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Review of Literature

Studies show that HRIS applications in human resource (HR) help in achieving primarily three objectives (Broderick and Boudreau, 1992). HRIS was categorized in three objectives i.e. cost reduction/efficiency gains, client service improvement/facilitating management and employees and improving the strategic orientation of HRM/innovation (Broderick and Boudreau, 1992; Rul et al., 2004). Rul et al. (2004) added a fourth dimension to it i.e. allowing integration of HR functions. These could be set as HRIS goals and taken as the basic reasons for adoption of HRIS in any organization. Over the past two decades, there have been a number of studies on HRIS. These studies have focused on the type of applications that predominate in HRIS (Broderick and Boudreau, 1992; DeSanctis, 1986; Martinsons, 1994), the contexts necessary for the successful implementation of HRIS (Yeh, 1997) as well as the conditions that support successful HRIS (Haines and Petit, 1997). Martinsons (1994) clarified the usage of HRIS as per the sophistication. He described the use of HRIS for administrative purpose i.e. in employee record-keeping, payroll, payroll benefits etc. in HR as unsophisticated (Martinsons, 1994). Studies have concluded that HRIS has mostly used for these HR activities (Altarawneh and AlShqairat, 2010; Ball, 2001; Hussain et al., 2007; Ngai and Wat, 2006; Rul et al., 2004). Automation, streamlining administrative tasks, deletion of repetitive activities and the subsequent effects of these applications help HRIS to achieve basic purpose of cost and time reduction, process automation and efficiency gains (Altarawneh and Al-Shqairat 2010; Ball, 2001; Martinsons, 1994; Ngai and Wat, 2006; Rul et al., 2004). The use of HRIS in training and development, recruitment and selection, HR planning and performance appraisal was viewed as sophisticated (Ball, 2001; Martinsons, 1994). Timelessness in data availability, removal of data duplication and improvement and streamlining of HR functions by HRIS helps in employee service improvement. Introduction of web based HRIS shifts HR activities to line managers and employees through self service technology. Therefore time squandered on basic administrative tasks can now be spent on strategic issues and implementing progressive new plans of the organization. It allows HR professionals to help employees design their career plan, training and development etc.. Integration of HRIS with other information systems along with applications of HRIS in implementing HR policies and practices that support business strategy of organization makes use of HRIS strategic (Marler, 2009). Kossek and her colleagues have also argued that a corporate human resource information system can practically and symbolically transform human resources into a strategic business partner (Kossek et al., 1994). Rul et al. (2004) found that an organization with global presence or multi-plant company requires integration. Imagining HR in these organizations without a web based HRIS applications is a myth. Many studies have been carried out on various applications of HRIS (Ball, 2001; CedarCrestone, 2006; De Alwis, 2010; Kinnie and Arthurs, 1996; Lin, 1997; Teo et al., 2001; Saharan and Jafri, 2012). A study in Taiwan found that HRIS is most extensively utilized at the EDP level, followed by the MIS and DSS levels (Lin, 1997). Kinnie and Arthurs (1996) in their survey on UK companies revealed that the most frequent uses of HRIS were in operational areas of employee records (72%), payroll (66%), pensions (57%) and employment contract dministration (48%).

Another study found that employee record-keeping (96.8%), payroll (90.5%) and benefits management (57.1%) were the most common HRIS applications (Teo et al., 2001). Ball (2001) in a survey in UK found that current employee etails and organizational salary details were the most frequently applied areas. Later, Ngai and Wat (2006) found that in Hong Kong companies the two major applications of HRIS are providing general information (86.4 %) and payroll services (84.7%). Recruitment and selection (11.1%) and succession planning (7.9%) were least used HRIS applications (Teo et al., 2001). Ngai and Wat (2006) also showed that corporate communication (20%) and recruitment and selection (26.9% and 19.1%, respectively) were least used HRIS applications. These studies show that HRIS is more commonly used for administrative purposes like employee record-keeping and payroll rather than for strategic purposes (Groe et al., 1996; Kovach and Cathcart, 1999). However, many studies have shown that companies have started using sophisticated HRIS like training and development, performance management, compensation management and corporate communication (CedarCrestone, 2006; De Alwis, 2010; Saharan and Jafri, 2012). CedarCrestone (2006) in HCM Surveys on US companies broadened the scope of HRIS applications. Administrative HRIS was still the most popular application (62%), companies reported an increasing use of strategic applications i.e. talent acquisition services (61%), performance management (52%), or compensation management (49%) (CedarCrestone, 2006). De Alwis (2010) in his study on Sri Lankan industry shows that the most commonly used modules in HR department are training and development, recruitment and selection and performance appraisal and are being utilized by all the companies. Recent study on Indian companies also found that HR professional had major applications of HRIS as recruitment and selection (67.2% and 71.9%, respectively), pay roll service (67.2%), providing general information (67.2%), compensation (67.2%), performance appraisal (62.5%) and job analysis and design (62.5%) (Saharan and Jafri, 2012). Also HRIS was quite in use in corporate communication (48.2%) (Saharan and Jafri, 2012). The most popular future applications of HRIS had been predicted as training and development (72.5%), career development (60.8%) and performance appraisal/management (58.8%) (Teo et al., 2001). There appears to be shift towards strategic applications of HRIS. The possible reason could be that most of the organizations which are using HRIS for few years for now, want to explore possibilities of strategic HRIS applications over the next few years (Teo et al., 2001).

Human Resource Information System (HRIS) seems to matter for Human Resource Management (HRM) in the current digital economy. Many firms transform their HRM functions from the manual work processes to the computerized work processes. Interestingly, an HRIS is utilized for administrative purposes rather than analytical purposes. Moreover, the paper introduces the important issues to consider for an HRIS development and implementation: the HRISs needs analysis, the HRIS team functional duties, the HRIS costs, and the criteria in selecting an HRIS Vendor.

INTRODUCTION
Since the emergence of the Internet throughout the world around 1995, many business functions have been transformed. After dealing with accounting, finance, and marketing, many companies are shifting their attentions to find a better way of monitoring their Human Resource Management (HRM). Many companies are transforming their HRM functions from manual workflow to computerized workflow. Computers have made the resource data into a simple task. Computer hardware, software, and databases help organizations maintain and retrieve human resource records better and simpler. According to Gara (2001) and Walker (1982), a Human Resource Information System (HRIS) will help organizations keep an accurate, complete, updated database that can be retrieved when needed from reports If you take a look at the Human Resources department as it has evolved over the years, you will probably be unsurprised to find that the role of an HR executive has lately come to resemble nothing so much as a project fit for Sherlock Holmes. Between factors like globalization and variable flextime schedules, freelance workers and temp agents, a typical organization's workforce is in an almost perpetual state of mutability and tracking down and recording accurate employee information can wind up being downright detective work. The job of HR management, however, is hardly just to super-sleuth about. There are far more important undertakings to which they should be applying their valuable skills, and time squandered on basic administrative tasks is time which could have otherwise been spent on innovating company strategy and implementing progressive new plans. Herein lies the merit of

Human Resource Information System, or HRIS (also known has HR Software, or HRMS), technology. An HR Information Systems is a software application designed specifically for the aggregation and synthesis of employee information. These HR systems can provide functions varying from payroll and benefits breakdown to the relevant juxtaposition of available positions with qualified applications already existing within the system. With employee data neatly woven into an orderly web of HRIS databases, HR executives become free to pursue more critical- and creative-thinking projects. Meanwhile, the automation of the data significantly reduces the likelihood of entry errors and discrepancies between records. And lastly, the formation of one vast, unified reservoir of employee information allows for more complex and integrated analysis by company executives, facilitating better decision-making and greater business efficiency. All in all, an HRIS cannot fail to improve the performance of business operations, dovetailing different HR processes and revolutionizing the ways in which a company manages its employees. The aim of this article is to detail just what you should look for in an HR system, how to go about buying one, what you can expect to pay for it, and, most importantly, how to optimize your HRIS to the greatest advantage of your business.

Meaning and Definition of HRIS


Human Resources Information System is a system that lets you keep track of all your employees and information about them. It is usually done in a database or, more often, in a series of interrelated databases. These systems include the employee name and contact information and all or some of the following: department, job title, grade, salary, salary history, position history, supervisor, training completed, special qualifications, ethnicity, date of birth, disabilities, veterans status, visa status, benefits selected, and more. Any HRIS include reporting capabilities. Some systems track applicants before they become employees and some are interfaced to payroll or other financial systems. An HRIS is a

management system designed specifically to provide managers with information to make HR decisions You notice that this is not an HR system...it is a management system and is used specifically to support management decision making. The need for this kind of information has increased in the last few years, especially in large and/or diverse companies, where decision making has been moved to lower levels And large companies generally have the advantage when it comes to HRISs...the cost to develop an HRIS for 200 people is usually close to that for 2000 people...so it is a better investment for large companies. larger companies tend to have systems that have a fair degree of customization. Therefore, HRIS can be defined in simple words as given below. Human Resource Management Systems (HRMS, EHRMS), Human Resource Information Systems (HRIS), HR Technology or also called HR modules, shape an intersection in between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the planning and programming of data processing systems evolved into standardised routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible.

HRIS Features
It goes without saying that no two HRIS software solutions are exactly alike. Nevertheless, there is a standard set of base features that every HR system is essentially expected to provide. The four most common are the following: Payroll The Payroll module collects employee time and attendance information from the databases, calculates taxes and other deductions, and automatically generates paychecks according to executive dictate. Time and Labor Management The Time and Labor Management module pools and analyzes information on employee work/time so that executives can accurately manage labor resources. This typically leads to reduced labor costs and improved understanding of labor functions. Benefits Administration The Benefits Administration module enables executives to conveniently observe and manage employee participation in the various benefits programs offered by the company. Certain modules even feature a self-service capacity which allows employees to access their benefits round-the-clock, review their program options, and easily enroll in those plans for which they qualify. HR Management

The HR Management module compiles all of a business's workforce data, allowing executives to keep track of employee details such as contact information, training status, skill development, and benefits and compensation programs. Employee Self-Service As you've undoubtedly realized by now, an HRIS can work wonders when it comes to lightening the administrative load for a business's HR department. But HRIS was not created solely for the benefit of the management. An HRIS system also opens the door to a whole new level of employee self-service, allowing workers to remotely access useful tools and essential data through the use of the system's interconnected databases.

Manage Employee Records Easily organize all of your employee information in one online HRIS database! Securely manage information such as employee personal data, job responsibilities, benefits, contact information, hiring checklists, and much more in one central location instead of 10 different spreadsheets.

Track Required Employee Training Providing the proper training to your employees is vital to ensure that they are successful on the job. Our featured HRIS provider will help you track each employees required and completed training such as first aid, CPR, food handler's permits, and other required employee training and certifications.

Store Important Employee Documents Store your forms, applications, training documents, employee handbooks, and much more in our simple, secure system. No more worrying about making sure all your locations are using the most current version!

New Hire Tracking & Onboarding New employees waste much of their first day on the job filling out endless forms when they could be getting to work. The HRIS system allows you to track the specific steps of your onboarding process, and allows you to print out all of your new hire paperwork already prepopulated with the employees information and ready to be signed.

Employee Database Reporting in Real Time From reports as simple as birthdays, to details on benefits enrollment, this system can give you what you need right when you need it. Keep your team up-to-date on your organization with reports that take minutes rather than hours to create. Take a look, for instance, at an ambitious employee eager to work his way up in the company. With an HRIS, the worker can easily log into the system to review internal position openings, submit an application, and check the status of any pending applications at his leisure. And

consider an employee who's recently moved rather than add to the clutter on HR's desk, the worker can update his own contact information himself by merely logging into the HRIS system and making the necessary changes. And of course, there's always the availability of online benefits enrollment, which allows employees to simply log in and browse the plan options for themselves, rather than schedule a meeting with a benefits expert who's got plenty of other things on his plate.

Most HRIS Contain: Personal history - name, date of birth, sex Work history - salary, first day worked, employment status, positions in the organization, appraisal data and hopefully, pre-organizational information Training and development completed, both internally and externally Career plans including mobility Skills inventory - skills, education, competencies...look for transferable skills

Cost
Obviously, one of the primary concerns when it comes to investing in an HRIS is cost. The truth of the matter is that the average cost of an HRIS system can be difficult to narrow down; these applications can range from many thousands to even millions of dollars. Then factor in the costs of hardware, installation, integration, customization, and technical support, and the price of your comprehensive software solution will probably total several times the cost of the HRIS package on its own. There are certain choices that can dramatically impact the price tag on your HRIS, however. When it comes it vendor selection, for instance, bear in mind that opting for a large suite-model package is going to be far pricier than a small niche application. Another point to consider, though, is whether or not your business will need to integrate the new HRIS with a lengthy string of existing systems. In certain cases, though a niche program may initially be less expensive than a full suite, the challenge of integration can drive costs so high that in the long run it may be more cost-efficient to go ahead and invest in the suite package, where the simple act of adding a new module to an active full-service application is a breeze. Last, but certainly not least, it is vital that you remember the cost of training your employees to use the new HRIS. Getting workers to learn the ropes of a new system can be expensive, but failing to push their adoption of the software can be downright disastrous. Many employees in the HR department will be initially uncomfortable with the introduction of an HRIS they will feel that the computer is taking over the jobs they used to do, and they will be afraid that they're expendable. It is essential that they be trained to understand the proper use of the system so that they can realize their new potential for innovative business strategy rather than mundane managerial tasks. And that is another key thing to keep in mind when calculating the HRIS package's projected return on investment, don't forget the intangible efficiency benefits that can't always be assigned a simple dollar value.

Basic system requirements


Desktop PCs for accessing and inputting information locally. Standard browsers are used to access information (e.g. Netscape or Internet Explorer). Organization-wide server. In a small company this need be nothing more than a PC as well. The server must have an intranet server software package installed (Microsoft Internet Information Server, or Netscape Communications Server are examples.) Server-side software such as HTML, Java, Javascript, Perl. Intranet communications protocol running on both PCs and the server. Relational database/Information processing software for records, payroll, etc. If data is to be accessed then the procedure is made slightly more complicated with the need for CGI scripts and database server software on the server. Basic documents such as policy manuals typically loaded in HTML but formats such as Adobe Acrobat PDF are also an alternative.

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