HRIS: The Strategic Value

Mr. Sampath Jayasundara

BSc. (Col.), PG Dip.in Comp. Sc. (Col.), MBA (Sri J.)

Director/General Manager
hSenid Business Solutions (Pvt) Ltd.

HRIS

Human Resource Information System

HRIS is a set of inter related components

working together to collect,
Process, store and distribute information
to support HR decision making,
coordination and control in an
organization.

Importance of HRIS
Strategy
Competitiveness
People
HRM
HRIS - a part of strategic HR management

Importance of HRM
Strategy

HRIS

Competitiveness

ORGANISATION
People - the biggest
competitive advantage

HRIS - Component of HRM

HRM system
HR staff
HRM
knowledge
HRIS

Closer look
HR staff
HRM theory / knowledge
Org Chart
Development
Retaining
Leave
Transfer
Termination
Performance Promotion
Selection
Benefits
Planning
Staffing
Training
Recruitment
HRIS

HRIS a strategic partner

Human Resource Information Systems
(HRIS)
Corporate Intranets and Extranets
Virtual offices and remote working
Internet
Emergence of IT industry
SaaS (Software as a Service)

Decision-making process

Strategic
Functional
Operational

HRIS Unplugged
Decision making process

S Strategic:
Functional:
F
Operational:
O

Time allocation

strategic decision making 2%

functional decision making .23%

Operational day-to day tasks 75%

Ideally
Decision making processes with HRIS

S Strategic:

Time re - allocation

strategic decision making 2%

F Functional:
O

functional decision making .23%

Operational:
Operational day-to day tasks 75%

HRIS Plugged
Strategic:
create a comprehensive Learning Organization that
enhances the knowledge capital of all the employees

Functional:
Personal development plans for employees, Individual training plans
according to employees training needs, Performance evaluation
meetings, etc. +

HRIS

Operational:
maintaining data in the system + using

HRIS

Scenario (1) - with(out) HRIS

360 Performance evaluation
without HRIS
-

Prepare evaluation forms

Print and copy them
Distribute forms to employees
Employees fill in evaluation forms
(in 2 copies for archive purposes)
- Evaluation forms personally submitted to HR Manager
- Re-write results to the computer or file them
- Manual processing of data gathered
- Prepare result sheets
- Print, copy and distribute them to employees
- File all the forms for future use

Scenario (1) - with(out) HRIS

Define
evaluation form

with HRIS

360 Performance evaluation

Appraisal
form

- Define evaluation
forms
- Online evaluation
entry
- One-click access to
results
- History info captured
- Evaluation reports
generated by the
system
- Strategic Decision
making process can
take place

Scenario (2) - with(out) HRIS

Leave application administration
without HRIS
- Prepare leave application forms
- Print and copy them
- Manually maintain employee attendance information
daily
- Maintain company calendar
- Employees applying for leave fills in an application
form
- Application form personally submitted to Supervisor
- Manual check for employees leave status history
- Supervisors approval or rejection
- Application form personally submitted to HR manager
- Manual update of employees personal leave
information file

Scenario (2) - with(out) HRIS

Leave
balance

Leave application administration

- Define company
with HRIS
Leave
application
form

specific leave admin

processes (initially)
Online leave
application form
Online leave
Approval/Rejection
History info captured
Leave balance reports
generated by the
system
Saves strategic
resources

Scenario (3)

Intranet

new dimension of HRM

with HRIS
View/check/modify - online:
- personal information
- census information
- qualifications
- leave application
- leave balance
- leave cancellation
- leave approval/rejection
- salary information
- company calendar
- appraisal results
- online appraisal process

Employee self-service

HRIS Implementation
HRIS cost-benefit value analysis
Getting Management support for HRIS
Limitations of computerization of HRIS

HRIS cost-benefit value

analysis
Cost factors of HRIS
System development cost/Software license
cost
Time investment for system implementation
Cost of data migration
System implementation consultancy services
Hardware cost
System maintenance cost

BENEFITS
Saving time
Saving costs
Work re-allocation

BENEFITS

Saving time

[efficiency]

Easy data maintenance

Administrative processes automated
Employee self-service (kiosk)
Adequate information base that leads to
timely and just decision making
Responding faster to employee inquiries to
enhance efficiency and productivity

BENEFITS

Saving costs

[efficiency]2

Less time spent on tasks = less money

Minimum paperwork
Timely and accurate decision making
includes less cost

HRIS: The Strategic value

Efficiency cost & time
Effectiveness orientation on the most
valuable asset of the organization PEOPLE

=> Adding the strategic value to the

organization

HRIS: the way to gain

competitive advantage
PEOPLE, most valuable asset competitive
advantage

HRIS manages PEOPLE efficiently and

effectively

HRIS gaining competitive advantage

BENEFITS

Work re-allocation

[effectiveness]

Helping the employees perform better

through effective career planning and
performance management
Integrating the human resource function with
other business functions in the enterprise, to
serve personnel better

Getting Management
support for HRIS

Understand their expectations

Getting management involvement
Achievement of tangible benefits
System usage across organization
Target for short wins and celebrate
Simplified and unified processes
Introduction of best practices through
HRIS

Limitations of
computerization of HRIS

Budget constraints
Knowledge gaps
Time investment for implementation
Synchronization of manual and
automated processes
Technology limitations
Infrastructure facilities
Data maintenance/regular updates

Changing HR role with HRIS

HR as a Business Function
HR as a Business Partner
HR as a Strategic Partner

Strategic value

HR as a Business
Function
At the very least, when an HR function is
available in an organization, it is
responsible for managing employee data,
takes care of payroll, time and attendance
and the setting of company policies.
The role is largely that of Personnel
Administration focused on Compliance
both internal & external, and on
Management of employee records.

HR as a Business Partner
As a Business Partner, the role of HR is to meet the existing
business needs of the organization so that the organization
could grow at a measurable rate.
At this stage of evolution, the focus of the HR shifts to
competency based Recruitment, Total Compensation, Employee
Development, Communication and Organization Design.
To facilitate the above functionality, HR uses tools such as
Applicant Tracking software for recruitment, Employee Portals
for communication, Self Services for employees empowerment,
Learning Management Systems for training & development and
an Employee Database for capturing employee skills &
competency profiles. Organizations even have well defined Job
Descriptions with details of qualifications, experience, special
skills required for the job and job roles & deliverables for each
job position.

HR as a Strategic Partner
Organizations that view their HR as a strategic business
partner believe in full maturity of their HR function. Such
organizations are focused on attaining leadership positions
rather than an year-on-year growth. Bottom-line and top-line
growth are expected to be achieved automatically.
At this level, HR becomes responsible for identifying core
competencies necessary for their organization to attain
leadership position. Further HR facilitates in
Aligning employees to a common sets of objectives derived from the
mission and value statements,
Mitigation of risk by devising appropriate Succession Planning Strategies,
Identification of top-performers and non-performers,
Continuous measurement of the effectiveness of leadership and employee
satisfaction,
Increasing employee engagement through appropriate measures,
Aligning compensation to performance,
Adjustment of recruitment and training to competency gaps,
and specifying well-defined Job Descriptions which map to the organization
structure . These become the basis of Recruitment, Goal Setting, Training,
Performance Evaluation and Career Development.

HRIS: Key message

By automating Human Resource practices,
HRIS saves time and money, effectively reallocates work processes and thus provides
competitive advantage and adds strategic
value to the organization.

THANK YOU