Mahmoud Moussa
Abstract
It is never worthless to invest in training and educating employees
in human resource (HR) Departments in the area of information technology (IT). The
reasons behind this include:
(a) Organizations around the globe
have HR-related information needs and
(b) IT issues have become increasingly
relevant to business endurance. HR information systems (HRIS) Can be a strategic
resource and a powerful tool in the hands of decision makers. Alternatively, it
can also be a burden and waste of human and non-human resources in organizations.
This paper includes a general overview of HRIS, automated performance management
and human resource tasks, eHR or technology in human resource management and HRIS
challenges related to technology. Finally, the author presents some implications
for practitioners and recommendations for future studies. This paper is intended
to allow researchers to expand their understanding of fundamental features and characteristics
relevant to effective HRIS in organizations. In addition, the paper is intended
to support practitioners in highlighting critical issues necessary for the successful
implementation of HRIS. Although the paper is narrative or descriptive in nature
and non-statistical, it can be used to enhance the understanding of HRIS patterns
in organizations.
Keywords: Employee, HR, HRIS, information, organization
Author: Mahmoud Moussa is a faculty member at the International
Business Management Program at Rajamangala University of Technology Lanna, Chiang
Mai, Thailand. Email: Rmutlhrd@gmail. Com.
Overview of Human Resource Information Systems (HRIS)
Information technology has undoubtedly changed the face of human
resource management (HRM) Around the globe. Perhaps the most essential use of technology
in HRM is an organization’s human resources information system (HRIS). The term
“information system’ implies the interrelated individuals, data, technology and
organizational processes an organization uses to collect, store, process and disseminate
information (Dessler, 2011). Apparently, today, the concept of an information system
has become synonymous with computerization (Miner & Crane, 1995). Unsurprisingly,
computers have abridged the data analysis task and they can be of great importance
in HRM. For example, payroll, employee records, equal employment opportunity information,
compensation and benefits are frequently computerized HR functions (Mathis &
Jackson, 2000). In terms of HRIS, it has been described as an integrated system
to collect, process, store, analyze, retrieve and disseminate critical information,
which can provide useful support in HR decision making, coordination, control, analysis
and visualization of an organization’s HRM activities (Mathis & Jackson, 2003;
Dessler, 2000; Miner & Crane, 1995; Gomez-Mejia, Balkin & Cardy, 2004).
In other words, an HRIS links together all HR information into a system, and large
organizations integrate their separate HR systems into an integrated HRIS (Dessler,
2003). Following this line of thought, the challenge for HR professionals is to
integrate the conventional HR functions of the organization, without a glitch, with
other corporate value-adding activities (Lee, Lee & Kwon, 2007).
Jackson and Schuler (2000) Noted that when computer technologies
are utilized to collect, analyze and allocate information about an organization’s
employees, the consequential systems are indicated as HRIS. Moreover, HR information
management (HRIM) Systems are also referred to as HRIS, when computer technologies
are applied to collect, scrutinize and allocate data about job candidates and
employees (Jackson, Schuler
& Werner, 2009). They also explained that HRIM systems not only communicate
an organization’s policies and strategies to all employees, regardless of their
settings but, also, allow employees to access the following matters from around
the globe: Informationaboutperformanceappraisalsand competencies needed for a particular
task in the organization; Professional development plans and tactics for managing
their progress; Announcementsrelatedtojobopeningsand descriptions throughout the
organization and all benefit packages offered in organizations around the world.
Bulmash (2011: 53) Observed “… these systems provide a repository for information/data to be stored
and maintained, and they possess varying degrees of reporting capability.
However, for the data to be useful, they need to be transformed into
information that is meaningful to managers.“ HR departments are facing this
challenge today and will eventually determine their capacity in providing strategic
HR services.
Propositions behind installing such a system and the anticipated
outcomes indicate the following:
(a) Competitiveness;
(b) Increase in the efficiency of
HR activities and the line management of the organization;
(c) Elevate the organization to another
level, as it generates a mixture of HR-related documents and
(d) Capable of assessing HR activities
concerning the organization’s strategic plans (Dessler, 2000). When an efficient
HRIS is implemented, the prime benefit obtained is that HR personnel can focus more
effectively on the organization’s strategic goal instead of on regular practices
(Belcourt, Bohlander & Snell, 2008). This would involve employee needs analysis,
employee promotions and career paths and the effects of the organization’s policies
to enhance and/or maximize the
organization’s profits.
The most noticeable effects of HRIS have been operational (e. G., automating routine
tasks, improving administrative works, containing costs and enhancing productivity).
Nevertheless, the changing face of HRIS has been directed toward self-service, setting
up systems (often on an intranet) To permit decision makers to access employee records
for business purposes and allowing employees to access and modify their own benefits
and other private information (Belcourt et al., 2008).
An HRIS should be tailored to deliver information that is:
(a) Timely: Leaders must be able to
access the latest information;
(b) Accurate: Leaders must be able
to count on the quality of the information offered;
(c) Concise: Leaders should be able
to obtain a great deal of information at any one time;
(d) Relevant: Leaders should receive
only the information wanted for each circumstance and
(e) Complete: Leaders should obtain
inclusive and not limited amounts of information (Mondy & Mondy, 2008). Consequently,
HRIS are considered advocates of:
(a) Planning to satisfy all business
needs;
(b) Fulfilling the employees’ desires
in an organization and
(c) Controlling all types of business
policies and programs (O’Brien & Marakas, 2006).
The following tasks are involved when creating an HRIS:
Determination of information needs: Information, data and necessary
resources for decision-making processes and employers at different levels may require
different types of information. Thus, an analysis of all activities performed in
an organization, work plans and restrictions that may have an effect on the implementation
of an HRIS system is critical. However, there must be the realization that these
aspects vary from one organization to another and from one industry to another.
Designing the system: During this phase, the release of identified
information should occur in a style that matches the employers’ needs for the information.
In all cases, structuring an HRIS system involves
the development of some
processing methods, in order to convey the desired information to employers in different
positions.
Implementation: In this step, the system has already been installed
and employees should be able to acquire all of the required skills and knowledge
available through training courses and orientations. Moreover, an emphasis should
be placed upon the integration of the HRIS system with other relevant organizational
aspects.
Monitoring and evaluation: This step includes performance appraisals
to recognize deficiencies in the system and to take corrective actions to ensure
the success of the implementation phase. The system should be assessed continually
and a high degree of flexibility should be incorporated to make it possible to modify
various components periodically, inside and outside the organization (Bhavsar, 2011).
With that said, an HRIS moves beyond simply storing and retrieving
data to include more applications, such as generating reports, forecasting HR needs,
strategic planning, career and promotion planning and appraising HR policies and
practices (Bohlander & Snell, 2004). Additionally, numerous organizations have
implemented HRIS that also enhance employee selection and recruitment, job placement;
Performance evaluations, employee benefits and compensation, training and development,
security, health and safety issues and many other HRM functions. Consequently, the
design of an HRIS assists decision makers in making more appropriate decisions.
This is particularly true when careful consideration is given to HRIS subsystems,
including: Employee administration; Recruitment; Time and attendance; Training and
development; Pension management; Employment equity; Performance appraisals; Benefits
and compensation management; Organizational management; Safety and health; Labour
relations and payroll (Bulmash, 2011). According to research and the Equal Employment
Opportunity Commission (EEOC), the HRIS should also include information about every
employee’s age, race, religion, sex, place of birth and marital status;
however, this information
should not be exploited for selection, promotion, training and compensation or evaluation
purposes (Cherrington, 1995). Beside this, some of the more commonly requested reports
generated by an HRIS include general information (e. G., name, address, phone number,
postal code and age); Compensation documents (e. G., salary statements or history);
Performance assessments; Absenteeism (e. G., sick leave, personal leave, paid or
unpaid leaves and number of allowed vacation days); Duties performed and position
titles; Types of training received and competencies required (Bulmash, 2011). However,
to take full advantage of an HRIS, scholars and practitioners should promote significant
components its success and information-related design characteristics (Mueller,
Strohmeier & Gasper, 2010).
Moreover, an HRM information system (HRMIS), also known as a
personnel MIS, can play a vital role in ensuring organizational success. Some of
the activities performed by an HRMIS include:
Human resource planning: One of the fundamental phases of any
HRMIS is specifying employee needs, to determine or, at least predict, how many
employees are needed, put the correct one in the correct place and anticipate the
number of employees needed in the future.
Employee selection and recruitment: If the HR plans show that
more employees are needed, the next step involves recruiting and selecting those
employees. Organizations seeking new personnel normally use computers to evaluate
potential candidates to screen them and begin the recruiting efforts. In addition,
applicants upload their CVs to the Internet and then HR managers can recognize candidates
who they might be interested in interviewing.
Training and skills inventory: Jobs that primarily involve thinking
and problem solving activities, such as professional and technical occupations,
require very specific training for new candidates. After
the training course is
completed, the employees’ mastery of the relevant skills can be evaluated.
Scheduling and job placement: Schedules are planned for each
employee, specifying particular tasks to be performed over a specific period. Job
placements frequently are determined according to employee skills inventory reports,
which aim to identify the right person for the right job.
Wage and salary administration: Another HRMIS subsystem concerns
wages and salaries, benefits, medical payments and retirement accounts. Wage and
salary information can be obtained from the organization’s database and controlled
by the HRMIS to present accurate information and documents to the upper-level of
management.
Outplacement: Employees quit their jobs for a variety of reasons.
Outplacement services are delivered by many organizations to assist employees in
making the right decision when moving to another organization. Thus, outplacement
can include job training and counseling, financial and retirement planning and many
other options. In addition, some employees use the internet to plan for such a transition
or retirement (Stair & Reynolds, 2008).
According to Noe et al. (2007: 549), a standard feature of a
modern HRIS is the use of relational databases, which store data in separate files
that can be linked by common elements. These common elements are fields identifying
the type of data. Commonly used fields for an HR database include name, Social Security
number, job status (i. E., full-or part-time), hiring date, position, title, rate
of pay, citizenship status, job history, job location, mailing address, birth date
and emergency contacts. A relational database is far more complicated than the traditional
technique of storing employee information by name, with one file per candidate.
Another common use of an HRIS is applicant tracking or retrieving
and controlling job applicants’ records efficiently for hiring and termination purposes,
planning and career development. By assessing such data, the HR department can assess
the long-term horizons of its recruiting and selection procedures; Fortunately,
computer hardware and software have made tracking of HR much easier. Jackson and
Schuler (2000) Observed that a large number of global organizations have considered
implementing sophisticated HRIS with the purpose of maintaining records concerning
who is performing what and where. For global organizations, it is perhaps fundamental
to use a sophisticated HRIS because assigning employees overseas while keeping track
of each division and all departmental practices and policies might otherwise be
overwhelming (Dessler, 2003). However, global and domestic organizations use HRIS
to assist them in planning their HR both qualitatively and quantitatively (Khera
& Gulati, 2012).
After an exhaustive review of literature, the author can summarily
offer the following benefits of HRIS in organizations as follows: Updated records;
Quick information processing; Better awareness within individuals in organizations;
Accurate information; High level of employee satisfaction; Better employee involvement
programmes; The reduction of repeated information reported to employers and better
access to a plethora of information in the formats required. By contrast, obstacles
involved in the implementation of an effective HRIS can be interpreted as follows:
Ineffective communication among individuals in organizations; Ineffective management
and lack of commitment to the development of the organization; Contentment with
the existing circumstances; Change resistance; Insufficient budget; Problems in
coordinating with individuals, departments and organizations; Timing issues; Lack
of wisdom about choosing the right person in the right place and, above all, politics
involved in the implementation of the system.
As a caveat, an HRIS is never considered a substitute for data
accuracy and such a database requires a regular updating and reviewing processes
in both international and domestic organizations.
Automated Performance Management and HR Tasks
Technological growth has transformed the way many organizations
operate and handle performance management. Technology permits organizations to transform
large amounts of data into practical or valuable information and allows both employers
and employees to recognize deficiencies in their systems. Consequently, technology
is transforming the way HR departments manage and use employee records and the distribution
of information. Today, HR personnel use contemporary technology to automate most
of their tasks in managing employee records and allowing employees access to information
for training or benefits. Noe et al. (2007) Noted that automation makes a remarkable
contribution to HR departments; For example: Automation has increased HRM efficiency
through minimizing the number of individuals required to perform particular tasks;
It facilitates the work of HR experts and consultants, when clarifying how the HR
department can help the organization accomplish its mission, vision and objectives;
It provides some tactics that may construct and enhance systems for knowledge-sharing
to promote the creation of a learning organization; Using tools and information
processing to perform tasks that have been completed by employees and employees
can easily follow the organization’s new trends and policies and receive information
about their benefits online.
Jackson et al. (2009) Reported that automation can do more than
increase efficiency and save time; It can:
(a) Enhance the reliability of assessments
and make them more reasonable and fair to employees;
(b) Communicate performance criteria
to employees and
(c) Assist leaders in developing performance
reports that exhibit strengths, weaknesses and opportunities. Nonetheless, careful
planning and cooperation among diverse quarters of the organization are strongly
required. Moreover, several technologies have been adopted by organizations to improve
their productivity and they are often part of a HRIS. These are:
Transaction Processing System (TPS): A TPS conducts computations
and calculations required in evaluating HRM decisions and practices and involves
documenting decisions and practices related to employee relocation, training costs
and benefit packages. TPS are applications for information processing for routine
day-to-day business activities. All of an organization’s important data may be stored
in a single extensive database that is considered the organization’s central information
resource. The database can be updated by either batch processing, where data are
gathered over a specific period and processed together, or online, where data processing
occurs as information becomes available. In short, a TPS offers direct support to
the operational level of an organization. It captures, stores and transmits details
of business interactions.
Decision Support Systems (DSS): DSS are computer software systems
tailored to assist employers in overcoming barriers and solving problems. They frequently
have a ‘what if? ’ feature that employers can use to test interactions between different
types of information and determine how the expected outcomes will vary. By gathering
this kind of information, the DSS would select specific reports that could be useful
in making important decisions. The system can also help in making appropriate decisions
for HR planning. It has been described as an interactive system that reports information
required to support decision makers and, while some DSS
are dedicated to specific
dilemmas, others are used for more general goals. If the services offered by a DSS
are not adequate to justify a complete DSS component, they may be tailored into
a management information system (MIS) At higher cost. However, a DSS tends to be
more interactive than MIS, enabling employers to communicate directly with computer
programs that control the system and obtain the results of different investigations
rapidly.
Expert Systems (ES): ES are considered extensions of DSS and
they are computer systems that gather and integrate decisions made by experts in
a particular area. The system can provide recommendations based on the decisions
and rules offered by users. In other words, the system is structured to make recommendations
that a human expert would recommend in a particular area. ES can provide high quality
information and lower costs, avoid mistakes resulting from decision- making biases
and increase efficiency by lowering the number of unskilled employees doing work
that may require skilled employees. Nevertheless, ES are extremely difficult and
expensive to develop. ESs are being applied in many different areas, such as employee
work scheduling, identifying credit limits for credit card applicants, monitoring
machinery in a plant to forecast specific problems, making mortgage loans, mineral
and oil exploration, equipment fault location, pricing airline tickets and in the
insurance industry (Noe et al., 2007; Griffin, 2008; Bartol & Martin, 1991;
Gitman & McDaniel, 2006; Orilia, 1986; Boone & Kurtz, 2010; Norton, 2006;
Thompson & Cats- Baril, 2003).
Accordingly, computer software is necessary to reflect the organization’s
values and goals more appropriately and to offer fair assessments; For example:
KnowledgePoint’s Performance Impact System walks managers through documenting performance,
providing coaching and feedback, managing goals, writing performance reviews, and
creating development plans. Meanwhile, OneForce/Performance’s Workscape employee
performance management solution automates and streamlines all aspects of performance
management while
enhancing the quality
and frequency of performance-related interactions between employees and managers.
Halogen eAppraisal offers organizations an employee performance appraisal solution
that replaces time-consuming ”computerized
paper“ appraisals with a Web-based system. (Mondy & Mondy, 2008, p. 224).
According to Dessler (2011), numerous software systems allow
employers to incorporate evaluations, career development, training, and succession
planning. One is Kenexa CareerTracker, which assists organizations in enhancing
their employees’ productivity by offering a reachable platform for continual employee
performance management, succession planning and career development. One aspect in
which HRIS have seen broad application is succession planning: The software development
for this goal has been significant because it: Helps to monitor and track management
development; Establishes candidate pools for inheritance; Recognizes turnover factors
among different levels of management; Reacts to altering skills’ prerequisites;
Generates reports that provide answers to different questions about employers and
their progress and provides a plethora of statistics in topics such as equal employment
opportunity (EEO), career planning, and employee profiles (Miner & Crane, 1995).
The succession planning system is incorporated completely with
other HRIS in the organization so that more information may be accessible from other
sources and the outcome is a process capable of offering analyses that can match
employers’ competencies with future business objectives. Hence, it is extremely
difficult to rely on manual HR systems rather than computerizing HR functions and
the entire organization’s tasks as the size of the organization grows and since
there is a continual need for competing in a particular market or industry (Dessler,
2000). Following this line of thought, DeCenzo and
Robbins (2005), Bohlander and Snell (2004: 463), Mathis and Jackson
(1997: 205) And Mello (2011: 253) Described the following HR functions and activities
as presented:
Recruiting: Advertising vacancies on the organization’s web sites
or through other job-search web sites, such as Careerbuilder. Com and Monster. Com,
aid HR managers in amassing a large number of applicants and deciding if an applicant
has acquired necessary skills in technology.
Employee selection: Employing effective individuals in technology-
based organizations is very challenging because they demand people with technical
and professional skills.
Job descriptions and job specifications: As computer technology
has developed, academics have created computerized job analysis systems that can
reduce time consumption and effort required in developing job descriptions. These
systems can be utilized in job evaluation and rankings that are connected with pay
structures. In addition, job specifications for each job can be developed, which
can enhance recruiting, selection, training and other HR functions. Blending the
administrative convenience of paper and pencil with the power of computerization,
one of the new approaches is the Common-Metric Questionnaire (CMQ). The CMQ system
consists of a computer- scannable document that is fed into computer-based scoring
and is thereby able to report thousands of pieces of information about any job.
Training and development: Technology is changing HRM trends.
The internet has offered great opportunities in conveying particular information
needed to both employees and employers. Automated technologies require more technically
trained employees who act as trouble-shooters to repair, adjust or improve existing
processes. Consequently, organizations have been able to reduce and, in some cases,
eliminate, layers of management and move toward flatter
organization structures
with fewer levels in the hierarchy. At the same time, because these technical workers
have advanced training, the power bases in many organizations have been rearranged
from management to technical workers.
Benefits programmes: Online programs reduce the annual open registration
period for numerous benefits. One big advantage from a benefit programme online
is the major cost savings in benefits administration and the system is easy and
inexpensive to adapt to individual needs. Descriptions of and advertisements for
a variety of benefits software programmes are readily found in HR journals such
as Workforce and HRMagazine. Software programmes represent a cost-effective way
to manage employee benefits programmes where employers lack the resources or expertise
to manage such programmes.
Ethics and employee rights: The emergence of various surveillance
software programmes resulted in many ethical quandaries and employers are being
questioned about what they should and should not be able to do when monitoring their
employees.
Motivating knowledge workers: Decision makers usually believe
that they must monitor their employees’ electronic devices to save the organization’s
resources, to make the employees more productive and to protect the organization
from illegal practices or legal lawsuits.
In short, the melding of computer technology with HR functions
and activities enabled organizations to develop more inclusive and precise job descriptions,
more equitable compensation systems and performance evaluations and, as such, organizations
can offer data that are more accurate for various quarters than ever before. Kumar
and Pandya (2012) Synthesized the following benefits that have been offered to organizations
through technologies:
intra-departmental cooperation:
Facilities online allowed HR departments to obtain employees from diverse cultural
backgrounds and in different settings. Inexpensive: Containing costs (e. G., savings
in printing, and transportation costs). Accessibility to more information: Authorized
employees in organizations to access certain information and on a regular basis.
Better employee interaction: Online tools enhanced communication among employees
and employers that resulted in reduced social distance between them in various organizations.
Quick communication: Online communication programmes enabled fast communication
between employees and employers, which enhanced the efficiency of operations. Document-trail
and effective documentation: Documentation has become unsophisticated since organizations
could store, track and modify information in different locations, departments and
offices, and have a healthier scrutiny and interpretation of the information garnered.
Greater feedback: Electronic gadgets enhanced workers’ collaboration and allowed
them to receive quick feedback from their employers. More focus group discussions:
Online mechanisms helped organizations in improving productivity and maximizing
profits through electronic brainstorming and group discussions.
More precisely, there are three critical ways that IT influences
HR functions. These are:
(a) Operational effects: Automating
routines tasks and lightening the administrative load; Minimizing costs and enhancing
productivity in the HR function itself. The most recurrent uses of IT in HR involve
automating payroll processing, keeping employee data and managing benefit and compensation
programmes;
(b) Relational effects: Aside from
the operational effects of IT that
accentuate efficiency
and productivity enhancement within HR, IT also improves service by granting supervisory
management and employees, access to HR databases, backing their HR critical decisions
and improving coordination between and among departments in the organization and
(c) Transformational effects: The
transformational effects of IT imply broadening the scope and functions of the HR
department through restructuring all of the HR activities undertaken in the organization
(Bohlander & Snell, 2004). Additionally, a computerized HRIS consists of computer
hardware and software applications that function together to support HR decisions
in the organization. Gomez-Mejia et al., (2004) Observed that some HRIS software
applications currently accessible to organizations are:
Employee information: A programme that is used to establish a
database that gives basic information about every employee, such as age, sex and
race. Other application programmes can be used to reveal data from the employee
information database for more in-depth HR uses.
Applicant tracking: This programme is used to automate activities
related to the recruitment and the selection of job candidates, including storing
applicants’ information so that different employers can access it and evaluate the
applicants’ interviews or update the status of the job applicant.
Skills inventory: This is used to monitor or keep track of the
demand for particular skills and match skills required with organizational needs.
This programme can particularly enhance an organization’s promotion policy.
Payroll: A payroll programme is used to compute gross pay and
taxes and to make other calculations, such as paychecks for health insurance or
retirement plans.
Benefit administration: This programme is used to automate benefits
record-keeping that may take a long time if done manually; It can also be used to
manage different benefit programme or offer some
consultations about benefit
options and provide benefits’ statements for each employee annually.
Miner and Crane (1995) Listed the advantages of computerized
HRIS as follows:
(a) Speed: Computers can be used to
manage a substantial amount of information in a short period, diminish the per-unit
cost of information processing, deliver information that is advanced and promptly
available and monitor activities as they arise by classifying real-time information;
(b) Space: HR records and documents
require a great deal of space and these data files must be secured and protected;
Therefore, computer memories can be used to store information more effectively than
conventional filing systems and
(c) Availability: Employees and employers
can use computers to eliminate or remove problems, develop mathematical theories
that may determine solutions and quantifying and controlling information already
saved in the computer can offer new insights into critical dilemmas. Moreover, a
well-developed HRIS provides the following advantages: Cost reduction of accumulated
information in HR; Advanced speed of data processing and retrieval; Minimized efforts,
which lead to cost reduction; Accurate and timely data about HR are accessible;
Healthier analyses that enhance decision making; Enhanced career planning and counseling;
Improved quality of documents and reports; Rapid interaction with and management
of environmental changes; And enhanced transparency in the whole system (Bhavsar,
2011). It has also been claimed that benefits of HRIS are fast responses, better
access to information and a diminished workforce; A dearth of funds and skilled
employees are considered major obstacles to implementing such a system (Batool,
Sajid & Raza, 2012). In conclusion, HRIS must be perceived as a strategic weapon
or else the system will not be used to its full capacity (Sadiq, Khan & Ikhlaq,
2012).
Technology in HRM (eHR)
The concept of eHR implies the application of managing HR issues
through the use of computer technologies, including databases,
computer software and
hardware, materials online and the internet as applied to all HR practices (Jackson
et al., 2009). Development and application of eHR can be effective and strategic
in the hands of HR professionals in organizations, if applied ethically to add maximum
value to the organization. Some eHR applications and developments include the following:
Employees can research or investigate companies, industries and
other stakeholders online.
Employees can register and choose specific items in a benefit
package online.
Employees can determine answers to HR queries and access their
organization’s news stories.
Employees in diverse settings around the world can work together
cohesively.
Employees who work in different subsidiaries can receive their
organization’s training courses simultaneously over the organization’s computer
network.
Employees can use their organization’s intranets to generate
automated pay sheets, which are an online substitute to time cards.
Organizations can locate skilled and talented employees regardless
of their locations, through job hunters on some of the top websites.
Organizations can publish electronic employee handbooks and newsletters
and create discussion groups or forums.
Organizations can utilize websites that might be helpful in employee
self-assessment, such CareerMaze, which provides an evaluation of every job seeker,
and his/her interests, strengths, and weaknesses or Career-intelligence, which is
a career resource link that provides career-assessment planning information and
other evaluation tools. Other services provide tools for writing CVs or cover letters
and so forth.
Organizations can make hiring decisions through a videoconference
or chat programme on the internet that might save them travel costs and other expenditures.
Organizations and chief information officers (CIOs) Can use information
technology in other corporations and align them with their organization’s strategic
goals. In addition, CIOs work closely with chief executive officers (CEOs) To improve
the strategic use of computer technologies that may position the organization in
a competitive place in the market.
Organizations can develop online surveys of employee satisfaction
level, which can be efficient questionnaires that are easy to complete (Noe et al.,
2007; Dessler, 2000; Mondy & Mondy, 2008; O’Brien & Marakas, 2006).
Since all kinds of information related to an organization’s HR
may be employed, a computerized system may be used for substantial objectives (Miner
& Crane, 1995). For example, performance evaluation software is used to incorporate
organizational goals and management competencies, build a strategy for employee
career development, automate performance management workflow, create e- mail reminders
and develop an employee evaluation structure (Kumar & Pandya, 2012).
Owing to the confidentiality of HR information, many organizations
develop an intranet that uses internet technology to allow access to official users
only (Noe et al., 2007). However, organizations and HR departments are responsible
for educating employees regarding how to work in this changing environment, how
to cope with new trends and obtain the utmost benefits from such training, career
development, performance management and other benefits. Succinctly, eHR provides
useful ways to enact HR functions and achieve an organization’s mission, vision
and strategic plans but also poses new challenges to both employees and employers.
Hence, eHR systems offer great benefits to employees and organizations, along with
challenges and barriers that need to be taken into account, to obtain the desired
outcome from investing in such systems.
Additionally, technology has produced three innovative issues
of concern for HR and organizations. Mello (2006) Thoroughly illustrated the three
issues as follows:
Telecommuting is described as individuals working from home through
computer-mediated systems. This has been made possible by the great progress that
has been made in information processing and advances in telecommunication technologies.
Telecommuting is more than a contract between employees and their bosses, it also
involves a vigilant management system that shows employees how to accomplish their
tasks effectively and efficiently. Telecommuting can allow employees to take several
roles because of their flexible work hours; When deciding to relocate, it can help
organizations in retaining their employees, who are not able to change locations;
It enables organizations to access a broader potential applicant pool; It can save
a great deal of expenditure for organizations and some argue that it dramatically
boosts productivity and reduces absenteeism and turnover rate. Nevertheless, a lucid
and comprehensive performance appraisal system that has a set of measurable outcomes
is fundamental for an effective telecommuting scheme.
Employee monitoring and surveillance: There is nearly consensus
among employees and employers that technology, specifically access to the Internet,
has improved employee skills related to job performance. However, alternatively,
it has been shown in numerous studies that a large number of employees use the organization’s
computers and the internet in visiting adult websites, shopping, conducting private
business, chatting and playing games during their working hours. Consequently, many
employers have developed electronic monitoring systems to monitor employee behaviour
during the working day. In addition, many software programmes have been developed
to allow employers to monitor employee e-mails, computer files, voice-mails and
telephone usage. This has increased tension between employees and employers and
poses serious questions concerning how far an employer can go in monitoring employees,
because many employees
considered monitoring an invasion of privacy. EHR: Advances in technology have offered
HR departments a plethora of opportunities to enhance organizations’ strategic goals.
For example, HR departments can now provide many services on the internet and perform
almost all of its functions and activities online (e. G., payroll, performance evaluations,
employee pensions, savings and other benefits, employee relations and grievance
handling, discrimination complaints, recordkeeping and reporting, training and development,
staffing, action plans, safety and health development programmes).
Strohmeier (2007) And Sadiq, Khan and Ikhlaq (2012) Proclaimed
that eHR is a newborn with a very humble historical foundation and occupies a thought-provoking
area of analysis at the intersection of HR and IS. Yusoff, Ramayah and Ibrahim
(2010: 3044) Found that eHR is being applied progressively by organizations in the
U. S. And other nations, although “…
their use is often predicated on unproven claims about their antecedents.” Hence,
they recommended that scholars and practitioners test various variables in HRIS,
to promote the welfare of both individuals and organizations. Strohmeier (2007)
Thoroughly described significant implications for future developments in eHR. First,
a theoretical foundation is the vital requirement of any advancement in the field
and it is also necessary to focus on a small number of theories in HRM and IS to
establish the most relevant approach for the future. Second, pluralism may be relevant
when referring to experimental methods. Finally, future studies should openly deal
with an inclusive analysis of an organization to avoid any downsides of lack of
knowledge and unawareness.
4. HRIS Issues and Challenges Related to Technology
Technology has become an important part of many occupations,
but how individuals of different ages learn and use technology presents a significant
challenge for many organizations. According to Mathis and Jackson (2003), an HRIS
supplies two central objectives and challenges in organizations. One involves administrative
and operational efficiency: Many HR activities can be implemented more efficiently
if automated and valuable information is available whenever required. The other
involves effectiveness: Having reachable data assists HR planning and managerial
decision making to rely on information rather than on managerial perceptions. Mondy
and Mondy (2008: 9) Added that the world has never before seen technological changes
occur as rapidly as they are today. The development of HR technology has created
new roles for HR professionals but also places additional pressures on them to keep
abreast of the technology. According to a survey by the Society for Human Resource
Management (SHRM), a leading trend identified by the panel of experts was the expanded
use of the Web for delivery and utilization of HR applications on a service basis.
The use of Web-based information systems enabled HR departments
to be more efficient and to manage more HR planning and strategic issues for longer
horizons. However, there are many challenges that should be taken into consideration
and, therefore, Mathis and Jackson (2003) Compiled and presented a web-based HRIS
with the following features:
Bulletin boards: Information on individual policies, job advertisements
and training resources can be reached by employees around the world.
Data access: An extranet or intranet permits employees to access
an abundance of information (e. G., benefit packages), which
saves time for HR employees
who used to answer employee questions.
Employee self-service: Many intranets include employee self-
service options where employees can update and modify their private information
and enroll in employee benefits plans. In this case, maintaining security is vital.
Extended linkage: Integrating extranets and intranets help employers
to be connected so that data can be exchanged electronically and employees can submit
personnel records directly from any geographical location.
In short, DeCenzo and Robbins (2005: 7) Noted that “Digital electronics, optical data storage,
more powerful and portable computers, and computers’ ability to communicate
with each other are changing the way information is created, stored, used, and
shared.” One immense challenge for HR departments is the increasing number of
virtual workers who may undertake their tasks at home, coffee shops, hotels or wherever
convenient to them (Bohlander & Snell, 2004). Organizations today must adopt
new technologies or attempt to develop their own to operate more efficiently and
reduce their competitive pressures. Yet, the allocation of the budget to adopt new
technology must comply with significant strategic matters, particularly the strategic
HR dimensions (e. G., training needs, a planned change process or hiring and recruiting
new staff). Another extensive challenge for many organizations (Mello 2006,2011)
Is that technological transformation leads to a more hierarchical structure that
requires team building across different occupations, such as managing directors,
technicians and analysts to accomplish such a project. Alternatively, technology
has built more dynamic and flexible organizational structures that enhanced change
resistance in the organization’s environment. If organizations desire to remain
competitive in the market, advances in technology generally lead to restructuring
of jobs and organizational structures, redesigns of benefits and compensation plans,
rewriting of job descriptions, redesigns of employee selection and evaluation systems
and new
training programmes with
new techniques (Dessler, 2000; Mishra & Akman, 2010). In fact, Shaikh (2012)
Reported that organizations have been restructured through downsizing, rightsizing
and re-engineering, which removed a large number of workers and enhanced communications;
Nevertheless, proper information management and communication planning are viewed
as being the most crucial aspects to meet employee needs and expectations. Singh
(2012) Also confirmed that a successful execution of HRIS entails re-engineering
of all business processes and activities, as well as effective synchronization between
HR functions and the IT scheme.
Similarly, Noe et al. (2007) Write that, given the rapidly changing
pace of technology, organizations should continually modernize and refurbish their
skill requirements and then select and train employees to meet those requirements.
In other words, HRM has become more composite because of the increasing growth in
specialized jobs, the call for promoting and training employees with high competencies
and the growing multiplicity of benefit packages and programmes. Oz (2009) Classified
HRM into five major functions:
(a) Employee record management: IS
ease employee record supervision for a variety of purposes, such as payroll, taxes
and promotions and many HRIS are completely digitized, which minimizes the space
required to store such data, the time needed to access them and the costs of both;
(b) Promotion and recruitment: HR
managers can look for a database of job seekers and current employee profiles to
choose the skilled candidates for specific jobs. Automating the employee selection
task can reduce time and budget allocated for the recruitment process. Intranets
also assist HR managers in advertising vacancies and urgent announcements;
(c) Training: Training software simulates
scenarios in which employees must take actions to evaluate a trainee’s competencies.
Advances in IT helped organizations to control training costs to a great extent;
(d) Evaluation: By standardizing the
evaluation process among employees and across departments, evaluation software can
be used to determine the most qualified candidate for promotion, can reduce any
bias in the process and can make it more
subjective and consistent.
In addition, software helps employers in providing systematic analysis to develop
performance reviews, a checklist of performance areas and measures to exhibit how
competent the employee is in each task of the job performed and
(e) Compensation and benefits management:
IS help HR departments in analyzing weekly, monthly and hourly pay based on annual
salaries and can include tax tables to help in conforming with compensation regulations.
This system can generate paychecks and transfer funds from the organization’s bank
account to the employees electronically. Unique software helps HR departments managing
benefits (e. G., health and life insurance, retirement pensions or sick and personal
days). Some organizations use expert systems that specify the premium health and
retirement pensions for each employee based on data (e. G., marital status, age
and other factors).
Other major challenges for organizations involve the selection
of hardware, software and IT services, which may require suppliers to offer some
plans, according to the organization’s system development. The following is a compendium
of major hardware evaluation aspects and selected software evaluation factors, as
O’Brien and Marakas (2006) Reported: Hardware evaluation factors involve: Performance
(i. E., efficiency and power); Cost (i. E., lease, purchase, operations and maintenance
costs); Reliability (i. E., risks involved, maintenance prerequisites, managing
errors and analytical tools); Compatibility (i. E., harmony with current software
and hardware, with regard to what is provided by rival suppliers); Technology (i.
E., what kind of technology is applied, more recent or longstanding ones); Ergonomics
(i. E., user friendly, safe, comfortable and easy to use); Connectivity (i. E.,
how easy it is to link with different kinds of network technologies); Scalability
(i. E., how far it can handle processes, transactions and different information
processing obligations); Software (i. E., the availability of software applications
that can best apply this hardware) And support (i. E., the ease to obtain the services
required for any support or maintenance required). O’Brien and Marakas (2006) Also
articulated software evaluation factors, as
follows: Quality (i. E.,
frequency of errors in the programme); Efficiency (i. E., issues related to time
consumption, memory requirements or disk space); Flexibility (i. E., the degree
of flexibility in changing some processes in the organization); Security (i. E.,
procedures for managing errors, malfunctions and inappropriate use); Connectivity
(i. E., how easy it is to connect to the internet, intranets and extranets on its
own or whether it should be connected with other networks); Maintenance (i. E.,
software developers’ level of competencies and capabilities to fix unexpected errors);
Documentation (i. E., how well the software is documented and whether it contains
helpful software agents); Hardware (i. E., whether the software required matches
the existing hardware features) And other factors (e. G., cost, reliability, availability
and support features). Other factors for IS services and the quality of support
services organization users may need include: Performance (i. E., their performance
history with regard to their past guarantees); System development (i. E., whether
websites and e-business developers are accessible and what their quality and cost
are); Maintenance (i. E., the availability of equipment maintenance and their quality
and cost); Conversion (i. E., what systems development and services will be offered
in the conversion period); Training (i. E., the quality and cost of training personnel
and whether it can be provided or not); Backup (i. E., the ease to obtain computer
facilities whenever needed for backup purposes); Accessibility (i. E., whether vendors
provide local sites that offer sales, systems development and maintenance services);
Business position (i. E., whether vendors have good industry market visions); Hardware
(i. E., whether they provide many options of hardware tools and accessories) And
software (i. E., whether they provide practical e- business software and application
packages).
In brief, organizations also face substantial challenges concerning
the security and privacy of HRIS records:
Authorizing specific users to access the HRIS records and data
files or even distort some data whenever required, so that they are not obvious
to authorized users.
Developing passwords and special codes to allow users to access
different segments of the database and prohibit them from accessing sensitive information.
Authorizing access to employee profiles for specific business
purposes determined by decision makers.
Revealing and communicating the organization’s policies and plans
to all employees concerning the use of their private information and explicitly
inform them about the extent to which they can utilize this information.
Granting employees the right to access their personal records
to ensure relevancy and accuracy and take some corrective actions if necessary
(Gomez-Mejia et al., 2004).
In conclusion, privacy, security and controlling methods are
imperative for circumventing illegal or irrelevant access and usage of the HRIS
system; Training those who will be working in the HRIS system is critical to the
effectiveness of the system and hardware and software vendor proficiency is also
of great concern in providing appropriate support and instructions to stakeholders.
5. Recommendations for Further Studies
The author of this paper wishes to stimulate further debate and
research related to the following:
(a) What sort of information is most
sought about employees in organizations and for what purposes;
(b) How will the output from this
information be presented to decision makers and
(c) How often is this information
needed by employers? Moreover, it would be useful to discover how employers can
recognize the capabilities of an HRIS and the efforts needed before and after the
installment of the system. Another intriguing area of research could be related
to the level and the capacity of HRIS in facing crises or natural disasters. Another
gap in the existing HR and
HRIS literatures concerns the focus on the use of IT in organizations,
without an analysis or an indication of whether the system is closed, open or quasi-open.
An investigation of HRIS in organizations and perceptions of individuals from different
cultural backgrounds (e. G., a comparative study between Eastern and Western nations
or a study in a cross-cultural environment) May add to the existing studies in HR.
In addition, there is little research concerning outsourcing HRIS and the effects
that this might have on the organization’s culture as well as HRIS effects on employee
behaviour and performance under such circumstances. Ultimately, more research is
needed about the privacy and security challenges confronted by an HRIS because of
major concerns for HR and IT professionals in organizations; However, researchers
should carefully consider a particular country’s laws and constitution regarding
privacy and security issues.
Implications for Practitioners
A large number of authors have written that organizations must
highlight weaknesses encountered by HRIS, which include employee monitoring, compensation
and benefits management, employee coordination with other departments and organizations
and management skills. Consequently, this author has argued that several implications
could be important to business operations and decision makers in organizations,
the expansion of e-recruitment and e- learning; Periodically assess the return on
investment (ROI) For HRIS; Ensure and develop the HR information privacy system;
Boost the outsourcing of HRIS; Improve the level of management competencies; Train
employees how to provide information that assists employers in making appropriate
decisions; The system should fit the organizational culture; Scrupulously assess
the organization’s needs to purchase the most suitable size and type of product
from vendors because not all organizations require a sophisticated system; Develop
harmony and a good working environment between the HR department and the IT department
to work cohesively and produce the desired outcome; Decision makers should encourage
HR and IT individuals in
organizations to attend
trade shows and regular courses in IT to update their technological skills, as well
as develop connections with software and hardware vendors. In short, HR departments
can be strategic and business partners by evaluating:
(a) Their own effectiveness in how
they apply technology in every-day work and
(b) How fast they can cope with new
technologies to enhance productivity and the efficiency of operations. Most importantly,
HR specialists should facilitate the integration of HRIS tools and HRM functions
with the organization’s mission and vision so as to enhance knowledge and training
in IT and contribute to the development of the whole system in the organization.
Conclusion
Applying HRIS apparatus in HR departments and business operations
helps reduce the burden of the administrative work routine, optimizes an organization’s
financial status, provides access to accurate and timely information, improves the
efficiency of operations, develops employees and employers’ individual and institutional
competencies, identifies weaknesses in the organization’s system overall, builds
effective strategies that add value to the organization, anticipates future threats,
develops sustainable growth and long-term business goals and, subsequently, maintains
and retains a competitive position in the market. An HRIS system consists of several
subsystems (e. G., recruiting subsystem, compensation and benefits subsystem, planning
subsystem, performance evaluation subsystem, environmental reporting subsystem,
employee relations subsystem, payroll subsystem and training and development subsystem);
Hence, organizations should optimize these subsystems to make the whole system run
well. In other words, deficiencies in any subsystem within an organization may result
in a feckless system overall. Above all, HR departments vary from one another and
it is always critical to identify the role of the HR department in the organization;
Some serve as strategic and business partners; Whereas, others are focused on personnel
or play the role of employee advocate only.
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