Human Resources System

Human Resource Information System

What Is The Role Of The Human Resource Information System?

Human Resource Information System

Human resource information systems provide the support infrastructure for the strategic aspects of human resources management. With business processes and requirements in a constant state of evolution, aligning it information systems with company goals and objectives is an ongoing challenge. This is no more so than in human resource management. Building the information architecture to support and facilitate organizational decision making not only improves operational efficiency but contributes to an increase in a companies bottom line. The following examines the central core tenants of an hr information system.

Payroll system: Any business whether large or small has to have a centrally integrated payroll system. Paying wages correctly, deducting taxation, calculating accrued leave, superannuation and ancillary benefits is a difficult set of data to track and manage without supporting information technology. It is, therefore, an important component of any human resources information system.

Financial management compliance: Companies must manage financial regulations that are set at a state, federal and national level. Whether it is superannuation, taxation or public disclosure requirements, companies need centralized data management that can facilitate, report on and expedite information. Compliance failures usually result in costly fines so it is essential that a company have this are of the business in order.

Data Integrity: Centralized databases form the backbone of human resources information systems. This includes the systematic storage, retrieval and backup of essential business data. Without adequate security protocols and backup procedures, companies would face potential loss of key data which would be ultimately time consuming to restore and costly to replace.

Personnel management: This is critically important in organizations that maintain records on employee performance. Performance reviews, credentials, past achievements, skills, qualifications and experience are sometimes recorded in companies for benchmarking assessment. In the case where companies cross promote, having adequate records to match potential candidates is important.

Budgeting: Providing ongoing cost measurement, forecasting and reporting comprises part of the human resources accounting process. Running reports to determine budgets, allocate resources, anticipate shortfalls and compile key performance reports for management is part of the job responsibilities of the human resource manager. Having the correct reporting and software tools can greatly assist with information compilation.

The above information provides an introduction to human resource information system requirements, strategically aligning business and human resource objectives is essential for peak business performance. Saving time, producing timely information and improving operational performance of the companies hr division is the primary objective of an integrated hr information system.

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