HRIS

Module - 6

HRIS - HR Records – HR Accounting – HR Audit –- Maintaining International Employees

HRIS is a method by which an organization collects, analyses and reports information about people and jobs. It is basically a data based system that offers important information about employees in a central and accessible location. The data should be easily retrievable to be used to facilitate decision making processes. This also includes data security and personal privacy which is both an ethical and moral issue.

1. HRIS can process, store and retrieve enormous volumes of data in economical way

2. The records can be updated quickly.

3. The accuracy is high

4. HRIS can reduce fragmentation and duplication of data.

5. Information/ data can be easily manipulated, merged and disaggregated in response to special and complex demands and presented promptly.

Benefits

A computerised HRIS is designed to monitor, control and influence movement of people from their joining to leaving the organization. It consist of :

1. Recruitment information2. Personnel administration information3. Manpower Planning Information 4. Training information5. Health and safety information6. Appraisal information7. Payroll information.8. Personnel research information.

Human resource Accounting is the process of developing financial assessments for people within the organisation and society and the monitoring of these assessment through time. It deals with the economic results of investments in people. It involves:

1. Measurement and valuation of human resources

2. 2. communicating the relevant information to the management and external users.

HR Accounting

HR accounting is defined as measurement and reporting of the cost and value of people as organizational resource. Ti involves accounting for investment in people and their replacement cost as well as accounting for the economic values of people to the organization.

Is HR an asset? The objections are:1. People are not owned like other physical properties2. There is no assurance of future benefits from human

resource.3. It cannot be recognized by tax law.

1. HRA provides useful information to take decisions to chose between recruitment and promotion, transfer and retention etc.

2. It highlights strength and weaknesses of employees

3. Evaluate effectiveness of HR policies and practices.

4. In mergers and acquisition 5. Helps to control HR cost.

Advantages

Audit is defined as the examination and evaluation of policies, procedures and practices in all phases of a business to achieve the most effective administration of the organization.

The HR audit may be defined as the analysis and evaluation of the personnel policies, procedures and practices to determine the effectiveness of HRM in an organization. It is a periodic review to measure the effectiveness of HRM and to determine the steps required for more effective utilization of human resources.

HR Audit

The HR audit includes audit of various processes like Recruitment

Selection

job analysis

Training

management development

promotions and transfers

labor relations,

employee benefits

wage and salary

Administration

collective bargaining

industrial relations

communication

etc.. The areas like performance appraisal, employee mobility and grievances are also included in its scope.

HR audit includes audit of various processes

Specifically HR audit covers following areas:- 1. Audit of HR functions 2. Audit of managerial compliance 3. Audit of HR climate 4. Audit of corporate strategiesThe Audit of Human Resource Function: This involves audit of all HR activities. For each activity, the auditors must take following steps:-

a. Determine the objective of each activity.b. Identify who is responsible for its performance c. Review the performance.d. Develop an action plan to correct deviations, if any,

between results and goals.e. Follow up the action plan.

- Identification of contribution of HR to the organization.- Improves professional image of HR deptt.- Clarification of HR deptt’s, duties and responsibilities.- Stimulation of uniformity of HR policies and practices- Finding critical personnel problems.- Insuring timely compliance with legal requirements.- Reduction of HR costs through more effective personnel

procedures.- A thorough review of the department’s information

system.

Benefits of Human Resource Audit