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Advantages and Disadvantages of HRIS in HRM

Paper Type: Free Essay Subject: Information Technology
Wordcount: 1553 words Published: 21st Sep 2021

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Human Resources Information Systems (HRIS) have evolved since the 1980s from relatively simple computer applications to virtual vaults of sophisticated human resources information and processes.

HRIS also is the name of the human resources discipline for HRIS specialists and other human resources professionals involved in the technology for employment and personnel matters.

An HRIS is used for employment actions such as applicant tracking, performance management, attendance, compensation and benefits management, work force analyses, and scheduling.

A very popular use of HRIS is employee self-service. Many employers are utilizing their HRIS to supplement the human resources department staff by enabling employees for find answers to common questions they would have asked a human resources representative.

An employee self-service component can be used in a small business setting because it can be configured to accommodate work places with a dozen employees to companies with 10,000 employees.


Human Resources Information System, is a system that lets you keep track of all your employees and information about them. It is usually done in a database or, more often, in a series of inter-related databases.

These systems include the employee name and contact information and all or some of the following:

  • department
  • job title
  • grade
  • salary
  • salary history
  • position history
  • supervisor
  • training completed
  • special qualifications
  • ethnicity
  • date of birth
  • disabilities
  • veterans status
  • visa status
  • benefits selected

Any HRIS include reporting capabilities. Some systems track applicants before they become employees and some are interfaced to payroll or other financial systems.

An HRIS is a management system designed specifically to provide managers with information to make HR decisions

This is not an HR system…it is a management system and is used specifically to support management decision making .

The need for this kind of information has increased in the last few years, especially in large and/or diverse companies, where decision making has been moved to lower levels

And large companies generally have the advantage when it comes to HRIS’s…the cost to develop an HRIS for 200 people is usually close to that for 2000 people…so it is a better investment for large companies…larger companies tend to have systems that have a fair degree of customization

Therefore, HRIS can be defined in simple words as given below:

Human Resource Management Systems (HRMS, EHRMS), Human Resource Information Systems (HRIS), HR Technology or also called HR modules, shape an intersection in between human resource management (HRM) and information technology.

It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the planning and programming of dataprocessing systems evolved into standardised routines and packages of enterprise resource planning (ERP) software.

On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible.

HRIS Advantages

Specialist can manage :

  • compliance with federal and state laws
  • streamline processes for recruitment and selection produce
  • analyses data and reports for internal and external use
  • ease of use for qualification computer technology specialists,
  • accuracy of information
  • ability to perform HR audits using any combination of parameters
  • Employees and managers can locate answers and information quickly without the need to consult an HR representative every time.
  • An HRIS can reduce the amount of paperwork and manual record keeping
  • It retrieves information quickly and accurately
  • It allows quick analysis of HR issues

HRIS Disadvantages

  • human error during information input
  • costly technology to update your system
  • malfunctions or insufficient applications to support your human resources needs
  • finding a qualified specialist with human resources functional area knowledge is difficult.
  • Unauthorized Access
  • Specialized Knowledge
  • Data Entry Errors
  • The cost per-hire for another employee in a specialized field may be a stretch for some small businesses

New Technology

With the changing world and constant new technology that is available, managers need to be aware of the technology that will increase effectiveness in their company.

Human resource information systems (HRIS) have increasingly transformed since it was first introduced at General Electric in the 1950s.

HRIS has gone from a basic process to convert manual information keeping systems into computerized systems, to the HR Information Systems that are used today.

Human resource professionals began to see the possibility of new applications for the computer.

The idea was to integrate many of the different human resource functions.

The result was the third generation of the computerized HRIS, a feature-rich, broad-based, self-contained HRIS.

Many companies have seen a need to transform the way Human Resource operations are performed in order to keep up with new technology and increasing numbers of employees.

Terasen Pipelines

Moved its headquarters from Vancouver to Calgary to be closer to the oil and realized a major growth in employees.

In the past recording keeping was done on paper and with spreadsheets.

Mangers at Terasen realized that there was a need to change to a more computerized system and looked into different HRIS vendors.

By making the move to a HRIS system, Terasen is able to keep more accurate records as well as better prepare for future growth.

WORKSource Inc.

To meet the challenge of handling 100 new employees, WORKSource Inc. acquired Web-based technology programs from GHG Corp. like electronic pay stub, electronic timesheet software, time-off system, and human resource information system (“Tips,” 2006).

By adapting these new programs, WORKSource was able to reduce waste and cost.


HRIS systems may track performance reviews and performance issues as part of its management of employee information. Higher-grade systems may also conduct mathematical functions related to this data in order to rate employees based on performance abilities. This information can then be used to make business decisions such as whether to offer an employee a promotion or a boost in pay.

Employee Information

All HRIS software maintains a database of information on employees past and present, including such data as pay rates, department, raises and personal information.


Most HRIS software does at least some basic form of payroll processing. Payroll begins with tracking the time spent on certain activities, usually as reported by the employee him or herself. This reporting is usually done through some sort of software or web application, though some people track work time on hard copy forms that then have to be scanned or transcribed into the computer system. Payroll systems will also conduct necessary accounting and may even print the actual paychecks.

Benefits Administration

HRIS systems that conduct payroll operations also usually manage benefits information, such as medical coverage and retirement accounts. These tie in closely with payroll but are also tracked alongside other employee information such as salary and paid time off.

Work Time

HRIS systems generally include the capability of tracking employee work-time, especially where employees are paid hourly or are on contract.

Types of Software

HRIS systems come in a variety of software configurations. Some systems are hard-coded for local installation on a computer or network at the business’ location. Other systems conduct business online as a Software as a Service (SaaS) system, usually over the Internet via web sites or Intranet systems. Finally, some application vendors may provide service as a blend of these types of software.

Modular Systems

Different software packages have different capabilities, and some vendors may offer different tiers of service. Basic services are generally provided as part of a package with additional functions being available as modules that can be plugged into the basic package of software


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