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Globalization has taken a toll on organizational functioning and as a result of this, many organizations have turned to technology in order to help them adapt to these changes. Human resources is one department within an organization in particular that heavily relies on technological information systems in order to complete a variety of tasks including recruitment, employee trainings payroll, staffing, recruitment, job description, compensation, and employee evaluations. Human resource information systems (HRIS) is a type of software that enables HR executives to carry out their day-to-day activities electronically(Boateng, 2017). This paper briefly analyzes the benefits and limitations associated with HRIS and the effectiveness of HRIS in an organization’s HR department.
Research Question: Is the use of management information systems a viable asset to the value and effectiveness of human resource departments.
Introduction
Organizations are becoming increasingly complex due to changing internal and external environmental factors. These factors may place a strain on department managers to quickly adapt to the widespread changes within an organization. As changes occur and companies expand, there also becomes an increased need for more employees to be supervised. In order to avoid organizational chaos, employee satisfaction must be sustained. One of the duties associates with HR departments is to manage what is called ‘human capital’ (employees) and insure that they are retained in addition to handling employee benefits, pay, and trainings. These HR duties (regulating and distributing benefits, payroll, obtaining new employees, and monitoring employee retention) provide the blueprint for the overall organizational success. Leaders provide the structure of an organization in that they are responsible for developing plans and strategies necessary for organizational functioning and motivating the employees that carry out the work of the organizations. Without leaders, a company is planning to fail seeing, as leaders are responsible for facilitating group projects. Advances in IT hold promise of meeting many of the challenges of the HRM area in the future such as attracting, recruiting, motivating employees, and meeting demands to allow for a strategic HR department (Gupta, 2013). The use of information technology (IT) is increasing each day and almost every organization and its human resource departments, among others, heavily rely on it to assist with organizational functioning. IT enables employees to perform tasks and access information at a faster rate. HRIS plays a strategic role in the value of quality in an organization.
HRIS is a factor in boosting productivity by being able to provide quick and easy access to HR information. Being able to access information quickly gives an organization the ability to respond to its consumers faster as well as the ability to use the data generated by IT to improve organizational functioning, therefore making it more efficient and valuable. HRIS adds value to information and information technology has been a tool that managers can use both generally, and in human resource functions to increase the capabilities of the organization (Tansley an Weston, 2000). HRIS software can easily assist HR managers in analyzing employee evaluations in order to determine if the employee is meeting the goals and deadlines of the assigned tasks that make an organization successful. In many cases, there are employees that can devalue and organization by being toxic to the work environment or may not be meeting minimum requirements necessary to the functioning of the organization Being able to determine if goals are being met allows for room to eliminate assets that are harmful or devalue an organization with much sooner with the help of HRIS. HRIS provides the ability to decrease the costs associated with hiring and recruitment expenses, and training costs if implemented correctly. By using automated employee filtration software, HRIS are able to eliminate the excess need for the time to filter through incompetent applications therefore there is no longer a need to create positions to carry out these processes. This is the same for training processes as well. Using automated training software allows HR department managers to focus on issues other than training scheduling and training facilitation.
History of HR and HRIS
The Industrial revolution initially sparked the need for the formation of managerial positions to regulate employees in the workplace. The history of human resource management is said to have started in England in the early 1800’s during the craftsmen and apprenticeship era, and then further developed with the arrival of the industrial revolution in the late 1800’s (Khan, Sadiq, Iklaq, 2012). The Society for Human Resource Management defines human resource information systems/ human resource management information systems is a cross section between human resources and information technology. It allows HR executives to swiftly execute managerial processes and activities necessary to complete their goals. These goals may consist of tracking employee trainings, maintaining employee satisfaction, compliance to company regulations, and distributing employee benefits.
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 and can be briefly defined as integrated systems used to gather, store and analyze information regarding an organization’s human resources (Tansley and Weston 2000). With the increasing importance of technology, HRIS utilization is growing at a fast rate and can be seen as an essential tool in human resource management and in some cases a necessity in assisting with managerial success. HR mangers are taking on more rules in organizations, and the process of completing tasks manually have become obsolete. HRIS has the ability to take complex data that comes across their desks and turn it into something easy to comprehend or use that information to evaluate if the system is running successfully or if it is flawed.
Limitations and Drawbacks of HRIS in Organizations
Although HRIS can be considered an asset to organizations, there are some things that may need to be taken into consideration when choosing a HRIS specific to an organization’s needs. Human resource departments are responsible for properly handling an entire organizations employees’ personal and private information, therefore this information should be encrypted by a password or other network barriers to avoid easy access by unauthorized users. Authentication, security, network audit tasks, and secured applications need to be heavily monitored in order to avoid breach or leak of valuable employee or organizational information (Sadiq, Ikhalq, & Mujitba, 2012) Lack of security opens the door for hackers to illegally obtain employee information for their own personal benefit. Aside from managing employee information, most HR managers use HRIS to decrease issues with recruiting new employees. In some cases, the E-recruiting created by HRIS can be flawed in that it can filter out the applicants that may match the organization’s needs and wants just because the applicant left out key words that the apllications system looks for during the selction proces. Undesired consequences such as an increase in quantity and a decrease in quality of applicants can be a result of the implementation of e-recruiting (Tansley and Weston, 2000).
Benefits of Implementing HRIS
Employee benefits, payroll, demographic information, and tax forms flow in and out of organizations human resource departments and HRIS is a major factor in regulating this information. HRIS is beneficial in that it provides the ability to assist with decision making processes that can determine the future and the current functioning of an organization. Employees and managers can locate answers and information quickly without the need to consult an HR representative every time (Gupta 2013). HRIS allow for the formation of systems that provide real-time overviews of time sheets, direct deposit in formation salary statements, leave balance, and insurance benefit information, employee retention rates, training results. These are all forms of information that may be beneficial when trying to implement new hiring or training processes or to determine what HR information needs to be updated. The system lowers administrative costs and allows information to flow across the entire organization, therefore, employees can have the ability to take the workload from HR executives by generating automated tasks for employees to complete on their own such as trainings and time keeping. With the implementation of HRIS, employee trainings can be uploaded into a system and once completed that system can automatically generate data showing that the employee has completed that training Personnel will be able to lower the cost associated with recruitment traveling, and with the help of technology and HRIS, a larger geographical talent pool can be accesses remotely with real time video. HRIS are also cost effective in that they increase the accuracy of the information shared, which reduces the amount of error, therefore reducing the amount of excess time and money spent to resolve issues. Whiles HR professionals rely on the HRIS in fulfilling job functions, managers rely on the HRIS’s capabilities to provide superior data collection and analysis, especially for performance appraisal and performance management.
By somewhat allowing employees to act as their own HR managers, HR executives will have excess time to focus on other tasks necessary for organizational success such as strategic decision making and that outsourcing of people management activities. Many companies are switching from paper format SOPMs to an electronic format. If changes are made to SOPMs, an automated HRIS can notify all personnel to read and acknowledge that they are aware of the changes. In some organizations, there is a lack of communication between HR and various departments. HRIS plays a part in closing that communication gap by allowing software to automatically notify employees of which he or she needs to do and for employees and managers to notify HR of any issues that they are having. If personnel need to access or locate their direct deposit, W-2, or payroll information, or see what trainings he or she need to complete in order to maintain compliance, he or she can do so at any time. Since HRIS are technology based, it can provide a more efficient means of collaboration. HR managers are able to utilize HRIS to communicate changes to HR related issues regardless of if they are in the same location or not. There are some companies that do not have their HR departments located in the same buildings as other departments and HRIS can provide the necessary portal to eliminate the need for travel to discuss HR related difficulties.
HRIS Efficiency
According to Sadri and Chatterjee (2003) computerized HRIS function enable, faster decision making, development, planning, and administration of HR because data is much easier to store, update, classify, and analyze. By making HR information readily available, HRM can increase efficiency by making decisions sooner. In a 2013 study conducted by Barzegar, Araghieh, and Asgarani, results showed that the role of management information systems in the dimension of human resources includes: training human resources, giving speed to the assigned duties and better usage from the resources of MIS and technology are effective in increasing efficiency and productivity. Productivity allows for successful organizational functioning with limited resources. This translates into good customer service, which then makes for a better work environment. A better work environment is a key factor in HR managers’ duties to reduce turnover rates and assist in employee satisfaction
. HRIS is a significant factor that can provide better analytical information to human resource departments. Information such as employee turnover and retention rates or business sales performance can help determine where the strong and weak areas of the company are located internally and externally. This analytical information can be used to provide improvements for talent recruitment process, predict patterns of successful operation, and understand what factors create high performance employees. Other information extracted from HRIS can identify skill gaps to determine which online tranings are not beneficial. Monitoring how well employees understand information presented in virtual trainings though knowledge checks at the end of sessions provide further useful information and, in turn, will enable them to increase competitiveness and implement new programs to reengineer the company’s functioning. Using computer technology in these processes ensures accurate results and offer substantial simplification and timeliness over manual processing. Consequently, the vast majority of HR functions have had some degree of automation applied in order to gain both efficiency and effectiveness. A similar study conducted by Sammy Shiri in 2013, produced results that showed that, out of 104 respondents, 78.85% agree that HRIS delivers strategic competencies and increased administrative efficiency and 21.15% highly agree. A majority (78.85%) of the participants agree and 21.15% highly agree that HRIS has enhanced organizational performance. All variables that were measure can be used to make the conclusion that HRIS significantly contributes to human resource and overall organizational efficiency.
Conclusion
Automated systems created by HRIS allow HR specialists to manage administrative duties more rapidly and efficiently and provide those HR executives with effective decision-making processing information enabling them to carry out their assigned duties for their organization and improve the implementation of training and staff development. Human resource information systems are a major factor in closing the communication gap between HR departments, employees, and other department personnel. In their 2002 HRIS survey, Watson Wyatt found that the top four metrics used in formal business cases supporting HRIS were: productivity improvements within the HR organization, cost reduction, return on investment, and enhanced employee communication. Since these information systems are cost-effective, as they are able to reduce the need for more HR personnel and in- person trainings as well as pinpoint errors and flaws, it is easier for HR department to create and implement new programs and projects at a faster pace, therefore, increase productivity. Regardless of the size of an organization, HRIS can be a strategic tool allowing for more room to compete and survive in the market by reducing the amount of HR manual tasks and increasing the productivity and efficiency of an organization.

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Globalization has taken a toll on organizational functioning and as a result of this. (2019, May 16). Retrieved January 17, 2021, from https://midwestcri.org/globalization-has-taken-a-toll-on-organizational-functioning-and-as-a-result-of-this/

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