This study deals with understanding the function of information systems in human resource management. In this particular assignment, emphasis has been given for gaining information on use of Human Resource Information System and its practical implications by Saudi Arabian Companies in the recent times (Stair and Reynolds 2015). The current segment elucidates the importance of Human Resource Information Systems that is recognized by business organization. Human Resource Information System provides software or online solution especially for the HR activities such as data entry, data tracking, payroll management as well as data information needs and accounting function within a business. The three activities of Human Resource Management include administration of all employee information, treatment as well as examination of member of staff information and application tracking and resume management. Activities include integrating with payroll systems as well as other company financial software and accounting systems at the same time (Stair and Reynolds 2013).
Human Resource Management activities and the role of using information systems within these activities
With the recent development of globalization and knowledge, business organization has started to employ information systems in given functions as well as departments. Addition to that, Human Resource Management is one of the departments that utilize management information systems. HRIS (Human Resource Information System) is a computer-based scheme that is majorly used for managing the management of HR process and actions (Rainer et al. 2013).
Information systems majorly supports workforce planning prevailing in the business organization. Business organization who are involved in continuing strategic preparation like planning for expanding into new market areas, constructing factories or offices in new locations or adding new products for getting information on quantity and quality of workforce for achieving the future goals. Information system even support labor negotiations where the Human resource team complete the negotiation needs by obtaining ad hoc reports as it analyzes organization as well as union positions within the framework (Purce 2014). It is essential for the negotiating team for receiving the ad hoc reports on timely manner by way of conducting labor negotiations.
Some of the key functions of Human Resource Information System include payroll handling, recruitment and appraisals & Performance Management. Payroll handling function of Human Resource Information System help in handling the payroll as it is a complicated task that is filled with conditions as well as company polices (Kehoe and Wright 2013). In this, the HR managers should perform the task every month on each entity basis after calculating the leaves, late hours, holidays as well as overtime and other aspects based on the nature of the work. Payroll handling is a complex job and opened a new type of business as it titled as Payroll Service Provider. Human Resource Information System majorly helps business organization for maintaining the attendance as well as generating the payroll accounting after preparing the pay slips. Recruitment is one of the crucial functions that are performed by HR Department where the human resources work together at the time of decision-making process. Human resource information system help in organizing the recruitment activities such as resume management, section criteria, interview taken, and other activities that are essential in the recruitment process. Appraisals and Performance Management is one of the functions of HRM that is not solely independent but also dependent on other functional departments (Galliers and Leidner 2014). It requires getting score from different departments as well as people such as Project Management. Human Resource Information System supports the activities that help in analyzing the reports as well as work at the time of decision-making process.
To support the above HR function or activities mentioned, it is necessary to highlight the operations of companies that are based in Saudi Arabia for finding out as to how they manage the HR activities by linking it with information systems. Saudi Arabian Airlines is one of the national carrier airline based in Saudi Arabia that operates in airline sector. This airline is the third-largest airlines as far as revenue is concerned after Emirates and Qatar Airways. This airline company operates in domestic and international scheduled flights (Ford 2014). They operate in more than 120 destinations in the countries such as Middle East, Asia, Europe, North America and Africa. This airline industry uses the Human Resource Information System for keeping a check on the payroll system as well as recruiting the right employees for right job. It is essential for the airline company for engaging in the latest technology as it is increasing at a faster pace (Budhwar and Debrah 2013).
On the other hand, Dallah Al-Baraka Holding Corporation is one of the private multinational corporations that are based in Saudi Arabia. This particular company deals in conglomerate with investments such as financial, banking, manufacturing, operations, healthcare as well as transportation and maintenance (Stair and Reynolds 2015). This banking corporation uses Human Resource Information System whereby the employees are recognized and provided with performance appraisals for their performance.
Arab National Bank is one of the private banks that are based in Riyadh, Saudi Arabia that is listed in Saudi Stock Exchange. This bank is among the top ten largest banks in the Middle East as well as has acknowledged an A rank from Standard and Poor’s. These private banks had recently started incorporating Human Resource Information System, as it is advantageous as payroll handling is one of the complicated tasks faced by the banks (Stair and Reynolds 2015). By using the information system, it had been easy for calculating the payroll for the employees who are working for the bank.
At the end of the study, it is concluded that Human Resource Information Systems proves to be most beneficial system that help business organization for reducing the workload. The use of information system in HRM is beneficial for the superiors for maintaining proper records. This helps the human managers for maintaining record of attendance, proceedings of positions that are held by human resources as well as individual pay grade. Payroll information includes requested deductions, gross quantity paid, amount deducted as well as shortest bank deductions and history and pay augmentation. These HR managers should record personal information of employees. Application of Information Systems in HRM helps business organization for competing with the competitors. Using HRIS help Human resource professional in becoming a strategic player. It increases the functionality as well as affordability where HRIS are used widely in the organization of all sizes.
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