Essay: Management information system

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1-INTRODUCTION

In a competitive era which is lead by globalization and technology in the last few decades has increased the need of information system. Because of this Organizations have started to use information systems in various functions and department. Human resources management is one of the departments that mostly use management information system. Human resource management reduce the manual workload in big organizations began to electronically automate many of these processes by introducing innovative HRIS technology. The revolution in information technology is completely and rapidly redefining the way things are done in each and every field of human activity. Human resources and information technology are two elements that many firms are looking to utilize them as strategic weapons to compete. Information systems especially developed for human resource management referred as “Human resource information system”.
(HRIS) is an integrated system which makes use of computer software to manage data about human resources in the organization. Human Resources Information Systems (HRIS) are systems used to collect, record, store, analyze and retrieve data concerning an organization’s human resources, but it is not merely reduction of administrative procedures. So, “Human resource information system (HRIS) is a systematic way of storing data and information for each individual employee for planning, selection, about welfare & safety, termination & promotion”

1.1 MANAGEMENT INFORMATION SYSTEM

MIS is an integrated information system, which is used to provide management with needed information on a regular basis. Management information system supplies information for strategic, tactical and operational decision making to all subsystems within the organization.
According to Waston (1987) management information system (MIS) is “an organizational method of providing past, present and projected information related to internal operations and external intelligence. It supports the planning, control and operation functions of an organization by furnishing uniform information in the proper time frame to assist the decision makers”. The information in MIS describes the firm or one of its major systems in terms of what has happened in the past, what is happening now and what is likely to happen in the future. The information is made is available in form of periodic reports, special reports and output of mathematical simulations. All managers use the information output as they make decisions to solve the firm’s problems (Raymond, 1990).
MIS include the following functional system:
 Accounting information system
 Manufacturing information system
 Enterprise information system
 Decision information system
 Quality management information system
 Executive information system
 Marketing information system
 Human resources information system
MIS is useful for each level of management. The information needs and decision making activities of the various levels of management
TOP LEVEL MANAGEMENT
The MIS helps the top management in goal setting, strategic planning and developing the business plan and their implementation. The MIS also helps the top management in the following decision making;
 Strategic planning and policy
 External environment which affect the organization
 Competitive analysis
 Performance evaluation
MIDDLE LEVEL MANAGEMENT
The MIS helps the middle management in short term planning, target setting and controlling the business functions. It can be also be used across the organization as an information utility to:
 Budget control
 Problem solving
 Evaluation of resources usage
 Information for coordination of work units
 Information for delivery programs
LOWER LEVEL MANAGEMENT
The MIS helps the lower level management by providing the operational data for planning, scheduling and controlling. MIS provide following information:
 Information for routine decision making
 Information for problem solving
 Information for service delivery

1.2 HRIS –WHY IT IS IMPORTANT?
Human Resources Management (HRM) is the attraction, selection, retention, development, and utilization of labor resource in order to achieve both individual and organizational objectives. Human Resources Information Systems (HRIS) is an integration of HRM and Information Systems (IS). Human resource Information system helps HR managers perform HR functions in a more effective and systematic way using technology. It is the system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information regarding an organization’s human resources.
According to Tannenbaum(1990) “A human resource information system (HRIS) is a system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information about an organization’s human resources.” The HRIS system is generally a part of the organization’s larger management information system (MIS) which would include accounting, production, and marketing functions etc. HRIS implementation importance is mentioned as following.
 Recruitment: It contains the all data which is requiring for recruitment and training.
 Human resources planning: It finds to provide information that could assist human resource recruitment, job planning, succession planning and input for skill development
 Personnel Information: It includes employee information such as transfer monitoring and increment and promotion details.
 Training Information: It provides information for designing training course substantial, arrange for need base training and cost analysis of training etc.
 Health Information System: This subsystem provides information for maintenance of health related activities of the employees.
 Payroll System: It consists of information regarding wages, salaries incentives, allowance, and privileges like deduction for provident fund etc.
 One-stop shopping. One of the most frequently mentioned advantages of an HRIS is that you enter information only once for many HR-related employee tasks. And, similarly need to update only one place when employee information changes.
 Personnel Statistics System: it is also known Integration of data. It means the different parts of the system can “talk to each other” allowing more meaningful reporting and analysis competences, with internal evaluations and audits and preparation of data.
 Reengineering human resource: Increase competitiveness by Reengineering human resource processes and functions.
 Employee satisfaction: Improving employee satisfaction by delivering human resource services more quickly and accurately, maintaining, and managing benefits for the employees of an organization.
 Data accuracy: Improved accuracy is likely assuming data are entered and manipulated correctly.

1.3 BENEFITS OF HUMAN RESOURSE INFORMATION SYSTEM
According to Kovach (2002) HRIS advantages are as follows:
 Account of employees is an active part of the HRIS
 Shift the focus from the operational HR information to strategic HR information
 Proliferation competitiveness by refining the operational transactions in the HR department;
 The capability to implement a number of different operations related to HR;
 Re-engineering the entire HR department.

HRIS advantages can classify into three dimensions:
1. The advantages for management of the company
2. The benefits for the HR department and
3. The benefits for employees.

I. The Benefits for management of the company
 Rational decision making.
 Cost reducing
 Control on budget
 A clear business vision and mission
 A clear insight into the process of hiring and firing employees, at the all level.
 Business transparency,
 Rational decision making.
 Cost reducing and better control of budget

II. The Benefits for the HR department
The HR department also has several of advantages of HRIS:
 Single database of all employees: Possession of single database of all employees in the company with all necessary information and opportunities for different reports,
 Real times system: The ability to update databases in real time, which is of extreme importance to regionally diversified companies
 Elimination of manual work: Elimination of paper forms that are much slower and with much higher probability of errors
 Minimize human error: Minimize errors caused by human factor;
 Reduced delays and uncertainties it provide a standard guidelines which have reduced delays and uncertainties;
 Elimination of redundancy: reduction or elimination of redundancy in the system
 Standardization: Normalization and regulation of business processes
 Reliability of data; Highly reliable data in the system, whether it is external or internal unpleasant situations
 Employees’ retentions: the ability to establish full control over internal migration of employees and the management.
 Avoid hostile circumstances: The ability to take preventive measures to avoid unpleasant situations in the company.
The Benefits for employees
HRIS provide the benefits to the employees are the following:
 Enhancing staff morale.
 Data availability 24/7
 Independent access to data
 Time & cost saving
 Automatic tracking and reminder system to the business responsibilities and occasions
 Motivating employees decisions making process and initiatives on the basis of information obtained in the HRIS
 Reducing the time required for desired information, which are available in the system
 The ability to attend internal training courses via the web and the development of personal skills and knowledge
Krishna and Bhaskar, (2011) summarized the benefits of HRIS as mentioned in Figure

1.4 LIMITATIONS OF HUMAN RESOURSES INFORMATION SYSTEM

HRIS is very beneficial for every organization it offers various applications; but it also suffers from problems which need to be addressed to make HRIS more effective. The major problems of Human Resource Information System are as follows:
 Costly: It can be expensive especially for smaller companies in terms of money and manpower requirements at implementation stage.
 Staffing: There’s maybe the cost of employing an IT specialist to manage the system. Its effective application needs large-scale computer literacy among the employees responsible for maintaining HRIS.
 Security: Security is one of the biggest concerns. Systems must be designed to prevent unauthorized access to sensitive and personal data, need to be monitored and maintained data in high security zone.
 Need HRIS specialist: There is a demand for computer and technology specialists with general information technology knowledge, and finding a qualified specialist with human resources functional area knowledge can be difficult.
 Need human interventions: Computers cannot replace human being because human interventions will always be there to improve the existing situation. an HRIS involve human error during information input, costly technology to update your system and malfunctions or insufficient applications to support your human resources needs
 Regular updating is required: Regular updating of data is very important, otherwise it will not able to produce good and sufficient information.

HRIS software:
 Abra Suite: For human resources and payroll management.
 ABS (Atlas Business Solutions): General Information, Wages information, emergency information, Reminders, Evaluators, Notes customer information, Documents and photos, Separation information.
 CORT: HRMS: Applicant tracking, Attendance tracking and calendars, Wage information, Skills tracking, Reports-to information, Status tracking, Job history tracking, Cost center tracking, Reviews and tracking, Mass update and change tools etc.
 HRSOFT: Identify and track senior managers, Assess management skills and talents, Generate a wide range of reports, resumes, employee profiles, replacement tables and succession analysis reports, Identify individuals for promotion, skills shortages etc.
 Human Resource Microsystems: Sophisticated data collection and reporting, flexible spending accounts, compensation, employment history, time off, EEO, qualifications, Applicant/Requisition Tracking, Position Control/Succession Planning, Training etc.
 ORACLE- HRMS: Oracle Self-Service Human Resources, Payroll, HR Intelligence, Oracle Learning Management, Oracle Time and Labor management.
 PEOPLESOFT: Enterprise e-Recruit, Enterprise Resume Processing, Enterprise Services Procurement, Workforce Planning, Warehouse etc.
 SAP HR: Human Capital Management (HCM) for Business, All-in-One: Rapid HR.
 SPECTRUM HR: it is a Web-based HRIS product designed for organizations with up to 10,000 employees.
 VANTAGE: HRA: ‘Point-and-Click’ report writing, internal Messaging System for leaving reminders to you, to someone else or to everyone using HRA – very useful for Benefit Applications, Disciplinary Actions, and Special Events etc.

2. INTRODUCTIONS OF ORGANIZATIONS WHICH ARE SELECTED FOR STUDY

2.1 RAJASTHAN FINANCIAL CORPORATION (RFC)

The RFC was established in 17th January, 1955 under the SFCs Act, 1951, under the State Government, for providing long term financial funding to tiny, small scale and medium scale industries in the State of Rajasthan.

Its head office is in Tilak Marg, Udyog Bhavan, Jaipur.

Basically there are four main motives of the Rajasthan Financial Corporation Since, it’s very foundation,

I. Encompassing a helping hand to varied entrepreneurial section of society for their financial requirements.

II. It’s aimed at encouraging the process of industrialization of its parent State.

III. The Corporation is working as a Initiator of development for converting into practice the industrial policies and priorities of the Central and the State Governments.

IV. And also for providing and improving upon immediate assistance in the planned and balanced development of industries in the State, particularly in the small and tiny sectors.

2.2 RAJASTHAN STATE INDUSTRIAL DEVELOPMENT & INVESTMENT CORPORATION LIMITED (RIICO)

The RIICO came into existence in 28th March, 1969 under Companies Act, 1956 when Rajasthan State Industrial & Mineral Development Corporation (RSIMDC) and divided into Rajasthan State Industrial Development &Investment Corporation Limited (RIICO) and Rajasthan State Mineral Development Corporation (RSMDC).

On 1st January, 1980 RIICO has set up 27 Regional Offices all over Rajasthan to administer the development and management of the industrial areas. It focuses on Physical infrastructure as well as social infrastructure. Physical infrastructure developed includes roads, power, street light, water supply, drainage etc.

Its head office is in Tilak Marg, Udyog Bhavan, Jaipur.

RIICO has so far developed 327 Industrial Areas by acquiring around 74228 acres of land. RIICO has catalyzed investment of around 82.16 billion with RIICO’s contribution to term loan being around Rs. 29.55 billion and generating employment of over 1.08 lacs persons. More than 35000 industrial units are in production in these industrial areas.

Among the 244 Industrial Areas developed by RIICO in the State the projecting areas are:

1. Abu Road,
2. Bagru
3. Bassi
4. Bhilwara
5. Bhiwadi
6. Heerawala
7. Jodhpur
8. Kishangarh
9. Kota
10. Malviya
11. Matsya
12. Neemrana
13. Sanganer
14. Shahjahanpur
15. Sitapura (EPIP)
16. Udaipur
17. Vishwakarma

3. RATIONALE OF THE STUDY

Human resources management is all about manage man in time. It is very important asset for any organization. In this modern and competitive era of computers, generally every organization practice information technology for greater information accuracy, faster data processing, improved planning and program development, and it also enhanced employee communications.
A cross between Human Resource Management and Information Technology, Human Resource Information System is software solution to perform the HR functions of an organization. The goal of the HRIS is to maximize capacity, accuracy and reliability by merging different parts of human resource management such as payroll, benefits management, employee engagement and training, streamlining the processes and transforming it into a less capital intensive system.
HRIS mainly uses integrated databases on which are built a comprehensive set of applications such as leave applications, manpower budgeting, expenses, etc. It also provides reporting and analyzing capabilities to the user which makes the day-to-day function of the HR a lot less cumbersome.
Basically it is all about a system used to obtain, store, manipulate, analyze, retrieve and distribute pertinent information about an organization’s human resources. It is often viewed as a service provided to an organization in the form of information .HRIS helps analyzing the employee’s dedication to his work and his regularity in the organization.
This research work weighs the contribution of HRIS in public sector enterprises. The aim of study is also gather information regarding the implementation of an HRIS, the supposed benefits of the HRIS, satisfaction with HRIS system, and its strategic impact of public sector enterprises.
The main goal of this study is to explore the relationship between HRIS functions and HRM functionalities. This is done with a purpose of observing the significance of HRIS in organizations and the role it plays in maintaining sustainability, growth, expansion or development of different organizations in general and for the public sector enterprises in specific.

4. RESEARCH METHODOLOGY

4.1 OBJECTIVES OF STUDY

The main objectives of the study are:

I. To explore the concept of HRIS (Human Resource information system) in public sector organizations.
II. To find out the benefits of HRIS in Public Sector Enterprises.
III. To understand the role of HRIS in strategic activities of HR departments in Public Sector Enterprises.
IV. To assess the difference between traditional HRM and HRIS.
V. To identify the administrative potential of HRIS in HR departments in public sector enterprises.
VI. To measure employee satisfaction with the HRIS system.

4.2. SCOPE OF THE STUDY
This research will useful for all the public sector organization which are implementing HRIS. Because it will define all the Pros and cons of HRIS, scope of the research can be précised as follows.

 It will examine present scenario, challenges, opportunities, different stages and strategies of implementation of HRIS in public sector enterprises.
 This analytical study will evaluate the impact of HRIS and determine effective and efficient implementation of HRIS.
 This study will facilitate HR function in achieving strategic competence.

4.3. HYPOTHESIS TESTING

H1: There has been substantial increase in performance of public sector enterprises by HRIS implementation.
H2: The employees are satisfied with HRIS system.
H3: By the use of Human resources information system, it is assumed that there are no errors in maintaining the data in public sector enterprises.

4.4. RESEARCH METHOD

This research is a kind of quantitative research. As we know that in social sciences, quantitative research is the systematic empirical investigation of observable phenomena via statistical, mathematical or computational techniques. This study is concerned about non parametric attributes like employees satisfaction, reasons of employee’s dissatisfaction with HRIS system, enterprises success and growth parameters etc.

4.5. POPULATION OF THE STUDY

The population of study is total number of employees of public sector enterprises which are selected for research in Jaipur (Rajasthan).

4.6. RESEARCH DESIGN

The nature of study will be both exploratory and descriptive, as purpose of the study is to gain understanding with the various aspects of HRIS, to achieve new insight into it and reveal exactly the current situation of Public sector enterprises after implementation of Human resources information system.

4.7. TOOLS OF DATA COLLECTION

I. PRIMARY DATA
The primary sources of data which will be use for study: primary data collected through a survey conducted through a questionnaire which consisted of both open-ended and close ended questions.

II. SECONDARY DATA

The secondary data collected for this research from text books, E-books, reference book journals, Research papers, Magazines, newspaper articles. Review articles, websites, database of the organization and in house material of the enterprises etc.

4.8. ANALYSIS OF DATA

In a research when the process of data collection is completed, the next step usually includes the analysis of the data. The analysis of the data depends on a number of factors, such as the type of research question ,hypotheses that are developed and the characteristics of collected data.

The data will be analyzed by applying the applicable statistical tools and techniques such as frequency distribution, charts, diagrams, average, percentage, mean, median, mode, mean deviation, and standard deviation. SPSS as software will be used for analysis of data. Likert’s scale will be used to measure the intensity of respondents towards selected attributes.

5. REVIEW OF LITERATURE

Review of literature is very important for any research work. It is very beneficial for formulating research problem. In this step the researcher has to review the works which is already done by the others. The literature review is important because:

 It defines how the proposed research is related to prior research in statistics.
 It rationalizes the proposed methodology
 It determines the awareness to complete the research.
 It shows the originality and relevance of research problem.

Keeping in view the objectives of the study, the following literatures have been reviewed for considerations.

Tang et al. (1987) in his study stated that an effective HRIS is fundamental to the effective manpower planning and productivity improvement of the employees. It is provide correct data/information through which an organization can forecast and make HR policies for the organization. The research studied the impact of computer technology while maintaining HR records in terms of cost, accuracy, speed, repetition and difficulty in analyzing the data.

Kavanagh et al. (1990) stated that HRIS functions interactively with human resources management systems such as human resource planning, staffing, training and career development, performance management, and compensation management. They further explained HRIS in a three level continuum, namely electronic data processing (EDP), management information system (MIS), and decision support system (DSS)

Lee and Cheung (1991) conducted a study on Human Resource Information System in Hong Kong with 202 organizations of Hong Kong .And according to the study; size of the organization determines its level of sophistication.

According to Ulrich (1997), using HRIS provides value to the organization and improves HR professionals’ own standing in the organization.

Brockbank (1999) suggested the need for HR to become a strategic partner. HRIS provides management with strategic data not only in recruitment and retention strategies, but also in merging HRIS data into large-scale corporate strategy. The data collected from HRIS provides management with decision-making tool. Through proper HR management, firms are able to perform calculations that have effects on the business as a whole. Such calculations include health-care costs per employee, pay benefits as a percentage of operating expense, cost per hire, return on training, turnover rates and costs, time required to fill certain jobs, return on human capital invested, and human value added .

According to Chattopadhyay (2001) mentioned in his research that the environment threat like social and environmental pressures with the advancement in technology lead serious problems for MNCs by therefore, they must be innovative and react quickly by adopting new methods or processes with no other options than to seek new innovations.

According to Ball (2001) the organizational size is a determinant, whether an organization has HRIS at all and whether it adopts certain modules over others (core personnel administration over training and recruitment).

Bussler& Davis (2001) identified in their research that increased use of human resource information systems (HRIS) allows professionals to achieve improved performance and thus facilitate participation in internal consultancy activities.

Kenneth. al. (2002) in his research paper has emphasized upon basically two types of advantages of HRIS first one is administrative advantages which may include employee self-service, interactive voice response etc. and another one is strategic advantages of HRIS which can be in the course of information gathering, handling, and distribution.

Enshur et al. (2002), point out the impact of technology on the processes of acquiring, rewarding, developing, protecting and retaining human resources and conclude that the shift from traditional HR to e-HR can lead to “substantial reductions in cost and time for many HR activities.

Snell, Stuber, and Lepak (2002) have also noted in their research that IT may potentially enable HR to lower administrative costs, increase productivity and reduce response times.

Hendrickson (2003) points out that in his study that HRIS is an integrated system. This is generally used to gather, store, process and analyze and share information regarding of human resources of an organization.

Lengnick-Hall and Moritz (2003) suggested that HRIS, not only reduces process and administrative costs, but can speed up transaction processing, reduce information errors and improve the tracking and control of human resource actions.

Huang et al. (2004) argue that the employees’ needs and preferences are important considerations in designing and managing a business-to-employee system

Vujovic (2005) points out that the modern HR function is not merely reduced to administrative procedures in the processes of recruitment, organizing the employees, regulating their rights and commitments, but also has a major role in forming organizational culture. In the new environment employee can propose, control and execute planning decisions, so development of HR must adapt to the new technology.

Lengnick et al. (2006) point out that HRIS Provides a comprehensive information picture as a single, integrated data base; this database enables organizations to provide structural connectivity across units and activities and to increase the speed of information transactions.

Florkowski (2006) in his study, ‘The diffusion of human-resource information technology innovations in US and non-US firms’, evaluated the diffusion of eight information technologies that are transforming HR service-delivery in North America and Europe. Such information technologies include HR functional applications, integrated HR suits, HR intranets, employee and manager self-service applications, HR extranets, and HR portals.
His research paper exhibited that the modest correlation between the numbers of acquired
Information Technologies (IT) and HR-transactions automation supports the general call for more formalized HR-technology strategies at the firm level to coordinate purchasing and implementation decisions.

Panayotopoulou et al., (2007) mention in his study the human resource management function needs to invest in information technology training and communicate the benefits of employee’s participation and involvement in HRIS services

Carole Tansley and Sue Newell, (2007) ) in his study stated that the knowledge and behavior of project leadership influenced project team trust and social capital development and stressed on the exploitation of this knowledge in the milieu of a global HR information systems.

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