Cost-benefit analysis of HRIS functionality and Y2K-driven system development

Human Resource Information System

The introduction of information technology has changed how business is conducted and management of various departments within the organizations. The human resource department has undergone through computerization with some organization adjusting to the latest application in the market. Therefore, human resource information system (HRIS) can be defined as a system used to acquire, store, manipulate, analyze, retrieve and distribute information regarding an organization's human resource. This information is usually done in a database or more often in serious of inter-related databases (Susan Heathfield, 2009). The information contained in human resource information system normally serves as a guide to recruiters, trainers, careers planner and other human resource specialists (CP Team, 2011).

However, the system allows companies to cut down costs and provides more productive information to employees in faster and very convenient manner. This therefore is more important during hard economic times; because a company needs to become more efficient and human resource department can't be felt behind. It's also improves the effectiveness of human resource department which therefore help in quick planning of the future human resource operations (Byars, 2010).

In order to implement human resource information system (HRIS) effectively that can meet the need of an organization, the cost benefit analysis has to be done properly. Therefore, costs benefit analysis is a systematic process for calculating and comparing benefits and cost of a project, decision or government policies. It emphasizes the neediest for the project to begin and operate for the benefit of the organization and the community (JW Boudreau, 2010).

The human resource information system is advancing every day. New applications with advance features have been designed. For example the human resource system is no longer a database system. The latest which indicate where the HRIS generation is ending is such a system which provides more interactive interface with employees. It allows employees to enter and edit their personal information. Besides, it links different departments of the organization together such as finance, IT and human resource department. It provides finance department with easy and effective method to analyze an employee attendance before issuing salary (Johns, 2008).

Moreover, the next generation of human resource information system is expected to provide more service on web base system. It shall provide online recruitment, hence a person would be able to apply for job online and attend interview online. The interview scores would then be tabulated by the system. This means that all jobs of recruitment would be done by the system, because it shall further list the best candidate. In today's environment, it would also provide interactive platform with employees outside their officers. Employees would use devices such as smart phones and social networking sites to access HR data remotely or to connect with others in the organization (Fitz-enz, J, 2002).

In this respect, implementation of new and advanced human resource system would cost higher compared to the current system being used by human resource departments. For the system to be adopted by the organization higher decision has to be made among the top management such as human resource manager, finance manager, information technology manager, administration and managing director. In addition decision made here must be ratify by the board of the organization. Therefore implementation of this system would require a serious lobby for them to understand what makes the system unique and necessary for the organization.