Human Resource Information System

WHAT IS HRIS?

• HRIS is a systematic way of storing data and information for each employee to aid planning, decision making, and submitting of returns and reports to the external agency.

• The application of computers to the employee-related record keeping and reporting, and management decision making

WHAT IS HRIS?

• A set of interrelated components working together to support the functions of the HR function

• Primary function:– Documenting the employment relation in all its

complexity• Basic technology:– Storing, retrieving and distributing information

PURPOSE

• Storing of data for future reference• Providing a basis for all HR functions• Meeting daily transactional requirements• Supply data to statutory agencies

IMPORTANCE OF HRIS

• Strategy• Competitiveness• People• HRM

EVOLUTION OF INFORMATION SYSTEMS

• Transaction Processing (i.e. payroll)• Management Information Systems (i.e. daily

and monthly absenteeism summary)• Decision Support Systems (i.e. How many

employees should we hire?)• Expert Systems

DATA vs. INFORMATION

• Data – “Just the facts” > raw facts• Information – data that has been transformed

into a more useful or meaningful form

ALL COMPUTER-BASED INFO SYSTEMS(HRIS INCLUDED)

CONSIST OF:• Hardware• Software• Databases• Telecommunication• Procedures• People

AN HR EXAMPLE

INPUT(hours worked)

OUTPUT(cut paycheck)

PROCESSING(calculating net pay)

Feedback Loop(Is paycheck accurate?)

BASIC HRIS CAPABILTIES

IS IN HREXECUTIVE SUPPORT

Plant LocationMerger/Acquisition Support

DECISION SUPPORTStaffingBenefits Planning

WORKFLOWTime & AttendanceBenefits Enrollment

MANAGEMENT REPORTINGEEO, OSHA, etc.Absenteeism by Department

TRANSACTION PROCESSINGTime & AttendanceBenefits Enrollment

WITHOUT HRIS – PERFORMANCE EVALUATION

• Prepare evaluation forms• Print and copy evaluation forms• Distribute forms to employees• Employees fill in evaluation• Evaluation forms personally submitted to HR Manager• Re-write results to the computer or file them• Manual processing of data gathered• Prepare result sheets• Print, copy and distribute result sheets to employees• File all forms for future use

WITH HRIS –PERFORMANCE EVALUATION

• Define evaluation forms• Online evaluation entry• One-click access to results• History information captured• Evaluation reports• Strategic decision making process can take

place

WITHOUT HRIS – LEAVEAPPLICATION ADMINISTRATION

• Prepare leave application forms• Print and copy leave application forms• Manually maintain employee attendance information daily• Maintain company calendar• Employees applying for leave fill out an application form• Application form personally submitted to supervisor• Manual check for employee’s leave status history• Supervisor’s approval or rejection• Application form personally submitted to HR Manager• Manual update of employee’s personal leave information file

WITH HRIS – LEAVEAPPLICATION ADMINISTRATION

• Define company specific leave administration processes

• Online leave application form• Online leave approval or rejection• History information captured• Leave balance reports generated by the

system• Saves strategic resources

INTRANET – NEW DIMENSION OF HRISEmployee Self-Service

View/check/modify online:• Personal information• Qualifications• Leave application• Leave balance• Leave cancellation• Leave approval/rejection• Salary information• Company calendar• Appraisal results• Online appraisal process

10. Healthcare Costs

9. Pay Benefits

8. Cost Per Hire

7. Return on Training

6. Volunteer Turnover Rate

5. Turnover Cost

4. Time to Fill Jobs

3. Return on Human Capital

Invested

2. Human Value Added

1. What Impresses CEO

Most

TOP 10 CALCULATIONS

FOR HRIS

THREE LEVELS OF HRIS

STRATEGIC •Economic trends

•Industry forecasts•Manpower demand forecasts

Training projectsManpower planningPension fund investments

FUNCTION

AL•Employee background and experiences•Performance evaluation•Skills inventory

RecruitingEmployee selectionEmployee placementEmployee PromotionAssignments Matching

OPERTATIO

NS

Benefits programsCompensation programsInsurance programsEmployee demographicsPosition description

Internal reportingAbsentee ratesHuman resource accountingProductivity assessmentsExternal reportingEquity monitoringVacancy reportingHealth & safety reporting

WHY ARE CAREFULLY DEVELOPED INFO SYSTEMS IMPORTANT TO HR?

• Safer• Better Service• Competitive Advantage• Less Errors/Greater

Accuracy• Higher Quality Products• Improved Health Care• Improved

Communication• Increased Efficiency

• Increased Productivity• More Efficient

Administration• More Opportunities• Reduced Labor

Requirements• Reduced Costs• Superior Managerial

Decision Making• Superior Control

BENEFITS

• Time saving• Cost saving• Work reallocation

Time Saving

• Easy date maintenance• Administrated processes automated• Employee ‘self-service’• Adequate information base that leads to

timely and quick decision making• Responding faster to employee inquiries to

enhance efficiency and productivity

Cost Saving

• Less time spent on tasks = less money• Minimal paperwork• Timely and accurate decision making includes

less cost

Work Reallocation

• Helps the employees perform better through effective career planning and performance management

• Integrating the human resource function with other business functions in the enterprise to better serve personnel

HRIS – THE STRATEGIC VALUE

• Efficiency – cost & time• Effectiveness – orientation on the most

valuable asset of the organization - PEOPLE

IMPLEMENTATION OF HRIS

INCEPTION OF IDEA

FEASIBILITY STUDY

SELECTING PROJECT TEAM

DEFINING REQUIREMENTS

TAILORING THE SYSTEM

TRAINING

CONTRACT NEGOTIATION

VENDOR ANALYSIS

COLLECTING DATA

TESTING THE SYSTEM

STARTING UP

RUNNING IN PARALLEL

AUDIT

MAINTENANCE

LIMITATION

• Expensive in terms of finance• Problems of computer illiteracy• Inadequacies in design of HRIS• No substitute for human being• Regular updating of information necessary

DECISION MAKING PROCESS

• StrategicCreate a comprehensive learning organization that enhances the knowledge capital of all employees

• FunctionalPersonal development plans for employees, individual training plans according to employees training needs, performance evaluation meeting, etc.

•OperationalMaintaining data in the system, administration

HRIS UNPLUGGED – TIME ALLOCATION

• Strategic:– Strategic decision making………………...….2%

•Functional:–Functional decision making………………….23%

•Operational:–Operational day-to-day tasks………………75%

IDEAL DECISION MAKING PROCESS

• Strategic:– Strategic decision making………………...….2%

•Functional:–Functional decision making………………….23%

•Operational:–Operational day-to-day tasks………………75%

CONCLUSION

• “By automating human resource practices, HRIS saves time and money, effectively reallocates work processes and thus provides competitive advantage, adding strategic value to the organization.”

• ‘HR managers must make use of HRIS to achieve improved performance; removing routine administration allows them to become professional consultants to the rest of the organization.