Critical Analysis Of The Use Of HRIS In Payroll And Recruitment Functions In Organizations: A Case Study Of K&S Corporation

You are required to prepare a research paper which critically analyses how technology specifically HRIS is being utilised in two HR functions in an Organization.

Human resource management information system (HRIS) refers to integrated information system by use of a human resource software to effectively manage employees and internal affairs of the human resource department (Al-Azzam, 2015). The HRIS system improves efficiency, collects information, and facilitates work flow in the human resource management department. The HRIS system is involved in the following functions in the human resource management department; reporting, performance management, time & attendance, workflow& communication, benefit management, demographics & compensation and applicant tracking. A comprehensive HRIS system contain the following components; database, time & labour management, payroll function, benefits, employee interface and recruitment and retention. These components enable the centralization and ease management of employees’ data.

The following report analyses two HRIS system functions that are payroll and recruitment a case study of K&S Corporation human resource department in Australia. The report will involve study of how HRIS systems are used in payroll and recruitment functions in organizations and how K&S Corporation are utilizing it in the human resource department. The discussion will focus on truck drivers as employees of K&S Company.

Kain and Shelton (K&S) was started in 1945. The company specializes in providing transport services of cargo around Australia and New Zealand. The company started by supporting Victorian and Mt Gambier based business. The company has expanded in the past 60years to serve customers around Australia and New Zealand. K&S Corporation is a public traded company listed in Australian stock exchange. K& S had revenue of AU$ 688.8 million in for 2015-2016 financial yr (Ksgroup.com.au, 2017). The company has the following subsidiaries; DTM, Regal Heavy, Scott Corp, Aero Refuellers, K&S Bulk, K&S NZ, K&S Freighters. The company has a total of 2221 employees. The company also has 4050 vehicles and trailers.  

The K&S has dedicated human resource management department that attracts and retains employees. The K& S HR department has a competitive strategy that is based on continuous improvements through training and development. The HR department is also committed to excellent employees’ facilities, safety, and compensating competitive wages.

Organizations utilize HRIS to improve reliability, accessibility, and accuracy in the human resource department. The following section contains a review of how organizations are utilizing HRIS in payroll functions and recruitment functions in the HR department.

Uses of HRIS by Organizations

Poutanen and Puhakka (2010) stated that online recruiting was being adopted by companies as a primary method by the human resource department to get potential people to apply for positions in the organization. He also recorded that online recruitment enabled organization to reach more potential candidates, was cheaper and most effective to acquire best talents in the labour market.

Organizations use HRIS in the HR department in the recruitment function in the following way; 

First, organizations are using HRIT systems to identify potential applicants. The organizations use online requiting system to attract potential candidates (Hussain, Wallace and Cornelius, 2007). These candidates fill their details on the recruitment forms available online. The HR department then use the data filled by applicants to identify potential candidates who are available in the labour market. This function of the recruiting system saves the HR department resources that would otherwise would be used to scout for potential candidates in labour market.

Secondly, the HRIS system enables the HR department to analyze personnel. The recruiting system enable the depart sort, analyze, and evaluate personnel in terms of education qualifications and experience. Candidates fill their data and the system automatically analyses the data the HR department to make informed decisions. The online recruitment system is able to arrange candidates’ in order of their education level, years of experience, and gender (Zafar, 2013).

Thirdly, organizations utilize HRIS system in the selection of potential candidates. The HR department is able to select the desirable candidates from the applications submitted online. The selection involves picking the most appropriate in the process hiring. The selection of appropriate candidates enables the HR department through a recruiting system is reliable, fast and more accurate than face to face selection.

Organizations also use HRIS systems in the recruiting function to conduct interviews. Potential candidates requested to take job tests or aptitude tests online in the process of applying for a vacancy (Flamholtz, 2009). The recruiting system assesses the candidate abilities and accept application if the candidates meets the minimum score. Interviews online are convenient to candidates who are far from the company premises. Online interviews also save resources and time for the HR department that could otherwise be used to hire a recruiting firm to conduct interview.

Lastly, organizations are using HRIS system in the recruiting function to capture and store employees’ data. The recruiting system stores the candidates’ curriculum vitae and career objectives. This information is important to the HR department when promoting or appraising an employee.

Utilization of HRIS in Recruiting Function

Organizations are using HRIS system in the HR department in the payroll function in the following ways;

First, the organizations are using HRIS system in the payroll function to calculate an employee time and attendance. The HRIS system payroll function is utilized by organizations to check the hours that an employee has worked within a specified period of time (Chen, 2014). This enables the organization to gather important information about employment of the human resource in the production department.

Secondly, organizations use the HRIS payroll function to calculate deductions and taxes. The payroll function in the HRIS system is able to arithmetically calculate deductions and taxes in the employee’s salary. This function enhances accuracy about the transactions undertaken in arriving to net salary of an employee. The payroll function is also able to produce employees’ tax reports that are requirements by the government.

Thirdly, organizations are using HRIS system in the payroll function to generate pay cheques. The payroll function in the HRIS system is automated and is able to generate employees’ pay cheques timely an accurately (Buzkan, 2016). The automation also allows the HR department to automatically deposit salary to employees’ respective accounts from the system.

Lastly, organizations utilize the HRIS system payroll function to produce payroll reports. The payroll reports are important to the management of the organization for making informed decisions.

K&S Corporation has integrated information system in the HR department to enable execution of the HR functions in the organization. The following are way through which K&S is using technology in the HR department to manage truck drivers;

K&S use the HRIS systems in the recruitment function to take applications and induce potential employees. The company HR depart dispatches recruitment application form that potential employee use to express their interest in working as a driver. The forms are then assessed by the HR department who then call qualifying candidates for interviews. Secondly, K&S uses the integrated human resource information system to induce drivers before taking their roles in the company. The truck drivers are oriented on issues concerning their safety in the company, government regulations, company policies, and the employees’ right.

Future opportunities in the K&S HRIS recruitment function;

• Selecting appropriate candidates
• Analyzing and evaluating candidates

The K&S HR department uses the payroll function of the HRIS system to check hours worked, calculate taxes, and generate pay cheques. The HR department payroll system shows how many hours a truck driver has worked in a day and in a month that is used to calculate salary and other allowances. The HR department also uses the payroll function to calculate deducting relating to individual employees regards banks loans, retirement benefits, insurance covers and taxes. The payroll system also is used to produce drivers pay cheques that are used for depositing salaries in their bank accounts.

Future opportunities in K&S HRIS payroll function;

• Automatic deposit of salaries to drivers accounts.
• Generating tax reports
• Producing payroll reports.

Conclusion

HRIS systems have been highly adopted by organizations to assist in different human resource functions. The HRIS system enables organizations to capture, analyze, and use data of employees to make informed decisions. HRIS recruitment function has changed how companies attract, select, and appoint potential employees to be absorbed in the company workforce. Organizations are able reach more potential candidates and select appropriate employees for their company. This has increased the ability of organizations to acquire highly qualified employees. HRIS payroll function has also enhanced accuracy and reduced time spent in calculating and generating payrolls. K&S HR department has adopted some of the recruitment and payroll HRIS functions that has improved accuracy, accessibility and reduced amount of resources usage in executing HR functions. The Company has future opportunities in the HRIS system that can enable more integration of the HR functions in the organization.

References

Al-Azzam, Z. (2015). The Effect of Information System's on Quality Performance of Human Resource Management Functions Through Using Human Resource Information Systems in Banking Industry of Jordan. SSRN Electronic Journal.

Buzkan, H. (2016). The Role of Human Resource Information System (HRIS) in Organizations: A Review of Literature. Academic Journal of Interdisciplinary Studies.

Chen, W. (2014). A Framework for Human Resource Information Systems Based on Data Streams. International Journal of Hybrid Information Technology, 7(3), pp.177-186.

Flamholtz, E. (2009). Human Resource Accounting. Boston, MA: Springer US.

Hussain, Z., Wallace, J. and Cornelius, N. (2007). The use and impact of human resource information systems on human resource management professionals. Information & Management, 44(1), pp.74-89.

Ksgroup.com.au. (2017). - K&S Corporation Limited. [online] Available at: https://www.ksgroup.com.au/ [Accessed 25 Aug. 2017].

Ksgroup.com.au. (2017). » Career Opportunities - K&S Corporation Limited. [online] Available at: https://www.ksgroup.com.au/jobs.html [Accessed 25 Aug. 2017].

Poutanen, H. and Puhakka, V. (2010). The Many Sides of Human Resource Information Systems. International Journal of Technology and Human Interaction, 6(4), pp.1-13.

Zafar, H. (2013). Human resource information systems: Information security concerns for organizations. Human Resource Management Review, 23(1), pp.105-113.