Effect On Decision Making Commerce Essay

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All HR process or activities are dependent upon the managers' efforts to formulate and implement the organizational strategy (Wei and Lau, 2005). Human resource process also include the understanding of the skill, ability and knowledge of the employee and also it can motivate the employee to have impact on their process of performance, If the process of motivate and way that we use by the organization to keep their workers always motivated in doing their job (Neal, West and Paterson, 2005).

Human resource can provide a competitive advantage due to the fact that it is valuable, rare, and sometime were imperfect to understand by any means it cannot be difficult to duplicate competitive advantage that is created through improved management of people (Khandekar and Sharma, 2005). Khandekar and Sharma (2005) also believe that if companies are to survive and thrive in the global economy they require world class human resource competencies and processes for managing them. A critical mass of employee needs to be developed who are gain wisdom or skilled in a particular technology. This can provide source of competitive advantage.

Human resource contributes to create high performance work systems by linking various employees in different departments in the same organization (Brewster, 2007). Organisations use the effectual Human Resource system to increase their competitiveness by investing in employee development (Sutiyono, 2007).


Decision Making is an act of narrowing down the possibilities, choosing a course of action and determining the problem's potential consequences (Harsh Takkar, 2011). Human resource decision making is entails to finding the most effective ways or process in which to investing in people. It sometime involves the determination in where to they have to use money and resources in order to enhance the business and employee performance. International business operations, Human Resource managers have to confront with the changing of global business environment. As part of engaging in the process of human resources, decision making can have a positive impact on the local and overseas operations of a business (Diana Wicks, 2011)

Human Resource decision making process sometime may require human determinants, computers, information systems, and the use of communication technology in addition to the soft data, especially in collecting the collaborative decision making where it may play a key role Human Resources. Collecting data can generated the sources for decision making, for more facilitating and decisive, beside making them the more vigorous, powerful and hard-earned data in HR decision making process (James Yao, 2010).

According to Byun (2003), the quantitative or qualitative techniques have been develop to support human resource management (HRM) activities, it can also be classified as management sciences and operations research, different multi attribute can develop a theory and also multi-criteria decision making, Human Resource Information System can include the use of three expert systems (ES), in decision support systems, and executive information systems (EIS), decision support systems, and executive information systems (EIS) in addition the transaction processing systems and management information systems (MIS) which are convenient been accept as an Human Resources information System. The decision support systems is able to facilitate the use of Human Resources groups to gauge the user opinions and also to readiness, satisfaction, for example like increase their Human Resources Management activity quality, and generate better group collaborations and decision makings with current or planned HRIS services.

Furthermore the various studies had always offered a conclusive evidence to confirm the role of Human Resource Information System plays in to support the strategic in decision-making. There has been a dramatic increase in Human Resource Information System usage. For example, Lawler and Mohrman (2003) in Agyenim Boateng (2007) and in Hussain et. al, (2006) has established the use of Human Resource Information System had consistent increased that over the previous years, the view of different degree of strategic partnership has held by the Human Resource function.

It also has help to reduce the Human Resource budget by automating the information and also reducing the need for large numbers of Human Resource staff by derive the staff to control their own personal information and by allowing managers to access relevant information and data, conduct analysis, make decisions and communicate with others without consulting an HR professional (Awazu Desouza, 2003; Ball, 2001).

Strategic Human Resource Information System always consists of tools that help in the organization decision making. Example that can be used is, strategic decisions may include the associated recruitment and about retaining employees. Furthermore the administrative information usually been held by Human Resource Information System that used to analyze an organization and also to formulate the strategies to increase the value of Human Resource Information System. Some experts also believe that obtaining the access to vital information will help to become an integrated part of many strategic decision-making processes (Kovach, et. al, 2002)

Strategic value can be derived using HRIS tools that assist decision making concerning vital HR functions (Farndale et. al, 2010; Troshani et. al, 2011). For example HRIS can be considered as a tool that provides strategic planners with the needed information enabling them to forecast future workforce demand and supply requirements. Moreover, it can be considered as a tool that helps employers in retaining the right employees. This can be done by paying them competitive salaries compared to the market, and retaining them to develop their skills and abilities to carry out their existing and future jobs.


Information effect can be defined as meaningful organized data (N. Upadhyay, 1992). Human Resource Information System is a concept in which utilized the development of Information Technology (IT) is for effective management of the Human Resource (HR) functions and applications. Human Resources Information System also enables the systematic procedure that been use in collecting, storing, maintaining, and recovering data that usually required by the organizations in finding about their human resources data, information personnel activities and organizational characteristics (Kovach K.A, et al, 2002). It usually acquires to stores, manipulates, analyzes, retrieves and distributes information about the organization's human resources (Tannenbaum S.I., 1990).

The importance of system quality, information quality and system success has been recognized by many researchers as key ingredients in developing a competitive advantage. New scales and measures, along with continued research into organizational effectiveness and user satisfaction are needed (DeLone and McLean, 2003).

In HRIS, efforts to manage the information solely about the personnel were frequently limited to employee names and addresses, and maybe some employee history always be scribbled on 3x5 note cards (Kavanaugh, Gueutal and Tannenbaum, 1990). Human Resouce Information System able to provide the management with strategic data and not only that, but also in recruitment and retention strategies, the merging of Human Resource Information System, collect the data into large scale of corporate strategy.

Data collected from Human Resource Information System provides management with decision making tool. Human Resource Information System can have a wide range of usage from simple spread of sheets into the complex calculations to perform easily (Parry, 2010).

Human Resource Information System guide the organizations in manage all the Human Resource information. Recording the vital part and analyzing the employees and also the organizational information and documents in a way procedure will be In the HRIS, such as employee handbooks, the emergency evacuation and safety procedures (Fletcher P, 2005 & Lee A., 2008).

Competitive advantage in the marketplace usually requires time and accurate information on the current staff and potential to help staff in the labor market. Now day the globalization of computer technology has meet the information, usually requirement has been greatly enhanced through the creation of Human Resource Information System. A basic understanding about assumption behind the book is that the management of employee information will be part in critical process that helps a firm or organization to be able to maximize the use of its human resources and maintain competitiveness in its market (Mohan. T & Michael J. K, 2010).

With an appropriate of Human Resource Information System, the Human Resources employee will be able to help employees to do their own self benefits updates and by that to able to address changes in the organization, beside that the freeing of Human Resource employee will be more effective in planning the strategic functions.

Addition to that, the data that help the employee in manage the management, can develop knowledge of development, career growth and development, and equal treatment will be facilitated. The Manager will be able to access the information they need to legally, ethically, and effectively support the success of their reporting employees (Susan, 2010).

In the place in which the Human Resource Information System appear it has the strong relation involve in the information. Kovach, Hughes, Fagan, and Maggitti (2002) suggest that the Human Resource Information System can become the tool for sharing the knowledge into the area of functional in an organization. Beside that area concerning the admin of Human Resource Information System can be use in daily operations and it is usually in the form of records that hold employee information. Administrative of Human Resource can be more effective when it be use with the Information Technology because Human Resources are better in handling large amounts of information efficiently (Kim Johns, 2005).