HRM Module 4
HRM Module 4
According to Hedrickson, 2003, “HRIS can be briefly defined as integrated systems used to gather, store
and analyze information regarding an organization’s human resources.”
According to Tannenbaum 1990, “HRIS ,One which is used to acquire, store, manipulate, analyze,
retrieve and Distribute information about an organization’s human resources.”
Objectives of HRIS
Some of the common objectives of HRIS in operation in various enterprises are as follows:
(1) To make the desired information available in the right form to the right person and at the right
time.
(2) To supply the required information at a reasonable cost.
(3) To use the most efficient methods of processing data.
(4) To provide necessary security and secrecy for important and/or confidential information.
(5) To keep the information up-to-date.
Needs of HRIS
Human Resource Information Systems (HRIS) serve a variety of needs within an organization. Some of
the key needs and benefits of HRIS include:
1. Data Management: HRIS helps in storing and managing employee data efficiently. This includes
personal information, employment history, performance records, and more.
3. Recruitment and Applicant Tracking: HRIS aids in managing the recruitment process, from
posting job openings to tracking applicants and conducting interviews.
4. Employee Self-Service: It allows employees to access and update their personal information,
request leave, view pay stubs, and more, reducing administrative tasks for HR.
6. Training and Development: It tracks employee training and development needs, schedules
training sessions, and monitors progress.
8. Time and Attendance: It helps in tracking employee work hours, managing attendance records,
and calculating paid time off.
Overall, HRIS helps organizations manage their human capital more efficiently and strategically, making
it a crucial tool in modern HR management.
Process /Functioning of Human Resource Information System
Human Resource Information System can be broadly classified into two processes :
(a) Data Collection.
(b) Data Management.
(a) Data Collection: Who should collect what data and in what form and how often? The nature
and the form of data will vary from organisation to organisation depending upon its objectives.
The manner of data collection will depend upon the purpose for which data is required. After
collection of data, irrelevant data should be filtered out and the relevant data should be
properly classified and tabulated so that it can be used easily when needed.
(b) Data Management: A good data management system involves following sub-functions:
i. Processing operations, viz., classifying, analysing, summarising and editing the data
ii. Storage of data, viz., indexing, coding and filing of information.
iii. Retrieval of data, whenever required.
iv. Evaluation, i.e., judging the usefulness of information in terms of its relevance and accuracy.
v. Dissemination i.e., providing the required data in the right form at the right time.
The data management system should be capable of giving efficient service in terms of day-to-day
processing of information. At the same time, the system design should not be rigid. With the changes in
conditions, demand on the information system may change. The same information may be needed in
different format or different levels of aggregation may be needed. An efficient system should be able to
quickly respond to these types of demands from different sources.
FUNCTIONS OF HRIS
1. Recruitment Information : It includes advertisement module, applicants profile, Appointment
and placement data.
3. Manpower planning information: It offers data that could help human resource mobilization,
career planning, succession planning and inputs for skill Development.
4. Training information: It provides information for designing course material, arranging need
based training and appraising the training program etc.
5. Health information: It consists of data relating to health, safety and welfare of employees.
6. Appraisal information: It consists of performance appraisal information that serves as basis for
promotion, career and succession planning
8. Personnel research information: It is a bank of historic and current data about employees
attitude, turnover, absenteeism which may be used for different types of analysis.
HRIS Functions to Create and maintain employee records, Ensure legal compliance and plan future HR
requirements, Forecast Reduces the manual work, Assist managers by providing the relevant data, etc.
HRIS: Advantages
1. Higher speed of retrieval and processing of data.
2. Ease in classifying and reclassifying data.
3. Higher accuracy of information/report generated.
4. Enhance employee communications.
5. Fast response to answer queries.
6. Improved quality of reports.
7. Better work culture.
8. More transparency in the system.
HRIS: Disadvantages
1. It can be expensive in terms of finance and manpower.
2. It can be inconvenient.
3. Computer can not substitute human being.
4. Require thorough understanding.
5. Failure to keep project team intact.
6. Politics/hidden agendas
7. System Breakdown
8. Lack of communication.
9. HRIS implemented may be on poorly done needs analysis.
INTERNATIONAL HUMAN RESOURCE MANAGEMENT (IHRM)
IHRM can be defined as set of activities aimed managing organizational human resources at
international level to achieve organizational objectives and achieve competitive advantage over
competitors at national and international level.
An international business must procure, motivate, retain and effectively utilise service of people
both at the corporate office and at the foreign plants . The process of procuring, allocating and
effectively utilizing human resources in an international business is called international human
resources management (IHRM).
IHRM is the interplay among the three dimensions -HR activities, types of employees and countries
of operation.
Model of IHRM
1. The three broad activities of IHRM, namely procurement, allocation and utilising cover all
the six activities of domestics HRM. The six functions of domestic HRM are-HR planning,
employee hiring, training and development, remuneration, performance management, and
industrial relations. These six functions can be dovetailed with the three broad activities of
IHRM.
2. The three national or country categories involved in IHRM activities are the host country
where a subsidiary may be located, the home country where the company has its
headquarters, and ‘other’ countries that may be the source of labour or finance.
3. The three types of employees of an international business are-host country nationals,
parent-country nationals, and third-country nationals. Thus, for example, IBM which
employs Australian citizens in its Australian operations, often sends US citizens to Asia-
Pacific countries on assignment, and may send some of its Singaporean employees to its
Japanese operations.
Challenges in IHRM
The internationalisation of HRM functions implies that some HR policies of MNC's might be seen as
efficient and effective and are adopted uniformly a across locations while some other HR policies are
best managed with the local country norms and practices. The challenge for the MNC is to take an
appropriate decision to ensure that the operations are most effectively performed. The following
dimensions of managing international employees continue to be a source of challenge and need
specific attention :
• Managing EFR (Employee Failure Rate)- Despite significant efforts to adopt the most
contemporary approach to staffing key positions in MNCs, the expat failure rate in a new
assignment remains a challenge. Therefore, making decisions on candidates in haste and
without sufficient attention to professional as well as personal dimensions should be avoided.
• Managing Dual Career Couples- The dual career couple is common in today’s workplace.
MNC’s need to be prepared to either find a suitable role for the spouse or compensate and
support the relocation of the individual along with his/her spouse. Ignoring this factor results in
high EFR
• Repatriation Strategy – Often organisations miss out on paying attention to the returnee to
come back and find his/her rightful place in the original organisation that he/she left behind a
few years ago. Often repatriation points to a demotion of sorts. Many privileges and
compensation elements are withdrawn, the roles and responsibilities could be significantly
smaller and the returning employee would feel out of place even though it’s his/her home
country. Things have changed during his/her absence. A clear repatriation strategy that
reassures the returnee and welcomes him or her back in an appropriate role with equally
challenging responsibilities needs to be taken care.
• Countering Terrorism and Expat Safety – In today’s world, many dimensions of terrorism make
their presence felt across almost all countries. Safety of the MNCs and their employees is often
compromised in many countries. In the absence of proactive planning and well-documented
risk-management strategies, the MNC exposes its employees and especially the expatriates to
significant risk. The HR team of the parent company needs to keep itself well informed of
perceived threat to the safety or well-being of its employees in high-risk countries and take
preventive measures to guard employee and his/her family’s safety at all costs.
❖ Industrial Relations:
1) Who should handle industrial relations problem in a subsidiary?
2) What should be the attitude of parent company towards unions in a subsidiary?
3) What should be union tactics in subsidiaries?
Thus, the list goes on. Be it employee selection, training or compensation, IHRM adds to new
dimensions which are not being felt or being observed in DHRM
2.Need for Broader Perspective
When compared to domestic HRM, IHRM requires a much broader perspective on even the most
common HR activities. For example, while dealing with pay issues, the corporate HR manager must
co-ordinate pay systems in different countries with different currencies that may change in relative
value to one another over time. While handling fringe benefits too, complications tend to arise. It is
a common practice in most countries to provide health insurance to employees and their families.
The family in some countries is understood to include the employee’s spouse and children. In other
countries, the term ‘family’ may encompass a more extended group of relatives, multiple spouses,
aunts, uncles, grandparents, nephews, and nieces. It is a difficult task for an international business
to deal with the different definitions of family.
Any activity of IHRM needs a broader perspective because HR managers working in the global
environment face the problem of designing and administering programmes for more than one
country.
Involvement of the HR department in the personal lives of the employees is limited in domestic
HRM. The firm may, for example, provide employee insurance programme, or when a transfer is
involved, the HR department may provide some assistance in relocating the employee and his or
her family. But in the international setting, the HR department must involve itself more and
understand the personal lives of employees to provide the service and support needed by them.
For example, some governments ask to submit a marriage certificate before granting visa to an
accompanying spouse. Thus, marital status could become an important consideration in the
selection process. In such a situation, the HR department should advise all candidates being
considered for the positions of the host-country’s visa requirement with regard to marital status
and allow each candidate to decide whether he or she wishes to remain in the selection process.
Apart from providing suitable housing and schooling in the assignment location, the HR department
may also need to assist children left behind at boarding schools in the home country. These issues
do not figure in domestic HR management.
4.Change in Emphasis
As an international business matures, the emphasis placed on various HR activities change. For
example, as the need for parent-company and third-country nationals declines and more trained locals
become available, resources previously allocated to areas such as expatriate taxation, relocation, and
orientation are transferred to activities such as staff selection, training, and management development.
The latter activity may require establishment of a programme to bring high-potential local staff to
corporate headquarters for development assignments. The need to enhance emphasis in HR activities,
as a foreign subsidiary matures, is clearly a factor that broadens the responsibilities of local HR
activities.
5.Risk Exposure
Risk exposure is high in domestic HRM. Unfair hiring practices may result in a firm being charged with
the violation of the Constitutional provisions and be liable for penalties. Failure to maintain cor dial
relations with unions may result in strikes and other forms of labour unrest.
IN IHRM, in addition to these risks, there are other hazards that are unique and more threatening.
Depending on the countries where the MNC operates, the headquarters and subsidiary HR managers
may have to worry about the physical safety of the employees.
In many countries kidnapping and terrorism are common and the international HR managers must learn
to live with them. Terrorism poses a great risk to international operations.
Yet another risk is that of expropriation or seizure of MNC’s assets in a foreign country. If HR policies
antagonise the host-country unions or important political groups, the MNC may be asked to leave the
country, have its assets seized, or find the local government taking the majority control of its operations.
This is not the sort of risk that most domestic HR managers face.
6.External Influence
The IHRM activities are influenced by a greater number of external factors than are domestic HRM
functions. Because of the visibility that the international businesses tend to have in host countries
(particularly in developing countries), the subsidiary HR managers may have to deal with ministers,
political figures, and a greater variety of economic and social interest groups than domestic HR man agers
would normally encounter. A host-country government can dictate hiring procedures as is the case in
Malaysia. During the 1970s, the Malaysian government introduced an injunction according to which
foreign firms must comply with an extensive set of affirmative action rules designed to provide additional
employment opportunities for the Malaysians.
In developed countries, labour is more expensive and better organised than in less developed countries,
and governments require compliance with guidelines on issues such as labour relations, taxation, health,
and safety. These factors shape the activities of the subsidiary manager considerably. The subsidiary HR
manager also needs to spend time learning and interpreting the local ways of doing business and the
general code of conduct regarding activities such as giving gift. It is also likely that the subsidiary HR
manager will become more involved in administering benefits such as housing, education, and other
facilities that are readily available in the host country.
2. Legal and Regulatory Environment: Different countries have unique labor laws and regulations
that HR professionals must navigate.
3. Economic Conditions: Economic stability, currency exchange rates, and labor costs affect HR
strategies like compensation and benefits.
4. Political Environment: Political stability and government policies can impact labor relations,
trade, and employment practices.
5. Global Labor Market: The availability of skilled labor, talent mobility, and labor market trends
play a significant role in HRM decisions.
6. Technological Advances: The adoption of technology and digital tools can influence HR processes,
such as recruitment, training, and remote work arrangements.
7. Business Strategy: HRM aligns with an organization’s strategic goals, so shifts in corporate
strategy will affect HR practices.
8. Organizational Culture: The culture and values of a company can shape HR practices, such as
employee engagement and diversity and inclusion efforts.
9. Ethics and Social Responsibility: Increasingly, organizations are focusing on ethical and socially
responsible HR practices, which impact global HRM.
10. International Expansion: The extent and pace of a company’s global expansion influence HRM,
including staffing, training, and compliance.
11. Technology and Data Privacy: Data privacy regulations and technology concerns impact HRM
practices like data management and employee monitoring.
12. Global Competitiveness: To remain competitive, companies must adapt HR strategies to attract,
retain, and develop a global workforce.
These factors require HR professionals to be flexible and adaptable in designing and implementing HRM
strategies that fit the specific context of their global operations.
Scope of QWL
Work plays a central role in the life of the worker engaged in a productive organisation. It has an
important impact on (a) shaping his personality, (b) determining his performance, (c) commitment to
fellow employees, and (d) commitment to the organisation and the society. The workers expect the
following needs to be fulfilled by their organisations:
i. Fair and Reasonable Pay: QWL is basically built around the concept of equitable pay. The
employees must be paid their due share in the progress and prosperity of the firm. Compensation
has got twin objectives, firstly, should create a Favourable environment whereby the organisation
utilizes the human resources to the maximum extent. Secondly, the compensation should help
the employee to maintain himself and his family with a standard in the society
ii. Favourable and Safer Environments: According to Walton, the QWL is nothing but provision of a
work environment absolutely free from various hazards arising out of natural and unnatural
things. He further emphasises the need for reasonable hours of work, Favourable physical
conditions of work, age restrictions, etc. to be followed by the organisations In India, we have the
Factorien Act, 1948 and several other labour laws which provide the various rules and regulations
of protecting the workers from the health hazards at the working site.
iii. Employment Benefits: Workers have raised their expectations over the years and now feel
entitled to benefits that were once considered a part of the bargaining process. They want a share
in the profits of the organisation in addition to medical, housing and welfare facilities.
iv. Job Security: Employees want stability of employment. They do not like to be the victims of
whimsical personnel policies of employers. The workplace should offer security of employment.
Layoffs and retrenchment are opposed tooth and nail by all categories of employees these days.
v. Job Satisfaction: The workers are living beings. They want to war on the jobs that will utilise their
talents and thus satisfy them. The management must enrich the jobs and redesign the jobs in
such a manner that workers feel satisfied.
vi. Provisions of autonomy as well as control for developing human resource: As the nature of work
has become highly monotonous today the worker becomes more mechanical towards the
machines and lacks controls on them. According to Walton, when sufficient autonomy as well
control are given to workers, who in turn will use their innate skills and abilities for developing
the organisation, it will lead to improvement of QWL in the organisations
vii. Scope for better career opportunities: Now-a-days, workers are not only concerned with their
pay prospects, but also the scope for improving their technical and academic skills. Therefore, it
becomes imperative on the part of the management to provide facilities for improving such skills.
The management should always think of utilising the existing human resource for expansion and
development of the organisation.
Principles of Quality of Work Life
According to N.Q.Herrick and M.Maccoby there are four basic principles, which will humanize work and
improve the Quality of Work Life:
I. The Principle of Security: Quality of work cannot be improved until employees are relieved of the
anxiety, fear and loss of future employment. The working conditions must be safe and fear of
economic want should be eliminated. Job security and safety against occupational hazards is an
essential precondition of humanization of work.
II. The Principle of Equity: There should be a direct and positive relation between effort and reward.
All types of discrimination between people doing similar work and with same level of
performance must be eliminated. Equity also requires sharing the profits of the organization.
III. The Principle of individualism: Employees differ in terms of their attitudes, skills, potentials etc.
Therefore, every individual should be provided the opportunities for development of his
personality and potential. Humanization of work requires that employees are able to decide their
own pace of activities and design of work operations.
IV. The Principle of Democracy: This means greater authority and responsibility to employees.
Meaningful participation in decision making process improves the quality of work life.
1. Flexible Work Schedules: Employees demand more freedom at the workplace, especially in
scheduling their work. Alternative work schedules for the employees can be flexi time, staggered
hours, compressed work week etc.
• Flexi time is a system of flexible working hours,
• staggered hours schedule means that different groups of employees begin and end work
a different intervals.
I. Compressed work week involves longer hours of work per day for fewer days per week,
e.g., five days a week
2. Job Enrichment /Redesign: Job redesigning or job enrichment improves the quality of the jobs.
It attempts to provide a person with exciting, interesting, stimulating and challenging work. It
helps to satisfy the higher level needs of the employees.
3. Opportunity for Growth/Development: Career development is very important for ambitious and
achievement oriented employees. If the employees are provided with opportunities for their
advancement and growth, they will be highly motivated and their commitment to the
organization will increase.
4. Autonomous Work Groups: Autonomous work groups are also called self managed work teams.
In such groups the employees are given freedom of decision making. They are themselves
responsible for planning, organizing and controlling the activities of their groups. The groups are
also responsible for their success or failures. Under this, is group of workers is given freedom of
decision making on production methods, distribution of tasks, selection of team members and
leaders, work schedules and so on.
5. Employee’s Participation: People in the organization should be allowed to participate in the
management decisions affecting their lives. So they want participation in the decision making
process. Employees participation in the form of suggestion system, Management by Objectives,
etc. Provides psychological satisfaction to the Employees.
6. Suggestion System : suggestion system satisfied psychological needs of the employees. Many
organisation which have introduced some suggestion system make use of cash awards for useful
suggestions. They sometimes published the workers name with his photograph in the company’s
magazine. This motivates the employees to be something which may be of great use of the
organisation.
7. Job Security: Employees want stability of employment. Adequate job security provided to the
employees will improve the Quality of Work Life to a large extent.
8. Equitable Justice: The principle of equitable administrative justice should be applied in
disciplinary actions, grievance procedures, promotions, transfers, work assignments etc. Partiality
and biasness at any stage can discourage the workers and affect the Quality of Work Life.
Close attention to Quality of Work Life (QWL) provides a more humanized work environment. It attempts
to serve the higher-order needs of workers as well as their more basic needs. It seeks to employ the
higher skills of workers and to provide an environment that encourages them to improve their skills. The
idea is that human resources should be developed and not simply used. Further, the work should not
have excessively negative conditions. It should not put workers under undue stress. It should not damage
or degrade their humanness. It should not be threatening or unduly dangerous. Finally, it should
contribute to, or at least leave unimpaired, worker’s abilities to perform in other life roles, such as citizen,
spouse, and parent. That is, work should contribute to general social advancement.
QWL in India
QWL stands for “Quality of Work Life,” and it refers to the overall well-being of employees in the
workplace. In India, like in many other countries, there is a growing emphasis on improving the quality
of work life for employees. Companies are implementing various measures to enhance employee
satisfaction, work-life balance, and overall job satisfaction. This includes providing flexible work
arrangements, promoting a positive work culture, offering wellness programs, and more. The specific
initiatives can vary from one organization to another, but the goal is to create a better work environment
for employees.
In the Indian perspective, Quality of Work Life (QWL) is of significant importance due to its impact on
employee well-being and productivity. Several factors influence QWL in India:
i. Work-Life Balance: Work-life balance is a critical aspect of QWL in India, given the strong
emphasis on family and personal life. Many organizations offer flexible working hours and remote
work options to help employees balance their professional and personal responsibilities.
ii. Job Security: Job security is a major concern for Indian employees. Companies that provide job
stability and growth opportunities contribute positively to QWL.
iii. Compensation and Benefits: Competitive salaries, benefits like health insurance, and retirement
plans play a crucial role in improving QWL. Employees in India often consider these factors when
evaluating their work experience.
iv. Cultural Sensitivity: Recognizing and respecting India’s diverse culture, values, and traditions is
essential for promoting a positive work environment and QWL.
vi. Stress Management: Coping with the demands of work and life in India can be stressful. Many
organizations offer stress management programs and mental health support to enhance QWL.
vii. Health and Wellness: Health and wellness initiatives are increasingly common in Indian
workplaces. These may include gym facilities, yoga sessions, and health check-up programs.
viii. Opportunities for Growth: Indian employees value opportunities for skill development and
career growth. Companies that invest in training and development programs can significantly
improve QWL.
ix. Gender Equality: Promoting gender equality in the workplace is a critical aspect of QWL in India.
This includes initiatives to ensure equal pay, maternity leave, and a safe working environment for
women.
x. Work Culture: Fostering a positive and inclusive work culture is vital for enhancing QWL. This
includes addressing issues like workplace harassment and discrimination.
Overall, QWL in India is a multifaceted concept that considers the cultural, economic, and social aspects
of the country. Companies that prioritize employee well-being and offer a supportive work environment
tend to have better QWL, leading to increased job satisfaction and productivity among their employees.
HR Analytics
HR analytics is the process of collecting and analyzing Human Resource (HR) data in order to improve an
organization’s workforce performance. The process can also be referred to as talent analytics, people
analytics, or even workforce analytics. This method of data analysis takes data that is routinely collected
by HR and correlates it to HR and organizational objectives. Doing so provides measured evidence of how
HR initiatives are contributing to the organization’s goals and strategies.
Types of HR Analytics
HR Analytics is the combination of skills, technologies, and practices used to examine HR data and
performance as a way to gain insights and make data-driven decision using statistical analysis. There are
four types of HR analytics :
1.Descriptive Analytics
• Gives a clear picture of what has happened in the past and what the current scenario is.
• Take a critical look at your current state of the business.
• Help to know turnover rate, time to fill, cost of hire, etc.
• Data aggregation, data mining, scorecards and other techniques are employed.
2.Diagnostic Analytics
• Gives more critical look into the past and present of business and
• Help to understand why the issues have occurred and all the recent behind it.
• Tell why such a things has happened and based on the findings, organisation can strategize
to improve your business
• Techniques used data mining, daughter discovery drill down and correlations
3.Predictive Analytics
• Help to make models that will help to make accurate predictions and
• Make real time changes that will give the best possible results
• Also provides recommended actions based on the expected result from the HR
• Recommendation engines.
Objectives
1) Ensuring return on improved investment
2) Impacting individual well-being
3) Aligning talent management strategy &organisational goals
HR analytics also known as human resources analytics or talent analytics, It is the process
of using data and technology to analyze and optimize various aspects of an organizations
human resources function. It involves collecting and analysing data related to employees
such as recruitment, performance, retention and other HR related metrics.
The goal of HR analytics is make data-driven decisions to improve workforce management,
enhance employee productivity and ultimately contribute to organizations overall
success. It is a valuable tool for HR professionals to better understand and manage their
workforce.
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