The Role Of Management Information System

Published Date: 02 Nov 2017

ABSTRACT

In this modern, increasingly globalized world, to be able to get and manage information is very important for every company.   Management Information Systems (MIS) have very significant functions in a company; without them, the company would have trouble surviving and competing with other companies.   "Management Information Systems (MIS) is a system that provides information needed to manage and organize a company in doing its business effectively.

Now a day, in business organizations, Human Resource is considered as one of the key resources. The transaction processing layer of Management Information System in human resource function deals with routine activities like to produce pay slips, payroll calculations, recording of attendance, analyze the use of personnel in business operations. But now the situation is different, as the size of organization is increasing it’s a big challenge for the organizations, to maintain employee related data, generating appropriate reports, recruitment, selection , placements , performance appraisal, employee benefit analyses, training and development , health safety and securing of human resources. To manage such situations, the organizations are adopting computer based Human Resource Management System (HRMS). Management information system is required for managerial report generation specialized tools; software and procedures are used to develop Management Information System in the organization. This paper is an attempt to design and implement an MIS for the business organization and show how it helps to manage the human resources.

Keywords: HRM, HRM tools, MIS, MIS model.

INTRODUCTION

A human resource management system (HRMS) or human resource information system (HRIS) refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible. [1]

Management Information System is an old management tool, which has been long used by people for better management and scientific decision making. It involve three primary resources; people, technology and information. Information is the most critical resource of Management Information System. Information is an important input for achieving our goals such as learning to help each other and to become integral part of society. The management needs full information before taking any decision. Good decisions can minimize costs and optimize results. Management information system can be helpful to the management in undertaking management decisions smoothly and effectively. The Management Information

System (MIS) has evolved as an important tool and technique in business management area in the current opportunities and business threats. Right information at right time in right format will decide the managements’ Human resource decisions.

OBJECTIVE

The reason of this research study is to know about the impact of management information system in the performance and efficiency of the employees. As in today’s modern world every one know that the importance of MIS for organization.

To ensure effective utilization and maximum development of human resources through Management Information System.

To manage all kind of information related to employee through Human Resource Information System.

Discuss the impact of computer technology on the evaluation of Human Resource Management.

Explain the relationship between Human Resource Management and Human Resource Information System.

To develop and maintain a quality of work life.

The purpose of this chapter is to provide an introduction to the fields of human resource management (HRM) and information technology (IT) and to the combination of these two fields into human resource information systems (HRIS).

LITERATURE REVIEW

PROTOTYPING A HOSPITAL HUMAN RESOURCE INFORMATION SYSTEM

Ruqaia Jwad Kadhim

Bourair Sadik Mohamad Taqi

Bala Musa Shuaibu

Faculty of Science and Technology, Universitiy Sains Islam Malaysia.

This study will discusses the impacts of information technology on traditional HR processes in increasing efficiency (e.g., transaction and timeliness), effectiveness (e.g., accuracy, completeness and simplification of process), and new applications (e.g., computer-based training, online recruitment, and self-service HR).

IMPACT OF ADOPTING HRIS ON THREE TRIES OF HRM EVIDENCE FROM DEVELOPING ECONOMY

Irfan Saleem

Assistant Professor, University of Central Punjab, Lahore Pakistan

Cross-sectional studies are needed to uncover missing linkage between Human Resource Management and Information Technology. Objective of this study is to investigate the contribution of Human Resource Information System (HRIS) for Operational, Functional and Strategic Human Resource Management (HRM) processes. Results depict that adopting HRIS facilitates. Operational and functional HRM Processes, while HRIS does not supportive for Strategic HRM Processes. It is therefore recommended that HRIS usage for operational and functional HRM is beneficial for organization.

PERFORMANCE MANGEMENT SYSTEM: A CASE STUDY OF NTPC

KANIKA GOYAL

Lecturer in Commerce & Management, Hindu Girls (PG) College,

Jagadhari (Haryana), email:[email protected]

DR ASHOK KHURANA

Associate Professor, PG Department of Commerce, Guru Nanak Khalsa College,

Yamunanagar,

email:[email protected]

The performance management system has an intrinsic motivational significance that facilitates learning and brings about role clarity which helps people focus on performance development. It is a continuous process to understand the employee’s ability, competencies, relative merits and worth of the organization. The present study explores performance management system (PMS) of National Thermal Power Corporation Limited (NTPC), a leading public sector organization in the power sector [6]

MEANING AND CONCEPT:

Management Information Systems (MIS), referred to as Information Management and Systems, is the discipline covering the application of people, technologies, and procedures collectively called information systems, to solving business problems.

"'MIS' is a planned system of collecting, storing and disseminating data in the

form of information needed to carry out the functions of management."[5]

Management information system can be analyzed thus:

MANAGEMENT: management covers the planning, control, and administration of the operations of a concern. The top management handles planning; the middle management concentrates on controlling; and the lower management is concerned with actual administration.

INFORMATION: information, in MIS, means the processed data that helps the management in planning, controlling and operations. Data means all the facts arising out of the operations of the concern. Data is processed i.e. recorded, summarized, compared and finally presented to the management in the form of MIS report.

SYSTEM: data is processed into information with the help of a system. a system is made up of inputs, processing, output and feedback or control.

Thus MIS means a system for processing data in order to give proper information to the management for performing its functions.

The plan for development and its implementation is a basic necessity for MIS.  In MIS the information is recognized as a major resource like capital, time and capacity.  And if this resource is to be managed well, it calls upon the management to plan for it and control it for the appropriate use in the organization.  Most of the organizations do not recognize `Information' as a resource.  They have looked at information as one of the many necessities for conducting the business activity. Hence, due regard is often not given for its planned development and use. Many organizations have spent financial resources on computers purely to expedite the activity of data collection and processing.

We need a Management Information System flexible enough to deal with the changing information needs of the organization. It should be conceived as an open system continuously interacting with the business environment with a built-in mechanism to provide the desired information as per the new requirements of the management. The designing of such as open system is a complex task. It can be achieved only if the MIS is planned, keeping in view, the plan of the business management of the organization.

Management Information System (MIS) may be developed using following ways:

1. Prototype method

2. Life cycle approach

In the prototype method, initial methods are developed first. Once implemented, the system is refined and modified as per new specifications. This iterative process is followed till the system is accepted by the user.

In life cycle approach, the MIS development is carried out through different phases. The phases are: Feasibility study, Analysis, Design, Implementation and Review. The choice of MIS design is decided on the basis of nature of the system and its applications. Thus the MIS is developed over time as the business increases.

WHAT IS HRIS

This is recognized as an effective method in the management of HR information it refers to a system that makes available the right information to the right person at the right time. Accurate and up-to-date data is relevant to the objective of this system which is to ensure a free flow of such information throughout the organization.

It consists of:

Networks through which the information is made available such as intranets;

Personal computers (PCs);

The right software;

Automated telephone systems, and so on

Surveys have shown that the adoption of an HRIS is not widespread among organizations. Payroll systems are fairly common. And UBS is implemented by many organizations.

This new way of managing information is to ensure that the system can facilitate the positioning of people as an organization's "most important asset."

HRIS MODEL

First of all, HRIS model consists of 3 set of components which is Input Subsystem, HRIS Database, and Output Subsystem. I think is quite hard for us to understand without the graphic of the HRIS model. Below is the graphic showed the HRIS model.

The figure 2 shows the resource flow of HRIS model by Raymond (1995). As you can observe through the HRIS model, it has three set of components which are Input subsystem, HRIS database, and Output subsystem. In Input subsystem, there are three main subsystems which are data processing, human resource research, and human resource intelligence. Some input data might include software that can transform the data into the format that needed and required. The second one is HRIS database, all the data and information can be store in computer storage. The software such as Database management system (DBMS) can help to perform the maintenance processes. The last one is output subsystem which contain all the output related to HR consists of workforce planning subsystem, recruiting subsystem, workforce management system, compensation subsystem, benefit subsystem, and environmental reporting subsystem.

MAIN PURPOSE OF HUMAN RESOURCES INFORMATION SYSTEM

The main and ultimate purpose of an HRIS is to help HR Managers and line managers in making decisions that "add value".

HRIS facilitates HR Managers to become strategic partners.

It helps in making analysis of important matters such as the HR costs.

It is an effective communication channel, complementing the employee manual or written HR polices.

HRIS facilitates better decision making.

It can contribute to employee satisfaction and productivity.

It implements "paperless" HR initiatives.

It is fairly clear that your organization can benefit from implementing HRIS.

The system is effective and beneficial if employees can have access to accurate, timely and relevant information that are linked to the accomplishment of your organization's mission and strategic objectives.

A well-designed Human Resources Information System must satisfy the needs of your employees and organization.

FUNCTION OF HUMAN RESOURCE INFORMATION SYSTEM

The function of human resources (HR) departments is generally administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Efficient and effective management of "human capital progressed to an increasingly imperative and complex process. The HR function consists of tracking existing employee data which traditionally includes personal histories, skills, capabilities, accomplishments and salary. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing specialized human resource management systems. HR executives rely on internal or external IT professionals to develop and maintain an integrated HRMS. Currently human resource management systems encompass

Payroll

Time and attendance

Performance appraisal

Benefits administration

HR management information system

Recruiting/Learning management

Performance record

Employee self-service

Scheduling

Absence management

The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from the human resources and time keeping modules to calculate automatic deposit and manual cheque writing capabilities.

The time and attendance module gathers standardized time and work related efforts. The most advanced modules provide broad flexibility in data collection methods, labor distribution capabilities and data analysis features. Cost analysis and efficiency metrics are the primary functions.

The benefits administration module provides a system for organizations to administer and track employee participation in benefits programs. These typically encompass insurance, compensation, profit sharing and retirement.

The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities. Leading edge systems provide the ability to "read" applications and enter relevant data to applicable database fields, notify employers and provide position management and position control. Human resource management function involves the recruitment, placement, evaluation, compensation and development of the employees of an organization. Initially, businesses used computer based information systems to:

produce pay checks and payroll reports;

maintain personnel records;

pursue talent management

Online recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. Talent management systems typically encompass:

analyzing personnel usage within an organization;

identifying potential applicants;

recruiting through company-facing listings;

Recruiting through online recruiting sites or publications that market to both recruiters and applicants.

The significant cost incurred in maintaining an organized recruitment effort, cross-posting within and across general or industry-specific job boards and maintaining a competitive exposure of availabilities has given rise to the development of a dedicated applicant tracking system. The training module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a "learning management system" (LMS) if a stand alone product, allows HR to track education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs, web based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same system. Sophisticated LMS allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics.

The employee self-service module allows employees to query HR related data and perform some HR transactions over the system. Employees may query their attendance record from the system without asking the information from HR personnel. The module also lets supervisors approve O.T. requests from their subordinates through the system without overloading the task on HR department.

Many organizations have gone beyond the traditional functions and developed human resource management information systems, which support recruitment, selection, hiring, job placement, performance appraisals, employee benefit analysis, health, safety and security, while others integrate an outsourced applicant tracking system that encompasses a subset of the above

10 REASONS HR IS IMPORTANT TO AN ORGANIZATION

Human resources is important to organizations in 10 specific areas, ranging from strategic planning to company image. HR practitioners in a small business who have well-rounded expertise provide a number of services to employees. The areas in which HR maintains control can enhance employees’ perception of HR throughout the workforce when they believe HR considers employees to be its internal customers and renders services with that in mind.

STRATEGY

HR improves the company's bottom line with its knowledge of how human capital affects organizational success. Leaders with expertise in HR strategic management participate in corporate decision-making that underlies current staffing assessments and projections for future workforce needs based on business demand.

COMPENSATION

HR compensation specialists develop realistic compensation structures that set company wages competitive with other businesses in the area, in the same industry or companies competing for employees with similar skills. They conduct extensive wage and salary surveys to maintain compensation costs in line with the organization's current financial status and projected revenue.

BENEFITS

Benefits specialists can reduce the company’s costs associated with turnover, attrition and hiring replacement workers. They are important to the organization because they have the skills and expertise necessary to negotiate group benefit packages for employees, within the organization's budget and consistent with economic conditions. They also are familiar with employee benefits most likely to attract and retain workers.

SAFETY

Employers have an obligation to provide safe working conditions. Workplace safety and risk management specialists from the HR area manage compliance with U.S. Occupational Safety and Health Administration regulations through maintaining accurate work logs and records, and developing programs that reduce the number of workplace injuries and fatalities. Workplace safety specialists also engage employees in promoting awareness and safe handling of dangerous equipment and hazardous chemicals.

LIABILITY

HR employee relations specialists minimize the organization's exposure and liability related to allegations of unfair employment practices. They identify, investigate and resolve workplace issues that, left unattended, could spiral out of control and embroil the organization in legal matters pertaining to federal and state anti-discrimination and harassment laws.

TRAINING AND DEVELOPMENT

HR training and development specialists coordinate new employee orientation, an essential step in forging a strong employer-employee relationship. The training and development area of HR also provides training that supports the company's fair employment practices and employee development to prepare aspiring leaders for supervisory and management roles.

EMPLOYEE SATISFACTION

Employee relations specialists in HR help the organization achieve high performance, morale and satisfaction levels throughout the workforce, by creating ways to strengthen the employer-employee relationship. They administer employee opinion surveys, conduct focus groups and seek employee input regarding job satisfaction and ways the employer can sustain good working relationships.

RECRUITMENT

HR recruiters manage the employment process from screening resumes to scheduling interviews to processing new employees. Typically, they determine the most effective methods for recruiting applicants, including assessing which applicant tracking systems are best suited for the organization's needs.

SELECTION

HR professionals work closely with hiring managers to effect good hiring decisions, according to the organization's workforce needs. They provide guidance to managers who aren't familiar with HR or standard hiring processes to ensure that the company extends offers to suitable candidates.

COMPLIANCE

HR workers ensure that the organization complies with federal state employment laws. They complete paperwork necessary for documenting that the company's employees are eligible to work in the U.S. They also monitor compliance with applicable laws for organizations that receive federal or state government contracts, through maintaining applicant flow logs, written affirmative action plans and disparate impact analyses.[2][3][4]

HOW TO IMPLEMENT HUMAN RESOURCE INFORMATION SYSTEM SUCCESSFULLY IN THE ORGANIZATION

Effective implementation is indicated by the following:

HR Managers are playing their role as "a human resource strategic partner", not content in merely performing administrative duties;

The HRIS that your organization has implemented is aligned to HR objectives;

Your overall business objectives are linked to the HR strategies under the HRIS that your organization has implemented;

The right technology is chosen based on effective assessment of what the HRIS can help to achieve;

The workforce is ready for the new technology and accepts it, and

Senior management provides full support for the HRIS and makes use of it in decision making.

LIMITATIONS

Lack of management commitment

Satisfaction with the status quo

No or poorly done needs analysis

Failure to include key people

Failure to keep project team intact

Politics / hidden agendas

Failure to involve / consult significant groups

Lack of communication

Bad timing (time of year and duration

CONCLUSION

Human Resource Information System (HRIS) seems to play important roles for Human Resource Management (HRM) because HRIS functions improve HRM in terms of administrative purposes and analytical purposes. Although HRISs are still being used for administrative ends rather than analytical ends, the future of HRISs in decision support is possible. It is important to recognize critical issues during the HRIS development and implementation in order to achieve an HRIS project.

The field of human resources is one that is often overlooked in enterprise management. This situation is aided by the fact that an efficient HR department should function without fanfare. However, in reality, the HR department plays a vital role in ensuring the smooth running of an enterprise – most importantly by tracking and analyzing the timekeeping and work patterns of the employees/workforce, allowing management better information from which to form strategies.

The importance of human resources has not gone unobserved. There are now a wide range of applications available to aid HR departments in their tasks, making possible the automation of certain tasks and aiding in the organization of many others.