Professional Documents
Culture Documents
Chapter No. 1
1.1
Introduction
3 | Page
between
Human
Resources
1.
2.
3.
4.
1.4
PROBLEM STATEMENT:
In less developed countries like Pakistan, most of the fi rms are not
familiar with the importance of Human Resources Information
System and thus dont bother to pay much attention on the
Human Resources Information System and its consequences. So
its important to study Human Resources Information System and
its contribution towards the strategic Human resources decisions
and its impact on profi tability of fi rms in these economies.
Past
studies focused mainly on the developed countries and there is
less work done on Human Resources Information System in less
developed countries like Pakistan. It is evident from the extensive
review of literature that Human Resources Information System and
SHRM still lack qualitative and quantitative explanations and
require further comprehensive probing. The impact of HRIS on
Financial performance is also under studied.
1.5
The world has become a global village and it is necessary for the
fi rms to apply new technologies in order to meet competition in
the global economy. Firms grow and require long term strategic
decisions and Human resources are considered as a valuable
Capital of the organization , with eff ective HR organizations can
earn
profi ts
because
of
globalization.
Human
Resources
Information System can positively eff ect both in long term as well
as the short term performance of Banks. Islam et al, (2012)
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5 | Page
The first six chapters are reserved for the theoretical part of the study.
Chapter 1 is the introductory part. It consists of the study background,
the research objective, and the research methodology. This is just to
give a snapshot of the subject matter and the premise of the study.
Chapter 2 presents an in-depth discussion on the HRM concept by
touching on the various definitions, processes and other related issues.
Chapter 3 also throws light on HRIS its development, the various
definitions, and other related issues. Chapter 4 is about Strategic
Human resources management , Chapter No. 5 is about Intergration
between SHRM and HRIS. Chapter No. 6 shows the applicaiotn of
HRIS and SHRM in Banks. In each chapter the literature review
regarding study is provided.
Chapter No. 2
7 | Page
2.2
2.3
Importance
information
of
Human
resources
motivated
employees
for
an
for
salary
and
2.4 HR OBJECTIVES
HRM is useful not only to organization, and the employees working
therein, and also the society at large also fi nd it useful. The
objectives can be as under:
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2.4.1
O RGANIZATIONAL O BJECTIVES :
operations
and
accomplishment
of
goals
to
achieve
effi ciency.
Acquiring right man for the right job at right time in right
quantity, developing through right kind of training, utilizing the
selected
workforce,
and
maintaining
the
workforce
are
the
2.4.2
F UNCTIONAL O BJECTIVES :
2.4.3
P ERSONAL O BJECTIVES :
Internetworked organization are such organizations where all the departments are linked
through networking.
2
Cross departmental functions means that all the departments provide access to other
departments and share knowledge.
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2.4.4
S OCIETAL O BJECTIVES :
2.5
HR Basic Functions:
2.5.1
Organizational Culture
2.5.2
P LANNING
FOR
C HANGE
come
and
fl uctuate.
Planning
go,
for
and
the
change
fi nances
means
of
the
helping
company
employees
2.5.4
H EALTH
AND
S AFETY
2.5.5
R ECRUITMENT
Recruitment
and
retention
AND
are
R ETENTION
vital
part
of
HR
management
for
further
education,
benefi ts
and
compensation
2.5.6
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Professional Development
2.5.7
Medical/dental insurance,
2.5.8
Order laws regarding business includes: Mercantile law, industrial law, sale of goods Act,
Carriage of goods Act, Income tax law.
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2.6.1
NEGOTIATION SKILLS
Eff ective
human
resource
managers
have
communication
and
2.6.2
JOB KNOWLEDGE
many
rules
and
regulations
like
labor
laws,
safety
concerns, health issues and local, state and federal policies that
change regularly. An ability that must be available in successful
human resource managers
legislation
related
to
is the ability to
employment
and
to
stay updated on
be
cognizant
of
2.6.3
QUALIFIED RECRUITMENT
2.6.4
E FFECTIVE T RAINING
2.6.5
Leadership,
I NFLUENTIAL P OWER
or
the
ability
to
infl uence
people,
is
core
their jobs, grip change and make ethical decisions. During diffi cult
situations
is
essential
to
companys
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productivity
and
to
Chapter 3
HUMAN RESOURCES INFORMATION SYSTEM (HRIS)
3.1
I NFORMATION
SYSTEM:
3.3
Literature Review
Fortune 500 companies are those companies have employees more than 500.
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Mayfi eld and his associated has stated that there are seven
components of HRIs as shown in fi gure 1.
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In 2006, Casico used Mayfi eld model. He divided this model into
two parts. The 1 s t part relates to HR practices directly involved
with organizational employees. There are personnel development,
communication and integration, records and compliance, HR
analysis.
1.
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2.
3.
4.
5.
6.
Job placement.
Performance appraisal
Employee benefi t analysis.
Training and development
Health, safety and security
3.3.1
STRATEGIC INTEGRATION
3.3.2 HR Analysis
3.3.3
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Personnel Development
Communication
within
an
organization
provides
healthy
relationship between managers and employees. This healthy
environment helps to promote an organization as a whole. When
all the information is send and received right on time and place
employees are in better position to perform their duties.
(Mayfi eld, et al., 2003).
providing on time
Swiercz, 2005)
data
on
demand
and
supply
(Lippert
and
3.5
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Prepare paychecks.
Payroll report preparation.
Maintain personnel records.
Analysis and use of personnel in an organization.
OBJECTIVES OF HRIS
1.
To provide complete, up-to-date information about
people and job.
2.
To provide personal information at a reasonable cost.
3.
To provide a security mechanism of data by using
password and other authentication process.
4.
To address ethical and moral Issues of Personnel privacy
of data.
5.
To provide automated services to HR department in
performing their tasks.
6.
To generate valuable information to HR department and
contribute
towards
the
strategic
decisions
of
the
organization.
(Rao 200)
FOR
BUSINESS
(Thite
and
FIGURE 2
TYPES OF HRIS
3.7.1
OPERATIONAL HRIS:
3.7.1.2
3.7.1.4
3.7.2
TACTICAL HRIS
Recruitment decisions
Job analysis
Job design
4.
5.
6.
3.7.2.1
Training
Career Development
Compensation
Job Analysis & Design
a) Job Analysis
The procedure for determining the duties and skill requirements
of a job and kind of person who should be hired for it.
Job analysis has two components i.e.
1
Job Description
b) Job Description:
Job description is the process through which we determine the
duties,
responsibilities,
supervisory
responsibilities
and
behaviours required to perform the job
c) Job Specifi cation:
Job specifi cation is the process of determining the job related
skills, abilities required for a job
Job description and job specifi cation are the two important
outcomes of this system. These help managers in many key
decision making process. This system captures information from
forces that are external to an organization like Trade union,
competitor, Government, pressure groups, media and like.
Interviewing the supervisors are also part of this system, these
help the management to make eff ective job specifi cation and
description decisions.
3.7.2.2.
Vacancy positions.
Duty requirement of diff erent positions
c.
List
of
planned
employee
promotion and termination.
d.
Reports on employee appraisal
retirement,
transfer,
3.7.2.3
Satisfi ed employees
organization.
are
valuable
human
capital 9
for
the
HUMAN
RESOURCES
Human capital is the knowledge, training, skills and experience of a firms workers( Gary
Dessler 2012)
10
3.7.3.1
Systems
Supporting
Labour
3.7.4
In the last few years, the software industry has produced several
products that organize the various human resource information
systems into integrated software that is referred as human
resource information systems or HRIS, software. HRIS may be a
part of a whole ERP 1 1 software and part of Big bang 1 2 or it may be
applied separately as independent software as called as Slam dunk 13
. In general, the computerization of HRIS has resulted in an
integrated database of human resource fi les like position fi les,
employee fi les, job analysis and design fi les and many other
human resource fi les are constructed in a coordinated manner
using database management systems software so that application
programs can produce reports from any or all of the fi les.
3.8
Limited-function HRIS:
Diff erent off the shelf sofwares are available in the market that
facilitate the HR managers. These software have limited
capabilities, since there are general purpose software, so
companies develop special purpose software in order to get full
benefi t from HRIS. So there must be a system analyst to analyze
the HR needs of an organization, then programmer to fl ow chart
11
ERP: Those activities supported by multi-module application software that help a company
manage the important parts of its business in an integrated fashion
12
Big Bank: install a single ERP system across the entire organization
13
Slam Dunk : install one or several ERP modules for different departments according to key
business processes.
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3.9
Training Software
Many training software packages are available for all types and
sizes of computers to provide online training for employees. They
include
Chapter Summary :
A Human Resources Information System, is a system that lets you
keep trail of all your employees and information about them. It is
usually done in a database or, more often, in a series of interrelated databases.
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Complete
integration
with
payroll
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and
other
company
CHAPTER NO. 4
STRATEGIC HUMAN RESOURCES MANAGEMENT
4.1
SHRM
SHRM is:
a.
b.
c.
Outcome
Process
Combination of a & b
4.2
Literature Review
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4.3
Aspects of SHRM
1.
4.4
DIMENSTIONS OF SHRM
1.
2.
3.
4.
5.
37)
4.4.1
Supply chain means and includes all the procedures, infrastructure, people, financial
resources , operations involved right from acquisition of material , conversion into finished
goods and delivery to the final customer.
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4.4.2
Restructuring:
skills 1 5
shortage
as
baby
boomers 1 6
begin
to
retire)
sharing
may
be
another
option.
Under
this
arrangement
circumstances
where
it
is
expected
that
the
situation
is
satisfi ed
with
the
arrangement,
that
they
authenticate
16
needs
Looming skills:
Baby boomers:
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of
the
employer.
Excellent
communication
is
4.4.3
Leadership
Through
HRIS
employees
are
motivated
since
their
job
assignments are clearly defi ned and outlined. It is also informed
that what are the expected outcome, so we can say that it is
getting work done. This leads to better performance and
organization is in a good position to achieve its strategic goals.
( Paug 1986).
4.4.4
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Union Management
On the one side the strong union is able to solve the employees
problems and safeguard their interest and get benefi ts for their
members and other employees from owners and on the other side
union is essential for getting motivated and dedicated employees.
Coordination provides a increasing effi ciency in work performance,
so there is need to make a better union management relationship
(Dale S. Beach 2005)
In organizations there is need of highly motivated and committed
employees thus trade union is a valuable sources available with
management to get committed employees. (Bratton and Gold
2003)
Porter model of generic strategies was used to explain HR
strategies. (Jackson and Schuler, 1987; Wright and Snell, 1991).
Labor
management
relations
are
based
on
mutual trust
between
labor
and management.
Establishment of a
relationship of mutual consent and mutual trust and respect
between labor and management, personnel management is
conducted in accordance with four basic principles:
1.
Creating a workplace environment where employee can
work with their trust in the company
2.
Creating a
mechanism for promoting constant and
voluntary initiatives in continuous improvement
3.
Fully committed human resource development
4.
Promoting teamwork aimed at chase of individual roles
and maximum output from entire team .
So it was necessary to use Information technology to support HR.
Ulrich (1997). HRIS has increased the worth of HR managers in
organizations. HR was suggested to be strategic partner in an
organization. (Brockbank (1999). HRIS helps management from
very root level of HR functions of recruitment to highly complex
decisions of strategic vision.
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Chapter Summary :
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CHAPTER NO. 5
HRM and SHRM Integration:
5.1
Literature Review
HRIS and its role in SHRM depends upon size of the organization,
however suffi cient amount of research has not done in this regard
(Kinnie and Arthus, 1996). A few case study and surveys do exist
on the subject but these are more stress on theoretical
prospective. ( Torrington and Hall 2003).
Barney, 1992; Reed
McMahan, 1992
and
DeFillippi,
1990;
Wright
and
18
WWW: World Wide Web, a graphical environment over which the gray traffic passes.
a.
How HRIS facilitated the development and utilization of
organizational core competencies
b.
How HRIs could destroy those core competencies or
inhibit their exploitation.
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Karke (1999)
Karke connected industrial revolution with Information technology
reveloution in terms of expected scope and the eff ect on the
economy and society. He called it digital economics and a Network
Economy.
Three has been three waves of applicaton of
information technology to the business world and these lead to
somewhat electronic strategic supply chain in the end and much
more is expected.
Rouda and Kusy (1995) examined the infl uence of new information
technology based human resource practices on the strategies of
organizations.
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Gerardine
DeSanctis,
Hendrickson 2003:
1986:
15;
Tannenbaum,
1990;
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Florkowski (2006)
Florkowski (2006) conducted a study, The diff usion of humanresource information technology innovations in US and non-US
fi rms, He evaluated eight diff erent information technologies such
as
HR functional applications, integrated HR suits, IVR1 systems, HR
intranets, employee and manager self-service applications, HR
extranets, and HR portals.
But the area he selected and confi ned his study was North
America and Europe.
He concluded that there is a positive impact of human resources
information system on performance of European and North
American fi rm.
HRM and SHRM are correlated on four policy goals, which are
following (Guest 2003):
1.
Strategic intensions:
To make an assurance that HRM and SHRM planning are in
line. There is complete correlation between them.
2.
Commitment:
To ensure that HR are fully motivated, bound committed to
achieve organizational goals.
3.
Flexibility:
Providing autocracy and encouraging creativity in an
organization. Flint et al., (2005). Training and re-training
(Porter 1996)
4.
Quality
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at
in
be
to
Summary :
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CHAPTER NO. 6
Human Resource Information Systems in Banking
Industry
6.1
HIRS
Now the customers expect more from their bankers, they want an
active
and
participative
role
on
the
part
of
bankers.
(Panayotopoulou et al., 2007)
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and
the
like
and
HRIS is now being used not only for administrative purposes but
also for strategic and business decision- making purposes
(Broderick and Boudreau, 1992; Kossek et al., 1994; Kovach et al.,
2002; Ngai and Wat, 2006).
The key concerns regarding implementation of HRIS in banking
sector are:
a.
Whether HRIS depend on size of bank that may be
measured in terms of number of employees?
b.
Whether the benefi ts expected form use of HRIS are
more than the investment that is made for installing and
running a successful HRIS.
c.
Does the bank has suffi cient funds to spare for HRIS.
One of the major barrier to the adoption of HRIS is the
insuffi cient fi nancial support (Ngai and Wat, 2006).
d.
How is HRIS developed, internally or externally?
e.
IS personnel have some technical skills, resulting from
training and experience, that allow them to perform IS
functions. (Alvarez-Suescun, 2007).
f.
What are diff erent types of functions that are supported
by HRIS?
g.
Do the Bank employees are active users of HRIS or
passive.
HR planning;
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Communication;
Rewarding HR
benefi ts); and
Developing
HR
management).
6.2
Scope
of
(performance
HRIS
(training
appraisal,
and
Applications
compensation
development,
in
Banks
and
career
Strategic
Decisions:
The scope of HRIS in Banks can be discussed under diff erent sub
systems as follows:
i. HR planning
of performing
b.
v.
Learning
Management
This
system
helps
to
build
vi.
Performance
Appraisal :
It
provides
data
on
individual
vii: Payroll
deductions
and
taxes,
and
generating
periodic
pay
viii.
Benefi ts
Administration
It
provides
system
for
programs.
These
typically
covers
insurance,
profi t
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C HAPTER N O . 7
Research Methodology & Hypothesis Development
7.1.1
to
incomplete
information.
So,
52
questionnaires
were
addresses
of
the
respondents
were
not
available
therefore their offi ces were addressed. The research period covers
from September 2013 to August 2014.
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7.1.2
Sampling Technique
Collection Procedure
However, supervisor
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7.2
MEASURES
The study have been measured on four diff erent fi ve point likert
scales:
1. The
responses
were
taken
on
5-point
likert-scale
with
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7.3
Hypothesis Development
7.3.1
Research Objectives:
7.3.2
decisions?
To what extent HRIS is used in making Strategic HR decisions
?
a. HRIS is used to support Business process reengineering
b. HRIS is used in recruitment & Selection
c. HRIS is used in maintain healthy union
Management relationship
d. HRIS is used in Providing employment benefi ts
e. HRIS is used in Training and Development
f. HRIS is used in Decision making
Do your professional capabilities enhanced by the use of
7
8
HRIS?
Whether HRIS leads to enhanced performance ?
What is the future of HRIS in Strategic HR decisions in
Banking sector of Pakistan.
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7.3.3
HYPOTHESESE DEDVELOPMENT
of
Hypothesis 1 :
H 0 = HRIS is used in Banking Sector in Pakistan
H 1 = HRIS is not used in Banking sector in Pakistan.
leads to savings in
problems and has
to a pleasant impact
is also increased.
Hypothesis 2 :
H 0 = HRIS is used in support of making
decisions in Banking sector in Pakistan.
Strategic
HR
Hypothesis 3 :
H 3 = There is no positive
between HRIS and SHRM as
Pakistan.
Question No. 4
Is
there
exists
between HRIS and Strategic HR decisions?
relationship
Question No. 17
strategic HR
Hypothesis 4 :
H0= HR officials in Pakistan Banking sector dont view HRIS as
facilitating technology.
H4= HR officials in Pakistan Banking sector view HRIS as facilitating
technology.
(Question No. 12 )
Do HR managers consider HRIS as a facilitating technology?
To fi nd importance of HRIS
resources
management
in
Pakistan.
in Strategic Human
banking
sector
of
Hypothesis 5:
H 0 : HRIS is of great importance in making strategic human
resources decisions in banking sector of Pakistan.
H 5 : HRIS is not of great importance in making strategic
human resources decisions in banking sector of Pakistan.
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Question No. 5
To what
making Strategic HR decisions ?
extent
HRIS
is
used
in
i.
ii.
iii.
relationship
iv.
HRIS is used in Providing employment benefi ts
v.
HRIS is used in Training and Development
vi.
HRIS is used in Decision making
For the purpose of evaluation of results Question No. 6 to
Question No. 11 were put.
A correlation Matrix was established, in this matrix:
HRIS = Human resources information system.
BPR = Business process re-engineering
Rs= Recruitment & Selection
UM= Union & Management
EB = Employees Benefi t Analysis
TD = Training & Development
DM= Decision making
Through
HRIS
employees
are
recruited,
better
working
environment is made and motivation is made, since their job
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Communication
within
an
organization
provides
healthy
relationship between managers and employees. This healthy
environment helps to promote an organization as a whole. When
all the information is send and received right on time and place
employees are in better position to perform their duties.
(Mayfi eld, et al., 2003).
Hypothesis 6 :
H 0 = HRIS have a positive and signifi cant impact on the
professional standing of Bank Employees working in
banking sector of Pakistan.
H 6 = HRIS have a positive and signifi cant impact on the
professional standing of Bank Employees working in
banking sector of Pakistan.
67 | P a g e
professional
capabilities
Hypothesis 7 :
H0=
Extensive
use
of
HRIS
will
lead
performance in Pakistan Banking sector
H 7 = Extensive use of HRIS will not
performance in Pakistan Banking sector
lead
to
to
improved
improved
Whether
HRIS
leads
to
enhanced
Hypothesis 8 :
H 0 = HRIS will have useful involvement in strategic human
resources decisions in Banking sector of Pakistan.
H 8 = HRIS will have no more useful involvement in strategic
human resources decisions in Banking sector of Pakistan.
In order to
formulated:
evaluate
the
results
question
No.
16
is
Question No. 16
What is the future of HRIS in Strategic
decisions in Banks?
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CHAPTER NO. 8
Hypothesis 1
H1: HRIS is used in Banking Sector in Pakistan
H0: HRIS is not used in Banking Sector in Pakistan
The results showed a strong support for null hypothesis , that HRIS is used in banking sector of
Pakistan. Therefore, we accept the null hypothesis and reject the alternate hypothesis.
Hypothesis 2
H0= HRIS is used in support of making Strategic decisions
in Banking sector in Pakistan.
H2= HRIS is not used in support of
decisions in Banking sector in Pakistan.
making
Strategic
The results in this case also supports for null hypothesis and it is inferred that HRIS supports
strategic decisions in banking sector of Pakistan, so alternate hypothesis is rejected.
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Appendices
Appendix (A)
(i)
Cover Letter
Ghulam Haider
Assistant Professor,
Govt. College of Commerce, Qasim Pur Colony Multan.
gccmhs@gmail.com
MANAGER/
HR
COORDINATOR/HR
This research is a compulsory part of my M.Phil thesis. I would therefore be highly obliged if
you could spare some of your valuable time to answer the enclosed questionnaire.
I assure that the responses shall be kept confident and this is only to be used in completion
of my research and there shall be no ultimate use.
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Thanking in anticipation;
Ghulam Haider
Enclosures:
1. Questionnaire
2. Self addressed stamped envelopes.
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QUESTIONNAIRE
The questionnaire is divided into two parts, part 1 st is about Introduction of respondent and
part 2nd consists of 14 questions investigating the research questions. In developing
questionnaire , Hussain et. Al 2006 model of research questions were considered as a
guideline.
Keywords :
HRM= Human resources management
HR=Human resources
HRIS = Human resources information system
SHRM= Strategic Human resources information system
Part 1st
Introductory part
1
What is your
Department?
Part 2nd
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length
of
service
in
HR
Less
Years
than
Five
More
Years
than
Five
More
years
than
10
Investigation Part
(Please in each case, click the option you think fit, from different 5 point likert
scale, given in each case.)
Question No. 1
Do your bank use HRIS in performing its HR operations?
1 = Never, 2 = Rarely, 3 = Often 4 = Mostly, 5 = Always
1
Question No. 2
Question No. 3
Do your bank uses HRIS in Strategic HR Decisions?
1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much
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Question No. 4
Is a relationship between HRIS & SHRM?
1 = strongly disagree, 2 = Disagree, 3 = neutral, 4 = Agree, to 5 =
strongly agree
1
Question No. 5
What is the degree(extent) of using HRIS in making SHRM
decisions
1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much
1
Question No. 6
What is the Impact of application HRIS in making Business
Process reengineering decision
1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much
1
Question No. 7
What is the impact of application HRIS in Recruitment & Selection
1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much
1
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Question No. 8
What is the Impact of application HRIS in maintaining healthy
Union Management relationship
1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much
1
Question No. 9
What is the Impact of application HRIS in determining and
providing Employee Benefits
1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much
1
Question No. 10
What is the Impact of application HRIS in Training & Development
1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much
1
Question No. 11
What is the Impact of application HRIS in decision making
1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much
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Question No. 12
Do HR Managers consider HRIS as a facilitating technology?
1
Question No. 13
Do HR Managers consider HRIS as a new technology?
1
Question No. 14
Do your professional capabilities enhanced by the use of HRIS?
1 = Not at all, 2 = Not , 3 = Neutral, 4 = Much 5 = Very much
1
Question No. 15
Whether HRIS leads to enhanced organizational performance?
1 = strongly disagree, 2 = Disagree, 3 = neutral, 4 = Agree, to 5 = strongly
agree
1
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Question No. 16
What is the future of HRIS in Strategic decisions in Banks?
1= No prospects, 2= Some Prospects, 3=Normal effects, 4= Consistent
positive effects, 5= Very much positive consistent effects.
1
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EMPIRICAL FINDINGS
LIST OF BANKS
Islamic Banks
Conventional Banks
1.Meezan
5.HBL
6.Askari Bank
3.Dubai
Islamic
Pak
4.Al Baraka Bank
8. Bank Al falah
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Correlations
Sig. (2-tailed)
Sig. (2-tailed)
Selection
Sig. (2-tailed)
Sig. (2-tailed)
Sig. (2-tailed)
Development
Sig. (2-tailed)
N
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What is the
What is the
extent of
extent of
What is the
application
application
extent of
HRIS in
of HRIS in
applicaiotn of
making
What is the
maintaining
HRIS in
Business
extent of
healthy
determining
Process
application
Union
and
reengineeri
HRIS in
Manageme
providing
ng
Recruitment
nt
Employee
decision
& Selection
relationship
Benefits
.580**
.608**
.627**
.000
.000
.000
52
52
52
52
.580**
.575**
.545**
.000
.000
.000
52
52
52
52
.608**
.575**
.670**
.000
.000
52
52
52
52
**
**
**
.627
.545
.000
.670
.000
.000
.000
52
52
52
52
**
**
**
.676**
.653
.506
.645
.000
.000
.000
.000
52
52
52
52
.663**
.563**
.715**
.723**
.000
.000
.000
.000
52
52
52
52