HUMAN RESOURCE INFORMATION SYSTEM

INDIVIDUAL ASSIGNMENT

WEB BASED HRIS-BENEFITS AND RISKS

Submitted to:

Prof. Francis Castelino

Submitted by:

Mayank Patnaik (U111032)

Table of Contents

INTRODUCTION...........................................................................................................................................3

NECESSITY FOR WEB-BASED HRIS SOLUTIONS........................................................................................4

CLASSIFICATION.......................................................................................................................................4

ARCHITECTURE-SERVICE ORIENTED ARCHITECTURE...............................................................................5

FEATURES AND BENEFITS........................................................................................................................7

RISKS AND FUTURE GROWTH................................................................................................................10

CONCLUSION.............................................................................................................................................10

REFERENCES..............................................................................................................................................14

INTRODUCTION

While designing an HRIS system, irrespective of the company the system is being designed for,

two of the key parameters that have to be consciously retained in memory include the

transparency and accessibility of the model. That is, the software should be available, on-

demand, to all employees of the company irrespective of their position, on a round-the-clock

basis; the reason for this is that it is imperative that all employees have access to HRIS-related

information in terms of viewing and inputting, as this information largely relates to their

functioning and performance within the context of the organization. Accessibility of the HRIS is

an important factor as well; one that contributes directly to the first issue mentioned, that of

transparency, and simultaneously ensures that the system is accessible from multiple locations to

meet critical demands.

The primary of focus of this paper is to analyze the structure and functionality of web-based

HRIS’s; in particular, how their unique features provide specific advantages for organizations,

over and above those features already offered by conventional HRIS’s.

Conventional HRIS systems are traditionally designed to be accessed within the company’s

private intranet; there is generally little scope for handling contingencies where it may be

necessary to access the company’s HRIS externally.

Companies are taking advantage of the Internet for HRIS in three ways. First, they use the

Internet as a means for communication and data exchange. Second, they use the Internet as a

place to obtain information and expertise. Third, they use the Internet to acquire new applications

(or software) that enables them to perform new and different tasks.

Web based HRIS systems are gaining popularity as the movement away from locally deployed

systems gains popularity. Many organizations have found considerable savings in cost and time

to deployment through web based applications. This trend is also known as software as a

service (SAS). The HR industry will continue to see increasing sophistication in online HRIS

systems as the products mature and become more sophisticated and intuitive to use. Every

enterprise level organization will benefit from reviewing all available options when choosing

their next HRIS.

NECESSITY FOR WEB-BASED HRIS SOLUTIONS

HR transaction processing activities are complicated, requiring the use of a number of separate

systems at all locations. Using current systems, it is difficult to quickly and easily generate

company-wide HR reports and information to support management requirements. Existing HR

systems are not flexible enough to evolve with changing business needs.

CLASSIFICATION

Two groups of products in the web-based HRIS segment are available. One comprises web-

enabled packages, while the other relates to web-native software. "Web-enabled" generally refers

to products that were developed for client/server architecture and adapted to work in a web

environment. By contrast, web-native packages are built exclusively for use on the Internet. The

advent of web-native software for the HR market is relatively recent.

Web-native HRIS applications are based on the open standards of the Internet and designed from

the ground up to run on both the Internet and intranets. In general, casual users, power users,

developers and administrators all gain access to the HRIS packages' features and functions

through HTML-based pages (or, increasingly, XML-based pages) using a standard web browser

such as Microsoft's Internet Explorer.

Web-enabled applications usually comprise new code added as a layer on top of existing

client/server architecture code. The effective integration of the two often-mismatched

technologies provides a design challenge for developers. The focus of this paper is on web-native

applications, in view of their potential and key role in HRIS functioning in the future.

It's not always practical for vendors to web-enable client/server applications. For example, in the

case of employee self-service software, its related applications are transactional in nature. Users

want to input information into the system and get results back quickly and without any fuss.

Real-time nature of the system can be compromised in a situation such as the one outlined above.

One of the key benefits of employee self-service is that it allows workers to conduct transactions

from their home computers. At home, most workers use 56KB modems or slower broadband

connections. If a web-enabled application has a clunky data transformation process, slower

bandwidth only serves to exacerbate the issue.

ARCHITECTURE-SERVICE ORIENTED ARCHITECTURE

In SOA, software applications and business processes are presented as collections of standards-

based components, or "services," each performing a discrete function. The self-contained

services are loosely coupled rather than hard-coded together as they were in the past. The

services can be built from scratch or created by wrapping existing business logic (code that spells

out business rules) and exposing users to it via standard interfaces. Standards, particularly the

XML-based collection of web services, have enabled the creation of common SOA environments

that can easily interact with one another.

These discrete sets of pieces perform functions useful to various end-user applications which

cover different HR functions. A high degree of customization of software for specific needs is

possible in this manner.

By moving to the services architecture, companies may define the process first and then use

services that support that process; this ensures customization of the HRIS to meet their specific

needs – providing the same functionality as would be obtained if the HRIS was developed and

hosted internally by the company, but with the added benefits provided by the Internet-based

character of web-based HRIS’s.

The highest promise of SOA is that the user would be able to define the process and then select

the pieces - from third parties or from internal development or legacy systems - that best meet

the needs, and link them all together into a single seamless recruitment procedure no matter what

software is used.

SOA promises to support this kind of flexibility, which would also let the end user easily change

the business process without revamping all the pieces. And the end users would not need to

purchase all the applications a vendor offered - only the pieces needed. In building the pieces,

vendors are using open standards, including web services and XML, especially the XML

schemes produced for HR by the HR-XML Consortium.

SOA offers enterprise computing users a means of escape from the inflexible and incompatible

collections of IT systems and applications that most companies have accumulated over many

years. The difficulty and cost of getting such systems and software to interoperate, not to

mention the challenges of modifying them to adapt to changing business requirements, have

overwhelmed IT budgets and held back innovation. SOA lowers the interoperability hurdles and

converts monolithic and static systems into modular and flexible components. The open systems

nature of the solutions offered ensure a high degree of customization and cross-compatibility

across different software vendors and their associated solutions.

[ Service-oriented architecture ]

Registry

ProviderConsumerFind

Publish

Interact

FEATURES AND BENEFITS

Web-based HRIS’s, as their name suggests, are typically accessed using a browser, where the

user enters the URL of the site housing the HRIS. Once the user has logged into the site, all the

functionality of the HRIS specific to his company becomes available to the user.

The immediate advantages of a system built using this design framework are intuitively obvious.

Convenience and accessibility are immediately present, and there is no need for reliance on the

company’s private intranet to access the HRIS.

As is the case in most HRIS’s, web-based systems offer separate sets of functionality for

managers and employees, and provide self-service options for both types of users. In the case of

managers, through the HRIS web site, it is possible to readily access information including

employees' basic personal information, pay, background, benefits, time and attendance,

investments, training, incentives and career development. These results are live, linked to the

current information in the database; continuous updating of data on a real-time basis is thus a

design issue that is addressed in a web-based HRIS system.

In addition to the above set of features, a module for applicants also typically exists within web-

based HRIS’s , letting the applicant create and track requisitions, scan resumes, call up standard

interview questions and send standard response letters. The advantage of a feature such is this is

greater integration of the company’s HR functions at the online level, bringing employee

recruitment and selection within the scope of the system.

Web-based systems typically comprise several in-built report templates, accessible online and

covering a variety of organizational functions. Usage of these templates can drastically cut time

requirements in drafting internal reports for the company.

Several new-generation web-based HRIS’s also provide a host of additional features such as

compensation analysis, succession planning, skills management, a built-in organizational

charting feature Thus, in addition to the features outlined above, their overall functionality is

comprehensive and frequently covers the key HR functions of recruitment, performance

management and training.

Technical advantages also exist when web-based HRIS’s are implemented for an organization.

Installing additional software locally on each system, with associated file-size and resources

overheads, is not required. The entire application is hosted on the web-site and can be accessed

from office or from home, requiring the use only of an Internet browser for access.

Licensing the software also provides an innovative, unique set of options. Organizations can

typically choose to either lease the software, often on a monthly basis, or purchase it outright;

maintenance and support is built-in and provided irrespective of the option chosen. Many web-

based HRIS’s typically provide migration options for companies to shift from one payment mode

to another; this enables them to initially evaluate the software on a leasing basis, before

determining whether the software fits their organization.

Multiple other features also exist, which may not be present in a typical locally-developed HRIS

application suite. For many multinational companies, managing a global workforce presents its

own unique set of challenges. Typical web-based HRIS services incorporate the company’s

global workforce under one system, making it easy to report on the company’s global enterprise

and eliminating the need for separate systems in each country. Web HRIS’s usually displays the

local language, currency, date format and policies/plans applicable to that country - no matter

where they are around the globe.

With a web-native application, the transaction takes place between the user's browser and the

web server. As long as there's adequate network bandwidth, the transaction goes smoothly.

Server up-time issues that often affect service in intranets in a company become a virtual non-

issue, as the web HRIS’s servers are online most, if not all, of the time.

Web-based Human Resources Information System (HRIS) companies can put power back in the

hands of payroll management. Such systems offer a unified self-service interface for employees.

Payroll processing is integrated seamlessly on the back end. The best Web-based HRIS providers

can accommodate any payroll processing provider.

Because of this flexibility, organizations that use such Web-based HRIS providers can change

their payroll provider at any time, and the change is totally transparent to the organization’s

employees. Whether the employee is using HR, time and attendance, pay stub access, expense

management, or benefits on the system, the look and feel remain the same. There is no need for

an organization to feel handcuffed to a particular vendor because they don’t want to retrain

hundreds, if not thousands, of employees on a new system.

Reduction of internal support phone calls is another positive aspect of the Web-based HRIS.

When the company is global in nature, with offices and plants located in diverse regions

throughout the world, installing a payroll management system allowed restricted security to each

location for HR managers to add, look up, or report on data for their individual group of

employees. The amount of time to generate fresh data, and the number of internal

communications that have to be made, usually through phone calls, are reduced drastically. In

addition to fewer internal customer support hassles – and the freedom of not having to retrain

employees on the new system – organizations that implement a unique Web-based employee

interface reap a host of other competitive benefits:

The ability to switch providers as business needs dictate

Empowerment for managers with built-in workforce reporting tools, no matter which

payroll package is chosen

Time savings on almost all transactions with the move from a paper-based system to an

online system

Increased availability of information

Instead of relying on the payroll processor or service bureau to build interfaces, development

teams are creating and testing interfaces for security, reliability, and system integrity. In addition,

unified database architecture is unmatched in the industry for data synchronization and real-time

access. Managers using a robust reporting toolkit are getting the latest information; since there is

only one database, there are no data transmission “cracks.”

RISKS AND FUTURE GROWTH

Extensive re-training of employees, a key requirement of shifting the HRIS, is a major challenge

that companies and employees face, as it involves an entire technology paradigm shift. Although

the core functions of the HR software, such as payroll processing and performance management,

remain the same irrespective of the software used for the concerned purpose, re-training is

required for users to get acquainted with the interface and features provided by the software. This

often requires a significant time commitment and cost overhead to the company,

Users also need to acquaint themselves with the increased complexity encountered by them

while interacting with the new system. Familiarity with technical terms like SQL servers, Open

Database Connectivity, web servers and Crystal Reports becomes an essential part of the

training. In several cases, individual departments have had to interact more with their company's

information systems department than was the case with the earlier, intranet-based HRIS.

Customizing issues are also faced by adopters of this technology. The features that are expected

may be well-hidden or in some circumstances may not be available. Though the system is as

easy to use as any web browser, some training is required to take full advantage of the many

options available. Also, a trade-off for having a purely web-based system is that the familiar

Windows look and feel on screen is not present; instead, it is replaced by a customized GUI

specific to the vendor.

CONCLUSION

There is no doubt that the Internet has forever changed the way that HR departments function. In

fact, virtually every aspect of HR has been touched by the e-bug, from online benefits to Internet

recruiting to e-learning to online 360-degree performance appraisals to compensation planning.

Once organizations understand the benefits and disadvantages associated with this old but newly

applied technology, they can decide which of their processes are best-suited for web delivery and

build a business case around implementation. With the advent of office applications being

increasingly available online, and with the inherent advantages of the web-enabling process in

terms of flexibility, efficiency and cost-effectiveness, web-based HRIS software has the highest

growth potential of all the different flavors available in the HR management software area.

Increasingly, organizations prefer web-based HRIS solutions rather than expanding client-server

architecture. Almost every company now has an intranet portal and HRIS is a part of it. For e.g.

Infosys has their intranet portal called Sparsh, Wipro has myWipro, Deloitte has DeloitteNet. Of

course these portals are role based and hence HRIS on these portals are accessible only to the

desired employees.

Companies are taking advantage of the Internet for HRIS in three ways. First, they use the

Internet as a means for communication and data exchange. Second, they use the Internet as a

place to obtain information and expertise. Third, they use the Internet to acquire new applications

(or software) that enables them to perform new and different tasks. Web based HRIS systems are

gaining popularity as the movement away from locally deployed systems gains popularity. Many

organizations have found considerable savings in cost and time to deployment through web

based applications. This trend is also known as software as a service (SAS). The HR industry

will continue to see increasing sophistication in online HRIS systems as the products mature and

become more sophisticated and intuitive to use. Every enterprise level organization will benefit

from reviewing all available options when choosing their next HRIS.

One of the major advantages of web-based HRIS is that it can be extended to people outside the

organization. So it can be a direct and efficient medium for potential employees to apply to the

organization. The web-based HRIS can be made accessible to the general public in a limited way

so that job seekers can take advantage of it. This will also avoid the money involved in middle

level organizations like temp agencies and other recruitment agencies.

Cost-effectiveness is another key factor to be considered. Most online, web-native HRIS’s

provide the company with a choice of either purchase or lease of the software. The leasing option

enables companies to make an educated assessment of the relevancy of the software to their

company. The trade-off of developing the software in-house, with the time commitments and the

cost overheads associated with the development process and the bandwidth and space

requirements once the HRIS is in place, are often found unfavorable by several companies,

notable small start-ups and medium-sized companies, who then prefer the option of customizing

the software externally, allowing the web-based provider to tailor the existing commercial HRIS

model to the specific, unique needs of the organization.

Features and functionality is a major draw for web-based HRIS’s as well. Additional features

such as report templates simplify conventional office procedures to a significant extent,

providing features not present in conventional HRIS solutions. A significant time saving is

experienced on account of these additional features; in addition, web-interfacing also allows for

enhanced ease of communication with the company’s clients, enabling first-hand and speedy

response about employee performance in client projects; these may be readily integrated into the

employee appraisal and feedback system.

The self-servicing nature of the solution makes it an attractive option for both managers and

employees; this is on account of the real-time nature of the software which minimizes response

times and greatly streamlines communication across different levels of the organization.

The software-on-demand nature of the web-based architecture allows for a great deal of

flexibility in how the software is designed. Specific modules that are applicable to the company

may be chosen while peripheral or non-essential ones may be left-out. This enhances task

simplicity and ensures that users aren’t bogged down by multiple extraneous features which are

non-critical to effective functioning.

Accessibility is a key issue handled by means of making the HRIS available on the web.

Employees and managers can access the function and carry out specific objectives simply by

logging in from wherever a computer terminal is present; usage is not restricted to within the

office alone. It is an important observation that cutting-edge security is provided for all online

transactions, which means that higher and easier accessibility does not in any way compromise

the security of employees’ confidential data.

The scope of potential future possibilities for web-native HRIS systems is enormous.

Customizability could be extended to individual modules, so that customers not satisfied with

existing module implementations may choose to code their own modules to further enhance their

needs, building on the already existing code-base for the software. The open systems nature of

web-based HRIS’s could make further transitions to other software easier, allowing the locally

written code to be easily ported to other platforms and technologies. This will be especially of

use to business analysts and software technologists in the HR function.

Users will be able to easily redefine business processes, refine and improve them, and include

data or applications from other applications outside HR; this could be across diverse cross-

functional areas such as finance, and sales and marketing.

A continuing major challenge that is faced by companies, and indeed one that remains a major

technological obstacle in web-native HRIS’s gaining widespread acceptance, is the problem of

reconciling the existing IT infrastructure in the organization to meet the new connectivity and

database-oriented demands that are created by migrating from an intranet-based local solution to

a web-based one. The challenge lies in effective reallocation of resources to better meet the

changed networking and resource-based needs of the organization. A difficult fact that has to be

addressed is the question of revamping the architecture throughout the entire organization, as

HRIS systems by definition can only be installed on a whole-company basis. This becomes a

major issue for large MNCs faced with the burden of migration of software on a global level;

indeed, this is a major reason for web-based HRIS’s getting acceptance mainly among smaller

start-ups and mid-sized organizations.

Web-based HRIS systems may therefore be safely considered to be the next logical step ion the

evolution of HRIS systems. In conjunction with the increasing degree of office application-

integration with the web that is currently being witnesses, the forthcoming decade may well

witness a paradigm shift towards the ‘Web-integrated Office’, where most transactions are

carried out online and the administrative dream of a truly paper-less office inches towards

reality.

REFERENCES

1. Native or Enabled: What's the Difference? - Internet human resource management

software: HR Magazine, August, 2001; by Bill Roberts

2. New HR systems on the horizon: a more flexible architecture promises to

revolutionize HR technology: HR Magazine, May, 2006; by Bill Roberts

3. Web-based HRIS Meets Multiple Needs - Brief Article: HR Magazine, August, 2000;

by Jim Meade

4. Five Steps To Human Resources Software Technology System:

http://humanresources.about.com/od/hristechnology/a/hr_technology.htm

5. Human Resource Information System (HRIS), Technology, Web, Internet:

http://humanresources.about.com/od/technologyhrisintranets/Human_Resource_Informa

tion_Systems_HRIS_Technology_Web_Internet.htm