Developing the Initial Framework of HRIS

Hilkka Poutanen and

Vesa Puhakka

Department of Information Processing Science, University of Oulu

PL 3000, 90014 Oulun yliopisto, Finland

Department of Management and Entrepreneurship, University of Oulu

90014 Oulun yliopisto, Finland

Abstract. The history of human resource information systems (HRIS) stretch

back to the 1960s when human resource (HR) activities started to increase in

organizations. In the 1980s researchers and practitioners became interested in

HRIS and in the 1990s several studies, articles, user experiences, opinions and

descriptions were published in journals, magazines and internet. Many different

issues have arisen in these discussions. Some researchers have constructed

models and definitions for HRIS. However, there is a lack of a framework

which constructs a description out of the fragmented discipline of HRIS. In this

workshop paper we introduce our initial framework to underline the importance

and need to consolidate the knowledge of HRIS. It bases on the literature and

internet site reviews. The framework does not intend to cover the HRIS field as

whole but to signal that it is time to construct frameworks to support and lead

the research and the theory making in HRIS. Many research questions are stated

in the referenced articles. Now it is time to start finding the answers.

1 Introduction

In the literature different definitions of the human resource information systems

(HRIS) are available. Broderick and Boudreau [7] define HRIS as follows: it is “the

composite of databases, computer applications, and hardware and software that are

used to collect/record, store, manage, deliver, present, and manipulate data for Human

Resources”. Kossek et al [18] use this definition as well. Kavanagh, Gueutal and

Tannenbaum [17] offer another definition: “A human resource information system is

a system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent

information about an organization’s human resources”. The third definition, from

Walker [36], also used by Kovach and Cathcart Jr. [19], states that “a Human

Resource Information System is a systematic procedure for collecting, storing,

maintaining, retrieving, and validating data needed by an organization about its

human resources, personnel activities, and organization unit characteristics”

The similarity of different HRIS definition could be interpreted as evidence that

the researchers have worked by themselves, not knowing anything or very little about

each others’ work. To some extent, the examination of HRIS articles and papers

confirms this interpretation. Although researchers have later referenced each others

articles, there is no collaboration between the researchers. The issues related in HRIS

are fragmented, and the discipline is waiting to be consolidated.

Poutanen H. and Puhakka V. (2007).

Developing the Initial Framework of HRIS.

In Proceedings of the 1st International Workshop on Human Resource Information Systems, pages 45-54

DOI: 10.5220/0002415200450054

 SciTePress

Therefore, it is significant that efforts should focus on the different studies and

research of HRIS, as there are multiple issues and viewpoints which should be

evaluated before the HRIS acquisition and during the HRIS implementation and use.

Many discussions are in their beginnings or are still waiting to be opened in this

discipline. We argue that owing to the lack of the initial general view and framework

on HRIS research, activities are more focused on the researcher’s own interest area

than on the contributions which support the whole HRIS discipline. In our paper we

present one initial framework which contains some of the many relevant issues which

should be studied properly. The framework does not aim to cover the HRIS field as

whole but to signal that it is time to construct frameworks to support and lead the

research and theory making.

2 The Basics of the Initial Framework

Our initial framework of HRIS bases itself on the literature review. We also study

internet sites of HRIS business and practices which have given us an empirical

background to explore our knowledge. When we examine the literature and articles,

we perceive that the issues these articles were mainly discussing can be divided into

four basic categories. The basic categories of our initial framework are presented in

Figure 1.

Fig. 1. The Initial Framework of HRIS with the basic categories; IT/IS, Organizational Use,

Development and Research.

The articles which discuss particularly technological and software design issues are

gathered into the Information Technology/Information Systems (IT/IS) category. The

Organizational Use contains articles which focus mainly on application areas, users,

and discussion of the usage and utility of HRIS. The third category includes the

articles which discuss the historical, current and future development of HRIS. The

articles which propose the theoretical concepts and models of HRIS are situated in the

Research category. The categories overlap with each other, which reveals that the

issues could be discussed in one or several categories. However, the reason for

dividing them underlines the different viewpoints on the HRIS issues. In the

following chapters some issues of the categories are described.

3 Investing in Information Technology and Information Systems

Employee data were first automated in the 1960s. Since the 1980s there has been

considerable discussion about HRIS and its role in the organization. Many predictions

have been made as to how soon organizations will implement HRIS. However, the

acquisition of HRIS has often been under critical consideration. Human resources and

HRIS are costs for the organization. Earlier massive information systems and

computers were expensive. Later when personal computers and technology were

developed the price of the computers and systems decreased but the employee costs

increased. The consideration remains. [9,12,17].

When the organization invests in technology and software the main goals are to

gain benefits and to reduce costs. Technology allows it possible to cheaper, easier,

and faster data processing than before. Also, it enhances the accession to more

detailed information and data. [13]. In the introduction we presented three definitions

of HRIS. Definitions of HRM include the activities associated with employees. These

activities typically consist of recruiting, training, promoting, terminating, record-

keeping and meeting various legal requirements. When we compare the definitions of

HRM and HRIS together it is apparent that HRIS is the automation of HRM tasks and

functions. The manual systems have been converted to databases and electronic

systems.

In other words, the information technology provides the technical and computer

based solution for HRM. The software solutions support the HR tasks and functions

which have emerged from the development of human resource management (HRM).

The HRIS definitions list those tasks and functions. So, IT provides the developed

electronic base to software, and IS challenges technical solutions through

applications. IT/IS serve people and the tasks they perform.

One relevant research issue is the cost-benefit analysis of HRIS. What would it

means in short and long term organizational planning? Are the investments HR costs

or benefit for good HR work.

3.1 Information Technology Means Changes

Benefits and costs are at the top of the list when we talk about the reasons for

investing in technology. What other reasons there could be? What background factors

lie behind these reasons? Only a few of these background factors are introduced next.

When there are a lot of employees’ data to be stored which data is important for

decision-making? The technology itself is easier to use than a few decades ago but

what knowledge can the users draw from it? Information networks provide more

possibilities to connect different units in the global organization. Can user rights

provide security and limitations to access the data?

If there is an HR staff in the organization, then they usually collect and take care

of the data in the system. [4,9] If managers are responsible for HR functions, they use

the HRIS. Whatever the case, it is obvious that automation and technology bring

changes to the functions and tasks. One relevant question is do the users have

competencies to use the technology? What should be done before implementation?

What should the organization do with the system? What does legislation say about

data privacy?

Although the changes are unavoidable, they do not imply a negative situation.

Technology provides ways to examine the daily HR functions in an organization and

make any necessary renewals. Thus, the research could focus on the changes that

HRIS has made in HR routines and activities.

3.2 Designing Information Systems

When information systems are designed, implemented and used, the basic and simple

issue is to remember for what purposes IS are available. There is a variety of IS on the

market which are advertised as the best solution to run organization’s HR functions.

Therefore, the mangers and HR staff should have the competence and knowledge to

evaluate the IS before making decisions to purchase HRIS.

This leads to the question of who is capable and experienced enough to evaluate

and design HRIS? Managers, HR professionals or IS professionals? We can examine

the question trough the user satisfaction and the system usage as Haines and Petit [12]

did. The need for information is great. However, technology, computerization and

HRIS can lead the management being handled by HR professionals. The managers do

not use HRIS if they are unfamiliar with the system and they would therefore not

obtain the data needed. Furthermore, managers with longer work experience may be

less satisfied with the HRIS than younger managers who are more familiar with the

technology and systems. User satisfaction and system usage have become two

common measures of system success in HR function as well. [12] We may conclude

that to design HRIS it is important to underline that all knowledge is available during

the development process.

In his article, Niederman [24] presents the socio-technical approach to information

systems. According to Niederman, it “requires recognition of the inextricable link

between information technologies and humans as designers and users” [24]. He has

studied global organizations, and constructed five interaction areas for information

technology and human computer designers/users. The areas are as follows: 1) using

information technology to support the human resource strategy of global

organizations, 2) using information technology to support the generation and

distribution of organizational learning, 3) using human resource management

techniques and programs to support the work of information systems professionals, 4)

using human resource management techniques and programs to support the work of

global “end-user” or knowledge workers, and 5) national and regional policies to

support technical and human resource infrastructures. He proposes several research

questions for each of these areas to study the importance of the issues. [24].

4 The Organizational Use of HRIS

The Organizational Use category has many issues. The organization could invest in

top technique and intelligent systems but the question is how they can be integrated

into the daily tasks and organizational activities. Also, the company size indicates

how HRIS is used, and who uses it. Ball [4] has studied the use of HRIS according to

the number of employees. At the end of the paper she summarizes the survey results.

In brief, HRIS is used more in large organizations than in small ones. Furthermore,

HRIS is still being used administratively although the information and data support

more other HR activities. Ball says that her research provides a platform of future

work in this area, as well as offers several issues to be studied. [4].

Six years later Hussain et al [14] provided results from similar research.

According to their research HR professionals are more familiar than before with

HRIS. HR professionals use it for strategic partnering, and the company size is not as

relevant as in Ball’s research. In fact, although the small companies consider that the

investments in HRIS are high they exploit the system better. [14]

The use and usability of HRIS needs more rigorous research.

4.1 Users of HRIS

When we invoke the organization we also invoke human resources (managers and

employees) with different roles and tasks. Management occurs between mangers and

employees. If the organization has HRIS, the whole staff employs it but for different

reasons and probably with different techniques. “The whole staff” includes HR

people. The history of HR departments comes from personnel departments whose

duty was to handle of the employee issues in the organizations. The work in HRM

departments has broadened, become more relevant and accrued responsibility during

the development in organization. However, HR experts have felt that they have been

locked out of strategic and financial discussions. The existence of HRIS has given

more importance and credibility to HR department and staff.

Primarily, HRIS is seen as a tool for HR staff. [28] However, many studies have

been conducted in the 1980s and 1990s when HR systems evolved strongly, and HR

people were the first to use them in the organization. For example, DeSanctis [9] and

Haines and Petit [12] studied the use and usability of HRIS. In her research,

DeSanctis notes that at that time, in 1986, the HRIS users were mainly HR staff. [9]

The population in Haines’ and Petit’s research was drawn from HR professionals. The

study itself focuses on the system usage and the user satisfaction. [12] Kavanagh et al

[17] stress that there are a variety of potential users of HRIS in the organization. Thus,

we can not make the conclusion that HRIS is only for HR staff but for the whole

organization.

Here, the research questions are 1) who are using and 2) who should be using

HRIS in the organization.

4.2 Utility Discussions

A real time HRIS and skilful HR staff could prove a competitive advantage for the

organization. Amit and Belcourt [1] introduce in their article the meaning of the tacit

human resource management which the organization obtains over a long period of

practice. Usually, HRM routines and activities are described as one model or pattern.

However, it is important to acknowledge that organizations have their own practices

and mechanisms to attract, motivate, evaluate and compensate their human resources.

The paper explains “how adapting a ‘process’ perspective of HRM leads to the

conclusion that an organization’s ability to build, deploy and renew its productive

human-capital through transformational routines in ways that cannot be easily

replicated by other organizations generates a competitive advantage in the market”

[1].

The advantages, effectiveness, and competitiveness of the system are introduced

when the authors wish to argue for and confirm the use of HRIS. Rapid data access,

information exchange, administrative and strategic advantage are the basic topics

which are discussed. [19,20] All these issues need further study.

5 The Development of HRIS Research

The history of HRIS is short in terms of both practice and research. HR information

systems have developed from the payroll systems and have now their own branch

among other managerial IS in organizations. In the 1960s and 1970s only big

companies could afford to invest in hardware and software for HRIS. Computers were

bulky and the software was difficult to use. At that time, the main task of HRIS was

the record-keeping. Over the years, technology developed and cheaper equipment as

well as and more versatile software for HR activities became available. [2,17,36]

Even HR staff members were at first skeptical. This skepticism and hesitancy

stemmed from the HR staff’s lack of computer and software edication. Jones and

Hoell [16] present in their article the courses available today for HR students. It is a

part of the HR profession to learn and develop technical skills.

The previous chapters present some of the many issues related to HRIS in

practice. HRIS research has achieved stronger base during the new millennium. The

empirical studies have more breadth because organizations have gained experience in

using HRIS. In the 1980s studies attempted to establish the nature of HRIS. In the

1990s studies were full of different expectations of how HRIS affects an

organization’s HR activities and business planning. There were studies about who

was using HRIS and for what purpose, and the advantages of using HRIS. The

organization was efficient if it had the technology and IS to supported the HR

activities. Also, the effect of HRIS for the work and development of HR department

and professionals were under discussion. [2,3,6,7,10,11,12,13,18,24,26,29,31,34,35]

Kavanagh et al [17] and Walker [36] have written HRIS handbooks. Kavanagh et

al [17] focus more on the IS site of HRIS. The book analyses the system itself and

what should have been noticed before the implementation. Also, it introduces HRIS

applications. Walker’s [36] book gives a more technical and process oriented

viewpoint to the development and implementation of HRIS. The message plays on the

effectiveness what the system can offer strategic HRM and the whole organization in

the future. Both publications are referenced, although the handbooks do not have a

distinct academic background. Thus far, they are the only books available for HRIS.

Predictions are always difficult. Still, it is important to analyze the development of

research and practice. Opinions and viewpoints offer paths for new ideas and

innovations. Organizations make short and long term plans and strategies to stay in

business. Atwater [2]

wrote in his research review that HRIS is a tool to give HR

information to the business planning process. He designated the process as “the

workforce forecasting” and defined it as follows: “it focuses on predictions about the

size and mix of a pool of workers in the future” [2]. This process challenges the HRIS

to provide valuable information on employees when an organization needs it for

filling job post, or keeping information from available employees.

Today, many HRIS have the information which is important for management. The

new challenge however, is the leadership. Employers need more human information

on employees and their actions in different situations, which, in our research

interviews, leaders have claimed as being very significant. However, legislation and

(at least) moral issues limit access to such information.

The research focuses on theories and making models and patterns. HRIS research

is fragmented in different research papers and results. Already, several models and

conceptions are available. [22] The time has come to collect them, discover the whole

available HRIS picture, and introduce the research areas. There are many research

questions in the referenced articles. Now is the time to find answers.

6 Our Initial Framework for HRIS

In chapter 2 and figure 1 we introduced the basic categories of our initial framework

for HRIS. In chapters 3 to 5 we highlighted some research issues from each category.

We pointed out that there are several areas to be studied. Our intention has not been to

cover all of them but to construct a description which expresses the diversity in the

HRIS discipline. The description became our initial framework of HRIS.

Fig. 2. The Initial Framework of HRIS.

In figure 2, we present the initial framework as a whole. The IT/IS category includes

the issues of the system designing. The specific target groups are the people who are,

or could be, involved in the design and implementation process as well as in the use

and usability testing. Technology has changed HR activities. From different files we

have moved to the databases and web systems. The data security and legislation give

strict orders on how the data should be processed and who has the authority to use the

information. Accessing the individual data is always a sensitive matter.

The Organizational Use includes application areas, end users and different utility

discussions which underline the importance of HRIS in an organization.

Competitiveness, advantages and globalization are commonly discussed. The

application areas describe the functions and activities which are supported by HRIS.

The basic areas of discussion are HRM and management. Managers, HR staff and

employees represent the end users involved in the HRIS. Here, the issue is the

meaning of the information which the system produces.

In the Development category the discussion topics are the history, the present and

the future of HRIS development. The history of the development is quite clear but the

present development is difficult to clarify because of the fast growth of technology

which has impacted on software development. The theory-making and the model

construction are included in the Research category. Modelling is a useful means to

clarify the HRIS processes as well as the activities HRIS serves. This has already

been done by a number of researchers. However, the theories are still waiting for to be

developed and published. We believe that the future will bring interesting discussions

and debates.

7 Conclusion

In our article we have introduced the initial framework to raise discussion about HRIS

and issues related to the discipline. Our contribution consist of the four

conceptions/categories – IT/IS, Organizational Use, Development and Research –

aggregate HRIS research which for the moment is fragmented. We want to encourage

researchers to continue their work and to gather their knowledge together. The topics

and issues of the conceptions summarized in chapter 6 could be the impetus for future

studies. The history of HRIS is well-known, but now it is significant to study practice

and construct theories and models to introduce the discipline and evoke diverse

discussions.

Renewal capacity to search for new businesses is crucial nowadays. The business

environment is accelerating all the time and thus the supporting role of HRIS to

handle demanding and complicate organizational work is becoming more important

than ever. Therefore, future research on HRIS should take into account the nature of

managerial work in our post-modern digital time. The research in HRIS is young. The

sphere is not developed although it is one of the most important lines of human

resource management. Therefore, to develop knowledge it is needed international

collaboration and research programs to study many sides of this complicated

phenomenon.

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