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A Human Resource Information System

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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. Virtually all such systems were based on mainframe computers and required
extensive support from information systems professionals. Thus, human resource
managers had little opportunity to design sophisticated reports and computer-based
analytical tools to aid in managerial decision making. In general, uses of computers in
HRM fell into the category of electronic data processing applications, which generally
involve the automation of relatively routine tasks (e.g., calculating pay and printing
checks).

A number of trends seem to have contributed to a growing reliance on computers as


information-processing and decision-aiding tools in HRM. The emergence of the human
resource management field (versus personnel administration) gave the human resource
function greater credibility within the managerial hierarchy, necessitating more
sophisticated use of information, especially as it related to the strategic management
function. Firms have experienced increased competitive pressures that have translated
into greater cost containment demands from upper management, leading to greater
automation of the record-keeping function in the HRM field. The ready availability of
microcomputers and relatively userfriendly software means, that to an increasing extent,
human resource managers are no longer dependent on information system professionals
to develop and implement applications (which might be assigned a lower priority than
other management functions). Many HRM departments in larger organizations have also
developed internal information system capabilities, so that HRIS units have been
established.

Another important factor has been the development of numerous HRIS products by
external vendors. There are several full-featured, human resource-dedicated database
management systems available, both for mainframe and micro platforms. Perhaps the
best known of these is PeopleSoft, although numerous other such products exist. Many of
these utilize client-server architectures, where databases reside on a central server and are
accessed from individual workstations, connected to a network, via local client
applications. There is also a trend toward enterprise-wide applications that integrate
information system applications for various managerial functions (e.g., marketing,
finance, human resources), which facilitates communication across functional areas,
economizes on information system development at the enterprise level, and allows firms
to collate information from multiple sources to facilitate strategic planning at the business
unit and corporate levels. Examples of commonly used integrated systems that include
HRIS modules are SAP and Oracle.

Specialized applications, intended to supplement HRISs, are also widely available. These
include modules to aid in such areas as succession planning, benefits administration,
applicant tracking, job evaluation, employee performance evaluation, grievance handling,
and labor relations. These products, coupled with declining costs of computer systems
(especially microcomputer systems) and the increasing user-friendliness of computer
applications, have meant that the use of HRISs is increasingly attractive to practitioners.

As a result of the rapid change in computer and software technology, HRIS-related


products are constantly upgrading and changing. Advanced Personnel Systems, a
California-based HRIS consulting firm, markets a fairly up-to-date database listing a
wide-range of HRISs and supplementary programs—along with descriptions of the
capabilities of these systems—to guide managers in selecting appropriate products. There
are also several conferences and shows held annually around the United States that are
dedicated to advances in HRM-related information technology applications, including
HRISs. HRIS vendors often demonstrate products at such shows. Leading practitioner-
oriented magazines, such as HRMagazine (published by the Society of Human Resource
Management), review new products and carry articles highlighting changes in the field.
And not surprisingly, a number of web sites document HRIS resources on the Internet. A
comprehensive listing of major HRIS sites can be obtained through the "Software and
Technology" section of Workindex.com, a comprehensive index of Internet resources
related to human resource management.

Perhaps the most significant development in the HRIS area currently is the growing use
of organizational intranets as a means of managing many aspects of a firm's HRIS. An
intranet is an internal network that makes use of World Wide Web technology (browsers,
servers, etc.) to gather and disseminate information within the firm. Intranets may be
linked to the external Internet, but are usually secured in a variety of ways so that only
authorized users can access the information on the internal components. While it is quite
easy to generate static extracts of HRIS data tables, queries, forms, and reports for
posting on an intranet, it is also quite feasible to establish live links between an intranet
and a firm's HRIS. This allows real-time collection and display of information. Thus
employees can complete forms online that enroll them in benefits programs, allow them
to bid on job openings, let them submit suggestions, and facilitate filing of various
claims. In addition, intranet displays can be tailored to the needs of specific users. The
user may check on the current status of his or her fringe benefits, vacation time, training
program enrollment, or pension fund. Intranets obviously require extensive security
measures to prevent inappropriate changing or accessing of data. The issues seem to have
been addressed, however, and HRIS products are increasingly emphasizing their
functionality in intranet environments.

Another variant is the extranet. Again, relying on World Wide Web technology, such
systems allow organizations to interact with clients in a secure environment that mimics
the Internet. Thus a health insurance company might establish an extranet that links to the
intranets of its major clients. Employees in client organizations can then connect to the
insurance vendor's extranet from within the employer's intranet environment in order to
check on the status of their policies, obtain coverage information, file claims, and follow-
up on outstanding claims.

All indications are that HRISs will continue to play an increasingly important role in the
HRM field. An important driving factor is that HRISs facilitate process reengineering in
the HRM area, thus promoting greater efficiency. Functions that once were carried out
manually and in many steps can often be largely automated. And the business firm's
continuing demand for information to facilitate planning and strategy formulation will
necessitate further reliance on HRISs. Finally, the linking of HRISs to organizational
intranets is apt to gain in popularity as a relatively inexpensive and appealing means of
gathering and distributing human resource information.

[John J. Lawler]

FURTHER READING:

Ceriello, Vincent, with C. Freeman. Human Resource Management Systems: Strategies,


Tactics, and Techniques. Lexington, MA: Lexington Books, 1991.

Frantzreb, R. B. The Personnel Software Census. Roseville, CA: Advanced Personnel


Systems, 1993.

Greengard, Samuel. "Extranets: Linking Employees with Your Vendors." Workforce 76,
no. 11 (November 1997): 28-34.

Holtz, Shel. "Strategizing a Human Resources Presence on the Intranet." Compensation


and Benefits Management 13, no. 4 (autumn 1997): 31-37.

Lawler, John J. "Computer-Mediated Information Processing and Decision Making in


Human Resource Management." In Research in Personnel and Human Resources
Management, vol. 10, edited by G. R. Ferris and K. M. Rowland. Greenwich, CT: JAI
Press, 1992, 301-45.

Walker, Alfred. Handbook of Human Resource Information Systems: Reshaping the


Human Resource Function with Technology. New York: McGraw-Hill, 1993.

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