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7009976

HRM10003 – Essay

Discuss the use of ‘Human Resource Information Management Systems’ in organisations. Describe how HRIMS can be used to enhance organisational performance. Provide examples where appropriate.

Stone defines a human resource information management systems (HRIMS) as a computerised system that collects, stores, evaluates and retrieves information and data in order to produce reports on the management of resources within the organisation, which are not only accurate but timely (Stone 2014). Yu however believes that HRIMS uses information technology to implement human resource management in order to enrich human resource management operations (Yu YH. 2012). As a tool integrating both information technology and human resource management, HRIMS gained popularity in the late 1970’s and early 1980’s where increasing pressure was placed on organisations to adopt new technology which could help process employee information for efficiently and effectively (Thite, Kavanagh and Johnson, 2009). Nankervis et al attain that over the past decade, while organisations all look for competitive advantage, the most powerful influence on organisations to adopt HRMIS was the growth of government legislation (Nankervis et al., 2017). The Society of Human Resource Management (as cited by Rahimzai and Hiraishi 2018) attain that HRMIS supports six essential organisational functions: total rewards, human resource development, workforce planning and development, employee and labour relations, risk management and strategic management (Rahimzai and Hiraishi 2018). HRIMS applications allow employers to register and maintain employee personal records which then flow through to payroll departments, which in turn update an employee’s superannuation scheme, tax department and work cover, ensuring the company meet compliance obligations to regulatory bodies. Commencement dates will be stored to allow for accurate years of service and long service provision calculation as well as other leave provisions such as sick and annual leave. Training can be logged to accurately reflect company investment into an employee as well as ensuring a record is kept of all qualifications and personal development.

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HRM10003 – Essay

Many HRMIS systems are based on and accessed through, an intranet or internet and allow for employee self- service application, thus allowing for direct employee access to personal records, allowing for staff to enter their own leave requirements or update personal details. Ulrich et al, estimate that direct staff access allows employees the ability to answer 60% of their HR questions or undertake HR transactions which in turn result in benefits such as avoiding duplication, improved accuracy of information and a perception of superior service quality as they can access information at their own convenience (Ulrich, Younger and Brockbank, 2008). Company policies, procedures, organisational charts and additional requests such as staff surveys (Nankervis et al,.2017) can be available to staff, reducing the workload for administrative staff allowing them to focus on more strategic tasks. Strategically HRIMS systems allow for more effective workforce planning by managers. By utilising information recorded within the system, managers can provide accurate projections for labour required to complete work forecasted in the future, not only according to budget and the work that is needed to be done but whether the staff currently available have the necessary skills to complete upcoming projects or whether staff with specific skillsets need to be procured. HRIMS systems may also allow for trends to analysed to ensure staffing numbers in industries such as retail are adequate for specific times of the year, such as Christmas. Analysis such as this can reduce excess staffing costs during “low” seasons and adequate training to be performed in the lead up to “peak” periods. Considered a traditional HR activity, Thite cites that activities such as planning, forecasting, recruiting and training make up 15-30% of average of time spent by HR practitioners (Thite, Kavanagh and Johnson, 2009). By having an effective and efficient HRIMS system, managers are able to spend greater time on transformational activities such as strategic redirection, increases to innovation and cultural or organisational change (Thite, Kavanagh and Johnson, 2009). Vărzaru and Vărzaru attain that an imperative issue relating to strategic human resource management consists of adopting and employing business performance measures to align responsibility and accountability of employees with the goals and strategic direction of the company itself (Vărzaru and Vărzaru, 2016). This is often done through performance management and HRIMS systems can assist with this strategic task by aligning individual performance objectives to company KPI’s and 2

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HRM10003 – Essay

allowing managers to utilise employees effectively in accordance with their abilities, prior experience and motivation levels to achieve maximum output, optimising abilities and competencies meanwhile facilitating career goals and aspirations. HRIMS data can hold data surrounding career paths and succession plans, promotions and training received as well as record of all past performance appraisals for future comparison. The system also may facilitate payroll calculations and adjustments which may come as a result of meeting performance measures. HRMIS systems can also assist the facilitation of organisation strategic objectives of benchmarking human resource strategies in areas such as retention, cultural change and reward management against competitors (Nankervis et al,.2017). From a strategic standpoint, organisations as a general observation, look for ways to reduce costs. Yu cites that HRMIS systems can improve organisational competitiveness through efficiency of human resource management and reduce HRM costs by 30% on average, whilst Zahari et al attain that the inputs that are provided from HRIMS systems allow organisations to make decisions and implement new processes which allow effectiveness, producing cost benefits for the organisation (Zahari et al., 2018). Improved planning, streamlining of duties and reduced administrative tasks via outsourcing back to employees via self-service options all allow for reductions of costs which can assist organisations to meet financial strategic goals. Throughout the decades, HRIMS has become far more than just a computerised system that collects, stores, evaluates and retrieves information and data. Rapidly changing technology has provided benefits to organisations, not only from an administrative and cost reduction perspective, but from a strategic viewpoint. Human resource managers are now able to utilise technology so to relinquish their role as the primary owner of HR information, enabling employees and management to utilise information to solve their own problems and to create accurate reporting for greater organisational efficiency and effectiveness. Ultimately it is this efficiency that in turn, allows HR managers to take a greater role in the overall strategic direction of the organisation itself.

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HRM10003 – Essay

References

Nankervis, A., Baird, M., Coffey, J. and Shields, J. (2017). Human Resource Management. 9th ed. Melbourne: Cengage Learning Australia. Rahimzai, H. and Hiraishi, T. (2018). The impact of human resource management information systems (HRIMS) and itscore modulesin the government of Afghanistan: A case study of Malaysia, Kenya and Georgia. International Journal of Advances in Electronics and Computer Science, 5(3). Stone, R. 2014, Human Resource Management, 8 ed, John Wiley & Sons, Milton, Qld Australia, p96 Thite, M., Kavanagh, M. and Johnson, R. (2009). Evolution of human resource management and human resource information systems. Human resource information systems. [online] Available at: https://www.academia.edu/download/38322126/EVOLUTION.pdf [Accessed 5 Sep. 2018]. Ulrich, D., Younger, J. and Brockbank, W. (2008). The twenty‐first‐century HR organization. Human Resource Management, Vol.47(4), pp.829-850. Vărzaru, D. and Vărzaru, A. (2016). The Contribution of the Human Resources Information System to Human Capital Performance Management within the Organization. Ovidius University Annals: Economic Sciences Series, [online] 16(1), pp.429-434. Yu YH. (2012) The Influence of Human Resource Management Information System on Human Resource Management. In: Xie A., Huang X. (eds) Advances in Computer Science and Education. Advances in Intelligent and Soft Computing , vol 140. Springer, Berlin, Heidelberg Zahari, A., Harun, M., Hamzah, S. and Salleh, S. (2018). The influence of Human Resource Management Information System (HRMIS) Application towards Employees Efficiency and Satisfaction. Journal of Physics: Conference Series, 1019, p.012077.

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