Over the years, company had continually found a way to improve Human Resource Management in handling the employees. This been done to support all the activity involved the company management such as employees benefits, employees satisfaction in workplace and easier way in handling or support in business operation. One of the solutions is using Hunan Resource Information System (HRIS).
HRIS is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll, management, and accounting functions within a business. Normally packaged as a database, hundreds of companies sell some form of HRIS and every HRIS has different capabilities. Typically, HRIS provide management of all employee information, reporting and analysis of employee information, company-related documents such as employee handbooks, emergency evacuation procedures, and safety guidelines, benefits administration including enrolment, status changes, and personal information updating, complete integration with payroll and other company financial software and accounting systems and applicant and resume management.
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The HRIS that most effectively serves companies tracks such as attendance, pay raises and history, performance development plans, training received, disciplinary action received, personal employee information, and occasionally, management and key employee succession plans, high potential employee identification, and applicant tracking, interviewing, and selection.
An effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. With an appropriate HRIS, Human Resources staff enables employees to do their own benefits updates and address changes, thus freeing HR staff for more strategic functions. Additionally, data necessary for employee management, knowledge development, career growth and development, and equal treatment is facilitated. Finally, managers can access the information they need to legally, ethically, and effectively support the success of their reporting employees.
As we know that not all the company now use this HRIS. Some small company still used the traditional way in handling the management and the employees. They maybe do not have an enough capital to buy the HRIS software. They also do not concern how important of HRIS and how effectiveness the HRIS, because they think that they are a small company, so do not need the software. Trough this research, it will give a depth understanding on the role of HRIS in Human Resource Management and the effects of it.
BACKGROUND OF STUDY
The spacious arrangement of HRM activities for example, planning, recruiting, selection, and training just to mention but few place enormous responsibilities on supervisors and managers alike. These embrace analyzing jobs, planning labour needs, selecting employees, orienting and training employees, managing compensation, communicating (which includes counselling and disciplining), and maintaining employee commitment.
As we know, human resource management (HRM) issues have been major concern for managers at all levels, because they all meet their goals through the efforts of others, which require the effective and efficient management of people (Dessler et al., 2000). In order to get better understanding on the role of human resource information system (HRIS) in strategic human resource management (SHRM), we are conducting this research. The main idea to show how the performance of the HRIS can be improves competencies of human resource management task. As the business need to be competitive in a market, they have increase their performance same as the human resource management. Strategic human resource management is one of the important components in the company. They are handling the people, which are employees, managers and all links with the company.
The human resource information system (HRIS) is considered to be of strategic as well as management importance. In research as well as in practice, it believed that an effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. The company will need to select a Human Resources Information System and customize it to meet their needs.
The greater degree of human resource information system is strongly associated with higher levels of performance, which has been a prevalent assumption behind much human resource information literature.
Review on the past research, it had focus more on the effects of the role of human resource information system towards strategic human resource management by impacts of job roles and the size of the company. This research focuses more on the element of job roles, size of the company and competencies of human resource task.
1.2 Problem Statement
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What are the effects of Human Resource Information System (HRIS) on Strategic Human Resource tasks on different company? Will the job roles of each HR employees and competencies of HR tasks affect the likelihood of a company to use HRIS? Is there any difference on the likelihood of using Human Resource Information System (HRIS) in comparison of Small/Medium size and Large size companies?
1.3 Theoretical Framework
The role of Human Resource Information System (HRIS) in Strategic Human Resource is the main interest of the study. There are three main independent variables in this study. Therefore, the competencies of Human Resource tasks, job roles and the size of a company are expected to be the independent variable, this variables will determine the likelihood of a company to use Human Resource Information System (HRIS) in managing the Human Resource system. Thus, the competency of the strategic Human Resource task is the dependent variable in the study. The usage of HRIS will support the Human Resource management by helping managers and employees to deal and organize the information and data in a more correct manner which directly will increase the performances of the Human Resource department and beneficial to the company. Therefore, Human Resource Information System (HRIS) is the mediating variable in the study.
1.4 Research Framework
INDEPENDENT MEDIATING DEPENDENT
VARIABLES VARIABLE VARIABLE
1.5 Research Questions
This research study on the role of HRIS in increasing the performances of Human Resource department and switch the system into strategic Human Resource management. Examines how will the job roles of human resource employees and managers in different size of company see the effects of HRIS on strategic human resource management. The research title is too wide to be studied. So we are developed the research question in order to narrow our studies and more focus. The research questions are:
Will HRIS increase the performances of a company? Will HRIS contribute to SHRM?
The usage of HRIS is affected by the job roles of HR employees?
The competencies of HR tasks will affect a company of using HRIS?
The size of a company will affect the application of HRIS in that company?
1.6 Research Objective
There are four research objectives in this research study, which are:
This research is to examine the role and contribution of Human Resource Information System HRIS in strategic Human Resource Management.
Determine whether job roles of HR employees will affect the usage of HRIS.
Determine whether the usage of HRIS affect by the competencies of HR tasks.
Find out will the size of a company will affect the application of HRIS in the company.
Hypothesis 1 (HRIS)
H1: The usage of HRIS will support the Human Resource management by helping managers and employees to deal and organize the information and data in a more correct manner which directly will increase the performances of the Human Resource department and beneficial to the company. HRIS have effect on strategic human resource management.
H0: The usage of HRIS will not support Human Resource management and it won't increase the performances and won't affect strategic human resource management.
Hypothesis 2 (Job Roles)
H2: The job roles of HR employees and managers will affect the likelihood of usage of HRIS in a company. Higher level of management position will have higher percentage of using HRIS. HRIS will then affect the strtegic human resource management of a company.
H0: The job roles of HR employees and managers will not affect the likelihood of usage of HRIS in a company.
Hypothesis 3 (Competencies of HR Tasks)
H3: The usage of HRIS is affected by the competencies of HR tasks of each HR employees. Using of HRIS affect the strategic human resource management of a company.
H0: The usage of HRIS is not affected by the competencies of HR tasks of each HR employees.
Hypothesis 4 (Size of Company)
H4: The size of a company will affect the application and usage of HRIS in the company and affect the strategic human resource management of a company.
H0: The size of a company will not affect the application and usage of HRIS in the company and will not leave affect on the strategic human resource management of a company.
2.0 LITERATURE REVIEW
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Methodology is a collection of ideas, concepts or even theories that related to a certain field of inquiry. Methodology also brings the meanings of the analysis of the principles of methods, and rules which are required by a discipline or an research, it is the systematic study of methods that are, can be, or have been applied within a discipline and research, and a particular procedure or set of procedures.
The rules and the system of wide principal from the specific methods and procedures are needed in order to derive understanding to different situations or conditions, which also means will be able to solve problem occurred within the principal of study. Methodology is a set of practices but not a set of formulas.
Methodology has a huge impact on the study and research as it control the ways of collecting the data needed. From the data collected, methodology then arrange them in the proper form from raw data into logical relationship which present the meaning of the data collected. From the meaning of the data, conclusion or series of conclusions that lead to an explanation of a research and knowledge will finally be issued.
3.2 SAMPLING DESIGN
In this study, to collect the data for the research, the targeted population is the Student of Master and PHD in Business Administration, City Campus, University of Malaya, Kuala Lumpur. Most of these students are workers and employees in private sector and also in government sector. The data collection was conducted by using random sampling method to examine the effect of job roles, HR tasks competencies and size of company towards the usage of the Human Resource Information System HRIS which will contribute to the strategic management of human resource of a company.
To examine our study's hypothesis, we constructed questionnaires to collect the data that we needed to come to a conclusion in this research. The questionnaires consists of 36 questions, each independent variable has 10 questions. The questionnaires had distributed to 100 respondents. These respondents are from different backgrounds such as different position in company, the number of years experienced and income level. All 100 respondents had provided us with sufficient information in our questionnaires without leaving any blanks for the 36 questions. With this complete questionnaire, the 100 respondents are acceptable to be the research group for this study.
100 respondents consist of 53% (53) females and 47% (47) males. The research group consists of 46% Malay, 41% Chinese and 13% Indian. These study group's age most of them are age between 15- 25, the least number of respondents are age 46 and above.
3.3 DATA COLLECTION METHOD
The data collection method which suit best for our research is questionnaires. Questionnaires are more flexible and consume less time to collect data. Besides, questionnaire more easy to reach wide range of people. Questionnaire is based on large representative samples obtain from respondents, and the data obtained are use to conduct quantitative analysis, then conclusion can be make from the quantity analysis that been calculated. Questionnaire is one of research instrument which consist of a set of related questions for each variable in the study that been conducted and it is for the gathering information from respondents or focus groups.
In our research, the questionnaires which prepared by us were distributed to the Master and PHD students in Business and Accountancy, University Malaya. They are the most suitable group to conduct our research as they are the employees from either private or government sector, they are able to provide us the information we need in complete our study in Human Resource Information System.
3.4 DATA SOURCE
The data source that we collected in our study is primary source of data. We are using primary source of data to obtain new information from the focus group to increase the real and correct result in our study instead of getting secondary source from previous study. We can then make a more reliable conclusion base on this primary source of data.
3.5 QUESTIONAIRE MEASUREMENT AND DEVELOPMENT
There are two sections in our questionnaires. The first section is about the demographic information which included questions on gender, age, ethnic group, occupation, education level and monthly income. All this questions are measure by using nominal scale.
While in the second section, there are 10 questions for each variable which are on job roles, competencies of human resource tasks and the size of company. In this section we are using likert scale. The respond will be scale from 1 to 5. 1 is "strongly agree", 2 is "agree", 3 is "neutral", 4 is disagree" and finally 5 is "strongly disagree".
The demographic information that been obtain does not indicate the validity of the data that been collected in our research. Therefore, the data is free from responds and method bias in conducting our research.