Human Resource Management Information System (HRMIS) may be defined as a computer based Human Resource system using formalized procedures to collect, store, analyze, retrieve, communicate and use data and information from all relevant sources (both internal and external) to enable Managers to make timely and effective decisions for carrying out their managerial functions.
CHARACTERISTICS OF A HRMIS
From the above definition, an MIS would be expected to have the following characteristics:
- Integrated – i.e. having several applications integrated to serve many users
- Computer based –takes advantage of computer technology, power, speed in processing, storage capacity, ease of retrieval, etc.
- Data base MS– A data base or data bank is essential since the data is processed to provide the required information. it employs the process of relational database management system (DBMS) i.e a logically arranged system
- Effective management of data – Includes ensuring the accuracy and integrity of the database. The outputs should be able to withstand a factual test.
- Effective processing of data – i.e should have appropriate checks and controls of input, processing and output. There should be efficient utilization of the hardware and soft ware involved
- Interactive – Capable of creating an interaction between the system and the user while giving instant responses to any ‘ad hoc’ inquiries and queries.
- Satisfying user environment – Machine-people interfaces should be appropriate for tasks involved.
- Adequate flexibility – Should be adaptable and able to meet changing needs of the organization and technology.
- Decision-oriented reporting – Output from the system is designed to facilitate decision making by the recipients of the out put
Data is the term used to describe the basic facts (raw facts) about the activities in an organization
Information is an organization’s resource that needs to be properly managed and consists of processed data .i.e processed data becomes information that can be used for decision-making.
DATA PROCESSING ACTIVITIES WITHIN A PROCESSING CYCLE
These can be summarized as follows:
- Data capture
This involves the capture, collection, recording, , keying in, verification and conveyance of data.
Involves classifying, sorting, computing, summarizing, querying,validation and merging of data (involves a series of backend processes inbuilt in the system)
Involves saving and filing of data in a retrieval system
Involves the compilation of reports and communicating the same to the end user and management for decision making
QUALITIES OF GOOD INFORMATION
- It should be relevantfor the purpose for which it is to be used
- Completeness- the information should be complete for appropriate decision making
- Accurate- the information provided should be factual and accurate to facilitate decision making i.e. it should be reliable
- Timely– information should be availed at an appropriate time. Late information may be of little value in decision making
- Volume- information should not be excessive. It should be just enough for the purpose intended. Information in flow should have an outflow in the form of decisions made otherwise it may bog management/system.
- Clarity- information provided to the decision makers should be clear, precise, un- ambiguous and easy to understand and interpret.
- Economical-the benefit derived from its application must exceed the cost of its production.
USES OF INFORMATION:
- Decision making- where information is available to the decision makers then uncertainty about the decisions made is reduced.what is referred to as an “informed decision”
- Control- information enables the organization to keep a historical perspective of its performance and therefore ease control of processes e.g in auditing.
- Planning- data and the resultant information are critical in the planning process of the organization. Data is the primary ingredient in any planning process.
- Information provides mechanisms for management’s decision-making and therefore supports the management functions of directing, coordinating and organizing.
INFORMATION AS A RESOURCE:
Information is regarded as a resource in an organization owing to the following factors:
- Cost- generating information involves costs in the collection, allocation, compilation, processing and interpretation.
- Like any other resource information can be solde. it generates revenue for the organization. There are organizations that primarily deal with trade in information on a variety of issues/subjects. E.g. Research etc.
- Information can be stored and retrieved on a need basis just like any other resource
- Information needs to be managed like all the other resources. it requires planning, controlling, safe custody etc. etc.
- Decisions made as a result of information generated/research can give the organization a competitive edge over the competition.
It is a system that uses a set of formalized procedures to provide management at all levels with appropriate information based on data from both internal and external sources to enable them make timely and effective decisions.
It can also be described as a system that is used to convert data into information, and then communicate that information in an suitable form to enable managers make timelyand effective decisions for planning, directing and controlling the activities for which they are responsible.
In summary :A Human Resource Management Information System can be explained as a framework of both human and computer based information system that gathers, processes and reports timely, relevant and accurate information to Managers for decision making for various levels of Management.
CHARACTERISTICS OF A MANAGEMENT INFORMATION SYSTEM (MIS)
(Structure of a system)
- MIS consists of different components (sub systems) that are interrelated and independent. The interacting components reach some final state or goal and can therefore be described as goal seekinge. they seek or are programmed to reach a desired objective or goal. The system is viewed as a whole and not as a series of broken down components. (Right from data capture to reporting)
- MIS have inputs (what goes into the system e.g raw materials, data, economic resources etc.), they also have processes which entail transformation of inputs into a meaningful product/output. They also have an outpute the final product which comes out of the system e.g. goods, services, reports, information etc
- MIS also have controls e they possess a mechanism to regulate the performance of the system so as to maintain efficiency and reach the desired optimal objective. e.g audit, budget, QMS standards, etc.controls compare the changes/deviations from the planned outcomes or targets.
- MIS exhibit differentiatione they are all not the same. Different systems have specific tasks e.g Human Resource; accounting; manufacturing etc.
- MIS operate in an environment. i.e all those variables which directly of indirectly interact or affect the system in one way or the other e.g customers, suppliers, economy, competitors/industry etc.
- Systems have boundaries– this is the entity that defines or separates the unit to which the system has influence i.e what separates the one system from the other systems. Each system has its own sphere of influence/operation distinct from others. To remove boundaries networking is done.
Decision Makingis the essence of Management and forms the basic function that managers are paid for. A manager is a problem solver, and the fundamental activity in problem solving is decision-making.
Decision-making is the process of identifying the problem, developing alternativesolutions and choosing and implementing one of them. Decision-making therefore involves the identification of occasions when decisions should be made; Finding possible courses of action (i.e. alternatives); Choosing among the courses of action available; Evaluating past choices that can influence the decision pattern.
- Search for & identify conditions requiring decisions.
- Look for problem or opportunity; define the problem to be solved
- Develop/ evaluate alternatives
- Select and implement the solutions
Check implemented solution against expectations
TYPES OF DECISIONS
- Programmed/structured decisions
- Un-structured/Nonprogrammed decisions
- Semi-structured decisions
- i) A structured decision is one that is made according to specified procedures or rulesg. deciding to send a reminder notice to a customer for an overdue balance. In other words, it is relatively easy to develop a procedure for handling such a situation.
- ii) Are Repetitive and dwell on routine operational matters
These decisions can be delegated to lower-levels in the organisation, for example leave administration, inventory control, stock control, etc.
- Un-structured decisions.
Decisions such as how to advertise a position or market for a new product or how much to spend on a given project are harder to specify or to programme i.e. not procedural. These types of decisions are called unstructured decisions and require a lot of creativity and intuition from the decision maker.
Non-structured decisions are:
- Non-routine and Require creativity & logical intuition of decision makers
- Decision rules are not known and involve a high degree of uncertainty
- Cannot be delegated to lower levelsexamples include- Personnel recruitments &appointments , launching of a new products, , etc.
Semi-structured decisions would involve combination of the two.
These are decisions that are made at the top level of management. They include decisions related to setting the objectives and planning how to achieve these set goals. Decisions at this level include long-term and medium term decision-making and decisions on how to tackle uncertainties in the environment. Organizational effectiveness is the primary concern of the decision makers at this level.
Decision characteristics are therefore unstructured in that no specific formula determines what is needed to make successful decisions in these areas. These top managers have a sense of vision of what is coming and how to move their organizations in response that vision.
The types of information needed at this level include:
- Financial ratios & balance sheets
- Overall profitability
- Cash flows
- Future market prospects
- Demand forecasting
- Levels of capital availability etc.
Information at this level is:
- Derived from both internal and external sources
- Highly summarized
- Relevant for long-term and medium term planning
- Focused on the entire organization
Middle level managers are tactical planners i.e., they determine the best way to get the job done. They must determine what concrete actions to be taken to translate strategic, financial, sales, and production goals into results.
Decisions at this level seek to ensure that resources are obtained and used effectively and efficiently in achieving the set objectives. The decisions here are technical in nature and target productive systems in an organization with the primary aim of increasing efficiency.
The type of information at this level includes:
- Productivity measurement (individual employee appraisal)
- Variance analysis i.e standard deviation from set targets (margins of error provided)
- Cash flow forecasts
- Departmental analysis etc.
Tactical information is:
- Primarily generated from internal sources
- Mainly relevant for short-term decisions
- It is task/activity specific
- Based on quantitative measures (quality control)
- Highly summarized and prepared routinely for checks and balances of systems.
Decisions at this level involve ensuring that specific tasks are carried out proficiently. It focuses on individual tasks and activities which are carried out within strictly defined guidelines.
Decisions at this level are relatively simple, repetitive and structured, i.e., they are made according to specified rules. An example is transactions derived from operations and clerical activities. Decisions here are judgmental/common sense in nature.
Information at this level is:
- Entirely generated from internal sources
- Mainly relevant for immediate and short-term decisions
- It is task/activity specific
- Mainly quantitative and highly detailed (i.e narrows to specific actions)
- Based on quantitative measures (quality control)
- Highly summarized and prepared frequently for checks and balances of systems.
TYPES OF INFORMATION SYSTEMS
- Transaction processing systems-a computerized system that performs daily/routine activities for business operations at the lowest levels of management e.g calculator, sales order generator, payroll items, stock records. This system provides the raw material for the management information system (MIS)
- Management Information Systems (MIS)-used to provide management at all levels with information for decision making
- Decision Support Systems (DSS)- these are systems that assist in the evaluation of a problem to arrive at a decision and alternatives. Mainly used in production systems and employ probability ratios to arrive at logical conclusions to assist managers.
They overlay both data processing systems (DBMS,spreadsheets ,office tools. Visual graphic interface,) and office support systems and acquire their basic data from routine transaction processing DSSs are quite useful for semi-structured problems where problem solving is improved by interaction between the manager and the computer system. They emphasise on small, simple models (specific packages) which can be easily understood and used by the manager.-(e.g lotus smartsuite, Msoffice ,AutoCAD,prokon)
- Artificial Intelligence Systems (AIS)/ Expert Systems (E.S). These are computer-based
systems that are programmed to think logically and run operations independently (they don’t just warn, they take desired action and report with little human intervention.)
An ES can assist the second (design) phase of the decision making process by suggesting alternative scenarios for “what if” evaluation.
An ES can assist humans in the selection of an appropriate model for the decision problem. This is an avenue for an automatic model management; the user of such a system would need less knowledge about models. ES can act as tutors.
- Executive Information Systems (EIS)
These are systems designed specifically for providing direct support for top managers the top management.
The features of EIS are access to a large variety of external and internal data, presentation of information with colourful graphics, the ability to “narrow down” on more detailed data and the ability to control the system in a very easy way. They help an executive to spot a problem, opportunity or trend. Managers browse for information without much assistance e.gMs-projects red flags
HUMAN RESOURCE REQUIREMENTS
Today’s Human Resource requirements are based upon the growing need for organization’s to clearly identify organization and business needs and harness these to a clear set of objectives for the employees to understand and carry out successfully.
Human Resource departments have been compelled to embrace emerging trends of data management compared to the traditional systems of record keeping. There is prominent use of computer-based systems both in records keeping and data processing.
COMPONENTS OF A HUMAN RESOURCE MANAGEMENT SYSTEM
A Human Resource management system would incorporate the following components:
a) Personal data
Personal data should include the following:
- Name, address and telephone number (if available)
- Personal employment number; also known as clock or company number
- Date of birth
- Marital status
- Disability registration number (if any)
b) Company / Employer data
- Date of joining the company / date hired
- Past and present departments and dates of inter-departmental transfers
- Records of absence from duty
- Accident records
- Wage/salary progression record
- Hours of work
- Holiday and leave entitlement
- Retirement date and pension scheme membership as provided by the scheme trustees
- Disciplinary record
c) Qualifications and skills
- Academic qualifications
- Professional qualifications
- Qualifications held before and after joining the company
- Performance appraisal results
d) On exit from the company
- Date of leaving and reason
- Name of new employer (if known)
- Suitability for re-employment
Payroll processing will also be integrated in the system
PROBLEMS WHICH MAY BE ENCOUNTERED WHEN IMPLEMENTING COMPUTER BASED SYSTEM:
- Resistance to change
- Lack of skilled manpower
- High installation costs
- Productivity may decline as people adjust to new system
- Errors in system if not properly tested
- Transcription errors during data conversion (GIGO garbage in garbage out)
- It’s very tedious to do data conversion and verification
FACTORS THAT MAKE ORGANISATIONS CHANGE FROM ONE SYSTEM TO ANOTHER
- Due to increased work load (old system not able to cope with the work load).
- Due to technology change.
- If the current system cannot meet the demand of an organization (limitation of existing causing dissatisfaction).
- To cut short the expenses. (If old current system is not economical to operate).
- In order to improve the security of the system.
- If an organization change her objective or goal
- If the current system is error prone and doesn’t have proper controls.
- Government legislation
- Change in customer taste / preference
- In order to have competitive advantage