Human Resource Information Systems (HRIS)
A human resource information system (HRIS) is a means of acquiring, storing, manipulating, analyzing, retrieving, and distributing pertinent information regarding an organization’s human resources. It may be as simple as a box of index cards or a file cabinet full of manila folders or as complex as an interactive, Web-based computer application with role-based portals (an integrated and personalized interface to information, applications, and collaborative services). Regardless of whether one thumbs through a box of index cards or uses a computer to search data stored on a server, the purpose of an HRIS is to make information about the human resources in an organization available to organizational decision makers.
With the introduction of information technology,computers, and the Internet, today’s HRIS really is a sociotechnical system. A sociotechnical system is a combination of technology and people with inputs, transformations, and outputs. An HRIS sociotechnical system based on computers and information technology consists of hardware (mainframes, workstations, peripherals, and connecting networks); software (operating systems, utilities, application programs, and specialized codes); physical surroundings (building structures and working environments); people (individuals, groups, roles); procedures (management models, reporting relationships, documentation requirements, data flow, rules, and norms); laws and regulations (equal employment opportunity, privacy, etc.); and data and data structures (how data are collected and archived and to whom they are made available). Consequently, to be effective, an HRIS must blend the technical expertise of information technology professionals with the people-management expertise of human resource professionals. A technologically sophisticated HRIS will not yield desired benefits if it is used incorrectly or if it is ignored when it could make a difference. Likewise, sophisticated employees and managers will not be able to make their maximum contributions to organizational performance if the HRIS does not have the capabilities to provide them with the information they need in a timely fashion.
Three major types of information are contained in an HRIS: organizational information, job information, and employee information. Organizational information may include policies, procedures, and processes. Job information may include position title, number of current vacancies, qualifications needed, place in career ladder, salary range, replacement candidates, and turnover rate. Employee information may include biographical data, equal employment opportunity classification, education, date of hire, position held with company, salary history, performance ratings, training, prior work experience, developmental needs, career interests/objectives, specialized skills, honors and awards, benefits, licenses and certifications, payroll information, attendance data, tax deduction information, pension contributions, and turnover. One issue of concern regarding employee information is how long to keep it. State laws and practices vary, but record retention periods can range from 1 year for hiring records not related to hired employees to 30 years for some medical records.
Information about human resources is collected when individuals apply for jobs (e.g., completing an application form) and then added to or modified throughout an employee’s tenure with an organization (e.g., updating an employee’s education qualifications in a personnel file). In the past, changes in employee information were made manually on paper entirely by administrative staff in the human resource (HR) department. Today, much information can be collected and input—by those outside of the HR department—online through Web sites, workstations, interactive voice response (telephonic), or freestanding kiosks. In addition, many organizations make it possible for employees to “own” their information and maintain it themselves online. Thus, when something changes in their lives, such as the birth of a child, employees can update their own HR information directly.
Information about jobs, work processes, and other organizational issues is collected from managers and subject-matter experts for input into the HRIS. Organizational information is also modified and updated to reflect changes, for example, in job descriptions or business strategies.
Within the present business environment, even the smallest organizations are likely to keep human resource records in some type of computer file. Commonly available software programs, such as Microsoft’s Access and Excel, can be used to create a rudimentary HRIS. Larger organizations are more likely to use specialized applications, such as ABRA, that provide greater data integration and HR functionality. Larger organizations also are more likely to use enterprise resource planning (ERP) systems, such as SAP, which integrate HR information with financial, operational, and strategic information.
An HRIS relies on relational database technology for storing and retrieving information. Rather than duplicating information (e.g., name, age, address, job title, and pay rate) in each of several separate files (e.g., payroll file, benefits file, employee records file), a relational database shows information only once in an appropriate table (e.g., a table of demographics, a table of benefits, a table of employee skills). The relational database software can then link the tables together and locate and combine information from many tables for analysis or report generation. Consequently, both inputting and processing times can be reduced greatly.
Increasingly, HR departments are relying on networking applications that enable centralized data storage with decentralized access to information. A client-server system has a server that provides the centralized storage of information, while the client allows end users access to the portions of the data they need. Client software makes it possible to tailor data access depending on different organizational roles (e.g., managers have access to different information than do employees).
The Internet has increased the flexibility of developing client-server systems. Organizations can maintain their own servers or “lease” servers from other providers for centralized data storage. Then, through browser-capable device access, such as personal computers, personal data assistants, cellular telephones, and computer kiosks, clients can obtain needed information from the server.
Analysis of information in an HRIS can range from the tailored and self-generated processes needed by the small-business owner using office software applications to the workforce analytics and real-time “management dashboards” that provide users of sophisticated HRIS software with an array of automatically generated assessments. These analyses can be used to create reports for internal and external stakeholders, who may then use them for making decisions or determining compliance.
An HRIS is composed of several subsystems: a transaction-processing system, a workflow system, a reporting system, a decision support system, and an executive support system. The transaction-processing system contains records of employee activities, such as tracking time and attendance or enrollment in various benefits. This record-keeping repository feeds into other subsystems, such as the workflow subsystem and the reporting subsystem. The workflow subsystem facilitates the routing and transfer of forms or other work process information from person to person or department to department. Work processes, such as recruiting, selecting, and orienting new employees, are captured in this subsystem. The reporting subsystem generates two types of reports: (1) predetermined, regularly generated reports, such as payroll and equal employment/affirmative action, and (2) ad hoc inquiries, such as the number of employees with specific skills, the number of employees who chose a particular benefit option, and so on. The decision support subsystem uses transaction data but makes it possible to go beyond simple report generation. These subsystems typically incorporate rules, formulae, or specialized displays designed to help end users make specific decisions, such as how to allocate merit increases. The executive support subsystem provides support for firm-level or strategic decision making. This subsystem draws on multiple sources of data for decisions, such as choosing a site for a new plant. The number of subsystems in any particular HRIS will vary depending on the size of the organization, the hardware and software used, and the needs of the end users.
Organizations that want computerized human resource information systems have several alternatives available to them. They can create their own HRISs in-house, or they can buy the software from a vendor. The HRIS software may be a stand-alone system with only HR functionality, or it may be part of an integrated ERP system. The HRIS can be installed on in-house computer systems or reside on servers owned by the software vendor. Today, many systems that once were available and affordable only to large organizations are also available and affordable to smaller organizations.
Early uses of the HRIS focused on supporting transaction processing; however, today, these systems increasingly are being used for process improvement and strategic purposes. Process-based uses focus on solving a specific problem, usually with a tangible cost impact inside the organization. For example, costs are reduced and accuracy is improved when employees are allowed to enter and monitor their own administrative data using self-service HR applications. A strategic focus goes beyond transactions and processes and seeks to connect HR activities with improvements in revenue generation. For example, one large retailer use