Conference Proceedings (COES&RJ-CP)

ISBN (E): 978-969-9347-66-5 ISBN (P): 978-969-9347-67-2

nd
Online Publication Date: 22 September 2015
Online Issue: Volume 2, Number 5, September 2015
Publisher: Centre of Excellence for Scientific & Research Journalism- COES&RJ LLC
[Link]
The Practice of HRIS Applications in Business Organizations in Jordan: An
Empirical Study

Dr. Rand Hani Al-Dmour, Assistant Professor of Management Information Systems,

Management Information Systems Department, School of Business, The University of
Jordan, [Link]@[Link]
Dr. Bader Yousef Obeidat, Associate Professor of Business Management, Business
Management Department, School of Business, The University of Jordan, Amman, Jordan,
[Link]@[Link]
Dr. Ra’ed (Moh’d Taisir) Masa’deh, Associate Professor of Management Information
Systems, Management Information Systems Department, School of Business, The
University of Jordan, Amman, Jordan, [Link]@[Link]
Dr. Dmaithan Abdelkarim Almajali, Assistant Professor of Management Information
Systems, Management Information Systems Department, Faculty of Economics and
Administrative Sciences, Zarqa University, Zarqa, Jordan, almjalidmaithan@[Link]

Abstract:
The study aims at investigating the extent of the applications of Human Resources
Information Systems (HRIS) being practiced in Jordanian business organizations. The
study is based on primary data collected through a structured questionnaire from the HR
personnel of 236 out 275 of shareholdings companies. The results indicate that the
extent of HRIS being practiced is considered to be moderate. This implies that there are
some variations among business organisations in terms of their level of implementing of
HRIS applications. The results also showed that the extent of HRIS applications being
practiced were found varied among business organizations based on their type of
business and length of time in business. However, there were not found varied due to
their size of business.
Keywords:
HRIS applications, HRIS practice, Business organizations, Jordan
Citation:
Al-Dmour, Dr. Rand Hani; Obeidat, Dr. Bader Yousef; Masa’deh, Dr. Ra’ed (Moh’d Taisir);
Almajali, Dr. Dmaithan Abdelkarim; The Practice of HRIS Applications in Business
Organizations in Jordan: An Empirical Study; (September 2015); Conference Proceedings
(COES&RJ-CP), 2(5), article5, pp:53-74.

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 Conference Proceedings (COES&RJ-CP), 2(5), article5, pp. 53-74

1 Introduction
Over the past two decades there have been extensive studies on the adoption and use of
HRIS. While some have examined the type of applications that dominate HRIS (e.g. Clark,
Grant and Heijltjes 1999, Ensher, et al., 2002; Jain, 2014; Fagan and Ployhart, 2015), and
the necessary antecedents for the successful implementation of HRIS (Yeh, 1997) as well
as the conditions that support successful HRIS (Haines, 1997), others have investigated
the organizational adoption ( e.g. Panayotopoulou, et al., 2007; Lau and Hooper, 2008).
Generally, the majority of these studies were performed in developed countries
(Panayotopoulou, et al., 2007), with few considering developing countries. HRIS in Jordan
can be considered as a new IT tool in business originations. The main purpose of this
study is to explore the extent of practice of HRIS applications at the organization’s level.
This is important for more than one reason. First, it provides some insights into the
extent of implementation of HRIS applications by companies operating in Jordan, which
should help HR practitioners acquire a better understanding of the current status,
benefits, and barriers to the implementation of HRIS applications. Second, professionals
should be informed about the advanced state of HRIS applications in Jordan.
Problem Statement
Over recent years a large number of studies have explored IS applications and usage
(Masa’deh, 2013; Obeidat, et al., 2014; Masa’deh, et al., 2015; Lizcano, et al., 2016).
While the majority of these studies have focused on the type of applications that are
common in IS (Krishn and Bhaskar, 2011; Kundul and Kadian, 2012; Saharan and Jafri,
2012; Chalmeta and Pazos, 2015), and the technical resources required for the successful
implementation of IS (Yeh, 1997) as well as the conditions that support successful IS
(Haines, 1997; Florkowsk and Olivas-Lujan, 2006), few of them have focused on the
organizational implementation of HRIS applications. Further, these studies can be
classified according to their regional and functional focus. Concerning the regional focus,
the majority of these studies were conducted in developed countries (Panayotopoulou,
et al., 2007, Ngai and Wat 2004), while studies in developing countries are rare and tend
to involve a few countries (i.e. Malaysia, Taiwan). With most studies of “HRIS”
implementation being based on cases in Europe and the USA, the cultural factors,
although complex, show some consistency. However, relatively few studies have been
investigated outside the most developed countries, such as in Jordan.
Research Questions and Objectives
The research questions of this study relate to the factors that influence the level of
utilization of HRIS applications in Jordanian business organizations. The specific questions
to be examined are:
What is the extent of practice or uses of information technology system applications by
HRM ? and ,
Are there any differences of the practice of HRIS applications among studied organizations in
terms of their size, experience and type of business?

The main objectives of this study are as follows:

The study mainly aimed at finding the applications of HRIS in business organizations in
Jordan. The specific objectives can be identified as:
To evaluate to what extend HRISs are being practiced in recruitment & selection, training &
development and in payroll system of the business organizations

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To find out whether the practice of HRIS applications are different among business
organizations due to their size, experience, and type of business

HRIS Overview: Definition and Applications

Definition of HRIS: Recent research has revealed quite a number of definitions of
HRIS, stemming from the seminal definition promulgated by DeSanctis (1986):“a
systematic procedure for collecting, storing, maintaining, retrieving, and validating
data needed by an organization about its human resources, personnel activities, and
organization unit characteristics. It is generally a collection of databases that integrate
together to form a vast record of all employee issues that exist within a company. Its
development has been evolutionary”. (DeSanctis, 1986. p16).

Tannenbaum (1990) defined HRIS as a technology-based system used to acquire, store,

manipulate, analyse, retrieve and distribute pertinent information regarding an
organisation’s human resources, consistently. Kavanagh, Gueutal and Tannenbaum
(1990) defined it similarly as a system used to acquire, store, manipulate, analyse,
retrieve and distribute information regarding an organisation’s human resources.
Bohlander and Snell (2011) define "human resources information systems as a system
that develops current and accurate information for decision-making and monitoring. As
they report, according to a recent survey, most of applied information technology has
been to maintenance staff’s information, monitoring salary operations, keeping
information about absences and doing administrative affairs and employment and
training programs. Computerized system is just for collecting, storing, maintaining,
retrieving organization’s required data about its employees. In addition to the above
usages they are developed to help planning, administrative functions, decision making
and controlling human resource management activities.

Hendrickson (2003) put emphasis on the notion of HRIS which, in his view, is seen as
crucial to any organizational information system having many facets. In such view, HRIS is
not only represented by computer based tasks or HR-related programs; rather it
comprehensively involves people, structures, strategies, processes and information. In a
similar vein, HIRS is believed to be a systematic process of “collecting, storing,
maintaining, retrieving and validating data needed by an organization about its human
resources, personnel activities, and organization unit characteristics” Kavanagh, Gueutal
and Tannenbaum (1990: 8).

In the year (2007), Strohmeier came up with the relatively new term e-HRM which he
used to designate the action of designing, adopting and implementing data technology.
Such kind of technology was utilized for connecting two or more people in the form of
group work, helping them to perform HR-related tasks. In terms of difference between
HRIS and e-HR, one can confidently claim that the former term is chiefly concerned with
the HR unit itself while the latter refers to those who handle such programs. By and
large, these systems are directed towards the betterment of the processes within HR
departments. Using e-HR, the target group is not HR staff but rather staff working in
other departments such as the management or other employees. In such system of e-HR,
HRM services offered in form of intranet used by employees.

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The variation between HRIS and e-HR may be described as the change from the
computerisation of HR functions to computer-provided data for such functions. Some
researchers deal with HRIS, or visualize it from an HRIS point of view, but they confuse
matters with e-HR when they begin to promote their concepts. For example, the so-
called stage-oriented approaches regarding the relationship between IT and HRM at a
certain stage step over to e-HR. Technically speaking, it can be said that e-HR is the
technical unlocking of HRIS for all employees of an organisation.

HRIS Applications: Researchers have made various suggestions regarding how HRIS
applications may support organizational processes (Hendrickson, 2003; S.C. Kundu,
Rajesh Kadian, 2012). A number of the HRIS applications that have been defined by
these researchers are outlined according to the HRM basic tasks in Table (1). For
example, Byars and Rue (2004) reported several applications for HRIS, such as clerical
applications, applicant search expenditures, risk management, training management,
training experiences, financial planning, turnover analysis, succession planning,
flexible-benefits administration, compliance with government regulations, attendance
reporting and analysis, human resource planning, accident reporting and prevention
and strategic planning. In addition to data storage, the HRIS system also allows certain
tasks to be completely much easier than they would be by hand, as well as reducing
the amount of paper that HR departments must store. These applications are outlined
below.

[Link] and Selection: One of the main activities of HRM is staffing. Staffing is
important because it provides a supply of individuals needed to fill the jobs within an
organization necessary to achieve business objectives. Once HR professionals have
undertaken job analysis, a job description can be prepared. Such job description is used
when recruiting individuals. E-recruiting, or Internet recruiting, is one of the methods
available to HR professionals that may be integrated with HRIS.

[Link] and development: Which provides a system for organizations to administer and
track employee training and development efforts. The system, normally called a learning
management system (LMS), if a standalone product, allows HR to track education,
qualifications and skills of the employees, as well as outlining what training courses,
books, CDs, Web- based learning or materials are available to develop certain skills.
Courses can then be offered in date-specific sessions, with delegates and training
resources being mapped and managed within the same system. Sophisticated LMS allows
managers to approve training, budgets and calendars alongside performance
management and appraisal metrics. Research on HRM (Kirrane, 1990) defines the
employment of Web access in staff training and professional growth. Web-based training
(WBT) is a common method of self-education through computer programs, the Web and
the different networks. Advancements in Web technologies in recent years provide a
promising new avenue for the development of training support applications. Attributes
such as instant communication and capability to send information back and forth without
errors are two important advantages of incorporating Web technologies in training needs
assessment. Meade (2000) emphasized that Web-based HRIS software provides self-
service convenience to the employees and managers via the Internet for mutual
communication.
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[Link] Administration: The payroll module automates the pay process by gathering data
on employee time and attendance, calculating various deductions and taxes, as well as
generating periodic pay cheques and employee tax reports. This module can contain the
entire staff-related business, and can also conjoin with the finance administrative units
established some time before a firm adopted HRIS. The administration of traditional
payrolls comprised a tiresome and time-consuming task that could be liable to error,
taking into consideration the many details needed, such as the original wage minus or
plus different payments. An HRIS can streamline this process; generally the payroll staff
member only needs to enter the hours worked (or possibly not even that for companies
using an electronic time clock integrated with the HRIS), and then the system will use a
series of steps and procedures to do all of the calculations for the employer. Pay cheques
are then quickly printed and distributed.

[Link] Administration: The management of the general staff benefit policies in large
organizations requires a huge amount of written work and information, something that
can be more efficiently performed if HRIS is employed. The system can track benefit
eligibility dates, trigger reports to remind HR to notify employees, allow benefit choices
to be quickly inputted, and deductions can be triggered on the payroll side of things, all
of which reduces the communication and paper flow between HR and payroll staff in
addition to reducing the likelihood of errors being made at any step in the process.

[Link] Management/Administration: It provides a system for organizations to

administer and track employee participation in benefits programs. These typically
encompass insurance, compensation, profit sharing and retirement. This process needs
all sorts of information to be gathered and administered, especially the nature of the
accident or sickness, the individuals implicated, medical reports, regulations controlling
staff behavior, and government information (Hendrickson, 2003). Studies of the payroll
interface have been conducted for areas such as record keeping, pension calculations,
and retiree payments and statements (e.g. Andrew and Satish, 2001). The Internet
provides a real-time way of allowing employees to review information on the breakdown
of salaries, deductions and accumulated balances. Organizations gather data on salary,
wages and other benefits to streamline inputs to the payroll, benefits and compensation
application online.

[Link] Appraisal: Although relatively few research studies have focused on the online
application of performance appraisal (Hansen and Deimler, 2001), the Internet plays an
important role in reducing the effort and agony of managing performance evaluation.
Normally, staff members have their performance reviewed periodically. Performance
reviews become immediately available to those involved, including supervisors,
colleagues, clients and others.

[Link] Planning: Effective HR planning is the process or system that assigns the correct number
of qualified employees to the right task at the right time. One reason for the increased
use of the Internet to support HRM is that the Internet is essential if HR managers want
to achieve business-related goals (Walker, 1993). These technological changes are

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thought to increase the ability of HR practitioners to monitor the workforce, produce

reports easily, utilize employee skills effectively and even reduce labor costs.

8. Internal and External Communication: The Internet and intranets provide effective
channels for organizations to enhance the process of internal and external
communication. Concerning internal communication, staff can directly contact each
other at the entire hierarchical structure of the firm. They can access up-to-date and
relevant information when they connect to the Internet. Externally, individuals can use
the Internet to link and share data across other departments in different branches,
including internationally-operating ones (Karakanian, 2000).

9. Self-Service (including Web portal): Permits staff to request HR information and

conduct some HR requirements through the system. Staff may request their attendance
reports directly from the system, and not from HR units. The program permits
administrators to endorse and request from their subordinates through the system
without overloading the task on the HR department. Many organizations have gone
beyond the traditional functions and developed HRM information systems, which
support recruitment, selection; hiring, job placement, performance appraisals, employee
benefit analysis, health, safety and security, while others integrate an outsourced
applicant tracking system that encompasses a subset of the above. O’Connell (1996)
indicated that a firm can assign responsibilities via communication between employees
in order to enable the performance of tasks traditionally expected of HR through direct
individual access to the Web. Additional satisfactory options for direct access comprise
permitting staff to enter data on time and work, check their pension situation, manage
deposits, design their contributions, construct yearly performance strategy and monitor
staff information (Roberts, 1999). A Web portal provides a two-way communication
channel to improve the relationship between individual employees and the broader
organization.
Table 1: A Summary of HRIS Applications
HRIS Applications Studies
1. Recruitment & selection Galanaki (2002), Ngai et al. (2008), Mooney (2002),
Verhoeven and Williams (2008), Junaid et al.
(2010), S.C. Kundu, Rajesh Kadian (2012).
2. Training & development Karakanian (2000), Teo et al. (2001), Hendrickson
(2003), S.C. Kundu, Rajesh Kadian (2012).
3. Payroll, benefits & Andrew and Satish (2000), Ngai et al. (2008),
compensation (management) Workforce Solutions (2009).
4. Performance appraisal Hansen and Deimler (2001), Adamson and Zampetti
(2001), S.C. Kundu, Rajesh Kadian (2012).
5. HR planning Walker (1993), Ngai et al. (2008).
6. Internal & external Karakanian (2000), Ngai et al. (2008).
communication
7. Self-service, including Web O’Connell (1996), Roberts (1999), Ngai et al. (2008).
portal
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Source: Workforce Solutions (2009)

Literature Review
Studies show that HRIS applications in human resource (HR) help primarily in achieving
three objectives i.e. cost reduction/efficiency gains, client service
improvement/facilitating management and employees and improving the strategic
orientation of HRM/innovation (Broderick and Boudreau, 1992; Ruël et al., 2004). Ruël et
al. (2004) added a fourth dimension to it i.e. allowing integration of HR functions. These
could be set as HRIS goals and taken as the basic reasons for adoption of HRIS in any
organization.

Over the past two decades, there have been a number of studies on HRIS. These studies
have focused on the type of applications that are predominant in HRIS (DeSanctis, 1986;
Broderick and Boudreau, 1992; Martinsons, 1994), the contexts necessary for the
successful implementation of HRIS (Yeh, 1997) as well as the conditions that support
successful HRIS (Haines and Petit, 1997). Martinsons (1994) clarified the usage of HRIS as
per the sophistication. He described the use of HRIS for administrative purpose i.e. in
employee record-keeping, payroll, payroll benefits etc. in HR as “unsophisticated”
(Martinsons, 1994). Studies have concluded that HRIS has been mostly used for these HR
activities. Automation, streamlining administrative tasks, deletion of repetitive activities
and the subsequent effects of these applications help HRIS to achieve the basic purpose
of cost and time reduction, process automation and efficiency gains (Ball, 2001; Ruël et
al., 2004; Ngai and Wat, 2006; Hussain et al., 2007; Altarawneh and Al-Shqairat, 2010).

Ball (2001) and Martinsons (1994) regarded the use of HRIS in domains of training and
development, recruitment and selection in addition to HR planning and performance as
being ‘sophisticated’. Here, it is claimed that what plays into the improvement of
employee services are: the availability of data regardless of time, minimizing data
duplication as well as the betterment and streamlining of HR functions. Therefore,
introducing web based HRIS shifts HR activities to managers and employees through self-
service technology. Consequently, the time spent on routine administrative tasks can
now be invested in strategic issues as well as in implementing novel plans which benefit
the organization. HRIS provided HR professionals with new chances to help their
employees prepare career plans, and strategies related to training and development.
Marler (2009) points out that the integration of HRIS applications supports the
implementation of HR policies and therefore achieves the organization’s strategic goals.
Similarly, Kossek and her colleagues argued that a corporate human resources
information system can theoretically and practically get the HR department involved as a
strategic business partner. Ruel et al. (2004) went further in support of HRIS
implementation to the extent that they claimed that such global presence forces
organizations to use HRIS and imagining HR in multi-plant companies without web based
HRIS applications is like a myth

Many studies have been carried out on various applications of HRIS (Kinnie and Arthurs,
1996; Lin, 1997; Ball, 2001; Teo et al., 2001; CedarCrestone, 2006; De Alwis, 2010;
Saharan and Jafri, 2012). A study in Taiwan found that HRIS is most extensively utilized at

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the EDP level, followed by the MIS and DSS levels (Lin, 1997). Kinnie and Arthurs (1996)
in their survey on UK companies revealed that the most frequent uses of HRIS were in
operational areas of employee records (72%), payroll (66%), pensions (57%) and
employment contract administration (48%). Another study found that employee record-
keeping (96.8%), payroll (90.5%) and benefits management (57.1%) were the most
common HRIS applications (Teo et al., 2001). Ball (2001) in a survey in UK found that
current employee details and organizational salary details were the most frequently
applied areas. Later, Ngai and Wat (2006) found that in Hong Kong companies the two
major applications of HRIS are providing general information (86.4 %) and payroll
services (84.7%). Recruitment and selection (11.1%) and succession planning (7.9%) were
least used HRIS applications (Teo et al., 2001). Ngai and Wat (2006) also showed that
corporate communication (20%) and recruitment and selection (26.9% and 19.1%,
respectively) were least used HRIS applications. These studies show that HRIS is more
commonly used for administrative purposes like employee record-keeping and payroll
rather than for strategic purposes (Groe et al., 1996; Kovach and Cathcart, 1999).

However, many studies have shown that companies have started using sophisticated
HRIS like training and development, performance management, compensation
management and corporate communication (CedarCrestone, 2006; De Alwis, 2010;
Saharan and Jafri, 2012). CedarCrestone (2006) in HCM Surveys on US companies
broadened the scope of HRIS applications. Administrative HRIS was still the most popular
application (62%), companies reported an increasing use of strategic applications i.e.
talent acquisition services (61%), performance management (52%), or compensation
management (49%) (CedarCrestone, 2006).

De Alwis (2010) in his study on Sri Lankan industry shows that the most commonly used
modules in HR department are training and development, recruitment and selection and
performance appraisal and are being utilized by all the companies. A recent study on
Indian companies also found that HR professional had major applications of HRIS as
recruitment and selection (67.2% and 71.9%, respectively), pay roll service (67.2%),
providing general information (67.2%), compensation (67.2%), performance appraisal
(62.5%) and job analysis and design (62.5%) (Saharan and Jafri, 2012). Also HRIS was
quite in use in corporate communication (48.2%) (Saharan and Jafri, 2012). The most
popular future applications of HRIS had been predicted as training and development
(72.5%), career development (60.8%) and performance appraisal/management (58.8%)
(Teo, et al., 2001). There appears to be a shift towards strategic applications of HRIS. The
possible reason could be that most of the organizations which are using HRIS for few
years till now, want to explore the possibilities of strategic HRIS applications over the
next few years (Teo, et al., 2001).

Lin (1997) confirmed that there are other factors which play role in support of HRIS
implementation and effectiveness, among which he mentions: higher HIRS level, usage
by top managers as well as usage by HR staff and their experience. As far as the
effectiveness of HRIS is concerned, the most powerful contributors are: training, support
of the information systems department, the involvement of human resources leaders in
addition to HR staff computer literacy. Moreover, support for decision making,
timeliness, comprehensiveness and accuracy can enhance system effectiveness. In the
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year (2007), Teo attempted to identify the relative use of HRIS applications and its impact
in Singaporean organizations. In doing so, her surveyed 500 firms, 110 of which proved
usable responses which correspond to (22.2 %) of the population. The results indicated
that the majority of the users do not discern the potentials of HRIS applications as only
few respondents were using HRIS applications to improve their competitiveness.

Hussain et al., (2007) carried out a survey on the human resource information usage and
impact which involved the 40 HR UK organizations, stating that the HRIS usage enables
the HR professional to improve strategic planning. With increasing functionality and
affordability, HRIS can be used widely in organizations of all sizes. However,
discrepancies remain between differently sized companies and the impact of HRIS
between the general professional and HR professional. They found that non-strategic
benefits are accrued from deploying HRIS, especially as it reduces staffing levels for
routine administrative tasks. To generate consistent and reliable data quality for auditing
purposes, it was proven that small- and medium-sized companies prefer to adopt HRIS
applications.

An exploratory survey of HRM practices was carried out by the Ministry of State for
Public Service in Kenya (Wachira, Cotonou). This survey clarified that day-to-day HRM
work in the civil service was restricted to activities like: commutation of leave,
confirmation of appointments, payroll preparation, staff deployment, attending
meetings, verification of personnel data, pension matters, and statutory deductions and
arranging staff training. After a survey that he made, Overman (1992) presented the
potential advantages of HRIS which include faster information processing, greater
accuracy, improved planning, program development, and enhanced employee
communications. Dileep (2010) postulated that HRIS is an integration of HRM and
information systems through which HRIS helps HR managers perform HR functions in a
more effective and systematic way using technology.

According to some researchers, implementing HRIS would reduce HR costs by

automating information and reducing the number of needed HR employees. It also helps
employees to control their own personal information and allows managers to access
relevant information and data. Additionally, it also assists in conducting analyses, making
decisions and communicating with others without referring to HR professionals (Awazu
and Desouza 2003; Ball 2001). Ideally speaking, an appropriate implementation of HRIS
applications would lead to less people needed to perform administrative tasks such a
keeping records. Meanwhile, more time would become available so that HR managers
can assist their employees by providing data on a strategic level.

Many of these researchers believe that the future will be bright for HRIS as it creates new
paths for human resources and for the organizations that effectively use HRIS. HRIS also
provides HR professionals with opportunities to enhance their contribution to the
strategic direction of the firm. First, by automating and devolving many routine HR tasks
to line management, HRIS provides HR professionals with the time needed to direct their
attention towards more business critical and strategic level tasks, such as leadership
development and talent management (Lawler et al., 2003). Second HRIS provides an

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opportunity for HR to play a more strategic role, through their ability to generate real
time reports on HR issues, including workforce planning and skills profiles, which can be
used to support strategic decision making (Hendrickson, 2003; Lengnick-Hall et al., 2003;
Lawler et al., 2004).

In their 2002, HRIS survey, Watson Wyatt found that the top four metrics used in formal
business cases supporting HRIS were improved productivity within HR organization, cost
reductions, return on investment, and enhanced employee communications HRIS
contribute to cost reductions, quality/customer satisfaction, and innovation (Broderick
and Boudreau, 1992). According to Sadri and Chatterjee (2003) computerized HRIS
function enable, faster decision making, development, planning, and administration of
HR because data is much easier to store, update, classify, and analyze. David et al. (2010)
analyzed the main traits of efficient firms and the main sources of firm’s efficiency
through samples of Catalan firms. Firms' efficiency shows a significant improvement
when advanced ICT uses are combined with human resource practices.

Furthermore, the two sides of the equation are unequivocal. While it may be possible to
pinpoint many of the relevant costs (e.g., software and hardware), it is a lot more difficult
to identify the intangible benefits which can be derived from implementing HRIS systems
(Boateng, 2007). In addition to cost reductions and productivity improvements, HRIS
would potentially and fundamentally affect revenue channels. However, creating direct
and objective benefit measures is more difficult to achieve.

On the other hand, implementing HRIS is associated with costs required as capital for all
HR possibilities as well as the equipment needed by workers such as personal computers
and global internet connections. Here, it is worth mentioning that some companies
facilitate work-at-home by providing their employees with computer discounts to
encourage home usage. Furthermore, there are inevitable transition costs associated
with changing from traditional HR to HRIS. Such costs include prices of slowdowns,
mistakes and other consequences of transition from legacy systems into integrated suites
(Brown, 2002). On the benefits of implementing HRIS applications, Altarawneh and Al-
Shqairat (2010) proposed that quick response and access to information were the major
pros. On the other side, they considered the cultural and financial barriers as restricting
cons.

Similarly, Batool et al. (2012) indicated that quick response and easy access to
information are the benefits; they also added reducing manpower to the list. On the
disadvantages, they considered lack of funds and lack of trained staff as the greatest
barriers taking Accounts Office, Azad Jammu and Kashmir Community Development
Programs as case studies. Here, I find it very much useful to quote Bhaskar (2011: 15)
who postulated that: “In the current fast-paced global competitive business environment,
the efficient and effective management of human capital is an immense challenge to the
human resources departments. Information systems contribute to improve the
organizational performance, and enhance the competencies of human resources
professionals”.

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Relatively, Russel and Michael (1988) and Thomas and Anne (1997) agreed that the
integrations of information systems with human resources departments could lead
different organizations to acquire competencies in HR management. Further, human
resources systems can contribute to acquiring strategic capabilities through facilitating
the decision making processes, enhancing information accuracy as well as reducing cost
and time. Regarding the relationship between the practices of human resources
management and competitive advantage, a number of researchers addressed this topic.

Moreover, researchers addressed the relationship between human resource

management practices and competitive advantage. Researchers have observed that
human resources management can contribute to competitive advantage by reinforcing
the set of role behaviour that result in low cost and product differentiation (Augustine
and Mary, 1994; Carol, 1998; Zahid et al., 2007). HRIS was designed to enhance the
administration, planning, control activities and decision making of HR (Carol, 1998;
Russell and Michael, 1988). Thus HRIS has the ability to make human resources more
competitive; consequently human resource department will be as a strategic partner in
organizations (Carol, 1998; Zahid, et al, 2007). The majority of the studies have focused
on the status of the use of HRIS and on the human resources practices which integrated
as a part of HRIS. There has been minimum research done to address the perceived
benefits of implementing HRIS (Ngai and Wat, 2004).

Lederer (1984) highlighted why he regards the accuracy and timeliness of HRIS as the
most important aspect of the application process; he justified his view by showing the
importance of operating, controlling, and planning of HR activities. On the advantages of
using HRIS, Kovach et al. (2002) listed several administrative and strategic pros;
meanwhile, we prefer to mention here the five reasons why companies should use HRIS
as pointed out by Beckers and Bsat (2002). These were because HRIS can: (1) increase
competitiveness by improving HR operations; (2) produce a greater number and variety
of HR-related reports; (3) shift the focus of HR from the processing of transactions to
strategic HRM; (4) make employees part of HRIS; and finally (5) reengineer the entire HR
function of companies. Broderick and Boudreau (1992) examined how HRIS can
contribute to cost reductions, quality/customer satisfaction, and innovation. Later on,
Sadri and Chatterjee (2003) argued that the computerization of functions through
applying HRIS led to faster decision making of matters related to the development,
planning and administration of HR; this was justified by claiming that data became easily
stored, updated, classified and analyzed not to mention the role that HRIS plays in
strengthening the organization’s character.

Kettley and Reilly reported (2003) that the potential benefits of HRIS can be divided into
three areas: Operational efficiency – Reducing overhead costs, enhancing the accuracy of
data, eliminating the costs of printing and disseminating information, minimizing IT
infrastructure costs by moving towards a common HR service platform and enhancing
the ability to distribute HR information and services globally Relational impact – Change
the nature of the relationship between HR, line managers and employees.
Transformational impact – Transform HR’s role into that of a strategic business partner,
adding greater value to the business by increasing HR’s influence as customer focused

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consultants, enabling new, flexible and responsive methods for delivering HR services
expanding HR’s reach as the experts of an organization’s people processes and
developers of value propositions for different employee groups.

Research Hypotheses: Based upon literature review, the following hypotheses are
examined in this study:
H01: There is no significant difference among business organizations in terms of the extent
of HRIS applications being practiced based on their type of business sector
H02: There is no significant difference among business organizations in terms of the extent
of HRIS applications being practiced based on their size of business
H03: There is no significant difference among business organizations in terms of the extent
of HRIS applications being practiced based on their business experience
Research Methodology: The data for this research were collected through self-
administrated questionnaire by including the variables used in various studies (Ball, 2001;
Teo et al., 2001; Ngai and Wat, 2006; Ruël et al., 2007; Ngai et al., 2008; Al-dmour et al.,
2010, 2013). The included different variables were like: HR planning, job analysis and
design, training and development, disciplining procedure, performance appraisal and
review, employment reward, compensation management, pay roll, current employees’
information, and employment leave ( Al-dmour et al., 2013); recruitment, pay roll
benefit, self-service web portal and internal and external communication (as in Ngai et
al., 2008); corporate communication (Ngai and Wat, 2006); historical record of
employees (Ball, 2001) and strategic management (Ruël et al., 2007).
The target respondents were the shareholding companies in Jordan and the key
respondent was HR manager. The survey units in this study are the individual business
firms. The decision of the choice of the individual firm as a focus for study derived from
the nature and the objectives of the study. In other words, the investigation was
conducted at the micro level. The identification of the individual business organizations
in the country (Jordan) could be done by obtaining names of all firms, as well as their
addresses, from a variety of private and public sources in order to identify the type of
business sector, and the range of the number of firms in each sector. Restrictions of time
and financial resources could make the inclusion of all business organization impossible.
Therefore, the target population is only limited to the shareholding companies listed in
Amman Stock exchange Market database. Table (2) demonstrates the domain of the
study's population and number of respondents by sector. Out of 275 shareholding
companies, only 236 companies responded to the questionnaire. The response rate is
there of (85 %) percent of the size of sample.

Table 2: Study Population by Sector

Type of Company* No. of Companies No. of Percentage
Respondents
Banks & Insurance 43 38 93.75
Services 154 131 85
Manufacturing 78 68 87
Total 275 236 85
Source:*National statistics Yearbook 2012

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A total number of 275 questionnaires for the study were distributed to the respondent’s
by mail and also by hand. Initially, research assistants called the companies to have
appointments to distribute copies of questionnaire to their companies. After
respondents answered the questions, the assistants collected the copies from them. In
this survey, some variables are factual (for example, type of business, size and
experience), whereas others are perceptual (for instance, management expectations,
commitment and corporate culture.). All perceptual variables are measured using multi-
item constructs that have been previously tested. The dependent variables (i.e. the
extent of the utilization of HRIS applications) and the independent variables (internal and
external factors) were measured using a five-point Likert scale (e.g. ranging from (1) "not
implemented at all" to (5) "highly implemented"). The study is based on primary data.
For data collection, a structured questionnaire was developed collected data were fed to
the statistical software called SPSS-20 to analyse. Simple statistical tools like, mean,
standard deviation, and Anova were applied.
The Extent of Practice of HRIS Applications: The measure of extent of HRIS function
being implemented is the type of applications used in the organization. In this study, the
uses of HRIS for ten HRM activities were identified. These were selected as they were the
most common applications frequently mentioned in HRIS books and HR magazines. The
results are presented in Table (3). The results are consistent with previous work as many
surveys and research on HRIS found that HRIS is more commonly used for administrative
purposes like employee record-keeping and payroll rather than for strategic purposes
(Ball 2001; Kovach et al. 2002; Ngai and Wat 2006; Hussain, et al., 2007; Delorme and
Arcand 2010). The results indicate that the extent of HRIS applications being practiced
could be considered moderate (i.e. 3.50%), since their means are greater than the mean
of the scale*, which is 3 (i.e. mean of the scale = Σ Degrees of the scale / 5 = 1+2+3+4+5 /
5 = 3).
Table 3: Extent of Implementing of HRIS Applications
HRIS Applications Mean* Percentage Standard deviation
Employee record-keeping 4.52 90.4 .701
Recruitment/selection 4.20 84 .855
Payroll service 4.10 82. .774
Benefits management 3.75 75 ,765
Training & development 4.21 84.2 .824
Performance appraisal/ 3.80 76 .876
Compensation management 3.47 71.4 1.16
Turnover tracking/job analysis 3.37 67.4 .988
Internal and external communication 3.50 70 .876
Succession HR planning 3.45 69 .804
Average practice 3.50 70 .865

Testing Hypotheses: The ANOVA analysis technique is used to examine the study
hypotheses. To assess the differences among business organizations in terms of the
practice of HRIS applications based on their organization’s demographic characteristics
such as size, type of business, and business experience (age), one way analysis of
variance (ANOVA) was used to compare the means of participants’ extent of practice of
HRIS applications and determine if there are any significant differences among the three
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types of business sectors , i.e., banks and insurance, service and industrial . As it is
shown in Table (4), there are significant differences among business originations in terms
of the practice of HRIS applications due to their types of business sector to which they
belong.
Table (4): The level of significance of HRIS applications among groups of organizations based
upon their business experience
HRIS applications Sum of Df Mean F Sig.
Squares Square
Between Groups 53.155 2 26.577 14.367 .000
Employee recordkeeping. Within Groups 431.015 233 1.850
Total 484.169 235
Between Groups 31.088 2 15.544 8.026 .000
Recruitment and selection. Within Groups 451.263 233 1.937
Total 482.352 235
Between Groups 47.943 2 23.972 12.535 .000
Payroll service Within Groups 445.599 233 1.912
Total 493.542 235
Between Groups 56.659 2 28.330 15.770 .000
Benefits management Within Groups 418.561 233 1.796
Total 475.220 235
Between Groups 48.711 2 24.356 13.633 .000
Training and development Within Groups 416.251 233 1.786
Total 464.962 235
Between Groups 52.237 2 26.119 16.370 .000
Performance appraisal Within Groups 371.746 233 1.595
Total 423.983 235
Between Groups 57.790 2 28.895 17.103 .000
Compensation management Within Groups 393.646 233 1.689
Total 451.436 235
Between Groups 49.766 2 24.883 16.323 .000
Turnover tracking/analysis. Within Groups 355.183 233 1.524
Total 404.949 235
Between Groups 58.079 2 29.040 19.191 .000
Internal and external
Within Groups 352.578 233 1.513
communication
Total 410.657 235
Between Groups 69.633 2 34.817 19.273 .000
Succession HR planning. Within Groups 420.922 233 1.807
Total 490.555 235

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ANOVA test is also used to measure the differences among the business originations in
terms of the extent of practice of HRIS applications based on their size (number of
employees. The results shown in Table (5) indicate there are no significant differences
among business organizations in terms of the extent of the practice of HRIS applications
due to their size. This result suggests that the business organization were not varied in
the extent of use of the HRIS applications.

Table (5): The level of significance of HRIS applications among groups of organizations based upon their
Size

HRIS applications Sum of df Mean F Sig.

Squares Square
Between Groups 4.377 2 2.189 1.063 .347
Employee recordkeeping. Within Groups 479.792 233 2.059
Total 484.169 235
Between Groups 6.172 2 3.086 1.510 .223
Recruitment and selection. Within Groups 476.180 233 2.044
Total 482.352 235
Between Groups 5.599 2 2.799 1.337 .265
Payroll service Within Groups 487.944 233 2.094
Total 493.542 235
Between Groups 8.469 2 4.234 2.114 .123
Benefits management Within Groups 466.752 233 2.003
Total 475.220 235
Between Groups 4.177 2 2.089 1.056 .349
Training and development Within Groups 460.785 233 1.978
Total 464.962 235
Between Groups 4.790 2 2.395 1.331 .266
Performance appraisal Within Groups 419.193 233 1.799
Total 423.983 235
Between Groups 3.036 2 1.518 .789 .456
Compensation management Within Groups 448.401 233 1.924
Total 451.436 235
Between Groups 4.484 2 2.242 1.305 .273
Turnover tracking/analysis. Within Groups 400.465 233 1.719
Total 404.949 235
Between Groups 4.445 2 2.222 1.275 .281
Internal and external
Within Groups 406.212 233 1.743
communication
Total 410.657 235
Between Groups 2.604 2 1.302 .622 .538
Succession HR planning.
Within Groups 487.951 233 2.094
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Total 490.555 235

Furthermore, ANOVA test is employed to examine the difference among the business
organizations in terms of the extent of use of HRIS applications based on their business
experience (age). The result revealed in Table (6) that there are significant differences
among business organizations in terms of the practice of HRIS applications due to their
business experiences.
Table (6): The level of significance of HRIS applications among groups of organizations based
upon their business experience
HRIS applications Sum of Df Mean F Sig.
Squares Square
Between Groups 19.423 2 9.711 4.869 .008
Employee recordkeeping. Within Groups 464.747 233 1.995
Total 484.169 235
Between Groups 15.154 2 7.577 3.779 .024
Recruitment and selection. Within Groups 467.197 233 2.005
Total 482.352 235
Between Groups 22.867 2 11.433 5.660 .004
Payroll service Within Groups 470.676 233 2.020
Total 493.542 235
Between Groups 21.130 2 10.565 5.421 .005
Benefits management Within Groups 454.090 233 1.949
Total 475.220 235
Between Groups 19.088 2 9.544 4.987 .008
Training and development Within Groups 445.874 233 1.914
Total 464.962 235
Between Groups 14.962 2 7.481 4.261 .015
Performance appraisal Within Groups 409.021 233 1.755
Total 423.983 235
Between Groups 19.164 2 9.582 5.165 .006
Compensation management Within Groups 432.272 233 1.855
Total 451.436 235
Between Groups 12.759 2 6.380 3.790 .024
Turnover tracking/analysis. Within Groups 392.190 233 1.683
Total 404.949 235
Between Groups 14.641 2 7.320 4.307 .015
Internal and external
Within Groups 396.016 233 1.700
communication
Total 410.657 235
Succession HR planning. Between Groups 26.691 2 13.346 6.703 .001

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Within Groups 463.864 233 1.991

Total 490.555 235

Discussion and Conclusions

One of the main objective of this study is to explore to which extent the business
organizations in Jordan applied HRIS applications. The results indicate that the extent of
HRIS being practiced is considered to be moderate (i.e. 70% or 3.51%). This implies that
there are some variations among business organisations in terms of their level of
implementing HRIS applications. This might be due to the fact that some of the
managements of these business organisations would prefer to use these applications for
administrative rather than strategic purposes. This result is consistent with previous
work, as many surveys on HRIS have found that HRIS is more commonly used for
administrative purposes like employee record-keeping and payroll rather than for
strategic purposes (Ngai and Wat, 2006; Ball, 2001; Kovach, et al., 2002 ; Hussain et al.,
2007; Delorme and Arcand, 2010; Masum, et al., 2013). In this context, Ball (2001),
Kovach et al. (2002), and Ngai and Wat (2006) argue that HRIS should not only be
designed to automate HRM activities to gain administrative advantages; rather, it should
also be used for decision-making and providing strategic advantages for organisations.
However, Kundu and Kadian (2012) reported that many studies have shown that
companies have started using sophisticated HRIS applications for training and
development, performance management, compensation management and corporate
communication (CedarCrestone, 2006; De Alwis, 2010; Saharan and Jafri, 2012; Masum,
et al. 2013). CedarCrestone (2006) in HCM Surveys on US companies broadened the
scope of HRIS applications. Administrative HRIS was still the most popular application
(62%), and companies reported an increasing use of strategic applications, including for
talent acquisition services (61%), performance management (52%) and compensation
management (49%) (CedarCrestone, 2009). De Alwis (2010) in his study on Sri Lankan
industry shows that the most commonly used modules in HR department are training
and development, recruitment and selection, and performance appraisal, which were
being utilized by all the companies in the sample.
The second objective of the study is to compare differences among business
organizations in terms of the extent of HRIS being practiced based on their type of
business, size and experience. Interestingly, the study found no significant differences
among business organizations in the extent of HRIS being practice due to their size. One
explanation for this is that all of business originations in this study are shareholding
companies. That is to say, all of them were large organizations. However, statistical
significant differences were found based on the type of business sector as well as the
length of time in business (experience). It was found that the extents of HRIS applications
being used are varied among business organizations either due to their type of business
or experience.
One explanations of the above findings is that regardless the size of business
organizations, there are many other classifying variables that make Jordanian business
different in terms of the extent of HRIS application being implemented such as the
business’ experience (age) and type of business. The results revealed that the business

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organizations were varied in all the HRIS applications. This result is consistent with the
previous studies such (CedarCrestone, 2006; De Alwis, 2010; Saharan and Jafri, 2012).

Based on the above discussed findings, two outstanding conclusions can be made. First,
the results indicate that the extent of HRIS being practiced is considered to be moderate.
The results also indicate that the most frequent application of HRIS in business
organizations in Jordan was found to be in “employee record”, followed by “payroll” and
“recruitment/selection”. Sophisticated HRIS applications such as “Succession Planning”,
“Performance Appraisal”, “Compensation Management” and “Training and
Development” were also applied in organizations in Jordan. This could be because HRIS
applications have been deployed since the inception of HRM in Jordan. From the 1960s,
personnel management was closely involved in office automation in pay roll, benefit
administration and other transaction processing applications such as employee record
holding (Martinsons 1994, Ball, 2001). The study concludes that the scope of HRIS
applications have broadened in Jordan. Although operating HRIS applications like
employee record and payroll remain the most popular applications, there is an increase
in use of HRIS in sophisticated activities and decision making. Previous studies support
these findings (CedarCrestone, 2006; Saharan and Jafri, 2012).
Second, when compared, the extent of HRIS application being practiced among business
organizations in terms of type of business (banks, insurance, and service companies vs.
industrial companies) was found at a significant edge over industrial companies on all the
ten applications. This clearly indicated that the service companies apply more of HRIS
applications than the industrial companies. This might be due to the fact that service
companies tend to be more technology-oriented and driven than industrial companies in
Jordan. However, there are no significant differences in the use of HRIS applications
among business organizations due to their size.
The present study has important implications for studies aimed to understanding HRIS
implementation in developing countries. However, explanations of several findings above
indicate the importance of contextual factors within organisations. This study provides
some insights into the implementation of HRIS by Jordanian shareholding companies,
which should help HR practitioners to acquire a better understanding of the current HRIS
implementation status and applications.
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