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What is HRIS -
A human resource information system (HRIS) is an information system or managed service that
provides a single, centralized view of the data that a human resource management (HRM) or
human capital management (HCM) group requires for completing human resource (HR)
processes.
Many well known examples of the use of information technology for competitive advantage
general, these systems use information or processing capabilities in one organization to improve
the performance of
another or to improve relationships among organizations. Declining costs of capturing and using
information have joined with increasing competitive pressures to spur numerous innovations in
The ideas do not constitute a procedure leading inexorably to competitive advantage. However,
they have been of value when combined with an appreciation of the competitive dynamics of
Results from "The Gap Between IT and Strategic HR in the UK",(June 2006) a study by talent
management solutions company Taleo, show a significant disconnect between HR's strategic
functions, includeng talent acquisition and workforce planning, and IT ability to support these
business initiatives.
The survey of 100 senior HR managers, all in organizations employing more than a thousand
people, found that only a quarter thought that strategic functions such as workforce planning,
leadership development and performance management were well supported by their IT systems.
Only a third felt confident in systems support for recruitment and employee progression. Other
findings included:
Current technology systems were out-of-date. Over half the respondents (55%) felt that
more sophisticated technology systems and processes were needed to support recruitment
and development.
IT focused on lower- level, administrative functions. Respondents said that payroll and
employee administration (68%) and evaluation and management reporting (53%) were
management (28%), leadership development and planning (25%) and strategic workforce
respondents felt that they had sufficient systems in place to gain a clear picture of existing
employee skills.
The HR function was striving to become more strategic. 63% of respondents cited talent
human resource management vision, To be the leader in the Development And Management of
Human Resource in Order to Achieve the Governments Vision. This vision was decided upon
during the seminar, HR Function Visioning Workshop for Senior Management, which was held
on 21-22 June 1999. This aim is in line with the Governments vision to become a developed
nation by 2020.
Public Service Department (PSD) was selected as the lead agency to spearhead the
implementation of the HRMIS. Officers from process owner divisions comprising the
Remuneration Division, Pension Division (now known as the Post-Service Division), Services
Division, Organization Development Division, Training Division (now known as the Human
Research and Corporate Division, and Psychological Services Division were directly involved in
verifying the human resource processes, which were developed for the HRMIS. They were also
involved in the testing stage of the application to ensure compliance with prevailing policies.
During the implementation stage, they verified the improvements on human resource policies
according to changes that occurred from time to time. The Information Management Division
was given the responsibility to manage the implementation of HRMIS, and provide information
What is strategy?
The origin of this concept can be traced in its military orientation, going back to the Greek word
strategos, for a general who organises, leads and directs his forces to the most advantageous position
(Bracker, 1980; Legge, 1995; Lundy and Cowling, 1996). In the world of business it mainly denotes how
top management is leading the organisation in a particular direction in order to achieve its specific goals,
objectives, vision and overall purpose in the society in a given context / environment. The main emphasis
of strategy is thus to enable an organisation to achieve competitive advantage with its unique capabilities
by focusing on present and future direction of the organisation (also see Miller, 1991; Kay 1993).
Over the past three decades or so a lot has been written under the field of strategic management
about the nature, process, content and formation of organisational strategy (see e.g. Mintzberg, 1987;
1994; Quinn et al., 1988; Ansoff, 1991 Whittington, 1993; 2001). A classical strategic management
process consists of a series of steps, starting from establishing a mission statement and key objectives for
the organisation; analysing the external environment (to identify possible opportunities and threats);
conducting an internal organisational analysis (to examine its strengths and weaknesses and the nature of
current management systems, competencies and capabilities); setting specific goals; examining possible
strategic choices / alternatives to achieve organisational objectives and goals; adoption / implementation
of chosen choices; and regular evaluation of all the above (see e.g. Mello, 2006). The abovementioned
first five steps form part of strategic planning and the last two steps deal with the implementation of an
ideal strategic management process. They also deal with both the content (revealed by the objectives and
goals) and process (for example, planning, structure and control) of an organisational strategy
However, in real life, it is important to note that for a variety of reasons and pressures (such as
scarcity of time, resources, or too much information), top decision-makers do not follow such a formal
and rational approach (also called as deliberate approach) when formulating their
organisationalstrategy. Based on their experiences, instincts, intuition and the limited resources available
to them (along with factors such as need for flexibility), managers adopt an informal and bounded
rational approach (resulting in informal incremental process) to strategy formation (see Quinn, 1978;
Mintzberg, 1978). Mintzberg (1987) says that formal approach to strategy making results in deliberation
on the part of decision-makers, which results in thinking before action. On the other hand, the incremental
approach allows the strategy to emerge in response to an evolving situation. Lundy and Cowling (1996:
23), summarisingMintzbergs thinking, write that deliberate strategy precludes learning while emergent
strategy fosters it but precludes control. Effective strategies combine deliberation and control with
flexibility and organisational learning. A number of scholars (such as Ansoff, 1991) have
The debate with regard to the formation of organisational strategy continues. For example,
Whittington (1993) presents four generic approaches to strategy formation along the two dimensions of
processes and outcomes of strategy (see Figure 1.1). The x axis deals
with the extent to which strategy is formed in a rational, formal, planned and deliberate manner , is a
result of bounded rational approach or is emergent in nature. The y axis relates to continua of outcomes,
i.e. the extent to which organisational strategy focuses on profit-maximising outcomes. The top left-hand
quadrant represents a mix of maximum profit-maximisation and a formal planned and deliberate approach
to strategy formation. Whittington denotes this combination as classical. The combination in the top
right-hand is that of profit-maximisation and an emergent kind of strategy formation called the
evolutionary approach. The other two combinations the emergent approach to strategy formation and
pluralistic types of outcome and deliberate process and pluralistic outcomes are denoted as processual
[Fig. 1.1]
Figure: 1.1 Whittingtons (1993) generic perspective on strategy
Organisations adopting the classical approach (like the army) follow a clear, rational, planned and
deliberate process of strategy formation and aim for maximisation of profits. This approach is most likely
to be successful when the organisations objectives and goals are clear, the external environment is
relatively stable, the information about both the external and internal environment is reliable and the
decision-makers are able to analyse it thoroughly and make highly calculated decisions in order to adopt
the best possible choice. Strategy formulation is left to top managers and the implementation is carried
out by operational managers of different departments. This scenario demonstrates the difference between
first-order strategy or decisions and second-order strategy or decisions, where the former represents
the strategy formation by top managers and the latter is an implementation of the same by lower-level
managers (for details see Miller, 1993; Purcell 1989; Legge, 1995). It also represents the classic top-down
The evolutionary approach represents the other side of the strategy formation continua where
owing to a number of reasons (such as unpredictability of the dynamic business environment) it is not
possible to adopt a rational, planned and deliberate process, although profit-maximisation is still the
focus. In such competitive and uncertain conditions where managers do not feel they are in command,
only the best can survive (survival of the fittest or being at the correct place at right time). The key to
success thus largely lies with a good fit between organisational strategy and business environment (also
The processual approach is different on the profit-maximisation perspective where managers are
not clear about what the optimum level of output is or should be. A high degree of confusion and
complexity exists both within the organisations and in the markets; the strategy emerges in small steps
(increments) and often at irregular intervals from a practical process of learning, negotiating and
compromising instead of clear series of steps. This is related to the inability of senior managers to
comprehend huge banks of information, a variety of simultaneously occurring factors and a lack of desire
to optimise and rationalise decisions. The outcome is then perhaps a set of satisficing behaviours,
acceptable to the dominant coalitions, which is the reality of strategy-making (Legge, 1995: 100).
As the name suggests, the systemic approach emphasises the significance of larger social
systems, characterised by factors such as national culture, national business systems, demographic
composition of a given society and the dominant institutions of the society within which a firm is
operating. The strategy formation is strongly influenced by such factors, and faced by these pressures the
strategist may intentionally deviate from rational planning and profit-maximisation. It will not be sensible
to suggest that organisations adopt only one of the four particular approaches to strategy formation, but
certainly it has to be a mixture of possible combinations along the two dimensions of processes and
profit- maximisation.
Strategic planning:
It is the process by which top management determines overall organizational purposes and
objectives and how they are to be achieved. The linking of HRM with strategic goals and
objectives in order to improve business performance and develop organizational cultures that
foster innovation and flexibility." The role of HR in the strategic planning process depends on the
organization's view of HR. There are three views detailed in the text which involve HR as an
planning process. Obviously, it is our contention that the latter is the appropriate view. In this
view, HR's role would include environmental scanning, competitive intelligence, internal
strengths and weaknesses analysis, and the implementation of the strategies. HR process involves
I. HR Planning Process:
like, why does our organization exist? What unique contributions can it make?
available in the market and the threats that can be faced by the organization, and the weaknesses and
strengths possessed by organizations are also measured and identified through this process.
To achieve the overall mission or purpose of the organization it is required to set specific long-
term and short term objectives and goals. The goal can be defined as desired outcomes to
Greer (1995) talks about four possible types of linkages between business strategy and the HRM
some other figurehead (such as the Finance or Accounts executive) looks after the HR
function of the firm. The HR unit is relegated here to a paper-processing role. In such
Next is the one-way linkage where HRM comes into play only at the implementation
Two-way linkage is more of a reciprocal situation where HRM is not only involved at
the implementation stage but also at the corporate strategy formation stage.
The last kind of association is that of integrative linkage, where HRM has equal
organisational mission level and vision statement; these emphasise where the business is
going, what sort of actions are needed to guide a future course, and broad HR-oriented
Second-order decisions deal with scenario planning at both strategic and divisional levels
for the next 35 years. These are also related to hardcore HR policies linked to each core
devolution?
Debates in the early 1990s suggested the need to explore the relationship between strategic
management and HRIS more extensively (Guest, 1991) and the emerging trend in which HRIS is
concerned with integration and adaptation. Its purpose is to ensure that HRIS is fully
integrated with the strategy and strategic needs of the firm; HR policies are coherent both across
policy areas and across hierarchies; and HR practices are adjusted, accepted and used by line
managers and employees as part of their everyday work (Schuler, 1992: 18).
SHRM therefore has many different components, including HR policies, culture, values
and practices. Schuler (1992) developed a 5-P model of SHRM that melds five HR activities
(philosophies, policies, programs, practices and processes) with strategic business needs, and
reflects managements overall plan for survival, growth, adaptability and profitability. The
strategic HR activities form the main components of HR strategy. This model to a great extent
explains the significance of these five SHRM activities in achieving the organisations strategic
needs, and shows the interrelatedness of activities that are often treated separately in the
This model further shows the influence of internal characteristics (which mainly consists
of factors such as organisational culture and the nature of the business) and external
characteristics (which consist of the nature and state of economy in which the organisation is
existing and critical success factors, i.e. the opportunities and threats provided by the industry)
on the strategic business needs of an organisation. This model initially attracted criticism for
being over-prescriptive and too hypothetical in nature. It needs a lot of time to gain an
understanding of the way strategic business needs are actually defined. The melding of business
needs with HR activities is also very challenging, mainly because linkages between human
resource activities and business needs tend to be the exception, even during non-turbulent times
(Schuler, 1992: 20). In essence, the model raises two important propositions that are core to the
The above discussion summarises the theoretical developments in strategic HRM and its linkages with
organisational strategies. A number of clear messages emerge from the analysis. For example, strategic
HRM models primarily emphasise implementation over strategy formulation. They also tend to focus on
matching HR strategy to organisational strategy, not the other way. They also tend to emphasise fit or
congruence and do not acknowledge the need for lack of such fit between HR strategies and business
strategies during transitional times and when organisations have multiple or conflicting goals (also see
Lengnick-Hall and Lengnick-Hall, 1999). This section further highlights the matching of HRM policies
Michael Porter (1980; 1985) identified three possible generic strategies for competitive advantage in
business: cost leadership (when the organisation cuts its prices by producing a product or service at less
expense than its competitors); innovation (when the organisation is able to be a unique producer); and
quality (when the organisation is delivering high-quality goods and services to customers). Considering
the emphasis on external-fit (i.e. organisational strategy leading individual HR practices that interact
with organisational strategy in order to improve organisational performance), a number of HRM
combinations can be adopted by firms to support Porters model of business strategies. In this regard,
Schuler (1989) proposes corresponding HRM philosophies of accumulation (careful selection of good
candidates based on personality rather technical fit), utilization (selection of individuals on the basis of
technical fit), and facilitation (the ability of employees to work together in collaborative situations).
Thus, firms following a quality strategy will require a combination of accumulation and facilitation HRM
philosophies in order to acquire, maintain and retain core competencies; firms pursuing a cost-reduction
strategy will require a utilisation HRM philosophy and will emphasise short-run relationships, minimise
training and development and highlight external pay comparability; and firms following an innovation
strategy will require a facilitation HRM philosophy so as to bring out the best out of existing staff (also
see Schuler and Jackson, 1987). In summary, according to the external-fit philosophy, the effectiveness
of individual HR practices is contingent on firm strategy. The performance of an organisation that adopts
There is now an established literature in the field of HRM that highlights how possible contingent
variables determine the HRM systems of an organisation (for a detailed review see Budhwar and Debrah,
2001; Budhwar and Sparrow, 2002). One among the long list of such variables is the life cycle stage of
Research findings reveal a clear association between a given life cycle stage and specific HRM policies
and practices. For example, it is logical for firms in their introductory and growth life cycle stages to
compensate employees at the going market rate, and actively pursue employee development strategies.
Similarly, organisations in the maturity stage are known to recruit enough people to allow for labour
turnover/ lay-offs and to create new opportunities in order to remain creative to maintain their market
position. Such organisationsemphasise flexibility via their training and development programmes and pay
employees as per the market leaders in a controlled way. Accordingly firms in the decline stage will be
likely to minimise costs by reducing overheads and aspire to maintain harmonious employee relations (for
more details see Kochan and Barocci, 1985; Baird and Meshoulam 1988; Hendry and Pettigrew 1992;
Miles and Snow (1978; 1984) classify organisations as prospectors (who are doing well and are
regularly looking for more products and market opportunities), defenders (who have a limited and stable
product domain), analyzers (who have some degree of stability but are on the lookout for possible
opportunities) and reactors (who mainly respond to market conditions). These generic strategies dictate
organisations HRM policies and practices. For example, defenders are less concerned about recruiting
new employees externally and are more concerned about developing current employees. In contrast,
prospectors are growing, so they are concerned about recruiting and using performance appraisal results
for evaluation rather than for longer-term development (for details see Jackson and Schuler 1995;
MacDuffie 1995).
Generic HR strategies
Identifying the need to highlight the prevalence of generic HR strategies pursued by organisations in
different contexts, Budhwar and Sparrow (2002) propose four HR strategies. These are:
talent acquisition HR strategy (emphasises attracting the best human talent from external
sources);
effective resource allocation HR strategy (maximises the use of existing human resources by
always having the right person in the right place at the right time);
training them and guiding them in their jobs and career); and
cost reduction HR strategy (reduces personnel costs to the lowest possible level).
Budhwar and Khatri (2001) examined the impact of these HR strategies on recruitment,
compensation, training and development and employee communication practices in matched Indian and
British firms. The impact of these four HR strategies varied significantly in the two samples, confirming
the context specific nature of HRM. On the same pattern, there is a need to identify and examine the
impact of other HR strategies such as high commitment, paternalism, etc. Such HR issues, which have a
significant impact on a firms performance, are further examined in different chapters in this book.
The concept of fit has emerged as central to many attempts to theorise about strategic HRM (Richardson
and Thomson, 1999). Internal fit is the case when the organisation is developing a range of
interconnected and mutually reinforcing HRM policies and practices. This implies that there exists a set
of best HR practices that fit together sufficiently so that one practice reinforces the performance of the
other practices. Synergy is the key idea behind internal fit. Synergy can be achieved if the combined
performance of a set of HRM policies and practices is greater than the sum of their individual
performances. In this regard, the importance of the different HRM policies and practices being mutually
External fit is the case when the organisation is developing a range of HRM policies and
practices that fit the businesss strategies outside the area of HRM. This implies that performance will be
improved when the right fit, or match, between business strategy and HRM policies and practices is
achieved. As discussed above, specific HRM policies and practices are needed to support generic business
strategies, for example Porters cost leadership, innovation or quality enhancement (also see Fombrum et
al., 1984; Schuler and Jackson, 1987). Similarly, Miles and Snow (1984) relate HRM policies and
Over the last decade or so the concept of fit has been further investigated by many scholars (see
Delery and Doty, 1996; Youndt et al.,1996; Guest, 1997; Katou and Budhwar, 2006; 2007). An analysis of
such work highlights that there are generally three modes of fit, or approaches to fit: universalistic,
contingency, and configurational. The core features of these modes constitute the structure of the so-
The universalistic perspective or HRM as an ideal set of practices suggests that a specified set
of HR practices (the so-called best practices) will always produce superior results whatever the
accompanying circumstances. Proponents of the universalistic model (e.g., Pfeffer 1994; 1998; Huselid
1995; Delaney and Huselid, 1996; Claus, 2003) emphasise that internal fit or horizontal fit or
(2000) explain how a large number of HR practices that were previously considered to be distinct
activities can all be considered now to belong in a system (bundle) of aligned HR practices.
Considering that internal fit is central to universalistic models, the main question / problem is
how to determine an HR system, that is, as a coherent set of synergistic HR practices that blend better in
producing higher business performance. The methods used in developing such HR systems depend on the
additive relationship (i.e. the case when the HR practices involved have independent and non-
overlapping effects on outcome), and on the interactive relationship (i.e. the case when the effect of one
HR practice depends on the level of the other HR practices involved) (Delery, 1998). However, in our
opinion universalistic models do not explicitly consider the internal integration of HR practices, and
consider them merely from an additive point of view (also see Pfeffer 1994; Becker and Gerhart, 1996).
Emerging research evidence (see Delery and Doty 1996) reveals the so-called portfolio effect, that is,
how HR practices support and improve one another. However, it is important to remember that there can
be countless combinations of practices that will result in identical business outcomes. This contributes to
the concept of equifinality, in which identical outcomes can be achieved by a number of different
systems of HR practices.
Support for the universalistic approach to strategic HRM is mixed as there are notable differences
across studies as to what constitutes a best HR practice. Most studies (e.g. Bamberger and Meshoulam,
2000; Christensen Hughes 2002; Boxall and Purcell 2003) focus on three mechanisms by which universal
HR practices impact on business performance: (1) the human capital base or collection of human
resources (skills, knowledge, and potential), that the organisation has to work with the organisations
recruitment, selection, training and development processes directly affect the quality of this base; (2)
motivation, which is affected by a variety of HR processes including recognition, reward, and work
systems; and (3) opportunity to contribute, which is affected by job design, and involvement/
empowerment strategies. In addition, the best practices approach generally refers to the resource-based
theory of firm and competitive advantage, which focuses on the role internal resources such as employees
play in developing and maintaining a firms competitive capabilities (Wright et al.,1994; Youndtet
al.,1996). For a resource to be a source of competitive advantage it must be rare, valuable, inimitable and
non-substitutable. Therefore, HR practices of the organisation can lead to competitive advantage through
The contingency or HRM as strategic integration model argues that an organisations set of
HRM policies and practices will be effective if it is consistent with other organisational strategies.
External fit is then what matters (Fombrumet al., 1984; Golden and Ramanujam, 1985; Schuler and
Jackson, 1987; Lengnick-Hall and Lengnick-Hall, 1988; Guest, 1997). As discussed above, in this regard
specific HRM policies and practices link with various types of generic business strategies. For example,
the work of Schuler and Jackson (1987), mentioned above, suggests that the range of HRM policies and
practices an organisation should adopt depend on the competitive product strategies it is following.
Considering that external fit is the key concept of contingency models, the contingency approach refers
firstly to the theory of the organisational strategy and then to the individual HR practices that interact with
contingency HRM strategy is then associated with optimisedorganisational performance, where the
organisation that adopts HR practices appropriate for its strategy will be higher (for more details see
The configurational or HRM as bundles model argues that to claim a strategys success turns
on combining internal and external fit. This approach makes use of the so-called bundles of HR
depending on corresponding organisational contexts, where the key is to determine which are the most
effective in terms of leading to higher business performance (see Guest and Hoque, 1994; MacDuffie,
1995; Delery and Doty, 1996; Huselid and Becker, 1996; Katou and Budhwar, 2006).
Considering that both the internal and external fits are the key concepts of configurational
models, the configurational approach refers firstly to the theory of the organisational strategy and then to
the systems of HR practices that are consistent with organisational strategy in order to result in higher
organisational performance. As indicated above, there are a number of strategies an organisation may
choose to follow, such as Miles and Snows (1984) strategic typology that identifies the four ideal
With respect to the configurations of HR practices, scholars (such as Kerr and Slocum, 1987;
Osterman, 1987; Sonnenfeld and Peiperl, 1988; Delery and Doty, 1996) have developed theoretically
driven employment systems. Specifically, Delery and Doty (1996) propose the following two ideal type
employment systems: the market type system, which is characterised by hiring from outside an
organisation, and the internal system, which is characterized by the existence of an internal market.
Because organisations adopting a defending strategy concentrate on efficiency in current products and
markets, the internal system is more appropriate for this type of strategy. On the other hand, organisations
pursuing a prospectors strategy are constantly changing, and the market system is more appropriate for
this type of strategy. A possible third type of configurational strategy can be the analyser, at the midpoint
between the prospector and the defender. In summary, according to this approach, if consistency within
the configuration of HR practices and between the HR practices and strategy is achieved, then the
With respect to these three models, there is no clear picture of which of these three key broad
areas is the predominant one. It is worth repeating the words of Wood (1999: 409):
Objectives of the study
As the central agency responsible for public service human resource management policies, the
Public Service Department (PSD) was selected as the lead agency to spearhead the
implementation of the HRIS. Officers from process owner divisions comprising the
Remuneration Division, Pension Division (now known as the Post-Service Division), Services
Division, Organisation Development Division, Training Division (now known as the Human
Corporate Division, and Psychological Services Division were directly involved in verifying the
human resource processes, which were developed for the HRIS. They were also involved in the
testing stage of the application to ensure compliance with prevailing policies. During the
implementation stage, they verified the improvements on human resource policies according to
To enhance human resource management, the PSD has utilised the potential of information
application. Accordingly, in line with its slogan, Public Service leader, the PSD was entrusted
The HRIS, which encompasses the whole of the human resource management process from
appointment to retirement, has enhanced the quality of the public sector. The system is not
merely a human resource application; more importantly, it is a new approach in human resource
management that is more comprehensive and integrated to overcome the many challenges of
RESEARCH
RESEARCH.
The marketing research process that will be adopted in the present study will consist of the
following stages
RESEARCH DESIGN
framework for doing the study and collecting the data. Designing a research
plan requires decisions all the data sources, research approaches, Research
2. Descriptive studie
Exploratory Research
The major purposes of exploratory studies are the identification of problems, the more precise
Formulation of problems and the formulations of new alternative courses of action. The design of
DESCRIPTIVE STUDIES
specific research Questions. The investigator already knows a substantial amount about the
research problem. Perhaps as a Result of an exploratory study, before the project is initiated.
DATA COLLECTION
SECONDARY DATA When an investigator uses the data that has been collected by others is
called secondary data. The secondary data could be collected from journals, reports and various
publications. The advantages of secondary data can be economical, both in the term of money
1. Official Publications.
NOTE In this research report I have used the Secondary data from the different source of
secondary data.
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