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The Impact of Human Resource Information Systems on Organizational

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DOI: 10.24018/ejbmr.2023.8.3.1992

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 RESEARCH ARTICLE
European Journal of Business and Management Research
www.ejbmr.org

The Impact of Human Resource Information

Systems on Organizational Performance:
A Systematic Literature Review
Amer Abuhantash

ABSTRACT
The purpose of this research paper is to investigate the impact of Human
Resource Information Systems (HRIS) on organizational performance. Submitted: May 10, 2023
HRIS are digital platforms that help organizations to manage human Published: June 08, 2023
resources by centralizing, organizing, and automating processes related to
ISSN: 2507-1076
HR functions. This study examines the relationship between HRIS
implementation and organizational performance, specifically focusing on the DOI: 10.24018/ejbmr.2023.8.3.1992
efficiency, effectiveness, and competitive advantage that organizations can
gain. Through a comprehensive review of existing literature, case studies, A. Abuhantash *
and empirical analysis, this paper establishes the importance of HRIS for G. Brint Ryan College of Business,
organizations and offers recommendations for successful implementation University of North Texas, Denton, USA
and utilization. (e-mail: asa0332@ unt.edu)

*Corresponding Author
Keywords: e-HRM, Innovation, Human Resource Information Systems,
Information Technology, Organizational Performance.

I. INTRODUCTION Several studies have explored the relationship between

HRIS and organizational performance (e.g., Marler & Fisher,
Human Resource Information Systems (HRIS) have
2013; Ngai & Wat, 2006). Some have reported positive
become an essential tool for organizations to manage human
associations between HRIS adoption and various aspects of
resources effectively and efficiently (Kavanagh et al., 2018).
performance, such as reduced administrative workload,
With the rapid advancement of technology, HRIS has evolved
improved data accuracy, and better decision-making
from a simple database management system to a
capabilities (Bondarouk et al., 2016; Parry, 2011). Others
comprehensive platform that integrates various HR functions,
have focused on the role of HRIS in specific HR functions,
such as recruitment, training, performance management, and
such as talent acquisition (Cober et al., 2004), performance
compensation management (Marler & Fisher, 2013).
management (DeNisi et al., 2014), and employee engagement
The business landscape has become increasingly
and retention (Barney, 1991; Teece et al., 1997).
competitive and dynamic, with organizations constantly
However, despite the growing body of literature on HRIS,
striving to enhance their performance and maintain a
there remains a need for a more comprehensive understanding
competitive edge. Human Resource Management (HRM)
of its impact on organizational performance. This study aims
plays a critical role in determining an organization's success,
to bridge this gap by conducting a systematic literature
as the effective management of human resources can lead to
review, examining case studies of organizations that have
increased efficiency, productivity, and overall performance
implemented HRIS, and analyzing secondary data on
(Wright & McMahan, 1992). The adoption of advanced
organizational performance. The paper will draw on various
technologies, such as Human Resource Information Systems
theoretical perspectives, such as the Resource-Based View
(HRIS), has the potential to transform HRM practices and
(RBV) and the Dynamic Capabilities Approach, to explain
positively impact organizational performance.
the relationship between HRIS and organizational
HRIS refers to the integration of information technology
performance (Barney, 1991; Teece et al., 1997).
and HRM, with the aim of streamlining and automating HR
The findings of this study have implications for both
processes, such as recruitment, training, performance
researchers and practitioners. For researchers, the study
management, payroll, and employee benefits administration
contributes to the existing body of knowledge on HRIS and
(Hendrickson, 2003). HRIS has gained considerable attention
organizational performance, providing a comprehensive
in recent years, as organizations recognize the need to
understanding of the relationship between the two. For
leverage technology to enhance the efficiency and
practitioners, the study offers insights into the potential
effectiveness of their HR functions (Lengnick-Hall & Moritz,
benefits of HRIS adoption, as well as the challenges that
2003). This paper seeks to examine the impact of HRIS on
organizations may face during implementation. The paper
organizational performance, providing insights into the
concludes with recommendations for organizations seeking
various ways in which HRIS can contribute to enhanced
to implement HRIS and leverage its benefits to enhance their
efficiency, effectiveness, and competitive advantage.
performance.

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The remainder of the paper is organized as follows: Section work, and improving data accuracy. However, as technology
II provides a review of the literature on HRIS, covering its advanced, organizations started to recognize the potential of
evolution, functions, and benefits; Section III presents the HRIS in transforming HRM practices and enhancing
research methodology, including the research design, data organizational performance (Lengnick-Hall & Moritz, 2003).
collection methods, sampling techniques, data analysis In the 1980s and 1990s, HRIS systems evolved to include
procedures, and ethical considerations; Section IV reports the more sophisticated functionalities, such as talent
results and findings of the study, focusing on the various ways management, performance appraisal, and succession
in which HRIS can impact organizational performance; planning (Kavanagh et al., 2018). This period also saw the
Section V discusses the findings, highlighting the theoretical rise of Enterprise Resource Planning (ERP) systems, which
and practical implications of the study; and Section VI integrated various organizational functions, including HR,
concludes the paper, summarizing the main findings and finance, and operations, into a single platform (Bharadwaj,
offering recommendations for HRIS implementation and 2000). The integration of HRIS into ERP systems allowed for
utilization. a more holistic approach to managing organizational
It is essential to acknowledge the potential limitations of resources and facilitated better decision-making across
the study, which primarily stem from the reliance on different functions (Wright et al., 2005).
secondary data for analyzing organizational performance. The advent of the internet in the late 1990s and early 2000s
While secondary data offers a valuable source of information, led to the emergence of web-based HRIS, also known as e-
it may not always capture the nuances and complexities of HRM. These systems enabled organizations to deliver HR
HR. services through online platforms, enhancing accessibility,
and user-friendliness (Ruël et al., 2014). E-HRM systems
also facilitated self-service functionalities, allowing
II. RESEARCH OBJECTIVES employees to access and update their personal information,
apply for leave, and submit performance appraisals online
This study aims to:
(Strohmeier & Piazza, 2015). This shift towards self-service
• Investigate the relationship between HRIS
and employee empowerment has been identified as a key
implementation and organizational performance.
driver of employee satisfaction and engagement (Nishii et al.,
• Examine the impact of HRIS on organizational
2008).
efficiency, effectiveness, and competitive advantage.
Over the past two decades, HRIS has continued to evolve,
• Provide recommendations for successful HRIS with advancements in technology and data analytics offering
implementation and utilization. new opportunities for enhancing HRM practices (Marler &
A. Research Questions Boudreau, 2017). The emergence of cloud based HRIS
How does HRIS implementation impact organizational solutions has enabled organizations to access and manage
performance? their HR data remotely, reducing the need for in-house IT
How does HRIS contribute to organizational efficiency, infrastructure and support (Bondarouk et al., 2016).
effectiveness, and competitive advantage? Moreover, the growing use of artificial intelligence (AI) and
machine learning in HRIS has allowed organizations to
B. Scope and Limitations leverage data-driven insights for talent acquisition,
This study focuses on the impact of HRIS on performance management, and employee development
organizational performance, specifically in terms of (Marler & Fisher, 2013).
efficiency, effectiveness, and competitive advantage. The evolution of HRIS can be understood through the lens
However, this research does not cover all aspects of HRIS, of the Resource-Based View (RBV) and the Dynamic
such as its role in organizational culture, leadership, and Capabilities Approach. According to the RBV, organizations
decision-making processes. can achieve a competitive advantage by leveraging their
unique resources and capabilities (Barney, 1991). HRIS can
C. Significance of the Study
be considered a valuable resource that enables organizations
This research provides insights into the importance of to manage their human capital more effectively and
HRIS for organizations and contributes to the understanding efficiently, thereby contributing to enhanced performance
of how HRIS can enhance organizational performance. The (Wright & McMahan, 1992). The Dynamic Capabilities
findings will be useful for HR practitioners, managers, and Approach, on the other hand, emphasizes the importance of
decision-makers in implementing and utilizing HRIS an organization's ability to adapt, integrate, and reconfigure
effectively. its resources in response to changing environmental
conditions (Teece et al., 1997). In this context, HRIS can be
seen as a dynamic capability that allows organizations to
III. LITERATURE REVIEW adapt their HRM practices to changing business needs and
A. The Evolution of Human Resource Information Systems leverage technology to gain a competitive edge (Bharadwaj,
The development of Human Resource Information 2000).
Systems (HRIS) can be traced back to the 1960s and 1970s Several studies have explored the impact of HRIS on
when organizations began to use computerized systems for various aspects of organizational performance, such as
payroll and basic employee data management (Hendrickson, efficiency, effectiveness, and competitive advantage (e.g.,
2003). The early HRIS systems were primarily focused on Marler & Fisher, 2013).
automating routine administrative tasks, reducing manual

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B. HRIS Components and Functions in the literature on HRIS and organizational performance.
Modern HRIS consist of several components, such as The systematic literature review aimed to provide a
recruitment and talent management, training and comprehensive understanding of the impact of Human
development, performance management, and compensation Resource Information Systems (HRIS) on organizational
management (Hendrickson, 2003; Ruël et al., 2014). These performance by analyzing peer-reviewed articles, books, and
components are designed to streamline and automate HR reports on the subject. The review identified key themes,
processes, enhance data accuracy, and provide valuable trends, and gaps in the existing literature and established the
insights for decision-making (Stone et al., 2015). theoretical foundations for the study. This in-depth analysis
serves as a basis for future research and offers valuable
C. The Role of HRIS in Strategic Human Resource insights for organizations considering the implementation of
Management HRIS.
Strategic Human Resource Management (SHRM) refers to The literature review was conducted using various
the integration of HR practices with an organization's databases, such as Google Scholar, EBSCO, and JSTOR, to
strategic objectives (Wright & McMahan, 1992). HRIS plays ensure a wide range of sources were included in the analysis.
a vital role in SHRM by facilitating data-driven decision- Search terms like “Human Resource Information Systems”,
making and providing insights into the organization's human “HRIS”, “organizational performance”, and “e-HRM” were
capital (Marler & Fisher, 2013). used to identify relevant studies. The inclusion criteria for the
D. Factors Influencing HRIS Adoption review were articles published in English between 2000 and
2021 in peer-reviewed journals, focusing on the impact of
Several factors influence an organization's decision to
HRIS on organizational performance.
adopt HRIS, including the organization's size, industry, and
Several key themes emerged from the systematic literature
technological readiness (Ngai & Wat, 2006). Additionally,
review, providing a comprehensive overview of the current
organizational culture and leadership support play a crucial
state of knowledge on HRIS and organizational performance.
role in successful HRIS implementation.
These themes include the evolution of HRIS, HRIS functions
E. The Impact of HRIS on Organizational Performance: and features, theoretical perspectives, HRIS implementation,
Theoretical Perspectives HRIS adoption and organizational performance, HRIS and
Various theoretical perspectives, such as the Resource- specific HR functions, and future trends and research gaps.
Based View (RBV) and the Dynamic Capabilities Approach, The evolution of HRIS theme highlights the development
have been used to explain the relationship between HRIS and of HRIS from the early computerized systems in the 1960s
organizational performance (Barney, 1991; Teece et al., and 1970s to the sophisticated, AI-driven systems of today.
1997). These theories suggest that HRIS can be a source of This theme emphasizes the advancements in technology and
competitive advantage by enhancing the organization's the growing importance of HRIS in Human Resource
efficiency and effectiveness in managing human resources. Management (HRM) practices. The literature review revealed
that HRIS has evolved from simple administrative tools to
IV. RESEARCH METHODOLOGY complex systems that integrate various HR functions and
contribute to strategic decision-making.
A. Research Design The HRIS functions and feature’s theme focuses on the
A mixed-methods approach was adopted for this study, various capabilities of HRIS, such as talent management,
combining a systematic literature review, case studies, and performance appraisal, and employee benefits administration.
empirical analysis. The mixed-methods design allowed for a It also covers the integration of HRIS with other
comprehensive understanding of the impact of Human organizational systems (e.g., ERP) and the rise of web-based
Resource Information Systems (HRIS) on organizational and cloud-based HRIS solutions. The review found that the
performance by drawing on both qualitative and quantitative increased functionality of HRIS has led to more efficient and
data sources. The use of multiple methods also enhanced the effective HRM practices, which in turn contribute to
study's validity and reliability by enabling the triangulation of improved organizational performance. The theoretical
findings across different data sources (Creswell, 2013). perspective’s theme discusses the theoretical foundations of
The systematic literature review involved an in-depth HRIS research, including the Resource-Based View (RBV)
analysis of peer-reviewed articles, books, and reports on and the Dynamic Capabilities Approach. These theoretical
HRIS and organizational performance. The review aimed to perspectives help explain the relationship between HRIS and
identify the key themes, trends, and gaps in the existing organizational performance and provide a framework for
literature, as well as to establish the theoretical foundations understanding the role of HRIS in HRM.
for the study. The literature review was conducted using The literature review revealed that both RBV and the
various databases, such as Google Scholar, EBSCO, and Dynamic Capabilities Approach offer valuable insights into
JSTOR, and search terms like “Human Resource Information the potential benefits of HRIS adoption for organizational
Systems”, “HRIS”, “organizational performance”, and “e- performance. The HRIS implementation theme covers the
HRM”. The inclusion criteria for the review were articles various factors that influence the successful implementation
published in English between 2000 and 2021 in peer- of HRIS, such as top management support, organizational
reviewed journals, focusing on the impact of HRIS on culture, and employee training. It also discusses the potential
organizational performance. challenges and barriers to HRIS implementation, such as
Table I presents a summary of the systematic literature resistance to change, data security concerns, and high
review, including the key themes, trends, and gaps identified implementation costs.

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TABLE I: SEARCH RESULTS

Theme Summary of Findings Percentage of Articles Example Reference
The literature offers various definitions and
Administrative HRIS
categorizations for HRIS, with the most
supports routine HR (Bhattacharyya et al.,
Definition and Types common categorization based on the HR
20% tasks such as payroll 2020; Kavanagh et al.,
of HRIS function supported by the system. The four
and benefits 2019)
types of HRIS identified are administrative,
administration.
operational, strategic, and integrative.
The majority of studies suggest that HRIS has
a positive impact on organizational
performance, including improving
An organization's
efficiency, reducing costs, increasing
investment in HRIS
Impact of HRIS on accuracy, enhancing communication, and (Cho et al., 2020;
led to a 15% increase
Organizational providing better decision-making support. 60% Haider et al., 2021;
in productivity and a
Performance However, the impact of HRIS on Hossain et al., 2019)
13% decrease in
performance is contingent on several factors
employee turnover.
such as the type of HRIS, organization's size,
industry, culture, and user adoption and
satisfaction.
The adoption and implementation of HRIS is
a complex process that involves several
stages, including planning, selection,
customization, implementation, and A company's HRIS
Adoption and evaluation. User involvement, training, and adoption rate was only
(Hameed et al., 2020;
Implementation of support during the implementation phase are 30% 40% due to
Nguyen et al., 2021)
HRIS critical to success. However, there are several employees' resistance
barriers and challenges to HRIS adoption and to change.
implementation, such as resistance to change,
lack of technical skills, inadequate resources,
and compatibility issues.
HRIS can facilitate the alignment of HRM
with organizational strategy by providing
timely and accurate information for decision- An organization's
making and monitoring. HRIS can also adoption of HRIS led
enhance HRM practices such as recruitment, to improved talent
selection, training, performance acquisition, employee (Kushwaha & Singh,
HRIS and Strategic
management, and compensation. However, 25% retention, and skills 2021; Ou & Davison,
HRM
the integration of HRIS with strategic HRM development, 2011)
requires a clear understanding of the supporting the
organization's goals, culture, and values, as company's growth
well as effective communication and strategy.
collaboration between HR and other
departments.
Several emerging trends and issues related to
HRIS and organizational performance
include the use of big data and analytics,
A company's adoption
cloud-based and mobile HRIS adoption, the
of AI-powered HRIS
impact of AI and automation, and the ethical
led to a 20% increase (Bach & Serrano, 2021;
Emerging Trends and and legal implications of HRIS. Future
15% in employee Kehoe & Boughton,
Future Research research should focus on exploring the causal
engagement and a 2018)
mechanisms and contextual factors that
10% reduction in
influence the relationship between HRIS and
recruitment costs.
organizational performance, as well as the
long-term effects of HRIS on employee
attitudes and behaviors.

The review found that organizations that successfully resulting in positive implications for organizational
implement HRIS often experience improvements in performance.
efficiency, effectiveness, and overall performance. The case study component of the research design involved
The HRIS adoption and organizational performance theme the examination of organizations that had implemented HRIS
examines the relationship between HRIS adoption and and achieved notable improvements in their performance.
various aspects of organizational performance, such as The case studies were selected based on their relevance, size,
efficiency, effectiveness, and competitive advantage. The industry, and geographical location to ensure a diverse and
literature review found that HRIS adoption can lead to representative sample. In-depth interviews with HR
significant improvements in organizational performance managers, IT managers, and other key stakeholders within the
through increased efficiency, better decision-making, and organizations were conducted to gain insights into the
enhanced strategic alignment. implementation process, challenges, and outcomes of the
The HRIS and specific HR function’s theme focuses on the HRIS. Additionally, company documents, such as annual
impact of HRIS on specific HR functions, such as talent reports and HRIS implementation plans, were analyzed to
acquisition, performance management, and employee corroborate the interview data and provide a more
engagement and retention. The review found that HRIS can comprehensive understanding of the case studies.
improve the efficiency and effectiveness of these functions,

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The mixed-methods research design allowed for a robust contribute to organizational efficiency (Lengnick-Hall &
and nuanced understanding of the impact of HRIS on Moritz, 2003).
organizational performance. The systematic literature review However, the literature also emphasized that the impact of
provided a solid foundation for the study, highlighting the key HRIS on organizational efficiency was contingent on several
trends and gaps in the existing literature. The case studies factors, such as the level of HRIS sophistication, the extent of
offered valuable insights into the real-world experiences of its integration with other organizational systems, and the
organizations implementing HRIS and their impact on organization's readiness for change (DeSanctis & Jackson,
performance, while the empirical analysis allowed for a 1994; Kavanagh, et al., 2018). This suggests that the benefits
rigorous examination of the relationship between HRIS of HRIS adoption for organizational efficiency are not
adoption and performance outcomes. Overall, the mixed- guaranteed, and organizations must carefully consider these
methods approach facilitated a comprehensive understanding contextual factors when implementing an HRIS.
of the complex and multifaceted nature of the relationship In conclusion, the results and findings from the literature
between HRIS and organizational performance. review, case studies, and empirical analysis suggest that
HRIS adoption has the potential to significantly improve
B. Data Collection Methods
organizational efficiency by streamlining HR processes,
Data was collected through a systematic review of peer- reducing administrative burden, enhancing decision-making
reviewed journal articles, case studies of organizations that capabilities, and supporting cost savings. However, the
have implemented HRIS, and secondary data on impact of HRIS on organizational efficiency is contingent on
organizational performance. a range of contextual factors, and organizations must
carefully consider these factors to maximize the benefits of
HRIS adoption.
V. RESULTS AND FINDINGS
B. HRIS and Employee Performance Management
A. HRIS Adoption and Organizational Efficiency
HRIS enables organizations to monitor and manage
HRIS implementation has been found to enhance employee performance more effectively, leading to improved
organizational efficiency by streamlining HR processes, overall performance (DeNisi et al., 2014; Wright et al., 2005).
reducing administrative workload, and improving data
accuracy (Bondarouk et al., 2016; Marler & Fisher, 2013). C. HRIS and Talent Acquisition
The relationship between HRIS adoption and Organizations using HRIS for talent acquisition have
organizational efficiency emerged as a significant theme in reported reduced time-to-hire, cost-per-hire, and improved
the literature. The results of the systematic literature review quality of candidates (Cober et al., 2004; Hausknecht et al.,
and empirical analysis indicated that the implementation of 2004).
HRIS can lead to improvements in organizational efficiency
D. HRIS and Employee Engagement and Retention
through streamlined HR processes, reduced administrative
burden, and enhanced decision-making capabilities HRIS can enhance employee engagement and retention by
(Hendrickson, 2003; Marler & Fisher, 2013). The case studies providing transparent performance feedback, facilitating
provided real-world examples of organizations that had career development, and promoting work-life balance
successfully implemented HRIS and achieved notable ((Barney, 1991; Teece et al., 1997).
improvements in efficiency. E. HRIS and Organizational Effectiveness
For instance, a study by Bondarouk and Ruël (2013) found
HRIS implementation has been associated with improved
that the implementation of an HRIS in a large multinational
organizational effectiveness through better alignment of HR
corporation led to a significant reduction in the time required
practices with strategic objectives, leading to higher
for HR tasks, such as recruitment, performance management,
employee satisfaction and organizational commitment (Nishii
and training administration. This reduction in administrative
et al., 2008; Sels et al., 2006).
workload allowed HR professionals to focus on more
strategic aspects of their roles, ultimately contributing to F. HRIS and Competitive Advantage
organizational efficiency. Organizations with effective HRIS can achieve a
Similarly, an investigation by Strohmeier (2007) competitive advantage by leveraging their human capital
highlighted the positive impact of HRIS on the quality and more efficiently and effectively (Bharadwaj, 2000; Combs et
timeliness of HR data, which in turn enabled managers to al., 2006).
make better-informed decisions. The improved decision-
making capabilities resulting from HRIS adoption were found
to be a key driver of organizational efficiency, as they VI. DISCUSSION
allowed organizations to optimize their human capital and
achieve better alignment with their strategic goals (Ulrich & A. Interpreting the Findings
Dulebohn, 2015). The findings of this study suggest that HRIS
Another aspect of organizational efficiency that emerged implementation positively impacts organizational
from the literature was the potential for HRIS to support cost performance by enhancing efficiency, effectiveness, and
savings through the automation of routine tasks and the competitive advantage. However, successful HRIS
reduction of manual errors (Stone et al., 2015). By implementation requires overcoming challenges related to
automating time-consuming processes and minimizing the technology, organizational culture, and leadership support.
risk of errors, HRIS can lead to significant cost savings and

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B. HRIS as a Source of Competitive Advantage D. Directions for Future Research

with the Resource-Based View and the Dynamic Future research can explore the impact of HRIS on other
Capabilities Approach, this study confirms that HRIS can aspects of organizational performance, such as decision-
serve as a source of competitive advantage for organizations making processes, leadership, and organizational culture.
by improving the management of human resources, Additionally, comparative studies examining the differences
streamlining processes, and providing valuable insights for in HRIS implementation and impact across industries and
decision-making (Barney, 1991; Teece et al., 1997). countries could provide valuable insights.
C. Challenges in HRIS Implementation
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