Summary Revision notes for Human resource information systems

Definition of Information System

An information system is a set of interrelated components that work together to collect,
process, store, and break down information to support decision-making.

Dimensions of Information System

1. Organizational Dimension:
Information systems are part of an organization and incorporate its standard operating
procedures and culture. This includes:
a) Functional specialties
b) Business processes
c) Culture
d) Political interest groups

2. Management Dimension:
Information systems supply tools and information to help managers allocate,
coordinate, and monitor their work, make decisions, create new products and services,
and develop long-term strategies.

3. Technology Dimension:
Information systems use computer hardware/software, data management technology,
and networking/telecom technology to address challenges.

Types of Information System

1. Transaction Processing System (TPS):
Processes data from business transactions, updates records, and generates reports.
Examples include billing systems, payroll systems, and stock control systems.

2. Management Information System (MIS):

Transforms raw data into summarized reports for middle management and supervisors.
Examples include sales management and HR management systems.

3. Decision Support System (DSS):

Interactive systems that assist decision-making in semi-structured and unstructured
situations. Examples include financial planning systems and bank loan management
systems.

4. Expert System:
AI-based systems that simulate expert-level decision-making. Examples include
knowledge-based consulting systems.

Components of Information System

1. Computer Hardware:
Physical devices used for input, processing, and output, including peripherals like
printers and scanners.

2. Computer Software:
Programs and applications for analyzing and processing data, including system software
and application software.

3. Databases:
Organized collections of raw data, managed with database management systems
(DBMS).

4. Network:
Telecommunication systems such as intranets, extranets, and the internet that enable
information flow.

5. Human Resources:
People responsible for developing, managing, and using information systems, including
end users and IT professionals.

How an Information System Works

1. Input:
Data collection through sensors, keyboards, scanners, and databases.

2. Processing:
Transforms raw data into meaningful information through various techniques like
sorting and analysis.

3. Storage:
Processed data is stored securely in databases or cloud storage systems.

4. Output:
Displays results in the form of reports, graphs, or dashboards.
5. Feedback:
Solicits user feedback to enhance system performance.

Facts about Information Systems

1. Essential for business growth.
2. Enhances data storage and operational success.
3. Improves decision-making capabilities.

Benefits and Disadvantages of Information Systems

Benefits:
1. Cost-efficient.
2. Improved productivity and efficiency.
3. Enhanced decision-making.

Disadvantages:
1. Complexity.
2. Data overload.
3. Security concerns.

Human Resources Information System (HRIS)

Definition of HRIS
An HRIS, or Human Resources Information System, is a tool designed to support human
resources in their various tasks, notably personnel administration (payroll, leave, etc.). It
centralizes all available data on the company’s employees to optimize various day-to-
day procedures.

The HRIS relies on a core database, known as the HR Core, to store and manage
information about staff members. This data enables the automation of tasks and unifies
processes to enhance productivity.

HRIS has evolved over four generations:

- 1st Generation (1950–1970): Basic computer programs.
- 2nd Generation (1970–2000): ERP HR software for managing HR processes.
- 3rd Generation (2000–2010): SaaS platforms.
- 4th Generation (2010–present): Advanced SaaS platforms with interconnected APIs.
Who is an HRIS Designed For?
HRIS can be tailored for various organizations, including VSEs, SMEs, ETIs, and large
corporations. Depending on the organization’s size, HRIS software can automate tasks,
develop organizational processes, or homogenize procedures.

Types of HRIS
1. SaaS (Software as a Service) Platform: Outsourced to a host with a subscription fee,
offering 24-hour access, maintenance, and support.
2. On-Premise HRIS: Internalized system with data stored on company servers, managed
internally. Ideal for sensitive data.
3. ASP Application: Installed internally with Internet access. Offers subscription or
license options but fewer ancillary services than SaaS.

Functionalities of HRIS Software

HRIS software provides several functionalities to optimize HR management:
- Payroll Management: Automates payroll tasks using collected data.
- Schedule Management: Tracks employee schedules, leave, and absences.
- Personnel Administration: Simplifies employment contracts, expense claims, and
medical examinations.
- Human Talent Management: Supports recruitment, training, and skill mapping.

Advantages of HRIS
1. Time Saving: Automates administrative tasks to enhance efficiency.
2. Lower Costs: Reduces expenses associated with manual processes and errors.
3. Data Security: Centralizes and secures information.
4. More Efficient Recruitment: Streamlines recruitment processes.
5. Better Communication: Improves coordination across HR departments.
6. Greater Employee Satisfaction: Enhances employee autonomy and well-being.

How to Implement an HRIS

1. Determine Needs: Identify the company’s requirements through stakeholder
interviews.
2. Define Budget: Establish the budget and calculate ROI.
3. Choose HRIS Model: Select the best-suited model (SaaS, On-Premise, ASP).
4. Establish Communication: Clearly communicate the project internally.
5. Implementation: Deploy the chosen HRIS solution.

Mistakes to Avoid
1. Neglecting HR Policy: HRIS complements but does not replace HR policies.
2. Excluding Employees: Ensure all staff are involved in the process.
3. Rushing Installation: Plan carefully to avoid disruptions.
4. Underestimating Adaptation Time: Train HR teams effectively.

Choosing an HRIS
Consider criteria such as IT security, platform accessibility, ease of use, associated
services, pricing, and GDPR compliance. Costs vary by model, with licenses ranging from
€25,000 to €40,000 and subscriptions between €6 and €50 per month.

Qualities of Information

1. Understandability;

Understandability enables users to perceive the significance of the information.

Explanation: Information must be in a language that the decision-maker can

understand. This includes both native languages (e.g., English or French) and technical
languages (e.g., physics or computer science terminology). Avoid excessive use of codes
or acronyms. Example: Financial statements written in French will not be
understandable to a manager who only speaks English.

2. Relevance;

Relevance refers to information that can make a difference in a decision-making

situation by reducing uncertainty or increasing knowledge.

Explanation: Relevant information should directly relate to the decision-making context.

Irrelevant data can lead to poor decisions. Example: A credit manager needs a
customer’s financial statements and credit history to decide on granting credit. The
customer’s organization chart would not be relevant.

3. Timeliness

Timeliness ensures information is available when needed and before it loses its capacity
to influence decisions.

Explanation: Delayed information may no longer be useful for the decision-making

process. Example: A credit manager must receive a customer’s credit history before
deciding to grant credit. If the decision is made without the information, it becomes
irrelevant.

4. Predictive Value and Feedback Value

These qualities enhance a decision-makers ability to predict outcomes, confirm

expectations, or correct errors.

Predictive Value: Helps forecast future events.

Feedback Value: Helps assess past decisions to improve future ones. Example: A retail
buyer uses sales forecasts to set inventory levels (predictive). Over time, reviewing
inventory shortages or overages refines decision-making (feedback).

5. Verifiability

Verifiability is the degree to which independent observers can agree on the accuracy of
information.

Explanation: Consistent measurement methods and objective evidence ensure

verifiability. Example: Real estate recorded at its purchase price has verifiable evidence
through transaction documents.

6. Neutrality (Freedom from Bias)

Neutrality ensures information is presented without bias or manipulation.

Explanation: Bias can distort data, affecting the reliability of decisions. Example: A
professional association overstates its membership by including duplicates or inactive
members.

7. Comparability

Comparability enables users to identify similarities and differences in information.

Explanation: Comparable data should use similar metrics for meaningful comparison.
Example: Comparing prices between vendors becomes difficult if one gives per-unit
prices while the other uses per-case pricing.

8. Consistency

Consistency refers to the use of uniform standards over time for the same object or
event.
Explanation: Consistency allows for meaningful trend analysis. Example: Comparing
annual sales growth requires consistent reporting methods across years.

9. Integrity (Validity, Accuracy, and Completeness) Integrity ensures information

reliability through its three components:

Validity: Information should represent actual events or objects. Example: Recording a

sale for a shipment that didn’t occur lacks validity.

Accuracy: Information should reflect the true state of affairs. Example: An inventory
report showing 51 units when only 15 exist is inaccurate.

Completeness: All relevant details must be included. Example: Missing two shipping
notices out of fifty compromises completeness. Conflicts Among Information Qualities
Trade-Offs: Improving one quality (e.g., accuracy) can reduce another (e.g.,
timeliness).Example: Verifying every customer invoice for accuracy delays timeliness.

Costs and Benefits of Information

Cost-Benefit Analysis: Information quality improvements have costs. Example: Weekly

physical inventory checks improve data but are costly and time-consuming. Prioritizing
Information Qualities Decision-makers often prioritize relevance or other key qualities
over others to achieve a higher goal. Example: Marketing managers may prioritize
timeliness over accuracy when gauging the initial impact of an advertising campaign.