Shri Vile Parle KelvaniMandals

Mithibai College of Arts,, Chauhan Institute of Science &AmrutbenJivanlal college of Commerce and Economics Vile Parle (West) Mumbai 400056

A PROJECT ON HUMAN RESOURCE INFORMATION SYSTEM

IN THE SUBJECT HUMAN RESOURCE MANAGEMENT

SUBMITTED BY NAME: APARNA KUMAR ROLL NO.: 2 DIVISION: B

UNDER THE GUIDANCE OF PROF. HARIKRISHNAN KURUP

TO UNIVERSITY OF MUMBAI

FOR MASTER OF COMMERCE PROGRAMME (SEMESTER I)

YEAR: 2013-14

Shri Vile Parle KelvaniMandals

Mithibai College of Arts,, Chauhan Institute of Science &AmrutbenJivanlal college of Commerce and Economics Vile Parle (West) Mumbai 400056

EVALUATION CERTIFICATE
This is to certify that the undersigned have assessed and evaluated the project on Human Resource Information System submitted by Aparna Kumar, student of M.Com. Part - I (Semester I) for the academic year 2013-14. This project is original to the best of our knowledge and has been accepted for Internal Assessment.

Name & Signature of Internal Examiner

Name & Signature of External Examiner

PRINCIPAL DR. D.B.Gadakari

College Seal

Shri Vile Parle KelvaniMandals

Mithibai College of Arts,, Chauhan Institute of Science &AmrutbenJivanlal college of Commerce and Economics Vile Parle (West) Mumbai 400056

DECLARATION BY THE STUDENT

I, Aparna Kumar, student of M.Com. (Part I) Roll No. 2 hereby declare that the project titled Human Resource Information System for the subject- Human Resource Management submitted by me for Semester I of the academic year 2012-13, is based on actual work carried out by me under the guidance and supervision of Prof. Harikrishnan Kurup. I further state that this work is original and not submitted anywhere else for any examination.

Place: Mumbai

Date:

Name & Signature of Student: Aparna Kumar

EXECUTIVE SUMMARY
This project gives a detailed insight into Human Resource Information System which is an emerging trend in the field of Human Resources. The project highlights the functions of HRIS, the HRIS Strengthening Process, Importance and Disadvantages of HRIS. There are also a few cases where the HR Problem is solved with the help of HRIS, and this is highlighted in the project. Lastly, the project includes five trends of HRIS followed by the conclusion.

ACKNOWLEDGEMENT

Real life isn't always going to be perfect or go our way, but the recurring acknowledgement of what is working in our lives can help us not only to survive but surmount our difficulties.

The success of the completion of this project can be attributed to a few people who have given me their precious, valuable time and have been there to answer all my queries throughout my experience. Firstly, I would like to express a deep sense of gratitude to my Human Resource Management Professor- Mr Harikrishnan Kurup for his precious inputs and unflagging support. Secondly, I would like to thank the Mcom Coordintor Mr Bharat Patel for his continuous support and guidance.

TABLE OF CONTENTS

Chapter no 1 2 3

Title Introduction Functions of HRIS Leveraging HR Technology For Competitive Advantage

Page no 7-9 10-13 14-15

4 5 6 7 8 9 10

HRIS Strengthening Process Case Studies Importance of HRIS Disadvantages of HRIS Five Trends to Watch Conclusion Bibliography

16-20 21-24 25-26 27-29 30-31 32 33

CHP 1: INTRODUCTION A human resource information system (HRIS) is defined as a computer based application for assembling and processing data related to the human resource management (HRM) function. As in other types of information systems, an HRIS consists of a database, which contains one or more files in which the data relevant to the system are maintained, and a database management system, which provides the means by which users of the system access and utilize these data.

The HRIS thus contains tools that allow users to input new data and edit existing data; in addition, such programs provide users with the opportunity to select from an array of predefined reports that may either be printed or displayed on a monitor. Reports may address any of a number of different HRM issues (e.g., succession planning, compensation planning, equal employment opportunity monitoring).

HRISs also generally include tools by which users or system administrators may generate ad hoc reports and select specific cases or subsets of cases for display. In order to understand the types of applications available to HRIS users, it is best to consider the evolving nature of human resource information systems applications. The HRM field lagged behind a number of other functional areas of management in the utilization of computer applications, but beginning in the late 1980s extensive use of sophisticated applications began to appear.

Prior to that time, manual record systems often dominated in personnel or human resource departments. Computer applications used in the field were generally limited to basic record keeping and payroll management systems. Thus, HRIS, which is also known as a human resource information system or human resource management system (HRMS), is basically an intersection of human resources and information technology through a HR software solution. This allows HR activities and processes to occur electronically. To put it another way, an HRIS may be viewed as a way, through software, for businesses big and small to take care of a number of activities, including those related to human resources, accounting, management, and payroll. An HRIS allows a company to plan its HR costs more effectively, as well as to manage them and control them without needing to allocate too many resources toward them.

In most situations, an HRIS will also lead to increases in efficiency when it comes to making decisions in HR. The decisions made should also increase in qualityand as a result, the productivity of both employees and manages should increase and become more effective.

BACKGROUD Human resources information systems have evolved since the 1980s from relatively simple computer applications to virtual vaults of sophisticated human resources information and processes. HRIS also is the name of the human resources discipline for HRIS specialists and other human resources professionals involved in the technology for employment and personnel matters. An HRIS is used for employment actions such as applicant tracking, performance management, attendance, compensation and benefits management, work force analyses, and scheduling. An ERP is for all business matters, including profitability analyses, inventory control and investor relations data. These sophisticated systems generally are for large employers with complex technology needs. A very popular use of HRIS is employee self-service. Many employers are utilizing their HRIS to supplement the human resources department staff by enabling employees for find answers to common questions they would have asked a human resources representative. An employee self-service component can be used in a small business setting because it can be configured to accommodate work places with a dozen employees to companies with 10,000 employees

CHP 2: FUNCTIONS OF HRIS The function of human resources (HR) departments is generally administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Efficient and effective management of "human capital" progressed to an increasingly imperative and complex process. The HR function consists of tracking existing employee data which traditionally includes personal histories, skills, capabilities, accomplishments and salary. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing specialized human resource management systems. HR executives rely on internal or external IT professionals to develop and maintain an integrated HRMS. Before the client server architecture evolved in the late 1980s, many HR automation processes were relegated to mainframe computers that could handle large amounts of data transactions. In consequence of the high capital investment necessary to buy or program proprietary software, these internally developed HRMS were limited to organizations that possessed a large amount of capital. The advent of clientserver, application service provider, and software as a service (SaaS) or human resource management systems enabled increasingly higher administrative control of such systems. Currently human resource management systems encompass 1. Payroll 2. Time and attendance 3. Performance appraisal 4. Benefits administration 5. HR management information system 6. Recruiting/Learning management 7. Performance record 8. Employee self-service 9. Scheduling 10. Absence management 11. Analytics The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from the human resources and time keeping
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modules to calculate automatic deposit and manual cheque writing capabilities. This module can encompass all employee-related transactions as well as integrate with existing financial management systems. The time and attendance module gathers standardized time and work related efforts. The most advanced modules provide broad flexibility in data collection methods, labour distribution capabilities and data analysis features. Cost analysis and efficiency metrics are the primary functions. The benefits administration module provides a system for organizations to administer and track employee participation in benefits programs. These typically encompass insurance, compensation, profit sharing and retirement. The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities. Leading edge systems provide the ability to "read" applications and enter relevant data to applicable database fields, notify employers and provide position management and position control. Human resource management function involves the recruitment, placement, evaluation, compensation and development of the employees of an organization. Initially, businesses used computer based information systems to:

Produce pay checks and payroll reports; Maintain personnel records; Pursue talent management.

Online recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. Talent management systems typically encompass:

analyzing personnel usage within an organization; identifying potential applicants; recruiting through company-facing listings; recruiting through online recruiting sites or publications that market to both recruiters and applicants.

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The significant cost incurred in maintaining an organized recruitment effort, cross-posting within and across general or industry-specific job boards and maintaining a competitive exposure of availabilities has given rise to the development of a dedicated applicant tracking system, or 'ATS', module. The training module 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 stand alone 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 which 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 allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics. The employee self-service module allows employees to query HR related data and perform some HR transactions over the system. Employees may query their attendance record from the system without asking the information from HR personnel. The module also lets supervisors approve O.T. requests from their subordinates through the system without overloading the task on HR department. Many organizations have gone beyond the traditional functions and developed human resource management 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.

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NEED FOR HRIS

HRIS provide human resource professionals with opportunities to enhance their contribution to the strategic direction of the firm, First by automating and devolving many routine human resource task to the line management, HRIS provides human resource professionals with the time needed to direct their attention towards more business critical and strategic level tasks, such as leadership development and talent management

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CHP 3: Leveraging HR Technology for Competitive Advantage

Effective management of a firms human resources is a key source of competitive advantage for organizations. Increasingly, the delivery, support and management of HR all depend on Technologyspecifically, human resource information systems (HRIS). Research shows that implementing HRIS can enhance a companys long-term productivity and profitability. And HRIS are not only increasing efficiency, they are also transforming the HR function. . Five Keys to Leveraging HRIS Technology Todays HR technology is moving rapidly to web based systems to deliver data and services such as employee self-service (ESS), online recruiting, web-based training, online applicant testing and online benefits management. Many organizations now support HR portals, which provide one point of contact for a range of HR services. To better leverage this technology, leaders must focus on the underlying HR processes supported by HRIS. Keys to pairing powerful technology with solid HR processes include the following:

1) Use new technology as an opportunity to change HR. When new or improved functionality is added to an HR system, it is an opportunity to re examine the way a process is done. For example, HR workflow technology can reduce the cycle time of processes and streamline decision making. Fewer people in the loop usually means greater efficiency and lowered cost per transaction. Very often, processes built into HR vendor offerings are more efficient than an organizations existing HR processes. Although it may be tempting to view technology as the solution to an organizations problems, most firms will see more productivity and profitability gains by seizing the opportunity to improve HR processes.

2) Make employees self-reliant for HR services. Organizations using HRIS to delegate HR transactions and data maintenance to employees will outperform those using these systems solely as an HR compliance or reporting tool. Employees have become data consumers in their non-work lives and want that same level of access and control in their work lives. Giving employees access to their information increases the transparency of HR processes and helps employees better understand the role HR plays in the organization. Increasing employees perception of control over their information can also

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lead to an increased sense of fairness and job satisfaction.

3) Communicate with employees when monitoring performance. Computer based performance monitoring can be a valuable component of a performance management system, but it is important to inform employees about the aspects of performance being monitored and the reasons they are being monitored. Research has shown that communicating with employees in this way leads to increased acceptance of monitoring and to improved performance.

4) Use more data to get more answers. The implementation of HRIS lets HR answer new questions with newly available data. Forward-looking organizations can use these data to ask and answer basic questions like: What information on job applications predicts long-term performance and retention? HR managers commonly report that one of the most dramatic effects of third-generation HR systems is the ability to analyze HR data and respond quickly and accurately to questions from the C-suite.

5) Pay attention to appearance and functionality. Web design has evolved into an art form, and users expectations are very high. We expect web sites to be intuitive and work in a logical flow. Unfortunately, not many HR professionals have experience in design and user interfaces. When moving to online HR services, it is important to carefully test and evaluate ease of use and functionality of the HR portal or ESS application. Employees will form a revised opinion of HR based on their experiences with the web site. Remember, for many employees, the HR web site is HR. A sophisticated, well-designed site will communicate a sophisticated and well-run HR team, while a site that is cumbersome or difficult to use could detract from the departments image.

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CHP 4: HRIS Strengthening Process

The HRIS development and strengthening process comprises five key stages using a participatory approach (see Figure 1). The participatory approach involves stakeholders in HRH information from various ministries and sectors from the outset and increases local ownership of the system.

Figure 1: Flowchart of the HRIS Strengthening Process

The five steps of the HRIS strengthening process are:

1)Build HRIS leadership. Establish a Stakeholder Leadership Group (SLG) and identify key HRH policy and management questions It advocates a country-level participatory approach to strengthening HRIS in order to generate ownership of the system among all stakeholders and build capacity within the country to support, use and improve their HRIS. The foundation for the participatory approach is the Stakeholder Leadership Group, in which all producers and consumers of HRH data are represented. Working collaboratively enables stakeholders to exchange data with one anotheroften for the first timeas well as reduces redundant data collection and provides a comprehensive picture of human resources from both the public and private sectors. The SLG model brings all stakeholders together in one room to assess their common needs for an HRIS. Together, they develop the specifications for the system and initiate, lead and
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monitor all HRIS strengthening activities. The result is an HRIS that is appropriate for their context and tailored to their needsa system they designed for themselves. Tools for organizing and managing a SLG:

Establishing the Stakeholder Leadership Group Stakeholder Leadership Group Principles of Operation and Terms of Reference Developing Human Resources Policy and Management Questions.

2)Assess and improve existing systems. Conduct an assessment of existing HRIS and other health management information systems, current information and communication technology infrastructure (e.g., existing networks, Internet connectivity and software) and data already being collected by different ministries, councils and other organizations. Identify gaps that should be addressed by an improved HRIS while making rapid improvements as feasible. After SLG is formed, the first task of the SLG is to assess the systems that are already in place for supporting a strengthened HRIS. This comprehensive assessment should consider not only any existing electronic HR information systems, but also paper-based systems, data collection forms and processes for gathering data about the health workforce. In addition, the information and communications technology (ICT) infrastructure needed to support a software-based HRIS should be considered. The assessment provides a complete picture of how HR information is currently collected, managed and reported; the tools and processes that are in place for managing HR data; and the gaps that need to be addressed to meet the most pressing needs. Often the results are surprising. During the assessment phase, the SLG may discover underused sources of HR information managed by different departments or organizations that can be linked together to immediately improve HRH data access for all. Following the assessment, the SLG typically can recommend rapid improvements to ICT infrastructure to appropriately bring networks, Internet connectivity, hardware, software and even electrical supply up to standards that can support an HRIS. These improvements can generally be implemented quickly and often result in increased efficiency and productivity. In addition to improving the ICT infrastructure, recommendations for improving data collection, training procedures and technical support should be made at this point in the process. Data quality is of primary importance and should be emphasized at every step of the process, from initial data collection to data analysis and interpretation.

Tools for assessing and improving existing systems that support the HRIS:
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Conducting the HRIS Assessment Health Information System and Strengthening Activity Survey HRIS Assessment Questionnaire Data Quality Considerations in Human Resources Information Systems (HRIS) Strengthening

Designing Data Collection Tools and Procedures

Sample Health Employee Data Collection Forms (printable format and Microsoft Excel format for electronic use).

3)Develop software solutions. After the SLG agrees on key health workforce questions and necessary system improvements, customize HRIS software solutions to meet identified needs. The agreed-upon solution could either be a step solution or a mature system, but it should incorporate existing systems, tools and processes as much as possible to lower costs and speed up implementation. Once the infrastructure can support an HRIS, the next step is to develop HRIS solutions that are customized for the country context and answer the key HR policy and management questions for that country. These solutions may consist of interim, or "step," solutions that build on tools and processes already in use or, if appropriate, one or more of the mature solutions. A "step" solution is most appropriate for contexts that do not yet have the resources or infrastructure to support a complete and mature HRIS. The step solution uses and improves existing tools, systems and processes to quickly start collecting and using HR data while progressing in manageable steps toward a more complete HRIS. iHRIS (integrated human resources information system) Suite comprises three core software solutions to address the most critical health workforce planning and management issues:

iHRIS Qualify: a health professional certification and licensure system iHRIS Manage: a human resources management system iHRIS Plan: workforce planning and modeling software.

Working together in a country setting, these three systems provide a powerful feedback loop for analyzing, planning and managing workforce resources and needs. Each of the three systems may also be deployed independently or integrated with software products already in place to provide a customized, contextual solution, filling in any gaps that existing systems may have left. Distributed as Open Source code, all three products can be downloaded, used and modified with no licensing fee. Tools for developing HRIS software solutions and deploying the iHRIS Suite:
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Use Case Development Tool Case Study: Developing an HRIS Step Solution Brief Guides to the iHRIS Software Suite, iHRIS Qualify, iHRIS Manage and iHRIS Plan

iHRIS software suite and accompanying technical documentation

4)Use data to make decisions. Once the improved HRIS begins producing reports of HRH information, pay attention to how data are actually used for decision-making. Provide training and support to managers and decision-makers in their efforts to effectively use and analyze the data that the HRIS provides. The primary aim of any HRIS should be to promote better use of data to drive effective decision-making for addressing daily challenges and positively impacting HR policies and practice. Even when policy-makers and other key stakeholders have access to extensive information about the health workforce, it may be difficult to see uses for these data beyond the usual reports previously generated with paper records. All stakeholders should be engaged in understanding how they use data, both individually and organizationally, and what factors are important in their context for using data effectively. This step of the process focuses on providing opportunities for stakeholders to experience critical decision-making scenarios so they can develop their skills using real data in real-life situations. Stakeholders will understand different models for projecting health workforce needs into the future as the basis for strategic planning. At this point, it is often helpful to improve communication among users of data and leverage opportunities for improved datasharing across different levels of the organization and with other stakeholders. Tools for improving the use of data to make decisions:

Building the Bridge from Human Resources Data to Effective Decisions: Ten Pillars of Successful Data-Driven Decision-Making

An Overview of Human Resources for Health (HRH) Projection Models Creating a Data-Sharing Agreement.

5)Ensure sustainability. Throughout the process, emphasize sustainability and continuous

improvement of the HRIS through training and building capacity to support, use and improve the system into the future.
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An information system requires ongoing support and improvement to ensure maximum utility and sustainability. Depending on the context and needs of the country, sustainability strategies include continuous collection of feedback from stakeholders about changing data needs and rolling out improvements that align with those needs. The early involvement of stakeholders with the design and eventual implementation of the HRIS encourages their sense of ownership. Skills development is necessary for maintaining and improving computerized information systems. This step of the HRIS strengthening process should include ongoing training of data collectors, information system support staff and data managers to support and improve technology infrastructure, data quality and integrity. Linking disparate systems often results in improved data use and quality. A sustainability strategy could also include developing regional user communities to facilitate problem solving and share system improvements, possibly in collaboration with local educational institutions. Tools for ensuring sustainability and continuous improvement of the HRIS:

HRIS Performance Monitoring Plan Case Study: Integrating HR Information Systems Resources for Implementing HRIS Strengthening.

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CHP 5: Case Studies

1) University Research Facility Uses HR Source HRIS to budget and allocate Grant Money The problem: A major US university that receives numerous research grants needed a tool to budget and allocate salaries from various grants. To further complicate the matter, a research scientist may split his or her time among multiple grants; and, furthermore, some scientists only worked part-time. The solution: Utilizing the flexibility of Auxillium West's HRSource HRIS, a grant table was added to track each grant, the project start date, end date, review date, budget, and other fields. The review date provided a tickler for mid-project review of the budget burn rate. It also tracked multiple projects per employee and the percent of time worked on each project. HRSource HRIS compared the percent of time on each project with the total time worked to help check the integrity of the data.With the help of HRSource HRIS, the user can now track which individuals are assigned to which grant, how much has been spent, how much remains, and what the burn rate is. Additionally, the client can determine when employees will complete a project and be available for the next project.

2)Retail Chain Uses HRSource HRIS to manage HR data in a multi-location environment The problem: A large retail chain needed to disseminate HR information to different groups within the company. The information ranged from company-wide data to group-specific data. The data needed to be current and available continuously to designated managers both in the corporate office and at remote sites.

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The solution: HRSource was set up in a centrally located server where the HRSource administrator maintains the company-wide data. Security was set such that only the designated recipient of the information and the HRSource administrator had permission to access specific groups of data. Utilizing the HRSource Auto Alert function, the information is refreshed automatically, thereby simplifying HR's administrative task.

3)HRnetSource HRIS uses the best of both worlds: web-based ESS/MSS and corporate data housed internally for maximum security and control The problem: A new Internet software company wanted HR data (such as the Employee Handbook, benefits descriptions, and the office directory) to be available online, 24/7 for all its employees who were located in different states. The company also wanted employees and managers to take responsibility for updating their own personal data. The solution needed to be clean and simple, easy to implement, and, for a small company with a limited budget, it needed to be affordable. The solution: Auxillium West's HRnetSource uses a powerful web tool to enable employee and manager self-service. With the click of a button, the company's HR department synchronizes the web data with HRSource (the database component of HRnetSource). Because HRSource is built on Microsoft Access, it is cost-effective, easy to use, powerful, and requires little training. The client feels more secure with its HR data stored locally, and exercises full control over its HRIS.

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4)HRnetSource supports divisions having unique HR policies and benefits The problem: A manufacturing company needed to transform its many years old HR information system to a distributed self-service system. The challenge? Each location had a different set of policies and benefits. The solution: With HRnetSource, the system recognizes an employee's location upon login and only provides access to the appropriate employee handbook, policies, forms, etc. Employees in each location are able to securely and efficiently update their own personal data. The HRSource database/HRIS administrator receives and maintains this data at the corporate site.

5) Consulting Company Expands its HRIS functionality by adding self-service Training Administration The problem: A consulting company offered an extensive training program for its employees. It needed a system to effectively communicate course offerings and to simplify the enrollment process and administration of the training program. The company wanted employees to have access to training information such as, which training courses were available at different locations, and when they were being offered. It also wanted employees to be able to enroll online.

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The solution: Auxillium West created a customized web-based training module that streamlined the client's entire Training Administration process from the announcement of courses, to online enrollment, to tracking completed courses. This module was added to the core HRIS, which had been widely used by the HR staff and the employees.

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CHP 6: Importance of HRIS

Organizations must look for ways to manage their internal processes efficiently while preserving the integrity of each practice. In human resources, this involves many transactions affecting people, including the benefits they receive and the ways they are treated by the organization. Tracking HR activities through a human resources information system is efficient and effective for many business organizations. For the owner, it's usually a matter of which system is affordable and suited to the organization's needs. 1) Identify Manpower Requirements In the most basic sense, an HR information system organizes information about every job in your organization. This information might include details such as who is currently in the position, what she is paid and what her job responsibilities, training needs and assigned benefits are. You can use reports about groups of positions or your entire workforce to determine your manpower requirements. To increase production on the factory floor, for example, you must ensure there are enough employees to staff the expansion to your schedule. With a computerized system, you can study the impact of expansion, such as how much it will cost to add the employees that will be needed. 2) Identifying Resources When you must make decisions such as how much manpower will be required, you want to determine quickly what resources are already at your disposal. Using an HRIS, you can make better decisions. Instead of jumping immediately to a plan to recruit and train new employees for factory production expansion, you could pull a report from the HRIS, identifying employees who have skills and training required to be promoted to the new positions. Then, you can recruit less-skilled workers to replace them. 3) Compliance In most firms, there is a critical need to manage how employees are treated, especially to comply with the requirements of Title VII of the Civil Rights Law of 1964 and other laws such as the Americans with Disabilities Act. This is easier when you have all the ways that applicants and employees are handled and their data, from their application to their termination, in one powerful information system. For example, an HR manager could pull a
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report about the diversity of the organization, including percentages of employees in each occupation by their race, gender or national origin. This report would help to show whether the business is complying with Equal Employment Opportunity regulations. 4) Meeting Training Needs An HRIS system can help employers manage training needs, allowing them to complete mandated and optional training. For example, in the HRIS, an employee might go into a description of available training courses and request courses for her personal learning. When that training becomes available, the HRIS notifies her so she can register and complete the training. In this kind of model, the HRIS helps the organization to automatically manage the fulfillment of many training needs. Also, when employees are ready to apply for a promotion, they may already have much of the training they need because they have taken it in anticipation of promotion.

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CHP 7: Disadvantages of HRIS

1) Cost: Some of the mature and the developed ones are costly. The product itself costs quite a bit. Added to this, are the costs of consultation for implementation - studying the as-is status, identifying the gaps and making the necessary changes. 2) Time drawn: Implementation takes a lot of time. Often the implementation overruns the deadlines. Then there are changes in the implementation team in the interim leading to further delays. 3) Infrastructure: They require the appropriate hardware and maintenance of the hardware. Procurement of the hardware goes through its process of approvals and sanctions. Then it requires the support of the infrastructure or the systems admin function to ensure the maintenance. The three factors above together contribute to organizations not implementing HRIS itself. First, they vet the different systems available. Each one has its advantages and disadvantages. Second, given the cost and time one feels uncomfortable in choosing one amongst the so many systems -what would happen if we make the wrong choice and the system does not take off after having spent so much. But apart from the above operational issues there are more critical yet subtle issues. 4) Where is the value? HRIS can be split into four parts - employee information, compensation & benefits, recruitment and the development parts (including the appraisals, training etc.). Evaluation needs to be done on one, the information flow and the intelligence or improvements that the systems may enable. Typically the first part i.e. information processing and flow works well for all the four HR sub systems. The workflows, rules, security, forms, UI, reports ensure that they work well. All the stakeholders get the information they want, approvals are handled correctly and controls are maintained. But then this is one part of the system. The other is the the core engine on which these work and what the core engine is supposed to do and how it does this. Take the case of compensation and benefits.
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The core engine includes combination of statutory requirements (social security, tax deductions, contributions) and corporate rules (who should be paid how much, which component needs to be made how much). This core engine has the logic and provides the structure on which the compensation and benefits are calculated, governed and administered. Because of this (mostly) well laid out structure and logic the implementation of compensation and benefits systems are easier to implement and results easy to perceive. Expectations of the employee information and the recruitment system are mostly from the perspective of information flow. There is not much of intelligence - logic based processing expected or needed. Now the the development parts of the HRIS which include the performance appraisal, training etc. are trickier. They can add value only if they are able to contribute to development of the employees. Development of the employees can happen only if the system enable two aspects of any development - diagnosis and prescription. Diagnosis of one's potential, one's capabilities, one's performance. Prescription for what one's needs to do to develop one's capabilities, how the person can go about it, enabling and guiding the individual in this respect. The development part of the IS fails because of this very reason - it is unable to play an effective role in the development by way of enabling diagnosis and prescription. The reason for this is because there are no standard rules (compare with the income tax rules). And when there are no rules there is no logic and when there is no logic no information system can be effective and so the IS fails as a development tool. 5) Complexity: When it comes to the development part of the system jargons are thrown in, different behaviour from what is normally followed is expected, sometimes it is too analytical and sometimes too "MBA" type. Essentially, simplicity is lost - simplicity which connects with every employee at every level. And so the natural resistance creeps in making the IS ineffective. For all these reasons the "development" parts of HRIS do not take off. BUT there is a desperate need for such a development system. Every organization and organization management and leadership desire to have a healthy development system in place. If we were to do that then we would need to set some rules for the development. We would need rules on
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profiling skills, proficiencies, roles, linkage between skills and roles, career development etc. 3D Talent Development System from attempts to address the issues mentioned above and create a system which helps employers take their human capital to a higher level.

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CHP 8: Five Trends to Watch

HR technology has already been instrumental in transforming the field of HR, and changes on the horizon have the potential for an even greater impact in the future. Some of the most important tech trends to follow are listed below.

1) Growth of social networking. One of the next challenges for HR executives is learning to integrate information from social networking sites. Potential benefits exist alongside problems of privacy and data accuracy. Challenges are evolving as new legislation and applications develop. German politicians have already proposed to outlaw the use of social networking information in employment decision-making.

2) Expansion of compliance and reporting requirements. Organizations will increasingly need to adapt their HRIS in order to remain compliant with state and federal requirements. Pending changes in tax codes, financial reports, EEO compliance and health care all suggest that that compliance and reporting demands will increase. For example, the new Patient Protection and Affordable Care Act will significantly increase the amount of corporate reporting required by the federal government. It is hard to imagine organizations without strong HRIS effectively navigating this new environment.

3)More renting, less buying of services. The use of hosted approaches, in which organizations rent services and software from vendors, is booming. The growth of the Internet and web-based systems has enabled organizations to consider approaches such as cloud computing and software-as-a-service (SaaS). Such approaches can provide benefits, especially for smaller organizations that would like to access the capabilities of complex HR systems but are unable to afford a large system. Cloud computing and SaaS are likely to grow in market share and will provide added flexibility to organizations HRIS strategies.

4) Greater use of business intelligence (BI) and dashboards. One of the key challenges for HR professionals is how to turn HR data into a form that managers can use to measure HRs contributions to organizational profitability. To address this problem, organizations will begin to use more sophisticated BI applications to analyze the

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large amount of data available through HRIS. HR dashboards, which present high-level, realtime, graphically formatted data to managers, will become an integral part of the human capital management. In addition, firms will adopt more sophisticated web-based workforce analytic tools and will push data farther out to managers. This will enable managers to use the organizations personnel policies and practices to make better employee-related decisions.

5) Increasing HR data transparency, increasing privacy concerns. As noted above, HRIS can make increasing amounts of HR data more accessible to employees, along with more transparent policies and procedures. But with greater transparency come greater concerns about privacy. News reports of data compromises and identity theft surface almost daily, and few entities manage more personal information than employers. As employers make data easier to access, risks of jeopardizing employees privacy increase. Managing this risk is becoming even more complex as HR applications often link to systems outside the organization (e.g., benefits vendors, online job search sites, distance learning providers, etc.).

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CHP 9: Conclusion
In conclusion, it is important to choose the right HRIS. A company that takes the time to invest in an HRIS that fits their goals, objectives, mission, and values, is a company that is investing in its future and in its success. It will be necessary to customize any HRIS to the unique needs of a company so the system will remain flexible and relevant throughout the life of the company or enterprise.

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CHP 10: Bibliography

www.google.com www.hrpayrollsystems.net www.humanresources.about.com

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