hris-a tool for effective strategic human resource management

HRIS-a tool for effective Strategic Human Resource Management

Co-authored by Dr. Vaishali Rahate, Asso. Prof, Datta Meghe Institute of Management Studies, Nagpur.

Ms. Vaishnavi Deshmukh, Student, Datta Meghe Institute of Management Studies, Nagpur. Ms. Pallavi Dixit, Tech Mahindra

[This research paper is the outcome of the project work of the student]

Abstract:

In this digital era the scope of strategic human resource management has immensely

increased. It is the need of the hour to implement HRIS in all the organizations to meet the

challenges of Strategic Human Resource Management, especially using data analytics to

improve HR related decisions to manage business needs for talent and skills.

This paper deals with a survey of the employees working in IT industry who are/are not using

HRIS in their organizations. Descriptive statistics and T-test is applied to analyse the data.

The research highlights the benefits of adapting HRIS in organizations.

Key words: HRIS, Strategic Human Resource Management

Introduction:

In today’s competitive global business environment, it is widely accepted that Information

Systems (IS) are very important for organisations to survive and prosper. Information

Systems have become crucial lifelines and act as “enablers and facilitators” to provide and

analyse cohesive information. It is because of a highly competitive environment which has

compelled the organisations to perform instantaneously to protect their existence and position

in the industry. Thus, organisations are constantly struggling to innovate new products and

design effective processes to gain competitive advantage.

Though, HRIS is the need of the hour, still many companies restrict the use of HRIS to

documentation level only. This research is an eye opener to the non users of HRIS as it

highlights the various benefits of using HRIS in a proper way in an organization.

HRIS: A HRIS, which is also known as a human resource information system or human

resource management system (HRMS), is a blend of human resources and technology

Journal of Shanghai Jiaotong University

Volume 16, Issue8, August - 2020

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https://shjtdxxb-e.cn/ Page No: 236

through a software. It means that all the HR activities can be performed electronically rather

than doing it manually. It is especially beneficial as the huge amount of data can be analysed

perfectly and the HR software can be customized as per the systems and SOPs of the

company.

Computer based Information Systems make the work simplified in any organization, but due

the fact that the data related to human resources in an organization is so vast, that HRM

function is the last targeted option for automation in most of the companies.

Strategic HRM: Strategic human resource management is the practice of attracting,

developing, rewarding, and retaining employees for the benefit of both the employees as

individuals and the organization as a whole. The companies which follow Strategic human

resource management practices tend to interact with other departments within the

organization to understand their goals and create strategies that align with both departmental

and organizational objectives. This results in understanding, aligning and strategical

advancement of the organization as a whole as the human resources are the pillars in any

organization.

Literature Review:

Sr.

no

Title Author Findings

1 The role of HRIS in SHRM

4th August, 2007

Asafo-AdjeiAgyenim

Boateng

(Swedish School Of

Economics and Business

Administration)

The results of the survey reveal that HR professionals not only

consider HRIS usage as a support for strategic HR tasks but

also perceive it as an enabling technology. The study also

indicates that large sized firms are most likely to experience

considerable HRIS usage in support of strategic HR tasks.

2 A Study of the Effectiveness

of Human Resource

Information System on an

Organisation with special

reference to Macleod’s

Pharmaceutical Ltd.

(May 2014)

Shikha Singh Research findings clearly show that HR executives are well

aware that they can increase the efficiency of HR planning

through HRIS, saving time and cost.

3 Integrated role of

HRIS&SHRM (SHRIS) in

Banking sector of Pakistan

January 2015

Prof. Dr. Abdul

GhafoorAwan

The research results concluded that Human resources

information system has a strong relationship and positive

impact on various strategic human resources management

decisions whereas organizational performance depends on

Strategic Human resources management.

4 The Impact Of HRIS on NikhalAswanth Kumar, The results concluded that the implementation of a proper



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Organisational Efficiency:

Random or Integrated and

Holistic?

January 2013

SanjanaBrijballParumasur HRIS has the potential to bring about operational effectiveness

and enhance the realisation of the HR and corporate strategy,

thereby ensuring organizational effectiveness.

5 Human Resource Information

System and its impact on

Human Resource Planning: A

perceptual analysis of

Information Technology

companies

Sep,-Oct. 2012

Dr. Shikha N. Khera

Ms. Karishma Gulati

After investigation it is concluded that HRIS has various

benefits but the foremost is HRIS stores ample data about the

employees of the organizations that helps in escalating the

snail’s pace of HRP. HRIS also helps in the strategic activities

of HR managers and more in training and development,

succession planning, applicant tracking in recruitment and

selection and manpower planning. While analyzing the overall

contribution of HRIS in HRP it is concluded that HRIS

identifies occupied and unoccupied positions in an organization

very effectively and accurately

6

Human Resource Information

System (HRIS): Important

Element of Current Scenario

Sep. - Oct. 2013

Barkha Gupta

This research paper helps to know about how HRIS help the

organization to enhance the efficiency of work.

7 Human Resource Information

Systems (Hris)–Role and

Significance in Today‘s

Global Business

Competitiveness

November 2014

Sanjeevkumar

Dr.K.Mishra

The research emphasized on the use of a Human Resource

Information System (HRIS) should escort to helpful outcomes

for the organization. Decreased costs, improved

communication, and decreases in time spent on routine

activities should create an environment where in the Human

Resources (HR) department would play a more strategic role in

the organization.

Objectives:

To empirically analyze, the extent of impact of HRIS on SHRM .

To what extent HRIS-Subsystems impact the strategic alignment of the HR Functions

Data Collection:-

Primary Data : The data was collected through Questionnaire and interviewing the

employee regarding HRIS system of the organisation.



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Secondary Data was collected From Reports, Websites.

Sample: 40 employees of different IT companies

The data was collected from employees of various IT companies who were using HRIS and

not using HRIS in their organizations. These employees are referred to as USERS and NON

USERS in this research.

Hypothesis:-

Ha1:-There is significant effect of HRIS on Strategic human resource management.

Data Analysis:



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HRIS implementation gives several benefits to organisations, according to Literature review,

there are numerous benefits ranging from administrative to strategic. The perception of these

benefits was surveyed form USERS and NON USERS on a four-point rating scale, with 1

being “Strongly Agree” and 4 being “Strongly Disagree”.



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Table evidently shows that “Reduced administrative burdens”(M=1.185, SD=0.3958),

“Automated record keeping and Reduced paperwork” (M=1.185, SD=0.3958), “Improved

HR operating efficiency” (M=1.11, SD=0.3203), “Reduced response times and access to

information” (M=1.074, SD=0.2669), have been rated as the witnessed benefits of HRIS,

whereas Decrease time spent in training and save cost per hire(M=2.22, SD=0.8916)

,Increase Flexibility of HR & Increased Knowledge (M= 1.23& SD=0.4653)were rated as the

least seen HRIS benefits.



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Table: Shows the results After Independent T test applied to analyse the Uses of HRIS and

its impact on Strategic function of human resource.

Key Findings & Results:

HRM strategies are well defined and documented:-

There is a significant difference in the scores for users (M=1.259, SD=0.4466) and non users

(M=2.00, SD=0.00) .These results suggest that when organisations use HRIS, their HRM

strategies are well defined and documented.

HRM strategies are aligned with the Business strategies of the organisation:-

There is a significant difference in the scores for users (M=1.222, SD=.4237) and nonusers

(M=2.538, SD=0.5189). These results suggest that when organisations use HRIS, their HRM

strategies are better aligned with the Business strategies of the organisation

HRM strategies are well communicated to all the employees:-

“There is a significant difference in the scores for users (M=1.222, SD=.4237) and nonusers

(M=2.308, SD=0.6304). These results suggest that when organisations use HRIS, their HRM

strategies are well communicated to all the employees”

Performance Indicators for HRM functions are well defined:-

There is a significant difference in the scores for users (M=1.593, SD=.6360 and non-users

(M=2.308, SD=0.7511). These results suggest that when organisations use HRIS, they are

relatively more likely to apply Performance Indicators for HRM functions.

Regular monitoring on performance indicators is done:-

There is a significant difference in the scores for users (M=1.519, SD=0.7530) and non-users

(M=2.333, SD=0.6513) These results suggest that when organisations use HRIS, they are

better on monitoring the Performance Indicators of HRM functions.

Key positions are defined in organisation:-

There is a significant difference in the scores for users (M=1.385, SD=0.4961) and nonusers

(M=2.231, SD=0.5991) These results suggest that when organisations use HRIS, their HRM

strategies are well communicated to all the employees.



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Talent pipeline is maintained for succession:-

There is a significant difference in the scores for users (M=1.519, SD=0.5798) and non-users

(M=1.923, SD=0.4935) These results suggest that when organisations use HRIS, talent

pipeline is relatively maintained for succession.

Sudden exit of key employees has minimal impact on business:-


(M=2.95, SD=0.866) conditions; t (385) =7.69, p=0.000. These results suggest that when

organisations use HRIS, sudden exit of key employees has minimal impact on business.

Competencies and skills required for different jobs positions are well defined for

recruitment.


(M=2.154, SD=0.5547) These results suggest that when organisations use HRIS, their

competencies and skills required for different jobs positions are well defined for recruitment.

Line Managers are involved in the process of selection.


(M=1.846, SD=0.3755) These results suggest that when organisations use HRIS, their Line

Managers are involved in the process of selection.

Formal induction / orientation process is in place to help the new recruits to understand

the Organisation better:-


(M=1.538, SD=0.5189) These results suggest that when organisations use HRIS, aformal

induction / orientation process is in place to help the new recruits to understand the

Organisation better.

Recruitment and on-boarding process is effective:-


(M=2.077, SD=0.7596) These results suggest that when organisations use HRIS, their

recruitment and on-boarding process is effective.

Applicants are selected against organisational rather than job-specific criteria:-



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Mean Scores of users and non-users is 1.185 and 2.615 respectively, which once again shows

destitute condition of this aspect in both the conditions, however statistically, “There is a

significant difference in the scores for users (M=1.185, SD=.0.3958) and non-users

(M=2.615, SD=0.5064). These results suggest that when organisations use HRIS, the

applicants are selected relatively more against organisational rather than job-specific criteria.

Training need analysis is conducted regularly to match changing strategic need of the

organisation:-


(M=2.00, SD=0.8165).These results suggest that when organisations use HRIS,the training

need analysis is conducted regularly to match changing strategic need of the organisation.

Conclusion:

The result clearly indicate that there is a significant difference in the strategic alignment of

various HRM functions among Users and Non-users (HRIS). Results found HRM strategies

to be well defined, documented in organisation where HRIS is used and not only these

strategies found to be aligned with the Business strategies but are also found to be well

communicated to all the employees. Strategic HR Planning also found to be better in HRIS

users category.

Highly significant difference was found in Strategic alignment of Recruitment & Selection

too. It is certainly clear that in Departments where HRIS is used, the trainings are

strategically aligned. In addition, the Performance Management System also found to be

strategically aligned. On the various aspects of Strategic Compensation and Reward

Management, the significant difference was found. All these findings clearly comprehend

that the Human Resource of the department which are using HRIS are more strategically

aligned than the Departments of organisation which are not using HRIS; hence, the research

hypothesis stands true.

The research findings visibly indicate that there is a significant difference in the strategic

alignment of various HRM functions among users and non-users (HRIS). The result is

comprehended for HRM strategies and five other major HR functions for easier comparison,

these are: Strategic Human Resource Planning, Strategic Recruitment and Selection, Strategic



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Training and Development, Strategic Performance Management, Strategic Compensation and

Reward Management.

Highly significant difference was found in strategic alignment of Recruitment & Selection.

Findings show that competencies and skills required for different job positions are well-

defined for recruitment in organisations where HRIS is used, as compared to other

organisations where use of HRIS is still lacking. It is also established that information about

job vacancies is readily available and line managers are involved in the process of selection.

Formal induction / orientation process by HRIS users has been found to be in place to help

the new recruits understand the organisation better. Recruitment and on-boarding process

effectiveness is rated better as well. Moreover, applicants are selected against organisational

criteria rather than job-specific criteria in HRIS user organisations.

REFERENCES:

Burma,Z.(2014).Human Resource Management and Its Importance for Today’s Organizations,

International Journal of Education and Social Science, 1(2)

Hagood, W.& Friedman, L.(2002). Using the Balanced Scorecard to Measure the Performance of Your

HR Information System. Public Personnel Management, Vol. 31, No. 4. pp. 543–557

Miller, J. S., & Cardy, R. L. (2000). Technology and managing people: Keeping the "human" in human

resources. Journal of Labor Research, 21(3), pp. 446-4

Nagendra,A & Deshpande,M (2014). “Human Resource Information Systems (HRIS) in HR Planning

and Development in Mid to Large Sized Organizations, Science Direct Elseiver Volume 133, pp. 61–

67.

Saleem, Irfan. (2012). Impact of Adopting HRIS on Three Tries of HRM: Evidence from Developing

Economy.



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hris-a tool for effective strategic human resource management

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