In a planetary competitory concern environment, where merchandise lifecycles have shortened, concerns need directors and employees that are extremely capable, multi-skilled and competent to keep their competitory advantage. Additionally, in the electronic and information age where systems, package, and databases manage huge pool of informations, it has brought concern intelligence to a new significance. Information engineering has transforms the human resource ( HR ) to the Human Resource Information System ( HRIS ) . HRIS is a computerized system that organisation collects, analyses and study information about people and occupations ( Goel & A ; Kakkar, 2003 ) . It is one of the package being invested by organisation.
Benefits of Human Resource Information System
Human Resource Information System is an integrating between human resource direction and information engineering. Human resource direction engineering has become an of import tool for both big and little companies to remain competitory in the market place. An effectual HRIS purposes to enable direction and directors to utilize precise, comprehensive, and up-to-date work force information to do the right determinations in order to back up their concern and operations ( Tsui & A ; Lai, 2009 ) .
Integrating the engineering of HR
The information engineering has changed the traditional human resource maps in transporting out day-to-day activities, planning of human resources and preparation of staffs. Reengineering procedure took topographic point to absorb the processs to efficaciously pull off the firmaa‚¬a„?s human capital. The integrating of engineering towards human resource had provided an chance for human resource professionals to go strategic spouses with top direction. Hence, it is believes that the integrating should be strategically aligned with the concern aims. The alliance allows organisation to better be aftering for future staff every bit good as to supervise turnover, productiveness, and labour and benefits costs.
Increase efficiency and effectivity
Harmonizing to Overman, he claimed that HRIS processed information faster, provides greater truth of information, improved planning and plan development and enhanced employee communicating ( cited in Sharma ) . This is concluded as a type of administrative efficiency. Besides increased in efficiency, HRIS besides increased the effectivity of work processs. A better work civilization when HRIS is linked to the organizationaa‚¬a„?s intranet and cyberspace. The linkage allows employees to entree to their personal information, apply for leave and enables directors to corroborate and O.K. petition online.
Cost and benefit of HRIS
It is a big investing determination for companies to put in HRIS. Empirical surveies showed that the usage of HRIS would cut down the human resource costs by automatizing information and cut downing the demands for big figure of employees. Organization that embraces in HRIS scheme can cut down the clip of HR procedures such as paysheet, benefits disposal and employee informations gaining control ( Tsui & A ; Lai, 2009 ) . Furthermore, it besides allows the directors to entree relevant information and information to supply informations on strategic degree. The decrease in duplicate no uncertainty has save costs and salvage clip for employees.
Factors Preventing Company to Invest in Human Resource Information System and Its Effectss on Return on Investment
Frequently, organisation top degree direction and human practicians has a misconception about puting and put ining information engineering in human resource direction. This misperception has prevents company to put in HRIS. In add-on, there was besides argument about effects on the return on investing ( ROI ) in human resource ( Phillips et al, ) .
HRIS does non significantly better productiveness and net incomes
Some houses argued that puting in HRIS is a waste of money and it does non demo important consequence on productiveness and net incomes. Contrary, some houses do non believe so. Companies that invested in HRIS experience reduced operating costs, more efficient services, improved communicating in all degrees and riddance of dearly-won duplicate ( Pattanayak, 2005 ) . A survey shows that houses that invested in human resource engineering demonstrated high public presentation patterns which achieved $ 27,044 more in gross revenues, $ 18,641 more in market value and $ 3,814 more in net incomes on a per employee footing ( cited in Mayer ) . This has a positive impact on ROI and enables HR practicians to further develop the human capital.
HRIS is complex and expensive
The cost of HRIS is really broad spread. The more expensive the system, the more complex the system is. Harmonizing to Auxillium West- a human resource package company, a basic low terminal desk top system can be $ 300 whereas the highest end client-server systems can transcend $ 1,000,000. The tremendous cost involves may impede organisation to put in HRIS. To cut down the cost incurred and have a good ROI, houses can take to custom-make the system to outdo suit their company needs. The HR section has to analyse its information engineering needs carefully before doing determination on which systems to get. They have to bear in head that customization options allow flexibleness.
There are no proficient supports available for HRIS
Technical supports are one of the factors forestalling houses to put in HRIS. Organization does non cognize whether the HRIS system be supported internally or host by the seller. The choice of support will has an impact on the ROI.