An organization requires to have an informed and up to date information system that will enable its adaptation to the modern dynamics and competition in the business environment. Currently, various substantial transformations have emerged and are proving a threat to the modern ways of managing and running an organization. Due to the presence of vast access to information, the department of human resource has been tasked with the mandate to ensure effective Human Resource Information Systems (HRIS), based on the needs assessment. The needs assessment is a process by which a company determines and reports the gaps existing between the current conditions of affairs and the projected conditions. The ability of the HRIS to eliminate the gaps is based on the strategies set by the top management in ensuring the achievement of set goals and objectives.
According to Armstrong and Taylor (2020), it is important to compare and contrast how the HRIS will meet the organization's financial capabilities. Once the need assessment is finalized, and the gaps and wants determined, top management must decide what information system better suites the company. The first step entails the urge for data collection via information gathering on what to expect from the new HRIS. An outline of the plan is presented to top management and major stakeholders. An efficient and effective plan will follow the following steps, project commencement, actual planning, application, findings, monitoring and evaluation, and finally, closing the project.
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The organization executives in line with human resources and the information communication technology departments should always ensure best practices when data is accessed. Confidentiality when sharing information and documents is paramount for the sole purpose of secrecy. Some of the best practices include encrypting sensitive files, managing whom to access data, securing devices and files, effectively disposing data, files, and records, and managing data utilization and acquisition.
Factors to Consider When an Organization Is Upgrading or Implementing HRIS
Employees in an organization are the most critical asset. The HRIS is an application or software that helps manage the treasured asset and usually provides data for management's essence in making informed decisions. The system has to handle tasks such as hiring and recruiting employees, remuneration, promotions, and succession management (Kavanagh & Johnson, 2017). The factors to consider when upgrading or implementing an effective HRIS include;
Objectives
The objectives or aims should match the goals of the company and the role of the HRIS. The system should well improve the administration of the human reserve. Increasing the efficiency and reduction of costs must be considered. The presentation should be in a way that fulfills the norms and culture of the organization. It should be flexible, and in a way, it promotes the confidentiality of data.
Security
The HRIS should protect the staff in terms of data privacy and ensure that it is accurate and timely when needed. It should also remain accessible to only authorized persons. The system should have the element of passwords and emails that will keep only authorized persons to access when the need arises. Privacy is essential and should be implemented with absolute adherence to ethics and integrity.
Functionality
The system should be in a manner that keeps track records of the staff and their profiles. It should be in a way that it functions sufficiently and qualitatively. It should have an enhanced staff establishment, bio-data, and access to all aspects of employee growth and development. Aspects such as promotions, performance appraisal, and delegation of duties and responsibilities are well outlined.
Cost-Benefit Analysis: Projected Implementation Costs and Development of HRIS
Implementing and developing an HRIS will carry costs that can prove a challenge towards achieving the set goals. The costs are due to the hardware, software, and software licenses that come in handy when planning and implementing the system. For instance, the planning team will note that devices such as computers, flash disks, and cables are all hardware equipment necessary for an HRIS. Various computer software such as an antivirus, a windows program, the internet is also vital. Due to government regulations, the system will incur a license fee to ensure it runs according to the law. Cost implementation is undertaken to compare how much the proposed system will amount. Data security will also depend on how well the organization is equipped for its electrical and mechanical models. A needs assessment is vital to come up with what is available and what needs to be purchased. A cost-benefit strategy is essential to minimize the amount of loss incurred and gathering of costs and where to cut down the loss (Suharti, & Sulistyo, 2018). For example, the currency estimate can be done to know when best to buy the items.
The management should ensure that it evaluates the number of employees required to fit in its operation once the system is fully functional. The cost-benefit strategy will address the company if it requires new employees or retrenches some of its aging workforces. Duties and responsibilities must be reviewed and finding the gaps to fill or the overloads to eliminate. The returns on investments (ROI) over four years need to be calculated to determine the highest and lowest costs. The best system should have a high return on investment and cut the cost with great percentages. Reduction of costs should be the ultimate goal to ensure that the system gives maximum benefits.
| Implementation costs | HRIS OPTION A | HRIS OPTION B | POINTS |
| Hardware fees | ✔️ | Option A needs no hardware or software. | |
| Software fees | ✔️ | ||
| Software license fees | ✔️ | ||
| Facility upgrade-electrical | ✔️ | ✔️ | |
| Facility upgrade- mechanical | |||
| Facility upgrade- remodeling | ✔️ | ✔️ | A server unit is of the essence |
| Headcount increase- recruit new skills | ✔️ | Hiring an IT specialist for the server unit. For Option A, charges are to be incurred and will not be managed in the organization | |
| Employee reduction due to the automation of data | ✔️ | ✔️ | Changes in the human resource section may cause job depletion |
| Cost-saving with the elimination of traditional system | ✔️ | ✔️ | Fewer savings due to the reduction of staff and maintaining the new system will incur extra costs. |
| ROI for 4 years | HIGHEST | LOWEST | |
| BENEFITS ANALYSIS | HRIS OPTION A | HRIS OPTION B | POINTS |
| Accessibility | ✔️ | Option A can be accessed from anywhere; option B server unit in the company | |
| Convenience | ✔️ | Option A needs no hardware or even upgrades; Option B requires hardware or software. | |
| Speed to deploy | ✔️ | The implementation process will be long for Option B | |
| Customization/ the ease of integration | ✔️ | No customization for Option A |
Recommendations to Ensure Balance of Security and Confidentiality of Information by HRIS
The organization should have a sizeable number of employees ranging between 300-500
employees. Such will help the system to manage the staff effectively.
The organization must be able to enhance data security and ensure the confidentiality of
essential files. The HRIS itself must run in a way that promotes confidence and morale to all employees.
The urge for self-servicing preservation and the staff's accessibility will help the HRIS
serve the purpose of informed decision-making. The control of the system should entirely be in the hands of the information technology and human resource sections.
The cost-cutting strategy must be well analyzed and incorporated when implementing the
HRIS. Even if the cost arises from equipment purchase, the planning team should ensure the system is not that enormous to take all the company's funds.
The planning time should work in conjunction with the top management and the major
stakeholders to ensure a successful formulation and implantation of an effective HRIS. The process should bring a positive system, one that is flexible and provides clarity and accuracy on the data it provides.
The factors of functionality, security, and objectives of the HRIS should be well
understood to prevent discrepancies that might bring about the system collapse. The security and confidentiality of accessing data should well be outlined.
References
Armstrong, M., & Taylor, S. (2020). Armstrong's handbook of human resource management practice . Kogan Page Publishers. http://196.43.179.3:8080/xmlui/handle/123456789/1069
Kavanagh, M. J., & Johnson, R. D. (Eds.). (2017). Human resource information systems: Basics, applications, and future directions . Sage Publications. https://books.google.com/books?hl=en&lr=&id=x4I5k973oqkC&oi=fnd&pg=PR1&ots=wjR7-RKzoB&sig=AjGqs2QSKBvU5KLuOtbo0SlI6D8
Suharti, L., & Sulistyo, P. R. (2018). The implementation of human resources information system and it’s benefit for organizations. Diponegoro International Journal of Business , 1 (1), 1-7 https://ejournal2.undip.ac.id/index.php/ijb/article/view/2371
