume) based on their

knowledge of customer needs and interests. The organization then uses this

information to estimate how many employees will be needed to meet this

demand. One drawback of this approach is the possibility of bias. Some sales

personnel may purposely underestimate product demands so they will look

good when their own sales exceed the forecasts. Others may overestimate

demand because they are overly optimistic about their sales potential.

5.8 SUPPLY FORECASTING

Once a demand forecast has been made, an organization has a relatively

good idea of the number and nature of positions it will need to carry out its

work at a particular point in time. It then estimates which of these positions will

be filled at that time by individuals who already are employed by the company.

The process used to make this estimation is called supply forecasting.

Supply forecasting is a two-step process. HRMS packages provide the

employer with the means to automate much of these two steps. In the first

step, the organization groups its positions by title, function, and responsibility

level. These groupings should reflect levels of positions across which

employees may be expected to advance. For instance, the HRM group might

include the job titles of HR assistant, HR manager, and HR director. The

96

secretarial group might include secretarial clerk, principal secretary, senior

secretary, and administrative assistant.

The second step of supply forecasting is to estimate, within each job group,

how many current employees will remain in their positions during the planning

period, how many will move to another position (e.g., through transfer,

promotion, or demotion), and how many will leave the organization. These

predictions are partially based on past mobility trends (e.g., turnover and

promotion rates). The organization also should consider any plans for

mergers, acquisitions, unit or division divestitures, layoffs, retrenchments and

downsizing, and even hostile takeovers. When making its supply forecast, the

organization also should look at specific individuals. Some may have already

announced, for instance, that they are retiring at the end of the year, returning

to school in the fall, or getting married and planning on moving to a different

part of the country.

Computerized statistical packages are available to help estimate the flow of

employees through an organization. The estimates generated by these

packages can be fairly accurate in stable environments. When the

environment is unstable, of course, these estimates are suspect. For instance,

an organization may base its estimates on past turnover rates, which have

been about 10 percent during each of the past five years. If the turnover rate

were to change drastically because of factors such as job dissatisfaction or

down-sizing, the organization would severely underestimate its future staffing

needs.

http://www.referenceforbusiness.com/knowledge/List_of_statistical_packages.html

97

5.9 ESTIMATING FUTURE HUMAN RESOURCE NEEDS

Combining the results of the supply and demand forecasts within each job

group derives specific staffing needs. For example, consider a firm that

currently employs twenty-five secretaries. As the result of its supply forecast,

the firm predicts that five of these secretarial positions will become vacant by

the end of the planning period because of retirements, promotions, and so

forth. Its demand forecast predicts that three new secretarial positions will be

needed during the coming period because of an increased demand for the

company's product. By combining these two estimates, the firm now realizes

that it must hire eight new secretaries (five to replace those expected to

vacate their positions, plus three to fill the newly created positions).

5.10 OUTCOMES OF THE HR PLANNING PROCESS

When the HR planning process is completed, a firm must establish and

implement HRM practices in order to meet its human resource needs.

Following is a brief overview of how HRM practices can help organizations to

deal with anticipated oversupplies and undersupplies of personnel.

The trend toward organizational restructuring usually results in a smaller

workforce. Therefore, when an organization's strategic plan calls for

restructuring, the HRM response usually is one of downsizing. Downsizing

usually results in layoffs. Because of the negative outcomes that are often

98

associated with layoffs, employers are encouraged to seek alternatives, such

as hiring freezes, early retirements, restricted overtime, job sharing, and pay

reductions.

When the results of demand and supply forecasting project an undersupply of

personnel at some future point in time, the organization must decide how to

resolve this problem. The solution may involve hiring additional staff, but there

are other options. When HR plans indicate an undersupply of employees,

firms can recruit personnel to staff jobs with anticipated vacancies. HRMS

packages provide employers with capabilities to carry out recruitment in all of

its steps. The first step is to conduct a job analysis to determine the

qualifications needed for each vacant job.

The next step is to determine where and how to recruit the needed

individuals. For instance, a company must decide whether to fill its vacancies

externally (i.e., from the external labor market) or internally (i.e., from its own

current workforce). When recruiting externally, an organization should first

assess its attractiveness in the eyes of potential applicants; unattractive

employers may have trouble generating a sufficiently large applicant pool.

Such employers should attempt to increase the number of people who are

attracted to the organization and thus interested in applying for a job there.

This may be accomplished by increasing starting pay levels and/or improving

benefit packages. Another option is to target certain protected groups whose

members may be underemployed in the local labor market, such as older,

disabled, or foreign-born individuals.

99

Internal recruitment efforts can be improved through the use of career

development programs. When designing such a program, the organization

should collect work history and skill level information on each of its

employees. Such information would include age, education level, training,

special skills (e.g., foreign language spoken), and promotion record, and

should be stored on a computer. This employee information allows the

organization to identify current employees who are qualified to assume jobs

with greater responsibility levels. For instance, in departments where skilled

managers are in short supply, a management replacement chart can be

prepared that lists present managers, proposes likely replacements, and gives

an estimate of when the replacement candidate will be trained and available

to fill an open position.

Instead of hiring new workers to meet increasing demands, an organization

may decide to improve the productivity of the existing workforce through

additional training. Other options include the use of overtime, additional shifts,

job reassignments, and temporary workers. Another option is to improve

retention rates. When this aim is met, firms will have fewer job vacancies to

fill.

Retention rates can be improved at the outset of the employer/employee

relationship, when applicants are first recruited. Retention rates are likely to

improve when applicants are given a realistic preview of what their jobs would

actually be like (warts and all), rather than an overly glowing one.

Workers want to feel valued and needed by their organization. In a climate

characterized by mergers, acquisitions, and layoffs, many workers feel very

100

insecure about their jobs. Employees with such feelings often begin shopping

around for other jobs. These fears can be eased by implementing HR plans

for training and cross-training. Such plans allow workers to perform a variety

of functions, thus ensuring that they have the necessary skills to continue

making contributions to the firm. Management training also is crucial in this

regard. Organizations must train managers to be good supervisors. Poor

"people management" is a primary cause of voluntary turnover. Managers at

all levels should know what is expected of them, in terms of managing people

instead of just managing budgets.

Companies also can improve retention rates by creating a work environment

that encourages employees to participate actively in the company's total

welfare. Workers want recognition for their contributions to organizational

progress, but this recognition must be tailored to the workers' individual

needs. While some workers may be motivated by monetary rewards, others

seek recognition by peers and managers, feelings of accomplishment, or job

satisfaction.

Workers now demand more flexible schedules to best fit their lifestyles.

Organizations can improve retention rates by implementing programs to

accommodate these needs, such as job sharing, shortened workweeks, and

telecommuting via computer and modem.

Finally, companies also can improve retention rates by offering attractive

benefit packages, such as generous retirement plans, stock ownership, health

and dental insurance, and employee discount programs. Many firms are now

101

offering "cafeteria plan" benefit packages, which are tailored to the specific

needs of each of their employees.

5.11 INFORMATION REQUIRED TO SUCCESSFULLY FORECAST

HUMAN RESOURCES DEMAND AND SUPPLY

There are three important elements to consider in order to successfully

forecasting labor demand and supply

Fig 10: Elements of Forecasting

Source: Author

5.12 Identifying stakeholders who will be involved

1. The Human Resources Planning Team

The HRP team should include all relevant stakeholders across multiple

functional areas and organizational levels. Explicitly developing a team for the

Identifying stakeholders who will be

involved

Determining the appropriate

planning horizon

Defining the internal and

external labour force.

102

HRP process helps ensure success of the strategies within the plan and holds

those who are not meeting the goals accountable. Team will reduce the

tendency for group members to avoid introducing novel ideas that are outside

of the group‘s normal mode of thinking for fear that they will disrupt the group

consensus process.

2. Determining the Appropriate Planning Horizon

The appropriate planning horizon is a judgment about how far into the future

predictions can be made, taking into consideration acceptable levels of

operational, organizational, and environmental uncertainties. The typical

planning horizon is two-tiered. The first horizon, usually a year in duration,

identifies more immediate workforce concerns that can be addressed quickly,

such as known employee exits, replacements, promotions, etc. The second

horizon is usually longer, approximately 3 to 6 years, allowing for enough lead

time to actively recruit, select, train, and transfer staff as needed.

3. Evaluating the Current Human Resources Situation

Defining the Internal Labor Force

When determining which persons should be considered employees, a good

measure is those who perform the work or provide services within the

company under the control or supervision of the organization‘s management

team.

4. HR Inventory

Identifying current workforce dynamics is a critical step in the development of

an HR plan. A skills inventory is a computerized or manual system designed

103

to take stock of information about current employees, experience, education,

compensation history, and/or unique abilities. As an alternative or

complement to the skills inventory, a human resource audit is a systematic

examination and analysis of an organizational workforce in an effort to create

an understanding of the current staffing situation.

Defining the External Labor Force

The external labor force refers to potential sources of human resources

outside of an organization that can affect the future supply of employees.

Evaluation of the external labor force relies on labor market estimates based

on regional and global economic, environmental, and demographic changes.

5.13 Human Resource Actions

After estimating the demand and supply of human resources, managers must

take steps to balance the two. The matching of projected human resource

needs with projected availability of human resources provides the basis for

undertaking various actions to ensure that supply will equal demand at the

time specified. Table 1 shows the HR actions based on demand and supply

forecasting. The data that has been collected for the availability and

requirement of the personnel can be categorized into four situations. Each of

these situations requires a different action to be taken for estimating the

demand and supply of human resources.

104

Table 12: HR Action based on Demand and Supply Forecasting

5.14 HR Function as a Strategic Contributer

Situation Demand

for

Manpower

Supply of

Manpower

HR Actions

1 Low Low Need to pay attention to

organizational Planning

Training and development

of manpower if industry

growth and change in

demand is expected in future

2 Low High Prepare plans for growth and

expansion

Outplacement of employees

Layoff excess manpower

Demote certain personnel

Early retirement of

employees

3 High Low Internal Promotions

Training and Development

of manpower

4 High High Offer competitive pay

package

105

The use of technology in HR, have facilitated a change in emphasis to that of

HR playing a more strategic role within the organisation.

Figure 11 illustrates the hierarchical roles that the HR function may play within

an organisation. Many people in HR have traditionally been involved with

administrative activity, shown at the bottom of the HR value pyramid. The use

of technology may allow HR practitioners to move up through this hierarchy

and undertake more strategic work as business partners, firstly by freeing up

time for strategic-level work and also by providing the managers with

quantifiable data to drive this strategy .With the growth of information

technology, much administration can potentially be accomplished using self-

service or automated systems. The HR function can, and increasingly is,

making strategic contributions to the performance of an organisation. The

take-up of self-service is currently relatively low, but many organisations are

planning to introduce it in the future (CIPD 2005).

106

Figure 11: HR value pyramid Source : Ada Reddington et al (2005)

5.14 SUCCESSION PLANNING IN HRIS

What is Succession Planning?

Making sure that the right people are in the right place at the right time in

order to be as prepared as possible for unexpected events.

Why is it important?

On average, companies will lose a third of their top management in the next 5

years. Organisations are now flatter and leaner, with fewer layers of middle

managers available to fill key roles. To compound the problem, failure rates

Business

patnership

Consulting from reactiveto proactive

Transactions

Basic administration (entry level)

Increasing

Transform

ation of

HR

function

Increasing

developme

nt of HR

activity to

line

managers

107

among executives hired from outside can be as high as 50%.Most

organisations focus almost entirely on hiring and training whilst neglecting

succession planning with more than two thirds of all businesses having no

formal succession plan. Many senior management teams fail to develop in

their successors the high-level skills and competencies they will require for

advancement. ―Continuity of leadership‖ is essential to drive organizations

forward.

How can we be effective?

There is no simple template for putting a succession planning process in

place. Every organization is different, and each must develop a succession

plan that fits its specific needs with management guiding the process. Many

large organizations require succession planning applications or human

resources information systems (HRIS) that provides visibility across the

company. This is particularly crucial when talent can reside in many different

locations. Succession planning is a complex task that requires constant

attention and ongoing resources. Successful organizations devote

considerable time and resources to mapping out skills and competencies so

that they can hire and train appropriately and achieve a distinct competitive

edge .A growing number of companies are recognising the value of

succession planning, and they are expanding the concept from one

traditionally used to manage only senior level positions to encompass

managerial positions across the organization.

108

Fig. 12 shows the ―Full Details‖ screen, which is the core of Succession

Planning in HRIS, allowing rapid access to all the information on each

individual held on the database.

The top half of the screen shows key personal information; customizing which

reflect things relevant to individual organizations. For example, rather than

seeing ―Grade‖ and ―Status‖ you may prefer to record ―Location‖ and

―Education‖.

The bottom half of the screen shows a series of tabs holding further

information on the individual. Clicking on the various tab heading brings that

information to the front to view or edit. The various tabs are-

109

Succeeded By - This holds the names of the people who could take over

from the individual shown in the top half of the screen. Adding a new

successor by selecting their name from the appropriate drop-down box. After

adding new successor, the summary panel on the right in the top half of the

screen get update to reflect the number of potential successors within each

category.

Job History - This is where the details of the various jobs undertaken by an

individual are stored with details of the current role also shown in the upper

half of the screen. Over time, it will show an individual‘s complete career

history.

Notes- All notes after entering will be edited, added to, or deleted.

Assessments - This is a simple method of evaluating an individual. Score is

a numeric value but is not limited in any way. For example, some users may

use a scale of 1-5, whereas others may use percentages.

Attributes - This allows a maximum of 50 additional user-defined variables to

quantify. The sort of information measured can include the key managerial

competencies relevant to an individual business.

Successor to - This shows those people for whom the individual in the top

half of the screen could take over from. Information is not input using this tab;

instead, it is populated because of what is added in the ―Succeeded By‖

panel.

110

An effective HRIS solution coupled with a thoughtful

succession planning policy can rapidly boost your

organizational performance

A well-structured succession-planning program will enable you to locate

talent, prepare your organization for growth, and ensure you have the right

personnel to function at peak efficiency. Best practice organizations use

succession planning to develop and maintain strong leadership and to

ensure that they address all the skills and competencies required for

today‘s business environment. A smooth leadership transition from one

generation of executives to the next can be achieved if succession

planning is a top corporate priority. From recruiting, the right candidate to

developing new leadership from within, succession planning is essential for

an organization to meet its strategic goals.

Recruitment and selection

Recruitment represents one of the core staffing activities that need to be

efficiently and effectively planned and conducted for organizations to attain

success (Darrag et al., 2010). Darrag et al. (2010) identified recruitment as

the process of discovering potential candidates for actual or anticipated

organizational vacancies or, from another perspective; it is a link activity

bringing together those with jobs to fill and those seeking jobs. According to

111

Selden et al. (2000) a fair number of studies focus on the performance effects

of specific human resource management practices, such as training, and

selection. The different stages of the recruitment and selection process were

identified by Fill and Moreland (1999) as: Department (contextual) analysis;

Job analysis; Job description and person specification; the seeking of

applicants; attracting applicants ;Screening applicants ;Interviewing

candidates ;Appointment.

Figure13: The stages of recruitment and selection

Source: Human Resources Management, Wendell L. French

112

Selection process Selection is the process of choosing individuals with the relevant qualifications

to fill existing or projected openings. Data and information about applicants

regarding current employees, whether for a transfer or promotion, or outside

candidates for the first time position with the firm are collected and evaluated.

The steps in the selection process, in ascending order include preliminary

reception of applicants, initial applicant screening, selection testing, selection

interview, background investigation and reference checking, supervisory

interview, realistic job previews, making the hiring decision, candidate

notification, and evaluating the selection process. However, each step in the

selection process, from preliminary applicant reception and initial screening to

the hiring decision, is performed under legal, organizational, and

environmental constraints that protect the interests of both applicant and

organization.

Job Analysis and Design Information Systems

Tactical human resource information systems provide managers with support

for decisions that emphasize the allocation of resources. Within the human

resource management area, these decisions include recruitment decisions;

job analysis and design decisions, training and development decisions, and

employee compensation plan decisions.

113

Human resource information systems (HRIS) and specialized software help

automate job analysis analyze jobs and write job descriptions and job

specifications based on those analyses. Combine job analysis with job

evaluation and the pricing of organizational jobs.

The information inputs to the job analysis and design information system

include data from interviews with supervisors and workers and affirmative

action guidelines. Inputs also include information from sources external to the

firm, such as labor unions, competitors, and government from sources

external to the firm, such as labor unions, competitors, and government

agencies. The outputs of the job analysis information system are job

descriptions and job specifications. These outputs provide managers with the

basis for many tactical human resource decisions.

E-Recruitment

Internet is an increasingly popular way to recruit applicants, research

technologies and perform other essential functions in business. Delivering

human resource services online (eHR) supports more efficient collection,

storage, distribution, and exchange of data (Friesen, 2003). An intranet is a

type of network used by companies to share information to people within the

organization. An intranet connects people to people and people to information

and knowledge within the organization; it serves as an ―information hub‖ for

the entire organization. Most organizations set up intranets primarily for

http://www.mbaknol.com/human-resource-management/uses-of-job-analysis-in-human-resource-management-hrm/

114

employees, but they can extend to business partners and even customers

with appropriate security clearance (Byars & Rue, 2004). By making the move

to a HRIS system, Company is able to keep more accurate records as well as

better prepare for future growth.

The costs will be significantly reduced which is associated with sourcing

internal and external candidates when talent pool management is utilised

through an e-Recruitment system that maintains a skills framework of

previous applicants and staff, which makes position skills matching effortless.

Time to hire costs will reduced as e-Recruitment systems extend candidate

reach and provides higher quality candidates who are easier to identify

through online skills matching. The online screening tools will ensure HR does

not spend time on unsuitable candidates.

5.20 Corporate Communication (Internal Communication)

Corporate communication is a set of activities involved in managing and

orchestrating all internal and external communications aimed at creating

favorable point-of-view among stakeholders on which the company depends.

Corporate communication is the practice of enabling information and data

exchanges between internal and key external groups that have a direct

relationship with an enterprise. This practice allows the communication to be

provided from the standpoint of it with the employees, suppliers, investors and

partners.

5.21HR distance and isolation

115

The implementation of an HRIS can dramatically affect the relationship

between HR staff and employees. Employees used to working with an HR

professional face to face may find it challenging to use the computer to

complete tasks or answer questions. They may miss the ―high touch‖ feeling

of working with HR staff. As more HR content are available online and more

basic administration is pushed to employees to manage, the need for

personal contact between HR staff and employees is reduced. This increased

distance can make it more difficult for effective communication to occur and

can weaken the relationship between HR and employees. HR executives

should consider the impact of this ―distancing‖ and take measures to mitigate

it.

HRIS empowers the employee to control their own data, employee do not

have to interact to their HR Manager for updating their details such as their

qualification, experience. For taking the approval of leave employees send the

leave application form to the HRIS system, which is approve by their

departmental head and next by the HRD. Due to everything being through

HRIS there is less interaction between HR and the Employee which have

several negative effect on the organisation. The Human Resource department

needs to be more responsive to employee questions and concerns. In many

companies, the HR department is consider as the policymaking, policing arm

of management. In fact, in forward thinking HR departments, responsiveness

to employee needs is one of the cornerstones.

116

Employees want face-to-face communication time with both their supervisors

and executive management. This communication helps them feel recognized

and important. Moreover, yes, your time is full because you have a job, too.

However, a manager‘s main job is to support the success of all his or her

reporting employees. That is how the managers magnify their own success.

Distance and isolation raise low employee morale and poor productivity rate.

Chapter 6

117

Case Study of Macleods Pharmaceuticals Ltd.

Chapter 6

Introduction to the Company

Macleods Pharmaceuticals Limited was founded in 1986 and is based in

Mumbai, India. It also has presence in South East Asia, the Asia Pacific,

Africa, North America, EU and EEA, MENA, Latin America, and CIS countries.

Macleods Pharmaceuticals Limited, a pharmaceutical company, develops and

manufactures pharmaceutical products for various therapeutic diseases in

India. It offers dispersible, bi-layered, coated, uncoated, and enteric coated

tablets; hard and soft gelatin capsules; dry powder injections and syrups; and

granules and liquid orals. The company provides products in various

therapeutic groups, such as anti-infective, cardio-vascular, CNS, respiratory

inhalation, dermatology, oncology, and orthopedics; and anti-TB, asthma and

118

COPD, anti bacterial, NSAIDS, malaria, HIV, anti-arthritic, anti-osteoporotic,

gastroenterology, gynecology, diabetology, and CVS.

Macleods has enjoyed rapid growth in the recent years, growing at an

average growth rate of over 22% for the past 5 years.

Macleods with its experience spanning more than two decades has emerged

as a force to reckon with in global pharmaceutical market. With an asset of

more than 10,000 professionally qualified employees across the globe,

Macleods a multiple location organization, is based out of Mumbai, India.

With expertise in range of formulations ranging from tablets to sterile dosage

form and from inhalation to novel drug delivery system, Macleods is currently

ranked 10th (on mat basis source IMS) in Indian Pharmaceutical Industry and

is recognized as one of the fastest growing pharmaceutical company in India.

Pioneering efforts of Macleods in providing medications for both chronic and

acute therapy, with world- class state-of-the-art manufacturing facilities

approved by various regulatory authorities of many countries and well

equipped R&D, analytical and bioequivalence center audited by various

regulatory authorities makes Macleods truly a global pharmaceutical

company.

Product Portfolio

Macleod‘s product portfolio encompasses a wide spectrum of therapeutic

groups, ranging from:

119

• Anti-TB

• Asthma & COPD

• Anti bacterial

• NSAIDS

• Anti-arthritic

• Anti-osteoporotic,

• Gastroenterology,

• Gynaecology

• Diabetology and

• CVS products.

Population Frame

Organisation Macleod‘s Pharmaceutical Limited

Organisation Type Manufacturing

Company/Pharmaceutical Company

Total Employees 765

Distribution of target population

Department No of employees

Human Resouce Department 25

IT specialist handling HRIS 20

120

Table 11 – Shows the target population at Macleod‘s pharmaceuticals ltd

Chapter 7

Employees using HRIS 200

Total 245

121

Data analysis

Chapter 7

Data Analysis

7.1 Findings and discussions

The response rate was good among the Employees, and collected total 100

feedbacks.

Department No of employees approach

No of employees Responded

Response Rate %

HR 25 25 100

IT specialist handling HRIS

20 20 100

Employees using HRIS 70 55 78

122

Table 12: Response rate from the organisations

VARIABLES ANALYSES CODE

Figure13 – Variables code

JA – JOB ANALYSIS

ER- E- RECURTIMENT

LS – LABOUR SUPPLY

LD- LABOUR DEMAND

SP- SUCESSION PLANNING

CO – COPORATE COMMUNICATION

7.2 HRIS Recruitment subsystem

HRIS job analysis

HRIS job analysis process efficiency and effectiveness measured using three

factors JA1, JA2 AND JA3.

Descriptive Statistics: JA 1

Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3 Maximum

•JA1 , JA2, JA3

•ER1, ER2, ER3

HRIS RECURITMENT SUBSYSTEM

•LS1, LS2, LS3,

•LD1, LD2,LD3

•SP2 , SP2

HRIS HUMAN RESOURCE PLANNING SUBSYSTEM

•CO1, CO2 , CO3 HRIS COMMUNICATION

Total 115 100 86

123

JA 1 100 0 4.1700 0.0805 0.8047 2.0000 4.0000 4.0000 5.0000 5.0000

Descriptive Statistics: JA2 Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3 Maximum JA2 97 3 3.567 0.114 1.126 1.000 3.000 4.000 4.000 5.000

Descriptive Statistics: JA3 Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3 Maximum JA3 100 0 4.2100 0.0998 0.9979 1.0000 4.0000 4.0000 5.0000 5.0000

Table 13– Show the Descriptive data of the variable JA1, JA2, JA3

All the respondents have responded to all factors. Most respondents agree

with the factors, where mean indicate four.

124

Figure14: Summary Report for JA1

HRIS identifies unfilled positions accurately. The most favorable answer was

agreed with 45% of the total respondent.

1st Quartile 4.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

4.0103 4.3297

4.0000 4.0000

0.7066 0.9348

A-Squared 7.68

P-Value <0.005

Mean 4.1700

StDev 0.8047

Variance 0.6476

Skewness -0.794864

Kurtosis 0.262732

N 100

Minimum 2.0000

Anderson-Darling Normality Test

95% Confidence Interval for Mean

95% Confidence Interval for Median

95% Confidence Interval for StDev

5432

Median

Mean

4.304.254.204.154.104.054.00

95% Confidence Intervals

Summary Report for JA 1

Tally for Discrete Variables: JA 1

JA 1 Count

2 4

3 13

4 45

5 38

N= 100

JA1 represent -

Identification of unfilled positions accurately.

125

Figure15: Summary Report for JA2

Table 15 : Tally for Discrete Variables: JA2

JA2 Count

1 9

3 37

4 29

5 22

N= 97

*= 3

HRIS analyses each job description and its job specification. The most

favorable answer was neither agrees nor disagreed with 35% of the total

respondent.

1st Quartile 3.0000

Median 4.0000

3rd Quartile 4.0000

Maximum 5.0000

3.3400 3.7940

3.0000 4.0000

0.9872 1.3119

A-Squared 5.24

P-Value <0.005

Mean 3.5670

StDev 1.1265

Variance 1.2689

Skewness -0.683780

Kurtosis 0.267519

N 97

Minimum 1.0000





54321

Median

Mean

4.03.83.63.43.23.0


Summary Report for JA2

JA2 represent HRIS analyses each job description and its job specification

126

Figure 16: Summary Report for JA3

Table 16 Tally for Discrete Variables: JA3

JA3 Count

1 4

2 2

3 11

4 35

5 48

N= 100

HRIS evaluates the recruiting processes effectively. The most favorable

answer was strongly agreed with 48% of the total respondent.

1st Quartile 4.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

4.0120 4.4080

4.0000 5.0000

0.8762 1.1593

A-Squared 8.89

P-Value <0.005

Mean 4.2100

StDev 0.9979

Variance 0.9959

Skewness -1.55612

Kurtosis 2.47734

N 100

Minimum 1.0000





54321

Median

Mean

5.04.84.64.44.24.0


Summary Report for JA3

JA3 represent -

HRIS evaluates the recruiting processes effectively.

127

HRIS E- recruitment

HRIS E- recruitment efficiency and effectiveness measured using three

factors ER1, ER2, ER3.

Table 17 – Show the Descriptive data of the variable ER1, ER2, ER3

All the respondents have responded to all factors. Most respondents agree

with the factors, where mean indicate four.

Descriptive Statistics: ER1


ER1 100 0 4.2000 0.0876 0.8762 2.0000 4.0000 4.0000 5.0000 5.0000



ER2 100 0 4.2500 0.0833 0.8333 2.0000 4.0000 4.0000 5.0000 5.0000



ER3 100 0 4.1400 0.0853 0.8530 2.0000 4.0000 4.0000 5.0000 5.0000

128

Figure 17: Summary Report for ER1

Table 18 Tally for Discrete Variables: ER1

ER1 Count

2 4

3 18

4 32

5 46

N= 100

The most favorable answer was strongly agreed with 46% of the total

respondent.

1st Quartile 4.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

4.0261 4.3739

4.0000 5.0000

0.7693 1.0178

A-Squared 8.12

P-Value <0.005

Mean 4.2000

StDev 0.8762

Variance 0.7677

Skewness -0.772328

Kurtosis -0.362920

N 100

Minimum 2.0000





5432

Median

Mean

5.04.84.64.44.24.0


Summary Report for ER1

ER1 HRIS leverages employee‘s talent in the right place at the right time.

129


TABLE 19 : Tally for Discrete Variables: ER2

ER2 Count

2 4

3 13

4 37

5 46

N= 100


respondent.

1st Quartile 4.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

4.0846 4.4154

4.0000 5.0000

0.7317 0.9681

A-Squared 8.40

P-Value <0.005

Mean 4.2500

StDev 0.8333

Variance 0.6944

Skewness -0.928386

Kurtosis 0.221744

N 100

Minimum 2.0000





5432

Median

Mean

5.04.84.64.44.24.0



ER2 represent

HRIS help to reduce recruiting costs

130


Table 20 : Tally for Discrete Variables: ER3

ER3 Count

2 4

3 18

4 38

5 40

N= 100


respondent.

1st Quartile 4.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

3.9707 4.3093

4.0000 4.2577

0.7490 0.9910

A-Squared 7.17

P-Value <0.005

Mean 4.1400

StDev 0.8530

Variance 0.7277

Skewness -0.673008

Kurtosis -0.332855

N 100

Minimum 2.0000





5432

Median

Mean

4.34.24.14.0



ER3 HRIS eliminates unsuitable applicants early and focus on promising candidates.

131

7.3 Human Resource Planning subsystem

HRIS labour demand and supply analysis

HRIS labour demand and supply analysis process effectiveness was

measured using six factors namely LS1, LS2, LS3, LD1, LD2.LD3, SP1, SP2.

All the factors were responded by the respondent.

Descriptive Statistics: LS1


LS1 99 1 4.4646 0.0736 0.7328 2.0000 4.0000 5.0000 5.0000 5.0000



LS2 96 4 3.656 0.131 1.280 1.000 3.000 4.000 5.000 5.000



LS3 96 4 3.323 0.149 1.462 1.000 2.000 4.000 5.000 5.000

Descriptive Statistics: LD1


LD1 100 0 4.2700 0.0839 0.8391 2.0000 4.0000 4.0000 5.0000 5.0000



LD2 98 2 3.724 0.121 1.199 1.000 3.000 4.000 5.000 5.000



132

Table 21: Descriptive Statistics

Most respondents agree with the factors where median indicate 4 (four)

LD3 100 0 4.1700 0.0779 0.7792 2.0000 4.0000 4.0000 5.0000 5.0000

Descriptive Statistics: SP1 Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3 Maximum SP1 100 0 4.0500 0.0914 0.9143 2.0000 4.0000 4.0000 5.0000 5.0000

Descriptive Statistics: SP2 Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3 Maximum SP2 100 0 4.2700 0.0694 0.6942 2.0000 4.0000 4.0000 5.0000 5.0000

133

Figure 20: Summary Report for LS1


respondent.

1st Quartile 4.0000

Median 5.0000

3rd Quartile 5.0000

Maximum 5.0000

4.3185 4.6108

4.2870 5.0000

0.6430 0.8520

A-Squared 12.47

P-Value <0.005

Mean 4.4646

StDev 0.7328

Variance 0.5370

Skewness -1.14565

Kurtosis 0.42979

N 99

Minimum 2.0000





5432

Median

Mean

5.04.84.64.44.2


Summary Report for LS1

LS1 represent -

HRIS forecasts supply of human resources.

Table 22 Tally for Discrete Variables: LS1

LS1 Count

2 1

3 11

4 28

5 59

N= 99

*= 1

134


LS2 represent -

HRIS estimates future human resources requirement of the organisation.

Table 22 : Tally for Discrete Variables: LD2

LD2 Count

1 6

2 10

3 21

4 29

5 32

N= 98

*= 2


respondent.

1st Quartile 3.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

3.3969 3.9156

3.0000 4.0000

1.1210 1.4920

A-Squared 4.63

P-Value <0.005

Mean 3.6563

StDev 1.2800

Variance 1.6385

Skewness -0.618060

Kurtosis -0.651702

N 96

Minimum 1.0000





54321

Median

Mean

4.03.83.63.43.23.0



135


LS3 represent

HRIS ensures organization has right kind and numbers of employees at right place at right time.( EMPLOYEE PLACEMENT )

Table23 Tally for Discrete Variables: LS3

LS3 Count

1 18

2 10

3 18

4 23

5 27

N= 96

*= 4


respondent.

1st Quartile 2.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

3.0267 3.6191

3.0000 4.0000

1.2802 1.7038

A-Squared 4.48

P-Value <0.005

Mean 3.3229

StDev 1.4618

Variance 2.1367

Skewness -0.39540

Kurtosis -1.19788

N 96

Minimum 1.0000





54321

Median

Mean

4.03.83.63.43.23.0



136

Figure 23: Summary Report for LD1


LD1 Count

2 4

3 13

4 35

5 48

N= 100


respondent.

1st Quartile 4.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

4.1035 4.4365

4.0000 5.0000

0.7368 0.9748

A-Squared 8.76

P-Value <0.005

Mean 4.2700

StDev 0.8391

Variance 0.7041

Skewness -0.966987

Kurtosis 0.236971

N 100

Minimum 2.0000





5432

Median

Mean

5.04.84.64.44.24.0


Summary Report for LD1

LD1 represent - HRIS manages internal information within the organisation.

137


LD2 represent HRIS manages external information outside the organisation.


LD2 Count

1 6

2 10

3 21

4 29

5 32

N= 98

*= 2


respondent.

1st Quartile 3.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

3.4840 3.9650

4.0000 4.0000

1.0518 1.3957

A-Squared 4.69

P-Value <0.005

Mean 3.7245

StDev 1.1995

Variance 1.4388

Skewness -0.692736

Kurtosis -0.394783

N 98

Minimum 1.0000





54321

Median

Mean

4.03.93.83.73.63.5



138


Table 26: Tally for Discrete Variables: LD3

LD3 Count

2 4

3 11

4 49

5 36

N= 100

The most favorable answer was agreed with 49% of the total respondent.

1st Quartile 4.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

4.0154 4.3246

4.0000 4.0000

0.6842 0.9052

A-Squared 8.13

P-Value <0.005

Mean 4.1700

StDev 0.7792

Variance 0.6072

Skewness -0.831068

Kurtosis 0.587580

N 100

Minimum 2.0000





5432

Median

Mean

4.304.254.204.154.104.054.00



LD3 represent -

HRIS constantly analyses and matches the demand for human resources.

139

Figure 26: Summary Report for SP1

SP1 represent - HRIS identifies a logical progression path and the

steps required for advancements.


1st Quartile 4.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

3.8686 4.2314

4.0000 4.0000

0.8027 1.0621

A-Squared 9.93

P-Value <0.005

Mean 4.0500

StDev 0.9143

Variance 0.8359

Skewness -1.07126

Kurtosis 0.61881

N 100

Minimum 2.0000





5432

Median

Mean

4.24.14.03.9


Summary Report for SP1

Table 27: Tally for Discrete Variables: SP1

SP1 Count

2 12

3 3

4 53

5 32

N= 100

140

Figure 27: Summary Report for SP2

SP2 represent - Future supply and demand of labor can be forecast using

What-If analysis function of HRIS.

Table 28 : Tally for Discrete Variables: SP2

SP2 Count

2 2

3 8

4 51

5 39

N= 100


1st Quartile 4.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

4.1323 4.4077

4.0000 4.0000

0.6095 0.8064

A-Squared 9.59

P-Value <0.005

Mean 4.2700

StDev 0.6942

Variance 0.4819

Skewness -0.789123

Kurtosis 0.846925

N 100

Minimum 2.0000





5432

Median

Mean

4.44.34.24.14.0


Summary Report for SP2

141

7.4 Corporate Communication (internal) subsystem

HRIS Communication

HRIS communication analysis effectiveness measured using three CO1, CO2

and CO3 factors.

Descriptive Statistics: CO1


CO1 100 0 4.3700 0.0646 0.6460 2.0000 4.0000 4.0000 5.0000 5.0000



CO2 100 0 3.160 0.116 1.161 1.000 2.000 3.000 4.000 5.000



CO3 100 0 3.140 0.111 1.110 1.000 2.000 3.000 4.000 5.000

Table 29: Descriptive Statistics

All the respondents have responded to three factors. Most respondents

neither agree nor disagree with the factors where mean indicate three (three).

142

Figure 28: Summary Report for co1

Table 30 : Tally for Discrete Variables: CO1

CO1 Count

2 2

3 3

4 51

5 44

N= 100


1st Quartile 4.0000

Median 4.0000

3rd Quartile 5.0000

Maximum 5.0000

4.2418 4.4982

4.0000 5.0000

0.5672 0.7504

A-Squared 11.44

P-Value <0.005

Mean 4.3700

StDev 0.6460

Variance 0.4173

Skewness -0.99114

Kurtosis 1.93376

N 100

Minimum 2.0000





5432

Median

Mean

5.04.84.64.44.24.0


Summary Report for CO1

CO 1 represent -

HRIS create self service in the organisation

143

Figure 29: Summary Report for CO2


CO2 Count

1 10

2 18

3 30

4 30

5 12

N= 100


1st Quartile 2.0000

Median 3.0000

3rd Quartile 4.0000

Maximum 5.0000

2.9296 3.3904

3.0000 4.0000

1.0193 1.3487

A-Squared 3.37

P-Value <0.005

Mean 3.1600

StDev 1.1610

Variance 1.3479

Skewness -0.240153

Kurtosis -0.713811

N 100

Minimum 1.0000





54321

Median

Mean

4.03.83.63.43.23.0



CO2 HRIS create platform for Open Communication

144

Figure 30: Summary Report for co3


CO2 Count

1 10

2 16

3 32

4 30

5 12

N= 100

The most favorable answer was agreed with 30 % and 30 % neither agrees

nor disagrees of the total respondent.

1st Quartile 2.0000

Median 3.0000

3rd Quartile 4.0000

Maximum 5.0000

2.9197 3.3603

3.0000 4.0000

0.9748 1.2898

A-Squared 4.66

P-Value <0.005

Mean 3.1400

StDev 1.1103

Variance 1.2327

Skewness -0.418192

Kurtosis -0.658628

N 100

Minimum 1.0000





54321

Median

Mean

4.03.83.63.43.23.0



CO3 HRIS perceive the effectiveness and integrity of current communication culture

145

7.5 Summary of Descriptive statistics

Descriptive Statistics: JA 1, JA2, JA3, LS1, LS2, LS3, LD1, LD2, LD3, CO1, CO2, ER2, ER1, ER3


JA 1 100 0 4.1700 0.0805 0.8047 2.0000 4.0000 4.0000 5.0000 5.0000

JA2 97 3 3.567 0.114 1.126 1.000 3.000 4.000 4.000 5.000

JA3 100 0 4.2100 0.0998 0.9979 1.0000 4.0000 4.0000 5.0000 5.0000

LS1 99 1 4.4646 0.0736 0.7328 2.0000 4.0000 5.0000 5.0000 5.0000

LS2 96 4 3.656 0.131 1.280 1.000 3.000 4.000 5.000 5.000

LS3 96 4 3.323 0.149 1.462 1.000 2.000 4.000 5.000 5.000

LD1 100 0 4.2700 0.0839 0.8391 2.0000 4.0000 4.0000 5.0000 5.0000

LD2 98 2 3.724 0.121 1.199 1.000 3.000 4.000 5.000 5.000

LD3 100 0 4.1700 0.0779 0.7792 2.0000 4.0000 4.0000 5.0000 5.0000

CO1 100 0 4.3700 0.0646 0.6460 2.0000 4.0000 4.0000 5.0000 5.0000

CO2 100 0 3.160 0.116 1.161 1.000 2.000 3.000 4.000 5.000

146

ER2 100 0 4.2500 0.0833 0.8333 2.0000 4.0000 4.0000 5.0000 5.0000

ER1 100 0 4.2000 0.0876 0.8762 2.0000 4.0000 4.0000 5.0000 5.0000

ER3 100 0 4.1400 0.0853 0.8530 2.0000 4.0000 4.0000 5.0000 5.0000

SP1 100 0 4.0500 0.0914 0.9143 2.0000 4.0000 4.0000 5.0000 5.0000

SP2 100 0 4.2700 0.0694 0.6942 2.0000 4.0000 4.0000 5.0000 5.0000

147

7.6 DATA RECORDED

The data of 100 respondents were collected. Following is the summary of the

count on the likert scale of the variables.

Table 34: Tally for Discrete Variables: JA 1, JA2, JA3, LS1, LS2, LS3, LD1,

LD2,...

Column1


JA 1 100 0 4.1700 0.0805 0.8047 2.0000 4.0000 4.0000 5.0000 5.0000

JA2 97 3 3.567 0.114 1.126 1.000 3.000 4.000 4.000 5.000

JA3 100 0 4.2100 0.0998 0.9979 1.0000 4.0000 4.0000 5.0000 5.0000

LS1 99 1 4.4646 0.0736 0.7328 2.0000 4.0000 5.0000 5.0000 5.0000

LS2 96 4 3.656 0.131 1.280 1.000 3.000 4.000 5.000 5.000

LS3 96 4 3.323 0.149 1.462 1.000 2.000 4.000 5.000 5.000

LD1 100 0 4.2700 0.0839 0.8391 2.0000 4.0000 4.0000 5.0000 5.0000

LD2 98 2 3.724 0.121 1.199 1.000 3.000 4.000 5.000 5.000

LD3 100 0 4.1700 0.0779 0.7792 2.0000 4.0000 4.0000 5.0000 5.0000

CO1 100 0 4.3700 0.0646 0.6460 2.0000 4.0000 4.0000 5.0000 5.0000

CO2 100 0 3.160 0.116 1.161 1.000 2.000 3.000 4.000 5.000

ER2 100 0 4.2500 0.0833 0.8333 2.0000 4.0000 4.0000 5.0000 5.0000

ER1 100 0 4.2000 0.0876 0.8762 2.0000 4.0000 4.0000 5.0000 5.0000

148

ER3 100 0 4.1400 0.0853 0.8530 2.0000 4.0000 4.0000 5.0000 5.0000

SP1 100 0 4.0500 0.0914 0.9143 2.0000 4.0000 4.0000 5.0000 5.0000

SP2 100 0 4.2700 0.0694 0.6942 2.0000 4.0000 4.0000 5.0000 5.0000

149

5.7 HYPOTHESIS TESTING

5.7 a) Hypothesis Testing for JA1,JA2,JA3,ER1,ER2,ER3..

1. Use of HRIS job analysis process in an organisation improves the efficiency and effectiveness of HR planning.

H01: Higher utilisation of HRIS job analysis process in an organisation does not improve the efficiency and effectiveness of HR planning.

H11: Higher utilisation of HRIS job analysis process in an organisation improves the efficiency and effectiveness of HR planning.

150

A single sample t-test was conducted using a hypothesized mean value of 4. This

was because, respondents were asked to use a scale 1 to 5 in responding to the

question. The aim here was to compare the sample mean with the hypothesized

mean for probability estimation, that the sample mean is different by chance or

random occurrence. The t-test revealed that JA1 variable for this hypothesis had

a mean value of 4.17. It is concluded that the mean is greater than 4 at the 0.05

level of significance.CI: Quantifies the uncertainty associated with estimating the

mean from sample data. 90% confident that the true mean is between 4.0364

and 4.3036, and 95% confident that it is greater than 4.0364.

151

152






a mean value of 3.5. It is conclude that the mean is greater than 3 at the 0.05




153

154






a mean value of 4.2. Test: It is concluded that the mean is greater than 4 at the

0.05 level of significance.CI: Quantifies the uncertainty associated with estimating

the mean from sample data. 90% confident that the true mean is between 4.0443


155

156

A single sample t-test was conducted using a hypothesized mean value of 4.

This was because, respondents were asked to use a scale 1 to 5 in

responding to the question. The aim here was to compare the sample mean

with the hypothesized mean for probability estimation, that the sample mean

is different by chance or random occurrence. The t-test revealed that ER1

variable for this hypothesis had a mean value of 4.2. It is conclude that the

mean is greater than 4 at the 0.05 level of significance.CI: Quantifies the

uncertainty associated with estimating the mean from sample data. You can

be 90% confident that the true mean is between 4.0545 and 4.3455, and 95%

confident that it is greater than 4.0545.

157

158





random occurrence. The t-test revealed that ER2 variable for this hypothesis had

a mean value of 4.25.It is concluded that the mean is greater than 4 at the 0.05




159

160





random occurrence. The t-test revealed that ER3 variable for this hypothesis had

a mean value of 4.14. There is not enough evidence to conclude that the mean is

greater than 4 at the 0.05 level of significance.CI: Quantifies the uncertainty

associated with estimating the mean from sample data. 90% confident that the

true mean is between 3.9984 and 4.2816, and 95% confident that it is greater

than 3.9984.

161

From the above t- test, hypothesis test, which was, conducted on the six

variables JA1, JA2, JA3, ER1, ER2, ER3 we conclude that

H01: NULL Hypothesis is rejected; higher utilisation of HRIS job analysis

process in an organisation does not improve the efficiency and effectiveness

of HR planning. The alternative hypothesis is accepted. H11: Higher utilisation

of HRIS job analysis process in an organisation improves the efficiency and

effectiveness of HR planning. Mean is greater than 4; 4 indicate agreed on

likert scale which indicates that Job analysis have significant relationship with

effectiveness and efficiency in the organisation.

162

5.7 b) HYPOTHESIS FOR LS1...LS3, LD1...LD3, SP1...SP2...

The greater utilisation of HRIS Forecasting Demand and Supply analysis in an organisation increases the efficiency and effectiveness of HR planning.

H02: The greater utilisation of HRIS Forecasting Demand and Supply analysis in an organisation does not increase the efficiency and effectiveness of HR planning.

H12: The greater utilisation of HRIS Forecasting Demand and Supply analysis in an organisation increases the efficiency and effectiveness of HR planning.

163





random occurrence. The t-test revealed that LS1 variable for this hypothesis had

a mean value of 4.4. You can conclude that the mean is greater than 4 at the

0.05 level of significance.

CI: Quantifies the uncertainty associated with estimating the mean from sample

data. 90% confident that the true mean is between 4.3423 and 4.5869, and 95%


164

165





random occurrence. The t-test revealed that LS2 variable for this hypothesis had





166

167





random occurrence. The t-test revealed that LD1 variable for this hypothesis had


level of significance.




168

169







level of significance.




170

171










172

173






a mean value of 4.05.There is not enough evidence to conclude that the mean

is greater than 4 at the 0.05 level of significance. Quantifies the uncertainty

associated with estimating the mean from sample data. 90% confident that

the true mean is between 3.8982 and 4.2018, and 95% confident that it is

greater than 3.8982.

174

175






a mean value of 4.27.It is concluded that the mean is greater than 4 at the 0.05

level of significance. Quantifies the uncertainty associated with estimating the



176

H02: The greater utilization of HRIS Forecasting Demand and Supply analysis

in an organization does not increase the efficiency and effectiveness of HR

planning.

H12: The greater utilization of HRIS Forecasting Demand and Supply analysis

in an organization increases the efficiency and effectiveness of HR planning.



H13: Succession planning of HRIS increases the efficiency and effectiveness

of HR planning of an organisation.

The above Hypothesis is tested through t- test of LS1...LS3, LD1...LD3,

SP1...SP2; we conclude that

NULL Hypothesis is rejected and the alternative hypothesis is accepted. Mean

is greater than 4; 4 indicate agreed on likert scale which indicates that human

resource have significant relationship with effectiveness and efficiency in the

organisation.

177

7.7. c) Hypothesis testing of the variables C01, C02

H04: HRIS implementation is not the factor for effective communication in the

organisation

H14: HRIS implementation is the factor for effective communication in the

organisation.

178





random occurrence. The t-test revealed that CO1 variable for this hypothesis had





179

180






a mean value of 3.16. There is not enough evidence to conclude that the mean

is greater than 4 at the 0.05 level of significance.CI: Quantifies the uncertainty

associated with estimating the mean from sample data. 90% confident that the

true mean is between 2.9672 and 3.355, and 95% confident that it is greater than

4.0406.

181

H04: HRIS implementation is not the factor for effective communication in the

organisation

H14: HRIS implementation is the factor for effective communication in the

organisation.

From the above t- test hypothesis test, we conclude that

NULL Hypothesis is rejected and the alternative hypothesis is accepted. Mean

is greater than 4; 4 indicate agreed on likert scale which indicates that

Communication (internal) have significant relationship with effectiveness and

efficiency in the organisation.

182

Comparative use of HRIS application in the organization

Figure 46: Use of HRIS application The study was done through questionnaire which was given to the sample

selected at Macleod‘s pharmaceutical ltd. The above pie chart shows the

comparative use of the three HRIS application which was selected for the

study. The best use is made from Human Resource Planning Application and

The Recruitment application of HRIS. Comparing to it communication

application is not use effectively and efficiently.

40%

40%

20%

Use of application in the organisation

HRP

RECURITMENT

CORPORATE COMMUNICATION

183

Figure 47: Using related to HR office hours

From the Questionnaire we have created this pie diagram which shows the

percentage of frequency of the usage of the HRIS by the employee of the

organization. 64% of the employee frequently uses the HRIS during office

hours.25% use no more than once every month and 11% have never used

the system which shows the system is not effectively use in the organization.

64%

25%

11%

Using related to HR during office hours

No more than several time a week

No more than once every month

Never use

184

Chapter 8

Findings Recommendations

Limitations of the Study

185

Chapter 8

Findings

This reduced data was further analyzed by applying t- test. Above graphical

analysis aim was to compare the sample mean with the hypothesized mean for

probability estimation, that the sample mean is different by chance or random

occurrence. Summary tables show the means and grand means of five factors

those were helpful to explain the direction and extent of difference of

perceptions of managers/employees in the organization.

Pattern of loadings showed that the respondents had given maximum

importance to the ―applications of HRIS in Human Resource Planning‖

followed by ―applications of HRIS in Recruitment management‖. The factor

named ―application of HRIS in Corporate Communication‖ was given the least

importance. Overall, respondents felt that applications of HRIS was highest in

factor ―Labour Supply‖ (x=4.46), followed by ―Job analysis‖ (x=4.31).

Past studies also revealed that the most frequent application of HRIS was in

employee records (Groe et al., 1996; Kinnie and Arthurs, 1996; Kovach and

Cathcart, 1999; Lin, 1997; Ngai and Wat, 2006;Ngai et al., 2008; Teo et al.,

2001), and next in pay roll service (Ball, 2001; Kinnie and Arthurs, 1996; Lin,

1997; Ngai and Wat, 2006; Teo et al., 2001). Further explained that HRIS was

also applied in ―corporate communication‖ (x=3.16).

186

Similar results were also found by other studies (CedarCrestone, 2006;

Richard-Carpenter, 1993; Ngai and Wat, 2006). In a recent study conducted

on applications of HRIS also confirmed that all these factors were used

moderately in organizations operating in India (Saharan and Jafri, 2012.

Recommendations

Research findings clearly show that HR executives are well aware that

they can increase the efficiency of HR planning through HRIS, saving

time and cost. However, findings do not support the premise that HRIS

increases the efficiency of HR planning other than in functional work

such as job analysis.

Organisations should identify the strategic value and competitive

advantage that they can gain through HRIS in HR planning. Strategic

planning linked with the HRIS can make the organization efficient for

merger, acquisition and takeover.

An effective HRIS solution coupled with a thoughtful succession

planning policy can rapidly boost your organizational performance

HRIS outcomes can be applied wherever possible as deemed fit by the

HR professionals, going by their experiences.

E-recruiting is not used fully since they have more faith in traditional

methods of recruiting.

187

Corporate Communication through HRIS could build up strong

organization culture, which has been least bother in the organization.

Human Resource Information System will help the organization in

building corporate image.

Limitations of the Study

The foremost research limitation is on the subject of the industry perspective.

The research study was restricted to those respondents who wish to respond

to the questionnaire; therefore future research might focus on a generously

proportioned sample of respondents, in order to validate the results of the

study.

Other limitation is the static nature of the study, that is, the study is based on

the existing scenario of the level and usage of HRIS; but HRIS can be

enhanced in future. Consequently, same research can be conducted in future

to know whether HRIS is improving with changing time or not.

Other limitation is that the questionnaire survey may endure with the reaction

bias.

188

Glossary

1. correlation analysis

A measure of the relationship or association between two continuous numeric

variables that indicates both the direction and degree to which they co-vary

with one another from case to case, without implying that one is causing the

other.

2. cross sectional study

Cross-sectional studies form a class of research methods that involve

observation of all of a population, or a representative subset, at one specific

point in time. .

3. Deductive Reasoning

Deductive reasoning, also deductive logic or logical deduction or, informally,

"top-down" logic, is the process of reasoning from one or more general

statements (premises) to reach a logically certain conclusion.

Deductive reasoning links premises with conclusions. If all premises are true,

the terms are clear, and the rules of deductive logic are followed, then the

conclusion reached is necessarily true.

189

4. Empirical research

Empirical research is a way of gaining knowledge by means of direct and

indirect observation or experience. Empirical evidence (the record of one's

direct observations or experiences) can be analyzed quantitatively or

qualitatively. Through quantifying the evidence or making sense of it in

qualitative form, a researcher can answer empirical questions, which should

be clearly defined and answerable with the evidence collected (usually called

data)

5. Effectiveness

The extent to which goals have been met.

6. Efficiency

The degree to which operations are done in an economical manner.

7. HRIS

A Human Resources Management System (HRMS) or Human Resources

Information System (HRIS), refers to the systems and processes at the

intersection between human resource management (HRM) and information

technology

8. Hypothesis

Hypothesis is propositions which can be put to test determine the validity.

Hypothesis is a suggested answer to the problem. It is an explanation needs

http://en.wikipedia.org/wiki/Human_resource_management

http://en.wikipedia.org/wiki/Information_technology



190

to be establishes before it can be accepted. If the hypothesis does not

provide approximate solution some alternative hypothesis must be

formulated. Hypothesis is highly useful although it may not be always

necessary.

9. Job Analysis

Job Analysis is a systematic exploration of the activities within a job. It

defines and documents the duties, responsibilities, and accountabilities of a

job and the conditions under which a job is performed

10. Job design

Job design is how a position and its tasks are organized.

11. Null Hypothesis and Alternate hypothesis

Null hypothesis represent a statement to be used to perform a statistical test

to prove to or disapprove the statement.

12. Probability sampling design

When elements in the population have a known chance of being chosen as

subjects in the sample, we resort to a probability sampling design (Sekaran,

2003).

13. Sampling

191

Sampling is a process of selecting certain items which are considered by the

researcher as true representatives of the population considered for the

research study.

14. Quota Sampling

Quota sampling involves the fication of certain quota which has to be fulfilled

by the interviewrs. It is best example of convenience sampling. Here,

research is given a quota of respondents with specific characteristic for

interview or information collection .Quota sampling is exposed to errors like

interview‘s preference, prejudice and his desire to simplify errors.

15. A longitudinal study

A correlational research study that involves repeated observations of the

same variables over long periods of time — often many decades. It is a type

of observational study.

16. MIS

A management information system (MIS) provides information that

organizations require to manage themselves efficiently and effectively.

17. Population

Population refers to the entire group of people, events, or things of interest

that the researcher wishes to investigate (Sekaran, 2003).

http://en.wikipedia.org/wiki/Observational_study

192

18. Qualitative and quantitative method

In new or underdeveloped areas, it is common to apply qualitative methods

in a preliminary stage, thus enabling the researcher to develop a conceptual

framework, to generate hypothesis, or to establish the necessary tools

(particularly instruments for measurement) for the quantitative study (Morgan

and Smircich, 1980).

19. Questionnaire

A questionnaire is a method for collecting primary data in which a sample of

respondents are asked a list of carefully structured questions chosen after

considerable testing, with a view to eliciting reliable responses (Collis and

Hussey, 2009).

20. Recruitment

Recruitment is the process of searching for prospective employees and

stimulating them to apply for the job in the organisation (Pattanayak, 2009).

21. A sample

Refers to a value or set of values at a point in time and/or space.

22. Succession planning

It is a process for identifying and developing internal people with the potential

to fill key business leadership positions in the company. Succession planning

http://en.wikipedia.org/wiki/Employee

http://en.wikipedia.org/wiki/Company

193

increases the availability of experienced and capable employees that are

prepared to assume these roles as they become available.

Questionnaire

The purpose of this questionnaire is to obtain your views and opinions

on the role of HRIS (Human Resource Information System) in HR

Planning. Please select the response that you think is the most

appropriate to each statement

Organization:

Department Name:

Your Name

Date(s) of Assessment:

Using Computer related to HR during office hours

1 No more than several time a week

2 No more than once every month

194

3 Never use

PART A - HRIS Role in Recruitment

Statements

S

tro

ng

ly A

gre

e

Ag

ree

Neit

he

r A

gre

e n

or

Dis

ag

ree

Dis

ag

ree

Str

on

gly

Dis

ag

ree

Rem

ark

s

1) HRIS identifies unfilled positions

accurately.

2) HRIS help to reduce recruiting costs

3) HRIS evaluates the recruiting

processes effectively.

4) HRIS performs comprehensive

reporting and tracking of applicants

efficiently.

5) HRIS analyses each job position and its

job title in an organisation.

195

6) HRIS leverages employee‗s talent in

the right place at the right time.

7) HRIS maintains relationship with

individuals who register in a talent

warehouse.

8) HRIS eliminates unsuitable applicants

early and focuses on promising

candidates.

9) HRIS create ideal job description and

job specification

10) Organisation uses HRIS recruitment

subsystem at an optimum level

PART B - HRIS Role in HRP

Statements

Str

on

gly

Ag

ree

Ag

ree

N

eit

he

r A

gre

e

no

r D

isag

ree

Dis

ag

ree

Str

on

gly

D

isag

ree

Rem

ark

s

1. HRIS forecasts supply of human

resources.

2. HRIS constantly analyses and

matches the demand for human

resources.

3. HRIS manages internal

information within the organisation.

196

4. HRIS manages external

information outside the

organisation.

5. HRIS estimates future human

resources requirement of the

organisation.

6. HRIS identifies a logical

progression path and the steps

required for advancements.

7. Future supply and demand of labour can be forecast using What-If analysis function of HRIS.

8. Role of HRIS aligns with the

organisations HR Strategy.

9. HRIS ensures orgainsation has

right kind and numbers of

employees at right place at right

time.

10. HRIS have improved the

Accuracy of planning.

PART C - HRIS Role Corporate Communication - Internal Communication

Statements

Str

on

gly

Ag

ree

Ag

ree

N

eit

he

r A

gre

e n

or

Dis

ag

ree

Dis

ag

ree

Str

on

gly

Dis

ag

ree

Rem

ark

s

1. HRIS create environment of open communication between employees and management?

197

2. HRIS perceive the effectiveness and integrity of current communication culture

3. Employee submit feedback and suggested improvements to the HRIS

4. Automated leave management system help in smooth function of leave management

5. HRIS salary management system help in smooth function of payroll management

6. Salary slips can be generated from the HRIS of individual employee.

7. Experience letter and personal data can be generated from HRIS

8. HRIS create self service in the organization.

9 HRIS make employee aware of the new joined , Retirement , birthday that create friendly environment

10 System being self- service there has been very few interaction between HR and the Employee

198

BIBLOGRAPHY

1. Agresti, A. (1984).Analysis of ordinal categorical data.

2. Aktas, A. Z. (1987). Structured analysis and design of information

systems. Englewood Cliffs, NJ: Prentice Hall.

3. Beatty, R. W., Huselid, M. A., & Schneier, C. E. (2003). New HR metrics:

Scoring on the business scorecard. Organizational Dynamics, 32(2), 107–

121.

4. Becker, B. E., & Huselid, M. A. (2006). Strategic human resource

management: Where do we go from here? Journal of Management, 32(6),

898–925.

5. Becker, B. E., Huselid, M. A., & Ulrich, D. (2001). The HR scorecard:

Linking people, strategy, and performance. Boston: Harvard Business

School Press.

199

6. Beckers, A. M., & Bsat, M. Z. (2002). A DSS classification model for

research in human resource information systems. Information Systems

Management, 19(3), 41–50.

7. Bussler, L., & Davis, E. (2001/2002). Information systems: The quiet

revolution in human resource management. Journal of Computer

Information Systems, 42(2), 17–20.

8. Bulmash. HRM. McGraw-Hill .

9. Cascio, W. F. (1984). Costing human resources: The financial impact of

behavior in organizations. Boston: PWS-Kent.


behavior in organizations (3rd ed.). Boston: PWS-Kent.


behavior in organizations (4th ed.). Cincinnati, OH: South-Western

College.

12. CIPD "People Management and Technology: Progress and Potential,"

London: Chartered Institute of Personnel and Development, 2005.

13. CIPD "Reflections on Talent Management," London: Chartered Institute of

Personnel and Development, 2006a.

14. CIPD "Talent Management: Understanding the Dimensions," London:

Chartered Institute of Personnel and Development, 2006.

15. CIPD "Talent Management," London: Chartered Institute of Personnel and

Development, 2007.

200

16. CIPD "Talent Management: an overview," London: Chartered Institute of

Personnel and Development, 2008.

17. Hendrickson, A. R. (2003). Human resource information systems:. Journal

of Labor Reaesrch , 24,3,381-394.

18. Tannenbaum, S. I. (1990). HRIS information : User group implication.

Journal of Systems Management , 41,1,27-32,36.

19. O‗Brien, James A. and Marakas, George M. (2008a) Introduction to

Information System, 8th edition, The McGraw-Hill Companies.

20. Rampton, Lan J. (1999) Human Resources Management Systems: A

Practical Approach, 2nd edition, Carswell.

21. Rozakis, Laurie (2007) Schaum‗s Quick Guide to Writing Great Research

Papers, 2nd edition, New Delhi, The McGraw-Hall Companies.

22. Scott Snell ,George Bohlander . (2007). Managing Human Resources.

usa: THOMAS HIGHER EDUCATION.

23. Utoronto (2009). Advice on Academic Writing, [online], Available from

www.writing.utoronto.ca [Accessed on 10th January 2010].

24. Mohan Thite, M. J. (2009). Evolution of Human Resource Management

and Human Resource Information Systems -The Role of Information

Technology.

201

25. Hilkka Poutanen (2010), ―Developing the role of human resource

information systems for the activities of good leadership‖, [online]

26. Roberts, B. (1999), ―Calculating return on investment for HRIS‖, HR

Magazine, Vol. 44 No. 13, pp 122–127.

27. Milton Mayfield, Jacky Mayfield and Steve Lunce (2003), ―HRIS: A review

and model development‖, ACR, Vol. 11 No. 1, pp 139-150.

28. Ngai, E.W.T. and Wat F.K.T. (2006) Human resource information systems:

a review and empirical analysis. Human Resource Information Systems,

Vol. 35 Issue 3, pp 297-314.

29. DeSanctis, Gerardlne (1986), ―Human Resource Information Systems: A

Current Assessment‖, Human Resource Systems, pp 15-27.

30. Saunders, M., Lewis, Philip and Thornhill, Adrian (2003) Research

Methods for Business Students, 3rd Edition, Pearson Education : South

Asia.

31. Selden,Sally Coleman., Jacobson, Willow., Ammar, Salwa H. and Wright,

Ronald H. (2000) A New Approach to Assessing Performance of State

Human Resource Management Systems: A Multi-Level Fuzzy Rule-Based

System. Public Personnel Administration. 20, 58-74. Full-text [online].

SAGE [Accessed on 13th December 2010].

32. Sekaran, Uma (2003) Research Methods for Business, A skill Building

Approach, 4th edition, John Wiley : India.

202

33. Udani Chathurika Wickramaratna (2009), ―The Role Of Human Resource

Information Systems in Human Resource planning in Private Sector

Organisationin Sri Lanka‖

Documents

A Study of the Effectiveness of Human Resource Information …dypatil.edu/schools/management/wp-content/uploads/2015/11... · 2015. 11. 19. · Mumbai Department of Business Management