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The Role Of Human Resource Information System In Effective Workforce Planning
2013
1 ESHANK GARG@ OYLMPIA COLLEGE
UNIVERSITY OF DERBY
THE ROLE OF HUMAN RESOURCE INFORMATION SYSTEM
IN EFFECTIVE WORKFORCE PLANNING
BY
ESHANK GARG
UNIVERSITY OF DERBY,
UNITED KINGDOM
The Role Of Human Resource Information System In Effective Workforce Planning
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UNIVERSITY OF DERBY
Independent Study Commencement Date: JANUARY, 05, 2012
Independent Study Completion
Date: SEPTEMBER, 5,
2013
THE ROLE OF HUMAN RESOURCE INFORMATION SYSTEM IN
EFFECTIVE WORKFORCE PLANNING
BY
ESHANK GARG
Dissertation submitted in part fulfillment of the
Requirements of the University of Derby for the degree of
Master of Business in Administration
DR. JOANNE HEE
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SIGNATURE: ______________________
WORD COUNT: 14,629
ACKNOWLEDGEMENT
The author wishes to extend her sincere thanks and gratitude to various individuals who
has supported me during the completion of this dissertation, without them, this paper
would not be possible. Each of them has been a great source of inspiration, strength and
happiness all throughout the making of this study.
An acknowledgement for the invaluable words of wisdom, assistance and pieces of
advice of his supervisor Dr. Joanne Hee, in the preparation and checking of the
manuscript, an endless gratitude to the human resource personnel of all the
organizations to spare their time despite their busy schedules in meeting their deadlines
to answer the questionnaires and to HR executives who check his questionnaires for
accuracy, and allowed him for interview.
A special note of thanks to her greatest and precious friends whose help,
encouragement, and sisterly treatment praise worthy, They were a source of valuable
assistance, Her deepest love and affection to her considerate and understanding parents
whose unending support cannot be neglected and also to her sister for her words of
encouragement. Above all, to God Almighty who provided numerous opportunities
culminating with this successful research.
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Eshank Garg
05/09/2013
ABSTRACT
Human Resource Information System (HRIS) has become one of most vital information
systems in the market. This study focuses on the role of HRIS in human resource
planning (HR) in private sector organizations. The purpose is to explore the
functionality and contribution of HRIS in workforce planning through HRIS recruiting,
training & development subsystems and succession planning subsystem as perceived by
senior HR executives in private sector organizations.
A pilot survey was carried out to identify the problem using structured interviews with
Heads of HR of two selected private companies. A structured questionnaire was used to
collect data from senior HR executives of selected private sector companies. Answers
received from 45 respondents were analyzed. The overall response rate was 56 percent.
The deductive mode of reasoning, cross-sectional study and quantitative techniques
were selected as research methods.
The results of the survey showed that the most frequently accepted HRIS feature is
training needs analysis (TNA), job analysis and there is high correlation between HRIS
recruitment subsystem and the effectiveness of workforce planning. Most private sector
organizations perceived the contribution to efficiency of workforce planning through
HRIS skill inventory, HRIS TNA, HRIS training program evaluation, HRIS succession
planning,
This study shows that HRIS needs to offer more intelligent capabilities to increase the
effectiveness of HR planning. HRIS vendors need to win the trust of HR professionals
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through enriching features and increasing the awareness and usage of HRIS in HR
planning, especially its effectiveness.
Table of Contents
TITLE PAGE ................................................................................................................................1
ACKNOWLEDGEMENT.............................................................................................................3
ABSTRACT....................................................................................................................................4
TABLE OF CONTENTS ..............................................................................................................5
LIST OF FIGURE .........................................................................................................................9
LIST OF TABLE .........................................................................................................................10
LIST OF ACRONYMS…………………………………………………………………..….....11
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION ......................................................................................................13
1.2 BACKGROUND ........................................................................................................14
1.3 RESEARCH PROBLEM.............................................................................................18
1.4 SIGNIFICANCE OF THE STUDY.............................................................................19
1.5 PURPOSE OF RESEARCH........................................................................................20
1.5.1 RESEARCH QUESTION………………………………………………..20
1.5.2 RESEARCH OBJECTIVES…………………..........................................20
1.6 JUSTIFICATION OF RESEARCH ............................................................................21
1.7 RESEARCH TERMINOLOGY……………………………………………………..22
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1.8 RESEARCH OUTLINE……………………………………………………………..24
1.9 CONCLUSION............................................................................................................25
CHAPTER 2: REVIEW OF LITERATURE
2.1 INTRODUCTION .......................................................................................................27
2.2 LITERATURE REVIEW ...........................................................................................28
2.2.1 HRIS BENEFITS AND OBSTACLES .........................................................29
2.2.2 HRIS USAGE...................................................................................................31
2.3 HRIS ROLE IN HR PLANNING...............................................................................33
2.3.1 TRAINING AND DEVELOPMENT............................................................34
2.3.2 SUCCESSION PLANNING...........................................................................38
2.4.1 RECRUITMENT AND SELECTION..............................................................38
2.4 HRIS MODELS...........................................................................................................41
2.4.1 HYD-SHAFRITZ MODEL ..........................................................................41
2.4.2 RESOURCE FLOW HRIS MODEL............................................................41
2.5 CONCLUSION.........................................................................................................43
CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY
3.1 INTRODUCTION .......................................................................................................46
3.2 RESEARCH DESIGN & METHODOLOGY.............................................................47
3.2.1 RESEARCH PHILOSOPHY........................................................................47
3.2.2 RESEARCH APPROACH ...........................................................................48
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3.2.3 RESEARCH STRATEGY............................................................................49
3.2.4 TIME HORIZONS...................................................................................50
3.2.5 POPULATION AND SAMPLE FRAME ...............................................50
3.2.6 CONCEPTUAL FRAMEWORK............................................................54
3.2.7 VARIABLES ...........................................................................................55
3.2.8 DATA COLLECTION METHODS........................................................56
3.2.9 RESEARCH INSTRUMENTS................................................................57
3.2.10 QUESTIONNAIRE AND VALIDATION PROCESS .........................58
3.3 RELIABILITY AND VALIDATION PROCESS.......................................................58
3.3.1 RELIABILITY..............................................................................................58
3.3.2 VALIDITY ...................................................................................................59
3.4 ETHICAL CONSIDERATION...................................................................................59
3.5 DATA ANALYSIS TECHNIQUES AND TOOLS....................................................60
3.5.1FREQUENCY AND PERCENTAGE DISTRIBUTION .............................60
3.4.3 WEIGHTED MEAN.....................................................................................61
3.4.4 PEARSON’S CORRELATION COEFFICIENT.........................................62
3.6 CONCLUSION............................................................................................................63
CHAPTER 4: DATA ANALYSIS & INTERPRETATION OF DATA
4.1 INTRODUCTION .......................................................................................................65
4.2 FINDINGS AND DISCUSSIONS ..............................................................................66
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4.2.1 RESPONSE RATE.....................................................................................66
4.2.2 PRE-TESTING .........................................................................................66
4.2.3 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS ............67
4.2.4 PRESENTATION OF VARIABLES .......................................................70
4.2.4.1 HRIS RECRUITMENT SUBSYSTEM ..................................71
4.2.4.1 HRIS TRAINING & DEVELOPMENT SUBSYSTEM.........75
4.2.4.1 HRIS SUCCESION PLANING SUBSYSTEM ......................78
4.2.4.1 HRIS WORKFORCE PLANNING………………………….81
4.3 SAMPLE DISTRIBUTION ANALYSIS....................................................................82
4.4 CONCLUSION ABOUT EACH RESEARCH QUESTION ......................................84
4.5 CONCLUSION ABOUT THE RESEARCH PROBLEM ..........................................85
CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSIONS & RECOMMENDATION
5.1 INTRODUCTIOM.......................................................................................................87
5.1 SUMMARY.................................................................................................................88
5.2 RECOMMENDATION...............................................................................................89
5.3 IMPLICATION FOR FUTURE RESEARCH ............................................................91
GLOSSARY…………………………………………………………………………………….92
REFERENCE.............................................................................................................................100
APPENDX I: ..............................................................................................................................114
APPENDX II: ............................................................................................................................124
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LIST OF FIGURES
FIGURE 1.1 LEVELS OF MANAGEMENT AND TYPES OF SUPPORT SYSTEM ...... 15
FIGURE 2.1 TRAINING AND DEVELOPMENT NEEDS ASSESSMENT MODEL ............................ 36
FIGURE 2.2 FRAMEWORK OF RECRUITMENT AND SELECTION ................................................. 39
FIGURE 2.3 THE HYDE- SHAFRITZ HRIS MODEL............................................................................. 41
FIGURE 3.1 SCHEMATIC DIAGRAM FOR THE CONCEPTUAL FRAMEWORK ............................ 54
FIGURE 3.2 VARIABLES IN THE CONCEPTUAL FRAMEWORK .................................................... 55
FIGURE 4.1 DISTRIBUTIONS OF RESPONDENTS ABOUT GENDER.............................................. 67
FIGURE 4.2 DISTRIBUTIONS OF RESPONDENTS ABOUT MARITAL STATUS............................ 68
FIGURE 4.3 DISTRIBUTIONS OF RESPONDENTS ABOUT AGE...................................................... 68
FIGURE 4.4 DISTRIBUTIONS OF RESPONDENTS ABOUT EMPLOYMENT STATUS .................. 69
FIGURE 4.5 INDUSTRIES TO WHICH RESPONDENTS BELONG..................................................... 70
FIGURE 4.6 HRIS JOB ANALYSIS ........................................................................................................ 72
FIGURE 4.7 HRIS SKILL INVENTORY ................................................................................................ 73
FIGURE 4.8 HRIS e-RECRUITMENT...................................................................................................... 74
FIGURE 4.9 HRIS TRAINING NEED ANALYSIS ................................................................................. 76
FIGURE 4.10 HRIS TRAINING PROCESS EVALUATION................................................................... 77
FIGURE 4.11 HRIS CAREER PLANNING.............................................................................................. 79
FIGURE 4.12 HRIS EMPLOYEE POTENTIALITY…………………………………………………….80
FIGURE 4.13 HRIS WORKFORCE PLANNING……………………………………………………….82
FIGURE 4.14 STANDARD ERROR BAR GRAPH…………………………………………………….83
FIGURE 5.1 PROPOSED MODEL OF HRIS……………………………………………….90
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LIST OF TABLES
TABLE 3.1: DISTRIBUTION OF TARGET POPULATION AMONG MANUFACTURING ORGANIZATION .......... 51
TABLE 3.2 DISTRIBUTION OF TARGET POPULATION AMONG SERVICE ORGANIZATION............................ 51
TABLE 3.3 SUMMARY OF DISTRIBUTION OF TARGET POPULATION AMONG ORGANIZATIONS ................ 51
TABLE 3.4 DISTRIBUTION OF SAMPLE AMONG MANUFACTURING ORGANIZATION ................................. 53
TABLE 3.5 DISTRIBUTION OF SAMPLE AMONG SERVICE ORGANIZATION……………………………………………….53
TABLE 3.6 TOTAL NUMBER OF EMPLOYEES IN THE SAMPLE…………………………………………………………………..53
TABLE 3.7 BREAKDOWN OF VARIABLES……………………………………………………………………………………………….114
TABLE 3.8 TYPES OF DATA REQUIREMENT AND SATA COLLECTION METHODS……………………………………115
TABLE 3.9 DATA REQUIREMENT TABLE……………………………………………………………………………………………….116
TABLE 3.10 SUMMARY OF THE STUDY…………………………………………………………………………………………………119
TABLE 4.1 RESPONSE RATE FROM THE ORGANIZATIONS……………………………………………………………………….66
TABLE 4.2 WEIGHTED MEAN AND VERBAL INTERPRETATION ON HRIS ROLE IN RECRUITMENT
SUBSYSTEM…………………………………………………………………………………………………………………………………………120
TABLE 4.3 WEIGHTED MEAN AND VERBAL INTERPRETATION ON HRIS ROLE IN TRAINING AND
DEVELOPMENT SUBSYSTEM………………………………………………………………………………………………………………..121
TABLE 4.4 WEIGHTED MEAN AND VERBAL INTERPRETATION ON HRIS ROLE IN SUCCESSION PLANNING
SUBSYSTEM …………………………………………………………………………………………………………………………………………122
TABLE 4.5 DESCRIPTIVE STATICS…………………………………………………………………………………………………………….83
TABLE 4.6 SUMMARY OF THE RESULT………………………………………………………………………………………………….123
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List of Acronyms
BPO: Business Process Outsource
DSS: Decision Support System
ESS: Executive Support System
HR: Human Resource
HRIS: Human Resource Information Systems
HRM: Human Resource Management
IAAS: Infrastructure as a Service
IS: Information Systems
IT: Information Technology
MIS: Management Information System
PAAS: Platform as a Service
SAAS: Software as a Service
SHRP: Strategic Human Resource Planning
SOA: Service Oriented Architecture
TPS: Transaction Processing Systems
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CHAPTER 1
INTRODUCTION
1.1 Introduction
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Organizations continuously invest substantial amounts of money on Information
System. If they invest without identifying the current value of support and future
limitations, they can’t gain competitive advantage in a rapid changing business world
(Tansley et al 2001). They may even go bankrupt without ever meeting these two ends.
Human Resource Information System (HRIS) is one of the Information System in
which one should invest intelligently, most of the large scale organizations spend large
amount on HRIS, but unfortunately many of them utilize it just for HR administrative
purposes rather than for effective and efficient Human Resource Planning. After
spending considerable amounts, if HRIS is used only for administrative work, it will not
be effective.
This study aims to find out the contribution of HRIS in Human Resource Planning
throughout recruitment, training and succession planning within the perception of
Senior HR and HR executives developing a conceptual framework.
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1.2 Background
As the new economy shifts gears, we enter an era when the careful examination of value
creation is not enough. Therefore entrepreneurs invested further on Information
Technology (IT) and Information System (IS) intending to lead the market and gain
competitive advantage (Tansley et al 2001). Nowadays the most part of daily activities
of managers are spending to receive information, communication and using information
in different affairs of organization. Since the information is the base of all activities in
an organization, there should be system to produce and manage the data. The purpose of
such type of system is ensuring providing proper and reliable information. Such have
been called Information System (Karimidizboni R 2013).
The HRIS got its start in 1960s and 70s as firms converted their personnel records from
hardcopy and punched card, to computer storage (McLeod R and DeSanctis G 1995).
The first generation of computerized HRIS is involved the conversion of manual
information keeping system to computerized system (Mc Adams J 2007).
As the 1970 advances, the second generation of computerized HRIS was initiated with
the introduction of the mini-computer. The second generation of computerized HRIS
was completed in early 1980s. The data repository was moved to the human resource
professional desktop (Bulmash J 2010). Moving the data repository from some
mainframe or computer group to the desktop caused a great deal of excitement in HR
field.
Software vendors observed the desire of HR professional and began to develop systems
to integrate the various areas within their application. The result was the third
generation of the HRIS, a feature rich, broad based, self- contained HRIS. The third
generation took system far beyond being mere data repositories and created tools with
which HR professionals could do much more, the extent to which the organization has
developed their HRIS varies from organization to organization (Francis A 2007).
Therefore, organizations invested further on Information technology (IT) and
Information System (IS) intending to lead the market and to gain competitive
advantage. Gradually, IS turned out to be a backbone of the organization, used for most
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of the operational level activities. Furthermore, IS has been developed to support
business decision making in order to increase the quality of business decisions. (Figure
1.1)
Figure1.1: Level of Management and Types of Support System
Source: (Belle et al 2001)
Organizations endeavored to use IS at managerial and strategic level to gain competitive
advantage, among the four main type of systems within the industry, Management
Information System (MIS) and Decision Support System (DIS) are mostly used for
business decisions. In most of the firms these systems are loosely coupled resulting
ineffective information transportation from one to another, leading to failure to respond
quickly to the challenges in the business environment (Dessler G 2011).
There are lot of terms in use for these systems, but the most common are e-HRM (e
Human Resource Management), HRIS (Human Resource Information System) and
HRMS (Human Resource Management System). There is a fundamental difference
them, as Human Resource Management System has directly implementation in HR
department and employees. Enhancement of HR department is the main goal of HRIS,
which all indirectly improve business (Dusmanescu D and Martinovic A B 2011).
Apart, from that HRIS can be viewed as database system or a series of interconnected
database (Venkateswaran N 2007).
Human Resource Information System
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The increase pressure to support strategic objectives and the greater focus on
shareholder value has led to changes in both job content and expectations of HR
professionals (Shaikh S 2012). Similarly, Mayfield et al (2003), noted that one such
major changes include contemporary use of IS in support of HRM. So, a careful
analysis indicated that increase HRIS usage enabled improved professional
performance.
Human Resource Information System (HRIS) is one of the most important management
information system, which contribute to HR administration function of an organization.
It is the primary transactional processor, editor, record-keeper and functional
application system (Grobler et al 2006). HRIS aptly defined by Hendrickson (2003) as
an “integrated system used to gather, store and analyze information regarding an
organization’s human resources’ comprising of databases, computer applications,
hardware and software necessary to collect, record, store, manage, deliver, present and
manipulate data for human resources function”. It supports the provision of executive
reports and summaries for senior management and is crucial for learning organizations
that see their HR as providing a major competitive advantage (Shaikh S 2012).
It can perform a number of functions from the simple storage and communication of
information to more complex transactions. HRIS becomes an integrated strategic tool
since it collect, manages and report information for decision making (Ruel et al 2004).
Fully integrated HRIS ought to interface with other systems enabling and enhancing the
communication between departments such as payroll system with accounting system.
Since HRIS deals with employee’s personal data, which are sensitive, it should ensure
data security system while transferring information from one place to another. HRIS
should be able to enhance communication between employers and employees and build
strong relationship with line managers and unions (Shiri S 2012). The use of HRIS has
been advocated as an opportunity for human resource professionals to become strategic
partners with top management. HRIS allow HR function to become more efficient and
to provide better information for decision making (Beadles et al 2005). New HRIS trend
seem to build important effect on HR planning embedding new technology with
organizational objective and goals. Enterprise Resource Planning System (ERP), when
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linked with the HRIS subsystem, provides a competitive advantage to organizations
over competitors (Belle et al 2001).
HRIS and Workforce Planning
Workforce Planning is about having right talent with the right skills, at the right time
and cost, to support the organization’s strategy. According to Pattanayak and Biswajeet
(2009), the role of HR is to incorporate planning and control of Human Resource into
the corporate level plans. As a result all resources are used together in the best possible
combination. It deals with the systematic and continuing process of analyzing
organization’s human resource requirement and develops a plan to fulfill the future
workforce positions. It aids to align the organizational objectives with its HR concerns
through short-term as well as long-term strategic HR plan by evaluating feedback
regularly (Anyim FC 2012).
If HRIS facilitates HR planning such as recruitment, training and succession planning,
organizations would gain a competitive advantage. HRIS or Human Resource
Management System (HRMS) can assist in recognizing experienced, qualified and
skilful employees. It can provide a statistical overview for the whole organization to
improve its productivity by selecting and developing potential employees for positions
(Armstrong M 2009).
Organizational recruiting sources such as direct application, advertisements, public or
private employment agencies, colleges; universities etc. are going to be replaced by
HRIS electronic recruiting facilities reducing the cost of the organization. Employee
selection must be according to the job type and relevant skill requirements such as
technical skills, intelligence, interpersonal skills, computer skills etc. HRIS inventory
facilities can be used to store data in a skill database facilitating the selection of the
most suitable candidates after analyzing their skills and qualification according to the
job requirement (Antonio FS 2006).
Organizations make jobs more rewarding by job enlargement, job enrichment, job
rotation and empowerment. In addition, organizations reengineer jobs to compensate
employee shortage. Employees gain training and development opportunities whenever
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HR department decides to redesign current jobs. Tao et al (2006), states that training
especially is an important strategic practice in the development of internal competence.
HRIS facilitates training need analysis to decide what training program might best meet
the need; it assists the organization to maintain a training record for each delegate.
Succession planning is another part of training and development, used to identify high-
potential employee already working in the organization in order to fill the top
management positions whenever they become vacant (Brown J 2002). HRIS is one of
the systems that organizations invest and implement according to their corporate, HR
and IS/IT strategies. HRIS is developed to assist the organizational HR planning.
1.3 Research Problem
Organizations that are smart enough to set overall information system policies in
advance seem to acquire HRIS to fulfill their HR administrative functions as well as
human resource planning functions. Though the existing HRIS system supports HR
planning functionalities of the organization, some organizations do not fully utilize
them for recruiting, training and succession planning due to the dependence on
traditional methods or due to unawareness. Others struggle to align their existing HRIS
system facilities with the HR planning functionalities owing to lack of support from
their existing system or lack of investments to upgrade the system with required
features.
The research findings lead to the conclusion that very few organizations are fully aware
of the administrative functionality of HRIS and make use of them but do not make
optimum use of HRIS functions in support of workforce planning. How does HRIS
contribute to workforce planning? Do the available HRIS functionalities adequately
support organizational HR planning efficiency and effectiveness? This research is to
investigate the contribution of HRIS to Workforce Planning thorough recruitment,
training and succession planning to reveal the strength of HRIS as a management
processing system. This study would guide future HRIS user to make optimum use of
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HRIS functionalities in HR planning rather than employing it only for administrative
work.
1.4 Significance of the Study
In the research context, HRIS is still in its initial stages since a lot of forming and
reforming are going on in the industry. There is a knowledge gap within research
studies as to how HRIS could contribute to effective workforce planning. Therefore,
finding the role of HRIS in workforce planning in private sector organizations would be
very important, and would contribute to the body of knowledge.
Workforce planning is one of the most crucial aspects of an organization, which can be
facilitated by HRIS functionalities. A number of vendors supply HRIS software to the
market under different names and prices. Organizations spend substantial amounts to
acquire HRIS software. After a while, they suffer when they try to align the available
HRIS functionalities with HR planning. Sometimes thought organizational HRIS
support for HR planning features, organizations do not use all the functionality due to
poor response from the users (Nawaz M N 2012). It is time to conduct a proper study to
find out how HRIS could contribute to workforce planning other than as a mean of
facilitating administrative matters. This study would not only fill the existence gap in
research studies, it would also encourage organizations to review there IS policies and
HRIS utilization in HR planning Thought this study, HRIS vendors would also be able
to re-evaluate the HR planning functionality of HRIS to minimize deficiencies and
enhance its services. Furthermore, vendors can decide as to whether they have
instructed their client to make optimum use of HR planning through the opinion of the
senior HR executives.
1.5 Purpose of Research
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The purpose of this research is to explore the functionality and contribution of HRIS in
Workforce planning through HRIS recruiting, training and succession planning
subsystem within the perception of senior HR executives in private sector organizations.
This study would contribute to the body of knowledge by filling the existence gap in the
workforce planning aspect of HRIS studies by analyzing the senior HR executive’s
opinions and awareness of HRIS functionalities towards the success of workforce
planning. Workforce planning and people management was selected as the focus of this
study since it is likely to be supported by HRIS tools; job analysis, skill inventory, e-
recruiting, TNA, training evaluation, succession planning, HRIS labour demand and
supply analysis and decision making. This study would determine the contribution of
this to human resource planning by developing a conceptual framework.
1.5.1 Research Questions
2. How effective and efficient does the HRIS recruitment subsystem contribute to
workforce planning of an organization?
3. How effective and efficient does the HRIS training subsystem contribute to
workforce planning of an organization?
4. How effective and efficient does the HRIS succession planning subsystem
contribute to workforce planning of an organization?
1.5.2 Research Objectives
1. To investigate the contribution of HRIS recruitment subsystem to workforce
planning of an organization.
2. To investigate the contribution of HRIS training subsystem to workforce planning
of an organization.
3. To investigate the contribution of HRIS succession planning subsystem to
workforce planning of an organization.
1.6 Justification of Research
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This research will disclose the role of HRIS in workforce planning with special
emphasis on recruitment, training and succession planning since these processes have
direct involvement in organizational goals.
This study proposes a conceptual framework representing the role of HRIS in
workforce planning through recruitment, training and succession planning.
During the pilot survey, Heads of HR who are directly involved in HR planning were
interviewed to analyze their views. They emphasized that senior HR executives were
more involved in HRIS than them. For this reason, researcher has selected senior HR
executive as a focus to carry out this research, as they are the experts who directly use
HRIS.
Beadles et al (2005) find out that user satisfaction and perception of the system has
often been used as a proxy measure for the effectiveness of the system. This is because
the ideal assessment of HRIS success might include hard measure such as Return on
Investment (ROI) the control of extraneous variables makes this type of measurement of
success difficult if not impossible.
Although the management plans to make use of HRIS in workforce planning, if the
existing HRIS functionality does not support the objectives, the effort will not bear
fruit. This research would help to identify whether the existing HRIS in an organization
is still in developing stage or it has matured to facilitate workforce planning. This study
will identify if organizational HRIS considered MIS (Management Information System)
and DSS (Decision Support System) to support HR decision making or merely TPS
(Transaction Processing System). It makes recommendation for the future developments
of HRIS in order to fit into workforce planning. A lot of research has focused on the
administrative functionalities of HRIS but very few studies have been carried out on the
HR planning aspect of HRIS. There is a knowledge gap as to how recruitment,
selection, training and succession planning functionalities of HRIS contribute to HR
planning. Not many studies exist on the HRIS HR decision support functionality for
workforce planning. Therefore, this research is important.
1.7 Research Terminology
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Co relational analysis
Co relational analysis is done to trace the mutual influence of variable on one another
(Sekaran and Uma 2003), whereas the correlation coefficient (r) indicates the strength
of relationship between two variables.
Cross-sectional study
A cross sectional research is the study of a particular phenomenon (or phenomena) at a
particular time, i.e.; a snapshot (Saunders et al 2003).
Decision support system (DSS)
Decision support system (DSS) refer to computer system used by managers in the
decision making process. Finally distinguished between data-oriented and management
oriented approaches.
Deductive research approach
Deductive research approach involving the testing of a theoretical proposition by the
employment of a research strategy specifically designed for the purpose of its testing
(Saunders et al 2003).
ERP system
ERP system is software that provides computer system interrogation and support to all
units and functions across on organization in a single system, thus eliminating the need
for individual unit database or systems (Babey 2006).
Executive information system (EIS)
Executive information system (EIS) are user- friendly computerized systems designed
specifically to provide selected and summarized information from diverse sources in a
form that permits access, analysis and presentation to assist top level management
(Collier and Dixon 1995).
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Expert system (ES)
An expert system (ES) is a computer system which has the knowledge-based
component of an expert skill held in a form that enables the computer to offer intelligent
advice or take an intelligent decision
Inductive research approach
Inductive research approach involving the development of a theory as a result of the
observation of empirical data (Saunders et al 2003), therefore, general inferences
induced from particular instances
Non-profitability sampling
In non-profitability sampling design, the elements in the population do not have any
probability attaché to their being chosen as sample subjects
Probability sampling design
When elements in the population have a known chance of being chosen as subjects in
the sample, we resort to a probability sampling design.
Positivism
Positivism is a paradigm that originated in the natural sciences. It rests on the
assumption that social reality is singular and objective, and is not affected by the act of
investigating it (Collis and Hussey 2009).
Qualitative and Quantitative method
In new or underdeveloped areas, it is common to apply qualitative methods in a
preliminary stage, thus enabling the researcher to develop a conceptual framework, to
generate hypothesis, or to establish the necessary tools (particularly instruments for
measurement) for the quantitative study.
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1.8 Outline of this research
Chapter 1: Introduction
This chapter includes the background to this research, its objectives and discusses
HRIS‘s functional role within an organization, human resource planning and HRIS
theoretical perceptions.
Chapter 2: Literature survey
This chapter analyses the existing studies and their findings. It also highlights the
existing gaps of knowledge and examines the potential contribution of the current study
to fill this gap.
Chapter 3: Research design
This chapter lays out the conceptual framework of the thesis. Research approach,
methods and strategy are selected considering the alternative actions. Conceptual
framework is developed identifying the variables, their relationships. Select the
appropriate statistical methods that can be used to analyze the data.
Chapter 4: Data Analysis
In this chapter, results are discussed using appropriate charts, graphs and tables with
selected software packages.
Chapter 5: Summary, conclusion and recommendations
Presents a summary of the study recapitulating the findings and highlights future areas
for research. Existing gaps that could not be addressed in the current research are also
documented.
1.9 Conclusion
Information system adds value to an organization enhancing efficiency and
effectiveness of daily activities. Workforce planning is the process of forecasting
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employment needs. HRIS is one of the information systems that facilitates workforce
planning. Even though HRIS facilitates workforce planning, some organizations are
unable to make use of it due to various problems such as lack of support through the
existing system, lack of knowledge or because of dependency on the traditional method.
This research study mainly aims to find out whether the organizational HRIS role
contribute to effective and efficient workforce planning processes through recruitment
and selection and training and succession planning processes.
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CHAPTER 2
REVIEW OF
LITERATURE
2.1 Introduction
Information System is an integrating subject area for man researches in this information
age. HRIS is a management information system, which is employed by many
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organizations spending substantial amounts. Many studies have discussed HRIS
benefits, obstacles and usage on various occasions.
Workforce planning is another research area that has been discussed continuously from
many years. However, there are not many studies based on the contribution of HRIS in
workforce planning throughout recruitment, training and succession planning. This
literature survey attempts to gather the existing knowledge based on HRIS model,
workforce planning, recruitment, training and succession planning. By reviewing
existing studies, the research tries to reveal knowledge gap, which has to be addressed
in a near future.
2.2 Literature Review
Human Resource Information System (HRIS) is a concept concerning the utilization of
Information Technology (IT) development and characteristics for effective managing of
the HRM functions and application (Kovach et al 2002). The last decade has seen a
significant increase in the number of organizations gathering, storing and analyzing
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human resource data using HRIS (Ball 2001; Barron et al 2004; Hussain et al 2007;
Ngai et al 2006).
In the present context of globalization, employing organizations, and their environments
have become increasingly complex. Managers in these organizations face growing
difficulties in coping with workforce that may be spread across various countries,
cultures and political system (Beckers and Bsat 2002). Snell et al (2002) observe that
HRIS can meet the challenge of simultaneously becoming more strategic, flexible, cost-
effective and customer oriented by leveraging information technology. The rapid
development of IT during the last two decade has boosted the implementation and
application e-HRM/ HRIS (Strohmeier 2007). Surveys of HR consultants suggest that
number of organizations adopting HRIS and the depth of applications within the
organizations are continually increasing (Benfatto M C 2010). Kovach et al (2002)
argue that HRIS varies among organization in relation to their size; it can be informal as
the payroll, records and time cards in a small organization.
The emergence of strategic human resource management (SHRM) approach has created
a real need for information about HR (Ball 2001). Studies show that HRIS application
in HR helps in achieving primarily three objectives i.e. cost reduction, efficiency grains,
and facilitating management and improving the strategic orientation of HRM/
innovation, client services (Broderick and Boudreau 1992). Ruel et al (2004) added a
fourth dimension to it i.e. allowing integration of HR functions. These could be set as
HRIS goals and taken as the basic reasons for adaptation of HRIS in an organization.
The current generation of HRIS automates and develops routine administrative and
compliance functions traditionally performed by corporate HR departments and can
facilitate the outsourcing of HR (Barron et al 2004). In doing so, HRIS not only make it
possible for organizations to significantly reduce the costs associated with HR delivery,
but also to reassess the need for retaining internal HR capabilities. However, HRIS also
provide HR professionals with opportunities to enhance their contribution to the
strategic direction of the firm (Lawler et al 2003). Second, HRIS provides an
opportunity for HR to play a more strategic role, through their ability to generate real
time reports on HR issues, including workforce planning (Hendrickson 2003; Lawler et
al 2004; Lengnick Hall et al 2003).
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The existing literature on HRIS suggests that they have different impact on HR across
organizations, but provides little explanation for this variation. Early survey suggested
that HRIS were used predominantly to automate routine tasks (Martinson 1994; Grant et
al 2006). Ball (2001) reported similar results for small and medium sized enterprises in
UK and conducted that HR had missed the strategic opportunity provided by HRIS.
More recent research shows greater use of HRIS in support of strategic decision making
by HR (Hussain et al 2007). However, the extent to which HRIS is used in a strategic
fashion differs across organizations, with the vast majority of organizations continuing
to use HRIS simply to replace manual processing and to reduce costs (Brown J 2002).
2.2.1 HRIS Benefits and Obstacles
Many studies have cited HRIS benefits, such as the improvement in accuracy, the cost
saving and the timely and quick access to information through HR reports (Ngai and
Wat 2006). In HR, reports can be generated from data input into a HRIS database via
previously programmed report generators, thereby making “transparent” HR collective
data from the aggregation of the personal data actually input (Tansley et al 2001). Ngai
and Wat studied how HRIS reduced the cost of an organization. How it maintained
customer satisfaction, improved quality and innovations. Almost all the HR applications
involve the automating of HRM activities (Ngai et al 2006). HRIS was not only
designed to automated HRM activities to gain administrative advantages; rather, it
could be used for decision making to provide strategic advantages for companies. The
key element in the support HRIS provides for the company’s HR strategy is the
availability of information as input for HR relating decision- making processes (Beulen
and Erik 2009). Ngai and Wat (2006), listed benefits of HRIS: increased
competitiveness by improving HR operations shifts the focus of HR from the processing
of transactions to strategic HRM, makes employees part of HRIS and reengineering the
entire HR function of companies. Alvarez-Suescun (2007) also highlighted HRIS as a
competitive tool which can be used in the organizational HR department. Reddic and
Christopher (2009) stated that the scope of HRIS was information rich and transaction
poor. First, this implied that the typical justification for the implementation of HRIS or
reducing costs might not be found in the survey findings presented. It seemed that
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improving customer service and providing higher quality services were important
factors. Second, more effort should be devoted to finding ways to increase the use of
HRIS to support more advanced strategic decision-making tools within public sector
organizations. The evidence showed that there was more use of HRIS for basic
information, but much less on decision support functions. Reddic and Christopher
(2009) arrived at an important conclusion; improving customer service and providing
higher quality services were important than reducing cost, which is not much discussed
in other studies. In particular, most researchers emphasized the decision-making
inability of HRIS.
Kovach and Cathcart (1999) mentioned that lack of top management support, funds, HR
knowledge of system designers and HR solutions are the main factors that keep
organizations away from HRIS. Teo et al (2007), also came up with similar findings:
departmental relative advantage, compatibility, top management support, size of the
organization and HRIS expertise emerged as important variables discriminating
between adopters and non- adopters of HRIS. A research conducted by the Institute of
Management and Administration 2002 indicated the issues in managing a HRIS to
include: lack of staff, lack of budget, problem with time management, need to work
with other departments and lack of IT support. Ngai and Wat (2006) found costs to be
the main barrier to the implementation of HRIS. Ball (2001) identified two fundamental
differences between small and large firms when purchasing HRIS: cost and risk. Small
firms cannot afford advance enterprise resource planning ERP systems (i.e. SAP,
PeopleSoft) due to cost. The risk on implementing new software was high for small
organizations. They needed longer time to develop HRIS to have more sophisticated
facilities. Ngai and Wat (2006) and Ball (2001) showed that small organizations have a
lesser possibility of implementing HRIS due to lack of funds. However, Ball (2001)
foresaw suitable HRIS system for small organizations thought they didn’t facilitate all
the features that large organizations gain. He states that the small business sector is seen
as growth area by some HRIS software vendors who prefer flexible, low-cost genetic,
windows-based products. Recent practitioner literature examining the use of HRIS in
small companies advanced the view that the issues they face regarding HRIS uses are
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slightly different to their larger counterparts, yet research in HRIS to date is oriented to
the larger organization.
Ngai and Wat (2006) concluded that cost of adopting, operating and maintaining the
HRIS is relatively high. Cost created barriers and kept HRIS away from small
organizations. Same issue caused the lack of attention given to develop and enjoy
sophisticated benefits of HRIS. Ozcelik and Ferman (2006) say that HRIS may create
resistance from employees sue to emotional resistance to change or use technology due
to learning difficulties, and fear of measures taken to ensure the security of information.
Most HRIS researchers focus on its benefits and implementation barriers. Most of them
observed the high cost of HRIS. Few of them analyzed the HRIS decision support
benefits.
2.2.2 HRIS Usage
Human resource planning, recruiting, and training and succession planning are less
frequent users within personnel perhaps reflecting greater use of the system for routine
reporting than for decision support. Ngai and Wat (2006) stated that HRIS usage was
decided by the HR strategy of an organization and further described a matching process
between different strategies and different system usage. If the strategy were to reduce
cost, the system would have been based on administration purposes. Ngai and Wat
(2006) classified HRIS into two types according to their usage: “unsophisticated” and
“sophisticated”. Payroll and benefits administration, and employee absence records
keeping electronically is listed as “unsophisticated” since it is an electronic replication
of the contents of the HR department‘s manual files. He called this simple minded
automation. Use of IS in recruitment and selection, training and development,
succession planning, HR planning and performance appraisal, is classified as
“sophisticated” since those support decisions which involve expert judgments. A
quality-based strategy is similar to an expert systems approach. Innovation strategy
matched with decision support systems.
Kovach and Cathcart (1999) also noted that HRIS information could be used for
administrative purposes, which reduce cost and time, and supported more analytical
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decisions as well. They further added two general purposes of HRIS application as
administrative purposes that reduced processing costs and time, and decision- support
application that assisted HR managers, non- HR managers, and employees to make
better decisions. According to a survey Ball (2001) showed that 60 percent of Fortune
500 companies used the HRIS to support daily human resource management (HRM)
operations. He classified HRIS according to administrative and analytical aspects and
predicted out though HRIS was used for administrative purposes, the trend would be to
use it for analytical purposes.
HRIS functionality nowadays includes corporate communication, recruitment,
succession, training, employee opinion survey, compensation, payroll services and
employee verification as well as general information (Ngai and Wat 2006). According
to Beulen and Erik (2009), the HRIS contributes positively to staff retention for global
IT service providers in engineering markets. HRISs have indirect influence on retention
management. But a HRIS can also be a strategic HR tool. HR executives can use HRISs
to support their strategy and talent management programs by considering some specific
functionality, such as human resource planning, staff development and regulatory
compliance, benefits administration, and performance appraisal (Beulen and Erik,
2009). According to Beulen and Erik (2009), performance appraisal is an important
factor in employee retention. In performance appraisal, it is really important that
employee’s individual expectations are managed well, but the same holds for the
expectations of departments and divisions. The degree to which objectivity regarding
individual’s performances is properly assessed is very important and employee’s sense
of being appraised objectively is increased by setting clear objectives before the
assignment, and by assessing their performance together with them afterwards (Beulen
and Erik 2009). These insights should be used to set the HRIS parameters and to
implement its functionalities. When such aspects are implemented, HRIS may indeed
contribute significantly to the optimization of retention management (Beulen, 2009).
Though Beulen (2009) studied in depth the staff retention aspect of HRIS, most of the
researchers had studied unsophisticated usages of HRIS. They have not focused much
on whether the users enjoy the sophisticate usages fully or partly. Are the benefits
received worth the cost? These aspects are not much analyzed by most of researchers.
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Even Beulen (2009) has not done as in-depth study regarding HR planning since his
objective was to find whether HRIS’s contribution to staff retention was positive or not.
2.3 HRIS Role in HR Planning
HRIS provides a foundation if a set of analytical tools that assist managers in
establishing objectives and in evaluation the performance of the organization’s HR
programs. The well designed HRIS will serve as the main management tool for aligning
human resource department goal with long term planning goals (Chauhan et al 2011).
HRIS primary role of integrating human resource management and information
technology has lead to competitive advantage and hence attracted many human resource
managers and professionals. Other vital facts of HRIS reported in literature are effective
human resource decision making and also strengthening an organization’s character
(Sadri and Chatterjee 2003), reducing process and administration cost, speeding up
transaction processing, reduce information errors and improve the tracking and control
the HR actions (Lengnick et al 2003).
It can be summarized that HRIS, is a computerized system that aids in processing of
information relating to human resource management and has come a crucial element of
all organizations. It can be deemed as a device which is designed to fulfill the
manpower information needs of the organization. Thus the importance and role of HRIS
is multifaceted, ranging from operational assistance in collecting, storing and preparing
data for reports, simplifying and accelerating the process and controlling the available
data, reducing labour cost for human resource departments and providing timely and
diverse information to the management of the company, based on which it is possible to
make quality strategic decisions related to human capital (Aggarwal N and Kapoor M
2012). This paper mainly focuses on the role of HRIS in recruitment, training and
development.
2.3.1 Training and Development
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Training and development of employees is crucial in organizations in the era of
competition due to the fact that organizations need to survive, grow and develop. It
could no longer be based on the good will of the superior to train his/her subordinates
(Glaveli and Kufidu 2005). The training and development intervention needed to be
carefully designed and implemented and linked to organizational goals and strategy for
the training investment to pay off.
Training is considered as the process of upgrading the knowledge, developing skills,
bringing about attitude and behavioral changes, improving the ability of the trainee to
perform tasks effectively and efficiently in organization (Will 1994; Palo et al 2003).
Similarly, Steward 1996 combines the two concepts of training and development and
gives an organization function which has the outcome of ensuring that the contribution
of individual and group in achieving the organizational objectives through the
development of appropriate knowledge, skills and attitude of the employee (Ongori H
and Nzonzo JC 2011). Sambrook and Sally (2005) suggests there are difference
between training and development practices relative to organization size and small
firms face unique barriers, including access to time for and the cost of training.
According to Glaveli and Kufidu (2005) the training approach is continuous, systematic
and strategy oriented. The training process consists of four phases.
a. Training Need Analysis (TNA)
b. The design phase, which involves the creation of the training activity. During this
phase, formulates and implements a detailed training plan, referring to: training
objectives and content, staff subject to training, involved resources, methodological
options, training delivery channels-media, centralization/decentralization of the activity,
specific objectives and outcomes etc.
c. The implementation phase, which refers to the understanding of the participant’s
background and characteristics, the close observation of the instructor’s behavior,
measurement of participant’s perception level and participant’s satisfaction.
d. The training evaluation. It is necessary to ensure that the training activity is processing
towards the intended objectives. The evaluation phase measures mainly participant’s
satisfaction with the training program.
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Training resources, like other resources in the organization, are limited. To utilize
training resources to the best advantage, companies must put a fair amount to effort in
training needs assessment. Tao et al (2006) defined need as a gap between a current set
of circumstances and some changed or desirable set of circumstances, and needs
assessment as the process of measuring (as scientifically as possible) or appraising that
gap. The word “circumstance” in this definition can be substituted with words such as
“proficiency” (knowledge, skills and attitudes), “performance” or “situation”.
Furthermore, he advocated that though companies may adopt various training models or
processes, they all need to establish a training information system as a reference for
determining an effective training plan, HRIS consists of one of the automated training
needs assessment tools. Tao et al (2006) presented a conceptual framework of a web-
based training needs assessment system, they have not studied whether the existing
HRIS TNA support for HR planning which is going to address by this research study.
According to Glaveli and Kufidu (2005), an electronic model based on skills
development and the evaluation of employees sustains the training and development
effort. The advantages expected are to:
a. Put the right employee to the right job,
b. Profit the best people in each area and create personality and skill traits,
c. Make a valid and fair evaluation,
d. Allow people see and understand who they are and their future training and
development needs,
e. Help to know at which rate employee is capable of learning, and
f. Help to build effective teams.
Training and Development Needs Assessment Model
The Al-Khayyat (1998) model (Figure: 2.1) has discussed the main elements of
T&D information system. The limitation of this model is that it has not depicted how
the new technology contributes to T&D. the model could have been perfect if it showed
the effect that comes from organizational HRIS system to enhance the each step of Al-
Khayyat’s (1998) Training and Development Needs Assessment Model.
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Figure 2.1 Training and Development Needs Assessment Model
Source: (Al- Khayyat 1998 )
However, Al-Khayyat (1998) model has identified the evaluation and feedback element
as one of the most important elements in training and development, which was studied
in detailed by Yadapadithaya in 2001. According to Yadapadithaya (2001) argued that
though some experts on the evaluation of training make a distinction between validation
(the assessment of whether the training has achieved its intended objectives) and
evaluation (the measurement of the total effects of the training program) in practice, this
distinction is not always meaningful. Since it may be almost impossible to obtain
information on the total effects of training, which may be extremely complex.
Yadapadithaya (2001: 265) has stated that the training needs analysis and evaluation
trend as follows;
PLAN TO PLAN
- T&D FIELD
- HR T&D COMITEE
- ADMINISTRATIVE RULES
DATA GATHERING
- DEVELOP
- COMPETENCY
CHARTS
- QUESTIONAIRE
- DESIGN
T&D
Information system
EVALUATION AND
FEEDBACK
DATA ANALYSIS IMPLEMENTATION
DEVELOP DATA
GATHERING CYCLE
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“a sound training and development program should contain specific, measurable,
achievable, relevant, and timely (SMART) objectives based on a systematic training-
needs analysis conducted at three levels- individual (acquisition of proper knowledge,
skills and attitudes) and organization (organization objectives, resources and allocation
of resources). A very important aim of the evaluation process is to determine whether
the predetermined objectives are being met”.
Yadapadithaya (2001:266) has highlighted two basic aims of evaluation: assessing
training effectiveness and using it as a training aid.
“The primary aim of evaluation is to improve training by discovering which training
processes are successful in achieving their stated objectives (to ‘sort’ out good training
from the ‘bad’). Since ‘evaluation’ affects ‘learning’, it can also be used as a training
aid (knowledge of results facilitates good learning)”.
Evaluation data can be obtained prior to training, during training, immediately after
training, or at a specified time after the end of training. In most of the cases, evaluation
was done immediately after training. As Yadapadithaya (2001) points out, the various
levels of evaluation-reactions, learning, job behavior, organizational unit and ultimate
value- act as powerful links in a chain of cause and effect. Training leads to reactions,
which lead to learning, changes in job behavior, and changes in organizational unit,
which lead to changes in achievement of the ultimate goals of the organization. At the
same time Yadapadithaya (2001) has argued according to the finding that this can be
broken at any link when trainees have learnt something but not going to apply them to
achieve objectives of the organization. He concluded other deficiencies in corporate
training and development system as lack of a clear-cut written training and development
policy, weak interaction between the industries seeking training provision and the
institutions providing training, lack of systematic and comprehensive training needs
assessment, and failure to evaluate the effectiveness of training and development
program. However, he has not focused on how new technology: HRIS can be used to
increase the effectiveness of evaluation stage of training and development.
2.3.2 Succession Planning
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Succession planning can be defined as the attempt to plan for the right number and
quality of managers and key-skilled employees to cover retirements, death, serious
illness or promotion or any new positions which may be created in future organization
plans (Sambrook 2005).
For decades, the concern of succession planning was about the exact people, not skills
and talents, who are needed for the organization’s future (Garman R and Tyler I 2004).
Some researchers explained succession planning as a systematic effort to help
managers, who needs to identify a pool of high-potential candidates, develop leadership
competencies and then select leaders from the pool of potential leaders. Others have
referred to it as a strategic, systematic and deliberate activity to ensure an organization’s
future capability to fill vacancies without bias (Mehrabani SE and Mohamad NA 2011).
A key factor influencing succession planning is the role of human resource
development, which includes organizational development, career development, and the
learning and development of potential successors (Sambrook and Sally, 2005).
However, Sambrook ans Sally (2005), has not discussed how IS, especially HRIS can
be used in succession planning, which is the main weak point in his research.
2.3.3 Recruitment and Selection
Recruitment represents one of the cores staffing activity that need to be effective and
efficiently planned and conducted for organizations to attain success (Darrag et al
2010). Darrag et al (2010), identified recruitment as the process of discovering potential
candidates for actual or anticipated organizational vacancies or from another
perspective, it is a link activity-bringing together those with jobs to fill and those
seeking jobs. According to Selden et al (2000) a fair number of studies focus on the
performance effects of specific human resource management policies, such as training
and selection. The different stages of the recruitment and selection process were
identified as:
 Department (contextual) analysis,
 Job analysis,
 Job description and person specification,
 The seeking of applicants,
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 Attracting applicants,
 Screening applicants,
 Interviewing candidates,
 Appointment.
According to Pattanayak (2000), planned recruitment program has the following basic
components (Figure: 2.2)
Figure 2.2: Framework of Recruitment and Selection Source: (Pattanayak
2000)
The process of recruitment may begin with advertising vacancies, this may be done
internally or externally or both can be achieved using a range of media, which may
involve using the company website (El-kot and Leat, 2008), the use of the internet for
recruitment purposes has become very popular. However El-kot and Leat (2008), has
identified the different level of technical sophistication found among organizations in
Recruitment Advertisement Organization Goals Job Analysis
Job Description
Job Specification
Applicants Workload Analysis
Manpower Requisition
Selection Process
Application Forms
Test
Interview
Reference Check
Medical Examination
Selected Candidate
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relation to the use of new technology in selection. Organizations may also make use of
state run job centers or employment agencies or their own database of speculative
enquires.
According to El-kot and Leat (2008), there is a range of selection practices that may be
used including: application forms, curriculum vitae, one-to-one and panel interviews,
psychometric testing, assessment centers, job trials, job specific aptitude or knowledge
tests, graphology, group-based activities and references. El-kot and Leat (2008)
concluded that the selection interview had probably been the single most used technique
in most countries throughout the twentieth century. Though Darrag et al (2010) and El-
kot and Leat (2008) have all studied recruitment and selection methods in detail they
have not focused their attention on how new technology, especially HRIS could
enhance and strengthen the recruitment and selection process of an organization. Selden
et al (2009), in their study focused on evaluating the effectiveness of human resource
management system, offering a framework and methodology filling this knowledge
gap: human resource management system is often an invisible asset that creates value
by enhancing government’s capacity to recruit and retain employees. However, they
addressed the ability to assign an effective evaluation system given an existing set of
criteria and constructed a survey instrument aligned with the identified criteria but they
didn’t try to measure the effectiveness of recruitment and selection feature of Human
resource management system. The results of this assessment were robust to a variety of
rule specifications and measurement adjustments Selden et al (2000). El-kot and Leat
(2008) has discussed the online recruitment process, which is more fitting for paperless
offices.
2.4 HRIS Models
2.4.1 Hyde-Shafritz Model
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Albert C. Hyde and Jay M. Shafritz were among the first to attempt a conceptual
framework for the HRIS. In a 1977 journal article, they identified sixteen database
modules, which were integrated in that they had the capability of exchanging data
(McLeod and Sanctis 1995). It was a very primary module, which listed the modules as
sixteen inputs and outputs (Figure 2.1)
Both position and person data are entered into the HRIS to enable management to
perform the planning function. The HRIS produces reports organized along the lines of
the modules, which facilitate accountability. A feedback loop enables the objectives to
be modified to reflect actual performance. This is a typical closed- loop system module,
consisting of input, processing, output, and feedback loop (Asmanhanostadi 2011).
Figure: 2.3 The Hyde-Shafritz HRIS model Source: (McLeod and Sanctis 1995)
2.4.2 Resource Flow HRIS Model
The resource-flow model illustrated in figure 2.2 consists of three subsystems devoted
to data input, a HRIS database, and six subsystems devoted to transforming the data into
information and making it available to users. The input data obtained from both internal
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and environmental sources, and the users consist of individuals and organizations both
inside and outside the firm (McLeod and Sanctis 1995).
The Resource flow model focuses on the flow of human resources through the firm. It
recognizes that the firm’s environment provides a pool of potential employees who are
subjected to a screening process before joining the firm. While in the firm, the
employees receive training and education, perform their tasks and receive evaluations.
The employees are compensated for their efforts with money and other benefits
(McLeod and Sanctis 1995). The task of the HRIS is to gather data that tracks this
human resource flow, store the data until it is needed and use the data to produce
information and enables person both in the firm and its environment to monitor the
flow.
In input subsystem, there are three main subsystems which are data processing, human
resource research and human resource intelligence. Some input data might include
software that can transform the data into the format that needed and required. The
second is HRIS database; all the data and information can be stored in computer
storage. The last one is output subsystem, which contains all the output related to HR
consists of workforce planning subsystem, recruitment, workforce management,
compensation, benefit and environmental reporting subsystem (Allan 2011).
2.5 Conclusion
Organizations use Information Systems in all levels of information management:
strategic, tactic and operational. HRIS is one of the information systems out which
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transform the roe of the HR department incorporating records for employee resource,
rewards, training etc. Many studies cited HRIS benefits, such as improvements in
accuracy, cost saving, timely and quick access to information through HR reports,
decision-making and increased competitiveness. Lack of top management support,
funds, HR knowledge of system designers and HR solutions, are the main factors
keeping organizations away from HRIS.
According to literature, human resource planning, recruiting and training are less
frequent users within personnel perhaps reflecting greater use of the system for routine
reporting than for decision support. HRIS is classified in to two types according to their
usage: “unsophisticated” and “sophisticated”. Payroll and benefits administration,
employee absence record keeping electronically are listed as “unsophisticated”. Use of
IS in recruitment and selection, training and development, HR planning and
performance appraisal, is classified as “sophisticated”. Many researches were curious
about the integration of HRIS with other emerging technologies such as MIS, ERP, her
etc. Due to the advent of internal technology and the emerging concept of business
intelligence HRM subsystems have changed to e-HRM systems. It is very hard to give a
clear cut view to distinguish her from HRIS since HRIS developed with most of the her
features today.
According to Alvarez-Suescun (2007), firm size or technical skills do not affect
organizational sourcing decisions. The HRIS implementation sourcing decision may be
influenced by previous experiences in the implementation of other systems and strategic
contribution of the IS on the internal organization. According to some literature
organizations gain competitive and strategic advantage if HRIS activities are undertaken
internally.
HRIS facilitates training and development and recruitment processes of the
organizations. The training and development function is essential for changing behavior
and culture and reinforcing the new behavior and culture in an organization. Succession
planning which is facilitated by HRIS helps to identify key players in the organization
and develop them for future demand. Recruitment represents one of the core staffing
activities that need to be planned efficiently and effectively. Pattanayak (2000)
identified four sub functions: determining the nature of the job to be filled. In Indian
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context, literature relevant to HRIS, training and development and recruitment and
selection are hard to found, especially how, HRIS contribute to HR planning through
training and development and recruitment and selection.
The systematic development of HRIS models is studied through the literature review.
The first conceptual framework is the Hyde-Shafritz Model, which listed the modules as
sixteen inputs and outputs presented in 1977 by Albert C. Hyde and Jay M. Shafritz.
The Simon Input/Data Maintenance/Output Model was presented in 1986 by Andrew
Manzini and John D. Gridley. They viewed the HRIS in terms of interfaces with a
corporate human resources database. The Fisher, Schoenfeldt, and Shaw Application
Modules presented in 1990 by Cynthia D. Fisher, Lyle Schoenfeldt, and James B. Shaw
identifying nine major application areas of the HRIS. The mst recent and
comprehensive model was a Resource Flow HRIS Model, which was presented by
HRSP and McLeod and Schell. This was more advanced than earlier models. There was
some amount of focus to embed artificial intelligence in order to facilitate more
advanced decision-making capabilities.
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CHAPTER 3
RESEARCH
DESIGN &
METHODOLOG
Y
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3.1 Introduction
This chapter lays down the research design. The discussion borders specifically on the
research philosophy, approach, strategy in order to develop methodology to address
research questions. Sampling procedure too is discussed in detail. Questionnaire was
developed to identify the variables and data requirements to fulfill the research
objectives. Measuring instruments such as validity and reliability are discussed in detail
in this chapter.
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3.2 Research Design and Methodology
3.2.1 Research Philosophy
This study shares some of positivism aspects which recognize only facts and observable
phenomena and follow a deductive theory. Under positivism, theories provide the basis
of explanation, permit the anticipation of phenomena, predict their occurrence and
therefore allow them to be controlled (Collis and Hussey 2009). Explanation consists of
establishing casual relationship between variables by establishing casual laws and
linking them to a deductive or integrated theory (Collis and Hussey 2009). Since it is
assumed that social phenomena can be measured, study is associated with quantitative
methods of analysis. Though HRIS and business environment changes to some extent
the results of the study can be generalized within a specific environment. Since the
study is exploratory, it did not attempt to dig into deeper layers of reality. In positivism,
reality is objective and singular, separate from the researcher. Similarly, researcher is
independent from what was researched.
The HRIS role is subjective and multiple as seen by the senior HR executives.
Therefore biases are present. In that sense, study is closed to interpretive philosophy.
Interpretive is underpinned by the belief that social reality is not objective but highly
subjective because it is shaped by our perceptions. The researcher interacts with that
being researched because it is impossible to separate what exists in the social world
from what is in the researcher’s mind (Saunders et al 2009).
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Even though it is difficult to classify the study under positivism/realism or interpretive
philosophy, it could be argued that this study is closer to realism philosophy since it was
likely to affect senior HR executive’s attitude and perception towards the efficient and
effective use of HRIS in workforce planning in a given environment. Realism shared
some philosophical aspects with positivism as well. Senior HE executives themselves
did not object to this study since HRIS influence in workforce planning was
independent from attitude and perception of senior HR executives as the fruitfulness of
HRIS depends on its available features developed by vendors. Despite that, HRIS usage
in HR planning depends on senior HR executives since their attitude, perception and
behaviors deploy the HRIS role successfully, which is not noticeable to them.
3.2.2 Research Approaches
This study followed deductive research approach where theory and hypothesis are
developed and a research strategy is designed to test the hypothesis. This study moved
from theory to data explaining casual relationship between variables. According to
literature review, research is an empirical however; sufficient literature on HRIS is
available from different county and organizations. Conceptual framework was
developed based on literature and pilot survey. Research focused on senior HR
executive’s opinions.
The study is based on quantitative data analysis, where deductive research approach
was most suitable. Quantitative data collected to quantify the organizational practice of
HRIS for workforce planning. The study could be generalized due to the large sample
size. This is possible to some extent since organizational IS and HR strategies change
from organization to organization. Simultaneously, HRIS functionalities evolve and
reshape day by day due to increasing awareness, new technology and business
requirements. The results or findings of this research can be used by organizations that
are having similar contexts to enhance and shape their HRIS usage in HR planning from
the initial stages of the business. Similar kind of studies could produce similar results in
a similar context due to the highly structured methodology employed. Within this study,
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researcher was independent from what was being researched. Researcher was only
involved in collecting data through questionnaire, which were either e-mailed to the
participants or handed over manually. Study applied controls to ensure the validity of
data. Researcher was interested in understanding what is happening rather than as to
why it was happening. As much, for this research, deductive approach was more
suitable.
3.2.3 Research Strategy
Research strategy is developed to plan and answer the research questions. After having
considered several research strategies such as experiment, case studies etc; a survey was
opted to carry out the research, which is a popular and common strategy in business and
management research, which is a popular and common strategy in business and
management research. It links to the deductive approach as well (Saunders et al 2009).
This research study was an academic research, which had to be completed with limited
available resources: both time and source. Survey strategy helped to collect large
amount of data using a questionnaire from a sizable population in a highly economical
way. Data collected through the questionnaire provided standard data allowing easy
comparison. Senior HR executive’s views could be captured with minimum effort and
cost. Therefore survey was the most suitable strategy for this research. Questionnaire
was disturbed to a sample to representing an unbiased subset of the population.
Statistical methods were used to test the likelihood that the characteristics of the sample
were found in the population. This effort helped to generalize the findings to some
extend within similar type of private sector organizations that use HRIS or
organizations, who are planning to use HRIS. Data gathered from questionnaire was
used to find dependent and independent variables in the relationship and the validity of
the relationship of proposed conceptual framework.
As mentioned in first chapter, pilot survey was conducted through interviews. This
interview strategy could not be adopted since the number of senior HR executives was
rather large and cannot be managed with finite time and cost. Case study is a good
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strategy, but was not selected after considering the time and cost. Case study is a good
strategy, but was not selected after considering the time needed to complete research
and weak possibility of generalization. Experiment research was not selected due to its
unsuitability to this research, which is not on natural science.
3.2.4 Time Horizons
This study was not carried out over long period and did not investigate the same group
of people several times. Therefore, it cannot be classified as a longitudinal study.
According to research questions, this study is designed to obtain research data in
different contexts, but over the same period. It had studied two different types of
industries: service and manufacturing. Seventy nine (79) senior HR executives were
selected randomly as sample size and data collected on their opinion and behaviors
towards HRIS through questionnaire, which was designed base on many variables.
Moreover, the study was an exploratory research since there are not enough previous
HRIS studies relevant to workforce planning. Hypothesis was generated for future
research. Therefore, cross- sectional study was selected as time horizon.
3.2.5 Population and Sample frame
The unit of analysis for this study consisted of two groups according to industry types:
service and manufacturing. Out of total 100 senior HR executives, 79 are selected for
sampling of this study. Due to time, budget and resources constraints, stratified random
sampling method are employed in this research.
Research population refers to the people events or things of interest to the researcher
that are to be investigate (Sankaran 2003). In this study, the research population is
aimed primarily at urban areas.
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Population Frame
Organization Type Population
Manufacturing Organization 4
Service Organization 4
Table 3.1: Distribution of target population among manufacturing organizations
Private Sector Organization Senior HR Executives
(Who Uses HRIS)
Tata Steel 15
Hayleys 25
Nestle India 11
Larsen & Toubro 14
Total 65
Table 3.2: Distribution of target population among service organizations
Private Sector Organization Senior HR Executives
(Who uses HRIS)
HDFC Bank 7
Decimal Technology 5
Hilton Hotel 8
Reliance Communication 15
Total 35
Total number of employee in the population
Table 3.3: Summary of distribution of target population among organizations
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Private Sector Organizations Senior HR Executives
(Who uses HRIS)
Manufacturing Organizations 65
Service Organizations 35
Total 100
Sampling Methods: probability sampling: stratified random
Stratified random sampling used to select senior HR executives who use HRIS to
extract information to assist the top management. Stratified random sampling is suitable
for this study since the population divided into two significant strata based on industry
type: manufacturing and service. A random sample was then drawn from each of the
strata which ensure that each case in the population has an equal chance of being
included in the sample (Dempsey 2003).
Determining the sample size
Hayleys, Tata Steel and Nestle India were selected as sample representing the
manufacturing organizations. These are the leading manufacturing organizations. To
represent the service sector Decimal technology, Hilton hotels and Reliance
communication were selected. Initially all the selected organizations have based on
Krejcie and Morgan table (Collis and Hussey 2009), which could have been constructed
using the following formula:
S= X² NP (1- P) ÷ d² (N- 1) + X² P (1- P)
Where;
S= required sample size,
X²= the table value of chi square for 1 degree of freedom at the desired confidence level
N= the population size
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P= the population proportion (assumed to be .50 since this would provide the max.
sample size).
d= the degree of accuracy expressed as a portion (.05)
Table 3.4 Distribution of sample among manufacturing organizations
Private Sector Organization Senior HR executives (Who uses HRIS)
Tata Steel 15
Nestle India 11
Hayleys 25
Total 51
Table 3.5 Distribution of sample among service organizations
Private Sector Organization Senior HR executives (Who uses HRIS)
Hilton hotel 5
Decimal Technology 8
Reliance Communication 15
Total 28
Organization Type Population Sample
Manufacturing Organization 4 3
Service Organization 4 3
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Table 3.6 Total number of employees in the sample
Private Sector Organizations Senior HR executives (Who uses HRIS)
Manufacturing organizations 51
Service organizations 28
Total 79
Table: 3.4, 3.5 illustrate number of senior HR executives who uses HRIS in selected
organizations as sample based on their industry type. Table 3.6, shows total number of
senior HR executives in the sample based on each industry.
3.2.6 Conceptual Framework
INTERNAL SOURCE
EXTERNAL SOURCE
INPUT SUBSYSTEM OUTPUT SUBSYSTEM
TRAINING
SUBSYSTEM
RECRUITMENT
SUBSYSTEM
SUCCESSION
PLANNING
SUBSYSTEM
HRIS
DATABASE
WORKFORCE
PLANNING
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Figure 3.1: Schematic diagram for the conceptual framework
Conceptual framework (Figure 3.1) depicts HRIS contribution to workforce planning
through three sub systems: HRIS training subsystem, HRIS recruitment subsystem and
HRIS succession planning subsystem. HRIS recruitment subsystem represents the
functionality of HRIS job analysis, e-recruitment and skill inventory. HRIS training and
development subsystem contribute the features of HRIS TNA; HRIS training program
evaluation (Aswathappa K 2008) and HRIS succession planning subsystem contribute
the features of employee potentialities and identify training gaps (Subba Rao P 2008).
3.2.7 Variables
A conceptual framework developed for logical understanding of the relationship
between the factors that are identified as vital to the problem.
The variables can be graphically represented as follows and the questionnaire is given
in Appendix A, which was used to measure the relationship between the variables. A
working model was formed as follows to test the research objectives and measure the
relationship between variables.
H1
H2
H3
H6
HRIS DATABASE
HRIS JOB ANALYSIS
HRIS E-RECRUITING
HRIS SKILL INVENTORY
HRIS
CAREER PLANNING
HRIS EMPLOYEE
POTENTIALITY
WORK FORCE
PLANNING
RECRUITMENT SUBSYSTEM
SUCCESSION PLANNING SUBSYSTEM
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H7
H4
H5
Figure 3.2 Variables in the conceptual framework
HRIS role was identified from three subsystems: HRIS recruiting subsystem, HRIS
training subsystem and HRIS succession planning subsystem. From these subsystems,
mediate variables were identified considering available HRIS features. All the variables
measured using a five point Likert Scales ranging, which are a non-comparative scaling
technique and are uni-dimensional in nature. Respondents are asked to indicate their
level of agreement with a given statement by way of an ordinal scale (Bertram D 2009).
HRIS recruitment subsystem features for job analysis, skill inventory and e-recruitment
(Tansley et al 2001), HRIS training subsystem features for TNA, training program
evaluation (Lokhandwala 2009). HRIS succession planning subsystem features career
planning and HRIS employee potentiality. These features of HRIS are identified as
mediate variables, which contribute to dependant variables i.e. effective workforce
planning (Beulen (2009), Panayotopoulou et al (2005)) (Appendix1 - Table 3.7).
3.2.8 Data Collection Methods
This study focuses on the role of HRIS in an effective workforce planning. Due to time
and financial constraints, a mail questionnaire survey and sample interview was
considered to be the best instrument for data collection this approach also allowed a
wide geographical coverage (Diliman 2000). Also participant’s responses were not
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influenced by the presence of researchers or evaluators as in other data gathering
instruments (Boyce 2002).
Primary Data Collection
As mentioned earlier a pilot survey was done with experts using semi structured
interview to clarify the research area. After identifying the research area, questionnaire
was designed to address research questions in order to collect primary data for further
analysis. Questionnaire provided an efficient way of collecting responses for a large
sample prior to quantitative analysis. Questionnaire was e-mailed to the participants
since most users read and respond to their own mail. Respondents were senior HR
executives involved in workforce planning and HRIS. Questionnaire consisted of scale
questions to collect questions. Five point Likert scale ranging: (1; strongly disagree, 2:
disagree, 3: neither agrees nor disagrees, 4: agree, 5: strongly agree) was used when
designing the questionnaire.
Secondary Data Collection
Secondary data was collected using organizational annual reports and information
available on websites. Annual reports helped to identify organizational strategies: IT/IS
and HR organizational hierarchy, investments on IT, organizational scale: large,
medium or small etc. annual reports and contact details of organizations were
downloaded from websites. Information about HRIS clients were collected through the
vendors sites (Appendix1- Table 3.8).
3.2.9 Research Instruments
Research instruments used most popular methods with anonymous questionnaire design
(Ghauri and Grohaug 2010). A set of questionnaire constructed by the researcher was
used to gather data from the group of respondents. The questionnaire was based on four
main sections; namely:
Section I- Profile of Respondent
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Section II- Role of HRIS recruitment subsystem in workforce planning
Section III- Role of HRIS training subsystem in workforce planning
Section IV- Role HRIS succession planning subsystem in workforce planning
Questionnaire designed to collect primary data ensuring validity and reliability. Each
research question and objective considered and identifying the variables associated with
each. Then investigate questions designed to collect most appropriate data (Appendix
2).
3.2.10 Questionnaire validation process
A questionnaire is pre-formulated written set of questions to respondents to record their
answers and contains close- ended questions and scales to matrix questions (Mellenberg
2008) (Appendix1 – Table 3.9).
In designing the context of survey instruments, the rules in item construction with
regards to simplicity, clarity and coherence were observed. The researcher constructed
questionnaire was shown to colleagues, friends and the managers to determine
coherence and clarity of research. Their comments and suggestions were integrated into
the preliminary revision of the questionnaire.
3.3 Reliability and Validity of findings
3.3.1 Reliability
An alternative method was used to protect the reliability of answer by comparing
responses to alternative questions. The research focus on one single capability of HRIS,
if the respondent agreed with the first question definitely, he/she need to agree to the
second similar question. If the response to the second question is totally different from
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the first one, it means that respondent has not understood the questions and that the
collected data may be erroneous, which should be cleaned.
Questionnaire was emailed on the mid of week which was neither on a ‘high’, looking
forward to the weekend, nor on a ‘low’ with the working week expecting to reduce
participant error. Participant bias is reduced since respondent has to select only one
response, which ranked. The researcher expects the same result to be produced under
similar circumstances since reliability was high.
3.3.2 Validity
As mentioned earlier, a pilot survey was done with HR experts using semi structured
interview. Here I considered the quality of their contribution over quantity within
limited time and resources. According to their answers, the questionnaire was fine
tuned. Questionnaire was further tested using friends. Therefore, respondents had no
problems in answering the questions enabling to obtain some assessment of the
question’s validity and likely reliability of the data. There was a remark column in order
to add respondent’s comment if they want.
3.4 Ethical Considerations
As I have mentioned in first chapter, during the pilot survey stage I conducted three
interviews with three experts of HR. I explained the purpose of my research to them
clearly and took the appointments. During the interview time, I requested the
permission to record the interview. One expert allowed recording the interview. The
other two organizations did not give permission to take the electronic devices due to
security reasons. Therefore, I could not record those two interviews. I took prior
permission to use the data which I gathered for the research. At the same time I got
permission to mention the organizations names and interview’s post in the thesis to
prove the validity of data. All three- interview answers were taken down with the
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ROLE OF HRIS IN EFFECTIVE WORKFORCE PLANNING

  • 1. The Role Of Human Resource Information System In Effective Workforce Planning 2013 1 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY THE ROLE OF HUMAN RESOURCE INFORMATION SYSTEM IN EFFECTIVE WORKFORCE PLANNING BY ESHANK GARG UNIVERSITY OF DERBY, UNITED KINGDOM
  • 2. The Role Of Human Resource Information System In Effective Workforce Planning 2013 2 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Independent Study Commencement Date: JANUARY, 05, 2012 Independent Study Completion Date: SEPTEMBER, 5, 2013 THE ROLE OF HUMAN RESOURCE INFORMATION SYSTEM IN EFFECTIVE WORKFORCE PLANNING BY ESHANK GARG Dissertation submitted in part fulfillment of the Requirements of the University of Derby for the degree of Master of Business in Administration DR. JOANNE HEE
  • 3. The Role Of Human Resource Information System In Effective Workforce Planning 2013 3 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY SIGNATURE: ______________________ WORD COUNT: 14,629 ACKNOWLEDGEMENT The author wishes to extend her sincere thanks and gratitude to various individuals who has supported me during the completion of this dissertation, without them, this paper would not be possible. Each of them has been a great source of inspiration, strength and happiness all throughout the making of this study. An acknowledgement for the invaluable words of wisdom, assistance and pieces of advice of his supervisor Dr. Joanne Hee, in the preparation and checking of the manuscript, an endless gratitude to the human resource personnel of all the organizations to spare their time despite their busy schedules in meeting their deadlines to answer the questionnaires and to HR executives who check his questionnaires for accuracy, and allowed him for interview. A special note of thanks to her greatest and precious friends whose help, encouragement, and sisterly treatment praise worthy, They were a source of valuable assistance, Her deepest love and affection to her considerate and understanding parents whose unending support cannot be neglected and also to her sister for her words of encouragement. Above all, to God Almighty who provided numerous opportunities culminating with this successful research.
  • 4. The Role Of Human Resource Information System In Effective Workforce Planning 2013 4 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Eshank Garg 05/09/2013 ABSTRACT Human Resource Information System (HRIS) has become one of most vital information systems in the market. This study focuses on the role of HRIS in human resource planning (HR) in private sector organizations. The purpose is to explore the functionality and contribution of HRIS in workforce planning through HRIS recruiting, training & development subsystems and succession planning subsystem as perceived by senior HR executives in private sector organizations. A pilot survey was carried out to identify the problem using structured interviews with Heads of HR of two selected private companies. A structured questionnaire was used to collect data from senior HR executives of selected private sector companies. Answers received from 45 respondents were analyzed. The overall response rate was 56 percent. The deductive mode of reasoning, cross-sectional study and quantitative techniques were selected as research methods. The results of the survey showed that the most frequently accepted HRIS feature is training needs analysis (TNA), job analysis and there is high correlation between HRIS recruitment subsystem and the effectiveness of workforce planning. Most private sector organizations perceived the contribution to efficiency of workforce planning through HRIS skill inventory, HRIS TNA, HRIS training program evaluation, HRIS succession planning, This study shows that HRIS needs to offer more intelligent capabilities to increase the effectiveness of HR planning. HRIS vendors need to win the trust of HR professionals
  • 5. The Role Of Human Resource Information System In Effective Workforce Planning 2013 5 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY through enriching features and increasing the awareness and usage of HRIS in HR planning, especially its effectiveness. Table of Contents TITLE PAGE ................................................................................................................................1 ACKNOWLEDGEMENT.............................................................................................................3 ABSTRACT....................................................................................................................................4 TABLE OF CONTENTS ..............................................................................................................5 LIST OF FIGURE .........................................................................................................................9 LIST OF TABLE .........................................................................................................................10 LIST OF ACRONYMS…………………………………………………………………..….....11 CHAPTER 1: INTRODUCTION 1.1 INTRODUCTION ......................................................................................................13 1.2 BACKGROUND ........................................................................................................14 1.3 RESEARCH PROBLEM.............................................................................................18 1.4 SIGNIFICANCE OF THE STUDY.............................................................................19 1.5 PURPOSE OF RESEARCH........................................................................................20 1.5.1 RESEARCH QUESTION………………………………………………..20 1.5.2 RESEARCH OBJECTIVES…………………..........................................20 1.6 JUSTIFICATION OF RESEARCH ............................................................................21 1.7 RESEARCH TERMINOLOGY……………………………………………………..22
  • 6. The Role Of Human Resource Information System In Effective Workforce Planning 2013 6 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY 1.8 RESEARCH OUTLINE……………………………………………………………..24 1.9 CONCLUSION............................................................................................................25 CHAPTER 2: REVIEW OF LITERATURE 2.1 INTRODUCTION .......................................................................................................27 2.2 LITERATURE REVIEW ...........................................................................................28 2.2.1 HRIS BENEFITS AND OBSTACLES .........................................................29 2.2.2 HRIS USAGE...................................................................................................31 2.3 HRIS ROLE IN HR PLANNING...............................................................................33 2.3.1 TRAINING AND DEVELOPMENT............................................................34 2.3.2 SUCCESSION PLANNING...........................................................................38 2.4.1 RECRUITMENT AND SELECTION..............................................................38 2.4 HRIS MODELS...........................................................................................................41 2.4.1 HYD-SHAFRITZ MODEL ..........................................................................41 2.4.2 RESOURCE FLOW HRIS MODEL............................................................41 2.5 CONCLUSION.........................................................................................................43 CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY 3.1 INTRODUCTION .......................................................................................................46 3.2 RESEARCH DESIGN & METHODOLOGY.............................................................47 3.2.1 RESEARCH PHILOSOPHY........................................................................47 3.2.2 RESEARCH APPROACH ...........................................................................48
  • 7. The Role Of Human Resource Information System In Effective Workforce Planning 2013 7 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY 3.2.3 RESEARCH STRATEGY............................................................................49 3.2.4 TIME HORIZONS...................................................................................50 3.2.5 POPULATION AND SAMPLE FRAME ...............................................50 3.2.6 CONCEPTUAL FRAMEWORK............................................................54 3.2.7 VARIABLES ...........................................................................................55 3.2.8 DATA COLLECTION METHODS........................................................56 3.2.9 RESEARCH INSTRUMENTS................................................................57 3.2.10 QUESTIONNAIRE AND VALIDATION PROCESS .........................58 3.3 RELIABILITY AND VALIDATION PROCESS.......................................................58 3.3.1 RELIABILITY..............................................................................................58 3.3.2 VALIDITY ...................................................................................................59 3.4 ETHICAL CONSIDERATION...................................................................................59 3.5 DATA ANALYSIS TECHNIQUES AND TOOLS....................................................60 3.5.1FREQUENCY AND PERCENTAGE DISTRIBUTION .............................60 3.4.3 WEIGHTED MEAN.....................................................................................61 3.4.4 PEARSON’S CORRELATION COEFFICIENT.........................................62 3.6 CONCLUSION............................................................................................................63 CHAPTER 4: DATA ANALYSIS & INTERPRETATION OF DATA 4.1 INTRODUCTION .......................................................................................................65 4.2 FINDINGS AND DISCUSSIONS ..............................................................................66
  • 8. The Role Of Human Resource Information System In Effective Workforce Planning 2013 8 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY 4.2.1 RESPONSE RATE.....................................................................................66 4.2.2 PRE-TESTING .........................................................................................66 4.2.3 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS ............67 4.2.4 PRESENTATION OF VARIABLES .......................................................70 4.2.4.1 HRIS RECRUITMENT SUBSYSTEM ..................................71 4.2.4.1 HRIS TRAINING & DEVELOPMENT SUBSYSTEM.........75 4.2.4.1 HRIS SUCCESION PLANING SUBSYSTEM ......................78 4.2.4.1 HRIS WORKFORCE PLANNING………………………….81 4.3 SAMPLE DISTRIBUTION ANALYSIS....................................................................82 4.4 CONCLUSION ABOUT EACH RESEARCH QUESTION ......................................84 4.5 CONCLUSION ABOUT THE RESEARCH PROBLEM ..........................................85 CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSIONS & RECOMMENDATION 5.1 INTRODUCTIOM.......................................................................................................87 5.1 SUMMARY.................................................................................................................88 5.2 RECOMMENDATION...............................................................................................89 5.3 IMPLICATION FOR FUTURE RESEARCH ............................................................91 GLOSSARY…………………………………………………………………………………….92 REFERENCE.............................................................................................................................100 APPENDX I: ..............................................................................................................................114 APPENDX II: ............................................................................................................................124
  • 9. The Role Of Human Resource Information System In Effective Workforce Planning 2013 9 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY LIST OF FIGURES FIGURE 1.1 LEVELS OF MANAGEMENT AND TYPES OF SUPPORT SYSTEM ...... 15 FIGURE 2.1 TRAINING AND DEVELOPMENT NEEDS ASSESSMENT MODEL ............................ 36 FIGURE 2.2 FRAMEWORK OF RECRUITMENT AND SELECTION ................................................. 39 FIGURE 2.3 THE HYDE- SHAFRITZ HRIS MODEL............................................................................. 41 FIGURE 3.1 SCHEMATIC DIAGRAM FOR THE CONCEPTUAL FRAMEWORK ............................ 54 FIGURE 3.2 VARIABLES IN THE CONCEPTUAL FRAMEWORK .................................................... 55 FIGURE 4.1 DISTRIBUTIONS OF RESPONDENTS ABOUT GENDER.............................................. 67 FIGURE 4.2 DISTRIBUTIONS OF RESPONDENTS ABOUT MARITAL STATUS............................ 68 FIGURE 4.3 DISTRIBUTIONS OF RESPONDENTS ABOUT AGE...................................................... 68 FIGURE 4.4 DISTRIBUTIONS OF RESPONDENTS ABOUT EMPLOYMENT STATUS .................. 69 FIGURE 4.5 INDUSTRIES TO WHICH RESPONDENTS BELONG..................................................... 70 FIGURE 4.6 HRIS JOB ANALYSIS ........................................................................................................ 72 FIGURE 4.7 HRIS SKILL INVENTORY ................................................................................................ 73 FIGURE 4.8 HRIS e-RECRUITMENT...................................................................................................... 74 FIGURE 4.9 HRIS TRAINING NEED ANALYSIS ................................................................................. 76 FIGURE 4.10 HRIS TRAINING PROCESS EVALUATION................................................................... 77 FIGURE 4.11 HRIS CAREER PLANNING.............................................................................................. 79 FIGURE 4.12 HRIS EMPLOYEE POTENTIALITY…………………………………………………….80 FIGURE 4.13 HRIS WORKFORCE PLANNING……………………………………………………….82 FIGURE 4.14 STANDARD ERROR BAR GRAPH…………………………………………………….83 FIGURE 5.1 PROPOSED MODEL OF HRIS……………………………………………….90
  • 10. The Role Of Human Resource Information System In Effective Workforce Planning 2013 10 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY LIST OF TABLES TABLE 3.1: DISTRIBUTION OF TARGET POPULATION AMONG MANUFACTURING ORGANIZATION .......... 51 TABLE 3.2 DISTRIBUTION OF TARGET POPULATION AMONG SERVICE ORGANIZATION............................ 51 TABLE 3.3 SUMMARY OF DISTRIBUTION OF TARGET POPULATION AMONG ORGANIZATIONS ................ 51 TABLE 3.4 DISTRIBUTION OF SAMPLE AMONG MANUFACTURING ORGANIZATION ................................. 53 TABLE 3.5 DISTRIBUTION OF SAMPLE AMONG SERVICE ORGANIZATION……………………………………………….53 TABLE 3.6 TOTAL NUMBER OF EMPLOYEES IN THE SAMPLE…………………………………………………………………..53 TABLE 3.7 BREAKDOWN OF VARIABLES……………………………………………………………………………………………….114 TABLE 3.8 TYPES OF DATA REQUIREMENT AND SATA COLLECTION METHODS……………………………………115 TABLE 3.9 DATA REQUIREMENT TABLE……………………………………………………………………………………………….116 TABLE 3.10 SUMMARY OF THE STUDY…………………………………………………………………………………………………119 TABLE 4.1 RESPONSE RATE FROM THE ORGANIZATIONS……………………………………………………………………….66 TABLE 4.2 WEIGHTED MEAN AND VERBAL INTERPRETATION ON HRIS ROLE IN RECRUITMENT SUBSYSTEM…………………………………………………………………………………………………………………………………………120 TABLE 4.3 WEIGHTED MEAN AND VERBAL INTERPRETATION ON HRIS ROLE IN TRAINING AND DEVELOPMENT SUBSYSTEM………………………………………………………………………………………………………………..121 TABLE 4.4 WEIGHTED MEAN AND VERBAL INTERPRETATION ON HRIS ROLE IN SUCCESSION PLANNING SUBSYSTEM …………………………………………………………………………………………………………………………………………122 TABLE 4.5 DESCRIPTIVE STATICS…………………………………………………………………………………………………………….83 TABLE 4.6 SUMMARY OF THE RESULT………………………………………………………………………………………………….123
  • 11. The Role Of Human Resource Information System In Effective Workforce Planning 2013 11 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY List of Acronyms BPO: Business Process Outsource DSS: Decision Support System ESS: Executive Support System HR: Human Resource HRIS: Human Resource Information Systems HRM: Human Resource Management IAAS: Infrastructure as a Service IS: Information Systems IT: Information Technology MIS: Management Information System PAAS: Platform as a Service SAAS: Software as a Service SHRP: Strategic Human Resource Planning SOA: Service Oriented Architecture TPS: Transaction Processing Systems
  • 12. The Role Of Human Resource Information System In Effective Workforce Planning 2013 12 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY CHAPTER 1 INTRODUCTION 1.1 Introduction
  • 13. The Role Of Human Resource Information System In Effective Workforce Planning 2013 13 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Organizations continuously invest substantial amounts of money on Information System. If they invest without identifying the current value of support and future limitations, they can’t gain competitive advantage in a rapid changing business world (Tansley et al 2001). They may even go bankrupt without ever meeting these two ends. Human Resource Information System (HRIS) is one of the Information System in which one should invest intelligently, most of the large scale organizations spend large amount on HRIS, but unfortunately many of them utilize it just for HR administrative purposes rather than for effective and efficient Human Resource Planning. After spending considerable amounts, if HRIS is used only for administrative work, it will not be effective. This study aims to find out the contribution of HRIS in Human Resource Planning throughout recruitment, training and succession planning within the perception of Senior HR and HR executives developing a conceptual framework.
  • 14. The Role Of Human Resource Information System In Effective Workforce Planning 2013 14 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY 1.2 Background As the new economy shifts gears, we enter an era when the careful examination of value creation is not enough. Therefore entrepreneurs invested further on Information Technology (IT) and Information System (IS) intending to lead the market and gain competitive advantage (Tansley et al 2001). Nowadays the most part of daily activities of managers are spending to receive information, communication and using information in different affairs of organization. Since the information is the base of all activities in an organization, there should be system to produce and manage the data. The purpose of such type of system is ensuring providing proper and reliable information. Such have been called Information System (Karimidizboni R 2013). The HRIS got its start in 1960s and 70s as firms converted their personnel records from hardcopy and punched card, to computer storage (McLeod R and DeSanctis G 1995). The first generation of computerized HRIS is involved the conversion of manual information keeping system to computerized system (Mc Adams J 2007). As the 1970 advances, the second generation of computerized HRIS was initiated with the introduction of the mini-computer. The second generation of computerized HRIS was completed in early 1980s. The data repository was moved to the human resource professional desktop (Bulmash J 2010). Moving the data repository from some mainframe or computer group to the desktop caused a great deal of excitement in HR field. Software vendors observed the desire of HR professional and began to develop systems to integrate the various areas within their application. The result was the third generation of the HRIS, a feature rich, broad based, self- contained HRIS. The third generation took system far beyond being mere data repositories and created tools with which HR professionals could do much more, the extent to which the organization has developed their HRIS varies from organization to organization (Francis A 2007). Therefore, organizations invested further on Information technology (IT) and Information System (IS) intending to lead the market and to gain competitive advantage. Gradually, IS turned out to be a backbone of the organization, used for most
  • 15. The Role Of Human Resource Information System In Effective Workforce Planning 2013 15 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY of the operational level activities. Furthermore, IS has been developed to support business decision making in order to increase the quality of business decisions. (Figure 1.1) Figure1.1: Level of Management and Types of Support System Source: (Belle et al 2001) Organizations endeavored to use IS at managerial and strategic level to gain competitive advantage, among the four main type of systems within the industry, Management Information System (MIS) and Decision Support System (DIS) are mostly used for business decisions. In most of the firms these systems are loosely coupled resulting ineffective information transportation from one to another, leading to failure to respond quickly to the challenges in the business environment (Dessler G 2011). There are lot of terms in use for these systems, but the most common are e-HRM (e Human Resource Management), HRIS (Human Resource Information System) and HRMS (Human Resource Management System). There is a fundamental difference them, as Human Resource Management System has directly implementation in HR department and employees. Enhancement of HR department is the main goal of HRIS, which all indirectly improve business (Dusmanescu D and Martinovic A B 2011). Apart, from that HRIS can be viewed as database system or a series of interconnected database (Venkateswaran N 2007). Human Resource Information System
  • 16. The Role Of Human Resource Information System In Effective Workforce Planning 2013 16 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY The increase pressure to support strategic objectives and the greater focus on shareholder value has led to changes in both job content and expectations of HR professionals (Shaikh S 2012). Similarly, Mayfield et al (2003), noted that one such major changes include contemporary use of IS in support of HRM. So, a careful analysis indicated that increase HRIS usage enabled improved professional performance. Human Resource Information System (HRIS) is one of the most important management information system, which contribute to HR administration function of an organization. It is the primary transactional processor, editor, record-keeper and functional application system (Grobler et al 2006). HRIS aptly defined by Hendrickson (2003) as an “integrated system used to gather, store and analyze information regarding an organization’s human resources’ comprising of databases, computer applications, hardware and software necessary to collect, record, store, manage, deliver, present and manipulate data for human resources function”. It supports the provision of executive reports and summaries for senior management and is crucial for learning organizations that see their HR as providing a major competitive advantage (Shaikh S 2012). It can perform a number of functions from the simple storage and communication of information to more complex transactions. HRIS becomes an integrated strategic tool since it collect, manages and report information for decision making (Ruel et al 2004). Fully integrated HRIS ought to interface with other systems enabling and enhancing the communication between departments such as payroll system with accounting system. Since HRIS deals with employee’s personal data, which are sensitive, it should ensure data security system while transferring information from one place to another. HRIS should be able to enhance communication between employers and employees and build strong relationship with line managers and unions (Shiri S 2012). The use of HRIS has been advocated as an opportunity for human resource professionals to become strategic partners with top management. HRIS allow HR function to become more efficient and to provide better information for decision making (Beadles et al 2005). New HRIS trend seem to build important effect on HR planning embedding new technology with organizational objective and goals. Enterprise Resource Planning System (ERP), when
  • 17. The Role Of Human Resource Information System In Effective Workforce Planning 2013 17 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY linked with the HRIS subsystem, provides a competitive advantage to organizations over competitors (Belle et al 2001). HRIS and Workforce Planning Workforce Planning is about having right talent with the right skills, at the right time and cost, to support the organization’s strategy. According to Pattanayak and Biswajeet (2009), the role of HR is to incorporate planning and control of Human Resource into the corporate level plans. As a result all resources are used together in the best possible combination. It deals with the systematic and continuing process of analyzing organization’s human resource requirement and develops a plan to fulfill the future workforce positions. It aids to align the organizational objectives with its HR concerns through short-term as well as long-term strategic HR plan by evaluating feedback regularly (Anyim FC 2012). If HRIS facilitates HR planning such as recruitment, training and succession planning, organizations would gain a competitive advantage. HRIS or Human Resource Management System (HRMS) can assist in recognizing experienced, qualified and skilful employees. It can provide a statistical overview for the whole organization to improve its productivity by selecting and developing potential employees for positions (Armstrong M 2009). Organizational recruiting sources such as direct application, advertisements, public or private employment agencies, colleges; universities etc. are going to be replaced by HRIS electronic recruiting facilities reducing the cost of the organization. Employee selection must be according to the job type and relevant skill requirements such as technical skills, intelligence, interpersonal skills, computer skills etc. HRIS inventory facilities can be used to store data in a skill database facilitating the selection of the most suitable candidates after analyzing their skills and qualification according to the job requirement (Antonio FS 2006). Organizations make jobs more rewarding by job enlargement, job enrichment, job rotation and empowerment. In addition, organizations reengineer jobs to compensate employee shortage. Employees gain training and development opportunities whenever
  • 18. The Role Of Human Resource Information System In Effective Workforce Planning 2013 18 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY HR department decides to redesign current jobs. Tao et al (2006), states that training especially is an important strategic practice in the development of internal competence. HRIS facilitates training need analysis to decide what training program might best meet the need; it assists the organization to maintain a training record for each delegate. Succession planning is another part of training and development, used to identify high- potential employee already working in the organization in order to fill the top management positions whenever they become vacant (Brown J 2002). HRIS is one of the systems that organizations invest and implement according to their corporate, HR and IS/IT strategies. HRIS is developed to assist the organizational HR planning. 1.3 Research Problem Organizations that are smart enough to set overall information system policies in advance seem to acquire HRIS to fulfill their HR administrative functions as well as human resource planning functions. Though the existing HRIS system supports HR planning functionalities of the organization, some organizations do not fully utilize them for recruiting, training and succession planning due to the dependence on traditional methods or due to unawareness. Others struggle to align their existing HRIS system facilities with the HR planning functionalities owing to lack of support from their existing system or lack of investments to upgrade the system with required features. The research findings lead to the conclusion that very few organizations are fully aware of the administrative functionality of HRIS and make use of them but do not make optimum use of HRIS functions in support of workforce planning. How does HRIS contribute to workforce planning? Do the available HRIS functionalities adequately support organizational HR planning efficiency and effectiveness? This research is to investigate the contribution of HRIS to Workforce Planning thorough recruitment, training and succession planning to reveal the strength of HRIS as a management processing system. This study would guide future HRIS user to make optimum use of
  • 19. The Role Of Human Resource Information System In Effective Workforce Planning 2013 19 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY HRIS functionalities in HR planning rather than employing it only for administrative work. 1.4 Significance of the Study In the research context, HRIS is still in its initial stages since a lot of forming and reforming are going on in the industry. There is a knowledge gap within research studies as to how HRIS could contribute to effective workforce planning. Therefore, finding the role of HRIS in workforce planning in private sector organizations would be very important, and would contribute to the body of knowledge. Workforce planning is one of the most crucial aspects of an organization, which can be facilitated by HRIS functionalities. A number of vendors supply HRIS software to the market under different names and prices. Organizations spend substantial amounts to acquire HRIS software. After a while, they suffer when they try to align the available HRIS functionalities with HR planning. Sometimes thought organizational HRIS support for HR planning features, organizations do not use all the functionality due to poor response from the users (Nawaz M N 2012). It is time to conduct a proper study to find out how HRIS could contribute to workforce planning other than as a mean of facilitating administrative matters. This study would not only fill the existence gap in research studies, it would also encourage organizations to review there IS policies and HRIS utilization in HR planning Thought this study, HRIS vendors would also be able to re-evaluate the HR planning functionality of HRIS to minimize deficiencies and enhance its services. Furthermore, vendors can decide as to whether they have instructed their client to make optimum use of HR planning through the opinion of the senior HR executives. 1.5 Purpose of Research
  • 20. The Role Of Human Resource Information System In Effective Workforce Planning 2013 20 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY The purpose of this research is to explore the functionality and contribution of HRIS in Workforce planning through HRIS recruiting, training and succession planning subsystem within the perception of senior HR executives in private sector organizations. This study would contribute to the body of knowledge by filling the existence gap in the workforce planning aspect of HRIS studies by analyzing the senior HR executive’s opinions and awareness of HRIS functionalities towards the success of workforce planning. Workforce planning and people management was selected as the focus of this study since it is likely to be supported by HRIS tools; job analysis, skill inventory, e- recruiting, TNA, training evaluation, succession planning, HRIS labour demand and supply analysis and decision making. This study would determine the contribution of this to human resource planning by developing a conceptual framework. 1.5.1 Research Questions 2. How effective and efficient does the HRIS recruitment subsystem contribute to workforce planning of an organization? 3. How effective and efficient does the HRIS training subsystem contribute to workforce planning of an organization? 4. How effective and efficient does the HRIS succession planning subsystem contribute to workforce planning of an organization? 1.5.2 Research Objectives 1. To investigate the contribution of HRIS recruitment subsystem to workforce planning of an organization. 2. To investigate the contribution of HRIS training subsystem to workforce planning of an organization. 3. To investigate the contribution of HRIS succession planning subsystem to workforce planning of an organization. 1.6 Justification of Research
  • 21. The Role Of Human Resource Information System In Effective Workforce Planning 2013 21 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY This research will disclose the role of HRIS in workforce planning with special emphasis on recruitment, training and succession planning since these processes have direct involvement in organizational goals. This study proposes a conceptual framework representing the role of HRIS in workforce planning through recruitment, training and succession planning. During the pilot survey, Heads of HR who are directly involved in HR planning were interviewed to analyze their views. They emphasized that senior HR executives were more involved in HRIS than them. For this reason, researcher has selected senior HR executive as a focus to carry out this research, as they are the experts who directly use HRIS. Beadles et al (2005) find out that user satisfaction and perception of the system has often been used as a proxy measure for the effectiveness of the system. This is because the ideal assessment of HRIS success might include hard measure such as Return on Investment (ROI) the control of extraneous variables makes this type of measurement of success difficult if not impossible. Although the management plans to make use of HRIS in workforce planning, if the existing HRIS functionality does not support the objectives, the effort will not bear fruit. This research would help to identify whether the existing HRIS in an organization is still in developing stage or it has matured to facilitate workforce planning. This study will identify if organizational HRIS considered MIS (Management Information System) and DSS (Decision Support System) to support HR decision making or merely TPS (Transaction Processing System). It makes recommendation for the future developments of HRIS in order to fit into workforce planning. A lot of research has focused on the administrative functionalities of HRIS but very few studies have been carried out on the HR planning aspect of HRIS. There is a knowledge gap as to how recruitment, selection, training and succession planning functionalities of HRIS contribute to HR planning. Not many studies exist on the HRIS HR decision support functionality for workforce planning. Therefore, this research is important. 1.7 Research Terminology
  • 22. The Role Of Human Resource Information System In Effective Workforce Planning 2013 22 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Co relational analysis Co relational analysis is done to trace the mutual influence of variable on one another (Sekaran and Uma 2003), whereas the correlation coefficient (r) indicates the strength of relationship between two variables. Cross-sectional study A cross sectional research is the study of a particular phenomenon (or phenomena) at a particular time, i.e.; a snapshot (Saunders et al 2003). Decision support system (DSS) Decision support system (DSS) refer to computer system used by managers in the decision making process. Finally distinguished between data-oriented and management oriented approaches. Deductive research approach Deductive research approach involving the testing of a theoretical proposition by the employment of a research strategy specifically designed for the purpose of its testing (Saunders et al 2003). ERP system ERP system is software that provides computer system interrogation and support to all units and functions across on organization in a single system, thus eliminating the need for individual unit database or systems (Babey 2006). Executive information system (EIS) Executive information system (EIS) are user- friendly computerized systems designed specifically to provide selected and summarized information from diverse sources in a form that permits access, analysis and presentation to assist top level management (Collier and Dixon 1995).
  • 23. The Role Of Human Resource Information System In Effective Workforce Planning 2013 23 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Expert system (ES) An expert system (ES) is a computer system which has the knowledge-based component of an expert skill held in a form that enables the computer to offer intelligent advice or take an intelligent decision Inductive research approach Inductive research approach involving the development of a theory as a result of the observation of empirical data (Saunders et al 2003), therefore, general inferences induced from particular instances Non-profitability sampling In non-profitability sampling design, the elements in the population do not have any probability attaché to their being chosen as sample subjects Probability sampling design When elements in the population have a known chance of being chosen as subjects in the sample, we resort to a probability sampling design. Positivism Positivism is a paradigm that originated in the natural sciences. It rests on the assumption that social reality is singular and objective, and is not affected by the act of investigating it (Collis and Hussey 2009). Qualitative and Quantitative method In new or underdeveloped areas, it is common to apply qualitative methods in a preliminary stage, thus enabling the researcher to develop a conceptual framework, to generate hypothesis, or to establish the necessary tools (particularly instruments for measurement) for the quantitative study.
  • 24. The Role Of Human Resource Information System In Effective Workforce Planning 2013 24 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY 1.8 Outline of this research Chapter 1: Introduction This chapter includes the background to this research, its objectives and discusses HRIS‘s functional role within an organization, human resource planning and HRIS theoretical perceptions. Chapter 2: Literature survey This chapter analyses the existing studies and their findings. It also highlights the existing gaps of knowledge and examines the potential contribution of the current study to fill this gap. Chapter 3: Research design This chapter lays out the conceptual framework of the thesis. Research approach, methods and strategy are selected considering the alternative actions. Conceptual framework is developed identifying the variables, their relationships. Select the appropriate statistical methods that can be used to analyze the data. Chapter 4: Data Analysis In this chapter, results are discussed using appropriate charts, graphs and tables with selected software packages. Chapter 5: Summary, conclusion and recommendations Presents a summary of the study recapitulating the findings and highlights future areas for research. Existing gaps that could not be addressed in the current research are also documented. 1.9 Conclusion Information system adds value to an organization enhancing efficiency and effectiveness of daily activities. Workforce planning is the process of forecasting
  • 25. The Role Of Human Resource Information System In Effective Workforce Planning 2013 25 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY employment needs. HRIS is one of the information systems that facilitates workforce planning. Even though HRIS facilitates workforce planning, some organizations are unable to make use of it due to various problems such as lack of support through the existing system, lack of knowledge or because of dependency on the traditional method. This research study mainly aims to find out whether the organizational HRIS role contribute to effective and efficient workforce planning processes through recruitment and selection and training and succession planning processes.
  • 26. The Role Of Human Resource Information System In Effective Workforce Planning 2013 26 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY CHAPTER 2 REVIEW OF LITERATURE 2.1 Introduction Information System is an integrating subject area for man researches in this information age. HRIS is a management information system, which is employed by many
  • 27. The Role Of Human Resource Information System In Effective Workforce Planning 2013 27 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY organizations spending substantial amounts. Many studies have discussed HRIS benefits, obstacles and usage on various occasions. Workforce planning is another research area that has been discussed continuously from many years. However, there are not many studies based on the contribution of HRIS in workforce planning throughout recruitment, training and succession planning. This literature survey attempts to gather the existing knowledge based on HRIS model, workforce planning, recruitment, training and succession planning. By reviewing existing studies, the research tries to reveal knowledge gap, which has to be addressed in a near future. 2.2 Literature Review Human Resource Information System (HRIS) is a concept concerning the utilization of Information Technology (IT) development and characteristics for effective managing of the HRM functions and application (Kovach et al 2002). The last decade has seen a significant increase in the number of organizations gathering, storing and analyzing
  • 28. The Role Of Human Resource Information System In Effective Workforce Planning 2013 28 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY human resource data using HRIS (Ball 2001; Barron et al 2004; Hussain et al 2007; Ngai et al 2006). In the present context of globalization, employing organizations, and their environments have become increasingly complex. Managers in these organizations face growing difficulties in coping with workforce that may be spread across various countries, cultures and political system (Beckers and Bsat 2002). Snell et al (2002) observe that HRIS can meet the challenge of simultaneously becoming more strategic, flexible, cost- effective and customer oriented by leveraging information technology. The rapid development of IT during the last two decade has boosted the implementation and application e-HRM/ HRIS (Strohmeier 2007). Surveys of HR consultants suggest that number of organizations adopting HRIS and the depth of applications within the organizations are continually increasing (Benfatto M C 2010). Kovach et al (2002) argue that HRIS varies among organization in relation to their size; it can be informal as the payroll, records and time cards in a small organization. The emergence of strategic human resource management (SHRM) approach has created a real need for information about HR (Ball 2001). Studies show that HRIS application in HR helps in achieving primarily three objectives i.e. cost reduction, efficiency grains, and facilitating management and improving the strategic orientation of HRM/ innovation, client services (Broderick and Boudreau 1992). Ruel et al (2004) added a fourth dimension to it i.e. allowing integration of HR functions. These could be set as HRIS goals and taken as the basic reasons for adaptation of HRIS in an organization. The current generation of HRIS automates and develops routine administrative and compliance functions traditionally performed by corporate HR departments and can facilitate the outsourcing of HR (Barron et al 2004). In doing so, HRIS not only make it possible for organizations to significantly reduce the costs associated with HR delivery, but also to reassess the need for retaining internal HR capabilities. However, HRIS also provide HR professionals with opportunities to enhance their contribution to the strategic direction of the firm (Lawler et al 2003). Second, HRIS provides an opportunity for HR to play a more strategic role, through their ability to generate real time reports on HR issues, including workforce planning (Hendrickson 2003; Lawler et al 2004; Lengnick Hall et al 2003).
  • 29. The Role Of Human Resource Information System In Effective Workforce Planning 2013 29 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY The existing literature on HRIS suggests that they have different impact on HR across organizations, but provides little explanation for this variation. Early survey suggested that HRIS were used predominantly to automate routine tasks (Martinson 1994; Grant et al 2006). Ball (2001) reported similar results for small and medium sized enterprises in UK and conducted that HR had missed the strategic opportunity provided by HRIS. More recent research shows greater use of HRIS in support of strategic decision making by HR (Hussain et al 2007). However, the extent to which HRIS is used in a strategic fashion differs across organizations, with the vast majority of organizations continuing to use HRIS simply to replace manual processing and to reduce costs (Brown J 2002). 2.2.1 HRIS Benefits and Obstacles Many studies have cited HRIS benefits, such as the improvement in accuracy, the cost saving and the timely and quick access to information through HR reports (Ngai and Wat 2006). In HR, reports can be generated from data input into a HRIS database via previously programmed report generators, thereby making “transparent” HR collective data from the aggregation of the personal data actually input (Tansley et al 2001). Ngai and Wat studied how HRIS reduced the cost of an organization. How it maintained customer satisfaction, improved quality and innovations. Almost all the HR applications involve the automating of HRM activities (Ngai et al 2006). HRIS was not only designed to automated HRM activities to gain administrative advantages; rather, it could be used for decision making to provide strategic advantages for companies. The key element in the support HRIS provides for the company’s HR strategy is the availability of information as input for HR relating decision- making processes (Beulen and Erik 2009). Ngai and Wat (2006), listed benefits of HRIS: increased competitiveness by improving HR operations shifts the focus of HR from the processing of transactions to strategic HRM, makes employees part of HRIS and reengineering the entire HR function of companies. Alvarez-Suescun (2007) also highlighted HRIS as a competitive tool which can be used in the organizational HR department. Reddic and Christopher (2009) stated that the scope of HRIS was information rich and transaction poor. First, this implied that the typical justification for the implementation of HRIS or reducing costs might not be found in the survey findings presented. It seemed that
  • 30. The Role Of Human Resource Information System In Effective Workforce Planning 2013 30 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY improving customer service and providing higher quality services were important factors. Second, more effort should be devoted to finding ways to increase the use of HRIS to support more advanced strategic decision-making tools within public sector organizations. The evidence showed that there was more use of HRIS for basic information, but much less on decision support functions. Reddic and Christopher (2009) arrived at an important conclusion; improving customer service and providing higher quality services were important than reducing cost, which is not much discussed in other studies. In particular, most researchers emphasized the decision-making inability of HRIS. Kovach and Cathcart (1999) mentioned that lack of top management support, funds, HR knowledge of system designers and HR solutions are the main factors that keep organizations away from HRIS. Teo et al (2007), also came up with similar findings: departmental relative advantage, compatibility, top management support, size of the organization and HRIS expertise emerged as important variables discriminating between adopters and non- adopters of HRIS. A research conducted by the Institute of Management and Administration 2002 indicated the issues in managing a HRIS to include: lack of staff, lack of budget, problem with time management, need to work with other departments and lack of IT support. Ngai and Wat (2006) found costs to be the main barrier to the implementation of HRIS. Ball (2001) identified two fundamental differences between small and large firms when purchasing HRIS: cost and risk. Small firms cannot afford advance enterprise resource planning ERP systems (i.e. SAP, PeopleSoft) due to cost. The risk on implementing new software was high for small organizations. They needed longer time to develop HRIS to have more sophisticated facilities. Ngai and Wat (2006) and Ball (2001) showed that small organizations have a lesser possibility of implementing HRIS due to lack of funds. However, Ball (2001) foresaw suitable HRIS system for small organizations thought they didn’t facilitate all the features that large organizations gain. He states that the small business sector is seen as growth area by some HRIS software vendors who prefer flexible, low-cost genetic, windows-based products. Recent practitioner literature examining the use of HRIS in small companies advanced the view that the issues they face regarding HRIS uses are
  • 31. The Role Of Human Resource Information System In Effective Workforce Planning 2013 31 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY slightly different to their larger counterparts, yet research in HRIS to date is oriented to the larger organization. Ngai and Wat (2006) concluded that cost of adopting, operating and maintaining the HRIS is relatively high. Cost created barriers and kept HRIS away from small organizations. Same issue caused the lack of attention given to develop and enjoy sophisticated benefits of HRIS. Ozcelik and Ferman (2006) say that HRIS may create resistance from employees sue to emotional resistance to change or use technology due to learning difficulties, and fear of measures taken to ensure the security of information. Most HRIS researchers focus on its benefits and implementation barriers. Most of them observed the high cost of HRIS. Few of them analyzed the HRIS decision support benefits. 2.2.2 HRIS Usage Human resource planning, recruiting, and training and succession planning are less frequent users within personnel perhaps reflecting greater use of the system for routine reporting than for decision support. Ngai and Wat (2006) stated that HRIS usage was decided by the HR strategy of an organization and further described a matching process between different strategies and different system usage. If the strategy were to reduce cost, the system would have been based on administration purposes. Ngai and Wat (2006) classified HRIS into two types according to their usage: “unsophisticated” and “sophisticated”. Payroll and benefits administration, and employee absence records keeping electronically is listed as “unsophisticated” since it is an electronic replication of the contents of the HR department‘s manual files. He called this simple minded automation. Use of IS in recruitment and selection, training and development, succession planning, HR planning and performance appraisal, is classified as “sophisticated” since those support decisions which involve expert judgments. A quality-based strategy is similar to an expert systems approach. Innovation strategy matched with decision support systems. Kovach and Cathcart (1999) also noted that HRIS information could be used for administrative purposes, which reduce cost and time, and supported more analytical
  • 32. The Role Of Human Resource Information System In Effective Workforce Planning 2013 32 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY decisions as well. They further added two general purposes of HRIS application as administrative purposes that reduced processing costs and time, and decision- support application that assisted HR managers, non- HR managers, and employees to make better decisions. According to a survey Ball (2001) showed that 60 percent of Fortune 500 companies used the HRIS to support daily human resource management (HRM) operations. He classified HRIS according to administrative and analytical aspects and predicted out though HRIS was used for administrative purposes, the trend would be to use it for analytical purposes. HRIS functionality nowadays includes corporate communication, recruitment, succession, training, employee opinion survey, compensation, payroll services and employee verification as well as general information (Ngai and Wat 2006). According to Beulen and Erik (2009), the HRIS contributes positively to staff retention for global IT service providers in engineering markets. HRISs have indirect influence on retention management. But a HRIS can also be a strategic HR tool. HR executives can use HRISs to support their strategy and talent management programs by considering some specific functionality, such as human resource planning, staff development and regulatory compliance, benefits administration, and performance appraisal (Beulen and Erik, 2009). According to Beulen and Erik (2009), performance appraisal is an important factor in employee retention. In performance appraisal, it is really important that employee’s individual expectations are managed well, but the same holds for the expectations of departments and divisions. The degree to which objectivity regarding individual’s performances is properly assessed is very important and employee’s sense of being appraised objectively is increased by setting clear objectives before the assignment, and by assessing their performance together with them afterwards (Beulen and Erik 2009). These insights should be used to set the HRIS parameters and to implement its functionalities. When such aspects are implemented, HRIS may indeed contribute significantly to the optimization of retention management (Beulen, 2009). Though Beulen (2009) studied in depth the staff retention aspect of HRIS, most of the researchers had studied unsophisticated usages of HRIS. They have not focused much on whether the users enjoy the sophisticate usages fully or partly. Are the benefits received worth the cost? These aspects are not much analyzed by most of researchers.
  • 33. The Role Of Human Resource Information System In Effective Workforce Planning 2013 33 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Even Beulen (2009) has not done as in-depth study regarding HR planning since his objective was to find whether HRIS’s contribution to staff retention was positive or not. 2.3 HRIS Role in HR Planning HRIS provides a foundation if a set of analytical tools that assist managers in establishing objectives and in evaluation the performance of the organization’s HR programs. The well designed HRIS will serve as the main management tool for aligning human resource department goal with long term planning goals (Chauhan et al 2011). HRIS primary role of integrating human resource management and information technology has lead to competitive advantage and hence attracted many human resource managers and professionals. Other vital facts of HRIS reported in literature are effective human resource decision making and also strengthening an organization’s character (Sadri and Chatterjee 2003), reducing process and administration cost, speeding up transaction processing, reduce information errors and improve the tracking and control the HR actions (Lengnick et al 2003). It can be summarized that HRIS, is a computerized system that aids in processing of information relating to human resource management and has come a crucial element of all organizations. It can be deemed as a device which is designed to fulfill the manpower information needs of the organization. Thus the importance and role of HRIS is multifaceted, ranging from operational assistance in collecting, storing and preparing data for reports, simplifying and accelerating the process and controlling the available data, reducing labour cost for human resource departments and providing timely and diverse information to the management of the company, based on which it is possible to make quality strategic decisions related to human capital (Aggarwal N and Kapoor M 2012). This paper mainly focuses on the role of HRIS in recruitment, training and development. 2.3.1 Training and Development
  • 34. The Role Of Human Resource Information System In Effective Workforce Planning 2013 34 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Training and development of employees is crucial in organizations in the era of competition due to the fact that organizations need to survive, grow and develop. It could no longer be based on the good will of the superior to train his/her subordinates (Glaveli and Kufidu 2005). The training and development intervention needed to be carefully designed and implemented and linked to organizational goals and strategy for the training investment to pay off. Training is considered as the process of upgrading the knowledge, developing skills, bringing about attitude and behavioral changes, improving the ability of the trainee to perform tasks effectively and efficiently in organization (Will 1994; Palo et al 2003). Similarly, Steward 1996 combines the two concepts of training and development and gives an organization function which has the outcome of ensuring that the contribution of individual and group in achieving the organizational objectives through the development of appropriate knowledge, skills and attitude of the employee (Ongori H and Nzonzo JC 2011). Sambrook and Sally (2005) suggests there are difference between training and development practices relative to organization size and small firms face unique barriers, including access to time for and the cost of training. According to Glaveli and Kufidu (2005) the training approach is continuous, systematic and strategy oriented. The training process consists of four phases. a. Training Need Analysis (TNA) b. The design phase, which involves the creation of the training activity. During this phase, formulates and implements a detailed training plan, referring to: training objectives and content, staff subject to training, involved resources, methodological options, training delivery channels-media, centralization/decentralization of the activity, specific objectives and outcomes etc. c. The implementation phase, which refers to the understanding of the participant’s background and characteristics, the close observation of the instructor’s behavior, measurement of participant’s perception level and participant’s satisfaction. d. The training evaluation. It is necessary to ensure that the training activity is processing towards the intended objectives. The evaluation phase measures mainly participant’s satisfaction with the training program.
  • 35. The Role Of Human Resource Information System In Effective Workforce Planning 2013 35 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Training resources, like other resources in the organization, are limited. To utilize training resources to the best advantage, companies must put a fair amount to effort in training needs assessment. Tao et al (2006) defined need as a gap between a current set of circumstances and some changed or desirable set of circumstances, and needs assessment as the process of measuring (as scientifically as possible) or appraising that gap. The word “circumstance” in this definition can be substituted with words such as “proficiency” (knowledge, skills and attitudes), “performance” or “situation”. Furthermore, he advocated that though companies may adopt various training models or processes, they all need to establish a training information system as a reference for determining an effective training plan, HRIS consists of one of the automated training needs assessment tools. Tao et al (2006) presented a conceptual framework of a web- based training needs assessment system, they have not studied whether the existing HRIS TNA support for HR planning which is going to address by this research study. According to Glaveli and Kufidu (2005), an electronic model based on skills development and the evaluation of employees sustains the training and development effort. The advantages expected are to: a. Put the right employee to the right job, b. Profit the best people in each area and create personality and skill traits, c. Make a valid and fair evaluation, d. Allow people see and understand who they are and their future training and development needs, e. Help to know at which rate employee is capable of learning, and f. Help to build effective teams. Training and Development Needs Assessment Model The Al-Khayyat (1998) model (Figure: 2.1) has discussed the main elements of T&D information system. The limitation of this model is that it has not depicted how the new technology contributes to T&D. the model could have been perfect if it showed the effect that comes from organizational HRIS system to enhance the each step of Al- Khayyat’s (1998) Training and Development Needs Assessment Model.
  • 36. The Role Of Human Resource Information System In Effective Workforce Planning 2013 36 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Figure 2.1 Training and Development Needs Assessment Model Source: (Al- Khayyat 1998 ) However, Al-Khayyat (1998) model has identified the evaluation and feedback element as one of the most important elements in training and development, which was studied in detailed by Yadapadithaya in 2001. According to Yadapadithaya (2001) argued that though some experts on the evaluation of training make a distinction between validation (the assessment of whether the training has achieved its intended objectives) and evaluation (the measurement of the total effects of the training program) in practice, this distinction is not always meaningful. Since it may be almost impossible to obtain information on the total effects of training, which may be extremely complex. Yadapadithaya (2001: 265) has stated that the training needs analysis and evaluation trend as follows; PLAN TO PLAN - T&D FIELD - HR T&D COMITEE - ADMINISTRATIVE RULES DATA GATHERING - DEVELOP - COMPETENCY CHARTS - QUESTIONAIRE - DESIGN T&D Information system EVALUATION AND FEEDBACK DATA ANALYSIS IMPLEMENTATION DEVELOP DATA GATHERING CYCLE
  • 37. The Role Of Human Resource Information System In Effective Workforce Planning 2013 37 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY “a sound training and development program should contain specific, measurable, achievable, relevant, and timely (SMART) objectives based on a systematic training- needs analysis conducted at three levels- individual (acquisition of proper knowledge, skills and attitudes) and organization (organization objectives, resources and allocation of resources). A very important aim of the evaluation process is to determine whether the predetermined objectives are being met”. Yadapadithaya (2001:266) has highlighted two basic aims of evaluation: assessing training effectiveness and using it as a training aid. “The primary aim of evaluation is to improve training by discovering which training processes are successful in achieving their stated objectives (to ‘sort’ out good training from the ‘bad’). Since ‘evaluation’ affects ‘learning’, it can also be used as a training aid (knowledge of results facilitates good learning)”. Evaluation data can be obtained prior to training, during training, immediately after training, or at a specified time after the end of training. In most of the cases, evaluation was done immediately after training. As Yadapadithaya (2001) points out, the various levels of evaluation-reactions, learning, job behavior, organizational unit and ultimate value- act as powerful links in a chain of cause and effect. Training leads to reactions, which lead to learning, changes in job behavior, and changes in organizational unit, which lead to changes in achievement of the ultimate goals of the organization. At the same time Yadapadithaya (2001) has argued according to the finding that this can be broken at any link when trainees have learnt something but not going to apply them to achieve objectives of the organization. He concluded other deficiencies in corporate training and development system as lack of a clear-cut written training and development policy, weak interaction between the industries seeking training provision and the institutions providing training, lack of systematic and comprehensive training needs assessment, and failure to evaluate the effectiveness of training and development program. However, he has not focused on how new technology: HRIS can be used to increase the effectiveness of evaluation stage of training and development. 2.3.2 Succession Planning
  • 38. The Role Of Human Resource Information System In Effective Workforce Planning 2013 38 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Succession planning can be defined as the attempt to plan for the right number and quality of managers and key-skilled employees to cover retirements, death, serious illness or promotion or any new positions which may be created in future organization plans (Sambrook 2005). For decades, the concern of succession planning was about the exact people, not skills and talents, who are needed for the organization’s future (Garman R and Tyler I 2004). Some researchers explained succession planning as a systematic effort to help managers, who needs to identify a pool of high-potential candidates, develop leadership competencies and then select leaders from the pool of potential leaders. Others have referred to it as a strategic, systematic and deliberate activity to ensure an organization’s future capability to fill vacancies without bias (Mehrabani SE and Mohamad NA 2011). A key factor influencing succession planning is the role of human resource development, which includes organizational development, career development, and the learning and development of potential successors (Sambrook and Sally, 2005). However, Sambrook ans Sally (2005), has not discussed how IS, especially HRIS can be used in succession planning, which is the main weak point in his research. 2.3.3 Recruitment and Selection Recruitment represents one of the cores staffing activity that need to be effective and efficiently planned and conducted for organizations to attain success (Darrag et al 2010). Darrag et al (2010), identified recruitment as the process of discovering potential candidates for actual or anticipated organizational vacancies or from another perspective, it is a link activity-bringing together those with jobs to fill and those seeking jobs. According to Selden et al (2000) a fair number of studies focus on the performance effects of specific human resource management policies, such as training and selection. The different stages of the recruitment and selection process were identified as:  Department (contextual) analysis,  Job analysis,  Job description and person specification,  The seeking of applicants,
  • 39. The Role Of Human Resource Information System In Effective Workforce Planning 2013 39 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY  Attracting applicants,  Screening applicants,  Interviewing candidates,  Appointment. According to Pattanayak (2000), planned recruitment program has the following basic components (Figure: 2.2) Figure 2.2: Framework of Recruitment and Selection Source: (Pattanayak 2000) The process of recruitment may begin with advertising vacancies, this may be done internally or externally or both can be achieved using a range of media, which may involve using the company website (El-kot and Leat, 2008), the use of the internet for recruitment purposes has become very popular. However El-kot and Leat (2008), has identified the different level of technical sophistication found among organizations in Recruitment Advertisement Organization Goals Job Analysis Job Description Job Specification Applicants Workload Analysis Manpower Requisition Selection Process Application Forms Test Interview Reference Check Medical Examination Selected Candidate
  • 40. The Role Of Human Resource Information System In Effective Workforce Planning 2013 40 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY relation to the use of new technology in selection. Organizations may also make use of state run job centers or employment agencies or their own database of speculative enquires. According to El-kot and Leat (2008), there is a range of selection practices that may be used including: application forms, curriculum vitae, one-to-one and panel interviews, psychometric testing, assessment centers, job trials, job specific aptitude or knowledge tests, graphology, group-based activities and references. El-kot and Leat (2008) concluded that the selection interview had probably been the single most used technique in most countries throughout the twentieth century. Though Darrag et al (2010) and El- kot and Leat (2008) have all studied recruitment and selection methods in detail they have not focused their attention on how new technology, especially HRIS could enhance and strengthen the recruitment and selection process of an organization. Selden et al (2009), in their study focused on evaluating the effectiveness of human resource management system, offering a framework and methodology filling this knowledge gap: human resource management system is often an invisible asset that creates value by enhancing government’s capacity to recruit and retain employees. However, they addressed the ability to assign an effective evaluation system given an existing set of criteria and constructed a survey instrument aligned with the identified criteria but they didn’t try to measure the effectiveness of recruitment and selection feature of Human resource management system. The results of this assessment were robust to a variety of rule specifications and measurement adjustments Selden et al (2000). El-kot and Leat (2008) has discussed the online recruitment process, which is more fitting for paperless offices. 2.4 HRIS Models 2.4.1 Hyde-Shafritz Model
  • 41. The Role Of Human Resource Information System In Effective Workforce Planning 2013 41 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Albert C. Hyde and Jay M. Shafritz were among the first to attempt a conceptual framework for the HRIS. In a 1977 journal article, they identified sixteen database modules, which were integrated in that they had the capability of exchanging data (McLeod and Sanctis 1995). It was a very primary module, which listed the modules as sixteen inputs and outputs (Figure 2.1) Both position and person data are entered into the HRIS to enable management to perform the planning function. The HRIS produces reports organized along the lines of the modules, which facilitate accountability. A feedback loop enables the objectives to be modified to reflect actual performance. This is a typical closed- loop system module, consisting of input, processing, output, and feedback loop (Asmanhanostadi 2011). Figure: 2.3 The Hyde-Shafritz HRIS model Source: (McLeod and Sanctis 1995) 2.4.2 Resource Flow HRIS Model The resource-flow model illustrated in figure 2.2 consists of three subsystems devoted to data input, a HRIS database, and six subsystems devoted to transforming the data into information and making it available to users. The input data obtained from both internal
  • 42. The Role Of Human Resource Information System In Effective Workforce Planning 2013 42 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY and environmental sources, and the users consist of individuals and organizations both inside and outside the firm (McLeod and Sanctis 1995). The Resource flow model focuses on the flow of human resources through the firm. It recognizes that the firm’s environment provides a pool of potential employees who are subjected to a screening process before joining the firm. While in the firm, the employees receive training and education, perform their tasks and receive evaluations. The employees are compensated for their efforts with money and other benefits (McLeod and Sanctis 1995). The task of the HRIS is to gather data that tracks this human resource flow, store the data until it is needed and use the data to produce information and enables person both in the firm and its environment to monitor the flow. In input subsystem, there are three main subsystems which are data processing, human resource research and human resource intelligence. Some input data might include software that can transform the data into the format that needed and required. The second is HRIS database; all the data and information can be stored in computer storage. The last one is output subsystem, which contains all the output related to HR consists of workforce planning subsystem, recruitment, workforce management, compensation, benefit and environmental reporting subsystem (Allan 2011). 2.5 Conclusion Organizations use Information Systems in all levels of information management: strategic, tactic and operational. HRIS is one of the information systems out which
  • 43. The Role Of Human Resource Information System In Effective Workforce Planning 2013 43 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY transform the roe of the HR department incorporating records for employee resource, rewards, training etc. Many studies cited HRIS benefits, such as improvements in accuracy, cost saving, timely and quick access to information through HR reports, decision-making and increased competitiveness. Lack of top management support, funds, HR knowledge of system designers and HR solutions, are the main factors keeping organizations away from HRIS. According to literature, human resource planning, recruiting and training are less frequent users within personnel perhaps reflecting greater use of the system for routine reporting than for decision support. HRIS is classified in to two types according to their usage: “unsophisticated” and “sophisticated”. Payroll and benefits administration, employee absence record keeping electronically are listed as “unsophisticated”. Use of IS in recruitment and selection, training and development, HR planning and performance appraisal, is classified as “sophisticated”. Many researches were curious about the integration of HRIS with other emerging technologies such as MIS, ERP, her etc. Due to the advent of internal technology and the emerging concept of business intelligence HRM subsystems have changed to e-HRM systems. It is very hard to give a clear cut view to distinguish her from HRIS since HRIS developed with most of the her features today. According to Alvarez-Suescun (2007), firm size or technical skills do not affect organizational sourcing decisions. The HRIS implementation sourcing decision may be influenced by previous experiences in the implementation of other systems and strategic contribution of the IS on the internal organization. According to some literature organizations gain competitive and strategic advantage if HRIS activities are undertaken internally. HRIS facilitates training and development and recruitment processes of the organizations. The training and development function is essential for changing behavior and culture and reinforcing the new behavior and culture in an organization. Succession planning which is facilitated by HRIS helps to identify key players in the organization and develop them for future demand. Recruitment represents one of the core staffing activities that need to be planned efficiently and effectively. Pattanayak (2000) identified four sub functions: determining the nature of the job to be filled. In Indian
  • 44. The Role Of Human Resource Information System In Effective Workforce Planning 2013 44 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY context, literature relevant to HRIS, training and development and recruitment and selection are hard to found, especially how, HRIS contribute to HR planning through training and development and recruitment and selection. The systematic development of HRIS models is studied through the literature review. The first conceptual framework is the Hyde-Shafritz Model, which listed the modules as sixteen inputs and outputs presented in 1977 by Albert C. Hyde and Jay M. Shafritz. The Simon Input/Data Maintenance/Output Model was presented in 1986 by Andrew Manzini and John D. Gridley. They viewed the HRIS in terms of interfaces with a corporate human resources database. The Fisher, Schoenfeldt, and Shaw Application Modules presented in 1990 by Cynthia D. Fisher, Lyle Schoenfeldt, and James B. Shaw identifying nine major application areas of the HRIS. The mst recent and comprehensive model was a Resource Flow HRIS Model, which was presented by HRSP and McLeod and Schell. This was more advanced than earlier models. There was some amount of focus to embed artificial intelligence in order to facilitate more advanced decision-making capabilities.
  • 45. The Role Of Human Resource Information System In Effective Workforce Planning 2013 45 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY CHAPTER 3 RESEARCH DESIGN & METHODOLOG Y
  • 46. The Role Of Human Resource Information System In Effective Workforce Planning 2013 46 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY 3.1 Introduction This chapter lays down the research design. The discussion borders specifically on the research philosophy, approach, strategy in order to develop methodology to address research questions. Sampling procedure too is discussed in detail. Questionnaire was developed to identify the variables and data requirements to fulfill the research objectives. Measuring instruments such as validity and reliability are discussed in detail in this chapter.
  • 47. The Role Of Human Resource Information System In Effective Workforce Planning 2013 47 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY 3.2 Research Design and Methodology 3.2.1 Research Philosophy This study shares some of positivism aspects which recognize only facts and observable phenomena and follow a deductive theory. Under positivism, theories provide the basis of explanation, permit the anticipation of phenomena, predict their occurrence and therefore allow them to be controlled (Collis and Hussey 2009). Explanation consists of establishing casual relationship between variables by establishing casual laws and linking them to a deductive or integrated theory (Collis and Hussey 2009). Since it is assumed that social phenomena can be measured, study is associated with quantitative methods of analysis. Though HRIS and business environment changes to some extent the results of the study can be generalized within a specific environment. Since the study is exploratory, it did not attempt to dig into deeper layers of reality. In positivism, reality is objective and singular, separate from the researcher. Similarly, researcher is independent from what was researched. The HRIS role is subjective and multiple as seen by the senior HR executives. Therefore biases are present. In that sense, study is closed to interpretive philosophy. Interpretive is underpinned by the belief that social reality is not objective but highly subjective because it is shaped by our perceptions. The researcher interacts with that being researched because it is impossible to separate what exists in the social world from what is in the researcher’s mind (Saunders et al 2009).
  • 48. The Role Of Human Resource Information System In Effective Workforce Planning 2013 48 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Even though it is difficult to classify the study under positivism/realism or interpretive philosophy, it could be argued that this study is closer to realism philosophy since it was likely to affect senior HR executive’s attitude and perception towards the efficient and effective use of HRIS in workforce planning in a given environment. Realism shared some philosophical aspects with positivism as well. Senior HE executives themselves did not object to this study since HRIS influence in workforce planning was independent from attitude and perception of senior HR executives as the fruitfulness of HRIS depends on its available features developed by vendors. Despite that, HRIS usage in HR planning depends on senior HR executives since their attitude, perception and behaviors deploy the HRIS role successfully, which is not noticeable to them. 3.2.2 Research Approaches This study followed deductive research approach where theory and hypothesis are developed and a research strategy is designed to test the hypothesis. This study moved from theory to data explaining casual relationship between variables. According to literature review, research is an empirical however; sufficient literature on HRIS is available from different county and organizations. Conceptual framework was developed based on literature and pilot survey. Research focused on senior HR executive’s opinions. The study is based on quantitative data analysis, where deductive research approach was most suitable. Quantitative data collected to quantify the organizational practice of HRIS for workforce planning. The study could be generalized due to the large sample size. This is possible to some extent since organizational IS and HR strategies change from organization to organization. Simultaneously, HRIS functionalities evolve and reshape day by day due to increasing awareness, new technology and business requirements. The results or findings of this research can be used by organizations that are having similar contexts to enhance and shape their HRIS usage in HR planning from the initial stages of the business. Similar kind of studies could produce similar results in a similar context due to the highly structured methodology employed. Within this study,
  • 49. The Role Of Human Resource Information System In Effective Workforce Planning 2013 49 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY researcher was independent from what was being researched. Researcher was only involved in collecting data through questionnaire, which were either e-mailed to the participants or handed over manually. Study applied controls to ensure the validity of data. Researcher was interested in understanding what is happening rather than as to why it was happening. As much, for this research, deductive approach was more suitable. 3.2.3 Research Strategy Research strategy is developed to plan and answer the research questions. After having considered several research strategies such as experiment, case studies etc; a survey was opted to carry out the research, which is a popular and common strategy in business and management research, which is a popular and common strategy in business and management research. It links to the deductive approach as well (Saunders et al 2009). This research study was an academic research, which had to be completed with limited available resources: both time and source. Survey strategy helped to collect large amount of data using a questionnaire from a sizable population in a highly economical way. Data collected through the questionnaire provided standard data allowing easy comparison. Senior HR executive’s views could be captured with minimum effort and cost. Therefore survey was the most suitable strategy for this research. Questionnaire was disturbed to a sample to representing an unbiased subset of the population. Statistical methods were used to test the likelihood that the characteristics of the sample were found in the population. This effort helped to generalize the findings to some extend within similar type of private sector organizations that use HRIS or organizations, who are planning to use HRIS. Data gathered from questionnaire was used to find dependent and independent variables in the relationship and the validity of the relationship of proposed conceptual framework. As mentioned in first chapter, pilot survey was conducted through interviews. This interview strategy could not be adopted since the number of senior HR executives was rather large and cannot be managed with finite time and cost. Case study is a good
  • 50. The Role Of Human Resource Information System In Effective Workforce Planning 2013 50 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY strategy, but was not selected after considering the time and cost. Case study is a good strategy, but was not selected after considering the time needed to complete research and weak possibility of generalization. Experiment research was not selected due to its unsuitability to this research, which is not on natural science. 3.2.4 Time Horizons This study was not carried out over long period and did not investigate the same group of people several times. Therefore, it cannot be classified as a longitudinal study. According to research questions, this study is designed to obtain research data in different contexts, but over the same period. It had studied two different types of industries: service and manufacturing. Seventy nine (79) senior HR executives were selected randomly as sample size and data collected on their opinion and behaviors towards HRIS through questionnaire, which was designed base on many variables. Moreover, the study was an exploratory research since there are not enough previous HRIS studies relevant to workforce planning. Hypothesis was generated for future research. Therefore, cross- sectional study was selected as time horizon. 3.2.5 Population and Sample frame The unit of analysis for this study consisted of two groups according to industry types: service and manufacturing. Out of total 100 senior HR executives, 79 are selected for sampling of this study. Due to time, budget and resources constraints, stratified random sampling method are employed in this research. Research population refers to the people events or things of interest to the researcher that are to be investigate (Sankaran 2003). In this study, the research population is aimed primarily at urban areas.
  • 51. The Role Of Human Resource Information System In Effective Workforce Planning 2013 51 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Population Frame Organization Type Population Manufacturing Organization 4 Service Organization 4 Table 3.1: Distribution of target population among manufacturing organizations Private Sector Organization Senior HR Executives (Who Uses HRIS) Tata Steel 15 Hayleys 25 Nestle India 11 Larsen & Toubro 14 Total 65 Table 3.2: Distribution of target population among service organizations Private Sector Organization Senior HR Executives (Who uses HRIS) HDFC Bank 7 Decimal Technology 5 Hilton Hotel 8 Reliance Communication 15 Total 35 Total number of employee in the population Table 3.3: Summary of distribution of target population among organizations
  • 52. The Role Of Human Resource Information System In Effective Workforce Planning 2013 52 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Private Sector Organizations Senior HR Executives (Who uses HRIS) Manufacturing Organizations 65 Service Organizations 35 Total 100 Sampling Methods: probability sampling: stratified random Stratified random sampling used to select senior HR executives who use HRIS to extract information to assist the top management. Stratified random sampling is suitable for this study since the population divided into two significant strata based on industry type: manufacturing and service. A random sample was then drawn from each of the strata which ensure that each case in the population has an equal chance of being included in the sample (Dempsey 2003). Determining the sample size Hayleys, Tata Steel and Nestle India were selected as sample representing the manufacturing organizations. These are the leading manufacturing organizations. To represent the service sector Decimal technology, Hilton hotels and Reliance communication were selected. Initially all the selected organizations have based on Krejcie and Morgan table (Collis and Hussey 2009), which could have been constructed using the following formula: S= X² NP (1- P) ÷ d² (N- 1) + X² P (1- P) Where; S= required sample size, X²= the table value of chi square for 1 degree of freedom at the desired confidence level N= the population size
  • 53. The Role Of Human Resource Information System In Effective Workforce Planning 2013 53 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY P= the population proportion (assumed to be .50 since this would provide the max. sample size). d= the degree of accuracy expressed as a portion (.05) Table 3.4 Distribution of sample among manufacturing organizations Private Sector Organization Senior HR executives (Who uses HRIS) Tata Steel 15 Nestle India 11 Hayleys 25 Total 51 Table 3.5 Distribution of sample among service organizations Private Sector Organization Senior HR executives (Who uses HRIS) Hilton hotel 5 Decimal Technology 8 Reliance Communication 15 Total 28 Organization Type Population Sample Manufacturing Organization 4 3 Service Organization 4 3
  • 54. The Role Of Human Resource Information System In Effective Workforce Planning 2013 54 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Table 3.6 Total number of employees in the sample Private Sector Organizations Senior HR executives (Who uses HRIS) Manufacturing organizations 51 Service organizations 28 Total 79 Table: 3.4, 3.5 illustrate number of senior HR executives who uses HRIS in selected organizations as sample based on their industry type. Table 3.6, shows total number of senior HR executives in the sample based on each industry. 3.2.6 Conceptual Framework INTERNAL SOURCE EXTERNAL SOURCE INPUT SUBSYSTEM OUTPUT SUBSYSTEM TRAINING SUBSYSTEM RECRUITMENT SUBSYSTEM SUCCESSION PLANNING SUBSYSTEM HRIS DATABASE WORKFORCE PLANNING
  • 55. The Role Of Human Resource Information System In Effective Workforce Planning 2013 55 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Figure 3.1: Schematic diagram for the conceptual framework Conceptual framework (Figure 3.1) depicts HRIS contribution to workforce planning through three sub systems: HRIS training subsystem, HRIS recruitment subsystem and HRIS succession planning subsystem. HRIS recruitment subsystem represents the functionality of HRIS job analysis, e-recruitment and skill inventory. HRIS training and development subsystem contribute the features of HRIS TNA; HRIS training program evaluation (Aswathappa K 2008) and HRIS succession planning subsystem contribute the features of employee potentialities and identify training gaps (Subba Rao P 2008). 3.2.7 Variables A conceptual framework developed for logical understanding of the relationship between the factors that are identified as vital to the problem. The variables can be graphically represented as follows and the questionnaire is given in Appendix A, which was used to measure the relationship between the variables. A working model was formed as follows to test the research objectives and measure the relationship between variables. H1 H2 H3 H6 HRIS DATABASE HRIS JOB ANALYSIS HRIS E-RECRUITING HRIS SKILL INVENTORY HRIS CAREER PLANNING HRIS EMPLOYEE POTENTIALITY WORK FORCE PLANNING RECRUITMENT SUBSYSTEM SUCCESSION PLANNING SUBSYSTEM
  • 56. The Role Of Human Resource Information System In Effective Workforce Planning 2013 56 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY H7 H4 H5 Figure 3.2 Variables in the conceptual framework HRIS role was identified from three subsystems: HRIS recruiting subsystem, HRIS training subsystem and HRIS succession planning subsystem. From these subsystems, mediate variables were identified considering available HRIS features. All the variables measured using a five point Likert Scales ranging, which are a non-comparative scaling technique and are uni-dimensional in nature. Respondents are asked to indicate their level of agreement with a given statement by way of an ordinal scale (Bertram D 2009). HRIS recruitment subsystem features for job analysis, skill inventory and e-recruitment (Tansley et al 2001), HRIS training subsystem features for TNA, training program evaluation (Lokhandwala 2009). HRIS succession planning subsystem features career planning and HRIS employee potentiality. These features of HRIS are identified as mediate variables, which contribute to dependant variables i.e. effective workforce planning (Beulen (2009), Panayotopoulou et al (2005)) (Appendix1 - Table 3.7). 3.2.8 Data Collection Methods This study focuses on the role of HRIS in an effective workforce planning. Due to time and financial constraints, a mail questionnaire survey and sample interview was considered to be the best instrument for data collection this approach also allowed a wide geographical coverage (Diliman 2000). Also participant’s responses were not
  • 57. The Role Of Human Resource Information System In Effective Workforce Planning 2013 57 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY influenced by the presence of researchers or evaluators as in other data gathering instruments (Boyce 2002). Primary Data Collection As mentioned earlier a pilot survey was done with experts using semi structured interview to clarify the research area. After identifying the research area, questionnaire was designed to address research questions in order to collect primary data for further analysis. Questionnaire provided an efficient way of collecting responses for a large sample prior to quantitative analysis. Questionnaire was e-mailed to the participants since most users read and respond to their own mail. Respondents were senior HR executives involved in workforce planning and HRIS. Questionnaire consisted of scale questions to collect questions. Five point Likert scale ranging: (1; strongly disagree, 2: disagree, 3: neither agrees nor disagrees, 4: agree, 5: strongly agree) was used when designing the questionnaire. Secondary Data Collection Secondary data was collected using organizational annual reports and information available on websites. Annual reports helped to identify organizational strategies: IT/IS and HR organizational hierarchy, investments on IT, organizational scale: large, medium or small etc. annual reports and contact details of organizations were downloaded from websites. Information about HRIS clients were collected through the vendors sites (Appendix1- Table 3.8). 3.2.9 Research Instruments Research instruments used most popular methods with anonymous questionnaire design (Ghauri and Grohaug 2010). A set of questionnaire constructed by the researcher was used to gather data from the group of respondents. The questionnaire was based on four main sections; namely: Section I- Profile of Respondent
  • 58. The Role Of Human Resource Information System In Effective Workforce Planning 2013 58 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY Section II- Role of HRIS recruitment subsystem in workforce planning Section III- Role of HRIS training subsystem in workforce planning Section IV- Role HRIS succession planning subsystem in workforce planning Questionnaire designed to collect primary data ensuring validity and reliability. Each research question and objective considered and identifying the variables associated with each. Then investigate questions designed to collect most appropriate data (Appendix 2). 3.2.10 Questionnaire validation process A questionnaire is pre-formulated written set of questions to respondents to record their answers and contains close- ended questions and scales to matrix questions (Mellenberg 2008) (Appendix1 – Table 3.9). In designing the context of survey instruments, the rules in item construction with regards to simplicity, clarity and coherence were observed. The researcher constructed questionnaire was shown to colleagues, friends and the managers to determine coherence and clarity of research. Their comments and suggestions were integrated into the preliminary revision of the questionnaire. 3.3 Reliability and Validity of findings 3.3.1 Reliability An alternative method was used to protect the reliability of answer by comparing responses to alternative questions. The research focus on one single capability of HRIS, if the respondent agreed with the first question definitely, he/she need to agree to the second similar question. If the response to the second question is totally different from
  • 59. The Role Of Human Resource Information System In Effective Workforce Planning 2013 59 ESHANK GARG@ OYLMPIA COLLEGE UNIVERSITY OF DERBY the first one, it means that respondent has not understood the questions and that the collected data may be erroneous, which should be cleaned. Questionnaire was emailed on the mid of week which was neither on a ‘high’, looking forward to the weekend, nor on a ‘low’ with the working week expecting to reduce participant error. Participant bias is reduced since respondent has to select only one response, which ranked. The researcher expects the same result to be produced under similar circumstances since reliability was high. 3.3.2 Validity As mentioned earlier, a pilot survey was done with HR experts using semi structured interview. Here I considered the quality of their contribution over quantity within limited time and resources. According to their answers, the questionnaire was fine tuned. Questionnaire was further tested using friends. Therefore, respondents had no problems in answering the questions enabling to obtain some assessment of the question’s validity and likely reliability of the data. There was a remark column in order to add respondent’s comment if they want. 3.4 Ethical Considerations As I have mentioned in first chapter, during the pilot survey stage I conducted three interviews with three experts of HR. I explained the purpose of my research to them clearly and took the appointments. During the interview time, I requested the permission to record the interview. One expert allowed recording the interview. The other two organizations did not give permission to take the electronic devices due to security reasons. Therefore, I could not record those two interviews. I took prior permission to use the data which I gathered for the research. At the same time I got permission to mention the organizations names and interview’s post in the thesis to prove the validity of data. All three- interview answers were taken down with the