Human Resource Information System: A Boon to Organisations - Literature review Example

Human Resource Information System- A boon to Organisations Abstract HR Information Software (HRIS) is created for coordinating and streamlining the human resources (HR) department of a company. Getting the right software helps an organisation analyze and be aware of the company’s needs. The HRIS system enables the tracking of employee’s attendance, benefits and histories.  HRIS helps management and tracking of all dependent and employees information from the time an employee is hired. It lets instantaneous screening of an employee’s file like compensation, skills, health, safety, personal, job, education, benefit, and other user distinct information. Besides, employees’ history like hire, rehire, seniority, termination dates and reasons, job and position details, benefit calculation dates, date perceptive pay history, pay steps, certifications, skills inventory, training, discipline, education and previous employment information are also possible.  Information on benefits includes the administration and management of company benefits for former and current employees, eligibility, premiums, and commencement and end dates of the same. All employee, company and dependent costs linked with it are also tracked down. Long and short term plans like provincial, disability and extended medical, etc are managed easily by this system. Besides, the method of accruing, tracking, and calculating employee’s absences, attendance and entitlements are run and updated via this. An ingenious HRIS is a computer-based powerful application that enables to update and enter all kinds of employee-related information easily and quickly. It permits easy generation and access of the HRM wealth information. The production of customized and standard timely and essential reports like the external and internal compliance reports are automated by this system. HRIS help the HR function it responsibility effectively and efficiently. Aside from that, the system should also be user-friendly, functional, flexible, cost efficient allowing it to improve quality reporting, integration with other existing arrangements and other privacy protection synchronized by the law (Phillips & Kruger, 2006). Table of Contents Table of Contents 3 Chapter 1 Introduction One of the major responsibilities of a companies HR department is resource planning, selection and recruitment of the right recruits. These prime activities are the initial steps in hiring. In selecting the correct staffs, companies consider several factors; but, technical skills and positive work attitudes are the most proffered qualities from staffs in general (Anderson, Barret et al., 2005)..  The preliminary operations of a company consist of informal selection and recruitment processes. But, as an organisation becomes more established, the need for an ingrained human resource practice becomes a must. In addition, usage of different selection methods and more intent qualifications partner the development of hiring decisions and resource planning; and these have been observed often in larger organizations (Appelbaum, & Fewster, 2003). Chapter 2 HRM Model In supervision of people, an the HRM, should be capable to learn and think more methodically and tactically in using the company’s most precious asset and the company’s immense resource which is the people.  Human resource management should be capable to expand a prosperous organisational culture and a stronger company by excellent management of people, providing their requirements and the stuff that they justify in order to motivate them and m to seek extra improvement and career growth for their sake as well as for the sake of the organisation. Therefore, it is very vital for HRM model to appraise the stipulation of workforce needs (Kotey & Slade, 2005).   Employees can attain their personal objectives if suitable HRM practices are in use as the model covers requirements of an employee like benefits, motivation, rewards, appraisal, trainings, etc.  In fact, the organisation’s goal and the staffs personal goal is attain if there is appropriate execution of this model.  With reference to the ever-changing surroundings forces, the conglomerate should be attentive of all these changes and put together long term resolutions to the problems. The company should look forward to correctly gauge the maybe effect of ever-changing surrounding forces in order to stay away from demission of business. It appears that, alterations in government regulations can also affect HRM models such attributes of recruits (e.g. age, gender, etc.) Executives internationally are apprehensive with the efficiency and value of the human resource task. Whether an organisation is reshuffling the HR processes, re-defining the affiliation between the line and human resources, or defining new proficiencies for HR professionals, one thing is completely clear. The responsibility of the human resource task is radically changing. Such changes are subjected to many significant issues heart-rending a firm. This stimulates the emergence of HR as an all-purpose management responsibility. The 8 critical management concerns that affect modern organisations include: rising international competition; growing company complexity; organisational slim down; larger government interests in HR management; a well-educated labour force; changing worker values; more apprehension with balancing life and career satisfaction; and employees diversity. Because of antagonism, organisations need more skilful workforce and bigger employee commitment (Guzman & Stanton, 2009). For instance is the shortage of trained nurses in Western nations. Due to this problem, HR practitioners in these countries are required to subcontract HR from Asian countries, which is further increase with numerous Human Resources directed acts approved by governments in various countries. Several instances are in the US, such as the Family and Medical Leave Act and the American with Disabilities Act. Other issues such as participation, training, career balance and various workforces (e.g. increasing female in labour force, cross-cultural) also link the bandwagon of taking Human Resources to the path of change. Chapter 3 Analysing the success of large organizations using HRIS 3.1 Introduction  Cisco Systems and Dell Computer are two large companies operating in the electronics and computer industry. To ensure success, the respective managements of these companies ensure that proper selection and recruitment procedures are used. For instance Dell Computer utilized the online recruitment services procedure. Lately, the company has joined hand with Monster.com, a leader in global careers site. This site allows the global access to the company’s profile and provides job opportunities. Besides it helps the company’s HR professionals to gain access to applicants online (Martinez-Sanchez, Perez-Perez et al. 2007). 3.2 Benefit of the online application to Dell The content and the global network of the site are also displayed in various languages, hence permitting access to every prospective employee internationally. Paul McKinnon, the senior VP for Human Resources of Dell, commented that using online services is an exclusive technique of recruitment and helps in attaining to Dell’s goal of world-class talents (Martinez-Sanchez, Perez-Perez et al. 2007).  This method is really good when compared to conservative recruitment processes as Dell is an international company; and requires hiring people in order to manage the international operations. Online recruitment allows the company easy and fast access to foreign applicant in an inexpensive manner. As it a large organization, submission of resumes online also helps the human resource staff of the company to store and organize applications easily with an information system’s help. 3.2.2 Benefit to applicants Besides, this is an advantageous way for the applicants as they can easily send the applications with a higher chance that the resume or application will reach the company in comparison to transporting it by post. In fact a regular check on the resume database, the applicants can quickly get the results for screening. The major advantage is that, this is a less tedious process and more cost effective for the applicants compared to submission of resumes or application personally to the HR department of the company.  3.3 Benefit of the online application to Cisco Systems Cisco Systems also uses the similar online feature. But instead of just posting employment advertisements on newspapers, it has its own online job submission site. Just like Dell, this online recruitment feature is advantageous as Cisco Systems is able to post several job vacancies and helpful job details with no added cost. Beside, its own website it can also post employment opportunities in cyberspace. This help the company provide job for applicants internationally and also gain other important information like number of visitors accessing the site (Nirjar & Tylecote, 2005). 3.3.1 Resource Utilisation The method of Referral may help Cisco recruit the best people, but it’s quite expensive as the company pays the recruiting team and thousands of employees refer others with potential adding to hiring costs. Furthermore, this program can be measured as scheming since the employees may not know that they are doing this so they can work in favor of the company. While Cisco may offer better compensation and job offers, a less complex and extra honest recruitment practice can make the attainment of talented experts more rewarding. Due to overflow of resume for recruitment process the line managers face the most difficult task in the department. Cisco alternatively tried to solve this matter by recruiting internal head hunters or professionals. These are skilled and trained individuals to identify capable applicants for manager positions. The company articulated that paying the head hunters is an added cost, quicker hiring procedure is more beneficial. Quicker hiring procedure also saves the company important resources as new recruits can begin and contribute instantly (Kaula, 2006). 3.3.2 Resources Utilisation for selection process 3.3.2.1 Interview  Interview is the selection process used by Dell and Cisco. Dell employs gyratory recruiters. If the company is looking for people to fill in particular IT jobs, it congregates recruiters from the IT department. According to the company these will input better perception to this process as they are familiar with the exact demands for the jobs offered. Once the employing process starts, the recruiters spend around 3 to 4 months in the HR department to help the interviews; once the candidates had been selected, these internal recruiters would return to their positions. CEO of Cisco, John Chambers, affirmed that in the company’s interview, interviewer check fort two essential points: the people and the performance skills. The skills, attributes and knowledge are the heart of the performance part. Questions in this portion may spot the person’s capability to lead, decide and control. The people skills portion in contrast focuses on questions which will gauge the person’s values, style and motivations. Here, the interviewer seeks to match the candidate’s work or personality approach with the kind of the job he/she has applied for. This is a vital aspect as this will decide the applicant’s capability to interrelate with colleagues. Chambers also noted that this interview method uses behavioral and situational -based questions for selection of applicants. Situational questions assess the applicants’ capabilities, knowledge and judgments. Alternatively, behavioral-based questions concentrate more on evaluation of the candidates’ values and attitude (Smith, 2006).  The interview is possibly a common selection technique used by many organizations. It’s an effective selection practice as it helps to recognize the communication capabilities of the candidate that may be useful for the job. Besides it extremely flexible assortment tools as the questions can be modify or add by the interviewer to gather more information about the candidate. Expression of the candidate reflects the way he/she would deal with others. 3.3.2.2 Disadvantages of Interviews Interview process has its own disadvantages, for example, as the outcome of the interview is based on personal evaluation of the interviewer, it tends to be too subjective (Suri Babu, Mohana Rao et al. 2008).  Furthermore, the interviewers lean to develop first impression about the interviewee, and the rest of time is spent on certifying these impressions. Additionally, because of this subjective nature, typecasts can seriously affect the probability of the interviewees to pass the interview. While, it’s not mentioned if interview preconceptions are seen in the selection procedure of the two organizations mentioned, it is feasible for these annotations to occur as these companies depend only on this selection technique. The major error of both these companies in the selection procedure is usage of only a single method. Hence, it’s important that the organisation utilises other selection processes to compensate the disadvantages of the interview techniques.   3.4 Usage of HRIS in Selection process Many employees are chosen by one- on- one interview; but, along with this method, other HRIS techniques like panel interviews and written examinations are also used for selection process. The use of various selection techniques helps prevent interviewee selection errors (Phillips & Kruger, 2006). The utilisation of application tests in selection process is possibly the most effectual method that can be used in blend with the interview technique. This is due to the uniqueness of this technique in direct comparison to the interview process. Example of such tests would be the work sample tests; this kind of selection technique, the candidates executes assignments that are analogous to the real job the have applied for. A good attribute of this method is the reliability factor. Through this technique, assessors can with no trouble determine if the candidate is really skillful or not, also it is hard to fake ones’ work capability (Tafti, Mithas et al. 2007). This is in direct comparison to interview outcome where the validity and truthfulness of the candidates’ responses is hard to verify. Cognitive capability tests or the pencil and paper assessment that’s made of general aptitude and intelligence tests questions can be used too.  In this method, the candidates are weathered on their verbal and numerical abilities; same as the interview process, this analysis is extremely flexible since analysis questions can be tailored according to the complexity of the job posting. The reliability feature of this analysis makes it special from the interview method. Distinctively, the outcome of the test is acquired through exact scores. These scores symbolize a definite value; hence, biases can be prohibited. Besides from being objective, attaining the outcome is also very simple as computer scanning tools can be used. This method is useful as it is effectual, reliable and fast (Wiseman, & Gomez-Mejia, 1998).  Besides from this analysis, the psychological or behavior backdrop of the candidate may also be evaluated through assessment. Through personality or psychology tests, HR department can effortlessly determine the attitude or behavior of the candidate based on exact ratings. Overall, the use of analysis is helpful because of its high reliability. Beside usage of form helping makes the selection procedure more objective, the evaluators will be able to choose fast with these analysis scores. Understanding of the submission outcome too becomes easier with the usage of submission analysis. Due to the variety and flexibility of the analysis, companies can effortlessly choose which method is more suitable for their service needs. In comparison, it is clear that it’s best for corporations to utilise a diversity of selection methods in order to guarantee that the staffs they are employing are really proper for the post and the company’s principles. 3.5 Conclusion  This selection exercise is possibly the most suitable for example when a HR team member is required for a grocery string’s HR department. In deciding the accurate selection techniques to use is significant that the errands of the required employee are clearly acknowledged. As the required team associates would be asked to carry out trainings for trainee and junior managers, it is imperative that the candidate is efficient and willing to dealing with people. Furthermore, the interviewee should have high level of written and oral expertise; in particular, the candidate must be competent of doing high-quality seminar presentations. With these essential skills, both intellectual and personal qualities must be assessed.  For the personal feature, a panel interview might be suitable. This will assist in determining if the candidate has enough confidence in conversing matters in front of spectators. Work sample analysis may also be proper; this can be prepared by letting the candidate execute teaching or training demo to spectators. The candidate would be given the resources he/she requests; time would be provided in order to prepare a 30 minute conversation about a meticulous topic. Here, the skill and creativity of the candidate to perform actual training program can be easily assessed (Kostrzebski, 2005). For this kind of analysis, a checklist of essential features of the demonstration should be made for grading reasons. Chapter 4 Planning of Resources 4.1 Introduction Many organisations face numerous problems with reference to turnover rate and employees’ absences. This case evidently implies that these troubles happen due to company’s inadequate focus on evaluating its staffs’ performance and providing them incentives or rewards. Performance evaluation or assessment of the staffs’ is an essential driver for retaining and motivating employees. By means of assessing the staffs’ performance, the organization is able to evaluate their staffs’ independently on basis of different aspects such as output, daily work, work attitudes, quality of work and overall performance. Hence, this would help the company to identify their staffs’ strengths and weaknesses. The workforce alternatively would be competent to distinguish their area of strength and weakness and thus improve accordingly (McLean-Conner, 2005). Included in this facet is the condition of different types of recognition for deserving and hard working employees. Through performance evaluation, the company encourages its staff to work more proficiently.  4.2 Theoretical frameworks The provision of incentives or rewards to the staff is also an essential factor for running human resource. Rewards can come in various forms. In most cases, rewards may be set as monetary incentives such as bonuses or as non-monetary incentive such as public recognition, certificates, dinner and other analogous rewards that have no monetary value. This perception is in fact based on 2 theoretical frameworks such as the agency and expectancy theory. The agency theory is stands on the perception that rewards or incentives are a helpful device for aligning the targets of the organization according to that of the stockholders. The expectancy theory alternatively affirms that the provision of incentives or rewards dole out as an influential driver in order to inspire others. From these hypothetical perceptions, reward or incentives is viewed as a tool of motivation that in turn optimizes performance of the employees’. (Gomez-Mejia & Wiseman, 1997). 4.3 Different Case Studies and analysis 4.3.1 Absence In the case of Cisco Systems, the company is going through a high rate of absences amongst the staff in units 1 and 2 particularly during the weekends. Additionally, the company also sees that staffs in these units are hard to retain. In order to solve these tribulations, a performance review procedure along with an incentive or reward system should be developed for the staff of these units. In order to prevent regular absences for regular work days and weekends, the company’s HR department can utilize the HRIS to develop a performance evaluation checklist that comprises of the staffs’ attendance. Including the staffs’ attendance to performance evaluation might be used as to gauge the employee’s level of perseverance, interest and dependability. The company can also offer small incentives plan every month for employees who report to work daily. This will persuade others to cease from frequent absences. The outcome of the performance assessment must not only be used for monthly incentives but also for future career growth of the employees (Jones and Hoell 2005). The second scenario shows that units 1 and 2 work for 24X7 although work shifts are working, staffs in these units do not get even a day off. This may be another reason for recurrent absences. In such cases, the company can uses HRIS to reconstruct the shifting schedules in a way that each staff get at least one day to rest; taking into consideration that most of the staff in these units comprises of women, they should be given ample time for themselves in order to recover strength and also be able spend time with their loved ones. For regular staff, the corporation may consider offering work offs and other analogous benefits.  With this system, HR department can also build up due sanctions for regular absences. For example, staffs should be advised to inform their direct superior or the company in order to inform the HR department that they are not able to report to work. An absence management system can be used to keep the record of absences; incase of frequent absences of the employee, the department should issue a verbal warning (Mendenhall, 2006). A 2nd warning treated as written warning can be given if the event is repeated; though, the company also has the power to terminate the worker due to recurrent absenteeism incase of the 3rd instance. 4.3.2 Turnover Rate  In order to deal with the quandary on high turnover rates, the company should launch a clear vocation ladder for the employees. A clear career graph will motivate the employees to perform better and thus the company will progress. Logically, with employees’ progress in company position, related compensation also increases hence this too should be planned. As staffs are expectant to achieve their respective career goals, there are high chances of their retention in the company. The staffs’ progress in units 1 and 2 would be based on the outcome of their performance at work and in employee evaluation. The major objective of this method is to reward the staffs for their good work and also to maintain the company’s best staffs. This can be achieved by using HR Model. According to Zhu and Dowling promotion is identical to career success where staffs are given superior tasks or place on senior authority levels. Promotion is measured as an essential part of HR management because it persuades employees to execute their work with quality output (Zhu & Dowling, 1994). This also signifies an important part of the internal selection structure of an organisation. The executive members’ sentimental reactions towards their work and the company are influenced drastically based on their promotional prospects. Most prominently, the turnover process is condensed through promotion. These literatures obviously stress that by recognizing the hard work of the workforce through the conveyance of performance appraisal and stipulation of due rewards, workforce are more expected to stay in the organisation and be involved in their jobs.  High turnover rate is observed in the organisation’s 3rd unit, particularly amongst the engineers. The prerequisite of yearly salaries that is lower than the national standards are the clear grounds of these quandaries. Thus, to remedy this quandary, it is imperative that the organisation reconstruct the remuneration levels of the engineers. In order to sustain their service, the company must apply a related strategy that is applied for units 1 and 2. Engineers should also be well-versed of a exact career ladder that will provide a guide for their career growth.  If the staffs the 3rd unit have a clear career direction, they will realize the intention of their hard work and develop into more determined to accomplish the top position of their career graphs. To maintain this career plan, these engineers should also be subjected to expected performance assessment; the outcome of this evaluation will dole out the core basis for their advancement. As the engineers grow in the organisation, they would unsurprisingly be given more demanding and vital duties; this in turn would help and make them feel appreciated and important, inspiring them to stick to the company.  The staff positions are given the precise salary with different cafeteria reimbursement. The staffs of this unit conversely, fear that since there is no cash benefits, line operational may probably have high earnings than the performing workers jobs. To deal with this problem, the organisation may think about cash incentives/rewards instead of cafeteria reimbursement (Jones & Hoell, 2005). With this approach, the performance of the employees’ posts would need evaluation on a specific timeframe. The merit aspect for providing cash rewards/incentives would then depend on the results of each staff’s performance evaluation. Through these reward/incentives schemes and performance assessment suggestions, Cisco System would definitely be capable of making their recruits more productive, motivated, determined and disciplined.  Chapter 5 Conclusion To conclude, the HRM model future mainly depends on the conclusion of studies and the alteration brought by expansion and clarification in management. Older tasks may be substituted by new ones, or enhanced by superior methods. Issues to trigger amendment comprise of increasing company complexity; increasing international competition; organisational rationalization larger government interest in HRM model; a well-educated workforce; changing worker values; more issues with balancing life and career satisfaction; and labour force diversity (Roberts, 2009). These alterations can change HRM model in training, company policies, hiring and satisfaction and connection with top management. Conversely, it may not be easy to classify and itemise specific concerns from those tasks because of their variety in nature. In contrast, HR executives are apprehensive with the efficiency and value of the human resource (HR) task. Whether a company is reorganizing HR processes, re-defining the connection between the line and human resources, or defining new proficiencies for HR professionals, one fact is completely clear. The role of the human resource function is radically changing. Nevertheless, the general finale is that the future of HRM is filled with constant improvement and changes, or could be devolution or decentralisation for some who take the amendment negatively. It is still vague if the functions of HR practitioners will promote to a much advanced (Kostrzebski, 2005) ground. Conversely, it is convinced that HRM model would continue to lend a hand to the top and line management functions by making sure that staffs are well synchronized, satisfied, encouraged, and useful. Reference: 1. Anderson, J. E., K. S. Barrett, et al. (2005). "Informing the HR Hiring Decision of IT Personnel: The HR Professional's View of IT Certification, Education, & Experience." Informing Science 8: 281-302. 2. Appelbaum, S. and B. Fewster (2003). "Global aviation human resource management: contemporary compensation and benefits practices." Management Research News 26(7): 59-71. 3. Guzman, I. R. and J. M. Stanton (2009). 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