The successful implementation of a human resources information system (HRIS) results in tangible and intangible costs that may affect a business's performance significantly. Tangible costs include computers purchased for implementing new software that makes HRIS more efficient. Scholars assert that tangible and intangible costs of executing an HRIS plan may impact the organization in diverse ways.
Hardware purchase for executing HRIS systems is one of the tangible costs that ensue from the project. Organizations that want to adopt an HRIS plan must acquire new technology to increase the efficiency of organizational human resources practices (Sherman, 2019). Thus, firms may need to procure new computers, laptops, or tablets for their human resources personnel. The impact of the cost that ensues from purchasing new technological hardware is that human resources responsibilities, such as candidate selection, hiring, and firing employees, are automated, which becomes more comfortable to handle. Thus, the cost of procuring new technological hardware to advance HRIS systems positively impacts the organization's internal processes.
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The failure to implement an HRIS system may also result in intangible costs. For instance, an organization that does not have an automated hiring system may repel competitive candidates who would have enhanced the company's performance. Thus, the resultant cost of failure to have an HRIS system would be that the company continuously hires underperformers who derail and disregard the organization's missions, visions, goals, and objectives (Class Readings, 2015). Businesses that do not have efficient HRIS systems may then consistently underperform because they attract employees who lack self-motivation, commitment, and involvement in their work. Eventually, the organization may be declared insolvent. Thus, the failure of implementing an HRIS system will result in attracting incompetent employees who denigrate the organization's competitiveness.
HRIS is an essential aspect of human resources practices that propels a business's success significantly. Tangible costs that result from implementing the strategy, such as hardware purchase costs, impact the business positively by improving HR practices. However, companies that refuse to execute the HRIS plan may accrue intangible costs, such as incompetent workers.
References
Class Readings. (2015). Designing and Managing a Human Resource Information System [PDF Document].
Sherman, F. (2019). What are tangible costs & intangible costs?. Retrieved from https://smallbusiness.chron.com/tangible-costs-intangible-costs-51412.html
