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Discuss The Changing Business Environmental Factors That Can Have Possible Effects On The Operation, Use And Development Of Hris

1358 words - 5 pages

Human Resource Information System (HRIS) merges human resource management (HRM) with information technology to not only simplify the decision making process, but also aid in complex negotiations that fall under the human resource sector. Given that HRIS is embedded within the HR department, there are still a number of the changing business environmental factors which affect its development, operation and use. According to Kavanagh, Gueutal and Tannenbaum (1990), some of these important factors are; economic pressures, the government laws and regulations, technology advancement, labour market, societal factors and competition.Economic pressures on both small and large organisations during the 1980s and 1990s led to permanent changes in the use of employee information systems. The need to measure, account for, and report on the costs of employee programs has been a strong influence on the development of more complex HRIS, as stated by Nankervis, Compton and Baird (2004).Government regulations and legislations have also had a major impact on HRIS. The Equal Employment Opportunity Act 1977 (EEO), prohibits unfair discrimination based on race, nationality, religion, and gender in all employment practices. This means organisations must maintain comprehensive records on all employees with regards to this legislation. One of the requirements is that all organizations covered by the law must submit EEO management plans to achieve EEO outcomes, and report on the progress and success of their EEO program in their Annual Report (NSW Government Department of Premier and Cabinet 2007).The Occupational Health and Safety Act 2000 is another example of legislations having impacted on the development and use of HRIS. Employers must now make sure that they are providing and maintaining systems of work, and working environments that are safe, and risk-free to health as acknowledged by WorkCover NSW (2007).The impact of these regulations means that organisations will now have increased record keeping, increased analysis of employee data, and increased reporting responsibilities, hence altering the development of HRIS. Systems will now have to incorporate modules such as affirmative action goals and plans, training, communication programs, grievance handling and ad hoc reports.Kavanagh, Gueutal and Tannenbaum (1990, p76) suggested that "in addition to federal laws, organisations must also be sensitive to state laws that affect the HR function. The major area of regulation in terms of state laws is in unemployment and disability compensation". HRIS must be designed and developed to meet these law requirements.In addition, HRIS is strongly impacted by new laws or changes to existing ones, for example, the implementation of the Goods and Services Tax 2000 (GST). New laws such as the GST can mean increased costs in record maintenance and reporting requirements, and can cause major revisions to record keeping requirements. Again affecting the development of HRIS as it must...

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