The Impact Of Hris On Time Savings Management Essay

Published: November 30, 2015 Words: 1310

Times saving are far from automatic when computerizing the human resources function and the amount of time saved depends largely upon the users ability to fully utilize the software's capabilities. That's why training is always important with any new application. Here are several examples of companies that have developed innovative ways to replace human effort with software and reaped the reward in dramatic time savings is maintaining records for the New Yorker Magazine's complicated vacation plan used to be a dreary manual task because the plan didn't follow the unalterable format of the DOS-based human resources database the magazine previously used. According to the magazine switched to !Trak-It HR (!Trak-It Solutions, Sunnyvale, California), they were able to take advantage of the program's relational structure and flexibility to handle all of the required calculations for vacation accrual automatically in the time saving that they can apply on it. (Jerry Fireman 2011).

According to Mark Fryer has accepted the position of Director of Human Resources with Furst-McNess Company, an agricultural feed supplier, the human resources staff consisted of five people working with a paper-based manual record-keeping system. There was obviously considerable room for improvement through computerization but Fryer never would have guessed at the time the extent of the savings he would be able to achieve. The department of Human Resources Department already had a computer in place so he started with an Excel spreadsheet based system Human Resources Information System has saved Furst-McNess a tremendous amount of time in a lot of little ways. For example, the time required to complete the EEO-1 affirmative action report, which the company files once a year has been reduced from 8 hours to less than an hour. At the same time, the level of service offered by the HR department to its customers and the employees and management of the company has been substantially improved. (Jerry Fireman 2011)

The implementation of Human Resources Information System in the human resource department has shown that it contributes considerably in saving time .The common benefits of HRIS frequently cited in studies include, improved accuracy, provision of timely and quick access to information. In addition, if human resource management is integrated with information systems, it helps in saving time. The usage level of HRIS is measured and its impact is analyzed in saving the time according to designation level of the selected employees. (Dr. M Nishad 2012).

Time saving is one of the barometers against which the efficiency of any IS system can be gauged. According to (Usman sadiq 2012) in his survey study show that 75% of the respondents said that the system had a positive impact on some administrative functions such as time spent on recruiting, routine staff decisions, processing of paper work, and error correction. However, only half said that it had actually helped in improving the communication of information within the organization. Besides that, only a third of the survey by employees believed that HRIS can decrease the time spent on training. (Usman Sadiq 2012).

One of the general purported benefits from the findings of HRIS applications is to reduce time spent on Human Resources process acording to (Kovach and Cathcart, 1999; Targowski and Deshpande, 2001) and yet the results show that the effects of the HRMS on time savings are mixed. Again based on their finding study has shown that, the traditional HR tasks of recruiting, training, and staffing were not positively effected, as there was little or no perceived decrease in the amount of time spent on these activities or on the time spent communicating information within the institution.

According to (Goldy Mahajan 2012) in his study contributed that at least half of the respondents, however, believed that their institution had realized some savings in the time spent on correcting errors. The time saving with uses Human Resources Information System (HRIS) in the Human Resources professional it can be assigned to other, more important tasks for the company (Mohan Thite 2011). One of the major advantages of the design, development, and implementation of HRIS is to reduce amount of time the HR staff have to spend on transactional activities, allowing the staff to spend more time on traditional and transformational activities (Micheal 2011).

THE IMPACT OF HRIS ON COST SAVINGS

The impact of HRIS on cost savings ( Alex 2010) in his perception that HRIS will create cost savings in Human Resources Department that can turn their attention to provide better analysis of recent data and makes a innovative uses of the HRIS to provide better and more accurate data upon based on it strategic decisions. Some others authors have proposed that use of a HRIS can reduces HR costs by computerize information and reducing the need for large numbers of HR employees; by helping employees to control their own personal information; and by allow managers to admission related information and data, conduct analysis, make decisions, and communicate with others without confer with an HR professional (Awazu & Desouza, 2003; Ball, 2001).

The implementation of information technology in their human resource department has shown that it contributed significantly in cost cutting. (Dr M. Nishad 2012) .The common benefits of HRIS frequently cited in studies include saving of costs. According to Dipankar Sarkar (2007) in his contributed study identified that the HRIS practice in Human Resources Department the major objectives have been to find ways to reduce costs and calculate human resource returns meaningfully through a confusion of indirect costs and has long term benefits..(Thite 2011).

There are few clear cut ways to assess the value of Human Resources Information System. While there are also have a dimensions for administrative HRIS such as cost reductions in Human Resources departments, it is difficult to measure specifically the return on investment and specific improvement. (Kavanagh 2011).

It is also important to note down that the cost savings is to reducing staff time to create the report is not the only benefit from support of computer-based HR Department (Mohan Thite and Michael J. Kavanagh 2011). One of the proposed advantages of human resource information systems is that processing costs should been reduces to ensure that cost savings can been made. (Kovach and Cathcart, 1999). According to (Kovach and Cathcart, 1999) regarding cost reductions for public universities, the apparent effects of the HRIS were insignificant. Few, if any, of the HR directors perceived any decreases in training, recruiting, data input or hiring operating expense or in the amount spent on HR salaries.

HRIS can be used as a tool to enhance efficiency of HR information management by reduction of overhead costs by task computerization and process automation so that the number of HR specialists required goes down (Thite 2011). Besides that, HRIS also helps to reduce HR costs by automating information and reducing the need for large numbers of HR employees by helping employees 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).

According to the survey findings that has been made by (Wyatt's 2005) shows that cost reductions can been covered by Human Resources Department. However, the extent to which HRIS is used in a strategic fashion differs across organizations with the vast majority of organizations continuing to use HRIS simply to reduce costs (Bee & Bee,2005). HRIS can been uses to contribute by cost reductions, quality or customer satisfaction, and innovation in Human Resources Department(Broderick and Boudreau, 2006). In addition, according to (Beadles 2005) the actual cost saving from HRIS in every organization, it shows the result there were pretty similar to their researches, such as the one carried out by him said that only 37.5% of the respondents believes that the HRIS had actually decreased the cost of hiring and the recruitment expenses or the salary of HR staff.