AMITY UNIVERSITY AMITY SCHOOL OF BUSINESS

HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

SUBMITTED TO : Ms Seep Sethi

SUBMITTED BY: SAHIL B 25 RAJAT B 27 ANKIT B 39 DISHANK B 63

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HRIS
Human Resource Information System (HRIS) is a systematic way of storing data and information for each individual employee to aid planning, decision making, and submitting of returns and reports to the external agencies. It is an online solution for the data entry and tracking of a company's human resources department information, payroll, management, and accounting.

A human resource information system (HRIS) is defined as a computer based application for assembling and processing data related to the human resource management (HRM) function. As in other types of information systems, an HRIS consists of a database, which contains one or more files in which the data relevant to the system are maintained, and a database management system, which provides the means by which users of the system access and utilize these data. The HRIS thus contains tools that allow users to input new data and edit existing data; in addition, such programs provide users with the opportunity to select from an array of predefined reports that may either be printed or displayed on a monitor. Reports may address any of a number of different HRM issues (e.g. compensation planning, equal employment
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Opportunity monitoring). HRISs also generally include tools by which users or system administrators may generate ad hoc reports and select specific cases or subsets of cases for Display. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field. It can be used to maintain details such as employee profiles, absence reports, salary administration and various kinds of reports. An effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. Thus, in a nutshell, an HRIS system serves the following functions: y Storing information and data for each individual employee. y Providing a basis for planning, decision making, controlling and other human resource functions. y Meeting daily transactional requirement such as marking absent and present and granting leave. y Supplying data and submitting returns to government and other statutory agencies

PROCESS OF HRIS

Step 1. Inception of idea: The idea for having an HRIS must originate somewhere. The originator of the idea should prepare a preliminary report showing the need for an HRIS and what it can do for the organizations. Step 2. Feasibility study: Feasibility study evaluates the present system and details the benefits of an HRIS. It evaluates the costs and benefits of an HRIS. Step 3. Selecting a project Team: Once the feasibility study has been accepted and the resources allocated, a project team should be selected. The project team should consist of HR representatives who are knowledgeable about the Organizations HR functions and activities and about the organization itself and representatives from both management information systems and payroll. As the project progress, additional clerical people from the HR department will be needed to be added. Step 4. Defining the requirements: A statement of requirements specifies in details exactly what the HRIS will do. A large part of the statement of requirements specifies in details of the reports that will be produced. This includes the written descriptions of how users collect and prepare data, obtain approvals, complete forms, retrieve data, and perform other non-technical tasks associated with HRIS use.

Step 5. Vendor analysis: This step determines what hardware and software are available that will better meet the organizations needs for the lowest price. The result of this analysis will determine whether to purchase with whom at what price level. Step 6.Package contract negotiation:After a vendor has been selected, the contract has been negotiated. The contract stipulates the vendors responsibilities with regard to software, installation, service, maintenance, training and documentation. Step 7.Training: Training beings as soon as possible after the contract has been signed. First, the members of the project team are trained to use the HRIS.Towards the end of the implementation; the HR representatives will train managers from other departments in how to submit information to the HRIS and how to request information from it. Step 8.Tailoring the system: This step involves making changes to the system to best fit the needs of the organization. A general rule of thumb is not to modify the vendors package, because modifications frequently cause problems. An alternative approach is to develop programs that augment the vendors program rather than altering it. Step 9.Collecting data: Prior to start-up of the system, data must be collected and entered into the system.

Step 10. Testing the system: Once the system can been tailored to the organizations needs and the data is entered, a period of testing follows. The purpose of the testing phase is to verify the output of the HRIS and to make sure it is doing what it is supposed to do. All the reports should be critically analyzed for accuracy. Step 11.Starting up: Start- up begins when all the current actions are put into the system and reports are produced. It is wise to attempt start-up. Though the system has been tested, some additional errors often start-up. Step 12.Running in Parallel: Even after the new HRIS has been tested, it is desirable to run the new system in parallel with the old system for a period of time to examine its accuracy. Step 13. Maintenance: It normally takes several weeks or even month for the HR people to feel comfortable with the new system. By this time errors are adjusted and handled. Step 14. Evaluation: After the HRIS has been placed for a reasonable length of time, the system should be evaluated for the successful survey in the organization.

MODEL OF HRIS

INPUT SUBSYSTEM HR research subsystem: It gathers data about various aspects of human resources management such as job analysis, job evaluation, employee morale, employee absenteeism and employee turnover. HR intelligence subsystem: It gathers human resources information from external environment both formally and informally.

OUTPUT SUBSYSTEM HR acquisition system: The functions involved in this system are human resource planning, recruitment, selection andPlacement. HR development system: HRD system requires information about the competencies that are to be developed among employees. Appraisal system: Appraisal involves evaluating an employees quality and performance for devising suitable compensation package training, promotion, demotion etc. Compensation involves determining the incentives, benefits etc. Compensation management: It is concerned with designing and implementing total compensation package. Compensation is referred to as money and other benefits received by an employee for providing services to his employer like provident fund gratuity, insurance scheme and other payment. HR maintenance system: HRM system deals with maintaining employees in the organization. It involves human resource mobility in the form of promotion, demotion, transfer and separation, caring for employees safely and health and managing stress that employees may experience at the workplace.

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Industrial relation system: IRS is concerned with managing good relations between management and operatives. This involves designing of industrial relations mechanism, managing employee discipline, redressing employee grievances and managing industrial disputes.

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THREE LEVELS OF HRIS:

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NEED OF HRIS:
Costly exercise:Personal records, when kept manually, do not offer up-todate information at short notice. It was difficult to make entries. The clerical involved is quite labor-intensive and costly.

Inaccurate:The manual transfer of data from one record to another may increase the chances of errors.

Fragmentation:Information is not available at a central, easily accessible place since records are kept at different locations.

Difficult to analyze:The manual analyzes of data is time consuming and quite often not readily available for decision making purposes. When the organization grows in size the manual system fail to offer reliable, accurate data at short notice.

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APPLICATION AND UTILITY

Personnel administration - It will encompass information about each employee, such as name address, personal details etc. Salary administration - Salary review procedure are important function of HRM, a good HRIS system must be able to perform what if analysis and present the reports of changes. Leave and absence recording - Essentially be able to provide comprehensive method of controlling leave/absences. Skill inventory - It is also used to store record of acquired skills and monitor the skill database both employee and organizational level. Performance appraisal - The system should record individual employee performance, appraisal data, such as due date of appraisal, scores etc. Human resource planning - HRIS should record details of the organizational requirements in terms of positions Recruitment - Record details of recruitment activities such as cost and method of recruitment and time to fill the position etc. Career planning - System must be able to provide with succession plans reports to identify which employee have been earmarked for which position.
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Collective bargaining - A computer terminal can be positioned in the conference room linked to database. This will expedite negotiations by readily providing up to date data based on facts and figures and not feelings and fictions.

BENEFITS: y y y y y y y y y y y Higher Speed of retrieval and processing of data Reduction in duplication of efforts leading to reduced cost Ease in classifying and reclassifying data Better analysis leading to more effective decision making Higher accuracy of information/report generated Fast response to answer queries Improved quality of reports Better work culture Establishing of streamlined and systematic procedure More transparency in the system Employee Self Management

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ADVANTAGES
The four principal areas of HR that are affected by the Human Resource Information System (HRIS) include; payroll, time and labor management, employee benefits and HR management. These four basic HR functionalities are not only made less problematic, but they are ensured a smooth running, without any hitch. A Human Resources Information System (HRIS) thus permits a user to see online a chronological history of an employee from his /her position data, to personal details, payroll records, and benefits information. PAYROLL: The advantage of a Human Resource Information System (HRIS) in payroll is that it automates the entire payroll process by gathering and updating employee payroll data on a regular basis. It also gathers information such as employee attendance, calculating various deductions and taxes on salaries, generating automatic periodic paychecks and handling employee tax reports. With updated information this system makes the job of the human resource department very easy and simple as everything is available on a 24x7 basis, and all the information is just a click away. TIME AND LABOUR: In time and labor management a Human Resource Information System (HRIS) is advantageous because it lets human resource personnel apply new technologies to effectively gather and
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appraise employee time and work information. It lets an employee's information be easily tracked so that it can be assessed on a more scientific level whether an employee is performing to their full potential or not, and if there are any improvements that can be made to make an employee feel more secure. EMPLOY BENEFIT : Employee benefits are very crucial because they help to motivate an employee to work harder. By using a Human Resource Information System (HRIS) in employee benefits, the human resource department is able to keep better track of which benefits are being availed by which employee and how each employee is profiting from the benefits provided. HR MANAGEMENT : A Human Resource Information System (HRIS) also has advantages in HR management because it curtails time and cost consuming activities leading to a more efficient HR department. This system reduces the long HR paper trail that is often found in most HR divisions of companies and leads to more productive and conducive department on the whole

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HRIS TRACK :

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EXAMPLES (PERFORMANE EVALUATION)

WITHOUT HRIS: Prepare evaluation forms Print and copy them Distribute forms to employees Employees fill in evaluation Evaluation forms personally submitted to HR Manager Re-write results to the computer or file them Manual processing of data gathered Prepare result sheets Print, copy and distribute them to employees File all the forms for future use

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WITH HRIS: Define evaluation forms Online evaluation Entry One-click access to results History info captured Evaluation reports Strategic Decision making process can take place

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SHAWS SUPERMARKET

The Situation: Shaws Supermarkets is the second largest supermarket chain in New England. With a workforce of 30,000 located at 180 stores throughout six states, Shaw's HR staff is responsible for managing employees' personal data. Their employee mix includes approximately 70 percent part-time employees, consisting of students, senior citizens, second-job parttimers, and career part-timers. One third of the workforce is made up of union associates, and Shaw's staff oversees the company's involvement with three unions and six separate contracts (Koven, 2002). In order to help manage the workforce, the HR staff became interested in centralizing its HR operations.

The Response: In order to centralize HR operations Shaws decided to implement an ESS (employee self-service) solution. The use of self-service applications creates a positive situation for HR. ESS gives HR more time to focus on strategic issues, such as
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workforce management, succession planning, and compensation management, while at the same time improving service to employees and managers, and ensuring that their data is accurate. With this solution, employees have online access to forms, training material, benefits information and other payroll related information.

The Outcome: Shaws has had positive feedback since implementing the ESS solution. "The reaction from our employees has been extremely positive," Penney, VP of Compensation and Benefits, says. "We even had a significant increase in our medical coverage costs, and it was almost a non-issue because the online enrollment featured the plan choices, the employee cost, and the company subsidy. An employee self-service application makes it very easy for them to understand their contributions and coverage options. I received several e-mails from employees saying this was a great change and how easy ESS was, which the case is not often when employees are selecting their benefit options." (Koven, 2002). By giving the employees more access to their information they are able to see the benefit choices available to them. Employees are also able to update their information online, which helps reduce the paperwork of the past. Shaws has also seen improvement in productivity because employees are updating information at home, not during work hours.
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LIMITATIONS :
y It can be expensive y Its effective application needs large-scale computer literacy among the employees responsible for maintaining HRIS.

y Absence of continuous up-dating of HRIS makes the information stale. y Thorough understanding of what constitutes quality information for the user.

y Computer systems are only as good as the data they have to work with, so if a public agency or company starts out with bad information, there's not much a new system can do about it. y Small firms are internally incapable of HRIS applications and hence they need the help of external resources.

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CONCLUSION : HRIS is considered a strategic way to develop a new philosophy towards the way in which people are managed in an organization. Many decision making strategies are based on HR analysis, which is used to determine whether current HR capabilities are congruent with the desired organizational objectives. The development of HRIS applications that cater to the needs of human resources is very important. From a broader perspective, an HRIS yields a well managed business with better informed employees.

The implementation of HRIS applications results in two benefits: a) Efficiency of operations and streamlined HR administration. b) Effectiveness when management can spend more time in decision-making and strategic planning, and less time on information input and day-to-day HR administration.

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