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WHAT IS HRIS?

• HRIS is systematic way of storing data and


information for each employee to aid
planning, decision making, and submitting of
returns and reports to the external agencies.

• The application of computers to employee-


related record keeping and reporting, and
management decision making
WHAT IS HRIS?
• Any system that supports any aspect of the HR
function
• Primary function:
– Documenting the employment relation in all it’s
complexity
• Basic technology:
– Storing, retrieving and distributing information
PURPOSE

• Storing of data for future reference.


• Providing basis for all HR functions.
• Meeting daily transactional
requirements.
• Supply data to statutory agencies.
IMPORTANCE OF HRIS

• STRATEGY
• COMPETITIVENESS
• PEOPLE
• HRM

HRIS - a part of Strategic HRM


Evolution of Information Systems
• Transaction Processing (e.g. payroll)
• Management Information Systems (e.g. daily
& monthly absenteeism summary)
• Decision Support Systems (e.g. How many
employees should we hire?)
• Expert Systems
Any Computer-based Info Systems
(HRIS included)
CONSIST OF
• Hardware
• Software
• Databases
• Telecommunication
• Procedures
• People
An HR Example

PROCESSING
INPUT OUTPUT
(Calculating Net
(hours worked) (cut Paycheck)
Pay)

Feedback Loop
(Is paycheck accurate?)
IS in HR EXECUTIVE SUPPORT
Plant Location
Merger/Acquisition support

DECISION SUPPORT
MANAGEMENT REPORTING
Staffing
EEO,OSHA etc.
Absenteeism by department Benefits Planning

TRANSACTION PROCESSING WORKFLOW


Time & Attendance. Time & Attendance.
Benefits enrollment. Benefits & enrollment.

BASIC HRIS
CAPABILITY
WITHOUT HRIS
• Prepare evaluation forms
• Print and copy them
• 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 them to employees
• File all the forms for future use

Performance evaluation
WITH HRIS
 Define evaluation
forms

 Online evaluation
Entry

 One-click access to
Results

 History info captured

 Evaluation reports

 Strategic Decision
making process can
take place

Performance evaluation
WITHOUT HRIS
• Prepare leave application forms
• Print and copy them
• Manually maintain employee attendance information daily
• Maintain company calendar
• Employees applying for leave fills in 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

Leave Application Administration


WITH HRIS
 Define company specific
leave admin processes

 Online leave application


form

 Online leave
Approval/Rejection

 History info captured

 Leave balance reports


generated by the system

 Saves strategic resources

Leave Application Administration


INTRANET-New dimension of HRIS

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

Employee self-service
10. HEALTHCARE
COST
1. THAT
IMPRESSES CEO 9. PAY BENEFITS
MOST

2. HUMAN VALUE
8. COST PER HIRE

TOP10
ADDED

CALCULATIONS
3. RETURN ON
HUMAN CAPITAL
FOR HRIS 7. RETURN ON
TRAINING
INVESTE

4. TIME TO FILL 6. VOLUNTEER


JOBS TURNOVER RATE
5. TURNOVER
COST
Data
Three Levels of HRIS Applications
• Economic trends  Training Projects
• Industry forecasts  Manpower planning
STRATEGIC • Manpower demand forecasts  Pension fund investments

 Recruiting
• Employee background and
 Employee selection
experiences
 Employee placement
FUNCTIONAL • Performance evaluation and rewards
 Employee promotion
• Skills inventory
 Assignments matching

 Internal Reporting
 Absentee rates
• Benefits programs  Human resources accounting
• Compensation programs  Productivity assessments
• Insurance programs  External Reporting
OPERATIONS
• Employee demographics  Equity monitoring
• Position description  Vacancy reporting
 Health & safety reporting
BENEFITS

• Saving time

• Saving costs

• Work re-allocation
Saving time [efficiency]
• Easy data maintenance
• Administrative processes automated
• Employee ‘self-service’ (kiosk)
• Adequate information base that leads to timely
and Quick decision making
• Responding faster to employee inquiries to
enhance efficiency and productivity
Saving Costs [efficiency]
• Less time spent on tasks = less money

• Minimum paperwork

• Timely and accurate decision making includes


less cost
Work re-allocation [effectiveness]
• Helping the employees perform better
through effective career planning and
performance management

• Integrating the human resource function with


other business functions in the enterprise, to
serve personnel better
HRIS: The Strategic value

• Efficiency – cost & time


• Effectiveness – orientation on the most
valuable asset of the organization – PEOPLE

Adding strategic value to the


Organization
IMPLEMENTATION OF HRIS
INCEPTION OF TAILORING THE COLLECTING
IDEA SYSTEM DATA

FEASIBILITY TESTING
TRAINING
STUDY SYSTEM

SELECTING CONTRACT
STARTING UP AUDIT
PROJECT TEAM NEGOTIATION

DEFINGING VENDOR RUNNING IN


MAINTENANCE
REQUIREMENTS ANALYSIS PARALLEL
LIMITATION
• Expensive in terms of Finance.
• Problems of computer illiteracy.
• Inadequacies of Design of HRIS.
• No substitute for human being.
• Regular updating of Information
necessary.
DECISION MAKING PROCESS
• Strategic
Create a comprehensive “ Learning Organization” that
enhances the knowledge capital of all the employees.

• Functional
Personal development plans for employees, Individual
training plans according to employees training needs,
Performance evaluation meetings, etc.

• Operational
Maintaining data in the system , Administration
HRIS Unplugged

• Strategic:
• strategic decision making ………….……2%
• Functional:
• functional decision making …………….23%
• Operational:
• Operational day-to day tasks …………75%
Time Allocation
Ideal DECISION MAKING PROCESS

• Strategic:
• strategic decision making ………….……2%
• Functional:
• functional decision making …………….23%
• Operational:
• Operational day-to day tasks …………75%
Time Allocation
CONCLUSION
 “By automating Human Resource practices, HRIS saves
time and money, effectively reallocates work processes
and thus provides competitive advantage and adds
strategic value to the organization.”

‘HR managers must make use of HRIS to achieve


improved performance and Removing routine
administration allows them to become professional
consultants to the rest of the organization.’
for your attention.

HandleR

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