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What is Human Resources Information System (HRIS)?
Human Resource Information System (HRIS) is an organized procedure for collecting, storing, maintaining, retrieving and validating data needed by an organization about its human resources. It is usually a part of the organization’s Management Information System (MIS).
Table of Contents
- 1 What is Human Resources Information System (HRIS)?
- 2 Information Provided by HRIS
- 3 Objectives of Human Resources Information System
- 4 Advantages of HRIS
- 5 Essentials of a HRIS
- 6 Limitations of HRIS
HRIS is a complete computerized package that provides the data about a human resource to the management so that the data can be communicated widely providing access to other users of the organization.
Information Provided by HRIS
HRIS provides various information to the organization which are as follows:
- Recruitment Information: HRIS provides recruitment information to the management. It identifies the vacant positions in the organization and also provides the vacancy details. It also helps in shortlisting the right candidate for the job.
- Career Planning Information: HRIS provides career planning information about the employees. If an employee is working for many years in an organization then HRIS will help in deciding his promotions, training and development programs.
- Training Information: HRIS makes available information regarding training needs. It also provides a schedule for training program such as; how many days the training will be provided, what will be the course content of the training program, course specification.
- Appraisals Information: The performance of the employees is appraised on yearly, half-yearly or quarterly basis depending on the organization’s requirement. Their appraisal is done by assessment of their performance and their goal accomplishments.
- Provides Employee Data on their remuneration: HRIS maintains data about employee wages, incentives, tax information, insurance benefits, employee attendance, and much more while wanting to make a decision.
Objectives of Human Resources Information System
HRIS is very important for an organization to maintain. Nowadays, many organizations are working on HRIS to keep a sound and accurate record of their human resources.
Besides, there are some purposes and objectives of human resource information system in the organization which are as follows:-
- Provide historical information and evidence: HRIS is a part of a management information system, which keeps track about their employee’s data like their joining date, cost incurred on recruitment, their performance record, their feedback and all other important information which is very necessary for an organization.
- Provides up-to-date information: The organization keeps each and every single detail about an employee. HRIS is updated every time when an employee joins or leaves the organization. It is updated every day with other important information.
- Helps in personnel research and personnel audit: HRIS also helps in conducting the research or investigation about an employee because sometimes, employees provide false or fake data in order to join the organization.
- Needed to take Personnel Decision: HRIS also helps in taking personnel decisions. HRIS helps the management in forecasting the demand and supply for manpower in the organization. It also helps in taking decisions like recruitment, selection, placement, training needs and promotions etc. of an employee.
- Deciding payrolls and Career Path: HRIS records all the information about the human resources of the organization. On the basis of the qualification, experience, past performance HRIS helps the management in deciding the payroll and career path like the promotion, demotion, training, development, transfers etc about the employees.
- Supplying information to the government and various agencies: HRIS also supply the information to the government and various agencies for additional use.
- Helps in evaluation and modification of HR policies: It helps in evaluating and modifying the HR policies from time to time. If there is any need to change or update any policy, HRIS will help the organization in making the necessary changes.
- Helps the company to detect frauds, mistakes and errors: HRIS also helps the company to detect the frauds, mistakes and errors made in the data recorded in the information system. It checks all the frauds and corrects mistakes and errors wherever required.
Advantages of HRIS
HRIS is needed in the organization and it provides the advantages of HRIS in the following way:
- More accurate than manual files: HRIS is a computerized package. It maintains all the records on the computer and avoids the manual process of payrolls and applications.
HRIS is an automated system therefore; it saves time and avoids manual errors. It also provides accurate and timely results.
- Available centrally and accessible to all: HRIS is a computerized package that records, stores, manipulates and communicates the information with increased capacity with access to many users.
It is stored centrally in the main system which is linked to other users that can be accessed by them as per their requirements.
- Easy to analyze records than in manual recording: HRIS makes it easy and convenient to analyze all the records of the employees. HRIS maintains all the information on the computer system and it becomes easy for the managers or any other user to access the information that is accurate and on time.
Manual recording by the clerks or the specialized persons appointed for this purpose is very time-consuming.
- Easy to operate and saves time: Since it leads to automation of work to a great extent the need to maintain files and manually process payrolls and applications can be avoided.
Hence it saves time and makes work easy. The manager saves time and is able to devote time to other important strategic decision of the organization.
- Administer employee information: It also helps in streamlining the administration of employee attendance, leave records, employee benefits. Employees can mark their attendance electronically, apply for leaves online, new employees may electronically enrol in benefit plans, current employees can log onto the system monitor and update their leave records, current benefit coverage and other important information throughout the year.
- Apply electronically to the organization: HRIS allows candidates in case of job openings to submit their resumes and contact information online. The software also allows current employees to electronically apply for new positions.
The system then collects the information and archives it so it is easily accessible by the hiring manager.
- Decision Support System: It acts as a decision support system. HRIS maintains data about employee profiles hiring records, tax information, and much more while wanting to make a decision it can process out reports on the stored data with a few mouse clicks.
It gives very accurate information and does fast processing. Hence it becomes an important tool for strategic planning and its implementation.
Essentials of a HRIS
- Should fulfil the Objective: An HR record is maintained in order to be able to derive some sound and accurate information from it for further analysis. It should keep a record of all the necessary information that is required to fulfil the objective behind maintaining the records.
- Should follow a proper procedure and format: It should be maintained systematically. So that at the time of need accurate and timely information can be easily retrieved. For that purpose, it must follow a proper procedure and format.
- Clear and Easy to understand: It should be clear and easy to understand. A complex HR record is always difficult to maintain and not understood by the employees of the organization.
- Reasonable Cost: It should be cost-effective. This means that it should not involve more cost than the benefit derived from it otherwise it will become difficult for the organizations to obtain and maintain it.
- Easily accessible: A good HR record should be easily accessible by all the departments at any time. It becomes easy to maintain if accessed from anywhere.
- Accurate: HR records should provide accurate information. This will save the time of the managers and they can involve themselves in much other decision-makers of the organization.
- Should be verifiable: An HR record should be easily verifiable at any time by the managers of the organization.
Limitations of HRIS
HRIS is a very helpful tool for every organization. It provides all information about the human resource which is relevant for an organization. But besides being very popular and advantageous for the organizations it is also criticized on certain grounds.
- Failure in Forecasting: Human Resource Information System is totally based on computers. The information is stored by the experts appointed for operating HRIS.
If they have entered any wrong information about the employees or the organization or they made any omission in entering the data, it will be very harmful for the organization. This will lead to failure in forecasting because if the data entered is wrong.
- Perception of Top Level Management: Sometimes, top management does not support the decision of operating on HRIS. Management still wants to continue with the manual procedure.
Management thinks that this is wastage of time and money. Therefore, management, in order to save time and money, does not agree for installation of HRIS.
- Defects in Implementation System: There can be errors, faults and failures of output generation in the system. Implementation system or execution of HRIS can defect sometimes.
This will not be able to provide the actual results and the information provided can be wrong, misleading, and vague. Therefore, complete trust in HRIS cannot be maintained.
- Lack of Proper Training to HRIS Operators: HRIS is an automated system, which requires some specialized persons to operate on it. Every employee cannot run or execute programs on HRIS.
Extra training and development need to be provided to these specialized employees operating HRIS, otherwise, they will face problem in providing accurate data to the organization.
What is HRIS in HR?
HRIS is an organized procedure for collecting, storing, maintaining, retrieving and validating data needed by an organization about its human resources. (Read Complete)
What is the purpose of HRIS?
Purpose of HRIS is to provide historical information, up-to-date information, Helps in personnel audit, Needed to take Personnel decision, deciding payrolls and career Path, Supplying information to the government, Helps in evaluation and modification of HR policies, Helps the company to detect frauds, mistakes and errors. (Read Complete)
What are some HRIS systems?
The best-known HRIS systems include Workday, Oracle’s PeopleSoft, SAP’s SuccessFactors, Ultimate software, Ceridian, and ADP. Garnter (2018) identified these providers as HRIS leaders.
What is an HRIS analyst?
The HRIS analyst provides support for the HRIS. This includes researching and resolving problems and being a liaison with other parts of the business, like finance and payroll.
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