What is the Human Resource Information System ?
A Human Resource Information System (HRIS) is a software tool that centralizes and automates HR-related tasks, such as employee data management, payroll processing, recruitment, and performance evaluation, to streamline human resource management processes within an organization.
The prime objective of the human resource information system is to provide seamless information about the people employed in an organisation and what personnel will be needed in the future. Personnel Information Systems (PIS) or Human Resource Information System (HRIS) or Human Resource Management provide information to the people working in the personnel department so that they can make decisions easily in order to carry out the tasks in a more effective manner.
Finance, accounts and budgets are the prime modules that are related to Computer-Based Personnel Information System (CBPIS). CPIS is a database that contains all the posts and service details of every employee working in Government organisations. Organisations collect, maintain analyse and store information about the people working and their respective jobs with the help of method provided by PIS.
Recruiters, career planners, trainers, and other human resource professionals use the information contained in PIS to manage human resource. Information is needed at both the macro and micro level, Solutions for recruitment, training, benefits, payroll and HR are provided by HRIS.
Features of Human Resource Information System
1) Payroll:
This is the most common and important feature of HRIS. Payroll systems may be automatically synced with external clocks and permit employees to feed in data regarding entry time for managerial approval. The payroll feature should be fully functional at all times so that payroll review can be conducted quickly when required.
2) Benefits Administration:
HRIS also helps companies in HR functions and helps the HR department employees in day to day functioning. It is estimated that on an average an HR employee spends 40% of his/her time managing employee benefits. HRIS can help here to reduce time devoted to the activity. In some companies, employees manage their own HR benefits by adding a spouse to their insurance or keeping a tab on their FSA without disturbing HR. Such HRIS application should be chosen which aids employee self-service and cutting down on HR costs.
3) Training Systems:
HRIS helps the HR department to focus on more serious issues like employee training. This is important for improving one's workforce. An HRIS training system helps the HR department to schedule and track employee training.
4) Recruiting:
HRIS also helps the HR department to focus more on recruitment as the recruitment process is quite complex. This requires a lot of time and effort. Here, HRIS helps in designing systems with many features which helps HR to manage the recruitment process better with ease. This also helps in improving the overall ROI on the employees.
5) HR Metrics:
HRIS provides an opportunity to review data regarding company and its employees. This helps in evaluating where the company is struggling and where it is succeeding and helps develop future strategy accordingly.
Model of HRIS
Figure shows a conceptual model of a human resource information system:
The different components of PIS model are as follows:
1) Input Sub-systems:
he sub-systems that make up this have been given below:
i) Transaction Processing System (TPS):
Using similar format as used in MkIS, this sub-system provides input data to PIS.
ii) Human Resources Research Sub-system:
Special studies related to human resource are carried out by this sub-system.
iii) Human Resources Intelligence Sub- system:
Data related to HR issues are gathered by this sub-system.
2) Database:
The database supply data to be used in the output sub-systems. The three input sub- systems supply data to the database.
3) Outputs Subsystems:
Each specific aspect of HR management is addressed by the output sub- system of the HRIS. They are:
- Planning
- Recruiting
- Managing the workforce
- Compensating the employees
- Benefiting the employees
- Preparing HR reports required by the environment
In this manner, the output systems can be determined. Users deal the output subsystem with great interest.
Activities of Human Resource Information System
Personnel Management performs the following prime activities:
1) Manpower Planning:
Following are the important modules of manpower planning:
i) Employee Bio-data Bank:
This stores the bio-data of employees.
ii) Manpower Analysis:
The following reports are generated by the system:
- Annual Merit Rating Report
- Performance Analysis Report
- Eligibility list to promote employees.
iii) Manpower Forecasting:
This module takes into account the business plan of the firm and forecast the human resource requirement based on skill and category.
2) Human Resource Development (HRD):
Following are the major modules of this sub-system:
- Carrier Planning System,
- Succession Planning System,
- Training Identification System
- Deficit or Surplus Identification
- Re-Deployment Planning
3) Selection and Recruitment:
The selection and recruitment is equipped with various modules which help the department to facilitate various functions. Some of them are as follows:
- Institution Databank
- Identification of Source
- Placement module
4) Compensation and Benefits:
This system is used to identify the benefits given by the government as well as the organisation. Such information can help the management in decision making
5) Industrial Relations (IR):
The task of this module is to maintain a databank of employees' grievances mentioning the filling date and resolution or settlement date. With the help of such data banks, it is possible to analyse the past cases. Thus, grievance can be avoided and disputes can be resolved with the help of the following:
- Industrial Disturbance Databank
- Databank of Industrial Trade Union
6) Establishment and Personnel Records:
This module keeps record about various personnel matters such as gratuity, loan, leave travel concession, advance given to employee, etc.
Types of Human Resource Information System
Here are some common types of HRIS:
1) Core HRIS: Focuses on managing employee data, payroll, benefits administration, and attendance tracking.
2) Talent Management Systems: Encompass recruitment, performance management, learning and development, and succession planning.
3) Employee Self-Service (ESS) Systems: Empower employees to access and manage their HR-related information independently.
4) Applicant Tracking Systems (ATS): Streamline recruitment processes by managing job postings, candidate applications, and interview scheduling.
5) Workforce Analytics Systems: Gather and analyze data to inform strategic decision-making on workforce trends and performance metrics.
6) Learning Management Systems (LMS): Deliver, manage, and track employee training and development programs.
7) HRMS (Human Resource Management Systems): Combine core HRIS features with talent management functionalities, and sometimes include payroll and benefits administration modules.
8) HR Portals: Centralize HR-related resources, policies, forms, and company announcements for employee access.
9) Benefits Administration Systems: Manage employee benefits programs, including enrollment, eligibility verification, and plan administration.
10) Performance Management Systems: Facilitate the continuous monitoring, evaluation, and feedback process of employee performance.
Inputs of HRIS
There are several documents or forms present in the MIS application for personnel department, using which inputs can be provided. They have been listed below:
- Personnel application form
- Bio-data or CV
- Appointment letter
- Attendance and leave record
- Appraisal form
- Production/Productivity data on the jobs
- Wage/Salary agreement
- Record of complaints, grievances, accidents
- Industry data on wage/salary structure
- Industry data on manpower, skills, qualifications
- Record of sources of manpower like University, Institutions, Recruitment agencies
- Record on manpower application trend in view of automation. mechanization, and computerization
Reports of Human Resource Information System
In order to analyse the industry information, the top level management and personnel department uses reports. The major types of report are as follows:
1) Statutory Reports:
Statutory reports are generally prepared by the organisation's personnel department. The contents of the statutory report are:
- Attendance record,
- Category of employees (permanent, trainee and apprentices)
- Information about funds, ESI Reports, Ledgers and Returns
- Income Tax Form 16, 244
- Accident Reports
- Strength of employees to Director General of Technical Development(DGTD)
Provident Fund Authorities, ESI Authorities, Income Tax Department, Directorate of Industrial Safety and Health, and Labour Department accept and consider the statutory reports.
2) Knowledge Update Reports:
With the help of these reports, the data can be kept updated. The following information are part of this reports:
- Daily attendance report
- Employee strength
- New joining and leaving, and transfer of the employees
- Personnel cost by department, job and product
- Assessment of personnel cost by salary/wages and overtimes.
3) Operational Update Reports:
These reports help in determining and planning various aspects for future activities such as:
- Daily attendance to plan the workload
- Overtime against work completed
- Projected absenteeism and distribution of workload
- Personnel cost related to jobs or work completed
4) Decision Analysis Reports:
With the help of these reports, data can be analysed and plans can be made. The various aspects of these reports are as follows:
- Analysis of attendance for season, festival, and pre-determined schedule
- Analysis of overtime
- Analysis of accidents and deciding on safety measures and retraining
- Cost versus work analysis
- Job versus recruitment analysis
5) Action Reports:
For some action related to the analysis of reports, these reports are taken into consideration. Following actions are included in these reports:
- Recruitment and additional manpower or subcontracting of jobs
- Acceptance of orders according to workload
- Cutting cost by re-organizing or transferring workers
- Preparation of training and development programs as per need
Advantages of Human Resource Information System
1) Faster Information Process:
Transfer and receive of information will be fast. This will save both time and energy of employee. As a result, the employee will be able to use the time left in performing other activities. For analysis and preparation of best result, the employee must have more time.
2) High Performance Accuracy:
With the help of HR audits, it is possible to produce financial statements accurately and ease the process of calculating payments of employees. When compared to the manual process, the information and employee data verification not only becomes easy but also accurate. The personnel data can be stored more accurately,
3) Paperless:
Documentations or paperwork can be avoided with the use of HRIS as everything is done with the help of computer system. As compared to manual paperwork, correction, modification, erasing, and transfer of computerized work become easier.
4) Time Saving:
With the help of HRIS, calculation can be done within minutes that might take few hours if done manually. Hence it saves time. The work can be send online instantly as soon as it finishes. This reduces the time spent in sending the work. Correction of mistakes can be done easily within few minutes that take hours of time using manual correction method. HRIS provides many other facilities that can be done in much less time.
5) Improved Planning and Program Development:
There are several applications and features in HRIS with the help of which the employees can improve planning and program development.
6) Training and Development:
The organisation can manage the employees easily by tracking their training and development efforts with the help of online systems.
7) Recruitment and Selection:
With the help of HRIS, it is possible to select the appropriate person for a job without spending much time, and with less difficulty by locating and attracting applicants.
8) Performance Evaluation and Management:
The management can take the help of the HRIS to evaluate the performance of the employees by analyzing the report prepared on the basis of rating scales.
Disadvantages of Human Resource Information System
1) Human Error during Input:
The management process may be affected by major or minor complications caused by mistakes done by HRIS specialist. Hence, it is necessary to pay more attention to the use of HRIS. If the result is not accurate due to any small mistake linked to the data or information, the whole result will be greatly affected in the HR audit area.
2) Unavailability of HRIS Specialist:
It is not easy to find a suitable HRIS specialist as very few people are qualified to work in this area as very advanced technology is used.
3) Cast of Hiring HRIS Specialist:
As the demand of HRIS specialist is high, the organisation has to pay a very large amount to hire them as compared to the salary given to normal employees. Thus, many small businesses find it an extra burden on their business to hire an HRIS specialist.
4) Cost of the Application:
Due to its advanced technology and high demand, the cost of the HRIS system and applications is very high.
5) Level of Unemployment:
Most of the work of HRIS is generally done by the HR specialist who saves money, energy, time, and workforce. Because of this, the rate of unemployment will increase.
Application of Human Resource Information System
A database is formed using the documents mentioned above. The top management, head of the human resource development department and the personnel managers observe and use the database. The major applications of PIS are as follows:
1) Accounting:
Accounts related to the following entities are maintained in the Personnel Information System(PIS):
- Attendance
- Employees
- Leave
- Salary/wages, statutory deductions
- Loans and deductions
- Accidents
- Production data
- Skills
- Bio-data
- Family data
2) Query:
Personnel management system consists of queries related to the topics given below:
- Identification of each employee
- Strength of a section, department, division
- Number of people having specific skill
- Attendance, leave, and absenteeism record of all the employees
- Salary/wages of employees
- Designations and number of persons working on these designations
- Personal details of the employees
The keys that are generally used to answer such queries are employee number, division/ department, and skill code.
3) Analysis:
The data analysis uses the following factors for personnel management:
- Analysis of attendance by a class of employees
- Leave analysis by a group of employees
- Trend in the leave record
- Analysis of accidents and its types
- Analysis of salary/wages structure
- Analysis of overtime
4) Control:
Control in personnel management gives the working criteria of employees and industry norms. The following considerations are taken:
- Probable absence versus workload
- Personal cost against increased manpower
- Assessment of accident records against safety measures
- Personnel cost against industry cost and its projection
- Projection on manpower needs, evolving recruitment and training programs.
Role of Human Resource Information System
- Automates routine HR tasks like payroll processing and attendance tracking, freeing up time for strategic HR activities.
- Facilitates efficient data management by centralizing employee information, reducing errors and redundancies.
- Supports decision-making through data-driven insights and analytics on workforce trends and performance metrics.
- Enhances employee self-service capabilities, empowering individuals to update personal information and access HR services independently.
- Streamlines recruitment processes by managing job postings, candidate applications, and interview scheduling through Applicant Tracking Systems (ATS).
- Enables effective talent management through tools for performance evaluation, learning and development, and succession planning.
- Ensures compliance with regulatory requirements by providing features for tracking and managing legal and policy obligations.
- Improves communication and collaboration across the organization by serving as a centralized hub for HR-related resources and announcements.
- Enhances employee experience by providing access to training materials, performance feedback, and benefits information through Learning Management Systems (LMS) and Employee Self-Service (ESS) portals.
- Supports strategic HR initiatives by providing comprehensive insights into workforce capabilities, engagement levels, and areas for improvement.