HRIS: The Strategic Value Mr. Sampath Jayasundara BSc. (Col.), PG Dip.in Comp. Sc. (Col.), MBA (Sri J.) Director/General Manager hSenid Business Solutions (Pvt) Ltd.

HRIS – Human Resource Information System HRIS is a set of inter related components working together to collect, Process, store and distribute information to support HR decision making, coordination and control in an organization.

Importance of HRIS Strategy Competitiveness People HRM HRIS - a part of strategic HR management

People - the biggest competitive advantage Importance of HRM Strategy Competitiveness HRIS ORGANISATION People - the biggest competitive advantage

HRIS - Component of HRM HRM system HR staff HRIS HRM knowledge

Closer look HR staff HRM theory / knowledge HRIS Org Chart Development Retaining Leave Transfer Termination Performance Promotion Selection Benefits Planning Staffing Training Recruitment

HRIS – a strategic partner Human Resource Information Systems (HRIS) Corporate Intranets and Extranets Virtual offices and remote working Internet Emergence of IT industry SaaS (Software as a Service)

Decision-making process Strategic Functional Operational

HRIS Unplugged “Decision making process” Strategic: strategic decision making …………………………………2% Functional: functional decision making …………………………….23% Operational: Operational day-to day tasks ……………………………75% Time allocation F O

Ideally “Decision making processes with HRIS” Strategic: strategic decision making …………………………………2% Functional: functional decision making …………………………….23% Operational: Operational day-to day tasks ……………………………75% Time re - allocation F O

HRIS Plugged Strategic: Functional: Operational: create a comprehensive “ Learning Organization” that enhances the knowledge capital of all the employees Functional: Personal development plans for employees, Individual training plans according to employees training needs, Performance evaluation meetings, etc. + HRIS Operational: maintaining data in the system + using HRIS

Scenario (1) - with(out) HRIS 360° Performance evaluation …without HRIS - Prepare evaluation forms - Print and copy them - Distribute forms to employees - Employees fill in evaluation forms (in 2 copies for archive purposes) - Evaluation forms personally submitted to HR Manager - Re-write results to the computer or file them - Manual processing of data gathered - Prepare result sheets - Print, copy and distribute them to employees - File all the forms for future use

Scenario (1) - with(out) HRIS Define evaluation form 360° Performance evaluation …with HRIS - Define evaluation forms - Online evaluation entry - One-click access to results - History info captured Evaluation reports generated by the system Strategic Decision making process can take place Appraisal form

Scenario (2) - with(out) HRIS Leave application administration …without HRIS - Prepare leave application forms Print and copy them Manually maintain employee attendance information daily Maintain company calendar - Employees applying for leave fills in an application form - Application form personally submitted to Supervisor - Manual check for employee’s leave status history Supervisor’s approval or rejection Application form personally submitted to HR manager Manual update of employee’s personal leave information file

Scenario (2) - with(out) HRIS Leave application administration Leave balance …with HRIS - Define company specific leave admin processes (initially) Online leave application form Online leave Approval/Rejection - History info captured Leave balance reports generated by the system Saves strategic resources Leave application form

Scenario (3) – Intranet new dimension of HRM Employee self-service …with HRIS View/check/modify - online: personal information census information qualifications leave application leave balance leave cancellation leave approval/rejection salary information company calendar appraisal results online appraisal process

HRIS – Implementation HRIS cost-benefit value analysis Getting Management support for HRIS Limitations of computerization of HRIS

HRIS cost-benefit value analysis Cost factors of HRIS System development cost/Software license cost Time investment for system implementation Cost of data migration System implementation consultancy services Hardware cost System maintenance cost

B E N E F I T S Saving time Saving costs Work re-allocation

Saving time [efficiency] B E N E F I T S Saving time [efficiency] Easy data maintenance Administrative processes automated Employee ‘self-service’ (kiosk) Adequate information base that leads to timely and just decision making Responding faster to employee inquiries to enhance efficiency and productivity

Saving costs [efficiency]2 B E N E F I T S Saving costs [efficiency]2 Less time spent on tasks = less money Minimum paperwork Timely and accurate decision making includes less cost

HRIS: The Strategic value Efficiency – cost & time Effectiveness – orientation on the most valuable asset of the organization – PEOPLE => Adding the strategic value to the organization

HRIS: the way to gain competitive advantage PEOPLE, most valuable asset – competitive advantage HRIS – manages PEOPLE efficiently and effectively HRIS – gaining competitive advantage

Work re-allocation [effectiveness] B E N E F I T S Work re-allocation [effectiveness] Helping the employees perform better through effective career planning and performance management Integrating the human resource function with other business functions in the enterprise, to serve personnel better

Getting Management support for HRIS Understand their expectations Getting management involvement Achievement of tangible benefits System usage across organization Target for short wins and celebrate Simplified and unified processes Introduction of best practices through HRIS

Limitations of computerization of HRIS Budget constraints Knowledge gaps Time investment for implementation Synchronization of manual and automated processes Technology limitations Infrastructure facilities Data maintenance/regular updates

Changing HR role with HRIS HR as a Business Function HR as a Business Partner HR as a Strategic Partner

Strategic value

HR as a Business Function At the very least, when an HR function is available in an organization, it is responsible for managing employee data, takes care of payroll, time and attendance and the setting of company policies. The role is largely that of Personnel Administration focused on Compliance both internal & external, and on Management of employee records.

HR as a Business Partner As a Business Partner, the role of HR is to meet the “existing business needs” of the organization so that the organization could grow at a measurable rate. At this stage of evolution, the focus of the HR shifts to competency based Recruitment, Total Compensation, Employee Development, Communication and Organization Design. To facilitate the above functionality, HR uses tools such as Applicant Tracking software for recruitment, Employee Portals for communication, Self Services for employees empowerment, Learning Management Systems for training & development and an Employee Database for capturing employee skills & competency profiles. Organizations even have well defined Job Descriptions with details of qualifications, experience, special skills required for the job and job roles & deliverables for each job position.

HR as a Strategic Partner Organizations that view their HR as a strategic business partner believe in full maturity of their HR function. Such organizations are focused on attaining leadership positions rather than an year-on-year growth. Bottom-line and top-line growth are expected to be achieved automatically. At this level, HR becomes responsible for identifying core competencies necessary for their organization to attain leadership position. Further HR facilitates in Aligning employees to a common sets of objectives derived from the mission and value statements, Mitigation of risk by devising appropriate Succession Planning Strategies, Identification of top-performers and non-performers, Continuous measurement of the effectiveness of leadership and employee satisfaction, Increasing employee engagement through appropriate measures, Aligning compensation to performance, Adjustment of recruitment and training to competency gaps, and specifying well-defined Job Descriptions which map to the organization structure . These become the basis of Recruitment, Goal Setting, Training, Performance Evaluation and Career Development.

HRIS: Key message “By automating Human Resource practices, HRIS saves time and money, effectively re-allocates work processes and thus provides competitive advantage and adds strategic value to the organization.”

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