HRIS Impact on HR Decision-Making in Saudi Arabian Hotels

Introduction

The growing impact of technology and globalization has led firms to turn to information systems across different departments and functions over the past few decades. One department that relies heavily on such systems is the HRM (Human Resources Management) department (Karikari, Boateng & Ocansey, 2015). In the current age, organizational HR departments greatly emphasize information sharing, particularly when it concerns information affecting employees (Troshani, Jerram & Hill, 2011). Consequently, many firms consider it worthwhile to maintain an HRIS (Human Resource Information System) to aid their transactions (Lederer, 1984). Within today's dynamic corporate environment and knowledge-driven economy, HRIS has contributed considerably to organizational efficacy. HRIS offers HR professionals substantial information, transforming them into strategic partners of top management while also catering to long-term organizational needs (Nawaz, 2013). HRIS encourages individuals to utilize HR functions, facilitating more informed and efficient decision-making.

HRIS stands at the forefront of effective HR function execution and responds to existing and likely HR challenges within the present knowledge-oriented economy. The development and growth of corporate processes have given rise to specialized knowledge and information areas necessitating the use of IS (information systems) to improve information management (Aletaibi, 2016). Such systems have the potential to apply information to the advantage of HR managers, and HRIS application development is deemed pivotal for the HR departments of nearly all firms.

Many factors contribute to business uncertainty in this century, including a shrinking labor pool, technology's role in corporate operations, and the global economic crisis. All of these elements have impacted HR managers dealing with unanticipated future challenges. As Chmielecki (2012, p. 52) states, "Futurists say one thing is certain — HR executives will play a vital role in helping business organizations compete." Such trends have rendered conventional HR systems and functions inadequate for business competition within the current, rapidly evolving global market (Maier et al., 2013).

HRIS development in firms is accompanied by a growing demand that HR departments meet their managers' changing expectations. Consequently, HRIS development has been contingent on certain challenges linked to implementation and continued utilization, as numerous HR-related journals illustrate (Marler & Fisher, 2013). In many firms, IT and HR functions have been closely tied to one another, particularly where managers utilize both as strategic tools for gaining an edge over market rivals. HR management is highly focused on capitalizing on the synergy between these functions in order to improve corporate performance.

HRIS is therefore regarded as one of the central tools for ushering in a new era of HR management. Armstrong (2006) indicates that HRIS can effectively manage corporate assets — valued by managers and leaders — to accomplish business goals (Wiblen, Grant & Dery, 2010). Armstrong further elaborates that, since organizations are constituted of many individuals, improving organizational performance is contingent on employee acquisition, capability and competency development, sustaining their commitment to the company, and motivating them to achieve more.

The implementation of HRIS entails tracking computer records and facilitating information processing using appropriate software (Altarawneh, 2016). HRIS teams are accountable for record management and use, as well as data acquisition. Following from these functions, HR department personnel and user satisfaction levels must be measured, and usage levels across hotels within Saudi Arabia will need to be gauged. Every measure utilized will be adapted from research-established measurements (Karikari, Boateng & Ocansey, 2015; Sadiq et al., 2013). Many significant changes have been occurring within the Saudi Arabian IT domain — the nation is gradually evolving into an IT powerhouse. IT proliferation within different governmental and public organizations may give rise to numerous obstacles potentially impeding effective HRIS adoption and execution. The latest IT adoption by HR departments in hotels across the Kingdom of Saudi Arabia provides a unique opportunity to analyze HRIS adoption and utilization and its impact on HR functions.

HR management and HRIS integration aids and improves organizational decision-making by accelerating key data flow within companies wherever and whenever needed (Al-miman, 2017; Zin & Bin, 2012; Nawaz, 2017). Efficient and effective decision-making by HR managers plays a positive role in organizational performance. Most research concentrates on sectors outside the hospitality sector. When it comes to the Saudi Arabian hospitality sector specifically, most research efforts are restricted to the IT function's contribution to HR. Saudi Arabia is regarded as the world's largest petroleum exporter and one of the richest Middle Eastern countries, exerting significant influence on economy and policy. Achoui (2009) asserts that the Saudi Arabian government encounters several issues in HR development, including a heavy reliance on expatriate workers, the absence of females in the workforce, a weak link between national education outcomes and corporate requirements, and a steep unemployment rate. Factors further aggravating the situation include a strong cultural influence on Saudi nationals' perceptions of private sector employment generally and hospitality sector employment specifically, as well as a significant shortage of skilled and unskilled labor (AlGassim, Barry & McPhail, 2012). Consequently, large research gaps exist concerning HRIS in hotel-specific decision-making as well as concerning HRIS generally. This study addresses HRIS-related challenges and their impact on decision-making, with an emphasis on Saudi Arabian hotels.

Despite the issues mentioned above, relevant literature indicates a major gap in studies on HRIS and HRIS practice and policy implementation within Saudi Arabia. Moreover, no substantial research has been conducted within the Saudi Arabian hotel industry to examine HRIS implementation and its impact on decision-making, or to understand Saudi Arabian workforce views on these practices. This study therefore contributes to a deeper understanding of HRIS and the role it plays within the Saudi Arabian hotel industry.

To evaluate the effect of HRIS usage on decision-making within the Saudi Arabian hotels selected for this research.

i. What are the advantages of HRIS implementation on decision-making when it comes to HRM-related issues?

ii. In what way has HRIS implementation impacted HR management decision-making processes?

iii. What challenges are encountered by hotel industry HR departments in connection with HRIS implementation?

Literature Review

Understanding HRM in Saudi Arabia requires outlining the broader Middle Eastern business and HRM context, since one may reasonably assume considerable similarities across MENA nations. Al-Obaidi (2003) notes that "the Middle East" is a term used to denote a cultural region without specific boundaries, encompassing Algeria, Bahrain, Egypt, Iran, Iraq, Israel, Kuwait, Jordan, Libya, Lebanon, Morocco, Saudi Arabia, Oman, Qatar, Syria, Tunisia, Yemen, and the UAE (Bellin, 2004). This expansive region carries significant political and economic weight on account of its wealth of natural resources and a population exceeding 400 million. However, it remains underdeveloped in terms of cross-cultural and global management research. It is still developing in higher education, business expertise, jurisdiction, and legislature (Ali, 2009). Aycan and colleagues (2007) and Ali (2009) maintain that the region is challenged by religious conflicts that have adversely impacted its progress. It is also considerably less experienced in HR management relative to Western nations.

Though research scholars in industrialized nations have debated comparative and global HRM challenges for nearly a decade, they have largely focused on a narrow sample of American and European organizations and have failed to consider Middle Eastern nations. Middle Eastern organizations' HRM practices have, up until recently, been largely overlooked (Syed, Ali & Hennekam, 2018). While efficient HRM processes have become a crucial element of progress in some Middle Eastern nations, experts criticize their HRM implementation efficacy. Until recently, Saudi Arabia had very few HRM practice-related policies in place (YanXia & Saeed, 2015). Since recognizing that its natural resources alone cannot sustain long-term prosperity, Saudi Arabia has focused on diversifying its economy, including through human capital development.

The HRM growth context within Saudi Arabia was constrained by restrictive policies between the late 1960s and the start of the new millennium; only recently has there been a shift toward modernization (Mellahi, 2007). Despite this, HRM's role within the nation continues to be undervalued. Fadhel's (2007) survey found that only 63.5% of 52 Saudi Arabian firms had an HRM framework in place, with a mere 40.4% implementing HR development initiatives. Certain HRM functions, such as training, were being executed by departments like finance or sales, implying that many small-to-medium companies lacked professional HRM frameworks. The survey further revealed that 78.8% of training initiatives were executed as on-the-job departmental training rather than by HR departments, meaning training providers were often unskilled individuals rather than HR experts. Currently, Saudi Arabia is witnessing significant transformations in leadership attitudes. HRD and HRM are increasingly accepted and adopted, especially in large corporations (Achoui, 2009). The need to manage local human capital potential has led both for-profit and non-profit organizations to rely on HR policies and appropriate execution approaches for sustained profitability and competitiveness.

The biggest challenge acknowledged by business and governmental organization leaders within contemporary Saudi Arabia is that the workforce forms the central unit of all firms, responsible for carrying out crucial tasks (AlGassim et al., 2014). Establishing robust HRM policy may aid with human capital management, significantly benefiting all institutions (Mathis, Jackson & Valentine, 2015). The advantages of meeting all personnel needs and guaranteeing greater control over work-life must be emphasized. All organizations should acknowledge the importance of openness in information sharing, flexibility, and allowing personnel to express their views — all of which improve a firm's success. Such strategies may be implemented by luxury sector businesses such as hotels.

The relationship between corporate performance and HR practices within private sector firms is well supported by literature, which indicates that HR systems can drive corporate efficiency and possess considerable strategic potential (Zin & Bin, 2012). Findings further reveal that hotels and similar organizations have begun shifting toward HRM practice design and delivery, with a chief focus on improving personnel skills and performance. This has led to the formulation of HR systems with horizontal and vertical alignment around key competencies (Al-Khowaiter, Dwivedi & Williams, 2013). Literature reviews in this domain have historically been centered on Western nations, which have long recognized the value of HR and IT department development (Al-Dmour et al., 2014; Dilu, Gebreslassie & Kebede, 2017). Research has only recently begun focusing on developing nations where HR research and practices are gaining traction.

Information Systems (IS) and Information Technology (IT) are now among the most critical components of business operations (Troshani, Jerram & Hill, 2011). Private and public organizations have been investing considerably in computer hardware and software to maintain quality and improve success rates. Investment of both time and financial resources in IT development and execution has become pivotal, as these technologies now form a critical facet of development in every modern domain (Al-Gahtani, 2003).

Developing nations have increasingly implemented IT systems, recognizing their capacity for timely data processing and resolution of developmental issues (Al-Shibly, 2011; Shiri, 2012). Saudi Arabia's growing IT influence has led firms to realize the advantages of technology adoption, with both private and governmental organizations increasing profitability through greater IT investment (Al-Gahtani, 2003). The Saudi Arabian government has made several notable investments in this area, including the Saudi National e-Government Portal (Alateyah, Crowder & Wills, 2013). Technology now enables both citizens and non-citizens to access a range of services online that were unavailable a decade ago.

HRIS is a relatively new concept in the Saudi Arabian public sector. Internet access was granted by the Saudi government in 1998, and HRIS development within diverse corporate contexts has emerged only more recently. Consequently, limited research exists on the subject. Some research efforts have nonetheless been undertaken to examine challenges Saudi Arabian firms face in organizational resource management and HRM practices (Almalki, FitzGerald & Clark, 2011; Khalifa, 2013; Hasanain, Vallmuur & Clark, 2014).

Research demonstrates that information systems tools and instruments remain underdeveloped in several Arab Gulf countries, including Saudi Arabia (Almalki et al., 2011). A review of the Saudi Arabian healthcare system concludes that several healthcare elements are being compromised due to the failure to implement information systems for recording and maintaining patient medical histories (Almalki et al., 2011). Many healthcare and medical practices worldwide benefit from electronic health record (EHR) and health information system (HIS) adoption. Still, the HIS implementation rate is extremely low in Saudi Arabia, largely due to resistance from healthcare providers (Khalifa, 2013). Identified obstacles include technical barriers stemming from staff ignorance, professional barriers arising from unfamiliarity with IS tools, financial barriers from inadequate government investment in IS development, and organizational barriers from managers reluctant to endorse widespread IT infrastructure adoption. Hasanain and colleagues (2014) present similar findings.

Cyert and March's Behavioral Model (1963) constitutes this research's theoretical framework. The organizational behavioral theory of the firm revolves around decision-making in a large multiproduct company operating under uncertainty within imperfect market conditions. The authors contend that the linkage between prior accomplishments and demands-aspirations depends on real and anticipated modifications incorporating performance and environment. First, under steady conditions — characterized by an absence of dynamic environmental transformation or growth — prior accomplishment and demands-aspirations are typically equal. Second, under dynamic conditions with growth, demands-aspirations fall behind achievement. This theory serves as a framework for gauging HRIS's impact on decision-making by identifying inventory goals, production targets, and profit and value targets of the organizations studied.

Findings and Discussion

Hotel A: This hotel's Human Resource Manager holds a Bachelor's degree in Human Resource Management and has been employed at the hotel for over four years. The informant reports that the hotel's workforce amounts to more than one hundred individuals. The organization utilizes the "Persol" HRIS, which was adopted five years ago and is operated exclusively by its HR personnel.

Hotel B: The informant from Hotel B also holds a Bachelor's degree in Human Resource Management and has completed postgraduate studies in Accounting and Finance. He has served as the hotel's HR officer for over four years. Table 1 indicates that both respondents are well-versed in HRIS systems, having worked with them for more than four years (Karikari, Boateng & Ocansey, 2015).

Table 1: Summary of company profile and informants

Position: HR officer (both hotels) | Education: Bachelor's degree (Hotel A); Accounting & Finance, MBA (Hotel B) | Tenure: More than 4 years (both) | Number of employees: More than 100 (both) | Length of HRIS implementation: More than 5 years (both) | HRIS Types: Persol (Hotel A); Personal Manager (Hotel B) | Is HRIS linked with other systems: No (Hotel A); Yes (Hotel B) | Who uses the HRIS: HR staff (both)

A careful examination of both respondents' answers suggests that, although they employ different systems, a large number of advantages can be derived from HRIS, as evidenced by the responses summarized below. HRIS facilitates accurate identification of unfilled posts and analyses individual job positions along with their relevant titles within the firm. Furthermore, it enhances understanding of corporate training requirements, helps identify the right employees to train, and aids in evaluating training initiative efficacy. These findings are consistent with Dessler (2011) and Storey (2016), who reveal that HRIS impacts workforce activities by:

Conducting regular analyses of corporate HR requirements by matching HR demand with supply — the system precisely identifies unfilled posts; and providing insights into corporate training requirements by ascertaining personnel performance deficits and deciding on whom to train and when, followed by an appraisal of training initiative efficacy.

Table 2: Advantages of HRIS

Both Hotel A and Hotel B responded "Yes" to the following: Is HRIS able to precisely identify unfilled positions? Is HRIS capable of analyzing individual job positions and job titles within the company? Is HRIS capable of enhancing understanding of corporate training requirements? Is HRIS able to effectively choose whom to train and when? Is HRIS capable of assessing training initiative efficacy? Is HRIS able to make quicker, better decisions regarding successor ranking by identifying key posts and targeting particular staff members as likely successors? Both respondents replied "No" to the question of whether HRIS is able to decrease recruitment costs.

Both respondents concur that HRIS facilitates swift, better decision-making concerning successor ranking by identifying key posts and targeting particular personnel as prospective successors. However, HRIS does not appear to decrease recruitment expenses.

In terms of HRIS facilitation of efficient succession planning, three key factors were identified: determining particular core posts and targeting particular workforce members as likely successors; identification and monitoring of high-potential personnel and implementing development strategies; and swift, better decision-making concerning the ranking of successors and the talent pipeline. These findings support Dessler (2011), Al-Shibly (2011), and Shiri (2012), who claim that using HRIS in HR planning simplifies the task of addressing workforce gaps. It also supports long-term planning using data for staff planning and demand and supply predictions; staffing through data on candidate qualifications, equal employment opportunity, and separations; personnel relations using data on employee contract negotiations; development through data on salary forecasts, training initiatives, and salary budgets; and staff assistance through HR knowledge systems.

Table 3: Contributions of HRIS to organizations

Effective Succession Planning: Determination of particular core posts and targeting of particular workforce members as likely successors; swift, better decision-making concerning the ranking of successors and the talent pipeline; identification and monitoring of high-potential personnel and putting development strategies into practice. (Chi-Square = 0.0124, df = 2, Sig. = 0.000)

Performance Management: Analysis of personnel qualifications and capabilities; keeping track of how the alignment of a staff member's goals with company goals is progressing; supporting performance-centered compensation processes. (Chi-Square = 0.00254, df = 2, Sig. = 0.000)

* Significant if p-value (Sig.) < 0.01.

Concerning performance management using HRIS, three key factors were identified: personnel qualification and capabilities analysis; tracking the alignment of staff members' goals with company goals; and fostering a performance-based compensation process. This is in line with Wiblen and colleagues' (2010) findings that HRIS-embedded productivity and performance-linked information is utilized as evidence when resolving personnel grievances. This information encompasses documented personnel performance, performance measurement techniques, and reporting systems — all of which prove crucial to the company. Chi-square testing indicated that the aforementioned HRIS contributions to corporations are highly significant at a 99% confidence level.

Table 4 identifies four major challenges linked to companies' workforce activities: predicting labor supply and demand, recruitment expenses, data access, and labor shortage. Chi-square testing indicated these challenges are also highly significant at a 1% level of significance. In other words, with a 99% confidence level, it may be concluded that these workforce-related factors greatly impacted both hotels before and after HRIS adoption and implementation. (Chi-Square = 0.0104, df = 3, Asymp. Sig. = 0.000; * Significant if p-value < 0.01.)

Conclusion and Recommendations

HRIS constitutes an integrated system employed in the collection, storage, and study of data about companies' HR departments, encompassing computer applications, databases, and software and hardware vital to the collection, storage, delivery, presentation, recording, management, and manipulation of information for the department's function (Al-Shibly, 2011). It is concluded that HRIS serves as a valuable HR planning instrument, facilitating precise identification of unfilled posts and analyzing individual job positions and their titles within a given firm. Furthermore, it aids in understanding corporate training requirements, choosing whom to train and when, and assessing training initiative efficacy. Nonetheless, the following challenges remain associated with its implementation: predicting labor supply and demand, managing recruitment expenses, addressing labor shortages, and ensuring data access.

HRIS has progressed from a basic automation instrument to a comprehensive system integrating decision support, communication, and transaction processing capabilities. Features such as Manager Services and Employee Self Services have reduced administrative burdens substantially, while enabling the HR function to align more closely with corporate business strategy.

Given the findings, this research recommends that companies implement HRIS by integrating it with other organizational systems for rapid decision-making and information sharing. The hotels studied can also establish connections with universities, polytechnics, training colleges, and other educational institutions within Saudi Arabia to proactively address the labor shortage issue. In doing so, they will be better informed about the available labor supply, effectively alleviating labor shortage challenges.

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