A framework to leverage human resources information system for business performance

Payroll is one of the earliest applications in the history of business information system. Despite the early start, Human Resources Information System (HRIS) is primarily perceived as an administration tool. Most business managers do not recognise the business potential of HRIS. This research is motivated to address this phenomenon by identifying key Information System (IS) factors and organisation characteristics and initiatives to enhance HRIS business potential. The study proposes that, with the appropriate skills and knowledge, Human Resource (HR) practitioners can effectively use HRIS data to contribute to greater business success. Similarly, through effective initiatives implemented by business line managers, HR practitioners would be more capable of unlocking the potential of HRIS. A qualitative approach is adopted in exploring the key IS success factors, assessing HR practitioners’ skills, and understanding the initiatives that line managers could implement. The field data of this study were collected from HR practitioners and business line managers who worked for large companies in the UK. The field study confirmed that HRIS has been mainly used in an administrative context, with limited business impact. The two reasons suggested are: 1) there are shortfalls in HR practitioners’ strategic, analytic, and business skills and knowledge; 2) deficiencies in the line managers’ initiatives to maintain a productive HR-line relationship, empower HR practitioners, and adopt business expectations regarding the HR role. The research proposes a HRIS implementation framework that includes key IS success factors, required characteristics and initiatives that help HR practitioners to use HRIS effectively and unlock their potential to contribute to business success. The framework was developed into a Readiness Assessment Checklist (RAC) tool and used successfully in the implementation planning of a HRIS project. The research successfully applied information systems adoption research theories to develop a new model that captures the characteristics of Human Resource Management business practice.