A STUDY ON HRIS AND ITS IMPACT ON IT...

International Journal of Interdisciplinary Research Centre (IJIRC) ISSN: 2455-2275(E)

Volume II, Issue 2 February 2016

All rights are reserved 69

A STUDY ON HRIS AND ITS IMPACT ON IT INDUSTRIES

*Gopalasetty Sandeep and

** S.A.Hussain

* MBA, Miracle Educational Society Group of Institutions, Vizianagaram, INDIA

**Associate Professor, MBA Department,Miracle Educational Society Group of Institutions,

Vizianagaram, INDIA

Abstract

In this modern era of revolution in information technology, the face of the workplace has

changed and systems have been made an absolute effective by introducing new techniques.

Most of the organizations have now understood the importance of information storage and

retrieval. Nowadays, the term data is very important in any kind of industries. Data in terms

nothing but a collection of various related information. It will decrease costs, improved

communication, and decreases in time spent on specific activities should create an

environment wherein the Human Resources (HR) department would play a more strategic

role in the organization. This study relates the HRIS impact in human resource management

(HRM) in IT companies operating in India. Many of the IT companies are very efficient in

maintaining the data. Various people have delivered that the use of a Human Resource

Information System (HRIS) leads to valuable and best outcomes for success to the

organization. For this study, we have conducted a survey of 80 respondents from Human

Resources from various private IT corporations operating in India. The results show that

HRIS is positively used as a tool to achieve greater administrative efficiency by adding value

in the department. The survey is done with the assistance of the questionnaire. After

investigation it is concluded that having various benefits but the foremost thing is HRIS

facing difficult to deliver its impact in small scale IT industries. The study also recommends

that organizations should allocate adequate resources for adoption of human resource

information systems.

Keywords: Human Resource Management, Human Resource Information System, Database,

RDBMS, IT (Information Technology), Private Corporations

I Introduction

1 Human Resource Management:

HRM is a process of managing people in organizations in a structured and thorough manner.

This aspect covers the fields of staffing which is hiring people, also retention of people, pay

and perks setting and management, performance management, change management, taking

care of exits from the company to round off the activities. This is the traditional definition of




HRM according to some experts to define it as a modern version of the Personnel

Management function that was used earlier.

1.2 Database:

A database is an application that stores a collection of data. Each database has one or more

distinct APIs for operations like creating, accessing, managing, searching and replicating the

data it holds.Other kinds of data stores can be used, such as files on the file system or any of

large hash tables in memory but data fetching and writing is not to be very fast and easy.

In present trend, we use relational database management systems (RDBMS) to store and

maintain huge volume of data. This is said to be relational database because all the data is

stored into different tables and relations are implemented using primary keys or other keys

known as foreign keys.

A Relational DataBase Management System (RDBMS) is a specialized software that:

● Enables us to implement a database within the tables, columns and indexes.

● Guarantees that Referential Integrity between the rows of various tables.

● Updates the indexes automatically if we are in need.

● Interprets an SQL query and combines the information from various tables.

1.2 Human Resource Information System:

Human Resource Information System is a specific customized software solution developed

for helping the organizations to automate their Human Resources, Payroll, Management and

accounting activities. HRIS affects the performance of the people, also processes and key

organizational strategies by automating key HR processes like recruitment, training,

manpower planning, performance appraisal and job analysis & design.

1.2.1 Definitions:

According to Parry (2010),

“HRIS can serve as a vital strategic tool as it shares crucial data with the management related

with recruitment and retention strategies which can be aligned with the overall corporate

strategy for realizing the organizational objectives of growth.

According to (DeSanctis, 1986).

Additionally, by using HR applications, a company can calculate the overall costs incurred

per employee and it’s effects on the business as a whole ”

According to (Martinsons 1997). Kavanagh et al. (1990)

“Historical data reveals that the evolution of HRIS can be traced back in 1950’s and 1960’s

when the first automated systems (payroll system) was introduced and shared their insights

on historical evolution of HRIS by introducing the historical eras in human resource from the

pre-World War II period to the 1980s and how the evolving HR practices had its effect on

the HRIS. With the increasing importance of IT applications in HR, the functioning of HR




department has been undergoing a radical change from mere administrative and support

functions to a more active participant in the strategic decisions of the organization.”

According to Lengnick-Hall and Moritz propose, along with others (e.g., Walker, 2001),

revolves around the perspective that HRIS will create informational efficiencies and cost

savings such that HR departments can turn their attention to providing better analysis of

current data and creative uses of the HRIS to provide better and more accurate data upon

which to base strategic decisions.

According to (Grallagher, 1986; Broderick and Boudreau, 1992).

“Consequently, HRIS is seen to facilitate the provision of quality information to management

for informed decision-making. Most notably, it supports the provision of executive reports

and summaries for senior management and is crucial for learning organizations that see their

human resources as providing a major competitive advantage. HRIS is therefore, a medium

that helps HR professionals perform their job roles more effectively HRIS can be

implemented at three different levels, i.e. the publishing of information, the automation of

transaction, and finally transforming the entire working of the HR department so it plays a

more strategic role and adds more value to the organization (LengnickHall and Moritz

2003).

1.2.2 Advantages of HRIS:

According to Kovach(2002), HRIS implementation has the following advantages:

● Improving the organizational competitiveness by the way of improved human

resource functioning.

● Provides the opportunity for shifting the focus among day to day operational issues of

HR to much more strategic objectives.

● Employees plays an active role in the HRIS implementation and its usage in day to

day functioning.

● Results in reengineering or restructuring of the entire HRD.

● Reduction in the cost of stored data in human resource.

● Higher speed of retrieval and processing of data and availability of accurate and

timely data about human resources.

● Better analysis leading to more effective decision making and more meaningful career

planning and counseling at all levels.

● Improved quality of reports and more transparency in the system.

● Better ability to respond to environmental changes.

1.2.3 Disadvantages of HRIS:

● Security: Security is one of the biggest drawback. These Systems must be designed

to prevent unauthorized access to sensitive and confidential data and unintended

publication of any such kind of information.

● Cost: One more is the cost factor. For smaller companies, this can pose a problem.

With any system, there are acquisition costs and maintenance costs. SaaS (software as a service) systems are somewhat easier to handle from a cost standpoint since they are cloud-based and don’t require as much




● Staffing: With having of larger installations, there’s probably the cost of hiring an

IT specialist to manage the system.

1.2.4 Limitations of HRIS:

● It can be expensive in terms of financial and manpower requirements.

● At implementation stage and also its effective application needs the large-scale

computer literacy among the employees responsible for the maintaining HRIS.

● If the personnel designing HRIS are not at competent enough in their works, there is

and then, mismatch between data provided by the HRIS and data required by the

managerial officials.

● Computers may not replace with human beings because human interventions will

always be there to improve with existing situation. The “Garbage-In Garbage Out

(GIGO)” is the key expression in any computerized system.

● Absence of continuous updating with HRIS makes the information stale which is

considered as good as no information.

● It can be threatening and inconvenient.

● Thorough understanding of what constitutes quality information for the users.

1.2.5 Relevance of the Study:

Human Resources are the main assets for any kind of industries.With the technological

advancements many companies have realized that it should be needed to implement more

sophisticated computerized systems, like Human Resource Information Systems.

When we are moving to HRIS, companies are able to keep more accurate and up-to-date

records, allows them to better prepare for the future growth in their companies. The

computerized HRIS is designed to monitor, control and influence the movement of people at

that the time they join the organization till the time they leave it before.In many of the IT

industries are implementing this customized software, though large scale and medium scale

companies are been successful with this implementation. But there is a lack of few small

scale IT companies of using this Human Resource Information Systems.

1.2.5.1 Challenges to success of HRIS:

● An inconsistency and its importance attributed to HRIS resulting in difficulties in

sustaining management commitment to the project and also obtaining the resources

necessary to fully develop the new or upgraded HRIS.

● A tendency to underestimate the complexity of HRIS and its impact on behavior

along with processes of the organization.

● The barriers to user acceptance of the HRIS and consequent underestimation of the

importance of change management.

● Top management commitment and enthusiasm about the development of this

customized software. They considered the project as an investment.




● The effective need analysis was done in an effective way.

● The key people from Human Resources and IT department were selected for the

project teams. Like Head of HR, Head of IT and other managers were part of the

project team.

● Co-ordination and leadership, and also communication with top management and

monitoring were also possible.

● Capability and dedication towards project team. The project team was committed to

complete the project time, quality and cost parameters.

● Training of general users made it more confident in using the software. Miss proper

confusions regarding the software among users were clarified.

1.2.5.2 Types of HRIS:

❖ Operational HRIS: Provides the manager with data to support routine and repetitive

human resource decisions. Several kinds of operational-level information systems

collect and reports the human resource data.

➢ Employee Information Systems

➢ Position Control Systems

➢ Applicant Selection and Placement Information Systems

➢ Performance Management Information Systems

➢ Government Reporting ,Compliance Information Systems

➢ Performance appraisal Systems

➢ Skills inventory management systems

❖ Tactical HRIS: HRIS provides managers with support for decisions that emphasize

the allocation of resources. In the human resource management area, it includes

decisions of recruitment decisions; And also like job analysis and design decisions,

along with the training and development decisions, and also employee compensation

plan decisions.

➢ Job Analysis

➢ Design Information Systems

➢ Recruiting Information Systems

➢ Compensation and Benefits Information Systems

➢ Employee Training and Development Systems

❖ Strategic HRIS: According to the relevant customized systems we have few of the

strategic HRIS aspects

➢ Information Systems Supporting Workforce Planning and Labor Negotiations

➢ Specialized Human Resource Information Systems Software




1.2.5.3 Implementation Process of HRIS:

Step 1. Inception of idea:

● The initial step of HRIS implementation is the inception of the idea.

● The need of the organization to have HRIS software must be accepted and to be

agreed by the top level management.

● It is an investment and management needs to keep it in mind of ourselves.

Step 2. The Feasibility study:

As this investment, the feasibility of HRIS must be assessed and covers the following areas

• Scope of customized software

• Future benefits after implementation of the software

• Potential software developers for the assessment

• Cost estimations

• Value addition aspects to the business

• ROI calculation: A feasibility study will help the management to make the decision based

on facts and figures.

Step 3. Implementation of HRIS:

● Selecting and implementing the project as it requires ensuring budgeted cost, specific

timeline with quality of delivery. Successful implementation eventually depends on

capability and efforts of project teams in organization

● Team members should be taken from both HR and IT. There should be an

Involvement of senior managers is required to get the top level management on

different kinds of issues. “Experts recommend that HR and IT representative people

shares leadership of the project team. If at all possible, Team leaders should be

dedicated to conversion for full time.

Step 4. Requirements Definition

● The scope needs to be defined clearly and in a concise manner. It will not be a

complete specification but at least the processes may be incorporated in the software.

● The company HR policies and processes must be analyzed and defined clearly. If

there is any conflicts or ambiguities in process, difficulties will may be arise to

incorporate it in the software.

Step 5. Vendor analysis:

● Choosing and selecting the right software developer at right place is another

challenge.

● The aspects like capability, track record and good will of the developers must be

taken into consideration.




Step 6. Negotiation of vendors:

● After getting the final offer from the vendors, the decision of work order will be

finalized and will be based on cost and quality actors.

Step 7. Training Process:

● Training usually begins as soon as possible after the agreement has been signed.

● First, the members of the project teams are trained to use the HRIS

Step 8. Tailoring the system:

● Initializes the system requirement specification, the design of the specialised software

will be initiated.

Step 9. Collection of data:

● At this stage required data to enter in the software will be collected.

● A team of Human Resources needs to be deployed to collect data for the software.

● Data validation is also required. It's a very important part of the project.

Step 10. Testing Process

● Once the system is designed with data the testing is required. Few organizations call it

User Acceptance Test.

● At this stage the users use it and try to check if any gap between requirement and the

delivery of the software.

Step 11. Starting up:

● After the User Acceptance the softwares which are required will be installed in user’s

PC or web as per configurations

Step 12. Running in parallel:

● To run the existing process whether it is manual or software and the new software run

in parallel.

● The new software the process will not get hampered.

● A complete full cycle of the process needs to be run in parallel

Step 13. Maintenance:

● Whenever the software has been installed, regular maintenance and performance

monitoring is essential.

● For the effective annual maintenance contract can be signed with the software

development company.

Step 14. Evaluation Process:

● After running the customized software for a certain period of time, the performance

evaluation will be done.




1.3 Objectives of HRIS:

● To study about the various implementations and applications of HRIS in IT industries

in India.

● To understand the impact of HRIS in strategic activities of HR departments for

organizations in IT sector

● To study the difference between traditional HRM and HRIS.

● To know the perceptions of HRIS in various level of Industries.

II Review of literature

1. Dr. Shikha N. Khera, Ms. Karishma Gulati (2012) in their research paper have stressed

upon Impact of HRIS on Human Resource Planning and the advantages of HRIS with special

reference of IT companies.

2. Prof. Dr. Anil C. Bhavsar (2011) has discussed about various advantages,applications and

importance of HRIS. The study also highlights “today's HRIS has the potential to be an

enterprise wide decision support system that helps achieve both strategic and operational

objectives”.

3. Kenneth et. al. (2002) in his research paper has stressed upon various administrative

advantages which may include employee self service, interactive voice response etc. and

strategic advantages of HRIS which can be in the course of information gathering,

processing, and sharing.

4.MD. Sadique Shaikh (2012) discussed about three models for HRIS designing namely basic

HRIS design model, HRIS hexagonal and HRIS phase’s model. The author emphasized on

the payback of HRIS designing and execution for all levels and domains of businesses; in the

form of profitable strategic HR and related business plans and decision, to forecast and to

control HR process inside and outside of business organization using HR-databases or HR

Knowledge base’s, which includes information related to human resource maintained and

processed by HRIS.

5.Madhuchanda Mohanty and Santosh Kumar Tripathy (2009) analyzed the HRIS of NALCO

in their study. The authors exhibit that the use HRIS in NALCO has improved the overall

pace and competence of HR functions, but still needs some more developments. The study

also states that HRIS cannot be used for analytical purpose but can only be done for

administrative purpose.

6.Albert C. Hyde and Jay M. Shafritz (1977) conducted their study when HRIS was a new

concept and just came into market. They portrayed HRIS as a system useful in planning and

accountability of human resources and as a personnel management tool too. The authors also

specified various modules, advantages, uses etc of HRIS at that time and future expectations

from HRIS in human resource management.




III Methodology

3.1. Primary Source:

Primary data have been collected from interview with HR professionals, HR managers, and

HRIS officers, software developers of different local and multinational organizations. They

have provided a lot of insights and information regarding HRIS.

3.2. Secondary Source:

Secondary data have been collected from different books, journals and articles , on HRIS.

3.3. Form of Data Collection:

Data collection was mainly based on material study and interview since it is a qualitative

work. The respondents are mainly HR professionals, HR managers, and HRIS officers,

software developers of different local and multinational organizations. A structured

questionnaire was used in the interview. The concerned people were asked tell about their

experience with HRIS in terms of benefits, challenges, application and need.

Sample of 80 respondents from IT companies (on the basis of their market share) have been

taken to discern the role of HRIS in manpower planning of their organisations. The research

design used is exploratory. Data for this study is acquired mainly from primary sources but

secondary sources are also well thought-out.

IV Data Analysis

4.1 Research Design:

Primary Data : Collected from interview with HR professionals, HR managers, and HRIS

officers, software developers of different local and multinational IT organizations.

Secondary Data : Collected from Industrial Directories,different books and journals and also

articles on HRIS.

Sample Size: 80 Respondents




4.2 Data Analysis - Questionnaire Survey

Questionnaire Item

Strongly

Agree

Agree

Strongly

Disagree

Disagree

Neutral

1. Do you accept that HRIS in IT

industries makes things very

accurate,efficient and reduce manpower?

76

04

-

-

-

2. Do you accept that HRIS performs

very comprehensive reporting and

tracking applicants and also

maintaining,retrieving information

efficiently?

67

13

-

-

-

3.Do you agree that in your organization,

HRIS is better utilized and it had met

your expectations?

41

28

-

6

5

4. Is your software company provides any

sort of assistance or training to the HRIS

users or officers to use the system

efficiently?

65

15

-

-

-

5. Does any updates or changes made

regularly to your HRIS application based

on the feedback received?

31

33

2

3

11

6.Do you agree that HRIS has been

improved the quality of work performed

and resulted with less error and cost

reduction?

41

13

6

7

13




4.3 Data Analysis - Interpretation

Case 1:

Do you accept that HRIS performs very comprehensive reporting and tracking applicants and

also maintaining, retrieving information efficiently?

Table 4.3.1

Figure 4.3.1

Interpretation:

According to the Primary Data, Table 4.3.1 and Figure 4.3.1 depicts that:

● 95% means 76 respondents are Strongly Agree that Human Resource Information

Systems in IT industries makes things very accurate, efficient and reduce manpower.

● 5% means 4 respondents are agree that Human Resource Information Systems in

IT industries makes things very accurate, efficient and reduce manpower.




Case 2:

Do you accept that HRIS performs very comprehensive reporting and tracking applicants and

also maintaining, retrieving information efficiently?

Table 4.3.2

Figure 4.3.2

Interpretation:


● 83.8% means 67 respondents are Strongly Agree that Human Resource

Information Systems performs very comprehensive reporting and tracking applicants

and also maintaining, retrieving information efficiently.

● 16.3% means 13 respondents are Agree that Human Resource Information Systems

performs very comprehensive reporting and tracking applicants and also maintaining,

retrieving information efficiently.




Case 3:

Do you agree that in your organization, HRIS is better utilized and it had met your

expectations?

Table 4.3.3

Figure 4.3.3

Interpretation:


● 51.3% means 41 respondents are Strongly Agree that in their organizations, HRIS

is better utilized and it had met their expectations

● 35% means 28 respondents are Agree that in their organizations, HRIS is better

utilized and it had met their expectations

● 7.5% means 6 respondents are Disagree that in their organizations, HRIS is not

better utilized and it hadn’t met their expectations

● 6.3% means 5 respondents are Neutral that in their organizations, HRIS is

sometimes better utilized and it's not completely met their expectations




Case 4:

Is your software company provides any sort of assistance or training to the HRIS users or

officers to use the system efficiently?

Table 4.3.4

Figure 4.3.4

Interpretation:


● 51.3% means 41 respondents are Strongly Agree that in their organizations, HRIS

is better utilized and it had met their expectations

● 35% means 28 respondents are Agree that in their organizations, HRIS is better

utilized and it had met their expectations

● 7.5% means 6 respondents are Disagree that in their organizations, HRIS is not

better utilized and it hadn’t met their expectations

● 6.3% means 5 respondents are Neutral that in their organizations, HRIS is

sometimes better utilized and it's not completely met their expectations




Case 5:

Does any updates or changes made regularly to your HRIS application based on the feedback

received?

Table 4.3.5

Figure 4.3.5

Interpretation:


● 41.3% means 33 respondents are Agree that in their organization, updates or

changes made regularly to their HRIS application based on the feedback received

● 38.8% means 31 respondents are Strongly Agree that in their organizations,

updates or changes made regularly to their HRIS application based on the feedback

received

● 2.5% means 2 respondents are Strongly Disagree that in their organizations,

updates or changes were not made regularly to their HRIS application based on the

feedback received




● 3.8% means 3 respondents are Disagree that in their organizations, updates or

changes were not made regularly to their HRIS application based on the feedback

received

● 13.8% means 11 respondents are Neutral that in their organizations, updates or

changes were sometimes made but not completely to their HRIS application based on

the feedback received.

Case 6:

Do you agree that HRIS has been improved the quality of work performed and resulted with

less error and cost reduction?

Table 4.3.6

Figure 4.3.6

Interpretation:


● 51.3% means 41 respondents are Strongly Agree that in their organization, HRIS

has been improved the quality of work performed and resulted with less error and cost

reduction.




● 16.3% means 13 respondents are Agree that in their organizations, HRIS has been

improved the quality of work performed and resulted with less error and cost

reduction.

● 7.5% means 6 respondents are Strongly Disagree that in their organizations, HRIS

hasn't improved the quality of work performed and resulted with more errors and cost

reductions.

● 8.8% means 7 respondents are Disagree that in their organizations, HRIS hasn't

improved the quality of work performed and resulted with more errors and cost

reductions.

● 16.3% means 13 respondents are Neutral that in their organizations, HRIS has

somehow improved the quality of work performed and resulted with few errors and

cost reductions.




V Findings

● The greater utilisation of HRIS job analysis process in an organisation increases the

potency and effectiveness of HR designing

● HRIS isn't restricted to the pc hardware and software package applications that

comprise the technical a part of the system: it additionally includes the folks, policies,

procedures and information required to manage the HR function

● Secrecy of information could be a major concern for HR managers whereas

mistreatment HRIS.

● In the gift dynamic state of affairs, it's vital for any organization in commission sector

to manage its Human Resources in an efficient manner, that HRIS plays a awfully

vital role.

● Firms should initial acknowledge the importance of HRIS and so enhance the systems

so as to boost the organization performance

VI Suggestions

● SMEs square measure progressively failing to use HRIS in support of strategic HRM

tasks. it'd be terribly attention-grabbing if future analysis may engaged towards

finding answers to why SMEs square measure reluctant to commit time and resources

for the implementation of HRIS in strategic HR tasks.

● However, additional analysis ought to be drained alternative sectors to check whether

or not these finding square measure similar in numerous industries.

● Suggestion for more studies into these factors is so sensible to contribute towards

ways that of handling challenges two-faced within the adoption of Human Resource

information systems.

● Database and its connectivity play a prominent role in Human Resource Information

Systems. Proper training of this functionality should be provided to Human Resources

Executives/Officers/Specialists to get more efficiency.




VII Conclusion

● From the past few years, software industry has produced several products that

organize the various human resource information systems into integrated software

referred as HRIS software.

● HRIS also helps in reducing various costs like labour costs,recruitment costs etc as it

is computerized system.HRIS in IT industries makes things very accurate,efficient

and reduce manpower

● Lack of proper planning within an organization also slows the adoption of human

resource information system.

● In IT industries, HRIS helps the organizations in planning their human resources with

both quantitatively and qualitatively.

● The study concludes that involvement of staff in process of implementing HRIS is

key for the adoption of human resource information systems. Organizational culture

greatly affects adoption of HRIS.

● And also most of the IT industries are not completely implemented with HRIS. Few

of the small and medium industries are still need to be focused.

● Organization IT planning is a critical factor for HRIS implementation. The business

size of the organization also plays a key role in the adoption HRIS.

VIII Acknowledgements

I would like to extend my esteem gratitude to my guide S.A.Hussain who helped shape this

research as it progressed.My feeling conjointly delivers to any or all the time unit HR

specialists and executives of organizations who took time off their busy schedules to retort to

the questionnaires.My sincere thanks to my members of the family and my friends for their

encouragement, guidance, and recommendation for having in agreement to insure this study.

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http://www.ehow.com/facts_5785832_definition-human-resource-information-system.html

http://www.hrpayrollsystems.net/hris-system-impact-to-companies/

http://www.scribd.com/doc/26766834/Human-Resource-Information-System

http://www.comparehris.com/Human-Resource-Information-Systems-/

http://www.studymode.com/essays/The-Role-Of-Human-Resource-Information-435591.html


http://www.businessdictionary.com/definition/Human-Resource-Information-Systems-HRIS.html#ixzz2geQaKtsy

http://www.businessdictionary.com/definition/Human-Resource-Information-Systems-HRIS.html#ixzz2geQaKtsy



http://www.hrpayrollsystems.net/hris

A STUDY ON HRIS AND ITS IMPACT ON IT...

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