Human Resource Management Systems (HRMS, EHRMS), Human Resource Information Systems (HRIS), HR Technology or also called HR modules, shape an intersection in between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the planning and programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible.
“HRIS can be briefly defined as integrated systems used to gather, store and analyze information regarding an organization’s human resources.” (Hedrickson, 2003, p.381).
Human Resource Information System refers to the system of collecting, recording, classifying, presenting, processing, storing and disseminating various information, required for efficient and effective management of human resources in an organization. In order to manage diverse, expensive, and human resource information in complex environment, human resource department of various organizations have increasingly used computer based human resource information system. Human Resource Information System (HRIS) supports strategic and operational use of the human resources.
Human resource information system has become a part of all large organizations. It is a computerized system that aids in the processing of information relating to human resource management. It is a device, designed to fulfill the manpower information needs of the organization. HRIS is required for the following purposes.
- Planning human resource requirements of organization.
- Employee training & development to increase efficiency.
- Formulation of policies and programmes relating to human resources.
The Human Resource Information System (HRIS) is a software package that provides a complete management system for human resource activities in small-to-medium-sized businesses. They help streamline administrative procedures, manage employee benefits, reduce the need for paperwork and manual records, and keep track of all personal and job-related employee data. The Human Resources Information System is helpful for different organizations to set measurable benchmarks to acquire, train and retain the best employees, co-ordinate employee job descriptions with areas of responsibility, schedule training for recertification, safety, and revised work procedures, provide incentives to motivate and improve employee performance, track accident statistics and implement corporate strategies to improve overall health and safety. While the database provides quick access and track for the entire work history, every employee can be able to view only their personal information over systematic human resource information system.
Human Resource Information Systems (HRIS) can handle management of benefits for both HR personnel and company employees. HR directors can import payroll and benefits data into HRIS from in-house and outside sources. This allows them to manage all facets of HR from a single location. It also provides employees with self-service access to their accounts. With a secure system that requires a log in ID and password for each user, employees can check vacation balances, review benefits data, and update personal information without having to first contact HR staff.
How Human Resource Information Systems (HRIS) Works?
Human resource information system (HRIS) helps managers in decision-making in respect of promotion, wage fixing, recruitment, training and development. The inputs of HRIS include the information relating to employees, their abilities, qualifications, potentialities, creative instincts, age, pay scales, various jobs in the organisation, their required skill and qualifications to do them, the number of employees and executives manning various positions, organisational objectives, policies and procedures etc. This information is loaded into the system. This data is processed into the most useful information required by the managers.
This Human Resource Information Systems (HRIS) is not only prepared for an industrial, service or government organisation but also for the entire city, district, state or country. In order to eliminate human resource problem of any kind, HRIS comes to the rescue and provides the services of hiring human resources, maintaining the complete record of human resources. It can at any moment show the supply of human resources available. The figure below shows how the Human Resource Information Systems (HRIS) works.
- Inputs: The input of Human Resource Information Systems (HRIS) includes information related to employees such as education, age, experience, training, present status, present salary, whether promoted or not, organisation’s policy past and present, procedures past and present and other necessary detailed information relating to the human resources in the organisation. The computerized human resource information system in all respect superior to manual system, which is time consuming and not so cost effective. The most important benefit of the system is that the information is available immediately as and when required.
- Transformation: The information fed to the computer can be transformed into more meaningful and necessary information that is exactly required by the organisation. This is the conversion stage of computerized HRIS. The information transformed into meaningful calculation is very useful to the managers and organisation as well. This works as a decision support system, which aids in making appropriate decisions.
- Output: Output refers to the printouts of the transformed material from the computer printer like salary statement, report on performance of an employee, budget estimates, etc. All these can be had in the form of printouts, terminal screens etc. A well knit HRIS acts as a worthy decision support organism of a very high quality. The high quality output must be accurate, relevant, consistent, readable and comprehensive.
- Feedback and Control: Whether the output obtained is relevant and useful or not must be known. The method of ensuring it is known as feedback. Feedback establishes control over the system.
Basic Features of Human Resource Information Systems (HRIS)
In lieu of standardized paperwork, Human Resource Information Systems (HRIS) allows employees to fill out forms online, make changes based on life events, and get information on their benefits at any time. Rather than “pulling an employee’s file,” HR personnel can refer any information about an employee through the system, including personal information, benefits, number of dependents, emergency contacts, and job history.
Human Resource Information Systems (HRIS) includes both standardized and customized reports. Standard reports feature templates for various administrative purposes including employee reviews, record keeping, workers’ compensation, employment history, and absence tracking. Customized reports are created that incorporate categories and information unique to business. Most HRIS applications have a comprehensive tracking system. HRIS tracking capabilities can maintain grievances filed by or against the employee stemming from discipline, disputes, and complaints.
Quick reference guides can be available relating to all areas of the Human Resources Information System, including staff benefits, benefit contribution rates, calendars, personnel change reason codes, and the payroll process flowchart. Detailed instructions regarding establishing and changing employee benefit and deduction information, including retirement, pension, health care, flexible spending accounts and employee selected deductions. Documentation on the human resource accounting structure can be possible; including staff benefit calculations and charges, review and correction of human resource accounts. Documentation is helpful for payroll issues, including time reporting requirements, check and auto deposit distribution, taxable benefits, terminations, review and correction of employee pay and leave, and tax forms. Instructions and forms for employees to establish or change their employee information related to the Human Resources system, including name, address, retirement, pension, and health care.