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HRMS: IS THE ROLE CHANGING FROM BEING

ADMINISTRATIVE TOSTRATEGIC?
Goldy Mahajan Prof.Versha Mehta
Research Scholar Professor
The Business School The Business School
University of Jammu University of Jammu
ABSTRACT: Human Resource Management System resource data into a simple task. Computer hardware,
(HRMS) seems to matter for Human Resource Management software, and databases help organizations maintain and
(HRM) in the current digital economy. Many firms transform retrieve human resource records better and simpler. Human
their HRM functions from the manual work processes to the Resource Management System (HRMS) will help
computerized work processes. Information technology is organizations to keep an accurate, complete, updated database
expected to drive Human Resource (HR)'s transition from a that can be retrieved when needed from reports (Gara 2001
focus on Human Resource Management (HRM) to Strategic and Walker 1982). HRMS is defined as a technology-based
Human Resource Management (SHRM). This strategic role system used to acquire, store, manipulate, analyze, retrieve,
not only adds a valuable dimension to the HR function, but and distribute pertinent information regarding an
also changes the competencies that define HR professional organization‟s human resources (Tannenbaum, 1990). It is a
and practitioner success. Interestingly, an HRMS is utilized systematic procedure for collecting, storing, maintaining,
for administrative purposes rather than analytical purposes. retrieving, and validating data needed by organization about
The study focused on the implementation of HRMS in the J&K its human resources, personnel activities and organization unit
Bank and attempts to investigate whether Human Resource characteristics (Kovach et al., 1999). Furthermore, HRMS
Management Systems have reached the strategic potential in shapes integration between Human Resource Management
HR department or not. (HRM) and Information Technology. It merges HRM as a
discipline and in particular basic HR activities and processes
Key Words: Human Resource, Administrative, Strategic, with the information technology field (Gerardine DeSanctis,
System. 1986). As is the case with any complex organizational
information system, an HRMS is not limited to the computer
INTRODUCTION hardware and software applications that comprise the
Many business functions have been transformed due to the technical part of the system but it also includes the people,
emergence of the Internet throughout the world around 1995. policies, procedures and data required to manage the HR
After dealing with accounting, finance, and marketing, many function (Hendrickson, 2003).
companies are shifting their attentions to find a better way of Kovach et al., (1999) presented the three major functional
monitoring their Human Resource Management (HRM). The components in any HRMS by giving the model below:
companies are transforming their HRM functions from
manual workflow to computerized workflow. Computers have
made the tasks of analyzing the tremendous amount of human

Input Data Maintenance Output

The Input function enters personnel information into the communication of decisions and also the reduction of
HRMS. The maintenance function updates and adds new data overhead costs by task mechanisation and process automation
to the database after data have been entered into the so that the number of HR specialists required goes down
information system. The output generated is the most visible (Zuboff 1988).
function of HRMS.
Further HRMS improves shareholder value (Brown, 2002)
As the economies are becoming more knowledge driven and and provides many other benefits such faster information
thereby moving towards more qualified and educated processing, greater information accuracy, improved planning
workforce, it is being increasingly realized that better and program development, and enhanced employee
information makes employees more involved, connected, and communications (overman,1992). All of these benefits
productive. A major source of connect between the employees contribute towards administrative efficiency. It helps to
and their companies is through the information that they reduce HR costs by automating information and reducing the
receive and the feedback that they provide. Information need for large numbers of HR employees by helping
management in general and HRMS in particular, thus, has employees to control their own personal information and by
become a critical factor in managing employee performance. allowing managers to access relevant information and data,
Companies are increasingly realizing the advantage of having conduct analysis, make decisions and communicate with
systems that capture, analyze and report on the host of human others without consulting an HR professional (Awazu &
resource aspects that are critical for running a business and Desouza, 2003; Ball, 2001). Furthermore, lesser people would
share it with the employees so that they self-regulate their be needed to perform administrative tasks such as record
contribution. HRMS is a tool to achieve this objective. HRMS keeping and more time would be made available for HR
can be used as a tool to enhance efficiency of HR information managers to manage at strategic level.
management by increasing the speed of decisions,

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In examining the benefits of HRMS there are two extremes, such as HRMS, cannot be evaluated and analysed without
the pure administrative use of HRMS and its strategic use. having an explicit understanding of the context of individuals
Ultimately the goal of both is to increase organizational value. and groups which consequently comprehend, interpret, use
Administrative HRMS is used in day-to-day operations and it and engage with the technology. The social construction of
is usually in the form of records that hold employee technology (SCOT) approach challenges the idea that
information. Administrative HR is much more efficient when technologies and technological artefacts have a pre-given and
it is used with IT because HR professionals are better able to fixed meaning and in its place argues that the process, design
handle large amounts of information efficiently. For instance, and selection of technologies are open and can be subjected to
Watson Wyatt‟s survey report (2002) concluded that it does contestation (Pinch & Bijker, 1984). Thus a technology is
not take a high progression of e-HR to reach high HRMS seen to be characterised by „interpretative flexibility‟ and
performance on the administrative side. The results showed various „relevant social groups‟ who articulate and promote
that a properly integrated e-HR system is the key to the particular interpretations of it (Dery et al., 2006). In similar
evolution of the system. The survey covered all organization tradition to SCOT approaches, the technologies-in-practice
sizes, and the measures used included productivity approach endeavours to recognise the inability to separate the
improvements within the HR organization, cost reductions, technology from surrounding social relations. Technologies-
return on investment, and enhanced employee in-practice are the structure that is enacted by users of a
communications. Researchers concluded that by properly technology as they use the technology in recurrent ways
implementing an e-HR system an organization would be able (Orlikowski, 2000). It is only when individuals use the HRMS
to reduce the amount of work for which the HR department is that the associated social practices will frame and determine
responsible which would then leave HR professionals free to the value that they attribute to it Hence the process of using a
concentrate on performing more strategic roles for the technology involves users interacting with „facilities‟ (such as
organization. In contrast to administrative HRMS, strategic the properties of the technology artefact), „norms‟ (such as the
HRMS is much more difficult to explain and measure because protocols of using the technology), and „interpretative
there is no way to be sure that the benefits are a direct result schemes‟ (such as the skills, knowledge and the assumptions
of strategic deployment of an HRMS system. Strategic HRMS about the technology as might be positioned by the user)
consists of tools that assist in decision making. For example (Dery et al., 2006). Both of these approaches are important
strategic decisions may include those associated with and useful as they recognise that when considering
recruitment and retaining employees. Much, if not all, of the relationships and experiences with technology, it is essential
administrative information held by HRMS can be used to that social factors and previous experiences be considered.
analyze an organization and formulate strategies to increase Therefore the opinions of respondents can only be understood
the value of an HRMS. Some experts also believe that easy in the context of individuals and groups comprehending,
access to vital information will become an integrated part of interpreting, using and engaging with the technologies (Dery
many strategic decision-making processes (Kovach, Hughes, et al., 2006).
Fagan, Maggitti, 2002). But, the possibilities of strategic
deployment still remain useless without a way of getting HR had missed the strategic opportunity provided by HRMS
there. (Ball 2001). More recent research shows greater use of HRMS
in support of strategic decision making by HR (Hussain et al.,
According to Joseph Collette (2001) the traditional reactive 2007). However, the extent to which HRMS is used in a
staff role of HRMS and HR leaders needs to become more strategic fashion differs across organisations with the vast
proactive and strategic in nature, if HRMS has to be made majority of organisations continuing to use HRMS simply to
successful. Consequently, those leading the HRMS initiative replace manual processing and to reduce costs (Bee & Bee,
must have some key competencies like, strategic vision, hands 2002; Brown, 2002). Recent debates about technology and
on technical skills, HR business acumen, and the ability to organisation have highlighted the importance of social context
influence and negotiate team leadership ability and project and sought to develop frameworks which acknowledge both
management skills. the material and social character of technologies including
HRMS (Dery, Hall, & Wailes, 2006). The top four metrics
SCOPE used in formal business cases supporting HRMS were
This study focused on the implementation of HRMS in the improved productivity within HR organization, cost
banking sector, and J&K Bank zonal office, Jammu has been reductions, return on investment, and enhanced employee
chosen for this purpose. The main questions sought to address communications (Watson Wyatt 2002). In fact, the payback
were e.g. Have human resource information systems reached period, or the time it takes to recoup the investment, may be
the administrative potential of HRIS in HR departments at as short as one to three years (Lego, 2001). HRMS contribute
J&K Bank? Have they reached the strategic goals? The to cost reductions, quality/customer satisfaction, and
research has also attempted to assess the overall satisfaction innovation (Broderick and Boudreau, 1992). HRMS also
of managers with the system. provide HR professionals with opportunities to enhance their
contribution to the strategic direction of the firm. First, by
REVIEW OF LITERATURE automating and devolving many routine HR tasks to line
Within the last decade, the explosion in information systems management, and secondly by providing HR professionals
related literature confirms that information technology, its with the time needed to direct their attention towards more
implementation, use and benefit is a very well researched area business critical and strategic level tasks, such as leadership
in organizational studies (Robinsson, 1997). Early surveys development and talent management (Lawler et al., 2003).
suggested that HRMS were used predominantly to automate HRIS provides an opportunity for HR to play a more strategic
routine tasks and “to replace filing cabinets”. (Martinsons, role, through their ability to generate metrics which can be
1994). Accordingly, theories which can be considered as used to support strategic decision making .The existing
„social constructivist‟ can play an important role in the study literature on HRIS suggests that they have different impacts
of technology as they explicitly recognise that technologies, on HR across organisations but provides little explanation for

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this variation (Hendrickson, 2003; Lawler et al., 1. To study the administrative potential of HRMS in HR
2004;Lengnick-Hall et al., 2003). Computerized HRMS department in J &K Bank.
function enable, faster decision making, development,
planning and administration of HR because data is much 2. To study the strategic goals of HRMS.
easier to store, update, classify, and analyze (Sadri and 3. To study the perceptions related to strategic impact of
Chatterjee 2003). Moreover, while it may be possible to HRMS in J&K Bank.
identify many of the relevant costs (e.g., software and
hardware), it is more difficult to quantify the intangible 4. To assess the overall satisfaction level of managers viz a
benefits to be derived from an HRMS system. Beyond cost viz the HRMS system.
reductions and productivity improvements, HRMS potentially RESEARCH METHODOLOGY
and fundamentally affect revenue channels. However,
establishing direct and objective benefits measures is more A survey was developed and sent to the Human Resource
difficult to achieve. Ngai and Wat (2004) in their article, personnel in the J & K Bank. Approximately 40
„Human resource information systems: a review and empirical questionnaires were sent and 30 usable questionnaires were
analysis‟ Ngai et al., (2004) presented a comprehensive received. Likert-type items on a five point scale and open-
literature review of human resource information systems and ended questions were employed on the survey to measure the
reported the results of the survey on the implementation of perceptions of the HR personnel in regard to the impact of the
HRMS in Hong Kong. They also aimed at examining the use HRMS on HR processes, the time spent on various HR
and applications of HRMS. Moreover, the purpose was also to activities, the expense of HR activities, levels and use of
identify the perceived benefits of, barriers to, and information within the organization, the role of the HR
implementation of HRMS. department, and strategic decision making. While previous
research has assessed satisfaction with and the amount of
Hussain et al., (2006) studied „the use and impact of human usage of HRMS systems (Haines and Petit, 1997) and the
resource information systems on human resource management types of applications for which HRMS is used (Elliott and
professionals‟. The aim was to assess and compare the Tevavichulada, 1999; Ball, 2001), few if any empirical studies
specific areas of use and to introduce a taxonomy that have addressed the issues of concern in the current study. The
provides a framework for academicians. They also sought to items on the survey were generated based upon suggestions
determine whether HRMS usage was strategic, a perceived developed from review of the previous literature in general,
value-added for the organization and its impact on and Watson Wyatt (2002) and Feigenbaum (1983) in
professional standing for HR professionals. The researchers particular with regard to costs.
used two techniques to investigate the IS impact on HRM.
Both a questionnaire survey and in-depth semi-structured RESULTS
interviews were used. While the former was used to obtain
This research was exploratory and primarily descriptive in
responses from HR professionals in the UK organizations, the
nature. Mean scores has been used to measure favourable
latter targeted a small number of senior executives, such as
responses to a series of questions assessing perceptions of
directors, in order to gain deeper insights into emerging
Respondents towards HRMS. The results of the survey have
issues. In the research „The use and impact of Human
been depicted in Tables 1 to Table 7. The items have been
Resource Information Systems on Human Resource
divided into various categories concerning satisfaction with
Management professionals‟, it has been showed that few
the HRMS (Table 1); the impact of the HRMS on HR
differences existed between Small/Medium (SME) and large
processes (Table 2); time savings due to the HRMS (Table 3);
company HRMS‟ usage, and that specific use of HRIS for
the effect of the HRMS on expenses (Table 4), information
strategic collaboration enhanced professional standing
(Table 5), and decision-making (Table 6); and the strategic
(Hussain et al., 2006).
impact of the HRMS and the impact of the HRMS on the role
OBJECTIVES of the HR function in the organization (Table7).

Table 1
(Satisfaction with the HRMS)
Item Mean
score
Overall I am satisfied with the HRMS. 3.85
The employees of human resource (HR) department 4.14
seemed to be satisfied with our HRMS.
Our HRIS has met our expectations. 3.42
Our HRIS could be better utilized. 2.09

As can be seen in Table 1, the HR personnel seemed to be, in (m=4.14). An often overlooked implementational issue is
general, overwhelmingly pleased with the HRMS. On an getting staff to accept a new system (Kovach, Hughes, Fagan,
average they were satisfied with the system (m=3.85), and and Maggitti, 2002), so this obstacle appears to have been
believed that their HR employees were satisfied also overcome in this instance. However, while they and their

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employees were satisfied with the system, the majority of the even though the HR employees were mostly satisfied with the
employees believed that it could be better utilized (m=2.09) system, they did not perceive that it had much impact on
and few responded that it had met their expectations recruitment, training, or forecasting of staffing needs, with
(m=3.42). only a few respondents indicating a positive effect in these
areas. There was, however, a somewhat more positive view of
Targowski and Deshpande (2001) and others have suggested the effect on data input and data maintenance, with (m=3.85
that part of the utility of an HRMS is its positive impact on and 3.90) of respondents, respectively, agreeing that these
traditional HR processes such as recruitment, selection and
processes had seen improvement due to the HRMS.
training and development. However, Table 2 indicates that,

Table 2
(HR Processes)
Item Mean
score
Our HRMS has improved the recruitment process (RP). 3.66
Our HRMS has improved the training process (TP). 3.76
Our HRMS has improved the data input process (DIP). 3.85
Our HRMS has improved the data maintenance process (MP). 3.90
Our HRMS has helped with forecasting staffing needs (FSN). 3.57
Our HRMS has decreased paperwork (DP). 3.42

One of the general purported benefits of HRMS applications communicating information within the institution. At least
is to reduce time spent on administrative processes (Kovach half of the respondents, however, believed that their
and Cathcart, 1999; Targowski and Deshpande, 2001) and yet institution had realized some savings in the time spent on
the results show that the effects of the HRMS on time savings correcting errors. There was, however, a somewhat more
are mixed (see Table 3). Again, the traditional HR tasks of positive view of the time spent on processing paperwork with
recruiting, training, and staffing were not positively affected, (m=3.80).
as there was little or no perceived decrease in the amount of
time spent on these activities or on the time spent

Table 3
(Time Savings)
Item Mean
score
Our HRMS has decreased the time spent on recruiting (TR). 3.33
Our HRMS has decreased the time spent on training (TT). 3.23
Our HRMS has decreased the time spent on making staff decisions (TSD). 3.33
Our HRMS has decreased the time spent on inputting data (TID). 3.57
Our HRMS has decreased the time spent on communicating information 3.52
within our institution (TCI).
Our HRMS has decreased the time spent on processing paperwork (TPP). 3.80
Our HRMS has decreased the time spent on correcting errors (TCE). 3.42

One of the proposed advantages of human resource perceived effects of the HRMS were negligible. Few, if any,
information systems is that processing costs should be of the HR employees perceived any decreases in training,
reduced (Kovach and Cathcart, 1999). Regarding cost recruiting, data input or hiring expenses or in the amount
reductions for J&K Bank, as can be seen in Table 4, the spent on HR salaries.
Table 4
(Cost Savings)

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Item Mean
score
Our HRMS has decreased cost per hire (CH). 3.19
Our HRMS has decreased training expenses (TE). 3.23
Our HRMS has decreased recruiting expenses (RE). 3.38
Our HRMS has decreased data input expense (DIE). 3.42
Our HRMS has decreased the overall HR staff‟s salary expense (SE). 3.33

Kovach, Hughes, Fagan, and Maggitti (2002) suggest that the information generated by the HRMS with top administrators
HRMS will become the mechanism for sharing information (m=3.28). However, few of them believe that the information
across the functional area of an organization. But the generated by the HRMS in not fully utilized by the top
information effects of HRMS were negligible As Table 5 administrators (m=3.04) and think that the HRMS has
reveals, few HR personnel‟s believe that the HRMS has enhanced coordination between the HR department and the
improved their ability to disseminate information (m=3.57) administrators (m=3.33). Finally, some believe that the
and a mean score of 3.52 showed that it has also increased the information generated by the HRMS results in value added to
amount of useful information, while some of them share the organization (m=3.38).

Table 5
(Information effect)
Item Mean
score
Our HRMS has improved our ability to disseminate information (DI). 3.57
Our HRMS has provided increased levels of useful information (II). 3.52
The information generated from our HRMS is shared with top administrators 3.28
(STA).
The information generated from our HRMS is underutilized by top 3.04
administrators (UTA).
The information generated from our HRMS has increased coordination between 3.33
HR department and top administrators (CHRTA).
The information generated from our HRMS has added value to the institution 3.38
(AVI).

The functions provided by HRMS that allow for the type and the results contained in Table 6, however, the HRMS appears
amount of the information provided to top management and to have little effect on decision making. Fewer than half of the
the effectiveness of the HR department to make better HR employees perceived that HR decision making had
decisions are important in research of the system (Lengnick- become more effective (m=3.28), and there has been positive
Hall and Moritz, 2003). A general purpose of an HRMS is to impact of HRMS on decisions concerning promotion and
provide decision support applications that help HR and non- timing of hiring with m=3.47 and 3.23 respectively. Few
HR managers, as well as employees, make better decisions respondents perceived that the system did aid in making
and the key is to make better decisions rather than simply decisions concerns when training and skill development are
produce data faster (Kovach and Cathcart, 1999). Based on necessary (m=3.52).

Table 6
(Decision making)

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Item Mean
score
Our HRIS has made our HR decision-making more effective (DE). 3.28
The information generated from our HRMS helps our institution decide 3.52
on employee raises (DER).
The information generated from our HRMS helps our institution to 3.47
make more effective promotion decisions (EPD).
The information generated from our HRMS helps our institution decide 3.23
when to hire (DH).
The information generated from our HRMS helps our institution make 3.47
better decisions in choosing better people (BP).
The information generated from our HRMS helps our institution decide 3.52
when training and skill development are necessary (DTSD).

HRMS has been envisioned as having a substantial impact on Maggitti, 2002). Regarding the strategic impact, few
the importance of human resource departments, leading to a responded that the administrators thought the HRMS helped
more strategic/managerial role and contributing to the them to meet strategic goals (m=3.52) and some of them
organization‟s competitiveness, as well as creating new paths believed that it had improved the strategic decision making of
for HR to add value to the organization (Lengnick-Hall and top administrators (m=3.38). Finally, a mean score of 3.38
Moritz, 2003). However, HR personnel did not perceive that showed that it had aided in the promotion of the institution‟s
the HRMS had a positive impact on the role of the human competitive advantage.
resources department in the organization, with m=3.33 and
3.33 respectively, agreeing that the HR department had
become more important and had become more of a strategic
partner in the institution. As early as the mid 1990‟s the focus
of HRMS had begun to shift because of its usefulness in
strategic decision making (Kovach, Hughes, Fagan, and
Table 7
(Strategic impact and HR’s Role)

Item Mean score

Our HRMS has made the HR department more important to the 3.33
institution (II).
Overall our administration thinks that HRMS is effective in meeting 3.52
strategic goals (ESG).
The information generated from our HRMS has improved the strategic 3.38
decision making of top administrators (ISDM).
The information generated from our HRMS has made HR a more 3.33
strategic partner in the institution (MSP).
Our HRMS has promoted our institution‟s competitive advantage (PCA). 3.38

CONCLUSION
Based on a sample of HR personnel, the results concerning for J&K Bank, the perceived effects of the HRMS were
the role of HRMS in a J&K Bank are encouraging, but mixed. negligible. However, while the managers and the employees
One of the general purported benefits of HRMS applications of J&K were satisfied with the system, the majority of the
is to reduce time spent on administrative processes (Kovach respondents believe that it can be better utilized and only
and Cathcart, 1999; Targowski and Deshpande, 2001) and yet some of them responded that it has met their expectations.
the results show that the effects of the HRMS on time savings The processes have seen improvement due to the HRMS. But
are mixed. Again, the traditional HR tasks of recruiting, the information effects of HRMS have been negligible the
training, and staffing were not positively affected, as there HRMS appears to have had little effect on decision making.
was little or no perceived decrease in the amount of time spent Fewer than half of the HR respondents perceived that HR
on these activities or on the time spent communicating decision making has become more effective, and perceived
information within the institution. Regarding cost reductions that the system does aid in making decisions concerns when

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training and skill development are necessary. As the main Management effectiveness as determinants of firm
focus of the study is to see whether role of HRMS has been Performance. Academy of Management
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