Literature Review

Abstract:

Human Resource management experiences immense pressure to be strategic contributors to organisational success and exert the true value of the human resource function. In this endeavour to be more productive, accurate, and competitive, the introduction of Human Resource Information Management Systems (HRIMS) has provided the function with an integrated approach to managing the flow of human resource information throughout an organisation. The significant growth in HRIMS across various companies has created an increased need in understanding the determinants and factors of HRIMS implementation effectiveness, to utilise the sophisticated system to its full potential. Various valid propositions are explored throughout this review drawing from acquired literature, and recognise the recurrent ideas presented as well as the contradictory variances in opinions. It can be concluded through the literature and relevant case study that the determinants traversed are detrimental on HRIMS and organisational success.

Introduction:

Human Resource Information Management Systems (HRIMS) uses information technology, allowing human resources management to collect, store, and analyse data, allowing processes to occur electronically according to Stone (2013), whilst supporting human resource management with various activities. The importance of efficient management of human capital in our knowledge based economy has led many companies to adopt this computerised system. This growing implementation of HRIMS has seen to be directly significant to the human resources function in integrating human resource information into business strategy and leveraging a strategic advantage, however has also presented it with new underlying challenges due to the increasing sophistication of this integration of human resource management and information systems and software. Using literature from a variety of contexts, this review will focus on the different perspectives into HRIMS practice and the key determinants of implementation effectiveness.  

Content:

HRIMS has become a critical tool that has the strategic capacity to assist the human resources function in enhancing their contribution to business strategy and direction. In assessing the effectiveness of HRIMS, there are many factors to be considered in achieving this success through which are explored in various literature. There is a common perception explored by Kristine Dery, David Grant and Sharna Wible in an article in the work and organisational studies, and Sandeep Krishnan and Manjaci Singh in an article in the management and labour studies that argues that the potential and strategic competencies of HRIMS are not being realised or understood. Krishnan and Singh identifies a lack of user knowledge about the features of the systems, as well as difficulty and inadequate computer awareness as a contributing factor to this. As a result, it can be concluded that comprehension of the individual users and their needs should be aligned with relevant training to reap maximum benefits of HRIMS. In Dery, Grant and Wible’s article they describe three main factors and challenges that hinder HRIMS implementation and instead focus on administrative efficiency benefits. These factors include firstly, developing and maintaining organisational and management attention and focus, ensuring management provide commitment and resources needed for implementation, secondly, people management regarding the complexity and functionality of the system, and thirdly, managing acceptance of change and the barriers towards this among users such as managers and employees.