UGC NET Study Notes on Human Resource Information System

By BYJU'S Exam Prep

Updated on: September 14th, 2023

1. Introduction to Human Resource Information System (HRIS)

  • A Human Resource Information System is a system that assists to keep data of all the employees and details about them, which is done through a series of inter-related databases.
  • HRIS frames a connection between human resource management and information technology and provides software actions, operations and procedure to administer employees.
  • It combines the activities related to human resource management and information technology into a database by using ERP software.
  • Sage ABRA HRMS, PeopleSoft, Oracle E-Business Suite HRM, and UltiPro HR are some of the most used software; these uphold and provide long-term growth strategies.
  • Walker (1982) described HRIS as a systematic procedure for collecting, storing, maintaining, retrieving, and validating data needed by an organization about its human resources, personnel activities, and organization unit characteristics.
  • HRIS is a system of collecting, allocating, transforming, reporting and disassembling the information and record needed for productive and potent management of human resources in an organization system.
  • It is a system which collects, stocks, shapes, evaluates and distributes essential information about an organisation’s human capital.
  • HRIS has three components:
    • Input: It includes entering data into HRIS. This function determines by whom, when, in what format, and from what sources data is collected.
    • Storage: It involves accumulating data in files and updating data timely to keep it advanced.
    • Output: Output may appear in the form of hard copy or soft copy, directly significant to users, which should be understandable and relevant to the users.

2. Importance Of HRIS

  • Organizations where there is a huge number of human capital, it is necessary and mandatory to maintain employee databases for recording human resource issues.
  • The diverse organisations in the geographical spread area require well-timed and detailed information for human capital management, to save cost and inaccuracy.
  • HRIS is a centrally stored database that helps in making timely decisions, as compensation packages in the modern world are complex.
  • Organizations have to comply with various laws of the land. HRIS is a computerized information system through which accumulation and recovery of data are quick and accurate. The organisation, with the help of it, can comply with statutory requirements and laws easily.
  • As it enables computerization of human resource information systems, employees’ information records can be combined and recaptured for cross-referencing and forecasting.
  • In HRIS, as data is stored at a single particular place, it allows time-efficiency, employee development, and performance improvement.
  • Progressive companies have initiated computerized information systems to provide support in collective bargaining, orientation, training and development, performance appraisal
  • HRIS can also be used in almost all the operations of human resource management.
  • Along with facilitating the functioning of the HR department, it aids in developing communication of the HR department with other departments of the organisation.

3. Objectives of HRIS

  • To provide recruitment information, including advertisement, applicants information, job specification and placement data.
  • To supply personal administration information, including employee concerning leaves, transfer, promotion, increment in pay etc.
  • To offer employees planning information, including manpower mobilization, career and succession planning and skill development plans.
  • Offer training information, which includes designing course material for upcoming training and appraising the training programme etc.
  • Provide health information, consisting of information about health, safety and welfare of human resources.
  • Provide appraisal information that is required for promotion, career development and succession planning.
  • Payroll information which includes data related to compensation plans such as wages, basic salaries, incentives, rent allowances, fringe benefits, provident funds etc.
  • To provide Personnel research information, data about employees’ productivity, turnover, absenteeism used further for different types of analysis.
  • To offer a competent, comprehensive and open-ended information system about human capital and activities.
  • To offer knowledgeable information at a feasible cost.
  • To supply data security (related to technical problems)and personnel privacy (ethical and moral issues).

4. Functions/ Roles of HRIS

  • Strategic HR management- HRIS looks after strategic planning, its appropriate implementation of actions, and controls of outcomes. HRIS also helps in scanning internal and external environments for detecting opportunities and threats and provides information regarding HR quality and productivity improvements.
  • Workforce planning and employment- HRIS provide the information related to recruitment planning, selection, promotions, transfers, compensation and termination rates, which helps to analyze data and make decisions about workforce planning and employment needs. It also allows the workforce in different geographical spread areas to work together. It guides processes through offering tools which are more active and enable online activities.
  • Human resource development- HRIS allows career development of employees by analysing career needs and development of career plans. It offers training programs by analysing competences, searching for training needs and allows access to training substance remotely. It also does an evaluation of employee performance.
  • Employee and labour relation– HRIS looks after employee disciplinary proceedings, records, management of work distribution, analyse work and labour relation indicators and perform attitude, culture, climate, and commitment analysis.
  • Risk management- It includes accident and illness, managing reports, records maintenance, monitoring of high-risk conditions and accidents

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