Harvard HRM Activities And The Role Of Information Systems

HRM Activities and the Role of HRIS 1

HRM Activities and the Role of Information Systems

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HRM Activities and the Role of HRIS 2

HRM Activities and the Role of Information Systems

The evolution of technology has increased the use of human resource information

systems in organizations. The small, medium and large companies are using HR information

systems to meet various needs (Kavanagh and Johnson 2015). However, what sets the well-

performing firms from the rest is how they utilize technology in the delivery of human resource

functions. Undoubtedly, HR information systems have made it faster and easier for managers to

collect information and to effectively communicate with employees. Additionally, the use of

information systems has tremendously reduced the administrative work allowing the HR

department to focus on more important functions (Bondarouk and Olivas-Lujan 2014). Human

resource information systems streamline and simplify procedures within the HR department.

This allows managers to securely and quickly organize human capital data in an easy-to-use

software. Empirically, organizations that effectively use HRIS in managing their human resource

functions derive more benefits than those that don’t. This paper explores the use of human

resource information systems in the management of key HR functions including recruitment,

compensation management, and training.

Recruitment

Recruitment is one of the fundamental HR functions which allow organizations to find

and hire new workers. The use of human resource information systems has made the recruitment

and selection process extremely easier for organizations. The use of HRIS has enabled

organizations to receive online applications from potential candidates. With HRIS, prospective

candidates can send online applications, which saves them the cost of printing. Moreover, the use

of HRIS makes the filtering of applications easier and enhances the overall hiring process.

HRM Activities and the Role of HRIS 3

Human resource managers can also set the HRIS only to accept applications from suitably

qualified candidates. Using the HRIS for recruitment attracts more qualified candidates who are

well versed in technology (Bondarouk and Olivas-Lujan 2014). With HRIS, organizations can

track recruitment expenditure allowing the planning of budgets with accuracy. After receiving

online applications, the human resource personnel can review them simultaneously. This speeds

up the recruitment process as the HR personnel can even communicate remotely to iron out any

concerns before the physical interviews are scheduled.

More importantly, using HRIS for recruitment allows the HR department to easily

convert the information received from the applicants into employee files. This is an excellent

way to avoid errors that result from the creation of duplicate information. It also minimizes the

time that the newly recruited employee spends before becoming productive. Moreover,

organizations have in the recent past used the HRIS in accepting applications for promotion from

the existing employees (Bondarouk and Olivas-Lujan 2014). This method helps in keeping the

recruitment process more confidential compared to other methods of application for the

employees who wish to hide their ambitions from their colleagues. Since the existing employees

are familiar with the information system, the recruitment process becomes highly specialized. In

brief, the use of human resource information systems saves organizations millions of money and

the HR personnel a lot of time allowing them to concentrate on other meaningful obligations.

Compensation Management

Compensation management is a critical HR function that goes beyond paying employees

for the work done. It plays a crucial role in retaining talented employees, maintaining employee

satisfaction, and encouraging employees to work hard. Human resource information systems

HRM Activities and the Role of HRIS 4

allow the HR personnel to create profiles for employees based on job title, seniority, and merit.

This allows HR managers to view compensation for all the employees at a glance. The

centralization of employees’ compensation helps the HR department in sporting any

discrepancies as well as possible opportunities easily (Kavanagh and Johnson 2015). HRIS is

designed with powerful performance management tools that allow managers to track

performance and behavioral information for all employees. This information is included in the

employee’s files and used during performance review and assessment. More importantly, easy

access to this information allow HR managers to make quick decisions concerning merit or

promotion. With HRIS, adjusting compensation for employees whose roles or salaries have

changed is easy as it only requires few keyboard touches to effect the changes.

HRIS has improved transparency in many organizations in the recent past as they

effectively show base salary standards in the most open and fair manner to all employees.

Sharing such information and connecting it to training and development opportunities allow

employees to assess their current position and their potential within the organization. Moreover,

by making the compensation process more transparent, HRIS allow employees to figure out their

promotion opportunities (Kavanagh and Johnson 2015). Most HRIS come with alerts for spotting

errors and discrepancies in compensation management. For instance, if an employee is wrongly

placed in a higher grade, the alerts in the system helps in mitigating the error before the

employee is given a wrong compensation. Similarly, the alerts help the HR personnel from

accidentally paying employees fewer salaries. The system alerts can also be used in notifying HR

personnel of discriminatory situations. This allows for reviewing and correction of such

situations before they become legal issues.

HRM Activities and the Role of HRIS 5

Training and Development

Although HRIS cannot provide training directly to the employees, they are valuable tools

for offering training newly recruited employees and developing the already existing ones. HRIS

is typically used for setting goals and tracking the entire training process (Bondarouk and Olivas-

Lujan 2014). Organizations use the HRIS to link employees to online learning materials and

portals with customized learning materials that address their training needs. HR managers

regularly use HRIS in setting clear training goals for the employees which make it easy for them

to accomplish those objectives. Some HRIS can recall the time and cross-reference training that

was conducted and also include critical notes regarding a particular job performance. With

HRIS, it is also possible to view manager’s comments and other crucial information such as

customer complaints or compliments, sales information, and other details that can help in doing a

comparison with training accomplishments.

Also peculiar to HRIS, is the ability to enhance succession planning. This involves

preparing employees to take up a position higher than the one they occupied before. HIRS helps

in maintaining the relevant information about the employee such as the level of education, skills,

and training needs in a centralized place where it is possible to view at a glance including what

position the employee qualify for in the future (Bondarouk and Olivas-Lujan 2014). With HRIS,

it also becomes possible to know what skills a particular employee needs to acquire to qualify for

another position. Employees’ mobile access to training encourages them to take responsibility

for their future while at the same time enabling them to account for their growth and

advancement. Embracing a culture of autonomy helps the HR managers as they do not need to

follow up employees to go for training. With HRIS, HR managers only need is to provide the

necessary incentives based on employees’ reported results.

HRM Activities and the Role of HRIS 6

Conclusion

In conclusion, Human Resource Information Systems have drastically transformed

organizations since they were introduced a few decades ago. Modern businesses can now handle

complex and repetitive human resource functions with more efficiency and at relatively low cost.

In particular, HRIS have impacted recruitment, compensation management, training, and

development in dramatic ways. With HRIS, organizations have changed the manner in which

recruitment, compensation, and training tasks are performed in attempts to align with the

evolution of technology and the increasing employee needs. By shifting to HRIS, organizations

can now maintain up-to-date and accurate information concerning human resource capital. As a

result, HR managers are in a better position to make informed decisions and to prepare well for

future development.

HRM Activities and the Role of HRIS 7

References

Bondarouk, T., and Olivas-Lujan, M. R. (2014). Human resource management, social

Innovation and technology. Bingley, U.K: Emerald.

Kavanagh, M. J., Thite, M., and Johnson, R. D. (2015). Human resource information systems:

Basics, applications, and future directions. Los Angeles: SAGE

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