Using HRIS gives firms several advantages which
are increasing competitiveness by improving HR
operations and management processes; collecting
appropriate data and converting them to information and knowledge for improved
timeliness and quality of decision making ; streamlining and enhancing the
efficiency and effectiveness of HR administrative functions; shifting the
focus of HR from the processing of transactions to strategic HRM; reengineering
HR processes and functions; and improving employee satisfaction by delivering
HR services more quickly and accurately.
The ability of firms to harness the potential of HRIS depends on a
variety of factors, such as the size of the organization, with
large firms generally reaping greater benefits; the
amount of top management support and commitment; the availability of resources;
the HR philosophy of the company as well as its vision, organizational culture,
structure, and systems; managerial competence in cross-functional decision
making, employee involvement, and coaching; and the ability and motivation of
employees in adopting change, such as increased automation across and between
functions.
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