UNIT 3 HUMAN RESOURCE INFORMATION SYSTEMS

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---7-1UNIT 3 HUMAN RESOURCE INFORMATIONSYSTEMSStructureObjectivesIntroduction ' nformation:kome Basic Guide1inesHuman Resource Information at Macro LevelHuman Resource Information at Micro LevelEffective Human Resource Information System: Some ApproachesWhy Computerise Personnel Records and Information Systems?Computer Applications in Human Resource Management: An OverviewLet Us Sum UpClues to Answers3.03.13.2. 3.33.43.53.63.73.83.93.0 OBJECTIVESAfter reading this Unit, you should be able to:understand the dynamics of information system and its use as a tool formeasurement,examine the significance of information in human resource management,-appreciate the approaches to the information system at the macro and micro kvels,.consider the shortcomings of manual information system, anddiscuss merits of computerisation and its applications in effective Human ResourceInformation System.3.1INTRODUCTIONIn the previous Unit, you have already learnt that Human Resource Planning isconcerned with the controlled utilisation of human resources to achieve pre-setobjectives, both short-term and long-term. To state briefly, planning process aims tobring supply and demand into balance at the levels most consistent with the needsof the projected requirements and with the assessments of the economic and socialenvironment - preyailing and expected. We have also discussed the importance ofManpower Information System (MIS) in forecasting demand and supply at macro andmicro level. Infact, the basis of all manpower planning is information. You will needthe know-how to gather relevant data, analyse manpower demand and supply, and howto apply this information to improve job efficiency and manpower utilisation. Whetheryou are auditing the current situation or looking forward, you will need information andreliable data, any way, in order to make best decisions or to move into new direction.Gone are the times when decisions about future could be based on hunches. Now youneed to collect hard data in order to mak- the future events more manageable thanbefore. Increasingly, human resource profesiionals and specialist managers wanting tointroduce a new manpower planning system or improve an existing one, use informationas an invaluable aid in decisiokmaking. This tool is developed by systematising theprocesses of collecting, maintaining, analysing and reporting information.HRIS DefinedFrom the above, a general definition of Human Resource Information System (HRI ) isdeveloped. Thus, Human Resource 1nhrmation.System provides a method by which

an organisation collects, maintains, analyses and reports information on people andjobs. The information contained in the HRIS serves a hotel operator as a guide torecruiters, trainers, career planners and kher human resource specialists.'It applies toinformation needs at macro level as well as to the micro level.In this Unit whereas human resource information at the macro level is considered briefly,rest of the discussion is devoted to the human resource information at the micro level,i.e., the enterprise level. The Unit also discusses some approaches to build an effectiveHRIS and the utility of computer applications in this regard.3.2 INFORMATION: SOME BASIC GUIDELINESAs you know that without information, it is very difficult even to initiate the planningprocess. For example in order to plan an accommodation unit at a destination one wouldneed infonnation about the number of expected tourist arrivals, number of bedsavailable, number of agents selling the destination, etc. Similarly, any organisationdealing in providing tourism services needs infonnation to plan operations and therebylook for the manpower to manage them. Hence, in order to make information useful andeffective, the following key points need to be taken note of1) Adequacy of information: Lack of information hinders planning and will leaveunfilled gaps.2) Specificity of information: If the information is for decision making, then whichdecisions are to be made and what information is needed, therefore, must be madespecific.3) Over-estimating information: It is desirable to follow a conservative approach. Itis better to understate the need than to waste resource on unused mass ofinformation.4) Identifying need levels: There is a need for different levels of detail of information.5) Mechanism for additionldeletion: The how and when of information to beaddedldeleted should be considered.6) Management support: Information systems need constant management support formaintenance.7) Quality of information matters: Otherwise, the famous GIGO (garbage idgarbageout) principle will be found at work.3.3 HUMAN RESOURCE INFORMATION AT MACROLEVELThe Data base required for purposes of making manpower forecast at the macro level isindicated in Tablel:Table 1Forecasting at Macro LevelData Base for Supply forecastiegData Base for Demand forecastingi) Age at entry and Age at exiti) Population statisticsii) Annual enrolment and outrunii) Economic parametersiii) Attrition rates. ciii) Existing technologiesiv) etkementiv) Emerging technologiesv) Migration ,vi) Mortalityvii) Labour force participation ratesHuman ResourceInformation Systems

lock I HumanResource DevelopmentWe have discussed in previous Units, the limitations and complexities in generatingappropriate data for demand forecasting and supply forecasting of manpower at both themacro and micro level. However, the fact is that a totally reliable data base for macroforecasting is not always available, and quite often specific studies have to be conductedto generate the needed data. -Institutional Arrangements at the Macro Level h institutionalkarrangements for providing required data at the macro level can be donethrough agencies and institutions like:-.The Planning CommissionThe Ministry of LabourThe National Sample Survey OrganisationThe Institute of Applied Manpower ResearchThe National Labour InstituteUniversitiesOther institutions'at the state level.1) At the apex of the institutional machinery for plan formulation regardingemployment and manpower sectors, is the Employment Manpower PlanningDivision of the Planning Commission. This Division works closely with thePerspective Planning Division of the Planning Commission.2) The Labour Ministry collects the data on employment through the DirectorateGeneral of Employment and Training.3) Employment data is also collected through the National Sample Survey and theAnnual Survey of Industries.4) The Institute of Applied Manpower Research conducts studies on employmentstrategies and estimates at the sectoral and project levels.5) Tlqe National Labour Institute has conducted major studies at the sectoral and projectIeSels on institutional conditions on rural employment.6) Researchers in the Universities and other research systems also participate.7) The sate level employment market information scheme departments collect data onlocal labour markets through employment market information schemes.In case of hospitality, the Department of Tourism, Government of India and FHRAI aremajor sources of information. They publish annually tourism statistics related to touristarrivals (country and region wise), numbers of hotels and beds available (star categorywise) etc. along with projections of future arrivals. Other professional associations likethe WTO, IAOTO and IATA, etc. also provide information to their members related toHuman Resources requirements, etc. In recent years, FHRAI has started publishingresults of various research studies undertaken by them and is useful for different areas ofoperation, e.g., HR, IT and so on.How to improve the effectiveness for Human e s o u k ePlanning and policy at themacro level?An essential step in improving the effectiveness of manpower planning and policy at themacro level lies in taking decisive measures to raise the quality and reliability of labourmarket information. Existing sources of statistical information suffer from serious gapsand inadequacies, redundancies, etc. So long as these deficiencies continue, meaningful.manpower research required for National Employment Policy would be extremelydifficult to undertake.-

Thus, the quality and effectiveness of future manpower policies at the macro level woulddepend most significantly on the accuracy and adequacy of the information inputs in theformulation of the plans and policies. The need is not only to build computer-based databanks, but no less importantly, to improve the quality of current bench-mark datasources, viz., at the institutional levels such as the apex level institutions referred toabove. This has become extremely important for the tourism sector as new forms oftourism are emerging and the HRD projections have to be correlated to theirrequirements. For example, in the field of health tourism the HRD requirements wouldbe quite different and similar would be the situation in case of other forms of specialinterest tourism.3.4.HUMAN RESOURCE INFORMATION AT MICROLEVELWith regard to data needs at the micro level, we have noted in various Units the need fora well-defined and detailed manpower information system within the organisation. Forthis purpose, the data modules and the particulars of information that each such moduleshould carry are noted below:Data ModulePersonal Data moduleWhat it should containIdentification particularsEducational particularsTechnical qualification, if anySpecial skills, if anyEarlier experience in tourismSpecial privileges category, such as: ex-serviceman,handicapped, scheduled castelscheduledtribe, etc. ifanyRecruitment moduleDate of recruitmentgrading in aptitude testsgrading in leadership testsoverall gradingjob preferences and choices, if anyJob Experience modulePlacement historyGrade promotionsTasks performed gradewiseSignificant contribution, etc.IPerformatice Appraisal modulePerformance appraisal at each job held o experiencebevaluated in the light ofjob descriptionCommunication rating of inter-personal relationshipsRatings of behaviours in a groupCommitment to corporate goals, etc.Training and DevelopmentmoduleNature of training received at each levelIndividual's evaluation of effectiveness of trainingCurrent training assignment, if anyFuture training requirements, if anyMiscellaneous moduleIRecord of compensation and benefits receivedHealth statusPersonal problems calling attention, if anySecurity needs, etc.Human ResourceInformation Systems

Block 1 HumanResource DevelopmentHRM as a Total SystemAccording to Murdick and Ross, Human Resource Management as a total systeminteracts w i a other major systems of the organisation, viz., marketing, production,finance, an&fhe external environment. In any service industry including Hospitality, themain responsibilities of Human Resource Department can be enumerated as forecastingand planning human resources, maintaining an adequate workforce, and controlling themanpower policies and programmes of the enterprise, in other words, rendering servicefunctions to other major systems of the organisation.Basically, a system consists of several inputs and outputs, and a number of relatedsubsystems, processes and activities, all operating through the medium of information.Figure I depicts the Murdick and Ross model on human resource information systems- followed by a brief description of the objectives that each subsystem is designed toaccomplish.Information Input-MANPOWER SYSTEMSCompany-- 1. RECRUITMENT,ObjectivesSELECTION ANDOperating PlansHIRINGJob Related Info.2. PLACEMENTPersonnel PlansPersonnel Policies - 3. TRAINING ANDOther PlanningDEVELOPMENTPremises4. PAY ANDOutputs4,TO OPERATINGMANAGERS (Improvepersonnel performance) - TO ORGANISATION -PERSONNEL(Personnel satisfaction)4 ORGANISATIONGOALS (Related toMANAGEMENT(Reports, records, etc.,related to manpower)6. MAINTENANCEFEEDBACK ON EFFECTIVENESS OF MANPOWER SYSTEMFigure I: Human Resource Information Systems(Source: Murdick, Robert G. & Joel E. Rosa, Information Systems for Modem Management,Prentice Hall of India, New Delhi, 1979, Pp.21617)Objectives of the SubsystemsInformation entskills requiredinventory of skills availablejob specificationsmatching available personnel against requirementsenabling use of tools and techniques to identify human capabilities forplacement against properly organised work requilements.-----Training anddevelopmentdeveloping talent requirements from within the organisation meetingdemand for new skillsdeveloping and maintaining a continuing skill inventoryPay and compensationmaintaining traditional pay and fmancial recordscompliance with government, union and other requirements-----------Health safety ahdsecurityhealth of personnel, safety of job practices in during operations, plantsecurity classified informationMaintenanceensuring success of personnel policies and procedures control overwork standards measuring performance against financial plans andprogrammes.

' Human Resourcektformation SystemsSince now we know that Human Resource Information Systems serve multiplemanagement needs, and that its objectives are manifold it becomes clear that the humanresource staff has a major role to play in the collection, storage, retrieval and analysis ofpersonnel data. In fact, if we carefuliy design our information system it can provide usbetter control over our human resource functions, and can help in creating a positiveclimate where the value of human resources of the organisation is clearly understood andrecognised at various levels of management decision making. .We shall now consider theseveral approaches and design aspects in establishing an effective human resourceinformation system.3.5 EFFECTIVE HUMAN RESOURCE INFORMATIONSYSTEM: SOME APPROACHES-.To have an effective information system, whatever be the size of the organisation, oneneed to answer two basic questions:I ) What is the information need?2) How can it be met most effectively?As far as small organisations are concerned, there is no or a little need to undertakeelaborate manpower planning because in such organisations the information needs arelikely to be few and simple which can be p e t by a manual human resource informationsystem. This manual system can consist of a set of forms or manual files, consisting of aset of records. In such a system there is a folder for each employee with the employee'semployment history, appraisals, and salary record maintained in the personneldepartment. Another set of records pertaining to compensation and benefits informationmay be maintained in the pay roll section. Entries on forms and additionldeletion in theexisting records are carried out manually. (The manually operated information systemssuffer from several deficiencies which we will consider later).In case of large Organisations, a comprehensive HRI system exists for developing,1) The existing computer based payroll system. Since most firms now use acomputer for payroll purposes, this system itself includes many basic employee dataelements which may be expanded to include other elements necessary for humanresource planning.2) A supplemental system. Alternatively, a separate supplemental system could beestablished and interfaced with the payroll system to provide the additional dataelements required. If planned intelligently, this could be a step towards a modularapproach to building a comprehensive HRIS.3) A wholly separate information system. This is the third alternative which suggeststhe establishment of a wholly separate information system for human resource.planning purpose only. In large and modem organisations, the trend is clearlytoward; establishment of comprehensive systems. For example, ITC has acomprehensive information system used by management to store, change and reportpersonnel information. It is a centralised information source in a company that isdiverse in its organisation, products and locations.Now before we move over to the design considerations and steps involved inestablishing a comprehensive human resource information system, let us also take noteof the significant features of computerised system.39

Block 1 HumanResource Development3.6 WHY COMPUTERISE PERSONNEL RECORDS ANDINFORMATION SYSTEMS?For a variety of purposes one can canyout a periodic and systematic analyses of thepersonnel records.provide d m essential to human resource planning,aid the evaluation of current personnel policies and practices,enable to produce an inventory of manpower, andpreparation of several reports and returns for submission to various governmentlnongovernment agencies, etc.In manually .operated personnel record systems, entries on forms and insertion ofchanges fiom time to time in the relevant records pertaining to a large number ofemployees often fall behind so the records do not show the current position always. Thisleads to a fiesh exercise toward collecting and compilation of original data elements,evrry time the information is required. All that can be very time consuming. Hence, let1.13 look at some of the shortcomings inberent in manual personnel records systems sothat the perspective of potential benefits of going in for a computerised personnel recordand information system becomes clearer.a) Deficiencies and drawbacks of the manual system: These include the following:i) Cost: Manual systems involve significant clerical and routine administrativework load, the maintenance and updating of records being labour intensive andcostly. In addition, the documentation being relatively non-standardise, the samehave to be provided time and again; the same have to be produced separately.ii) Accuracy: The manual transfer of data from one record to another increase thechances of error. It is not uncommon to find the data collected form the samesource at different times or by different people giving almost a different picture.As a result, the accuracy and reliability of the manual system is held to be verymuch in doubt.iii) Fragmentation: Manually stored information is frequently held in a fragmentedmanner with different pieces of information being kept in separate files atdifferent places. Thus, many manual systems are unable to provide a singlecomprehensive picture of an employee on one record.iv) Duplication: As it happens, some of the information held in the personnelrecords may be needed simultaneously by a number of other user departments,such as, payroll departrnentlsalary group, training department may like to keepduplicate records to meet their respective needs. Such practices are not onlyprone to duplication but add to the costs.v) Difficulty of analyses: The manual analyses of data is timeconsuming andquite often not available on time for the purpose of decision making. As a resultthe difficulty in extracting information promptly fiom manual systems may putthe personnel function in a backstage position where it may be overlooked orbypassed for as a source of useful information for decision making. So much so,the role and opportunities of the personnel function to influence manpowerplanning decisions may get consequently reduced. In the ultimate, in that event,it is likely to create scope for decisions being taken on ad hoc basis - so veryprejudicial to systematic planning and decision making leave aside anymeaningful control and measurement mechanism being available to themanagement. The problems need to be considered in the context of one's ownorganisation. Moreover, as organisations grow larger, the manual systems tend tobreak down under the burden of manual processing.

b) Computerised personnel records/information system: Some potential benefits:While it would be presumptuous to assume that in large and labour intensive sectorslike hospitality, computerisation would automatically solve all the problems'associated with manual systems. In the fast changing technological and informationprocessing environment, it also offers does present several other potential benefits,viz., ma

UNIT 3 HUMAN RESOURCE INFORMATION SYSTEMS Structure 3.0 Objectives 3.1 Introduction ' 3.2 nformation: kome Basic Guide1 ines . 3.3 Human Resource Information at Macro Level 3.4 Human Resource Information at Micro Level 3.5 Effective Human Resource Information System: Some Approaches 3.6 Why Computerise Personnel Records and Information Systems?

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