ABC Plc is a leading retailing company in the global market. It aims at providing best quality products to the customers, which ranges from necessity to luxury products. To remain competitive in the market the company has to maintain a large base of customers and take care of their needs. It focuses on increasing its productivity by emphasizing on the performance of employees and whether they are capable enough to meet the requirements of the customers. Both customer and employee related information is vital for successful operation of the company. Thus, it maintains a Human Resource Information System (HRIS) to store, manipulate and extract information pertaining to the employees. With the help of the software, the company takes care of number of activities that are related to financing, human resource, payroll and management. It helps ABC Plc to plan an effective HR cost structure as well as control them. The effectiveness of the HRIS can be measured with the help of a rigorous research examining the information system of the company. The main aim of the project is to decipher the effectiveness of HRIS in the company with the help of primary data analysis. However, secondary data are also used in order to understand the importance of HRIS in the contemporary world of management (Kovach and Cathcart, 1999). This specific area of research is very important and interesting, as it highlights the performance of the company based on its human resource. Presently, HRIS has become an essential part of management of every company as it gives easy access to data pertaining to performance and productivity of employees. The main issue that is highlighted in the research is related to the ineffectiveness of the HRIS due to lack of dedicated resources, poor quality of data, unrealistic time frame and complexities pertaining to management of the software.
According to Tannenbaum (1990), HRIS is defined as the technology based system that is employed to store, acquire, analyze, manipulate, distribute and retrieve relevant information pertaining to human resource of a company. He has highlighted that in hyper-competitive era, organizations have felt the need of employing information system to control human resources. Companies have used information system and human resource as the two main strategic weapons for becoming competitive in the market.
According to Hall, Mark and Moritz (2003), HRIS aims at providing opportunities to the human resource professionals to improve their performance strategically so that it can increase the productivity of the company. HRIS automates and devolves the routines prepared for human resource jobs aligned for the line managers. It provides with the time needed by human resource professionals for directing their attention towards the strategic level tasks such as talent management and leadership development (Kavanagh, Thite and Johnson, 2011). According to my understanding, HRIS not only helps in determining the performance and productivity level of the employees, but it also identifies the areas of improvement. Information pertaining to daily work schedules of the human resource personnel is also prepared with the help of HRIS. It aims at formulating programs and policies that are related to the development of the human resource of an organization. It facilitates decision making in different areas such as nomination, transfer, retirement and gratuity of the employees. The leaves taken by the employees, travel concessions and provident fund information are recorded with the help of HRIS. Thus, it can be portrayed that effectiveness of HRIS in an organization is very crucial for its success as the performance and details of employees are maintained (Panayotopoulou, Vakola and Galanaki, 2007). Ineffectiveness of HRIS originates from the lack of responsiveness of the system due to any operational failure. These operational failures are basically created by individuals working in the company. These operational failures often lead to loss of data and important information pertaining to the human resource department. Hence, lack of adequate knowledge of the employees regarding this software is vulnerable for companies. The unrealistic time frame that is required by the system to fetch data has also become an obstacle for the management of the companies to extract information whenever required. This information helps them to take relevant decision regarding any change or improvement of the present scenario of the company (Krishna and Bhaskar, 2011; Hollenbeck, Gerhart and Wright, 1997; Haines . and Petit, 1997).
In this present research, it is worth mentioning that HRIS of ABC Plc requires a thorough investigation in order to eliminate the inefficiencies and difficulties encountered by it. It is examined whether ABC Plc need to modify its information system to sustain in the competitive market. The practices that will be adopted by the company are detailed after analyzing the current scenario of the HRIS (Kossek, et al., 1994).
According to Wright et al (1998), there are many activities that are associated with the HR programs such as record keeping, extracting, recruiting training, selecting training and compensation. This activities or practices can be defined under three broad headings: traditional, transactional and transformational. The transactional practices takes into account daily operation of the company such as record keeping of the status changes of the employees, payroll information and supervision of employee benefits. The traditional activities comprise HR programs, which includes recruiting, planning, selection, compensation, training and performance management. These practices have significant value to the company if the results are aligned with its strategic goals (Ball, 2001). The transformational activities add considerable value to the well being of the company such as organizational or cultural changes, strategic redirection, structural realignment and increase in motivation (Wright et al., 1998). Thus, these three practices are very important for a company to sustain in the long run.