Human as well as allotments, deductions, sick leave,

Human resource information systems are software programs that allow HR professionals to store and organize vast amounts of employee information.

These programs should allow management to access information and improve decision making.

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Human Resource Information Systems

There are many types of information systems (referred to as IS) on the market that perform a wide variety of tasks. One category of IS that is specifically designed to help human resource (HR) professionals in the course of their duties is called a human resource information system (HRIS) and is sometimes referred to as human resource management systems.As the owner of Profits, Inc., your job is to oversee all of the operations of your growing company. You want your employees to be organized, so you go to the HR department to see what they are doing. In the HR department, you see people working on many tasks that relate to employee recruiting, hiring, pay and benefits, training, evaluation, and even attendance.

Additionally, you want your management team to have the information necessary to make decisions regarding employees. Profits, Inc. is a service industry, and your chief financial officer informs you that employee costs are the largest expenses that your company faces. As such, your goal is to do all you can to keep employee costs low.

HRIS Definition and Types

Your HR executive suggests that the company invest in an HRIS and explains that there are a number of types of HRIS that are made up by a combination of modules within the system – one module for each major task performed by HR personnel.

One module may be dedicated to helping to receive, scan, email, and organize resumes to help sort through the many applicants that apply for each position within a company. Other modules may help a user to create an organizational chart or plan to find a replacement for personnel who are planning to leave or retire from a company.The major function of the HRIS is to save time by taking repetitive functions and allowing one person to be able to do the work of many. For example, a company that has 1,000 employees, each of whom get paid every two weeks, would need an entire staff of people to compute the amount of taxes such as federal withholding, social security, Medicare, state withholding, as well as allotments, deductions, sick leave, vacation leave, and other factors for each employee. One module in the HRIS can automatically compute payroll information for all of the employees just by putting in the hours worked (for hourly employees) and whether there was any leave taken during the period.You believe that managerial decision making is also a critical factor in choosing the specific type of HRIS.

For example, Profits, Inc. employees are selected to perform particular jobs based on their training. Right now each manager has to either remember the training that each employee has or manually create reports that list each employee’s training. If anyone else needs the information, they might need to go to five or six supervisors in order to get the information, and it may take a few days to do so.

An HRIS could be loaded with the employee training data for many departments and would be able to produce a current training report within a few seconds.

Examples of HRIS Software

One example of HRIS software that tracks all major aspects of employee records from hiring through retirement is called UltiPro HR ; Payroll. Like many other software applications being sold recently, UltiPro is cloud-based.

Cloud-based software means that only some of the files needed are actually placed on the hard drive of the computer, while the rest remain on servers that can be accessed by other Internet-capable computers.Another example of HRIS software is Greenhouse. Greenhouse is not meant to take care of payroll, benefits, time off, and all of those functions like UltiPro. Greenhouse specializes only in the recruiting and hiring process.

Greenhouse will help hiring managers organize notes when reviewing applications, conducting phone interviews, setting up in-person interviews, giving applicants assessments, and preparing job offers to successful applicants.Some HRIS software will attempt to do everything well, while others will only attempt to specialize in one or more related modules. One of the benefits of using software that specializes in one area is that you can choose each one that matches your company’s needs more specifically. However, one drawback to using many different human resource information systems is that they may not all communicate and share information with each other, meaning that it will take time to put information into each system individually.

Additionally, there may be different information input into each system. As the manager, it will be up to you to decide whether a single package or multiple software packages will be the best fit for your particular company.Make your decision wisely and take Profits, Inc. into a successful and profitable future!

Lesson Summary

Human resource information systems (HRIS) provide HR professionals with tools they can use to be more productive in their jobs. There are many functions within HR, such as recruiting, hiring, pay and benefits, training, evaluation, and attendance. Some software packages, such as UltiPro, will include modules in all of these areas, while other HRIS, such as Greenhouse, will specialize in only one module.

Managers within an organization will need to figure out what the most important reasons are for using an HRIS. Some managers want to have a central location for the information so that it can be accessed by all HR personnel and managers. Others will attempt to minimize costs and increase productivity involved in managing HR processes, while some will focus on ensuring that personnel managers have the data and reports they need to make the best decisions possible.


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