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Dr.J.Gajendra Naidu
Research Supervisor in Management, (Ph.D) Guide
Bharathiar University,
Coimbatore,TamilNadu,India
Abstract:
With the increasing effect of globalization and technology, organizations have started to use
information systems in various functions and departments in the last decades. . Information
technology has created a revolution in the every sphere of human endeavor. Today IT is used
extensively across the organizations to perform various functions such as recruitment,
maintenance, development etc. IT and its wide range of applications have not only impacted
their operations but also have made their presence greatly felt in every sphere of management.
Even in the field of HRM, technology has not only contributed towards the paradigm shift, but
has brought in various challenges and opportunities along with it. The biggest challenge faced
by the organizations is the adoption and acceptance of HRIS, as it is very critical for the
systematic and effective functioning of the Organization.
Development of a proper managerial climate and acceptance of HRIS and its implementation
is crucial for innovative and knowledge based organizations .The accurate merger of
functionality and reporting devices can only lead to the smooth and effective functioning of
the organizational functions. The present paper focuses on the study of issues and challenges
faced by an organization by implementing HRIS techniques across various functions and
also suggest some methods by which it may be accepted in related jobs
Keywords: Human Resource Management (HRM), Human Resource Information System
(HRIS).
1. INTRODUCTION
Organizations must treat information as any other resource or asset. It must be organized,
managed and disseminated effectively for the information to exhibit quality. Within an
organization, information flows in four basic directions as upward, downward, horizontal and
outward/inward .Taking into account that there is a huge amount of information flow in
An organization can select and customize a HRIS to meet its requirements. An efficient HRIS
provides an organization with information on virtually anything required to monitor and
examine staff/applicant data. HRIS helps HR train staff to execute administrative tasks,
allowing HR to focus on other strategic functions.
A Human Resource Information System is a software package that replaces manual, paper-
based methods of inputting, tracking and recording employee information. It is generally
organized in five main modules. An HRIS records employee personal and job-related
information; it keeps records detailing job requirements it facilitates planning by matching
employees with the jobs for which they are best qualified; and, with security features and
tracking of data required for regulatory compliance, it satisfies laws for the protection of
personal data and generates reports for submission to management for decision making.
Employee Data
A typical HRIS is organized with an employee database. It includes personal information such
as name, age, address, telephone numbers, Social Security number, dependents, education and
training as well as job-related information. The latter can include the current salary and salary
history, an employment history, and benefit details. The HRIS organizes the data into menu-
driven pages that display more and more detail in any of the data categories. The HRIS
organization completely separates this database from the other sections since many employees
accessing it will not necessarily need access to the other modules.
Job Data
The company may use the HRIS to create a second database for data related to particular jobs.
For an HRIS organized in this fashion, this second database contains the requirements for each
existing company position, the name of the employee holding the position, the names of
potential replacements, the paths available for promotion into and from the position and the
salary and benefit levels associated with the position. Separately from the individual job
database, the HRIS may include global job and employee data such as where present
employees came from, how the company found them, how long they stayed with the company
and how well they performed.
Planning
Companies may use a third organizational module of an HRIS for planning. Such a module
draws on the employee data base, the jobs database and the global employee and job
information to identify future human resource requirements and possible sources. The module
matches existing employees with company jobs and predicts where there will be gaps. The
company can then plan to meet these needs by extra hiring, by re-assigning work or by
making changes in the organization of the company.
Compliance
An HRIS can be organized to report on compliance. Companies must demonstrate compliance
with employee-related legal requirements such as equal opportunity, gender neutrality and
quality of the work-place environment. The HRIS will track employee characteristics, hiring
decisions, employee evaluations and decisions for firing or layoffs. It can then generate reports
detailing whether and how well the company is in compliance with legal requirements.
Security
An additional organizational module for an HRIS is superimposed on the others to ensure
security. The security module ensures the protection of employee personal data according to
privacy laws by allowing only the employee himself and appropriate company personnel to
view his data. The security module also ensures that employees can only view sensitive data
when they need it to perform their job. Data on promotional paths and candidates, for
example, is likely to be severely restricted. The security module uses appropriate levels of
security, including multiple layers, to protect the HRIS data.
Human resources information systems provide access to employee data with speed and
convenience, saving time and money. Instead of researching multiple sources of information,
companies can gather information in one area for quick access. Depending on the desired use
and what is in place presently, you may want to form an internal team to conduct various
analyses of critical functions to design database modules and features. In addition to
information technology personnel, the team may consist of employees in human resources,
training, compensation, benefits and operations.
meetings. For example, a checklist may contain such things as level of security, backup
systems if database crashes, employees who have external access to the system, guarantee
offered, and updates.
Components of HRIS
HRIS has major three functional components as shown in Figure 1
Input . Data Maintenance Output
Syeda Qudsia Batool, Dr. M.A Sajid, Dr. Syed Hassan Raza (2012) described the benefits and also the
problems of HRIS in an organization :
Technology is completely changing the way things operate. The role of HRIS is increasingly
becoming strategic. Availability of timely information, improvement in the services played an
important role. The implementation of HRIS reduce the workforce, save time. It enables the
organization to improve their data and enhance the competitiveness. The implementation of HRIS
also cause some problems such as lack of expertise, technical problems, lack of funds, time
consumption by the untrained staff. Inspite of barriers in implementation. Employees and
organizations are trying to understand and streamlining the system. HRIS made it possible for the
organizations to have employee development.(p.7)
Dr. Arjita Jain (2014)explains in Study on Effectiveness of Human Resource Information System at
Vistaar Technologies (Mumbai):
HRIS has the potential to affect both efficiency and effectiveness. Use of HRIS results into
reduced cycle time for processing paperwork, increased data accuracy, and reduced human
resource staff. It also results into improving the capabilities of both managers and employees to
make quick decisions. The research findings reveal that the resistance for implementation of new
HRIS needs to be recognized and diagnosedclearly by the HR heads of the organization.(p.14-15)
2. Objectives
a) To identify the challenges faced by organizations after implementing HRIS techniques across HR
functions.
b) To find out the various methods and techniques through which HR can overcome these challenges.
c)To identify the effectiveness of HRIS in today’s organization.
3. Methodology
The study is secondary in nature and the content of the research paper has been Collected through
various sources as,articles, journals, and website from the internet.
3.1 Scope of the Study
This study explores current areas including:
• The current available strategies and technologies used by HR Executives.
• Issues and challenges faced by organizations during the strategic use of HRIS technology.
• The successful and effective use of HRIS technology in the various HR Function
like recruitment, maintenance and development of workforce and its acceptance by employees
and overcoming the challenges faced .
4. Literature Review
Information technology has greatly impacted the Human Resource Management through one of the
important and effective tool i.e. Human resources information systems (HRIS). This tool has not only
streamlined the data processing, but also has made the employee information more readily available to
managers. The two primary areas of application of computer in the managerial decision making process
include, the increasing use of electronic computers in managerial decision making and the coordination
among the various strategic functions in the organization.
Nikhal Aswanth Kumar in his study titled “Managerial Perceptions of the Impact of HRIS on
Organizational Efficiency “states that the modules on the HRIS system should be aligned to the
overall functioning in order to gain congruence. For example, the HRIS should encapsulate all the steps
in the hiring process. Also, the performance management module should be congruent with the overall
performance management process in order to effectively manage performance. It is also important to
nurture the organizational culture needed to support the new HRIS.
Broderick R., Boudreau J.W. (1992) In “Human resource management, information technology and
the competitive advantage” states that potentiality of Information technology is highlighted and well
understood through the findings that those who were most successful in using information technology
made additional system and organization development investments. He concluded by stating that actual
value addition done by the use of HRIS can be possibly estimated through concrete measures of
benefits and costs .in the organization and the long term advantage it allows the organization to handle
the challenges in the competitive scenario.
Sira, Wayne A. Jr., states in article titled "Human Resource Information Systems: The Challenges of
Conversion” that though there are several options for managers such as enterprise resources
management, outsourcing, as well as a variety of tools designed specifically for conversion and
upgrading information systems many failures still occur. He also indicates that there are many causes for
failure including project abandonment, enthusiasm, and outsourcing. Failures are also due to
inexperienced management, the users who lack the skills needed to utilize a newer system and
stakeholders that withdraw support for a project before it is completed.
Teo, T. S. H., Soon, L. G. & Fedric, S. A. (2001) said in article “ Adoption and Impact of Human
Resource Information Systems (HRIS)” that HRIS was used mainly for administrative purposes like
payroll and employee record keeping, rather than strategic applications like succession planning. He
found a tremendous amount of unrealized HRIS potential as very few respondents are using the HRIS
strategically to directly improve their competitiveness HRIS was simply viewed as the use of computer
hardware and software applications to perform HRM activities.”
Dr. Nisha Aggarwal, Mona Kapoor (2012) stated in Human Resource Information Systems (HRIS) -
Its role and importance in Business Competitiveness that according to them the combination of
Human resources and information technology known as HRIS are being implemented by many firms as
strategic weapons towards the uprising business competitiveness and also meeting the needs of all
stakeholders in the company. They found that firms are increasingly moving beyond manual human
resource system today, by computerizing individual human resource tasks, installing HRIS and also
using the internet and intranet.
Farhat Ali Syed stated in A study of human resource information system in indian banking
scenario (issues and challenges) that As Indian banking is going through structural changes, this
concept is proving a boon for its overall development.. The manual system adopted by the banks was the
cause of procedural delays, outdated as well as inaccurate information, improper documentation, higher
expense of storing files and their safety. Banks are able to integrate different HR functions by using third
generation of feature-rich, broad-based and self-contained HRIS.
4.2 Challenges of implementation of HRIS
Here we explore the challenges towards implementation of HRIS and its acceptance the important
points of view are highlighted as understood by the said study. The challenges can be listed as
1) Onus of responsibility – There is a misconception that introduction of HRIS can relieve HR Manager
of all responsibilities. To large extent, HRIS can make HR Manager free from transactional tasks.
However, it also brings with it a new set of responsibilities to ensure that the software is being used and
implemented correctly. Therefore the onus of co-operating with the software vendor and ensuring
successful deployment lies with the client HR manager.
2) Over expectations – Due to overstress on the benefits of HRIS software, partially by the media and
partially by the marketing departments of software vendors, organizations have developed larger-than-
life expectations from the software solutions. When the solutions are unable to deliver these over-
expectations, the clients tend to lose confidence in the vendors. The only way out is either pre-sales
discussions or a clear statement of user expectations in the form of a Request for Proposal (RFP)
document, to which the vendor responds as per the strengths of his solution, including the additional
effort required for customization, if the same is technically feasible.
3) Resistance to change – Employees at the client location is attitudinally inclined to use only the
existing system. They enjoy the loopholes in the processes, more so the inability of a manual system to
track progress. Therefore, they offer great resistance to change, especially if the change calls for the
acquisition of new skills by the employee. Their resistance to change leads to lack of enthusiasm and co-
operation in successfully implementing software systems. The onus of responsibility for change
management lies entirely with the client, but some vendors do offer HR consultancy as a supplement to
their solutions.
4) Training Requirements – HRIS software may have a completely new interface, large number of
functions and specially configured workflows. It may demand users to exhibit some level of expertise in
understanding the technology solution. When faced with the new software, user experiences anxiety and
may display discomfort in using the system. Such discomfort can result in remaining ignorant of various
features, thereby denying to yourself the benefit of full exploitation of the software. A good software
vendor can resolve this issue by providing on the system training to key personnel and prepare them as
torch beares. He would also provide sufficient on-line help features to all the users.
6) Software Errors and Bugs – Bugs, error and opportunities for improvement are integral part of
software. Expecting HR Software to be picture-perfect and without any errors/ omissions is unfair.
These bugs need not scare people since these can be resolved through mutual co-operation between the
vendor and client. Once settled, they do not reappear. However, if new bugs surface with higher levels
of exploitation of the software, these should be taken as encouraging signals both by the client and the
vendor.
7) Work Flow Changes – When you install HRIS software, you also install some innovative globally
accepted HR practices and workflows. If you have these practices for the first time, some of the
members in your organization may not feel comfortable with the changes, especially the change of work
flow.
3. Adaptibility- HR should adapt itself to the changing environment and technology and should opt for
sufficient and sustainable technological supportability of equipments and resources.
4. Flexibility- The technologies adopted should be agile and flexible so as to accommodate the changes
in the adjust to the new paradigm shift. The demands of the changing economy should be taken care
while developing new policies or changing existing policies.
5. Technical training- The changes in the workplace often require the implementation of additional
training for workers. As training and development is generally the realm of the HR department, this
creates yet another challenge for human resource managers. HR must first determine what training is
necessary and then implement training measures to ensure all workers can keep
up with technical changes. Human resource managers must also determine when it may train existing
employees, and when it must search for new workers to fill technical positions within the organization.
6. Communication- To ensure the smooth implementation of the system, organizations must ensure the
need to address the potential issues like calculating organizational impact and proper communication of
the various training plans to the employees.
7. Monitoring and feedback- Successful implementation has also to be followed with regular and
periodic follow up. This will ensure to understand and solve the problems faced after the
implementation, and accordingly steps can be taken for the further improvement or modification of the
system.
6. Conclusion
If handled in a correct perspective, good utilization of HRIS can lead to the growth and efficiency of the
organizations in the long run. The technology based HR functions provides real time metrics to the
managers, which help them to track and spot trends effectives and thus leads to an effective management
of the workforce. Effective HR transactions, increased speed , lesser paperwork and cost effectiveness
are definitely some of the advantages which not only ensures transparency, but also facilitates better
controls by the top management. But the implementation of HRIS requires a fundamental change in the
way HR professionals view their roles. The successful and efficacious implementation is only possible
when the HR professionals learn to be proficient with the traditional HR skills and knowledge, and
develop the ability to apply their knowledge via the technology.
HRIS has the potential to affect both efficiency and effectiveness. Use of HRIS results
introduced cycle time for processing paperwork, increased data accuracy, and reduced human
resource staff. It also results into improving the capabilities of both managers and employees
to make quick decisions. The research finding several that the resistance for implementation
of new HRIS needs to be recognized and diagnosed
clearly by the HR heads of the organization.
Certain suggestions proposed are as follows:
3.Broderick R., Boudreau J.W. (1992). Human resource management, information technology and the
competitive advantage, Academy of Management Executive 6 (2), 7–17.
-
4.Sira, Wayne A. Jr., "Human Resource Informtion Systems: The Challenges of Conversion" (2011).
Research Papers. Paper 110. Accessed on 21st June 2015 from the World Wide Web:
http://opensiuc.lib.siu.edu/gs_rp/110
5.Shammy Shiri (2012) Effectiveness of Human Resource Information System on HR Functions of the
Organization A Cross Sectional Study, US-China Education Review ,David Publishing A 9, 830-839
,ISSN 1548-6613 .
6.Teo, T. S. H., Soon, L. G. & Fedric, S. A. (2001). Adoption and Impact of Human Resource
Information Systems (HRIS), Research and Practice in Human Resource Management, 9(1), 101-117
7.Dr. Nisha Aggarwal, Mona Kapoor( 2012) Human Resource Information Systems (HRIS) - Its role
and importance in Business Competitiveness GIAN JYOTI E-JOURNAL, Volume 1,
Issue 2 ISSN 2250-348X
8.Syeda Qudsia Batool Dr. M.A Sajid Dr. Syed Hassan Raza ( 2012), Benefits and Barriers of Human
Resource Information System International Journal of Humanities and Social Science Vol. 2 No. 3;
9.Dr. Arjita Jain (2014) Study on Effectiveness of Human Resource Information System at Vistaar
Technologies (Mumbai) , SIES Journal of Management, Vol. 10(2)
10. Farhat Ali Syed in A study of human resource information system in indian banking scenario (issues
and challenges) Altius Shodh Journal of Management & Commerce ISSN 2348 – 8891