What is Human Resource Information System?

A Human Resource Information System (HRIS) is a software application that manages HR-related tasks and information within an organization.

HRIS software typically includes a range of features that support human resource management activities, such as payroll processing, benefits administration, recruitment and applicant tracking, performance management, and employee recordkeeping.

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Information Systems

Management requires complete information relating to a problem or issue at the right time in order to make effective decisions. The proper collection, handling and provision of right information to the right manager at the right time not only reduce the risk of wrong decisions but also work as an effective controlling technique.

Complexities involved in business and economic activities and voluminous government regulations create the need for supply of right information to the right manager at the right time.

An organizational information system must provide the various types of information required by managers at the various levels of organizational hierarchy with different levels of operational responsibilities, operational control, management control and strategic planning.

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Management’s Needs and Information Systems

The information system comes to the rescue of employees and executives while performing their jobs at their workplace. The system helps them to improve their performance leading to complete job satisfaction.

The information needed by executives differs in quantity and quality according to their position and level in the organizational hierarchy. Traditionally management of organizations can be divided into three levels-top management, middle level management and lower level management.

Top Level Management- (consists of managing director, chief executive officer etc.) requires Decision Support System (DSS) to frame organizational strategy in respect of various aspects of the organization. Middle Level Management- (consists of departmental heads) has to make tactical decisions for which they need the data base system known as management information system (MIS).

Lower Level Management- (consists of front line supervisors, superintendents etc.) has to make operational decisions for actual work performance, the system they require for the purpose is known as the electronic data processing system (EDP). The information needed by the executive depends on his technical background, his decision-making ability and his perception of requirements of information.

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Advantages of Human Resource Information System

The following are the advantages of the Human resource information system–

• large organizations that employ very large number of people, it becomes necessary to employ HRIS
  
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• In a geographically dispersed company, every office requires timely and accurate information about manpower. If information is stored in multiple locations, costs and inaccuracy will increase.
  
  
• Modern day compensation package is complex consisting of many allowances and deductions.
  
  
• An employer has to comply with several labour laws. A computerised information system would store and retrieve data quickly and correctly enabling the employer to comply with statutory requirements.
  
  
• With the help of a computerised personnel information system, employee records and files can be integrated for fast retrieval, cross-referencing and forecasting.
  
  
• Necessary flexibility for adaptation to changes in environment can be built into a mechanised information system.

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Designing a Modern Human Resource Information
System

The steps involved in the development of a sound HRIS are as follows–

• Preliminary Systems Analysis – It involves definition of the problem, specification of objectives and operational needs, constraints affecting the system, making feasibility study and submission of the report.
  
  
• Systems Design – Alternatives to meet the objectives are described and evaluated. The requirements of the chosen alternative are specified and its effects on people are estimated.
  
  
• Systems Engineering – The study of engineering components and their cost effectiveness is made. This study will help the top management to make the right choice.
  
  
• Systems testing and Implementation – The HRIS along with its subsystems should be installed and tested.
  
  
• Systems monitoring and Evaluation – The performance of the system is measured and evaluated so that modifications may be done to solve the human problems in systems design and control.

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Personnel Inventory

Human resource manager requires considerable amount of information and data relating to all areas of HRM. HR information system provides information necessary for planning, controlling, decision-making and preparing reports.

Personnel inventory provides a list of personnel and their background (name, age, qualifications, experience, skills etc.). HRIS contributes to the development of the personnel inventory for manpower planning.

The information needed for personnel inventory is obtained from job applications and questionnaires filled by employees from time to time.

The table below shows the type of information contained in a typical personnel inventory–

1.	Name
2.	Father‘s Name
3.	Age, Gender, Marital Status
4.	Educational Qualifications
5.	Past Experience, Skills and Abilities
6.	Salary, Allowances,Perquisites
7.	Seniority
8.	Increment Date
9.	Transfer/ Promotion Details
10.	Rewards and Distinctions
11.	Employee Potential
12.	Grievances
13.	Discipline / Punishments
14.	Date of Superannuating

The type of information included in personnel inventory depends upon its uses, which include career and succession planning, compensation planning, training, transfer and promotion decisions, organizational analysis etc. E.J.

Morrison has given a comprehensive list that could be recorded and stored in computerised personnel inventory. The table is shown follows-

• Descriptive Data – Name, address, date of birth, marital status and other data that say something about the person.
  
  
• Skills Inventory – A specialised application of descriptive data, such as skills, abilities, job experience and interests. These data may refer to periods both before and after the employee is hired.
  
  
• Organizational Stains – Date of hire, organization location, job title and other job-related data indicating where a person is situated and what work he is doing in the organization.
  
  
• Work History – A compilation of past organizational positions, performance and status change, including raises and changes in location and budget centre. This information may be accumulated from the date of hire, but usually it includes only the most recent 15 to 20 lines of data, covering approximately two to five years of activity.
  
  
• Performance Appraisal – Usually considered highly sensitive data, therefore, appraisal information and promotion potential are often coded.
  
  
• Wage and Salary – All information necessary for wage, salary and benefits administration, as well as that necessary for calculation of gross pay roll and gross-to-net pays.
  
  
• Labour Reporting Data – Time keeping, absence production and labour cost information, work location, supervisor to whom charged; and so forth.
  
  
• Welfare Measures – Vacation scheduling and control, health and safety, education and training information, as well as grievances, company transportation, and other data needed to support special programmes.
  
  
• Recruitment – Applications in process, applications on files, status of recruiting activity, data about schools and follow-up information.
  
  
• Special data banks for research, such as attitude surveys, manpower development, organization planning and selection studies and manpower market analysis.
  
  
• Some firms are also developing non-computerised data bank containing information regarding the externa environment, which is related to manpower acquisition and planning.

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