The Utility and Selection of an Hris

Abstract

ABSTRACT Firms that want to succeed in today's competitive environment must use information technology to manage their human resources effectively. This paper first examines the architecture of a generic human resource information system (HRIS). Next, it examines the current options in selecting an HRIS. It also suggests a process human resource managers can use to select a suitable HRIS for their firms. Finally, critical issues in the management of HRIS like the selection of an HRIS project team, development of HRIS professionals within the firm, maintaining employee privacy, and employee self-service are discussed. INTRODUCTION The human resources (HR) department in an organization manages a variety of activities associated with employees like recruiting, training, promoting, terminating, record keeping, and meeting various legal requirements (Anthony, 1999). In addition, it supports a company's effort to develop and utilize the work force, and maintain an environment conducive to full participation, continuous improvement, and personal and organizational growth. It is an open secret that in the past, the the past, the human resource function within an organization did not have the same priorities as other functions. But in the last couple of years, management of human resources has been acknowledged as an important factor in developing sustainable competitive advantage (Gratton, Hope-Hailey, Stiles, & Truss, 1999; Losey, 1999, Pfeffer, 1994). A study conducted by the Gartner Group suggests that companies that use technology effectively to manage the human resource function will have a tremendous advantage over those that do not (Greengard, 1999). In spite of this, less than 20% of the human resource managers in a survey conducted by Deloitte & Touche and Lawson Software indicated that their organization has the technology to provide expeditious human resource information for business planning (Greengard, 1999). VALUE ADDED BY HRIS An important offshoot of such findings coupled with developments in database management systems has resulted in the increased sophistication of human resource information systems (HRIS). Automated solutions are no longer limited to large employers with big budgets. There are numerous options that fall within the budget of small and medium-sized companies (Martinez, 1999). Benefits of HRIS include: * Incremental leaps in efficiency and response time of various traditionally labor-intensive human resource activities. Not only is work duplication eliminated, but also various processes are streamlined and become more efficient. HR staff can spend less time on day-to-day administrative issues, and more time on strategic decision making and planning. This has a direct impact on productivity and profitability of an organization. * Better knowledge management which leads to a firm's better competitive advantage in the marketplace and better stakeholders' satisfaction. * Using the HRIS to calculate various business performance calculations like return on training, turnover costs, and human-value added. These calculations can be used to impress the top management that the human resource function is an equal strategic partner and is critical to meeting various organizational objectives (Fitz-Enz, 1998). THE ARCHITECTURE OF HR INFORMATION SYSTEM HRIS is a computer-based technique of collecting, storing, maintaining data, and retrieving information about employees and their jobs. The generic architecture of HRIS is illustrated in Figure 1. [ILLUSTRATION OMITTED] We will now discuss some of the important human resource information subsystems. Recruitment and Selection Recruitment ensures that the selection process has a large applicant pool to select the most suitable candidate. Information systems can help the recruitment and selection process in many ways. First, advanced computerized position inventory system (list of vacancies) ensures that the list is current all the time and can be viewed by a prospective applicant anytime. …

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