HRIS

A Human resource information system is also called

Personnel Information system, and is concerned
with activities related to previous, current and
potential employees of the organization.
 HRIS-Contd..
A human resource information system is a systematic
procedure for collecting, storing, maintaining, receiving,
and validating data needed by an organization about its
human resources. The HRIS is usually a part of the
organization’s larger management information system. The
HRIS needed not be complex or even computerized. But
computerization has its own advantage of providing more
accurate and timely data for decision making.
 HRIS-Contd..
The areas of application of HRIS are many. Some of them
include training management, risk management turnover
analysis, succession planning, flexible-benefits
administration, compliance with government and legal
requirements, attendance reporting and analysis, HRP,
Accident reporting and prevention, strategy planning, and
other related areas
 HRIS-Support

HRIS supports the strategic, tactical and operational

use of the human resource of an organization.
It supports areas such as:
Recruitment, selection and hiring
job placement
Performance appraisal
Employee benefit analysis
Training and development
Health, safety and security.
 HRIS-Contd..

HRIS are also designed to support:

Planning to meet the personnel needs of the business.
Development of employees to their full potential
Control of all personnel, policies and programs.
 CBIS-Support

Originally Computer based information systems supports:

To produce paychecks and payroll reports
Maintain personnel records.
Analyze the use of personnel in business operations.
 HRIS-Contd..

HRIS Supports the function of staffing at the three levels:

Strategic systems: HRP, Labor force tracking
Tactical systems: labor cost analysis and budgeting, turnover
analysis.
Operational systems: Recruiting, workforce
planning/scheduling
 HRIS-Contd..

HRIS Supports the area of training and development at all

three levels:
Strategic systems: Succession planning, P.A planning.
Tactical Systems: Training Effectiveness, Career Matching.
Operational systems: Skill Assessment, performance
evaluations.
 HRIS Contd..

HRIS Supports the area of compensation

administration at all three levels:
Strategic systems: contract costing, salary forecasting
Tactical systems: Compensation effectiveness and
equity analysis, benefit preference analysis.
Operational systems: payroll control, benefits
administration.
 HRM and HRIS

HRM is considered as a total system that interacts with other

major systems in the organization such as marketing, finance,
manufacturing and the external environment . Forecasting and
planning the personnel needs of an organization, maintaining
an adequate and satisfactory work force, controlling the
personnel policies and programs of the company are major
responsibilities of HRM.
HRIS are the IS, that supports human resource activities such
as recruitment, selection, hiring, job placement, P.A, T&D.
 Steps in implementing HRIS
Inception of idea
Feasibility study
Selecting a project team.
Defining the requirements.
Vendor analysis
Package contract negotiation.
Training
Tailoring the system.
Collecting the data.
 Steps in implementing HRIS-Contd..
Testing the system
Start up
Running in parallel
Maintenance
Evaluation
 HRIS-Contd..
 A properly designed and updated skills inventory system
permits management to readily identify employees with a
particular skills in order to satisfy the changing needs of
the company.
The popularity of skills inventories has increased with the
proliferation of computers.
Although traditionally most of the desired information
was available from individual personnel files
 HRIS-Contd..
 Use of computers for collecting, storing, maintaining, retrieving and
validating HR data was popularly known as HRIS.
 It is used for HR Forecasting/Demand Forecasting.
 Here the forecasting used can be such as:
 Managerial judgment
 Ratio-trend analysis
 Regression analysis
 Work study techniques
 Delphi technique
 Flow models
 HRIS-skill Inventories
Skill inventories consolidate information about non-
managers in the organization. Because the
information from the skill inventories is used as input
for transfer and promotion decisions, they should
contain information about each employees current
job.
 HRIS-skill Inventories- Contd..
Seven broad categories of information are included in each skill
inventory. They are:
Personal Data: age, sex, marital status
Skills- education, job experience, training
Special qualifications-membership in professional bodies, special
achievements.
Salary and job history: present, past salary, dates of pay rises, various
job held.
Company data: benefit plan data, retirement information, seniority.
Capacity of individual- scores on psychological and other tests, health
information.
Special preference of individual- geographic location, type of job.
 HRIS-skill Inventories-Contd..
Management Inventories: these include data such as:
Work history
Strengths
Weaknesses- identification of specific training
programmes needed to remove the weaknesses.
Career goals
personal data
Number and types of employees supervised.
Total budget managed
 HRIS-skill Inventories-Contd..
Previous management duties.
Educational background
Current job performance
Field of specialization
Job preferences
Geographic preferences
Anticipated retirement date
Personal history including psychological assessments.
 HRIS- Payroll Data
The payroll is one of the important ingredient of the
HRM. It is very essential sub-function of HR, irrespective
of the size of the organization.
The payroll data includes details such:
Employee Number
Employee Name
Designation
Pay details
Deductions and other details
 E.g. of Pay slip of an employee

ABC Company India Ltd

N0 15, 30th Cross, Banashankari-Bangalore-30
Pay Slip for the Month of March 2012
Name: Sri.Mohan
Designation: Senior Manager
Basic Pay: 12,000 Gross Salary: 34400
DA: 19000 Deductions
HRA: 3000 PT: 200
CCA: 400 PF: 780
Personal Pay: 0 IT: 500
Special Allowance: 0 loans: 0
Total Deductions: 1480
Net Salary: 32920
Signature
 Uses of HRIS
The uses of HRIS are in the following HR Sub-functions:
HR Planning and Analysis: Consisting of aspects Such as:
Organisation chart
Staffing projections
Skills inventories
Turnover analysis
Absenteeism analysis
Restructuring costing
Internal job matching
Job Description Tracking
 Uses of HRIS-Contd..
Equal employment: Consisting of aspects such as:
Alternative action plan
Applicant tracking
Workforce utilization
Availability analysis
 Uses of HRIS-Contd..

Staffing: Consisting of aspects such as:

Recruiting
Applicant tracking
Selection
Job offer
Refusal Analysis
 Uses of HRIS

HR Development: Consisting of aspects such as:

Employee training profiles.
Training need assessment
Succession planning
Career interest and experience
 Uses of HRIS-Contd..

Compensation and Benefits: Consisting of aspects such as:

Pay structures
Wage salary costing
Flexible benefit administration
Vacation usage
Benefit usage analysis
 Uses of HRIS-Contd..

Health safety and security: Consisting of aspects such as:

Safety training
Accident records
Material data record
 Uses of HRIS-Contd..

Employee and labor relations: Consisting of aspects such as:

Union negotiation costing
Auditing records
Attitude survey results
Exit interview analysis
Employee work history
 Uses of HRIS-Contd..
Strategic HR Initiatives: Strategies for managing shortages:
Recruit new permanent employees
Offer incentives to postpone retirement
Rehire retirees part time
Attempt to reduce turnover
Work current staff turnover
Subcontract work to another company.
Hire temporary employees
Redesign job processes so that fewer employees are needed.
 Uses of HRIS-Contd..
Strategic HR Initiative: Strategies for Managing Surpluses:
Hiring freezing
Do not replace those who leave
Offer VR Schemes
Reduce work hours
Leave of absence
Across the board pay cuts
Layoffs
Reduced outsourced work
Employee training
Switch to variable pay plan.
Expand operations.
 Other Uses of HRIS
E-Recruitments
E-selection
E-performance management
E-learning
E-compensation
In all these above cases, certain types of HRIS Systems,
for instance can be programmed to administer and/or
score recruitments, selection assessment, training etc.
 IHRM
The domestic and IHRM can be differentiated based upon
the following main differentiators:
More HR Activities
Need for a broader perspective
More involvement in employees personal lives.
Changes in emphasis as the workforce mix of expatriates
and local vary.
Risk exposure
More external force.
 IHRM-Contd..
IHRM is the interplay among the 3 main dimensions
namely:
HR Activities
Types of employees
Countries of operations
 More Human Resource Activities

Each function of HR has a new dimension in IHRM as shown below:
Human Resource Planning:
Difficulty in implementing HR Procedure in host countries.
Difficulty in aligning strategic business planning to HR and vice-versa.
Providing developmental opportunities for international managers.
Employee hiring:
Ability to mix with organization culture.
Ethnocentric, polycentric, or geocentric approach to staffing.
Selection of expatriate failure.
Coping with expatriate failure.
Managing repatriation process.
Training and Development:
Emphasis on cultural training.
Language training
Training in manners and mannerism.
 More Human Resource Activities- Contd..
Compensation:
Devising appropriate strategy to compensate expatriates.
Minimizing discrepancies in pay between parent, host and third country nationals.
Issues relating to reentry of expatriates into home country.
Performance management:
Constraints while operating in host countries need to be considered.
Physical distance, time differences and cost of reporting system add to the
complexity.
Identification of raters to evaluate subsidiary performance.
Industrial Relations:
Who should handle industrial relations problems in a subsidiary.
What should be the attitude of parent company towards union in a subsidiary.
What should be union tactics in subsidiaries.
 HR Activities- Contd..
Need for broader perspectives : HRM in the Asia-Pacific region is as
follows:
Gender based pay
Overtime
Promotions

Changes in emphasis

Risk exposure

External Influence.
 Growing interest in IHRM
The following reasons have contributed to the growing interest
in IHRM.
Globalization of business.
The effective management of HR.
Underperformance or failure in overseas assignment is costly.
The implementation of International strategies by setting up
of subsidiaries.
Development of network of personal relationships.
Implementation and control of strategies in international
business.
 Managing IHRM Activities
Human Resource Planning
Recruitment and selection
Training and development
Performance management
Remuneration
Repatriation
Employee relations
Multicultural management.
 Managing IHRM Activities-Contd..
The key issues in International HRP are as follows:
Identifying top-management potential early.
Identifying critical success factors
Providing developmental activities.
Tracking and maintaining commitment to individuals in
International career paths.
Trying strategic business planning to HRP and vice-versa.
Dealing with multiple business units.
 Managing IHRM Activities-Contd..
Recruitment and selection:
Ethnocentric approach: key management positions are
held by parent country nation.
Polycentric approach: it requires host country nationals
to be hired to manage subsidiaries, while the parent
country nationals occupy key positions at corporate
headquarters.
The geocentric approach: seeks the best people for key
jobs throughout the organization regardless of
nationality.
 Managing IHRM Activities-Contd.
Training and Development:
Cross-cultural training
Language training
Practical training
Management development and strategy.
 Managing IHRM Activities-Contd..
Expatriate :
The parent country and the host country nations
extensively rely on use of expatriate employees working
outside their home country with a planned return to that
or a third country.
Expatriate play a major role in the international
businesses.
MNC’s take a great care in their selection process.
It involves the process of determining the need for an
expatriate assignment, identifying, selection, training etc..
 Managing HR-Activities-Contd..
Steps in expatriate performance management:
Linkage to organizational strategy
Setting individual performance goals.
Identifying variables impacting performance.
Appraising the performance.
Providing regular feedback on progress towards the
goals.
Providing opportunities for improvements.
Linkage results with rewards.
 Managing HR-Activities-Contd..
Paying the Expat depends on the following factors/ International compensation strategy:
MNC Internal environment:
Goal orientation
Capacity to pay
Competitive strategy
Organizational culture
Internal workforce composition
Labour relations
Subsidiary role
MNC External environment:
Parent nationality
Labour market characteristics
Local culture
Home and host country government roles
Industry type
Competitors strategies
 Managing HR Activities-Contd..
Objectives of paying expatriates:
Attract employees who are qualified and interested in
international
Facilitate the movement of expatriates from one subsidiary to
another, from the home country to subsidiaries, and from
subsidiaries back to home country.
Provide consistent and reasonable relationship between the
pay levels of employees at the headquarters, domestic
affiliates, and foreign subsidiaries.
Be cost effective by reducing unnecessary expenses.
 Managing HR Activities-Contd..
The expat remuneration package generally comprises
of:
Salary
Benefits
Allowances
Incentives and taxes
 Managing HR Activities-Contd..
Repatriation:
The activity of bringing the expatriate back to the home
country.
It has been the knowledge of practitioners and academics
that re-entry into home country presents new challenges
as repatriates copes up with what has been termed re-
entry shock or reverse culture shock.
 Managing HR Activities-Contd..

The Repatriation Process:

Preparation
Physical Relocation
Transition
Re-adjustment
 Managing HR Activities-Contd..

Key Issues in International labour Relations:

Who should handle labour relations: whether the
headquarters, or the subsidiary plant in the concerned country
However the involvement of the MNC Headquarters in host
country labour relations is influenced by several factors:
Firstly the labour relations function is centralized and is
coordinated by headquarters when there is high degree of
inter subsidiary production integration.
Nationality of the ownership of the subsidiary.
What should be the union tactics.
 Managing HR Activities- Contd..

Multiculturalism:
Means that people from many cultures interact regularly.
Global firms are the repositories of multiculturalism.
Multiculturalism management offers the following benefits:
Greater creativity and innovation.
Awareness about the need to maintain sensitivity in dealing
with foreign customers.
Possibilities of hiring the best talent.
Creating a super organizational culture.
Evolving universally acceptable HR Policies and practices.
 Managing HR Activities
The HR Manger needs cross cultural competence to
manage multiculturalism. Specifically the HR Manager
needs to:
Possess strong personal identity.
Have knowledge of beliefs and values of different
cultures.
Display sensitivity to the affective processes of culture.
Communicate clearly in the language of given cultural
group.
Cultivate cosmopolitan outlook and attitudes.
 Managing HR Activities
Hoafstedes cultural Dimensions: There are 4 dimensions:
Power Distance
Uncertainty avoidance
Individualism
Masculinity
 Cross Culture-
Cross culture seeks to foster appreciation for the host
country’s culture.
The belief is that understanding the host country’s
culture will help the manager emphasize with the culture,
which will enhance his or her effectiveness in interacting
with host-country citizens.
Cross culture should also emphasize in the host country’s
culture history, politics, economy, religion and social and
business practices.
 Cross Culture- Contd..
One of the major areas of Cross Culture is cross culture
training i.e. CCT.
Many managers are giving more emphasis to this area.
More managers are required to travel around the globe
frequently on business deals.
During the late 90’s Japan spent $17 million in business
etiquette training.
In India firms which have recognized the importance of
CCT are Mafatlal, O.P Jindal Group, Reckitt and Coleman
India and Ranbaxy.
 Cross Culture Training- Contd..

Merits of CCT
Increases chances of success in global assignment.
Provides a comprehensive global perspective for
managers.
Instills a sense of confidence into people.
Foreign employees can be managed better.
Reduces cultural shock.
 Cross Culture Training- Contd..

Demerits of CCT
Develops a false sense of confidence among expatriates.
May not remove cultural biases and prejudices.
May not make visible difference on the business volumes.
May not be taken seriously by the recipients.
Can never fully prepare an assignee to face real
problems.
 Cross culture-Contd..
Management Development and Strategy: MNC’s use
Management Development strategic tool.
This is particularly true with firms pursuing a multinational
strategy which is a Common feature among firms these days.
Such firms need strong unification of corporate cross
culture and informal management networks to assists in co-
ordination and control.
In addition MNC’s need to be able to detect pressure to
conduct business in a locally-responsive manner.
This obviously demands knowledge about the country’s
cross culture.
 Cross culture- Contd..
Management development strategies and programmes
help to build cross culture by encouraging new
managers to socialize and imbibe the values and
norms of the firms. In-house training programmes
and intense interaction during off-site training can
foster esprit-de-crops, shared experiences, informal
networks perhaps, a company language of jargons as
well as competencies. These often includes songs,
picnics, and sporting events that promote feelings of
togetherness.
 Cross culture-Contd..

Ways of forming cross culture: There are 6 ways of forming

cross culture:
Culture formation around critical incidents.
Identification with the leaders.
Property rights.
Organization structure.
Organizational ethics.
Employee characterstics.
 Cross Culture- contd..

Ways of sustaining culture

Selecting and socializing employees.
Action of leaders and founders.
Transformational leaders.
Culturally consistent rewards system
Managing cultural networks.
Maintaining stable workforce.
Credos: Having Corporate Credos and enforcing it across
all employees.
 Cross culture-Contd..
The Credo of Johnson and Johnson reads thus:
Our credo which is the guiding star for conducting
business makes J&J a unique and great place to work. We
all passionately live the credo in our day-to-day life.
We not talk about our credo, but we walk the talk. Even
at the cost of the business, the right thing is given
importance.
The best thing about the organization is its credo and
people are taught to live the credo and after certain
period the credo starts to run in your blood.
 Cross Culture- Contd..
The Bangalore Based Software firm Mind Tree has unique credo of its own
Typically named CLASS
Caring
Learning
Achieving
Sharing
Social responsibility
Every new hire is initiated into CLASS at the time of his/her joining Mind Tree.
All the employees are alligned to CLASS.
The company has also come out with a booklet, On Integrity that contains
behaviours not in line with the culture.
The credo of mindtree is being followed across the globe.
Whether J&J , or Mind Tree or any other company, credos help sustain culture
for decades to come.
 Cross Culture- Contd..

Global Differences and similarities in HR Practices:

Personnel selection Procedures.
The purpose of the performance appraisal.
Training and development practices.
The use of pay incentives.
 Diversity Management

The components of diversity are:

Race
Sex
Culture
National Origins
Age
Religion
These factors comprise of the Demographics.
 Diversity- Contd..
Managing Diversity:
Managing Diversity means maximizing diversity potential
advantages, while minimizing the barriers. There are
certain activities which include the heart of diversity,
which are as follows:
Provide strong leadership
Assess the situation
Provide diversity training and education.
Change culture and management systems.
Evaluate the diversity management programmes.
 Managing Diversity-Contd..
Employees of organization are becoming more
heterogeneous.
In creating diversity management programs the initiative
should be taken by the company or the employer.
For example training immigrants in their native language
can facilitate learning as well compliance with matters
such as safety rules, harassment policies and thereby
facilitate entry into workforce.
 Managing Diversity- Contd..
As days go by the diversity is going to be an important issue for
the HR Manager for the following reasons:
The number of young workers in the workforce is increasing.
More women are joining workforce.
The proportion of ethnic minorities in the total workforce is
increasing.
Workforce mobility is increasing.
International careers and expatriates are becoming common.
International experience is becoming a pre-requisite for career
progression to many top level positions.
 E.g. of Diversity
How far ur class contains diversity.
How many of you are boys and girls.
Which places you come firm.
What languages do you speak
What has been your experience while interacting with
a boy or a girl who hails from some other place and
speaks different language.
 Diversity Management- Contd..
Diversity if managed effectively offers several
competitive advantages to the firms such as:
Increase in organizations productivity
Problem solving ability
Increase in creativity
Manage more diverse workforce effectively.
More flexibility in their policies.
Development of skills.
 Diversity Management- Contd..
 How to manage diversity effectively? Following are some of the guidelines:
 Top management commitment to value diversity.
 Organize diversity training programmes that provide diversity awareness.
 Have a support group set up by employer to provide nurturing climate for
employees.
 Accommodate female employee needs such as child care, job sharing etc.
 Create mentoring programmes.
 Have apprenticeship programmes.
 Institute diversity audit to review the effectiveness of diversity
programmes.
 Having proper communication. How
 Gender bias needs to be given up.
 Diversity Management- Contd..
Example of Firms following Diversity Management by
becoming more cosmopolitan:
HUL
ICICI
IBM
WIPRO
INFOSYS
 Work Life Integration
Balancing work life assumes relevance when both the
husband and wife are employed.
Work life integration/balance is a major challenge for the
HR Managers.
It has enabled many firms to be successful because of
work life integration.
It is a personal problem rather than a organizational
issue.
 work life Integration- Contd..
Programmes aimed at work-life balance integration
includes:
Childcare at near the work place.
Job sharing
Care for sick children and employees.
Onsite summer camps.
Training supervisors to respond to work and family
needs of employees.
Flexible work scheduling
Sick leave policies.