| Human Resource Management (HRM) has shifted its | | | | Typically, the people in the firm who interact with the |
| function within Organisations over the last few years. | | | | HRIS are segmented into three groups: (1) HR |
| Its function has grown considerably and has shifted | | | | professionals, (2) managers in functional areas |
| into a more strategic role rather than providing support | | | | (production, marketing, engineering etc.) and (3) |
| for administrative paperwork. There has been a shift | | | | employees (Anderson, 1997).The usages of HRIS have |
| too, in terminology, with the term Strategic Human | | | | increased quite significantly among Organisations of |
| Resource Management (SHRM) becoming more | | | | different sizes due to their enhancing the strategic |
| common. | | | | human resource management role in the company. |
| Dave Ulrich, a well-known HR Guru from the University | | | | Kovach et al., (2002) listed several administrative and |
| of Michigan says that the purpose of the HR function | | | | strategic advantages to using HRIS. Similarly, Beckers |
| is simply twofold: firstly, to improve the organisation's | | | | and Bsat (2002) pointed out at least five reasons why |
| capability, and secondly, to improve individual capability | | | | companies should use HRIS. These are: |
| within the organisation. | | | | 1. Increase competitiveness by improving HR practices |
| To improve Organisation performance and create | | | | 2. Produce a greater number and variety of HR |
| competitive advantage, the HR team must focus on a | | | | operations |
| new set of priorities. These new priorities are more | | | | 3. Shift the focus of HR from the processing of |
| business, and strategic oriented and less geared | | | | transactions to strategic HRM |
| towards traditional HR functions such as staffing, | | | | 4. Make employees part of HRIS, and |
| training, appraisal and compensation. | | | | 5. Reengineer the entire HR function |
| Strategic priorities include team-based job designs, | | | | Despite the fact that it has become quite common |
| flexible workforces, quality improvement practices, | | | | amongst HR practitioners - it is still uncertain whether |
| employee empowerment and incentive compensation. | | | | the Organisation are using their HRIS optimally in terms |
| SHRM was designed to diagnose organisation | | | | of supporting the strategic role of HR. Many |
| strategic needs and plan the development of talent | | | | organisations still use HRIS as a database pool as well |
| which is required to implement a competitive strategy | | | | as to complete basic HR transactional tasks only, and |
| and achieve operational goals (Huselid et al., 1997). | | | | have not yet optimised the actual capability of HRIS. If |
| This strategic role not only adds a valuable dimension | | | | your company is using HRIS, let's assess the benefit of |
| to the HR function, but also changes the competencies | | | | utilizing HRIS by comparing it against the above five |
| that define HR professional and practitioner success. | | | | reasons. Ask yourselves: |
| In response to its new role and responsibilities, HR | | | | - How far is your HR administration supported by |
| professionals need a system that can manage as well | | | | HRIS? |
| as handle the "traditional" HR work. This is where | | | | - Do managers and employees have access to HRIS |
| Human Resource Information System (HRIS) starts to | | | | for transactions, and participate in its use? |
| come in. Human Resource Information Systems (HRIS) | | | | - You might know what metrics you would like to use |
| refers to the systems and processes at the | | | | to measure your HR acitvities ands results. BUT how |
| intersection between human resource management | | | | many of those measures can esaily be tracked |
| (HRM) and information technology ( It merges HRM as | | | | analysed and reported using an HRIS system? |
| a discipline and in particular its basic HR activities and | | | | - Is your company - its employees and managers - |
| processes with the information technology field and | | | | equipped at their places of work, with the technology |
| have been used in HR Departments for many years | | | | to respond to new tools for organisation and people |
| now. It is now expected to drive Human Resource | | | | management purposes? (Online surveys, Performance |
| (HR)'s transition from an administrative and operational | | | | management, Intranet communications, online HRM |
| role to a strategic role. | | | | transactions for benefits, employee data). |
| Many companies now strive to become ‘world | | | | - Is there a need to ‘bring your HR group' up to the |
| class'. The goal is to work and perform in ways that | | | | 21st century, and contribute to the strategic |
| are comparable to the most successful players on the | | | | management of the business? |
| world stage. If we explore the question: "What does | | | | - Are there any similarities between your company's |
| World Class HR mean in practice" we will see two | | | | reasons for considering enhancing HRIS, with the |
| descriptions consistently cited. The first is that World | | | | above five reasons on the use of HRIS? |
| Class HR functions manage their strategic work | | | | - Do you believe that HRIS benefits your company, |
| through the ability to measure what they do, and how | | | | and in what way? |
| they contribute. The second is that World Class HR | | | | In brief HRIS is an enabler and empower for the HR |
| functions consistently utilize technology to enable them | | | | function, and HRIS can provide line managers with a |
| to track, analyse, and report those measures. They | | | | functionality to meet each of their work unit goals and |
| also use technology, HRIS, to enable them to continue | | | | objectives as well as providing data and analysis, |
| to handle the traditional transactional HR work – | | | | especially for performance appraisal and performance |
| which still has to be done! | | | | management of their subordinates. |
| So for companies aspiring to be World Class, Human | | | | Additionally, individual employees can also benefit from |
| Resources Information Systems (HRIS) play an | | | | HRIS. They can interact more flexibly by having an |
| important part in an organisations' HR function. Any | | | | access to the system and conduct a self-service |
| ‘transformation' of HR, or of ‘People | | | | modification process of many benefit options and |
| Management' or of ‘Performance Management' | | | | administration alternative as well as updating their |
| without paying attention to their HRIS capability and | | | | performance and task achievements status in realtime. |
| needs will be unable to (a) handle their strategic role | | | | It is now critical for Organisations who are currently |
| and measure their contribution to the organisation, and | | | | using HRIS to enable its HR managers, line managers |
| (b) run the risk of letting the traditional transactional | | | | and employees in making the most out of available |
| functions of HR administration falls behind, and drag | | | | technology. By enabling HRIS in the Organisation and |
| down the transformation efforts by failing to deliver | | | | leverage the use of technology to support the overall |
| the fundamentals. | | | | strategic responsibilities of HR, it will put your |
| After all, we live, work and play in the information | | | | Organisation in a roadmap towards the best practice |
| technology era. Implementing an effective HRIS keeps | | | | of world-class HR. |
| the HR Department in the right path to deliver more | | | | ---TR2010-- |
| effective and streamlined service to the Organisation. | | | | By: Tewu Rama - Consultant OPUS Management |
| Since the rapid development of technology, software | | | | Indonesia 2010 |
| developers are continuously creating new and | | | | Sources: |
| sophisticated softwares that can help companies | | | | Anderson R. Wayne (1997) "The future of Human |
| execute day-to-day HR administrative tasks as well | | | | Resources: Forging Ahead or Falling Behind in |
| as enabling them to perform fast and effective | | | | Tomorrow's Human Resource Management. |
| recruitment process, performance management, | | | | Huselid, M.A., Jackson, S.E. and Schuler, R.S. (1997) |
| compensation & benefit, etc. | | | | "Technical and strategic human resource management |
| They do this by streamlining workflow processes | | | | effectiveness as determinants of firm performance", |
| through controlled processes, system interfaces and | | | | Academy of Management Journal, Vol. 40, pp. 171-88. |
| database validation. Not only should things flow more | | | | "Human Resource Management System" |
| smoothly, but the big plus for top management and | | | | Kovach, K.A., Hughes, A.A., Fagan, P. and Maggitti, P.G. |
| function management is that HRIS helps to ensure a | | | | (2002), "Administrative and strategic advantages of |
| greater control over any HR management related | | | | HRIS", Employment Relations Today, Vol. 29 No. 2, |
| processes, enabling users to follow through tasks | | | | 43-48. |
| more easily. It lets us set measures for task process | | | | Ulrich, D. (1997) Human Resource Champions: The |
| as well as completion. We can know how far a | | | | Next Agenda for Adding Value and delivering Results. |
| process has gone, before its too late to speed up or | | | | Boston, MA: Harvard Business School Press. p. |
| correct direction. | | | | |