Significance of Human Resource Information Systems

Human resource information system refers to the systematic way of storing data and information for each individual employee that aids in planning, decision-making, and submitting of returns and reports to external agencies. To be precise, it is the process by which an organization collects, analyses and reports information about individuals and work in general.

Subsystems of a HRIS Model

The subsystems of a HRIS model are highlighted below

Figure 1: The Subsystems of a HRIS Model

Benefits of HRIS Model

While the general notion of a HRIS model goes that generally it helps small business managers to develop a suitable human resource system based on the size of their business. However, it is needless to say that HRIS model has several advantages. What are these? Here’s a look:

§ Organizational Effectiveness

Positive impact on the organizational effectiveness is one of the most significant benefits of HRIS model. A good HRIS model brings consistency in human resources management within an organization and improves human relations within the organization to a great extent. An effective HRIS model focuses on planned objectives and works by improving employee skills, knowledge, motivation, and contribution opportunities. Depending upon their objectives, human resource information systems contribute greatly towards organizational effectiveness in several ways.

§ Commitment towards Employees

A HRIS that is focused on employee commitment will recruit carefully and selectively, provide employees with proper training and of course offer a high compensation package. For example, a local medical shop wants to hire people for taking care of the elderly. So, they will not only look for people who are compassionate but also train them accordingly, so that they are able to execute their task to perfection.

§ Empowerment of Employees

Empowerment of employees is another major benefit of a properly structured HRIS. A structured HRIS will involve employees into several activities and encourage them to take part. This will create a sense of belongingness for the employees and they will eventually end up contributing more towards the organization.

§ Occupational Safety

Occupational fatalities can have a huge impact on employees’ morale. Such incidents can also have a jeopardizing impact. On the other hand, working towards a HRIS that ensured occupational safety can have long-term benefits. It requires hiring reliable and well-trained people.

The Last Words

Having said all these, one must understand that the HRIS is not completely without its limitations such as cost effectiveness and that computers cannot substitute humans. Nonetheless, if properly structured and strategically implemented, a HRIS can go a long way in benefitting a company.