Human Resource Management (HRM) is an organizational function that look into matters related to people, such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resource Management is moving away from traditional personnel, administration, and transactional roles, which are mostly automated. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value, a fully integrated HRM information system is an integral stepping stone to companys overall competitive advantage.

In the digital era Human Resource Information System (HRIS) play an important role for HRM. Human Resource Information System is a system which combines the activities connected to Human Resource Management (HRM) and information technology (IT) into one platform through the use of Enterprise Resource Planning (ERP) software. The goal of HRIS is to join different parts of human resources, including payroll, labor productivity, and assist management in the decision making at the strategic level.

This report describes the Human Resource Information System (HRIS) adopted by ABC Manufactories Ltd.

BACKGROUND OF THE ORGANIZATION

ABC Manufactories Ltd is one of the biggest pioneering biscuit manufacturing organization.

HRIS IN ABC

ABC identified the need of a Human Resource Information System (HRIS) in 1998, which will increase the effectiveness and efficiency of Human Resource function as the past records were kept on paper and with the use of spreadsheets. The task of developing a HRIS was given to a reputed software developing company.

The developer provided a customized software package together with a SQL (Structured Query Language) data base in which they have used Two-Tier architecture (2-tier architecture). This is also known as the client/ server architecture where the user interface runs on the client and the database is stored on the server. The actual application logic can run on either the client or the server. The client requests resources and the server responds directly to the request, using its own resources. Which means the server does not call on another application in order to provide part of the service/ request.

Figure 1 Two Tier Architecture

The data base resides on the HP Proliant 350 ML Server and connected through a network switch. The application resides on the user computers for them to interact with data physically via network, for which Visual Foxpro software applications are used. Six terminals are connected to the server. This data base is designed to allow tracking of all personnel related information. Main applications are attendance reporting and analysis, Compensation and reward management, Training need analysis and Human Resource Planning.

Figure 2 illustration on how the 2-tier architecture works

The database administration role is played by the software developers it self. The database administrator sets up login credentials to authorized persons, define privileges associated with each authorized use. Also he ensures that every work station attached to the network is set up to access the database. Database administrator handles the process of creating backups of the information contained in the database. He checks the backup files to make sure the information is complete, the integrity, data security and that the saved files can easily be accessed and loaded in the event of a crisis. He is also responsible for upgrading all software suitably, to improve the efficiency of the existing database from time to time.

JOB ROLES

SQL Data base

(HP Proliant 350 ML Server)

Network Switch

Main User (AHRM)

HR Executives

HR Assistants

T & A

Leave

Overall

T & D

Payroll

Figure 3 Overview of the HRIS

Assistant Manager Human Resources

Manages the Human Resource Information System. He/ She has the access to amend or edit details of an employee. The data compiled generally is in regards to attendance and leave records, salary information and employee information.

Executive -Human Resource

Keeps track of data or information pertaining to the employees while maintaining the confidentiality as he/ she has the access to view all the details of an employee such as name, address, salary, benefits, retirement planning and various allowances. In addition, he/ she keeps track of employee performance through performance reviews.

Executive - Pay Roll

Manages compensation and payroll through the system. She classifies each job and is knowledgeable about the approximate salary each requires. Accordingly, the payroll is processed after getting all the details from Human Resource department and sends the soft copy of salary schedule to the bank to deposit on each employees account. Pay slips are generated through the HRIS after the pay run. Other allowances and annual bonuses are also prepared through the system.

HR Assistants

Do the downloading of data in related to attendance on daily basis and generate the reports as and when necessary. Enter all the leave particulars taken by the employees and provide all the details/ reports with regard to leave and attendance for divisional heads at their requests.

Executive HR Training

Keeps track of training functions for new hires and current employees. Also he keeps track of who has participated and successfully completed each section of the program. In addition, this executive keeps track applicants from the submission of the initial application all the way through the offer of employment.

HOW HRIS HELPS TO IMPLEMENT HR FUNCTIONS IN HR STRATEGY FORMULATION AND IMPLEMENTATION

Through the implemented HRIS system, the Human Resource department can monitor and justify some of the HR related expenses that the company has incurred over a period of time. Some HR related expenses that can be monitored through the system are the training costs of newly recruited employees, the benefits given to the employees and their reported dependents. The HRIS system calculates termination costs, then the HR department can identify how well they have looked at the employees concerns. If the cost is high, HR department analyse to see the reasons behind why the employees are leaving. By finding out the reasons, HR department can implement changes by introducing a new strategy with recruitment that will be benefited the organization.

Attendance and punctuality is also be monitored by the system. HR department can identify frequent absentees and late comers as it directly affects to decrease the productivity of the company. There by, HR department can take necessary steps to overcome or minimize this situation. On the other hand, HR department can also identify the employees who have good attendance and punctuality, so that proper rewarding system can be implemented to appreciate and encourage them to continue their good work habits.

The payroll in the HRIS automates the entire process by gathering and updating employee payroll data on a regular basis. It also gathers information such as employee salary bill, calculating various deductions and taxes on salaries, generating automatic periodic paychecks and handling employee tax reports. This makes the job functions of the HR department more effective. With updated information this system makes the job of the human resource department very easy and simple as everything is available on any given time, which is just a click away. Further HR department generates all the statutory reports i.e. EPF, ETF returns through payroll system. This option plays a vital role in strategy formation.

By using a Human Resource Information System in employee benefits, the human resource department is able to keep a better track of which benefits are being availed by which employee and how each employee is profiting from the benefits provided. Also HR department can generate various reports such as pay and benefits as a percent of operating expenses, cost per new recruit, report on training, volunteer turnover rates, turnover costs, time to fill jobs, and return on human capital invested and to develop HR strategies by evaluating these reports.

When it comes to performance appraisals, HR department will be able to review the history of the performance of employees through the system and identify whether the employees are performing to their full potential or not, if not strategy can be changed and implemented for training. If there is any gap on expected performance of employees and existing performance of employees a training need analysis could be arranged and design in line with corporate objectives. Also HR department can implement reward system for potential employees.

LOOPHOLES IDENTIFIED

As this Human Resource Information System is administrated by outsourced company, there may be possibilities of error occurrence during information processing. As a result, the organization will have to bear an additional cost on rectifying those. And also there may be a risk in maintaining the confidentiality on HR data as outsourced company too has the access to HRIS.

The uses of Human Resource department are not properly trained to identify and attend the technical faults of this HRIS system. Therefore, additional cost have to be bearded to update the technology and in malfunctions or insufficient applications.

Information generated by the HRIS is not fully utilized and not integrated with other departments. Therefore other managers did not perceive that the HRIS had a positive impact on the role of human resources department in the organization.

The shortcomings on the payroll application lessened the employee confidence of the HRIS.

Define the Human Resource Information System based on your reading from the above case study? Show how HRIS combines the activities connected to Human Resource Management?

List some loopholes the ABC Company has from your point of view?

How HRIS helps to implement HR functions in HR strategy formulation and implementation? List the two most important from your point of view?