Role of HRIS in Strategic Human Resources decisions in Banking sector of Pakistan

Role of SHRIS in Banking sector of Pakistan

Chapter No. 1

1.1 Introduction

In todays knowledge-economy, organizational success depends tremendously on the performance of human resource management (HRM) (Lippert and Swiercz, 2005; Troshani et al., 2011).

Furthermore, Human Resource Management (HRM) has recently turned its concentration on knowledge sharing and strategic workforce analysis and has been increasingly evolving into a significant contributor on the organizational strategic management (Rodriguez and Ventura, 2003; Troshani et al., 2011).

This turn in HRM practices is partially attributed to technologies enablers, such as human resource information system (HRIS) which consists of systematic procedures and functions to acquire, store, retrieve, analyze, manipulate, and disseminate relevant information concerning organizational HR (Lippert and Swiercz, 2005; Troshani et al., 2011).

To increase the effectiveness of HRM, organizations are becoming more and more dependent on HRIS (Ball, 2001; Lippert and Swiercz, 2005; Troshani, et al., 2011). At the functional level, HRIS can keep track of employees', applicants', and contingent workers' qualifications, demographics, performance evaluation, professional development, payroll, recruitment, and retention (Harris and Desimone, 1995; Troshani et al., 2011).

With HRIS, the administrative efficiency maintains faster information processing, improved employee communications, and greater information accuracy (Overman, 1992; Beadless, et al., 2005), lower HR costs and overall HR productivity improvements (Beadles et al., 2005; Dery et al., 2009; Wiblen et al., 2010; Troshani et al., 2011).

Strategic value can be derived using HRIS tools that assist decision-making concerning vital HR functions (Farndale et al., 2010; Troshani et al., 2011). For example, an HRIS can be considered as a tool that provides strategic planners with the needed information enabling them to forecast future workforce demand and supply requirements. Moreover, it can be considered as a tool that helps employers in retaining the right employees. This can be done by paying them competitive salaries compared to the market, and training them to develop their skills and abilities to carry out their existing and future jobs.

The subject of the strategic significance of human resource management in organizational tactics and model gives a cavernous venture into one of the basic success factors that successfully support the achievement of leadership and objectives of management. This paper provides a depth study into one of the major Component of modern human resource management that is identified as Human Resource Information System.

1.2 MOTIVATION FOR STUDY:The purpose of this study is to explore the role of Human Resources Information System on strategic decisions in banking sector of Pakistan. Previous studies have focused mainly on the developed countries and there is less work done on measuring the impact of Human Resources Information System on Strategic Human resources decisions in less developed countries like Pakistan. In less developed countries, most of the firms are not yet quite familiar with the importance of Human Resources Information System and thus dont pay much attention on the HRIS and SHRM. Today the Individuals have an overabundance of understanding about organizations. Thus it is important to study Human Resources Information System and its impacts on the SHRM and on profitability of firms in these economies.

1.3 Research Objective

This study explores the role of human resource information systems (HRIS) in strategic human resource management (SHRM).

The objective of this study is to draw a conceptual framework for examining the direction of the linkage between Human Resources Information System, SHRM and Impact of HRIS on Financial Performance and apply the framework on the banking sector .The broad objective of this research study is to examine the role of Human Resources Information System in SHRM and impact of HRIS on the financial performance of banks however the Specific objectives include:

To evaluate the relationship between Human Resources Information System and SHRM.

To evaluate the impact of Human Resources Information System on the performance of banks in Pakistan

1.2 RESEARCH QUESTIONS:

1. Do your Banks use HRIS?

2. Do HRIS can be applied in making strategic decisions?

3. Do your bank use HRIS in Strategic HR decisions?

4. Is there exists a relationship between HRIS and Strategic HR decisions?

5. To what extent HRIS is used in making Strategic HR decisions ?

6. What is the future of HRIS in Strategic decisions in Banks?

1.4 PROBLEM STATEMENT:

In less developed countries like Pakistan, most of the firms are not familiar with the importance of Human Resources Information System and thus dont bother to pay much attention on the Human Resources Information System and its consequences. So its important to study Human Resources Information System and its contribution towards the strategic Human resources decisions and its impact on profitability of firms in these economies. Past studies focused mainly on the developed countries and there is less work done on Human Resources Information System in less developed countries like Pakistan. It is evident from the extensive review of literature that Human Resources Information System and SHRM still lack qualitative and quantitative explanations and require further comprehensive probing. The impact of HRIS on Financial performance is also under studied.

1.5

SIGNIFICANCE OF THE STUDY:

The world has become a global village and it is necessary for the firms to apply new technologies in order to meet competition in the global economy. Firms grow and require long term strategic decisions and Human resources are considered as a valuable Capital of the organization , with effective HR organizations can earn profits because of globalization. Human Resources Information System can positively effect both in long term as well as the short term performance of Banks. Islam et al, (2012) discussed that companies operating in multiple nations like multinational organizations must apply HRIS in different fields on their operations. Under these circumstances, Human Resources Information System can increase not only long term and short term profitability but also the sustainability of the company as well as enhance the reputation of the organization.

Organizations are engaging in Human Resources Information System because for the last three decades some companies are taking competitive advantage by engaging in Human Resources Information System and use HRIS methodologies as an important part of strategic planning to obtain public support for their presence in the global markets.

1.6 Structure of the study

The first six chapters are reserved for the theoretical part of the study. Chapter 1 is the introductory part. It consists of the study background, the research objective, and the research methodology. This is just to give a snapshot of the subject matter and the premise of the study. Chapter 2 presents an in-depth discussion on the HRM concept by touching on the various definitions, processes and other related issues. Chapter 3 also throws light on HRIS its development, the various definitions, and other related issues. Chapter 4 is about Strategic Human resources management , Chapter No. 5 is about Intergration between SHRM and HRIS. Chapter No. 6 shows the applicaiotn of HRIS and SHRM in Banks. In each chapter the literature review regarding study is provided.Consequently, chapter 7 includes research methodology and presents hypotheses development. This is to illustrate how the research questions and the hypotheses were developed, including the questionnaire. In addition, the chapter illustrates how the data will be collected, sample technique to be used, statistical methods, and discussion of validity and reliability of the data. Consequently, chapter 8 evaluates the empirical results by analysing the findings of the individual hypothesis taking into consideration the various questions allocated for each hypothesis.

Finally, chapter 9 presents, the implication of the results, conclusion, and offers suggestions for future research.

Chapter No. 2

Human Resources Management

2.1 Literature ReviewHRM is derived from the phrase Personnel Management (PM). The idea of PM evolved following Second world war in 1945 as being a separate research coming from other managerial operates along with help to make the actual employees operate right into a skilled managerial side.

It can be stated that the classic operation regarding Personnel administration is usually to hire along with fire regarding staff members in a business, in conjunction with earnings supervision along with Teaching in some degree. There has been conflict regarding renovating role regarding PM into straight into HRM (Tyson, 1985), that's the reason this got a little while to replace PM together with HRM (Lloyd along with Rawlinson, 1992).

Some writers in business management advocated that since there is similarity of functions between PM and HRM therefore no significant difference do exist in their application. (Beer and Spector, 1985).

The rapid development in business world and introduction of technology lead to fresh ideas, new concepts, research and philosophies of human resources (Noon, 1992, Armstrong, 2000).

Some writers on Personnel management and Human resources management said that the two concepts are old wine into new bottle with a different label (Legge, 2005). Whether HRM is well thought-out to be unlike than personnel management is a constant question on both its meaning, concepts and practices (Marchington & Wilkinson, 2002; Legge, 2005).

New horizons of Human resources are more directed towards strategic vision and compared to stressing on traditional approach of human resources.

Strategic horizons include team-based job designs, flexible workforces, quality improvement practices, employee empowerment, and incentive-based compensation. (Huselid, Jackson and Schuler, 1997).

Today we are living in a global economy. There is a rapid change in business environment and operations each day and even each hour. The Human resources are mainly responsible for success of any business enterprise (Lippert and Swiercz, 2005). According to (Dessler and Al Ariss, 2012), HRM helps human resources of an organization in performing different process thus leads to an integration to overall strategy of an organization. Competitive advantage can be attained by applying Strategic approach to Human resources and thus getting benefit from the abilities of People. (Bratton and Gold 2003).

Business process reengineering has advocated that primary administrative personnel function is to be transformed into Modern Human resources and then Human resources information system. (Cooper 2011, Ulrich 1997).Changing the shape of personnel function to Human resources will provide a better results and ultimately lead to enhance organizational performance (Bowen and Ostroff, 2004; Sheehan and Cooper, 2011) Reengineered functions of Personnel that lead to HRM are planning, recruitment, selection , Appraisal and employee relations, health and safety, Union management and merit rating (Decenzo & Robbins 2010). Furthermore training, participation, merit rating, carrier development are also some aspects of the Human resources. Manager judgment on current and future demand of employees and focus on worker issue, will lead to organization success (Martinsons (1997; and Beulen, (2009).Human resources management is the process of acquiring, training, appraising, and compensating employees, and of attending to their labour relations, health and safety, and fariness concerns (Gary Dessler 2010)

2.2 Defining Human resources Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in theorganization.HRM is also a strategic and complete approach to managing people and the workplacecultureand environment. Successful HRM enables employees to contribute effectively and productively to the overall company objectives track the achievement of the organization's goals and objectives.

HRM is additionally any organizing and total way of managing people and also the work environment tradition and atmosphere. Productive HRM enables staff members to play a role properly and productively on the general firm objectives course and also contributes towards the success on the corporation's ambitions and objectives.

2.3 Importance of Human resources information

According to Gary Dessler (2010) following are some of the some factors that makes HRM viable for every type of manager:

1. To recruit the right person fro the right job.

2. To avoid high turnover rate.

3. To get more motivated employees for an organization.4. To get efficient and effective participation from all sectors of the organization.

5. To maintain a fair mechanism for salary and benefit administration.

6. To have a better relations with the trade union.

2.4 HR OBJECTIVES

HRM is useful not only to organization, and the employees working therein, and also the society at large also find it useful. The objectives can be as under:2.4.1 Organizational Objectives:

HRM is a source to achieve efficiency and effectiveness. It serves other functional areas, so as to help them to attain efficiency in their operations and accomplishment of goals to achieve efficiency.

Acquiring right man for the right job at right time in right quantity, developing through right kind of training, utilizing the selected workforce, and maintaining the workforce are the organizational objectives of HRM.

2.4.2 Functional Objectives:

Now a days that organizations are considered as Internetworked organizations and there is cross departmental functions. HRM performs so many functions for other departments. However, it must see that the facilitation should not cost more than the benefit rendered.

2.4.3 Personal Objectives:

These days Human resources are considered as valuable Human capital. In todays world there is scarcity of essential talent. Employees are encouraged by competitive firms to leave their current job and switch over to them. HRM has the responsibility to acquire, develop, utilize, and maintain employees.

This would be possible only when the HRM helps employees to achieve their personal goals to get their commitment. Creating work-life balance for the employees is a personal objective.

2.4.4 Societal Objectives:Employees working in an organization are also social beings. They have their own needs. They want food, shelter, self esteem and other needs to be fulfilled (Maslow need theory). Since they move in society that is why their social needs must be fulfilled by the entrepreneurs also Governments frame various commercial, industrial, wages, health and safety laws to protect the employees.HRM must see that the legal, ethical, and social environmental issues are given proper attention. Legal issued such as Equal opportunity and equal pay for equal work must not be overlooked.

Social objectives include : a. To help society through generating employment opportunity

b. Building schools and dispensaries

c. Helping women empowerment are the social responsibility issues.

2.5 HR Basic Functions:

On a basic level, human resource management is concerned about recruiting, hiring and managing employees. However, an effective human resource system provides much more to the organization, including organizational culture and make sure proper health and safety services. With an understanding of these components of an HR management system, business owners and managers can effectively structure their business processes. (Jeremy C Bradley, 2013)2.5.1Organizational Culture

Organizational culture is the collection of values, working norms, company vision, habits and beliefs that the business adopt. The HR management system plays a large part in shaping the organizational culture. Setting policies, procedures and company standards seek from employees the behaviors that are acceptable in the workplace. In real meaning, the organizational culture affects the way people do their work and interact with one another and with customers.

2.5.2Planning for Change

The business world changes rapidly. New technology is introduced, employees come and go, and the finances of the company fluctuate. Planning for change means helping employees understand their roles in the bigger scenario of the company. It's about building bridges between departments and managers and getting people to talk about "what-if", Goal Seek, Scenario Analysis type situations. HR takes this information and develops a management plan for disasters, for changes in workflow and for reassuring employees in times of crises or frightening change.

2.5.3 Training & Development

Training is needed at levels of employees, even ones that are highly educated or skilled, require some level of training because each organization runs things in a different way. Policies and procedures need to be firmly communicated to employees as part of their on-boarding process. The HR management system is also responsible for continuing employee development. This continuous education keeps employees' skills fresh so they bring new and innovative ideas to the workplace.

2.5.4

Health and Safety

The HR management system plays a key role in ensuring health and safety in the organization . This can be accomplished through policies and procedures, but the HR function may go a step further to make sure employees understand the risks of certain activities (Garry Dessler 2012).

2.5.5

Recruitment and Retention

Recruitment and retention are vital part of HR management systems. Finding qualified workers, locking up them with the company, training them to effectively do their jobs and providing incentives for further education, benefits and compensation drivers to organizational success and should be constantly on the minds of HR managers.

2.5.6

Professional DevelopmentEffective HR departments allow and encourage the employees with opportunities for growth, leadership trainingand education, which in turn contribute to the success of the company. Sponsoring for career advancement seminars, training,corporate social responsibilitiesand trade shows will make employees feel important and cared for by the team and organization.

2.5.7

Benefits and CompensationA company is more likely to be successful, if itadapts new ways ofproviding benefitsto employees. Some non-traditional benefits that can attract and retain new skilled employees are:

Flexible working hours or workdays,

Extended vacation time,

Paternity leave or childcare

Medical/dental insurance,

Corporate gym membership discounts

Continuing education/skills development

Award & recognition programs

2.5.8

Ensuring Legal ComplianceCompliance with labor, tax and employment laws is a vital part of safeguarding the organizations continued existence. HR has to be aware of all the order laws and policies regarding employment practices, working conditions, tax allowances, required working hours, overtime, break times, minimum wage, and discrimination policies as noncompliance can affect productivity and ultimately, profitability of the company.

2.6 CORE COMPETENCIES OF HR MANAGER

2.6.1

Negotiation Skills

Effective human resource managers have communication and relationship skills. This skill enables them to negotiate win-win situations for the company and the employees. Irrespective of its size each business has certain boundaries on its budget for salary, benefits and placement Workers are also a social being , a part of society so they have certain needs . Human resource managers get information about the needs and even unspoken desires of employees and help the company fulfill those requirements. They know creative ways to accommodate each partys needs.

2.6.2

Job Knowledge

Human resources is such a function that it has to follow and observe many rules and regulations like labor laws, safety concerns, health issues and local, state and federal policies that change regularly. An ability that must be available in successful human resource managers is the ability to stay updated on legislation related to employment and to be cognizant of violations, harassment or hardships that employees faces. The dissatisfaction many workers feel on the job is due to conditions that are hard to detect Core competencies relating to detailed job and industry knowledge help human resource managers find and eliminate problems that cause unfavorable working conditions for employees.

2.6.3

Qualified Recruitment

In human resources, qualifying is the process of drilling down potential applicants to the prospects that can best fill all open and future job opportunities. This may include Internal and external sources. External sources includes finding candidates from college campuses, other companies or people who hold certain interests and skill sets.

2.6.4

Effective Training

The human resources department is often responsible for creating the training programs that help employees fulfill their daily job functions, advance to other positions within the company or respond well to company changes and industry shifts. Human resource managers must have the ability to foresee the training needs of their company and develop materials that a wide range of employees will respond well to. With a range of learning styles and interests in the workforce, human resource managers must tailor workshops, communication and training to meet employee needs.

2.6.5

Influential Power

Leadership, or the ability to influence people, is a core competency of human resource managers. They must be able to motivate employees and show them how to do extremely well at their jobs, grip change and make ethical decisions. During difficult situations in a company, such as new management or major layoffs, a human resource managers ability to train and influence employees is essential to a companys productivity and to individual employees job satisfaction.

Chapter 3HUMAN RESOURCES INFORMATION SYSTEM (HRIS)3.1 Information system:

Information system is an organized combination of people, hardware, software, communication network and data resources that collects, transforms and distribute information in an organization to the end users.Information system may be Manual or computer based. Information system plays three vital roles in an organization:

1. Supports business operations and processes.

2. Support decision making process.

3. Supports to get a competitive edge or advantage (James A. O Brien 2009).

3.2 Human Resources Information System (HRIS):

Electronic human resource management is the process a company adopts in integrating its human resource department with information technology specifically designed to help with tasks associated with human resources. By doing this, businesses can streamline its human resources, or HR, departments and become more efficient in terms of both costs and production. Different tasks that can be handled by electronic human resource management, or E-HRM, include staffing, training, and payroll. HRIS can handle various time-consuming jobs, allowing HR employees to save time on those tasks and concentrate on strategic maneuvers designed to improve the business.

Human resources departments are of utmost importance to companies around the world. These departments are responsible for communications between management and employees. Their efforts can make a content, satisfied group of workers and a avoids a bunch of unhappy employees. Taking care of the employees various needs can be difficult when all of the technical tasks of HR management must be performed as well. That is why many companies have begun the process of installing various forms of electronic human resource management to help out their HR managers.

3.3

Literature Review

There seems a rapid growth in HRIS since 1960 (Lederer 1984). In Late 90s about 60 % of the Fortune 500 companies used HRIS to perform HR daily functions.

Scope of HRIS has enhanced from administration function to strategic and even decision making functions that assure competitive position of an organization (Broderick and Boudreau, 1992; Kossek et al., 1994; Kovach et al., 2002).Managers in order to increase efficiency and effectiveness of HRM depends on HRIS(Lippert and Swiercz, 2005; Ball, 2001; Troshani et al., 2011).

HRIS helps to promote Intra employee communication through Corporate intranet it promotes communication, efficiency, accuracy and lower HR cost and thus increase effective production. (Beadles etal., 2005; Dery et al., 2009; Wiblen et al., 2010; Troshani et al., 2011).

HRIS helps in HR and Business management (Shrivastava and Shaw, 2004; Hussain et al., 2007; Lepak et al., 2006; Beulen, 2009).

Labour based HRM has shifted to technology based HRM. This shift is permanent and produce much better results in operational HRM,(Florkowshi and Olivas-Lujan, 2006; Beulen, 2009)HRIS is associated with organization objectives of considering HR as valuable capital. To achieve organizational goals an organization has to develop and manage a valuable Human capital strategy. (Mayfield and his associates (2003)Tannenbaum (1990) defines HRIS as a technology-based system used to obtain, accumulate, operate, analyze, recover, and allocate significant information regarding an organizations human resources.

Kovach et al., (1999) defined HRIS as a systematic method for collecting, storing, maintaining, retrieving, and validating data needed by organization about its human resources, personnel activities, and organization unit characteristics. Also, HRIS figure an combination between human resource management (HRM) and Information Technology.

The human resources information system function involves recruitment, placement, evaluation, compensation and development of the employees of an organization.(James A O Brien 2005)

The goal of HRIs is the effective and efficient use of the human resources of an organization.

Mayfield and his associated has stated that there are seven components of HRIs as shown in figure 1.

Figure 1 : HRIS; Casico & Mayfield modelThese components may be considered as primary components of HRIS. These components established an Integration between various aspects in relation to organization sustainability.

In 2006, Casico used Mayfield model. He divided this model into two parts. The 1st part relates to HR practices directly involved with organizational employees. There are personnel development, communication and integration, records and compliance, HR analysis.

1. Recruitment, selection and hiring.

2. Job placement.

3. Performance appraisal

4. Employee benefit analysis.

5. Training and development

6. Health, safety and security

The 2nd part consists on :

i. Strategic integration.

ii. Forecasting and planning.

iii. Knowledge management.

Theses represent HR role in an organization generally and strategic Human resources management in specific organization.

3.3.1 STRATEGIC INTEGRATION

HRIs helps in improving organizational performance. HRIS helps in achieving business objectives by designing and implementing Internal HR policies (Booteng 2007; Troshan). Strategic decisions and results can be achieved by implementing HRIS Tools and it also helps in making decisions (Farndale et al., 2010; Troshani et al., 2011).

3.3.2 HR Analysis

It means to determine HR needs of an organization. This function makes the organization capable of determining: what quality and quantity of personnel is needed, whether personnel are sufficiently qualified and whether further capacity is need?. So HRIS Tools helps in determine such needs. (Mayfield 2003)

3.3.3Personnel Development

Dessler (2013) describes that personnel development helps organization to decide that in which areas current personnel is not fully acquaint. So some sort of training may be needed or some other method of development must be designed in order to overcome deficiency of employees. Such deficiency can be determined using different methods such as performance appraisal through HRIS (Lippert and Swiercz, 2005).

3.3.4 Knowledge Management

HRIS contributes towards greater efficiency and in turn to more profits to an organization by providing an effective control on basic data on personnel. HRIS is developed to promote knowledge of HRM (Remenyi, 2005). HRIS also provides a way to organization learning by providing a better mechanism of Feedback and Feedforward, intrabusiness communication and decision making. (Argryis and Schon, 1996; Mayfield, et al., 2003).

3.3.5 Communication & Integration:

Communication within an organization provides healthy relationship between managers and employees. This healthy environment helps to promote an organization as a whole. When all the information is send and received right on time and place employees are in better position to perform their duties. (Mayfield, et al., 2003).3.3.6 Forecasting and Planning

This function is used to convert HRIS analysis to determine future personnel needs of an organization (Mayfield, et al., 2003). HRIS helps in determining workforce requirement and supply by providing on time data on demand and supply (Lippert and Swiercz, 2005)

3.3.7 Records and Compliance

Record keeping is also an important function of HRIS. It serves two fold aspects one is to meet legal requirements and second is to provide necessary on time information. This record keeping also leads to a valuable contribution to knowledge management. (Mayfield, et al., 2003)

3.4Supportive role of HRIS

The human resources information system is designed to support:

1. Planning to meet the personnel needs of an organization.

2. Development of employees to their full capacity and potential.

3. Control of all personnel policies and practices. (Mayfield 2001)Application of computer in various fields of business has changed the scenario of business operation. Similarly HRM is also remarkably effected by the Information based technology (Mathis & Jackson 2010). Originally it was used to:1. Prepare paychecks.

2. Payroll report preparation.

3. Maintain personnel records.

4. Analysis and use of personnel in an organization.3.5

OBJECTIVES OF HRIS

1. To provide complete, up-to-date information about people and job.

2. To provide personal information at a reasonable cost.

3. To provide a security mechanism of data by using password and other authentication process.

4. To address ethical and moral Issues of Personnel privacy of data.

5. To provide automated services to HR department in performing their tasks.

6.To generate valuable information to HR department and contribute towards the strategic decisions of the organization.

(Rao 200)

3.6NEEDS OF HRIS FOR BUSINESS (Thite and Kavanagh, 2011).

HRIS helps in gathering and maintaining a compact, concise and comprehensive database, which enables organization to establish link between departments , divisions and units. It also increases the speed with which information is dispersed. HRIS leads towards improving the quality and time of decision making by contributing towards operational HR, knowledge management and record keeping. Administrative aspect of Human resources is also facilitated by HRIS. A variety of reports are generated under HRIS that leads towards the effectiveness and perfection in performing HR functions.

HRIS enables managers to separated HRM from Transaction processing system thus ultimate focus is shifted to SHRM.

3.7 TYPES OF HRIS

There are following types of HRIS:

1. Operational HRIS

2. Tactical HRIS

3. Strategic HRIS

Figure 2 Types of HRIS3.7.1

OPERATIONAL HRIS:

Operational HRIS collects the data about HR operations like organizations workforce position and Government regulations. In turn operational HRIS helps managers to perform daily routine functions and facilitate concurrent decision making.Parts of Operational HRIS

3.7.1.1Employee Information System

All the data that is relevant to an employee must be kept by Human resources department. So HRIS aids to maintain a dynamic Database that contain information like Employee name, Address, qualification, Sex, Marital Status, work experience , years of Service and seniority etc. All this is achieved through employment information system.3.7.1.2Positional Control Information SystemThis system is regarding Job Analysis. A job is an assignment entrusted to an employee. The basic purpose of Position control system is to identify each job, its title, classification and current status of employees. This system also guides about vacancy positions in an organization. So that managers can make decisions to fill the vacancies that are probable by day or tomorrow.3.7.1.3Selection and Placement Information System

For filling a vacancy an organization pools the potential human resources. For final selection some screening is needed, after screening out the selected candidates are to be placed on their job and job orientation comes into action. All of these functions are facilitated by Selection and Placement Information System.3.7.1.4Performance Appraisal System.

Three importance components of this system are:

a. Documentation of employee performance.

b. Methods used to measure performance.

c. Reporting system

On the basis of various reports generated by this system a manager is able to make any of the following decisions:

1. To retain the employee

2. To terminate

3. To promote

3.7.2

TACTICAL HRIS

Tactical HRIs is concerned with decision making. Following are undertaken in this regard:

1. Recruitment decisions

2. Job analysis

3. Job design

4. Training

5. Career Development

6. Compensation

3.7.2.1Job Analysis & Design

a) Job Analysis The procedure for determining the duties and skill requirements of a job and kind of person who should be hired for it. Job analysis has two components i.e.

Job Description

Job specification

b) Job Description: Job description is the process through which we determine the duties, responsibilities, supervisory responsibilities and behaviours required to perform the job c) Job Specification: Job specification is the process of determining the job related skills, abilities required for a job Job description and job specification are the two important outcomes of this system. These help managers in many key decision making process. This system captures information from forces that are external to an organization like Trade union, competitor, Government, pressure groups, media and like.

Interviewing the supervisors are also part of this system, these help the management to make effective job specification and description decisions.

3.7.2.2.Information system for Recruitment

The inputs to this system are:

a. Vacancy positions.

b. Duty requirement of different positions

c. List of planned employee retirement, transfer, promotion and termination.

d. Reports on employee appraisal

With the help of these reports an organization can easily prepare a recruitment plan. (Gatewood 2008)3.7.2.3Compensation and Benefit Information system

Satisfied employees are a valuable human capital for the organization.

Compensation and benefit Information system is used to motivate the employees. This system also helps the employee to understand how the benefits do work. This system also defines metrics that employee should qualify to get any benefit. (Dessler 2013)

3.7.2.4 Training and Development Information system

Trained employees perform their assignments more easily and in delicate manner with efficiency. So result oriented tasks are very well performed by trained employees. Position control system and job analysis are the tools that helps to determine the training and development needs. According to Houselied et al . 1997.SHRM is aimed at to find strategic HR needs of firm and contributes towards career needs.3.7.3

STRATEGIC HUMAN RESOURCES INFORAMTION SYSTEM

In the very beginning the concept of Personnel management was evolved. It was turned into Human resources then further development turned it into SHRM. SHRM is aimed at using human resources in such a way to make an organization capable of achieving competitive edge in the market.

SHRM set new magnitude of Human resources and these are attempted to meet global challenges and are quite different from traditional Human resources functions.

SHRM is organized in such a way to integrate with strategic policies of an organization.( Househeld et. Al 1997)3.7.3.1 Information Systems for Workforce Planning

Organization engaged in continuing strategic planning, like planning to enlarge into new market territories , built new manufacturing untis or or offices in new locations and wants to add new products or product lines will certainly want and need information about the quantity and quality of the available workforce to achieve these goals.

Information systems that maintain workforce planning provide this function.

3.7.3.2Information Systems Supporting Labour Negotiations

Information collection from many of human resource information systems regarding craft, maintenance, office, and factory unions is essential part of negotiation with employees. Various types of reports are demanded by the Human resources managers responsible for negation in order to make an analysis of union position, current market position and organization own standing.

3.7.4

Comprehensive and Computerized HRIS:

In the last few years, the software industry has produced several products that organize the various human resource information systems into integrated software that is referred as human resource information systems or HRIS, software. HRIS may be a part of a whole ERP software and part of Big bang or it may be applied separately as independent software as called as Slam dunk . In general, the computerization of HRIS has resulted in an integrated database of human resource files like position files, employee files, job analysis and design files and many other human resource files are constructed in a coordinated manner using database management systems software so that application programs can produce reports from any or all of the files.

3.8

Limited-function HRIS:

Different off the shelf sofwares are available in the market that facilitate the HR managers. These software have limited capabilities, since there are general purpose software, so companies develop special purpose software in order to get full benefit from HRIS. So there must be a system analyst to analyze the HR needs of an organization, then programmer to flow chart the process and develop syntax for programming and knowledge worker(manager) to manage and key punch operator to operate it properly. (Effirin Turban 2007)3.9

Training Software

Many training software packages are available for all types and sizes of computers to provide online training for employees. They include

Management training software

Sales & Purchase training software

Spreadsheet solution training software Data Base Management training software Word processing training software

These software packages can be used in computer-based training programmes designed by human resource department for training specific employees in group and independent study programmes. Computer-based training provides two benefits :

a. Facilitates and simplify the trainer jobb. Facilitate trainer to guide on job training to individuals.

Chapter Summary :

A Human Resources Information System, is a system that lets you keep trail of all your employees and information about them. It is usually done in a database or, more often, in a series of inter-related databases.

Management of all employee information.

Reporting and analysis of employee information.

Company-related documents such as employee, emergency evacuation procedures, and safety guidelines.

Benefits administration including enrollment, status changes, and personal information updating.

Complete integration with payroll and other company financial software and accounting systems.

CHAPTER NO. 4

STRATEGIC HUMAN RESOURCES MANAGEMENT4.1 SHRM SHRM means formulating and executing HR policies and procedures that produce the employees competencies and behavior that company needs to achieve its strategic aim (Garry Dessler 2012)SHRM is:

a. Outcome

b. Process

c. Combination of a & bSHRM provides a way to accept HR functions as a long life term strategic partner in establishing and implementing HR activities such as recruitment, selection, training, compensation and like other.

4.2

Literature Review

Strategic Human Resource Management (SHRM) has developed considerably in the last years. Schuler, Dolan and Jackson (2001) described the progress of SHRM from personnel management in terms of a two-phased growth: first from personnel management to traditional human resource management (THRM), and then from Traditional Human Resources Management to Strategic Human resources management.

Strategic Management stress is that a firms Human resources must set on new priorities so that productivity can be increased , performance can be improved thus competitive advantage can be achieved.

New horizons of Human resources are more directed towards strategic vision and compared to stressing on traditional approach of human resources.

Strategic horizons include team-based job designs, flexible workforces, quality improvement practices, employee empowerment, and incentive-based compensation. (Huselid, Jackson and Schuler, 1997).

Wright and Snell 1991, viewed SHRM as a tool to achieve edger over competitors through Human resources.

SHRM is a process of linking business operations and HR ( Ulrick and Lake1991)

Bamberger and Meshoulam 2000, considered SHRM as a value HR which is characterized as a long life, and non tradable resource that leads to competency and ultimately a source of achieving competitive edge.

Innovation and flexibility are two keys that improve performance of business and provide better organizational culture. SHRM is the bridge between HR and strategic goals that guide us to the two factors, innovation and flexibility. Truss and Gratton (1994)HR strategies means the HR Plans the company want to achieve with SHRM. Torrington et al., (2005: 5)

Integrating human resource management strategies and systems to achieve the overall mission, strategies, and success of the firm while meeting the needs of employees and other stakeholders. (Herman Schwind, Hari Das and Terry Wagar)

At times when there is more stress in market is to increase earnings per share ultimately return on equity is increased and this leads to better financial support, there is need of better integration between corporate strategies and SHRM. More sophisticated job designs were developed and much more was expected from HR managers. (Strong et. Al 2003)

4.3 Aspects of SHRM

SHRM has following aspects:

1. Managing HR to improve work relationship and increasing efficiency and business performance.2. Shaping HR policies and practices with business requirements.3. Giving a proper importance to human capital and considering it as valuable as financial and other resources. 4. Enable Human resources to adopt and change with themselves with Global business. Torrington et al., (2005: 5)4.4 DIMENSTIONS OF SHRM

Basically following may be included in SHRM:

1. Business process Re-engineering2. Restructuring3. Leadership4. Workplace learning5. Employee union relationship (Bratton and Gold (2003: 37)4.4.1

Business process Re-engineering

The re-engineering of HR means that we are giving HR a new shape. The functions, the methods, the policies and procedures that we were following in traditional HR now they are given a new shape. Now performance, competitiveness and contributing towards organizational objectives and linking towards organizational strategies are the new domains emerging from SHRM.

In order to meet global challenges high performance commitment is needed from employees. So there is need for decentralization of authority and more autocracy, flexibility and reliance on Information technology.( Hammer, 1997; Hammer and Champy, 1993)Business process re-engineering is a technique that is applied from top level to bottom level and it can be extended to external environment with vendors and customers, I.e. in extended Supply chain. It gives a new shape to the operations that are carried out in an organization and thus leads to strategic advantage (Gunasekaran and Nath 1997).Communication with employees through Corporate intranet, Video conferencing, audio conferencing, web conferencing , data conferencing or any other technique is a part of HRIS that is supported by Group support system, such facilities help managers to coordinate, integrate, collaborate and thus contribute towards the overall business strategy.( Laudon & Laudon 2005)

4.4.2

Restructuring:

It is strategy through which a firm changes its set businesses or financial structure.

This strategy may also includes:

Reducing staff either by termination or attrition

Regrouping tasks to create well designed jobs

Reorganizing work units to be more efficient

It is important to consider current labour market trends (e.g. the looming skills shortage as baby boomers begin to retire) because there may be longer-term consequences if you let staff go.

Job sharing may be another option. Under this arrangement existing workers may be willing to voluntarily reduce their hours, in circumstances where it is expected that the situation is temporary.. The means to success is to guarantee that employees are satisfied with the arrangement, that they authenticate agreement to the new arrangement in writing, and that it meets the needs of the employer. Excellent communication is a requirement for success and that can be achieved with corporate enable Human resources information system.4.4.3

LeadershipOrganizations are composes of human resources and it the responsibility of managers to guide and coordinate their work. Leading also includes motivation, direction, settling conflicts and successful communication (Strassman, 1985)

According to Kotler 1996, the work of manager is to make plan and leaders create a vision. Leaders create and promote motivation among workers to work hard. They create such relationship that binds the workers in a chain to follow the leader. So workers dont even care for material benefits but they follow what their leader guideline is.

Through HRIS employees are motivated since their job assignments are clearly defined and outlined. It is also informed that what are the expected outcome, so we can say that it is getting work done. This leads to better performance and organization is in a good position to achieve its strategic goals. ( Paug 1986).

SHRM and HRIS enables leaders and workers to communicate through corporate intranet and even distinct technologies like Video conferring and web conferring enable them to share ideas and thoughts. In this way a better strategic relationship is established ( James A O Brien)4.4.4

Union Management

Union plays a vital role in an organization. On the one side the strong union is able to solve the employees problems and safeguard their interest and get benefits for their members and other employees from owners and on the other side union is essential for getting motivated and dedicated employees. Coordination provides a increasing efficiency in work performance, so there is need to make a better union management relationship (Dale S. Beach 2005)

In organizations there is need of highly motivated and committed employees thus trade union is a valuable sources available with management to get committed employees. (Bratton and Gold 2003)

Porter model of generic strategies was used to explain HR strategies. (Jackson and Schuler, 1987; Wright and Snell, 1991).Labor management relations are based on mutual trust between labor and management. Establishment of a relationship of mutual consent and mutual trust and respect between labor and management, personnel management is conducted in accordance with four basic principles:

1. Creating a workplace environment where employee can work with their trust in the company

2. Creating a mechanism for promoting constant and voluntary initiatives in continuous improvement

3. Fully committed human resource development

4. Promoting teamwork aimed at chase of individual roles and maximum output from entire team .

So it was necessary to use Information technology to support HR. Ulrich (1997). HRIS has increased the worth of HR managers in organizations. HR was suggested to be strategic partner in an organization. (Brockbank (1999). HRIS helps management from very root level of HR functions of recruitment to highly complex decisions of strategic vision.

Chapter Summary :

CHAPTER NO. 5HRM and SHRM Integration:The last decade experienced a flood of knowledge on information technology, its implementation, use and benefits, this has been an area where a considerable amount of research was conducted (Robinsson, 1997).

Development of internet, e-business, changing nature of WWW has brought a flood of information and innovative management & business models over the information superhighway.

5.1

Literature ReviewHRIS and its role in SHRM depends upon size of the organization, however sufficient amount of research has not done in this regard

(Kinnie and Arthus, 1996). A few case study and surveys do exist on the subject but these are more stress on theoretical prospective. ( Torrington and Hall 2003).

Barney, 1992; Reed and DeFillippi, 1990; Wright and McMahan, 1992

HRIS can make a friendly environment in an organization and can win a market leader position by providing help to develop competencies that are firm specific, building healthy social relationships and produce inferred organizational knowledge.

Broderick and boudreau 1992, Greengard 1999, Groe and Pyle 1996:

They found a positive and significant correlation between HRIS and strategic human resources functions.

Oldach et.al (1993) Oldach et.al added that Information technology can be implied for strategic purposes and it enables strategic decisions to be more effective, timely, cost saving and leading to strategic advantage.

Broderick and Boudreau, 1992; Greengard, 1999; Groe and Pyle, 1996; Hatlevig, 1995; Wilcox, 1997).

The study suggested that application of IT to Human resources besides other factors there are two basic impacts :

a. Enabling Impactb. Time shifting ImpactLado and Wilson (1994)

Lando et al., (1994) in conducted a study title as Human Resource Systems and Sustained Competitive Advantage:

They found that core competencies that an organization posses might lead to continued competitive advantage. They conducted a two fold study addressing the questions like:

a. How HRIS facilitated the development and utilization of organizational core competencies b. How HRIs could destroy those core competencies or inhibit their exploitation. They focused on theoretical aspect of strategic management and found that HRIS could help to get competitive advantage in the hostile competitive markets.

Karke (1999)

Karke connected industrial revolution with Information technology reveloution in terms of expected scope and the effect on the economy and society. He called it digital economics and a Network Economy. Three has been three waves of applicaton of information technology to the business world and these lead to somewhat electronic strategic supply chain in the end and much more is expected.Whittington (1999) observed :

a. Degree of participation in decision making process by mid-level managers

b. Sharing of information between top and bottom level managers.

Rouda and Kusy (1995) examined the influence of new information technology based human resource practices on the strategies of organizations.Ball in 2000 conducted a survey The use of Human resources information system, that tried to cover some basic issues of embracing of information technology for solving key human resources functions in small organizations. The three basic areas: Personal, training and recruitment was observed by the survey and Ball concluded that the size of the firm has a greater impact on implication and benefits of HRIS. The larger the organization is the better is the role and impact of Human resources information system in Strategic decisions.Kovach et.al 2002

HRIS is used to provide data to companies for two purposes, one to make effective recruitment and secondly for strategic decisions like retention and integrating with overall corporate strategies.

Baran, Karabulut, and Pekdemir (2002)

Baran et al., (2002) conducted a study The new HR practices in changing organizations an empirical study in Turkey.

He conducted a longitudinal study comprising a period of 1995-1999 regrarding manufacturing companies following ISO 9001-9002 certificates received from the Turkish Standards Institute (TSI).

He evaluated the differences in HR practices and the special effects of new HR practices on organizational change.

Baran et al., (2002) found no difference between human resources practices performed in different sectors of an organization. They observed a low but positive correlation between Human resources practices and organizational changes.

Leon and Leon (2002) added that Information technology can be applied to get competitive advantage by using an efficiently applying IT to perform business operations and solve the problems.

Gardner, Lepak and Bartol (2003)

Gardner et al., (2003), in their research work, Virtual HR: the impact of information technology on human resource professional, researched the impact of Information technology on Jobs performed by human in an organization.

The study used primary data about HR professionals working for a sample of HR executives and they tried to find the answer to the following questions:

a. How information generated through information technology is handled by Human resources professionals.

b. What are expectations from HRIS.

c. What is the degree of reliance on information generated by HRIS.

They found that HR professionals are facilitated by information technology, they are more independent in performing their duties. They also observed that time is a also an important factor in implementing HRIS and the Professional who spend more time on Information technology solutions get better results.Barry (1998) and Elswick (2002)

They concluded that Information technology alone can do nothing. IT cant enforce people to share knowledge and it doesnt make people ambitious to acquire new knowledge. It requires cooperation and coordination from employees to embed. Technology can assist an organization and lead to better strategic decisions if it has:

a. Aspirations

b. Skills

c. Interest focused on knowledge Dibrell and Miller (2002)

According to them Information technology is a source of bringing change in the basic structure of an organization. The span of control and level of authority within the organization were reduced by application of computers in an organization, resulting more savings in cost, automation of workflows and leading to strategic advantage. Gerardine DeSanctis, 1986: 15; Tannenbaum, 1990; Hendrickson 2003:According to them, HRIS facilitates applications such as employee selection and placement, payroll, pension and benefits management. HRIS enhances administrative efficiency and produce reports capable to improve decision-making and leads to competitive advantage.Ordnez de Pablos (2004)

Ordnez de Pablos (2004) carried out a study on Human resource management systems and their role in the development of strategic resources.

He empirically verified that there exists linkage among human resource management, organizational learning and knowledge management.

He concluded that creation and development of knowledge based resources and integration with HRIS might lead to continued competitive advantage His study advocated another research that deducted Competitive advantage can be obtained through an integration between HRIS and strategic resources. (Pfeiffer, 1994; Miles and Snow, 1992; Youndt and Snell, 1998; Youndt et al., 1996).

Gasc, Llopis and Gonzlez (2004)

They studied a Spanish telecommunication firm, Telefonica and put their finds in the form of The use of information technology in training human resources-

They tried to study the impact of Information technology on human resources management. They specific area they experienced was training policy.

They found very good results of application of Information technology on human resources, the benefits found and elaborated were could not be found without Information technology. They found the employees more feasible in using easy to operate information technology based applications. The employees were learning and enjoying the training models. They have greater access to training materials and more simulated screens to observe then ever before.

This leads to an improved performance on the part of employees and they were able to play their roles towards strategic policies of an organization.Hussain et al., (2006)

Hussain et al., (2006) studied the use and impact of human resource information systems on human resource management professionals. The intention was to evaluate and compare the specific areas where information technology can be applied. They also tried to conclude whether HRIS practices was strategic or not. Strategic HRIS is considered to be a value addition for the organization, and also to observe impact on professional standing for HR professionals.

A questionnaire survey and in depth semi structured interviews were used to collect data by the researchers.Florkowski (2006)

Florkowski (2006) conducted a study, The diffusion of human-resource information technology innovations in US and non-US firms, He evaluated eight different information technologies such as

HR functional applications, integrated HR suits, IVR1 systems, HR intranets, employee and manager self-service applications, HR extranets, and HR portals. But the area he selected and confined his study was North America and Europe.He concluded that there is a positive impact of human resources information system on performance of European and North American firm.

HRM and SHRM are correlated on four policy goals, which are following (Guest 2003):

1. Strategic intensions:

To make an assurance that HRM and SHRM planning are in line. There is complete correlation between them.

2. Commitment:

To ensure that HR are fully motivated, bound committed to achieve organizational goals.

3. Flexibility:

Providing autocracy and encouraging creativity in an organization. Flint et al., (2005). Training and re-training (Porter 1996)

4. Quality

Quality of HR to adopt change and show better performance in changing circumstances (Bartlett & Ghoshal, 2002).

In order to meet global challenges there must be integration at levels of corporate strategies. So HR policies must be in integration to company strategic decisions. So that HR must be ready , properly equipped, qualified, trained and diversified to accept any global change. (Bratton and Gold (2003: 37)

SHRM is focused on establishing consistent policies and practices that leads HR to contribute towards organizational objectives.

On the basis of above discussion, it is observed that SHRM is such a process that is aimed as designing, linking and implementing such HR practices that lead to organizational long term as well as short term objectives and HRIS is a tool that facilitate to achieve various strategic HR objectives in a more delicate manner.Summary :

CHAPTER NO. 6Human Resource Information Systems in Banking Industry

6.1HIRS

Information technology has effected all the sectors of the business. So Banking sector also has effected with globalization and rapid development and adoption of Information technology.

Now the customers expect more from their bankers, they want an active and participative role on the part of bankers.(Panayotopoulou et al., 2007) The level of satisfaction of customers depends on customer services provided by banks and their this stiff competition and struggle for customers.

A customer do require an active communication with bank employees, so the banks are there to get benefit from Information technology and shape their human resources with changing world needs and adoption Human resources information system to get competitive edge over their competitors.HRIS has changed banks financial as well as non-financial processes from manual to automatic computerized systems (Singh et al., 2011). There are back end and front end employees both are integrated through information system and in internally via Human resources information system capabilities.In the very beginning, HRIS was mostly used to prepare Salary and other financial benefits regarding bank employees. But with the passage of time HRIS was also used for non financial support like recruitment, selection, training, union management and communication.

HRIS is now being used not only for administrative purposes but also for strategic and business decision- making purposes (Broderick and Boudreau, 1992; Kossek et al., 1994; Kovach et al., 2002; Ngai and Wat, 2006).

The key concerns regarding implementation of HRIS in banking sector are: a. Whether HRIS depend on size of bank that may be measured in terms of number of employees? b. Whether the benefits expected form use of HRIS are more than the investment that is made for installing and running a successful HRIS.

c. Does the bank has sufficient funds to spare for HRIS.

One of the major barrier to the adoption of HRIS is the insufficient financial support (Ngai and Wat, 2006). d. How is HRIS developed, internally or externally? e. IS personnel have some technical skills, resulting from training and experience, that allow them to perform IS functions. (Alvarez-Suescun, 2007).

f. What are different types of functions that are supported by HRIS? g. Do the Bank employees are active users of HRIS or passive.

According to Panayotopoulou et al. (2007) there are several effects of technology on six key HR processes in banks, namely:

HR planning;

Acquiring HR (recruitment and selection);

HR evaluation (performance appraisal);

Communication;

Rewarding HR (performance appraisal, compensation and benefits); and

Developing HR (training and development, career management).

6.2Scope of HRIS Applications in Banks Strategic Decisions:

The scope of HRIS in Banks can be discussed under different sub systems as follows:

i. HR planning This system has the function of performing studies provide data on the firms human resources. Such system consists of two steps: a. Assessing current human resources b. Meeting future human resource needs. It facilitates the HR managers to make sure that they have the right number and quality of human resources in the right places and at the right.

ii. Recruiting and Selection : This system records details of recruitment and selection activities, like; cost and method of recruitment and selection and time to fill the position, and provide necessary information timely to the users.

iii. Leave and Absence Management: It helps to keep and supply proper and timely information regarding HR leave and absence issues. It facilitates to provide comprehensive method of controlling leave and absences.

iv. Skill Inventory: It is used to store and distribute information regarding acquiring of skills and monitoring the skill database v. Learning Management : This system helps to build a framework for organizations to administer and track employee training and development efforts. Learning management systems allow managers to approve training, budgeting and scheduling , setting performance appraisal metrics.

vi. Performance Appraisal: It provides data on individual employee performance appraisal data, like; due date of appraisal, scores etc.

vii: Payroll : This subsystem automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. viii. Benefits Administration : It provides a system for organizations to administer and track employee participation in benefits programs. These typically covers insurance, profit sharing, retirement benefits, stock purchase option and flexible benefits etc.

Chapter No. 7

Research Methodology & Hypothesis Development

7.1SAMPLE AND DATA COLLECTION PROCEDURES 7.1.1Sample

A questionnaire survey was conducted across various banking organization in Pakistan. The banking sector is a very large and emerging sector in Pakistan economy. So 25 banks were selected consisting new and old banks.( List of the banks is available in Appendix E) The Head office of most of the banks expect Bank of Punjab is in Karachi, moreover the Human resources Departments are situated in head offices. Therefore a Postal drop box system was used to get response from respondents. Target group of professionals was Human resources Director, Human Resource Manager, Human resources Coordinators and Assistant Manager Human resources.

Out of 100, 70 questionnaires were returned having response rate of 70%. After the initial scrutiny, 18 questionnaires were rejected due to incomplete information. So, 52 questionnaires were entered into SPSS for data analysis.

In all 16 questions were used these are annexed in Appendix B.

Individual addresses of the respondents were not available therefore their offices were addressed. The research period covers from September 2013 to August 2014.

7.1.2Sampling Technique

The study uses non-probability sampling technique in which data was obtained on the basis of convenience.

7.1.3

Collection ProcedureTwo types of collection techniques have been used in carrying out the research i.e. Self Rating & Super Rating. Self rating technique is most commonly used in business research while evaluating the behaviors and its impact on performance. However, supervisor rating technique have been rarely used in business research due to its complexity in handling the data.

7.2

MEASURES The study have been measured on four different five point likert scales:

1. The responses were taken on 5-point likert-scale with anchors ranging from 1 = strongly disagree, 2 = Disagree, 3 = neutral, 4 = Agree, to 5 = strongly agree

2. Another scale is used for impression management on 5-point likert scale with anchors ranging from ranging from 1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

3. 1= No prospects, 2= Some Prospects, 3=Normal effects, 4= Consistent positive effects, 5= Very much positive consistent effects. 4. Finally, a 5-po int likert scale ranging from 1 = Never, 2 = Rarely, 3 = Often 4 = Mostly, 5 = Always.

7.3Hypothesis Development 7.3.1Research Objectives:

The study is aimed to find the role of HRIS in strategic human resources management in banking sector of Pakistan.

7.3.2Research questions and Hypothesis:

The study is attempted to find the role of HRIS in Strategic Human resources decisions on banking sector of Pakistan. This is the extensive objectives of the study. In order to accomplish this purpose the following research questions were developed:

1Do your Banks use HRIS?

2Do HRIS be applied in making strategic decisions?

3Do your bank use HRIS in Strategic HR decisions?

4Is there exists a relationship between HRIS and Strategic HR decisions?

5To what extent HRIS is used in making Strategic HR decisions ?

a. HRIS is used to support Business process re-engineering

b. HRIS is used in recruitment & Selection

c. HRIS is used in maintain healthy union Management relationship

d. HRIS is used in Providing employment benefits

e. HRIS is used in Training and Development

f. HRIS is used in Decision making

6Do your professional capabilities enhanced by the use of HRIS?

7Whether HRIS leads to enhanced performance ?

8What is the future of HRIS in Strategic HR decisions in Banking sector of Pakistan.

7.3.3HYPOTHESESE DEDVELOPMENT

A number of researchers on HRIS and SHRM agreed that the application of Information technology has brought a revolution in the various operations of business. In Banks the business process re-engineering has changed the whole scenario. Now a customer is not required to stand in queues waiting for his turn to withdraw an amount, it is available to him at his own sweet will 24 hours a day using ATM machines.

Corporate Intranet, Helpdesks, online Job application forms, online interviews, Group support system , Audio conferencing, video conferencing are the tools that has added much to enhance the performance of human resources in a bank.( Turban 2008)

There is increased Information technology supported activities, and that there is positive correlation between more IT and HR tasks automation. HR professionals rely on the HRIS in fulfilling job functions. Thus, for the HR professional there is an increasing reliance on the HRIS to fulfill even the most elementary job tasks (Anderson, 1997).To find whether HRIS is used in Banking sector of Pakistan or not following hypothesis is developed:

Hypothesis 1 :

H0= HRIS is used in Banking Sector in Pakistan

H1= HRIS is not used in Banking sector in Pakistan.

In order to find the solution the following question No. 1 is established:

1. Do your Banks use HRIS?

To show the usage of HRIS , the respondents were asked to articulate their opinion on a 5-po int likert scale ranging from 1 = Never, 2 = Rarely, 3 = Often 4 = Mostly, 5 = Always

Moreover, it is assumed that a mean value greater than 3 will offer support for the Hypothesis 1. A single sample t-test will be made in order to find the difference between mean value and hypothesized mean.

Ravi kalakota(2006) concluded that banks have a strong impact of Information technology, the speed and quality of service delivery has increased. Corporate Intranets have made HR capable of performing their work more easily and in time results can be achieved.

Buckley et.al (2004) concluded that HRIS leads to savings in staffing costs, reduced labour turnover problems and has increased the recruitment choices. This leads to a pleasant impact on profit and ultimately return on investment is also increased.

To conclude the usage of HRIS in Banks for supporting Strategic Human resources decisions following hypothesis is developed:

Hypothesis 2 :

H0= HRIS is used in support of making Strategic HR decisions in Banking sector in Pakistan.

H2= HRIS is not used in support of making Strategic HR decisions in Banking sector in Pakistan.

In order to conclude on the above assumption, following question No. 2 and 3 is established:

1. Do HRIS be applied in making strategic decisions?(QuestionNo.2)2. Do your bank use HRIS in Strategic HR decisions?(Question No. 3)To evaluate the results for question 2, the respondents were asked to articulate their opinion on a 5-Point likert scale ranging from :

1 = strongly disagree, 2 = Disagree, 3 = neutral, 4 = Agree, to 5 = strongly agree

For question3, the respondents were asked to express their opinion on a 5 point likert scale ranging from 1= Not at all, 2= Not, 3= Normal, 4= Much, 5= Very much.

The mean value will be computed, tests be applied and conclusion will be withdrawn.

Adnerson 1997 found that HR professionals use HRIS for filling job vacancies.

Buckley et.al(2004) and Gardner et.al (2003) concluded that Human resources professionals having knowledge of HR are enjoying more liberty in performing their work.

To find integration between HRIS and SHRM as are used in Banking sector of Pakistan following hypothesis are developed:

Hypothesis 3 :

H0= There is a positive and significant relationship between HRIS and SHRM as is used in Banking sector in Pakistan.

H3= There is no positive and significant relationship between HRIS and SHRM as is used in Banking sector in Pakistan.

In order to evaluate the results question No.4 is formulated:

Question No. 4

Is there exists a relationship between HRIS and Strategic HR decisions?

To evaluate the results for question 4, the respondents were asked to articulate their opinion on a 5-Point likert scale ranging from :

1 = strongly disagree, 2 = Disagree, 3 = neutral, 4 = Agree, to 5 = strongly agree

The mean value will be computed, tests be applied and conclusion will be withdrawn.

According to Kovach et.al 2002; HRIS is used to provide data to companies for two purposes, one to make effective recruitment and secondly for strategic decisions like retention and integrating with overall corporate strategies.

Hussain et al., (2006) studied the use and impact of human resource information systems on human resource management professionals. The intention was to evaluate and compare the explicit areas of use .They also wanted to conclude whether HRIS practices was strategic, a concept that is assumed to be a source of value addition for the organization, and also to observe impact on professional standing for HR professionals.Question No. 2 and following question 17 can also be used to make a conclusion:Question No. 17 Whether HRIS has a strong impact on strategic HR

decisions?To find if HR officials view HRIS as facilitating technology following hypothesis are developed:

Hypothesis 4 :

H0= HR officials in Pakistan Banking sector dont view HRIS as facilitating technology.

H4= HR officials in Pakistan Banking sector view HRIS as facilitating technology.

(Question No. 12) Do HR managers consider HRIS as a facilitating technology?To find importance of HRIS in Strategic Human resources management in banking sector of Pakistan.Hypothesis 5:

H0 : HRIS is of great importance in making strategic human resources decisions in banking sector of Pakistan.H5 : HRIS is not of great importance in making strategic human resources decisions in banking sector of Pakistan.Question No. 5

To what extent HRIS is used in making Strategic HR decisions ?

To evaluate the results for question 5, the respondents were asked to articulate their opinion on a 5-Point likert scale ranging from :

1= Not at All, 2= Not, 3= Normal, 4= Much 5= Very much

The mean value will be computed and it is assumed that mean values greater than 3 are accepted, tests be applied and conclusion will be withdrawn.

The impact of HRIS on the following strategic functions are also to be evaluated :

i. HRIS is used to support Business process re-engineering

ii. HRIS is used in recruitment & Selection

iii. HRIS is used in maintain healthy union Management relationship

iv. HRIS is used in Providing employment benefits

v. HRIS is used in Training and Development

vi. HRIS is used in Decision makingFor the purpose of evaluation of results Question No. 6 to Question No. 11 were put.

A correlation Matrix was established, in this matrix:HRIS = Human resources information system.

BPR = Business process re-engineering

Rs= Recruitment & Selection

UM= Union & Management

EB = Employees Benefit Analysis

TD = Training & Development

DM= Decision making

Through HRIS employees are recruited, better working environment is made and motivation is made, since their job assignments are clearly defined and outlined. It is also informed that what are the expected outcome, so we can say that it is getting work done. This leads to better performance and organization is in a good position to achieve its strategic goals. ( Paug 1986).

Communication within an organization provides healthy relationship between managers and employees. This healthy environment helps to promote an organization as a whole. When all the information is send and received right on time and place employees are in better position to perform their duties. (Mayfield, et al., 2003).To find the impact of HR on the professional capabilities of Bankers in Pakistan banking sector following hypothesis were developed:

Hypothesis 6 :

H0= HRIS have a positive and significant impact on the professional standing of Bank Employees working in banking sector of Pakistan.

H6= HRIS have a positive and significant impact on the professional standing of Bank Employees working in banking sector of Pakistan.In order to evaluate the results question No. 14 is formulated:

Question No. 14Do your professional capabilities enhanced by the use of HRIS?To evaluate the results for question 14, the respondents were asked to articulate their opinion on a 5-Point likert scale ranging from :1= Not at All, 2= Not, 3= Normal, 4= Much 5= Very much

The mean value will be computed, tests be applied and conclusion will be withdrawn.To find the impact of HR on the performance of Banks in Pakistan banking sector following hypothesis were developed:

Hypothesis 7 :

H0= Extensive use of HRIS will lead to improved performance in Pakistan Banking sector

H7= Extensive use of HRIS will not lead to improved performance in Pakistan Banking sector

In order to evaluate the results question No. 13 is formulated:

Question No. 15Whether HRIS leads to enhanced performance ?

To evaluate the results for question 15, the respondents were asked to articulate their opinion on a 5-Point likert scale ranging from :1 = strongly disagree, 2 = Disagree, 3 = neutral, 4 = Agree, to 5 = strongly agree

The mean value will be computed, tests be applied and conclusion will be withdrawn.To find the future prospects of HRIS in support of Strategic HR decisions in Banks in Pakistan banking sector following hypothesis were developed:

Hypothesis 8 :

H0= HRIS will have useful involvement in strategic human resources decisions in Banking sector of Pakistan.H8= HRIS will have no more useful involvement in strategic human resources decisions in Banking sector of Pakistan.

In order to evaluate the results question No. 16 is formulated:

Question No. 16 What is the future of HRIS in Strategic decisions in Banks?

There is rapid development in the information technology and its application in business world. Managers found newer models and information system that facilitate their work. Computer based information system has changed the whole picture of performing different tasks. (James A O Brien 2004)

Pakistan is a developing economy, there is need for implementation of newer technologies to speed up the process and to obtain efficiency. CHAPTER NO. 8EMPIRICAL FINDS AND CONCLUSION7.4 Evaluation of the Empirical Results

In exploring the role of Human Resource Information Systems (HRIS) in Strategic

Human Resource Management (SHRM) in banking sector of Pakistan six hypotheses were developed.

Hypothesis 1

H1: HRIS is used in Banking Sector in Pakistan

H0: HRIS is not used in Banking Sector in Pakistan

The results showed a strong support for null hypothesis , that HRIS is used in banking sector of Pakistan. Therefore, we accept the null hypothesis and reject the alternate hypothesis.Hypothesis 2H0= HRIS is used in support of making Strategic decisions in Banking sector in Pakistan.

H2= HRIS is not used in support of making Strategic decisions in Banking sector in Pakistan.

The results in this case also supports for null hypothesis and it is inferred that HRIS supports strategic decisions in banking sector of Pakistan, so alternate hypothesis is rejected.

Appendices

Appendix (A)

(i) Cover Letter

Ghulam Haider

Assistant Professor,

Govt. College of Commerce, Qasim Pur Colony Multan.

gccmhs@gmail.com

5th August 2013

Dear Sir/Madam

SURVEY ADDRESS TO HR DIRECTOR/HR MANAGER/ HR COORDINATOR/HR ASSTISTANT MANAGER IN BANK

I am Ghulam Haider, a student of class Master of Philosophy in Business Administration of Institute of Southern Punjab. I am conducting a survey on the role of Human resources information system (HRIS) in strategic Human resources Management (SHRM) in banking sector of Pakistan.

This research is a compulsory part of my M.Phil thesis. I would therefore be highly obliged if you could spare some of your valuable time to answer the enclosed questionnaire.

I assure that the responses shall be kept confident and this is only to be used in completion of my research and there shall be no ultimate use.

I would be highly obliged if questionnaire could be returned well in time.

Thanking in anticipation;

Ghulam Haider

Enclosures:

1. Questionnaire

2. Self addressed stamped envelopes.

QUESTIONNAIRE

The questionnaire is divided into two parts, part 1st is about Introduction of respondent and part 2nd consists of 14 questions investigating the research questions. In developing questionnaire , Hussain et. Al 2006 model of research questions were considered as a guideline.

Keywords :

HRM= Human resources management

HR=Human resources

HRIS = Human resources information system

SHRM= Strategic Human resources information system

Part 1stIntroductory part

1What is your job title?

2What is the name of your Bank?

3What is your length of service in HR Department?1Less than Five Years

2More than Five Years

3Less than 10 years

4More than 10 years

Part 2nd

Investigation Part

(Please in each case, click the option you think fit, from different 5 point likert scale, given in each case.)

Question No. 1

Do your bank use HRIS in performing its HR operations?

1 = Never, 2 = Rarely, 3 = Often 4 = Mostly, 5 = Always12345

Question No. 2

Do HRIS be applied in making Strategic HR decisions?

1 = Strongly disagree, 2 = Disagree, 3 = neutral, 4 = Agree, to 5 = strongly agree

12345

Question No. 3

Do your bank uses HRIS in Strategic HR Decisions?

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

12345

Question No. 4Is a relationship between HRIS & SHRM?

1 = strongly disagree, 2 = Disagree, 3 = neutral, 4 = Agree, to 5 = strongly agree

12345

Question No. 5What is the degree(extent) of using HRIS in making SHRM decisions

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

12345

Question No. 6

What is the Impact of application HRIS in making Business Process reengineering decision

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

12345

Question No. 7

What is the impact of application HRIS in Recruitment & Selection

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

12345

Question No. 8

What is the Impact of application HRIS in maintaining healthy Union Management relationship

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

12345

Question No. 9What is the Impact of application HRIS in determining and providing Employee Benefits

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

12345

Question No. 10

What is the Impact of application HRIS in Training & Development

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

12345

Question No. 11

What is the Impact of application HRIS in decision making

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

12345

Question No. 12

Do HR Managers consider HRIS as a facilitating technology?

12345

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

Question No. 13Do HR Managers consider HRIS as a new technology?

12345

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

Question No. 14Do your professional capabilities enhanced by the use of HRIS?

1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much

12345

Question No. 15Whether HRIS leads to enhanced organizational performance?

1 = strongly disagree, 2 = Disagree, 3 = neutral, 4 = Agree, to 5 = strongly agree

12345

Question No. 16What is the future of HRIS in Strategic decisions in Banks?

1= No prospects, 2= Some Prospects, 3=Normal effects, 4= Consistent positive effects, 5= Very much positive consistent effects.

12345

EMPIRICAL FINDINGS

LIST OF BANKSIslamic BanksConventional Banks

1.Meezan5.HBL

2.Bank Islamic Pakistan6.Askari Bank

3.Dubai Islamic Bank Pak7.Allied Bank Ltd.

4.Al Baraka Bank8. Bank Al falah

Correlations

What is the extent of application HRIS in making Business Process reengineering decisionWhat is the extent of application HRIS in Recruitment & SelectionWhat is the extent of application of HRIS in maintaining healthy Union Management relationshipWhat is the extent of applicaiotn of HRIS in determining and providing Employee BenefitsWhat is the extent of application of HRIS in Training & DevelopmentWhat is the extent of application of HRIS in decision making

What is the extent of application HRIS in making Business Process reengineering decisionPearson Correlation1.580**.608**.627**.653**.663**

Sig. (2-tailed).000.000.000.000.000

N525252525252

What is the extent of applicaiotn HRIS in Recruitment & SelectionPearson Correlation.580**1.575**.545**.506**.563**

Sig. (2-tailed).000.000.000.000.000

N525252525252

What is the extent of application of HRIS in maintaining healthy Union Management relationshipPearson Correlation.608**.575**1.670**.645**.715**

Sig. (2-tailed).000.000.000.000.000

N525252525252

What is the extent of applicaiotn of HRIS in determining and providing Employee BenefitsPearson Correlation.627**.545**.670**1.676**.723**

Sig. (2-tailed).000.000.000.000.000

N525252525252

What is the extent of application of HRIS in Training & DevelopmentPearson Correlation.653**.506**.645**.676**1.699**

Sig. (2-tailed).000.000.000.000.000

N525252525252

What is the extent of application of HRIS in decision makingPearson Correlation.663**.563**.715**.723**.699**1

Sig. (2-tailed).000.000.000.000.000

N525252525252

**. Correlation is significant at the 0.01 level (2-tailed).

Internetworked organization are such organizations where all the departments are linked through networking.

Cross departmental functions means that all the departments provide access to other departments and share knowledge.

What if: What shall happen if there is a change in current circumstances.

Goal Seek: Seeking a stated objective.

Scenario Analysis: Looking at the two probable outcomes of certain happening.

Order laws regarding business include