The utilization of human resources information systems (HRIS) has primarily been viewed as an excellent opportunity for human resource professionals to work closely with strategic managers. The evolution of HRIS has been motivated by the need to make human resource function effective and provide accurate information for decision-making. Ordinarily, HRIS are systems and procedures through which human resource professionals acquire, manipulate, process, store, and retrieve information. As organizations continue to evolve, there is need for more selective use of information to aid in decision-making. Therefore, managers are deciding on the kind of judgments they are making based on information provided by HRIS. Now that needs often change with time, organizations have resorted to more flexible systems to address changes in dynamics and needs of human resource management. The HRIS offers mechanism and management tools that guide leaders to formulate strategic objectives. The principal focus of this research is to identify and evaluate the strategic value of HRIS and how it contributes to the success of an organization.
Strategic value of HRIS
Foremost, HRIS is useful in conducting human resource analysis. The results of analysis determine the kind of decisions that are made by strategic managers. Therefore, HRIS adds value in the organization by proving insightful data on whether employees’ capabilities are consistent with strategic goals of an organization. In this way, strategic managers consider the analysis as on ongoing process and hence rely on HRIS to provide current information after collecting and identifying predominant human resource needs. Also, HRIS is used as a strategic integration tool. Per Sadiq et al. (2012), HRIS immensely contribute to strategic improvement in performance and revolutionizes the way human resource assets are managed. HRIS enhances strategic value by aiding the process of formulating and implementing internal policies and practices to support employees in their quest to achieve strategic objectives.
In addition, HRIS support strategic employee development. Through the system, managers identify inadequacies and weaknesses of their workers. As follows, a manager can then recommend appropriate training and development strategies to address the weaknesses hindering an employee from productively contributing to the success of an enterprise. Therefore, HRIS is valuable as it advances organizational learning by contributing immensely towards knowledge development. Consequently, HRIS manages data of employees to enhance compliance with statutory requirements. This is a strategic function of human resources managers as they are obligated to safely store employee records while adhering to privacy and confidentiality. Through the use of HRIS, data is safely stored without fears of unauthorized access. Besides, HRIS has provided support to managers when making hiring decisions. According to Sherman (2019), wrong hiring decisions can have unprecedented consequences. Therefore, HRIS facilitate the process of analyzing vacancies, producing job advertisement, designing requirements and providing insightful data used in selection and hiring.
Furthermore, HRIS is useful during performance evaluation and appraisal. It is a strategic function of a human resource manager to find out whether skill sets and capabilities of employees are consistent with organizational goals. Sherman (2019) posits that appraisal is linked to long-term strategic success of a company. Therefore, a human resource manager utilizes information retrieved from HRIS to improve the employee and organizational performance. This is done by taking into considerations factors like behaviors and attitudes likely to affect achievement of results.
Contribution to success of an organization
There are numerous ways through which utilization of HRIS contributes to the overall success of an organization. According to Sadiq et al. (2012), HRIS assist managers to promptly process information and make it available for decision-making with regard to human resource planning. Besides, HRIS necessitates communication between employees within an organization. As a result, it promotes team-work as workers strive to collectively achieve organizational goals. Hence, chances of success are high when clear instructions are communicated by supervisors to junior staff.
Human resource professional agree HRIS has strategic benefits to an organization. Sadiq et al (2012) asserts that utilization of HRIS reduces operation costs and staff redundancy. In view of this, HRIS tools completely automate information and give power to employees to manage their records. Traditionally, management of employee data would require ancillary staff. This means that fewer employees are required to perform certain administrative tasks like record keeping.
Further, HRIS makes it possible for senior managers to peruse data easily thereby enhancing efficiency with regard to decision-making. Human resource professional agree HRIS has strategic benefits to stakeholder management. In light of this, shareholders are provided with real-time information on success of an organization mapped against each employee. Consequently, stakeholders are capable of making recommendations on whether to increase or reduce the number of workers in accordance with current results. All these are meant to improve productivity and guarantee success and long-term sustainability.
Human resource information system (HRIS) is one of the core elements that affect operations within human resource domain. HRIS automates and supports recruitment, training, and appraisal functions. Additionally, HRIS positively contribute to the success of an organization by streamlining information capture, access, processing, storage and retrieval to enhance decision-making. Fundamentally, modern human resource management relies on effective use of information and HRIS tools. Therefore, this study recommends the establishment and use of HRIS to streamline human resource management irrespective of the size and specialty of an organization.
Sadiq, U., Ahmad, F., Khurram I. & Bahaudin, G. (2012). The Impact of Information Systems on
the performance of Human Resources Department. Journal of Business Studies Quarterly, 3(4), 77-91.
Sherman, F. (2019). The importance of a Human Resource Information System. Bizfluent.
Retrieved from https://bizfluent.com/list-7392380-advantages-human-resource-information-system-.html.