Human Resources Information Systems

Module 2 – Unit 2 | Prescribed: Chapter 2

Foundations of Human Resource Information Systems

1. Defining Human Resource Information System (HRIS)

1.1 Definition
HRIS = An electronic system used to acquire, store, manipulate, analyze, retrieve, and distribute
information regarding an organisation's human resources.

It is an integrated system that provides comprehensive information that HR managers and line managers
can leverage for decision-making across all organisational levels.

1.2 HRIS as a Strategic Tool

The HRIS transforms raw HR data into actionable insights that support workforce planning and
organisational strategy.
It elevates HR's function from purely administrative to a strategic business partner.

2. Advantages or Benefits of an HRIS

Benefit Description
Centralized Access Single platform to access extensive HR information across departments, functions, and geograp
Enhanced Competitiveness Improves HR processes and employee management through streamlined operations and better
Timely Decisions Enables timeous, data-driven decisions with real-time information access.
Improved Efficiency Boosts effectiveness and productivity for HR administrative functions through automation.
Strategic Role Elevates HR's function from administrative to strategic business partner.
Employee Satisfaction Enhances job and employee satisfaction through better, timely, and accurate HR support.

3. Types of HRISs (p57)

There are four main types of HRIS systems:

Type Function / Description

Decision Support Systems (DSS)
Support management in decision-making and answer 'What if' questions. Used to look at skills
Management Information System
Provides
(MIS) HR metric information and specific reports (e.g. Equity reports). Produces structured r
Enterprise Resource Systems Integrates
(ERS) all systems in the organisation. Off-the-shelf products (e.g. SAP, Oracle). Comprehe
Transactional Processing System
Automates
(TPS) routine transactions (e.g. payroll, clock systems). Reduces the costs of transactions

4. Reasons for Reluctance to Implement HRIS (p57–58)

4.1 Lack of Support by Top Management
• HR is seen as a low priority and HRIS is regarded as costly.
 • Management does not see HR as a profit contributor.

4.2 Defensiveness About Revealing HR Operations

• HRIS means more visibility in the eyes of the public — requests and reports become accessible.
• HR fears losing ownership over its data and processes.
• Line managers may gain access to HRIS reports, and HR fears losing control over the system.

4.3 Satisfaction with the Status Quo

• HR staff are not involved in HRIS planning.
• Staff have too much other work to do and do not have enough support.
• They do not see the need for HRIS.
• They believe the current manual system is good enough.

4.4 Lack of Proper Communication

• HRIS can be seen as a threat or as unnecessary.
• Employees and managers need to be properly informed of the advantages of HRIS.

4.5 Poor / Incomplete Needs Analysis

• Organisations do not analyse their needs for HRIS before attempting to implement.
• Decision-makers perhaps do not see the need for HRIS and the implementation thereof.

4.6 Lack of HRIS Knowledge and Skills by Certain HR Managers

• No ETD (Education, Training and Development) has been provided.
• HR managers need preparation and training for HRIS adoption.

5. Common Reasons for HRIS Implementation Failure

Even when HRIS is adopted, implementation can fail. The common reasons are:

Category Description
Leadership Lack of support, leadership and change management, recognition of effort, and accountability.
Training Poor quality systems, poor timing of implementation, and lack of encouragement to develop new skills
Change Management Failing to assess organisational culture and readiness; lacking strategies to support cultural adaptation
Planning Poor planning — such as lack of a clear vision for change, unclear project scope, insufficient funding a
Communication Lack of an effective communication plan that is ongoing and curated for different audiences.

6. Skills Requirements of an HR Professional in HRIS Work (p58)

An HR professional working with HRIS must possess the following skills:

• Systems View of HR and its Relation to its Environment: Understanding how the HR function fits
within the broader organisational and environmental context.
• Systems Concepts Related to the HR Context: Knowledge of how information systems function
and how they apply to HR processes.
• Management Skills (Designing and Justifying HRIS): Ability to design, motivate, and justify the
implementation of an HRIS to decision-makers.
• Knowledge of Technical Programming Language: Basic technical knowledge to understand and
work with HRIS platforms and technical requirements.
 • Analytical Skills to Identify HRIS Needs (Systems Needs and End-User Needs): Ability to identify
what the system needs to do and what end-users require from the HRIS.
• Communication Skills: Ability to communicate HRIS-related information effectively to different
stakeholders.
• Computer Skills (Interface Between Technology and HR Function): Proficiency in using
technology as the interface between the HR function and the HRIS.
• Understanding of the Future of HRIS (Identify / Adapt): Ability to identify future HRIS trends and
adapt the system and HR practices accordingly.

7. Applications of HRIS Database Modules (p58–64)

The HRIS is made up of several database modules, each supporting a specific HR function. Refer to the
prescribed text for full descriptions.

Module Description

Basic Employee Module Stores fundamental employee information such as personal details, employment history, and dem

Applicant-Tracking Module Manages the recruitment process — tracking applications, interview schedules, and candidate sta

Position Control Module Monitors approved positions within the organisation, vacancies, and headcount planning.

Wage, Benefits and Salary Administration

Manages Module
compensation structures, benefits administration, and salary information.

Human Resource Planning Module Supports workforce planning by tracking current and future human resource needs.

Talent Management Module Focuses on identifying, developing, and retaining talented employees.

Training and Development Module Records employee training history, development plans, and learning interventions.

Skills Inventory Module Tracks the skills, qualifications, and competencies of all employees.

Labour Relations Module Manages employee relations data, grievances, disciplinary records, and collective agreements.

Time and Attendance Module Records employee working hours, leave, and attendance patterns.

Onboarding / Orientation Module Facilitates the integration of new employees into the organisation.

Performance Management Module Tracks employee performance reviews, KPIs, and appraisal records.

HR Metrics / Analytics and Reports Generates

Module HR reports and analytics (e.g. turnover rates, equity reports, HR metrics).

8. Selecting, Implementing, Maintaining and Evaluating HRIS (p67)

The following are the 12 steps for selecting, implementing, maintaining and evaluating an HRIS:

Step Action
Step 1 Do a needs assessment
Step 2 Compile a list of items essential for the HRIS
Step 3 Identify potential solutions and vendors, screen and arrange for demonstration and a needs assessment
Step 4 Decide whether the system will be bought from a vendor or developed in-house
Step 5 Review proposals and cost frameworks for all vendors and for internal development
Step 6 Identify all the hardware, software and data needed
Step 7 Prepare a presentation for the decision-makers in the organisation
Step 8 Implement the vendor/self-development system
Step 9 Train HR department and end-users
 Step 10 Obtain feedback from end-users
Step 11 Evaluate the system
Step 12 Update/change the system

9. Revision Questions — Guidance (Windy Flowers Scenario)

Q1: Define HRIS (3 marks)
HRIS is an electronic system used to acquire, store, manipulate, analyze, retrieve, and distribute
information regarding an organisation's human resources. It is an integrated system that provides
comprehensive information that HR managers and line managers can leverage for decision-making across
all organisational levels.

Q2: Three Advantages of Implementing HRIS for Windy Flowers (6 marks — 2 marks each)
• Centralized Access: Windy Flowers will have a single platform to access personnel records, payroll
and performance data across the organisation, replacing scattered spreadsheets.
• Improved Efficiency: Routine HR administrative functions (e.g. payroll) will be automated, saving
time and reducing human error.
• Timely Decisions: Management will be able to make timeous, data-driven decisions using real-time
information instead of relying on manual records.

Q3: Three Reasons Why Windy Flowers Can Be Reluctant to Implement HRIS (3 marks)
• Lack of support by top management — HRIS is seen as costly and HR not viewed as a profit
contributor.
• Satisfaction with the status quo — staff believe current manual systems are good enough.
• Lack of HRIS knowledge and skills — HR managers may not have been trained and may resist
adoption.

Q4: Three HR Modules for Windy Flowers (9 marks — 3 marks each: name, description,
application)
• Basic Employee Module: Stores fundamental employee personal and employment information.
Windy Flowers can use it to replace manual personnel records with a centralised digital employee
database.
• Wage, Benefits and Salary Administration Module: Manages payroll and compensation. Windy
Flowers can use it to automate payroll processing, eliminating spreadsheet errors.
• Performance Management Module: Tracks performance reviews and KPIs. Windy Flowers can use
it to manage and record employee performance data systematically.

Q5: Steps Used in Implementing HRIS (12 marks)

List all 12 steps as outlined in Section 8 above. Award 1 mark per step.

10. Quick Reference: Key Definitions

HRIS: An electronic system used to acquire, store, manipulate, analyze, retrieve, and distribute
information regarding an organisation's human resources.

Decision Support Systems (DSS): HRIS type that supports management in decision-making and
answers 'What if' questions.

Management Information System (MIS): HRIS type that provides HR metric information and specific
reports (e.g. equity reports).
Enterprise Resource Systems (ERS): HRIS type that integrates all systems in the organisation (e.g.
SAP, Oracle).

Transactional Processing System (TPS): HRIS type that automates routine transactions (e.g. payroll,
clock systems) to reduce transaction costs.

ETD: Education, Training and Development — required for HR professionals to be prepared for HRIS
work.

Needs Assessment: The first step in HRIS implementation — identifying what the organisation requires
from the system.

End-Users: The employees and managers who will use the HRIS on a day-to-day basis.

Human Resources Information Systems | Module 2 Unit 2 | Chapter 2