1. Introduction The Indian Banking Sector is quite different from the banking system in the rest of Asia, because of the distinctive geographic, social and economic characteristics of the countr...
Full description
Technology has taken a big role in all aspects of human life. From the way we work, to the way we spend time to having fun, technology has changed everything including the way humans to run banking activities. The existence of a bank has a large func
we choose six banking industry listed in bursa to analysis. The banking is Public Bank, BIMB Bank, Maybank, RHB Bank, CIMB Bank, and Am Bank. For the six this banking we analyze about mission state...
Full description
HACCP (Hazard Analysis Critical Control Point) was a preventive system concerned with food safety. This system has become a necessary for transactions involving food products. The purpose was to se...
Savings and investments are the most important ingredients of capital formation for an economy therefore, the promotion of domestic savings is a must to boost the process of capital formation and development. The commercial banks are in the nature of
Full description
Critical Success Factors and SAP ASAP
Vietnam Banking IndustryFull description
Describes the types of banking that are available in the banking sector and the types and categorization of customers. Useful for banking exams and common knowledge of banks.Full description
Full description
Case on Study of Merger and Acquisition in Banking Industry ICICI Bank Ltd
npaFull description
1
Integrated HRIS – Benefits and Implementation of HRIS in Banking Industry
Submitted By: AnandKumar Gopalakrishnan
Abstract
Human Resoures information is the most !ital information for any organi"ations# Human Resoures Information system $HRIS% an play an important part in banks HR funtion# Implementing an effeti!e HRIS in banks an help HR to stay on the utting edge in its bid to deli!er more effeti!e and streamlined ser!ie# &his study fouses on the role' benefits and the implementation implementation of HRIS in banking setor# Referene to !arious (ournals' artiles' and books arried out to identify the researh results# A strutured format )as used u sed to ollet data from HR *epartment' Reruiters' Hiring +anagers' HR Representati!es' ,ayroll and Benefits
-apstone ,ro(et
.
administrators' Soft)a Soft)are re /ngineers and net)ork administrators# Also' !arious )ebsites and HRIS !endor sites are referred to get the results# &he results of this sur!ey identified the need for integrated HRIS in banking setor and its speifi benefits of using in international banking operations and as a strategy deision tool# &his study sho)s that HRIS needs to offer more intelligent apabilities to inrease the effeti!eness of HR planning# HRIS !endors need to )in the trust of HR professionals through enrihing features and inreasing the a)areness and usage of HRIS in HR planning' espeially its effeti!eness# &his sur!ey also also helped to point the integration integration points to merge merge other related proess like ,ayroll' benefits' benefits' &im &imee and 0abor' ,erformane ,erformane appraisal appraisal et# to HRIS system#
Acknowledgment
+y sinere thanks go to my mentor and professor *r# Adam +arks' for his !aluable ad!ie' suggestions suggestions and the support during d uring the researh of this paper# I )ould like to etend my deepest gratitude to the group of people from my employ employer2s er2s HR department and friends those )ho )orking in HR systems' helped shape this researh as it progressed#
1#3 Signifiane of the study:####################################################################################################### 1#4 6utline of the researh:########################################################################################################## -HA,&/R .: 0iterature re!ie):###################################################################################################1; .#1 < Historial *e!elopment of HRIS#######################################################################################1; .#. < =eed for HRIS in banking industry:##################################################################################11 .#8 < Benefits Benefits of using using integrated HRIS in banks:####################################################### banks:################################################################### ###############13 ###13 .#3 < HRIS in International Banking:#########################################################################################1> .#4 HRIS in banking industry of de!eloping ountries:#############################################################.. .#5 < HRIS effets on strategi planning and deisions in banking industry:##############################.3 .#>: ?untions of HRIS HRIS in banking setor:############################ ############################################ ########.> ######## .> .#>#1 < /mployee Information:###############################################################################################.7 .#>#. < Reruiting and Hiring:################################################################################################.7 .#>#8 < /mployees ,ayroll system:#########################################################################################. .#>#3 – /mployee Benefits: Benefits: $/BIS – /mployee Benefits Benefits Information Information System%####### System%############## ########### ######8. ##8. .#>#4 < &ime and Attendane:#################################################################################################88 .#>#5 < /mployee Self ser!ie $/SS%:#####################################################################################83 .#>#> < ,erformane +anagement:#########################################################################################84 .#>#7 < &raining &raining and *e!elopment:###################################################### *e!elopment:###################################################################################### ################################ ###85 .#7 < -orporate Go!ernane < HRIS and @#S 0a)s:#################################################################87 .#7#1 – HI,AA – $Health Insurane ,ortability and Aountability At%################################87 .#7#. – Sarbanes<6ley At:###################################################################################################8 .#7#8 < ?air -redit Reporting At $?-RA%#############################################################################3; .#7#3 < /letroni ?und &ransfer &ransfer At:############################################################################### ######31 ###### 31 .# – HRIS data model:#############################################################################################################31
-apstone ,ro(et
3
-HA,&/R 8: *esription of the researh design design used################################################################ ##38 8#1 Researh uestions:##############################################################################################################38 8#. *ata olletion methods and proedures:############################################################################33 8#8 *ata Analys Analysis: is:################################################# ################################################# ######################################################## ######################################################################33 ##############33 -HA,&/R 3: *isussion *isussion findin findings gs and reommendations#############################################################34 reommendations#############################################################34 3#1 – Researh uestions and its findin findings:############################################################################## gs:############################################################################## ####37 -HA,&/R 4: Summary and -onlusion:######################################################################################4; Referene:######################################################################################################################################41
List of acronyms acronyms
/BIS
:
/mployee Benefits Information System
/?&A
:
/letroni ?und &ransfer At
/S S
:
/mployee self ser!ie
?-RA
:
?air -redit Reporting At
H-+
:
Human -apital +anagement
H-=
:
Host<ountry nationals
HI, HI,AA:
Heal Health th Insu Insura ran nee ,ort ,ortab abiility ity and and Aou ount ntab abiility At
HR
:
Human Resoures
HRIS
:
Human Resoures Information System
-apstone ,ro(et
4
HR+
:
Human Resoures +anagement
IS
:
Information Systems
I&
:
Information &ehnology
,-=
:
,arent<ountry nationals
S6
:
Sarbanes<6ley At
&-=
:
&hird<ountry nationals
CHAPTER 1: Introduction
Human Resoures +anagement $HR+S% and Information &ehnology $I&% are t)o eyes of e!ery organi"ation# Almost all ompanies use HR and I& to some etend to ahie!e their ob(eti!es# &he business need for effeti!e Human resoures system is gro)n tremendously tre mendously o!er the past years' so it2s it2s important important for banks to understand ho) the integrated HRIS an help to address the gro)ing demand# &here is an inreasing reali"ation that for organi"ational sur!i!al and gro)th in a ompetiti!e en!ironment' human resoure is the most ritial resoure# &his insight dri!es the urrent inuiry into one of the prinipal le!ers of modern human resoure management identified as Human Resoure Information Info rmation System in banking setor# &his researh begins )ith the bakground of the study' the ob(eti!e ob(eti!e and a snapshot desription desription of the struture of this presentation#
-apstone ,ro(et
5
1.1: Research background: background:
Banking setor has been instrumental for the eonomi de!elopment of a nationC reently the banking banking ati!ities ati!ities )orld)ide are undergoing undergoing rapid rapid di!ersifi di!ersifiation# ation# &o &o maintain maintain the status in in urrent eonomi en!ironment' it is essential for all banks to onentrate on their tehnologial ad!anement# Before the de!elopment of omputer tehnology' banks )ere using the paper based system' but the management of HR information is ne!er easy )ith manual and paper based system and it took tremendous time and effort effort to retrie!e' manage and integrate HR data# In reent times' the finanial and non
-apstone ,ro(et
>
of suh tasks as identifying and traking ontats )ith appliants' maintain essential data on the status of eah employee in the ompany' and in general make the proess of Human Resoures management muh easier to maintain# HRIS an also kno)n as HR+S $Human Resoures +anagement System% and H-+ $Human -apital +anagement%# &he differenes )ith HRIS' HR+S and H-+ are usually the preferene of the appliation pro!ider# 6!erall' HRIS is refers to the industry )hile HR+S and H-+ are usually more representati!e of the systems# An HRIS helps an organi"ation plan and manage the intake' lassifiation' staffing' orientation' ompensation and benefits administration' deployment' performane management' employee and labor relations' de!elopment and ompeteny of its )orkfore through effeti!e information management' reporting and analytis# Banks ontinuously in!est substantial amounts of funds for information system system to reah ompetiti!e ad!antage in the market# Ho)e!er' Ho)e! er' if they in!est )ithout identifying the urrent !alue and limitations' they may not reah the goal in this rapidly hanging business# HRIS is one information system in )hih banks should in!est intelligently# +ost of the nationali"ed banks spend large money on HRIS' but unfortunately' many of them utili"e it (ust for human resoure $HR% administrati!e purposes rather than for effeti!e and effiient human resoure planning' beause most of them don2t reali"e the benefits and ontribution of HRIS into banking business# &o make a human resoure department more effeti!e and effiient ne) tehnologies are no) being introdued on a regular basis so make things muh simpler and more moderni"ed# 6ne of the latest human resoure tehnologies is the introdution of a Human Resoures Information System $HRIS%C this integrated system is designed to help pro!ide information used in HR deision making suh as administration' payroll' reruiting' training' and performane analysis# &his study aims to find out the ontribution and benefits benefits of HRIS in human resoure planning planning throughout reruitment' seletion' seletion' training training and de!elopment de!elopment for entire banking setors# It attempts a ttempts to eamine eamine ho) HRIS used in International
-apstone ,ro(et
7
banking banking and strategi tool for deision deision making# making# &his &his also also outlines outlines the funtions funtions used in the integrated HRIS system# system#
1.2: Research Obecti!e:
&he ob(eti!e of this study is to present a omprehensi!e literature re!ie) of HRIS and eplores the benefits and implementation of fully integrated HRIS for banking industry# It is !ery essential for banks to understand the benefits of HRIS before they in!est any time' money and effort for this# *ue to the ompleity of the HR and related funtions' implementing an effeti!e HRIS system is !ery omple proedure# Banks needs to ha!e a !ery lear understanding on eah HR proess and its related ati!ities to identify the orret integration points to get the maimum out of the system# Also understanding the benefits of HRIS )ill help banks to estimate the return on their in!estments# &his pro(et )ill help the banks to identify all the HR proess and its integration points to ommuniate )ith other systems# &his )ill further help banks to reate a single integrated integrate d system to onnet onne t other non finanial ati!ities to inrease the produti!ity# &he ma(or intention here is to help the banks to redue the administration tasks so they an spend more time on their important business funtion# &his )ill inrease the ompliane beause of the use of standard' best pratie and adherene to poliy# &his study defines HRIS and eamines the urrent researh and proposes an implementation model to integrate the different human resoures proess into single single manageme management nt system# system#
1." Research #oals $ %enefits:
&o in!estigate the o!erall ontribution of HRIS and its integrated sub systems to the banking banking industry industry##
&o in!estigate the implementation options of HRIS in banking industry
-apstone ,ro(et
1.& 'ignificance of the study:
Human Resoures +anagement $HR+S% and Information &ehnology $I&% are t)o eyes of e!ery organi"ation# Almost all ompanies use HR and I& to some etend to ahie!e their ob(eti!es# Also' the business use of tehnology has gro)n tremendously o!er the past years# &here are lots of ne) inno!ations and ad!anement in tehnology is adding more benefits to organi"ation those )ho effeti!ely use them# Integrating' HR and I& an be omple' espeially in banking banking that use it to a large degree# A number of !endors supply HRIS soft)are to the market under different names and pries# Banks spend substantial amounts to auire HRIS soft)are# After a )hile' they suffer )hen they try to align the a!ailable HRIS funtionalities )ith HR planning# planning# It is time time to ondut a proper prop er study to find out ho) HRIS ould ontribute to HR in banking banking industry industry other than as a means of failit failitating ating adminis administrati!e trati!e matters# matters# &his study )ould not only fill the eisting kno)ledge gap in researh studies' it )ould also enourage banks to understand the importane and benefits benefits the integrated HRIS an ontribute to their suessful suessful operations#
1.( Outline of the research: Cha)ter 1: *ntroduction: It onsists of the study bakground' the researh ob(eti!e' and the
researh methodology# &his )ill gi!e a snapshot of the sub(et matter and the premise of the study# Cha)ter 2: Literature Lit erature re!iew: re!iew: &his hapter analyses the eisting studies and findings under
different different topi# &opis like like history of HRIS' need for HRIS in banking' HRIS benefits in banking' role of HRIS in international banking' HRIS as strategi tool' ?untions of HRIS and help of HRIS )ith orporate go!ernane are analy"ed analy"ed and re!ie)ed#
-apstone ,ro(et
1;
lays out the oneptual Cha)ter ": +escri)tion of the research design used: &his hapter lays frame)ork frame)ork of the thesis# Researh approah' methods and strategy are seleted onsidering onsidering the alternati!e ations# -oneptual frame)ork is de!eloped identifying the !ariables' their relationships# relationships# Selet Selet the appropriate statistial methods methods that an be used to analy"e analy"e the data# Cha)ter &: +iscussion of findings and recommendations: &his hapter summari"es the
findings of the study and highlights the future areas of the researh# Cha)ter (: 'ummary and Conclusion: &his hapter summari"es this study paper and
onlusion onlusion about the sub(et#
C,A-TR 2: Literature re!iew: re!iew:
2.1 / ,istorical +e!elo)ment of ,R*'
&he HRIS started in late 15;s as firms firms started on!erting on!erting the employees employees personal reords form hardopy to punhed form to omputer storage# /arlier days' mainframe systems are used to reate' store and retrie!e human resoures data and it made it possible to produe personal information muh more uikly than manual hardopy system# +ohan et al#$1;% present their oneption of the de!elopment of HRIS introduing the historial eras in HR from the pre
-apstone ,ro(et
11
HRIS intert)ined )ith de!elopments of I&# I&# In the de!elopment of eletroni ser!ies suh as e< learning' e<ommere and e
2.2 / 0eed for ,R*' in banking industry:
Banking is highly ompetiti!e industry# &he key to suess in banking industry is' ha!ing best human resoures# In fat' resoures and apabiliti apabilities es are the t)o important fators that determine the suess of this industry# In banks' the uality and the amount of produti!ity mainly depends on the skill and the kno)ledge of its employees# As )e kno)' banks don2t manufature any produtsC rather they offer !ariety of ser!ies to its ustomers# It2s the people )orking for the banks produe these ser!ies' ser!ies' so it2s it2s !ery !ery essential essential for banks to ha!e a right set of people to handle all the business transations# Also' banks stores sensiti!e personal information about their ustomers and lients# Bank employees' from eeuti!es to tellers' must ha!e a higher le!el of integrity and trust)orthiness than any other industry employees' making the role of HR in banking that muh more important# Also' (obs in other industry do not really reuire a thorough bakground hek' but any (ob in in a banking banking industry industry definite definitely ly does# Human resoure departments in banks must go the etra mile to uno!er the riminal and finanial history of (ob appliants' for the safety of their lients lients and their organi"ation organi"ation as a )hole# In o rder to perform these tasks and to ha!e a right set of people' banks hea!ily dependent on their HR department# It2s the HR team that hires' moti!ates' and de!elops the people that offer the banking ser!ies# &#Srini!as $.;;5%
-apstone ,ro(et
1.
mentioned' the need of the HRIS in the banking industry has ontinuously gro)n beause of the effeti!e role they are playing in the soio
HR )ill make sure business hires best people for suitable (obs#
HR )ill help pro!ide reuired training and de!elopment for all employees to satisfatorily perform their (ob#
Eery importantly' HR )ill make sure the highly ualified resoures don2t lea!e the bank and retain as muh resoures and effeti!ely utili"e them for business#
Dorking )ith other di!isions suh as legal and ompliane to help set ompany rules < and in some ases ommuniating those rules to staff
/nsuring employees are treated fairly' that they kno) )hat their rights are' and that there are measures in plae )hen something goes )rong
Helping to de!elop people strategies to meet the goals of different parts of the business#
&imely issuing pay heks and other monetary benefits to employees
&aking are of employee2s safety' health and medial insurane and employee relation#
Earious other tasks like employees performane appraisal' promotions' transfer all handled by HR#
In order to perform these tasks in HR department' banks reuire an effeti!e effeti!e system system to store' retrie!e and manipulate all all HR data# Here is the plae HRIS oming to piture# Human Resoure Information System $HRIS% is a onept )hih utili"es the de!elopment of Information &ehnology for effeti!e management of the Human Resoure funtions and appliations# HRIS enables systemati proedure for olleting' storing' maintaining' and reo!ering data reuired by
-apstone ,ro(et
18
the bank about their human resoures' personnel ati!ities and organi"ational harateristis# It auires stores' manipulates' analy"es' retrie!es' and distributes information about an organi"ation2s human resoures# &he need of HRIS in banking setor is mainly due to follo)ing reasons# 1% &he need need of apable apable manager managerial ial manpo)er manpo)er## .% &he greater need in in the the future inrease inrease the the ompetition for a!ailabl a!ailablee talents talents 8% &he ontinued ontinued gro)th gro)th and de!elopment de!elopment of banki banking ng busin business ess## 3% &o ope ope )ith )ith legal legal and soial soial demands# demands# 4% &o integrat integratee the human human resoures resoures data# In reent times' the finanial and non
2." / %enefits of using integrated ,R*' in banks:
A fe) sholars ha!e studied the impat of human resoures and HRIS benefits in the banking banking industry industry'' but these studies ha!e ha!e important important methodologial limitati limitations# ons# Ann Ann ,# ,# Bartel $.;;4% noted a sur!ey in his artile about the senior human resoures eeuti!es in @#S banks in order to obtain information on the human resoures polies and HRIS system used by the banks#
-apstone ,ro(et
13
&he researh results that
HRIS merges banks human resoure management )ith information tehnology to deision making proess and aid in omple negotiations that fall under the human resoure umbrella#
HRIS pro!ides omprehensi!e information as a single' integrated database and this enables banks to pro!ide strutural onneti!ity onneti!ity aross units and ati!it ati!ities ies and inrease inrease the speed of transations#
HRIS maintain maintain an up to date aount of the deisions that ha!e been made or that need to be made as part of a human resoure management management plan#
-apstone ,ro(et
14
HRIS permits bank employees and other users of the system to see online a hronologial history of an employee from his 9her position data' to personal details' payroll reords' and benefits benefits informat information# ion#
By using a $HRIS%' the human resoure department is able to keep better trak of )hih benefits benefits are being being a!ailed a!ailed by )hih employee employee and ho) eah employee employee is profiting profiting from the the benefits benefits pro!ided#
HRIS )ill help to impro!e employee satisfation by deli!ering HR ser!ies more uikly and aurately#
At the maro le!el' HRIS is ritial for effeti!e planning and budgeting of banking operations# /fforts an be made to de!elop the reuired skills and ompetenies among the human resoures pool to meet the reuirements by alloati alloating ng adeuate budgets on the basis of their epeted optimum optimum use#
HRIS )ill help HR to transition from an administrate department to a strategi management management department#
By using the HRIS' banks an easily integrate their other non finanial ati!ities like employee payroll' benefits' time and labor' reruiting and hiring# &his )ill enable the HR to perform all all the tasks effeti effeti!ely !ely and effii effiientl ently y#
HRIS and its sub systems like payroll automates the entire payroll proess by gathering and updating employee payroll data on a regular basis# It also gathers information suh as employee attendane' alulating !arious dedutions and taes on salaries' generating automati periodi payheks and handling employee ta reports# Dith updated information this system makes the (ob of the HR department !ery easy and simple as e!erything is a!ailable on a .3> basis' and all the information is (ust a lik a)ay#
-apstone ,ro(et
15
HRIS are seen to failitate the pro!ision of uality information to bank management for informed deision
HIS is the fastest )ay to perform reporting for HR data# A speial method of aessing reports is employed# A graphial display enables the bank HR resoures to selet the ob(et to be reported on and then start reporting )ithout entering data in a seletion seletion sreen#
HRIS )ould render flo) of information and data faster and it leading to faster appraisal and deision making# &his )ould enable banks to make redit management more effeti!e besides besides leading leading to an appreiable redution in transation transation ost#
?urther HRIS )idely used to pro!ide follo)ing benefits#
&o pro!ide impro!ed budget management
&o gain more effiient use of resoures
&o de!elop optimi"ed fit bet)een I& system and ompany
&o de!elop systemati and effiient methodology
&o build moral )ith in the ompany
&he onept of a HRIS in banking en!ironment is to keep trak of rele!ant information ompany )ide related to paying all employees# A 'ummary of the ey Offerings of ,R*'
/mployment appliant traking ,roess of hiring /mployee /mployee ontat on tat details *ependent Information /mployee /mployee /duation /du ation and *e!elopment *e!elopment /mployee )ork eperiene /mployee skills &erminations' &erminations' rehires re hires
Re!ie)s Re!ie)s for )ork progress ,ay Rate history ,ay Rules Dork Dork Rules Ru les Hours Dorked Regular Hours 6!er &ime -onsultant hours Benefit Hours
-apstone ,ro(et
1> Bonuses &aes ,erformane appraisal
/ligibility /ligibility programs progr ams for benefits +andatory benefits Eoluntary benefits +edial and 0ife Insurane /mployee safety /mployee and infrastruture seurity
/mployee self ser!ie +anagement self ser!ie &ra!el and 0ogistis Administrati!e reports *eision making tool Go!ernment ompliane Industry ompliane Table 1
2.& / ,R*' in *nternational %anking:
In the last three deades' there has been substantial liberali"ation of the banking setor and finanial inno!ation# &hese hanges ha!e been failitated by reregulation of banks' )hih ontinue to lie at the heart of all finanial systems' and ha!e themsel!es dri!en hanges in prudential' and monetary' regulation poliy# &he banking and )ider finanial markets are rapidly being globali"ed# &he proess started in the 1>;s )ith the internationali"ation of banking# &he need for international banking iiss gro)ing tremendously# tremendo usly# In the urrent business en!ironment' banks are fored to operate in global global market to ahie!e their their target profit# *ue to this globali"at globali"ation' ion' banks are opening their ne) branhes and business in foreign ountries# Hiring )orkfore and retaining the human resoures in foreign land is not an easy option# Banks needs to ha!e !ery solid system in plae to o
-apstone ,ro(et
17
Diks $.;1;% pointed in his artile about the use of HRIS in international operation# &his )ill !ery muh appliable in international banking operations# Remaining Com)etiti!e: HR deision making in!ol!es de!eloping poliies and strategies
that )ill keep a business ompetiti!e in a utthroat global business en!ironment# HR praties in international business are e!ol!ing suh that only the most ompetent and sustainable HR praties sueed# In making making deision deisionss about the manpo)er needs of the bank2s bank2s global global operations' operations' HRIS and its related subsystems plays a !ital role and using this )ould de!elop a ne) trends in international business HR praties )ithin their banking operations# Local Ada)tation: 0oal adaptation entails molding banking operations )ith respet to
the !alues and ultures of an area# Businesses )ith international operations fae the hallenge of loali"ing operations )ith regard to the HR praties of loal personnel# In this ase' HRIS system an help the HR manager is to make deisions about ho) best to streamline the loal orporate ulture of a subsidiary )ith the orporate ulture of the parent ompany# *eision making on loal adaptation ensures that the parent ompany and subsidiaries maintain the same le!els of uality in areas suh as reruitment' performane management and training# HRIS system makes this possible# A researh paper by +organ $175% on the de!elopment of international HR+ is helpful in understanding HRIS role in International banking# He presents a model of international HR+ that onsists of three dimensions#
-apstone ,ro(et
1
igure 1
+organ $175% lassifies the three broad human resoure ati!ities of prourement' alloation' and utili"ation# &hese three broad ati!ities an be easily epanded into the ma(or si HR ati!ities $Human resoure planning' Staffing' ,erformane management' &raining and de!elopment' de!elopment' -ompensation and Benefits' Benefits' 0abor relations%# relations%# &he three national or ountry ategories in!ol!ed in international HR+ ati!ities: $1% the host<ountry )here a subsidiary may be loated' $.% the home<ountry )here the firm firm is is headuartered' and $8% 6ther< ountries that that may be the soure of labor or finane# &he three types of employees of an international firm: $1% host<ountry nationals $H-=s%' $.% parent<ountry nationals nationals $,-=s%' and $8% third<ountry nationals $&-=s%#8 &hus' for eample' Bank of Ameria employs Australian iti"ens $H-=s% in its Australian operations' often sends @#S# iti"ens $,-=s% to Asia<,aifi ountries on assignment' and may send some of its Singaporean employees on an assignment to its Fapanese operations $as
-apstone ,ro(et
.;
&-=s%# +organ defines international HR+ as the interplay among these three dimensions human resoure ati!ities' types of employees' and ountries of operation# Banks ha!ing a integrated system an effeti!ely integrate this dimensions of HR' /mployee and 6perations# Karen E# Beaman $.;;;% mentioned in this researh that' a multinational HRIS is one that takes a responsi!e approah to implementing and managing HRIS by being sensiti!e to loal and regional differenes# In essene' a multinational HRIS is one that manages a portfolio of multiple' national HR systems' allo)ing loal operations a signifiant amount of freedom and organi"ational autonomy# A global HRIS is one that takes an effiieny approah to implementing and managing HRIS by building a single' standardi"ed' entrali"ed system# &his )ill enable banks to see a uniform global operating en!ironment as the dri!ing fore and attempt to minimi"e national and loal needs# 6ne sanitary solution is de!ised' based primarily on the mother ompany2s reuirements' and eah international subsidiary is epeted to hop on board and do things the same )ay# Karen E# Beaman $.;;;% further mentioned that' an international HRIS is one that takes a learning and sharing approah approah to implementing and managing HRIS by transferring and adapting kno)ledge and epertise to loal banks' )hile ontinuing to retain onsiderable influene and ontrol o!er the loal banks# banks# It allo)s for the eploitation eploitation of the parent bank ore ompetenies through the adaptation adap tation of tehnologies' business praties' praties' produts' ser!ies' ser!ies' kno)ledge and epertise to the loal en!ironment' )hile building on the strengths and ore ompetenies of the loal entities# At the same time' it either alls for hea!y modifiations to the system system to the point that maintenane maintenane is a problem or it reates a situation )here neither neither orporate nor loal needs are adeuately met# Karen E# Beaman $.;;;% further eplains that' uniform treatment of foreign operations is one of the ma(or impediments to building the fleibility and responsi!eness that HRIS needs today# Suh uniformity fores simplisti and dihotomous hoies# &o be responsi!e to loal
-apstone ,ro(et
.1
needs' )e need to legitimi"e di!ersity and appreiate multiple perspeti!es# &he belo) figure graphially sho)s the di!ergent needs for global integration and loal differentiation for !arious HR and HRIS strategies' funtions and ati!ities# As an be seen from the diagram' some HR funtions that benefit from loal fleibility inlude ompeteny management' professional de!elopment' re)ards' salary and finanial inenti!es' and the deli!ery of training programs#
igure 2
2.( ,R*' in banking industry of de!elo)ing countries:
HRIS is ausing signifiant signifiant benefits for the banking industry of de!eloping ountries# ount ries# In order to asertain the benefits' prominent banks in some de!elopment ountries like ,akistan'
-apstone ,ro(et
..
Indonesia' India' &hailand' Srilanka and Kenya are seleted by *r# Harman ,reet Singh et al $.;11%# &heir study summari"es the follo)ing benefits# Country
India
%ank
SBI
+escri)tion
SBI uses HR soft)are interfaes# interfaes# Interfaes allo) for data to be transferred from one system to another# HRIS assures that the data in system is up to date and aurate# So' it enables integrated HR
,akistan ,akistan
SB,
payroll soft)are solutions# solutions# SB, uses orale orale based based HRIS in diffe different rent units units like like employ employees ees database unit' ser!ie reord ompliane unit' HR automation unit et# HRIS enables diso!ery of more effiient and less time onsum onsumin ing g proes proesses ses## It also also enabl enables es effi effii ien entt perfor performa mane ne
Indonesia
BI
management of employees# BI employs employs HRIS to store data of more than 5;;; employees# employees# ?or this this purpo purpose se'' it deplo deploy ys a datab databas asee appl appli iat atio ion' n' kno)n kno)n as SI+AS*A+# Strategially' the bank has strengthened I& support and information system# Ho)e!er' it has been obser!ed that BI has not properly estimated its system reuirements )hile employing HRIS# Adoption of HRIS an help BI tremendously' if it orretly
&hailand &hailand
B&
identifies its system reuirements and le!el of sophistiation# B& employs employs HRIS as a +anagement +anagement Information Information System $+IS% for training administration' time management' ustomi"ed payroll management et# ?urthermore' HRIS is used for employee life<
Srilanka Srilanka
SB
yle' relationship and transation management# SB is using HRIS to re
-apstone ,ro(et
.8 personal informatio information' n'
)ork
details' details'
lea!e reords'
payroll
information information et in HRIS# ?or this purpose' a sophistiated sophistiated and )ell
Kenya
K-B
integrated HRIS need to be deployed# K-B employs employs orale based HRIS to keep pae )ith the hanging hanging need needss of orga organi ni"a "ati tion on and and )ork )ork for fore# e# HRIS HRIS help helpss K-B K-B to effiiently manage employee reords# 6rale database is used as a single single soure soure of inform informatio ation# n# &his &his elimi eliminat nates es data redundany redundany'' redues the possibility of onfliting data in different databases' and reates a onsistent' omplete as )ell as a reliable piture of e!ery employee# Table 2
&his further pro!es that HRIS has a !ery )ide sope in banks of de!eloping ountries# &his an be applied in many part of the HR funtionalities' ho)e!er its !ery important for banks to learly identify the reuirements before implement them# &his )ould lead to optimum utili"ation of sare resoures# HRIS database an be used as a single soure for all information and doing that )ould ) ould lead to the de!elopment of an integrated HRIS platform for the )hole banking banking operations#
2.3 / ,R*' effects on strategic )lanning and decisions in banking industry:
Human Resoure strategy is about the ation the banks do in order to aomplish aomplish the mission and ob(eti!es of the banks# Adopting suh strategy )hen arrying out HR planning ensures that employees an ahie!e the HR ob(eti!es# Aording to Kenneth A# Ko!ah et al# $.;11%' by the time HRIS started reahing maturity from an administrati!e perspeti!e' banks had begun to reogni"e their !alue !alue in pro!iding pro!iding management management )ith strategi data not only in reruitment and retention strategies' but also in merging HRIS data into larger
-apstone ,ro(et
.3
strategy# strate gy# Hassan et al# $.;11% appro!e this in his artile that' HRIS pro!ides pro! ides bank management )ith strategi data not only in reruitment and retention strategies' but also in merging HRIS data into large' 17a' 1 7a' 17b' 11% 1 1% that the key poliy goal for HRIS' )hih is onerned )ith the ability of the organi"ation to integrate HR+ issues into into its strategi plans' to ensure that the !arious aspets of HR+ ohere' and to enourage line managers to inorporate an HR+ perspeti!e into their deision making# Also another note from his artile onsiders that' one of the ommon themes of the typial definitions of HRIS is that HR poliies should be integrated )ith strategi business planning# Keith Sisson $1;% suggests that a feature inreasingly assoiated )ith HRIS is a stress on the integration of HR poliies both )ith one another and )ith business planning more generally#
-apstone ,ro(et
.4
Hassan et al# $.;11% further points a note from Fohn Storey $17% that &he onept loates HRIS poliy formulation firmly at the strategi le!el and insists that a harateristi of HR+ is its internally oherent approah#2 &herefore' HRIS an be oneptuali"ed as ollateral for de!eloping strategi strate gi deisions )ithin organi"ations# Belo) are some aims of HRIS strategy in banking#
&o ensure that business planning reogni"es that the ultimate soure of !alue is JpeopleJ#
&o make sure that all those in!ol!ed in strategi planning understand the HR impliation of their proposals and the HR onstraints if they fail to take ation#
&o math the ob(eti!es of the HR funtion to the orporate business ob(eti!es#
&o help bring bring about orporate ulture and proesses that enable people to do their (obs better#
&o align the organi"ationJs ompetenies needs )ith the people )ho an satisfy those needs#
&o ensure organi"ational resoures ontribute to the de!elopment of peopleJs ompetenies#
&o determine performane reuirements to ahie!e the organi"ationJs ob(eti!es and ho) employees an satisfy those reuirements#
&o determine le!els of employee ommitment and )ays for impro!ing them
Asafo% points out some important definitions mentioned by other sholars# As per his artile' &orrington et al#$.;;4% al#$.;; 4% defines SHR+ as means of aepting the HR funtion as a strategi partner in the formulation of the ompany2s strategies as )ell as in the implementation of those strategies through HR ati!ities suh as reruiting' seleting' training and re)arding personnel# Dhereas Dhereas strategi HR reogni"es reogni"es HR2s HR2s partnership partnership role in in the strategi"ing strategi"ing proess' the term HR Strategies refers to speifi HR ourses of ation the ompany plans to ahie!e# Asafo< Ad(ei $.;;>% $.;;> % also notes the definition from Bratton and Gold $.;;8% $.;;8 % defines strategi strate gi human
-apstone ,ro(et
.5
resoure management as the proess of linking the human resoure funtion )ith the strategi ob(eti!es of the organi"ation in order to impro!e performane# &o the authors' global ompanies funtion suessfully' if strategies at different le!els inter
2.4: unctions of ,R*' in banking sector:
HRIS is a soft)are solution for managing all the uantitati!e aspets of managing human resoures and other related funtionalities# +anaging human resoures needs for banks is a !ery ompliated task' espeially if a bank is large )ith hundreds and thousands of ati!e )orking employees# employees# HRIS soft)are helps to trak people and resoures' ondut payroll alulati alulations' ons' manage responsibilities and do the aounting neessary to maintain an effiient department# As )ith any type of business soft)are' there are a number of different soft)are pakages a!ailable o!ering different types of businesses and duties# HRIS systems onsist of one or more related HR funtion and this an inlude# 2.4.1 / m)loyee *nformation: &he basi data stored in any HRIS system is employee
information like =ame' address' sage' se' pay rates' )orking hours' grade et# &his information is ritial for all the departments to identify the resoures## Dithout this system' HR an2t mange and run their ati!ities effeti!ely# &his mostly been referred as +aster data for HR and this should be the first system system that needs to be inorporated into integrated HRIS systems# systems#
-apstone ,ro(et
.>
2.4.2 / Recruiting Recruiting and ,iring: Banking is a ser!ie industry and the ustomers do diret interat
)ith employees# It is !ery important for banks to hoose a right andidate for right (ob# *arrag et al# $.;1;% mentioned in this artile that' reruitment represents one of the ore staffing ati!ities that need to be effiiently and effeti!ely planned and onduted for organi"ations to attain suess# It2s the proess proe ss of searhing for and attrating an adeuate adeu ate number of ualified ualified (ob andidate' from )hom the banks may selet the most appropriate to field its staff needs# &he steps in reruitment proess inlude identifiation of (ob openings' determination of (ob reuirements' hoosing appropriate reruiting soures and methods' and finally' generating a pool of ualified reruits# Fob openings are identified through human resoure planning or manager reuest# Based on the reuirement the reruiters )ill list the (obs into bank2s orporate )ebsite and other (ob boards like internet' ne)s paper ads' ollege ollege reruiting reruiting et for reei!e (ob (ob appliations appliations from from !arious andidates# @pon reei!ing the appliation' reruiting team )ill ontat onta t !arious sreening and inter!ie)s to selet the right person for the (ob# *ata and information about appliants appliants regarding urrent employees' employees' )hether for a transfer or promotion' or o r outside andidates for the first time position )ith the firm are olleted and e!aluated# 6ne the seletion proess ompleted' the andidates andidates )ill be gi!en offer offer to (oin a position# position# It is !ery diffi diffiult ult for for reruiters and hiring managers to perform these tasks )ithout ha!ing a neessary tehnology and tools# Also' it2s !ery important that (ob appliant details needs to be ommuniated on time to other systems like payroll' benefits' attendane system to further proess the pay heks for e!ery month# Integrated HRIS system plays a ma(or role in hiring and seletion proess to auire talented human resoures to banks# Based on the disussions )ith HR professions in my organi"ation' I ha!e illustrated the belo) diagram diagram on ho) the Reruiting Reruiting and Hiring Hiring proess an be integrated integrated to HRIS system# system# Reruiting and Hiring is the soure appliation it reei!es (ob appliant data from eternal and
-apstone ,ro(et
.7
internal areer )ebsites# Based on the other seletion proess hiring team )ill pro!ide offers to andidate# &hese offer details needs to be linked to integrated HRIS system to proess payroll' benefits benefits and other funtional funtional areas of the the HR ati!ities# ati!ities#
igure "
2.4." / m)loyees -ayroll system: ,ayroll is the one !ery important funtions of HR
*epartment# It2s the proess by )hih an employer pays an employee for the )ork performed# By legally and morally employers are responsible to issue the aurate pay heks to their )orks based on the )ork performed or the time spends of the )ork# If employers employers fail fail in in their payroll payroll duties' their )orkers )ill be less moti!ated to fulfill their end of the bargain# &heyJll be less produti!e and suffer suffer from lo) morale# morale# Also' Also' banks ha!e legal legal obligation obligation to go!ernments go!ernments to )ithhold appropriate taes from its employees# &hese taes inlude the federal' state' and loal taes the employees must pay' and the employeeJs portion of Soial Seurity and +ediare taes# A fully automated payroll proess in!ol!es the re!ie) and !erifiation of hours )orked and other
-apstone ,ro(et
.
hanges as entered by the employees' follo)ed by the proessing and printing of payroll reports' filing of diret deposit information and payroll taes' and the distribution of payheks# Hoboken $.;;8% eplains the basi end to end proessing of payroll and proess flo) and the integrated HRIS system in banks should o!er all these basi proess to issue pay heks to its employees# 1# 'et u) new em)loyees : =e) employees must fill out payroll
-apstone ,ro(et
8;
in!oluntary ones inlude garnishments and union dues# &hese an be made in regular amounts for eah payhek' one a month' in arrears' or prospeti!el p rospeti!ely y# ># Create a )ayroll register # Summari"e the )age and dedution information for eah employee on a payroll register' )hih an then be used to ompile a (ournal entry for inlusion inlusion in in the general ledger' prepare ta reports' and for general researh purposes# &his doument is al)ays prepared automatially by payroll suppliers or by in
to ompile a (ournal entry that transfers the payroll epense' all dedutions' and the redution in ash to the general ledger# 11# 'end out direct de)osit notifications # If a issue payments diretly to employee aounts' then a notifiation notifiation of the aounts to )hih payments payments are to be sent and the amounts to be paid must be assembled' assembled' stored on tape or other media' and sent to the bank# 1.# +e)osit withheld ta7es. &he banks must deposit all related payroll ta dedutions and employer
-apstone ,ro(et
81
18# *ssue go!ernment )ayroll re)orts re)orts # &he go!ernment reuires se!eral payroll related reports at regular inter!als' )hih reuire information on the payroll register to omplete# Dhen looking for an HR system' some banks may onsider the HR module offered by their payroll ser!ie pro!ider# pro!ider# &his &his may may be a on!enient on!enient option' ho)e!er there is another option' one that speifially addresses HR2s needs: a fully
business business admini administration stration Sba#go! $.;1.% artile eplains eplains the the importane of employee employee benefit benefit programs# /mployee /mployee benefits benefits play an inreasing inreasingly ly important important role in the li!es li!es of employees employees and their families and ha!e a signifiant finanial and administrati!e impat on a business# +ost ompanies operate in an en!ironment in )hih an eduated )ork fore has ome to epet a omprehensi!e omprehensi!e benefits benefits program# Indeed' the absene of a program or an inadeuate program an seriously hinder a ompanyJs ability to attrat and keep good personnel# /mployers must be a)are of these issues and be ready to make informed deisions )hen they selet employee benefits# *esigning the right benefit plan for your employees is a omple task# &here are many issues to onsider' inluding ta and legal aspets' funding' and finding the right !endors or administrators# Benefits plan protets employees and their families from eonomi hardship brought by sikness' disability' disability' death or unemployment# un employment# It also pro!ides a retirement inome to employees and their families# Benefits are indiret finanial payments gi!en to employees# &hese may inlude supplementary health and life insurane' !aation' pension' eduation plans' and disounts on sale of ompany produts# ?urthermore' inome and medial benefits to !itims of )ork
-apstone ,ro(et
8.
mandate ertain le!el of benefits to all employees in all organi"ation# Soial Seurity' @nemployment insurane and Dorkers ompensation are some mandated by go!ernment# Also the benefits benefits like like Health Health Insurane' *isabil *isability ity Insurane and 0ife 0ife Insurane are regulated regulated by employers# employers# Integrating the benefits funtion of the bank )ith HRIS )ould gi!e ma(or ad!antage to HR department to !alidate and proess benefits for eah employees# Integrating benefits to HRIS )ould gi!e faster and aurate data to payroll' finane and other HR funtions# 2.4.( / Time and Attendance: +anually traking employee attendane is not an easy (ob# It is
highly intensi!e proess that is error prone and suseptible to rampant heating by employees# Streamlining the management of both time )orked and time a)ay from the offie is important# &he &ime and Attendane system )ill monitor the ati!ity and an pass the results on to the payroll system# system# &his &his streamlin streamlining ing is !ery important and should should almost almost be made mandatory mandatory for all businesses businesses of this si"e si"e and greater# greater# HRIS helps automating the olletion of employee attendane data offers many immediate and long
Aurate attendane data into payroll proessing# proessing#
?air and uniform appliation of )ork rules and o!er
/nsure all state and federal regulations#
-an help trak employee produti!ity#
-an help trak true labor ost by produt' pro(et' task or proess#
It )ill help to derease time ard heating by employees#
/mployees an trak balane and arual lea!es
It )ill allo) employees to traks sheduled time
&hey bring effiienies effiienies in staff time' impro!ements in information' redution redut ion in time improperly aounted for and redution in buddy punhing losses#
-apstone ,ro(et
88
In addition to pro!iding more aurate ra) payroll data' and doing so in less time' automating your time and attendane )ill produe ne) budgeting' sheduling and management tools#
&his researh suggest that' integrating integrating &ime &ime and Attendane Attendane to HRIS together toge ther an gi!e a tremendous amount of ost insight and and ontrol to a bank and ensure that they are getting the maimum dollar !alue from their employees# &his an also gi!e greater employee satisfation as and more produti!ity# 2.4.3 / m)loyee 'elf ser!ice 9'': /mployee self ser!ie is another important funtion an be
integrated to HRIS system# &he basi feature feature of /SS failitates failitates employees employees to hange 9 update upda te their personal details' eduation' marital status' bank details et# &his system also helps employees to submit lea!e appliation and help !ie) the lea!e balanes# &his is a !ery po)erful tool for employees employees to manage their details )ithout )ithout interating )ith HR department# In reent de!elopment' /SS an also helps to)ards empo)ering employees and managers to take more responsibilities for their (obs and de!elopment# /SS is an be a popular tool for bank' )here the high number of )orkfore uses omputer and internet aess# aess# +ost /SS systems are designed designed to )ork through )eb appliations appliations either internet internet or intranet# So' employees employees an aess their data any part of the day# Integrating /SS to HRIS )ould sa!e lots of human resoures resoures hours and money# money# HR resoures don2t need to deal )ith employee personal information and all employees are gi!en freedom and authority authori ty to manage their o)n personal details# &his sa!es lots of time and dollars for bank and also an ha!e aurate and up
-apstone ,ro(et
83
2.4.4 / -erformance ;anagement: ,erformane management is the systemati proess in!ol!es
all the employees and their performane at )ork# 6ften this been referred as performane appraisal or performane re!ie)s# &he true goal for performane management is employee de!elopment and organi"ational impro!ement and it sets the foundation for re)arding eellene# &he ideal system should help bank management to apture the belo) important aspets#
,erformane ,lanning < pro!ides information on establishing performane epetations and goals for employees to hannel their efforts to)ard ahie!ing organi"ational ob(eti!es#
+onitoring /mployee ,erformane – pro!ides information on the reuirements to ondut at least one formal )ritten progress re!ie) for all employees#
/mployee *e!elopment – pro!ides information on the importane of e!aluating and addressing employee de!elopment to inrease the effeti!eness of an organi"ation#
/!aluating /mployee ,erformane – pro!ides information on e!aluating employee performane performane against the elements elements and and standards in an employeeJs employeeJs performane performane plan and assigning a summary rating of reord#
Reognition – pro!ides information on a large !ariety of informal and formal reognition programs' )hih an be used to reogni"e and re)ard employee employee eellene# eellene#
Integrating performane management to HRIS system should gi!e !aluable information to payroll' benefits benefits and training training departments# departments# Ideally Ideally' end end of e!ery appraisal appraisal yle employees employees are gi!en gi!en pay a pay inrease inrease based on the grade he9she reei!ed reei!ed for the pre!ious pre!ious year# year# Also' Also' managers managers arrange neessary training plans to inrease the skills and ompeteny of the employees# All the training needs and skill de!elopments an be easily arranged if the systems are integrated and sa!e time and effort for HR department#
-apstone ,ro(et
84
2.4.< / Training and +e!elo)ment: &raining and de!elopment is one other important funtions
of banking setor# It ensures that randomness is redued and learning or beha!ioral hange takes plae in strutured format# &raining &raining both physiall physially y' soiall soially y' intell intelletuall etually y and and mentally mentally are !ery essential in failitating not only the le!el of produti!ity but also the de!elopment of personnel in any banks# Banking operations opera tions are undergoing tremendous hanges e!ery year# Globali"ation plays a ma(or role in in banking banking reform and the proess and poliies poliies used in in the banking banking operations are hanging freuently# In a more and more global' omple and turbulent en!ironment' kno)ledge is the only reliable soure of ompetiti!e ad!antage# Kno)ledge is !ie)ed as the key of reali"ation reali"ation of a ompetiti!e ad!antage# &herefore the uestion of )here the orporati!e kno)ledge is loated' ho) to release it and de!elop to ahie!e organi"ational goals has beome !ery important# &he main ob(eti!e of training and de!elopment funtion is to make sure the a!ailability a!ailability of a skilled and )illing )illing )orkfore )orkfor e to bank# 6n a indi!idual aspet' training helps employees in ahie!ing their personal goals' )hih in turn' enhanes the indi!idual ontribution to banks# 6n a organi"ationa organi"ationall aspet' training training )ill )ill bring indi!i indi!idual dual effeti! effeti!eness# eness# 6n a soial soial le!el' le!el' training and de!elopment ensures than an organi"ation is ethially and soially responsible to the needs and hallenges of the soiety# *ue to this importane' banks are spending hundreds and millions of dollars e!ery year for training needs and its been onsidered as more of retention tool than ost# Integrating this funtion to HRIS gi!es a ma(or ad!antage to HR' finane and employees of the bank# HR an easily trak the training needs for eah employee and arrange for a reuired training sessions# Also' employees an be effeti!ely used for the right (obs# /mployee training and de!elopment does not imply only obtaining ne) kno)ledge' abilities and skills' but also the possibilit possibility y to promote entrepreneurship' introdue introdue employees employees to hanges' enourage the hanges of their attitude' introdue the employees to important business deisions and in!ol!e them
-apstone ,ro(et
85
ati!ely in the proess of deision making# *#A# 6laniyan' 0uas B#6(o $.;;7% points the funtions of training as follo): inrease produti!ity' impro!es the uality of )orkC impro!es skills' kno)ledge' understanding and attitudeC enhane the use of tools and mahineC redues )aste' aidents' turno!er' lateness' absenteeism and other o!erhead osts' eliminates obsolese in skills' tehnologies' methods' produts' apital management et# It brings inumbents to that le!el of performane )hih needs the performane for the (obC enhane the implementation of ne) poliies poliies and regulationsC regulationsC prepares prepares people for ahie!ement' ahie!ement' impro!es impro!es man
2.< / Cor)orate #o!ernance / ,R*' and =.' Laws:
Human resoures is a key enabler for strategi ob(eti!es of the bank# HR de!elops and reommends the ompany2s approah to orporate go!ernane inluding all set of la)s needs to be follo)ed follo)ed for banking banking operations# &he integrated integrated HRIS allo)s ompanies ompanies to omply )ith )ith la)s and regulations and manage manage any risk assoiated )ith that# ?or banking operations opera tions the HRIS helps omply )ith )orkfore eligibility eligibility !erifiations' labor and immigration immigration ontrols' ontro ls' *ata pri!ay and data seurity# Belo) are some important la)s that an be e onfigured to use in HRIS systems# 2.<.1 8 ,*-AA 8 9,ealth *nsurance -ortability and Accountability Act 8 &his rule is mainly
for the benefit of employees and its imposed a series of regulations to guarantee health insurane to indi!iduals# Diki,edia $.;1.% eplains that' HI,AA protets health insurane o!erage for )orkers and their families )hen they hange or lose their (obs# &itle II of HI,AA' kno)n as the Administrati!e Simplifiation $AS% pro!isions' reuires the establishment of national standards for eletroni health are transations and national identifiers for pro!iders' health insurane plans' and employers# Asentis $.;;1% eplains the need for HR systems to be ompliane )ith HI,AA# 6ne part of this la)' labeled Administrati!e Simplifiation' is intended to redue the osts and
-apstone ,ro(et
8>
administrati!e burdens of healthare by making possible the standardi"ed' eletroni transmission of ertain administrati!e and finanial transations )hih are urrently arried out manually# &o aomplish this goal' the la) reuires to adopt national uniform standards for the transations# By making these ne) standard eletroni data formats mandatory for all arriers and benefit !endors aross the ountry' the federal go!ernment has made it possible for Human Resoure Information System $HRIS% and benefit benefit soft)are !endors to reate a ommon interfae interfae to these ne) data standards# All eletroni transmissions of the transations o!ered by A=SI 1.= from one omputer to another must omply )ith the standards# /letroni transmissions inlude transmissions using all media' e!en )hen the transmission is physially mo!ed from one loation to another using magneti tape' disk' or -* media# &his )ill enable eletroni benefits enrollment and premium remittane remittane o!er the Internet' a !irtual pri!ate pri!ate net)ork' or o!er a standard modem onnetion# Also some benefits for using HRIS for HI,AA ompliane inludes' redued benefit ost' administrati!e sa!ings' and impro!ed effiieny and redued errors# basi details of Sarbo# &his 2.<.2 8 'arbanes/O7ley Act: 9 /mployease' .;1.% eplains the basi )hite paper lears that' the Sarbanes<6ley Sarbanes<6ley At $S6% )as reated to protet in!estors in!estors and restore publi trust by impro!ing the auray and reliability of orporate dislosures# A key element is that Sarbo makes unauthori"ed dislosure of nonpubli data' i#e#' not )idely disseminated to the general publi' a !iolation of federal seurities la)s# =ot only should nonpubli information be proteted' but it also should be monitored to ensure it isn2t dislosed inappropriately# HR plays a !ital role in this inreasingly ompliated and ritial funtion of ensuring ensuring good orporate go!ernane poliies poliies and praties# So' )hether the bank is publi or pri!ately pri!ately held' held' HR professionals professionals an use S6 as a )ay to get ompany to omply the at# A Kelly ser!ie $.;1.% eplains the role of HR in S6 ompliane# +any of the proesses that HR o)ns' inluding payroll and benefits – ha!e an impat on finanial reporting' and ould epose
-apstone ,ro(et
87
ompanies to signifiant finanial risks if they donJt funtion properly# But other HR proesses' inluding reruitment and inenti!e systems' an also be important in the ontet of S6 beause they an impat the entire ulture of a bank and the mindset of its employees# @ltimately' that mindset is one of the most important lines of defense against fraud or other misbeha!ior# As S6 )ill ontinue to be an epensi!e proposition' banks )ill need to find effiienies and smart )ays of omplying# Ha!ing the appropriate infrastruture an ertainly help' but e!en ompanies that already operate automated HRIS systems to run many of their HR proesses )ould be )ell< ad!ised to re!ie) the reporting apabilities and standards built into these systems to determine the etent to )hih they omply )ith S6 reuirements# Here the HRIS plays a !ery ma(or role in produing suh audit reports for ompanies ompanies to re!ie) and and orret the reuired information2 information2s# s# 2.<." / air Credit Re)orting Act 9CRA 8 &his la) regulates the olletion' dissemination and
use of onsumer information inluding onsumer redit information# Bankers6nline $.;1.% eplains the la) in detail# &his at regulates the onsumer redit reporting and related industries to insure that onsumer information is reported in an aurate' timely' and omplete manner to gi!e indi!iduals information )hen onsumer reports are used to e!aluate redit appliations and to protet the onfidentiality of information# &his at reuire that onsumer reporting agenies adopt reasonable proedures for meeting the needs of ommere for onsumer redit' personnel' insurane' and other information in a manner )hih is fair and euitable to the onsumer' )ith regard to the onfidentiality' auray' rele!any' and proper utili"ation of suh information# Banks largely deals )ith onsumer redit and personal data# It2s a poliy of any bank to obtain redit report on a ustomer for legitimate need only determining in eligibility for redit' bank loans and employment employment purpose# A HRIS system plays a ma(or role role for banks to ompliane ompliane for this at# Integrated HR system an help banks to obtain the redit details of onsumer on
-apstone ,ro(et
8
to &rans@nion and other redit red it ageny to get the on7 mainly to produt
indi!idual onsumers engaging in /?&s like Automated learing house $A-H%' transfers through automated teller mahines $A&+%' telephone and on
2.> 8 ,R*' data model:
Raymond +leod' Fr' Gerardine *esantis $14% noted a finding of Andre) 6#+an"ini and Fohn *# Gridley G ridley'' )riting for the Amerian Amerian +anagement Assoiation Assoiation in 175# &hey !ie)ed HRIS in terms of interfae interfae )ith a orporate orp orate human h uman resoures database# database # As per this model' users interfae )ith systems like ,-s' terminals and reei!e output in the form of hardopy reports and responses to ad
-apstone ,ro(et
3;
igure &
*iagram Soure: Andre) 6# +an"ini and Fohn *#Gridley# -opied from: Raymond +leod' Fr' Gerardine *esantis $14%#
-apstone ,ro(et
31
C,A-TR ": +escri)tion of the research design used
&he ob(eti!e of this study is to present a omprehensi!e literature re!ie) of HRIS and eplores the benefits and implementation of fully integrated HRIS for banking industry# It is !ery essential for banks to understand the benefits of HRIS before they in!est any time' money and effort for this# *ue to the ompleity of the HR and related funtions' implementing an effeti!e HRIS system is !ery omple proedure# Banks needs to ha!e a !ery lear understanding on eah HR proess and its related ati!ities to identify the orret integration points to get the maimum out of the system# system# Aording Aording to Gerardine *eSantis $175%' Human resoure information information systems outline an integration bet)een human resoure management $HR+% and Information &ehnology# HRIS support planning' administration' deision
".1 Research ?uestions:
&his study purports to in!estigate the role of HRIS in banking setor by eamining ho) HR professionals in banks and organi"ations see the effets of HRIS on HR ati!ities# A uantitati!e method is used to ahie!e the researh ob(eti!es effeti!ely# Hypotheses are tested using diret interations )ith HR professionals' Sub(et +atter /perts $S+/2s%' &ehnial analysts' Soft)are /ngineers and programmers# &his study eamines the follo)ing researh uestions#
Dhat are the ad!antage' disad!antage' disad!antage' and o!erall ontribution of HRIS and integrated subsystems to the banking industry
Dhat are funtions 9 options a!ailable for banks to implement integrated HRIS
-apstone ,ro(et
3.
".2 +ata collection methods and )rocedures: *nter!iews$+iscussions: +ultiple formal and informal inter!ie)s )ere onduted )ith the
heads of HR' Hiring +anagers' Reruiters' Business analysts' soft)are engineers and programmers# programmers# &heir eperienes' eperienes' kno)ledge' personal !ie)s !ie)s of HRIS HRIS systems systems )ere doumented# Organi6ational re)orts: Earious HR (ournals from banking setor )ere used to ross<
referene the methods used and funtions inorporated into HRIS systems# management )ebsites' )ebsites' HR internet internet *nternet$@ebsites: HRIS produt )ebsites' HR management forums are used to ollet and analy"e the findings# Diki )ebsites and -iteHR )ebsites also been used to gather definitions definitions and data# ournalsB articles and references: references: ,re!ious researh douments' artiles and findings are
used to report information information on pre!ious researh related to HR planning planning and HRIS#
"." +ata Analysis:
HR professions those )ho urrently using the HRIS system for banks are in!ol!ed in the study# Bank of Ameria Ameria and Bank of +ontrLal HR systems )ere analy"ed to understand under stand the benefits benefits and the usage of the system# system# /R, systems systems like like ,eopleSoft' ,eopleSoft' SA, are analy"ed analy"ed to indentify indentify the onnetion points to HR systems# Also' !endor tools like *eploy Reruiting and Hiring' *eploy -areer )ebsites' Dork fore management' Dork Brain tools are analy"ed to get the usage of the HR systems in bank# He)itt In' &ime and labor system and Hea)are In' performane appraisal systems )ere analy"ed to understand ho) this an be integrated to HRIS systems to share data and HR planning# planning# +ost real time data and proessing of HRIS transations are analy"ed analy"ed to understand the proess model#
-apstone ,ro(et
38
C,A-TR &: +iscussion findings and recommendations. recommendations.
&he banking setor has been an instrumental for the eonomi de!elopment of any nation and it play a ma(or role in people life# Globally banking ati!ities are undergoing rapid hanges and faing hea!y ompetitions# In order to maintain their status and )in the rae in the present en!ironment' en!ironment' banks need to onentrate impro!ing and and strength their human resoures# resoures# ,eople are the key fator to organi"ational suess' inno!ation' and profitability# +anaging Human Resoures plays a !ital role in shaping the beha!iors and attitudes to)ards the organi"ation# -ontinuous e!aluation of employeesJ satisfation is as )ell desired to ensure the maimum loyalty and )ork effiieny to the organi"ation# Impro!ing employeesJ ompensation plans and benefits an be effiient dri!ers to inreasing moti!ation and generating mutual benefits at the best of the organi"ation# Human resoures de!elopment is an essential proess to attain the baking ob(eti!es and it2s !ery important to automate this proess to get the maimum benefit of this proess# &ehnology is ompletely hanging the )ay )e do things# &ehnologial de!elopment )ould render flo) of information and data transfer leading to faster appraisal and deision making# &his )ould help banks to make HR management more effeti!e besides leading to an enormous redution in transation ost# &o redue in!estment osts in HR' banks are in!esting lots of money to omputeri"e their proess# &he ad!ent of ne) tehnologies ould see the emergene of ne) players doing finanial inter mediation# &he on!entional banking system may undergo hanges due to tehnologial hanges &#Sreeni!as $.;;5%# &he role of HRIS is inreasing and beome strategi deision making tool# A!ailability of timely information' impro!ement in the ser!ies played an important role# &he implementation of integrated HRIS redues the )orkfore' sa!e time and ost# It enables the banks to impro!e their data and enhane the ompetiti!eness# Researh findings learly sho) that HR managers and eeutes are )ell a)are that they an inrease the effiieny of HR proess through HRIS by sa!ing time and ost# &hey all see
-apstone ,ro(et
33
integrating funtions like payroll' benefits' time and labor' performane appraisal' benefits are gi!ing more po)er and strength to HRIS system# @sing this module' HR managers really en(oy the faster' aurate and error free deli!ery of data to enhane the HR operations# Reports produed in HRIS systems systems helping helping the managers to take fast deision deision and pro!ide suitable suitable solutions to !arious problems# problems# Earious arious studies on HR+ propose that HRIS an ontribute to the reation of a long%# &he reent ad!anement in tehnology like i,ad' i,hone' Blak Berry are helping HR managers to !ie) the HR data on the go using HRIS system and helps to take )ise deision on –time# Researh further helps to understand that HRIS tehnology replaes the ore HR ati!ities ati!ities by streamli streamlining ning them eletronial eletronially ly## Fosip Fosip Arneri Arneri et al# $.;;;%# Reruiting Reruiting and hiring' hiring' payroll' payroll' time time and labor' performane appraisals' benefit administration' training and de!elopment are other HR funtions funtions integrated to strength the proess#
&he reruiting and hiring funtion automates the hiring proess by postings (obs to !arious (ob boards and olleting olleting and and searhing searhing for and attrating an adeuate number of ualified ualified (ob andidates# andidates# &his module proess the bak ground hek on the andidates and and follo) the omplete hiring proess like inter!ie)ing' sreening' pro!iding offer et# &his module further sends the andidate data to ,ayroll' benefits' training and de!elopment and other non HR operations#
&he payroll module automates the pay proess by gathering data on employee time and attendane' alulating !arious !arious dedutions and taes' and generating employee employee ta reports# *ata is generally fed from the human resoures and time keeping modules to alulate automati deposit# &his module sends aounting information to the general ledger' as )ell#
-apstone ,ro(et
34
&he time and labor management module applies ne) tehnology and methods to ost effeti!ely gather and e!aluate employee time9)ork information# &he most ad!aned modules pro!ide fleibility in data olletion methods' labor distribution apabilities and data analysis features#
&he benefit administration module permits HR professionals to easily administer and trak employee partiipation in benefits programs2 $healthare pro!ider' insurane poliy' pension plan%# plan%#
&he training and de!elopment module helps HR to fulfill the training needs of the employees# @sing this module' they an arrange training' de!elop reuired skills and introdue ne) proess and proedure for banks# &rained &rained resoures are key to reah the banking banking ob(eti!es# ob(eti!es#
6ther administration modules likes /mployee self ser!ie and /mployee information modules )ill pro!ide additional help to HR department to fasten the mo!ement of data# &his )ill help employees to maintain their personal data and gi!e a freedom to edit the data as on )hen it reuires# &his sa!es lots of time and pro!ides aurate information to other HR funtions# funtions#
&his study further sho)s the role of HRIS in international banking# Hiring )orkfore and retaining the human resoures in foreign land is not an easy option# Banks needs to ha!e !ery solid system system in plae plae to o
-apstone ,ro(et
35
)ill help banks to operate their operations smoothly and effeti!ely# Banks generally paid attention to their money flo)' but )ith the effet of HRIS they started paying more attention to human resoures flo)# =o)' the top management in the banks stated reali"ing the fat that HR as a potential sa!ing area by automating and applying enough ontrols# In the urrent globali"ed market' banks are spending and de!eloping de!eloping abundane ne) HRIS systems systems to run the operations# &his study further address the belo) researh uestions in detail:
&.1 8 Research ?uestions and its findings:
HRIS has beome one of the most essential information systems in the banking industry# &herefore' the study foused on the role and benefits of implementing a integrated system for banking banking industry industry## &his &his study has epeted to eplore the funtionality funtionality and ontribution of HRIS HRIS in HR ati!ities of the banks# 6ne ob(eti!e of the researh is to find the solution to the pre!iously defined researh uestions# @hat are the ad!antageB disad!antageB and o!erall contribution of ,R*' and integrated subsystems to the banking industry
&he ob(eti!e of the first researh uestion )as to eplore the ad!antage' disad!antage and o!erall ontribution of HRIS and its subsystem to banking operations# A study finding in hapter9setion $.#8' .#3' .#4 and .#5% eplores the benefits benefits of using integrated integrated HRIS in banking setor# HRIS helps the banks in deision making proess and pro!ides omprehensi!e information as a single' integrated database# It further helps bank employees to administer their o)n personal data )ithout taking time and effort of HR resoures# It also helps in effeti!e planning and budgeting of banking banking operations# HRIS helps banks banks in integrate their other non finani finanial al ati!ities ati!ities like employee payroll' benefits' time and labor' reruiting and hiring# &his )ill enable the HR to perform all all the tasks effeti effeti!ely !ely and effii effiientl ently y# ?urther' &able &able 1 in -hapter .#8 summari"es summari"es the
-apstone ,ro(et
3>
key offerings offerings of HRIS to banks# ban ks# Also' the setion .#3 eplores the role of HRIS in international banking banking and ho) this helps helps the the banks to run the operation globally# globally# Setion .#4 and .#5 disusses the ontribution of HRIS to de!eloping ountries and ho) it2s been utili"ed for strategi planning# ?urther the study noted that lak of top management support' funds' HR kno)ledge of system system designers and HR solutions are the main fators keeping banks a)ay from HRIS and those are fe) disad!antages# All these findings help to address this first uestion )ith lear e!idene# @hat are functions $ o)tions a!ailable for banks to im)lement integrated ,R*'
&he ob(eti!e of the seond researh uestion )as to in!estigate the list of HR funtions that an be integrated into HRIS system# -hapter9Setions $.#>' .#7 and .#% help to eplore these options in detail# &hese setions pro!es that HRIS an be integrated to !arious non' .#7 and .# are addresses this uestion )ith lear e!idene#
C,A-TR (: 'ummary and Conclusion:
Banking industry is undergoing ma(or transformation in the present deade# Inreased penetration' onsolidation onsolidation and international international integration integration are the primary dri!ing dri!ing fores behind behind this transformation# transformation# In order to ope up )ith this transformat transformation' ion' banks need to pay more attention to its tehnologial ad!anements# 6ne of the ad!anement they an onsider is the reating a integrated HRIS system# HRIS is one of the information systems out )hih transforms the role of
-apstone ,ro(et
37
the HR department inorporating reords for employee employee resoure' re)ards' training' training' et# +any studies ited HRIS benefits' suh as impro!ements in auray' ost sa!ing' timely and uik aess to information through HR reports' deision
-apstone ,ro(et
3
&he systemati approah of HR and its related funtions are studied through literature re!ie)# HRIS failitates reruitment and setion proesses' training and de!elopment and of the banks# &he &he training training and de!elopment de!elopment funtion funtion is essential essential for hanging hanging beha!ior beha!ior and and ulture and reinforing the ne) beha!ior and ulture in an organi"ation# Also' the paper re!ie)ed the HR funtions like ,ayroll' /mployee benefits administration' &ime and attendane' /mployee self ser!ie and ,erformane management# Ho) these funtions an be integrated and an d ho) this )ill enables the banks to reate a one single integrated database to transfer information from one system to other# oth er# Study further eplains )hat la)s the HRIS should omply and )hy# )hy# @#S# 0a)s like HI,,A' HI,,A' S6' ?-RA and /?&A are re!ie)ed in detail to understand unders tand the usage usa ge and its benefits# benefits# &his &his study also re!ie)ed re!ie)ed the +an"ini
-apstone ,ro(et
4;
Reference:
Ann ,#Bartel $.;;3 ). Human Resource Management and organizational organizational performance: th Evidence from retail retail banking # Retrie!ed on April ; .;1. from http:99)));#gsb#olumbia#edu9f http:99)));#gsb#olumb ia#edu9faulty aulty9abartel9papers 9abartel9papers9human 9humanMresoureM MresoureM management#pdf Asafo%# The role of HRI in strategic human resources resources th management. Retrie!ed on April 15 .;1. from http:99)))#sribd#om http:99)))#sribd#om9do93777749889HRIS
-apstone ,ro(et
41
business
*r#Harman ,reet Singh' *r#Sunita Findal' Sekh Abdul Samim $.;11%# Role $.;11%# Role of Human Resources Information %stem in banking industr% of developing countries. Retrie!ed on +ay .nd .;1. ?rom http:99)))#inri http:99)))#inrit.;1.#om9inr t.;1.#om9inrit.;119 it.;119,roeedings.;119 ,roeedings.;119;.M33M1-M ;.M33M1-M HarmanO.;,reetO.;SinghMP3Q#pdf /mployease$.;1.%# trategic Human Resources and arbanes-le%# arbanes-le%# " /hite paper on th Industr% Trends. Trends. Retrie!ed on April .4 .;1. from http:99targetreahmarketing#om9 &R+O.;?iles9Samples9Dhite,aperM/mployeaseMSarbanes<6ley#pdf Gerardine *eSantis$175%# Human *eSantis$175%# Human Resource Information %stems%stems- " 'urrent 'urrent "ssessment +IS uarterly Eol# 1;# Hassan Rangri"' Fa!ad +ehrabi and Alire"a A"adegan $.;11%# The $.;11%# The Impact of Human Resource Information %stem on trategic (ecisions. Retrie!ed (ecisions. Retrie!ed on April ;7 .;1. ?rom )))#senet#org9(ournal9inde#php9is9artile9do)nload9###9>;>8 Har!ard $.;1.%# 'onsumer !rivac%# !rivac%# Retrie!ed on April .7th .;1. from http:99yber#la)#har!ard#edu9eommere9pri!aytet#html Hoboken $.;;8%# Essentials $.;;8%# Essentials of !a%roll !a%roll # Retrie!ed on April..nd .;1. from http:99media#)ile http:99media#)iley y#om9produtMdata9eerpt979;3>1.41;9;3>1.4 #om9produtMdata9eerpt979;3>1.41;9;3>1.41;7<.#pdf 1;7<.#pdf Fosip Arneri' *aniela Garbin ,ranie!i' I!ana &adi $.;;;%# THE 0E & H0M"+ RE0R'E I+&RM"TI+ 1TEM *HRI) I+ 'R"TI"+ HTE2 + THE "(RI"TI' '"T: " 0R3E1 # Retried on +ay .nd .;1. from bib#irb#hr9datoteka9843>;5#HRISMinM&ourism#pdf Karen E# Beaman $.;;;%# n 4lobalizing HRI: Moving to a transactional solution. Retrie!ed on April 13th .;1. from http:99)))#(eitosa#om9)p< ontent9uploads9.;1;91;96n
-apstone ,ro(et
http:99(itm#ubalt#edu9EI<89artile1#pdf
SBA#go!$.;1.%# Managing SBA#go!$.;1.%# Managing emplo%ee benefits. Retrie!ed benefits. Retrie!ed on April..nd .;1. from http:99arhi!e#sba#go!9id9groups9publ http:99arhi!e#sba#go!9id9groups9publi9doum i9douments9sbaMhom ents9sbaMhomepage9 epage9 ser!MpubsMpmMpdfMpm.#pdf &#Sreeni!as $.;;5%# ,anking $.;;5%# ,anking sector and Human resources resources *changing scenario scenario%# *iso!ery publishing house' =e) *elhi# DiKi,edia $.;1.%# Health $.;1.%# Health Insurance !ortabilit% and "ccountabilit% "ccountabilit% "ct. Retrie!ed on th April .3 .;1. from http:99en#)ikipedia#org9)iki9HealthMInsuraneM,ortabilityMandM AountabilityMAt
