The Role of Human Resource Information Systems …

1 The Role of Human Resource Information Systems (HRIS) in Strategic Human Resource Management (SHRM) Asafo-Adjei Agyenim Boateng Master of Science Theses in Accounting Swedish School Of Economics and Business Administration 2007 HANKEN-Swedish School of Economics and Business Administration Department: Accounting Type of Work: Master of Science Thesis Author: Asafo-Adjei Agyenim Boateng Date: 4th August, 2007 Title of Thesis THE ROLE OF HRIS IN STRATEGIC Human Resource MANAGEMENT Abstract: Information technology is expected to drive Human Resource (HR)'s transition from a focus on Human Resource Management (HRM) to Strategic Human Resource Management (SHRM).

2 This strategic role not only adds a valuable dimension to the HR function, but also changes the competencies that define HR professional and practitioner success. The study aims at investigating what role if any do Human Resource Information Systems (HRIS) play in SHRM. It attempts to examine how HR professionals and managers in different organizations see the effects of HRIS on strategic HR tasks and job roles . It also tries to find out if there is any significant difference in the usage of HRIS between Small/Medium (SME) size and Large size companies. A survey questionnaire was sent to 170 companies and a response rate of was received.

3 The target group of the questionnaire was HR managers, HR directors, and HR professionals in companies based in Finland. The scope was widened to include both large and small/medium sized organizations across all the business sectors. The results of the survey reveal that HR professionals not only consider HRIS usage as a support for strategic HR tasks but also perceive it as an enabling technology. The study also indicates that large sized firms are most likely to experience considerable HRIS usage in support of strategic HR tasks. Moreover, there was no significant difference in proportion to the size of a company regarding HRIS usage in support of commitment management and managing trade union relations with organizations.

4 Low response rate of this study makes generalization rather difficult however, future research would benefit from higher response rates for more generalized results. Key Words: Human Resources, Human Resource Management, Strategic Human Resource Management, Human Resource Information Systems , Strategic Human Resource Tasks, Enabled Technology ii TABLE OF CONTENT List of iv List of Figures .. iv 1 1 Study 1 Research 4 Structure of the study .. 4 2 THE CONCEPT OF Human Resource MANAGEMENT (HRM) .. 5 Human Resource management (HRM) .. 5 HRM definition .. 5 HRM processes .. 9 Planning 9 Recruitment process .. 10 Selection process .. 10 Orientation, training and development 11 Career planning and development 11 Performance appraisal process.

5 12 Employee Compensation and benefits process .. 12 Occupational health and safety process .. 13 Chapter 14 3 THE CONCEPT OF STRATEGIC Human Resource MANAGEMENT (SHRM).. 15 SHRM 15 SHRM definition .. 15 Dimensions of SHRM .. 19 Re engineering and strategic Human Resource management .. 19 Leadership and strategic Human Resource management .. 20 Workplace learning and strategic Human Resource management .. 20 Trade unions and strategic Human Resource 21 Chapter summary .. 21 4 Human Resource Information Systems (HRIS) IN ORGANIZATION . 23 Development of HRIS .. 23 Definition of HRIS .. 24 Components of an HRIS .. 24 Users of HRIS applications.

6 25 HRIS 26 Integrating the Technologies of HR .. 26 Increased 26 Increased Effectiveness .. 26 IT-Enabled Processes .. 27 Cost and benefit of HRIS .. 27 Chapter summary .. 29 5 HRIS ROLE IN 31 Previous 31 HRIS 31 iii Ball (2000).. 31 The role and impact of HRIS .. 33 Hussain et al., (2006).. 33 Florkowski (2006) .. 34 Gasc , Llopis and Gonz lez (2004) .. 34 Ord nez de Pablos (2004) .. 36 Buckley, Kathleen, Joy and Michaels (2004) .. 37 Gardner, Lepak and Bartol (2003) .. 37 Baran, Karabulut, and Pekdemir (2002)..38 Tansley, Sue and Hazel (2001) .. 40 HRIS 41 Ngai and Wat (2004) .. 41 Shrivastava and Shaw (2003) .. 42 Lado and Wilson (1994).

7 43 Analysis of the previous 44 6 HYPOTHESES DEVELOPMENT AND RESEARCH METHODOLOGY .. 49 Research 49 Research questions and 50 Hypotheses 51 Data and Sample collection methods .. 57 Chapter summary .. 58 7 EMPIRICAL RESULTS AND ANALYSIS .. 60 The Response rate .. 60 Characteristics of the Statistics .. 61 Presentation of the research findings .. 63 Hypotheses 1 .. 63 2 Hypothesis 2 .. 64 Hypothesis 3 .. 66 Hypothesis 4 .. 68 Hypotheses 5 .. 70 Evaluation of the Empirical 72 Validity, Reliability and Generalizibility .. 75 Chapter 76 8 CONCLUSION .. 77 Analysis of the Contribution .. 77 Recommendations and Suggestions for Further Research.

8 81 83 Appendices .. 91 Appendix A .. 91 (i) Cover 91 (ii) 92 Appendix B (Frequencies) .. 96 Appendix C (One sample T-tests) .. 97 Appendix D (Independent sample T-test) .. 101 Appendix E (Graphs) .. 103 iv List of Tables Table 1: The extent of HRIS role in strategic HR tasks (T-test)..63 Table 2: The extent of HRIS use in support of strategic HR tasks Table 3: Ratings of professional standing in organization after using Table 4: Type of organization and HRIS usage in respondents List of Figures Figure 1: Fields of Figure 2: The Supportive and strategic Role of HRM Figure 3: Frequency distribution of the role or title of Figure 4: Frequency distribution of years of experience as HR Figure 5: Frequency distribution of the extent of HRIS role in strategic HR Figure 6: Frequency distribution of the extent of HRIS usage in support of strategic HR tasks Figure 7.

9 Frequency distribution of Type of Organization and HRIS usage respondents 1 1 INTRODUCTION The subject of the strategic relevance of Human Resource management in organizational plans and models provides a deep foray into one of the core success factors that effectively underpins the achievement of leadership and managerial objectives. This insight drives the current inquiry into one of the principal levers of modern Human Resource management identified as Human Resource Information system . This research begins with the background of the study, the objective and a snapshot description of the structure of this presentation.

10 Study background Invariably, Human Resource management (HRM) issues have been major concern for managers at all levels, because they all meet their goals through the efforts of others, which require the effective and efficient management of people (Dessler et al., 1999). The spacious array of HRM activities for example, planning, recruiting, selection, and training just to mention but few place enormous responsibilities on supervisors and managers alike. These embrace analyzing jobs, planning labour needs, selecting employees, orienting and training employees, managing compensation, communicating (which includes counselling and disciplining), and maintaining employee commitment.