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THE IMPACT OF HUMAN RESOURCES INFORMATION
SYSTEM IN THE PERFORMANCE OF BANKING INDUSTRY:
THE CASE STUDY OF NATIONAL MICROFINANCE BANK
TANZANIA LTD
THE IMPACT OF HUMAN RESOURCES INFORMATION
SYSTEM IN THE PERFORMANCE OF BANKING INDUSTRY:
THE CASE STUDY OF NATIONAL MICROFINANCE BANK
TANZANIA LTD
By
Luphurise E. Lema
Dissertation Submitted submitted In in Partial partial Fulfillmentfulfillment Ofof Requirements Forfor Thethe Award award oOf Thethe Degree Of of Masters Of of Science In in Human ResourcesManagement Of of Mzumbe University
2013
CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for acceptance by
the Mzumbe University, a dissertation entitled The Impact of Human Resources
Information System in the Performance of Banking Industry: The Case Study
National Microfinance Bank Tanzania Ltd, in the partial fulfillment of the
requirements for the award of the degree of Masters of Science in Human Resources
Management of Mzumbe University.
_____________________________Major Supervisor
______________________________Internal Examiner
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Acceptance for the Board of ……………………
________________________________________________________DEAN/DIRECTOR, FACULTY/DIRECTORATE/SCHOOL/BOARD
CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for acceptance by
the Mzumbe University, a dissertation entitled The Impact of Human Resources
Information System in the Performance of Banking Industry: The Case Study
National Microfinance Bank Tanzania Ltd, in the partial fulfillment of the
requirements for the award of the degree of Masters of Science in Human Resources
Management of Mzumbe University.
Signature
Major Supervisor
Signature
Internal Examiner
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Acceptance for the Board of
………………………
.
DEAN/DIRECTOR,
FACULTY/DIRECTORATE/SCHOOL/BOARD
DECLARATION
AND
COPYRIGHT
I, Luphurise Elias Lema, declare that this thesis is my own original work and that it has
not been presented and will not be presented to any other University for a similar or any
other degree award.
Signature
Date
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Comment [FK1]: I only see declaration in thispage. Nothing is presented on the copyright!
©
This dissertation is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactments, in that behalf, on
intellectual property. It may not be reproduced by any means in full or in part, except for
short extracts in fair dealings, for research or private study, critical scholarly review or
discourse with an acknowledgement, without the written permission of Mzumbe
University, on behalf of the author.
ACKNOWLEDGEMENTS
I would never have been able to finish my dissertation without the help of my God, he
has given me strength and power. Thank you my God.
I would like to express my deepest gratitude to my Supervisor, Dr. Flora Kessy, for
her tireless guidance, caring and patience that provided me with an excellent
atmosphere for doing this research. I would like to thank Dr. Madale, who challenged
me to work hard to ensure that I finalize the research on time.
I would also like to thank my friend Alice Lukindo who was always willing to help and
give her best advice on academic matters.
Many thanks to staff and my Superiors at NMB Plc. for providing requisite support in
the process of collecting all the data that were required for completion of my research.
I would also like to thank my husband Henry and my daughters Ivana, Benita and
Lisette for their support, encouragement and patience; they real stood up by me to make
this research a reality.
Finally, would like to thank my mother and my Pastor for their continuous prayers,
support and encouragement that helped me to complete this research.
DEDICATION
This dissertation is dedicated to my loving and supportive husband, Henry Mawere, our
sweet, and lovely daughters Ivana, Benita and Lisette, and to my encouraging mother
Ndeeshi Usiri.
ABSTRACT
Several organizations have adopted Human Resources Information System (HRIS) in
order to become competitive in this corporate world by easily retrieving information and
having paperless offices. The use of HRIS has been promoted as an opportunity for
human resource professionals to become strategic partners with management as it helps
to generate better information for decision-making.
This research examined the impact of HRIS to the performance of banking industry
NMB Plc. as case study whereby problems before adoption of HRIS, the benefits of
using HRIS, users perception of HRIS usage and challenges facing NMB Plc. after
HRIS adoption were identified. Questionnaires were used to collect data from a sample
of 81 respondents.
HRIS was mentioned to be useful in supporting activities such as identifying potential
employees, maintaining complete records on existing employees and creating programs
to develop employees’ talents’ and skills. Human resource systems help senior
management to identify the manpower requirements in order to meet the organization’s
long term business plans and strategic goals while middle management uses human
resources systems to monitor and analyze the recruitment, allocation and compensation
of employees. Nevertheless, some users see HRIS as a threat and some see it as a tool to
increase effectiveness and efficiency. Employees still do not see the impact of HRIS as
Comment [FK2]: I have reworked the abstractsubstantially. Accept the changes and read to see ifthe content especially the paragraph on the findingsreflect your findings.
modules like recruitment, training and development, performance and industrial relation
are missing in current HRIS.
Human Resource Information Systems may be an important tool for banking industries
to gain competitive advantage as HRIS is expected to reduce paper works, facilitates
decision making, streamline HR processes and procedures and to have accuratecy
employees information.
TABLE OF CONTENTS
CHAPTER ONE .......................................................................................................................... 2
INTRODUCTION ....................................................................................................................... 2
1.1 Background to the Problem
Statement…………………………………………………………………………………2
1.2 Statement of the Problem..................................................................................................... 11
1.3 Objectives of the Study ........................................................................................................ 13
1.3.1 General Objective.............................................................................................................. 13
1.3.2.Specific Objectives............................................................................................................ 13
1.4 Research Questions .............................................................................................................. 13
1.5 Scope of the Study ............................................................................................................... 14
1.6 Significance of Study ........................................................................................................... 14
CHAPTER TWO ........................................................................................................... 16161617
LITERATURE REVIEW............................................................................................... 16161617
2.1 Introduction .............................................................................................................. 16161617
Comment [FK3]: The table of contents must beupdated after addressing the final comments.
2.2 Human Resources Management................................................................................... 161617
2.2.1. Overview.......................................................................................................................... 18
2.2.2. Importance of Human Resource Management................................................................. 18
2.2.3 Challenges to Human Resources Management......................................................... 202021
2.3 Information System.................................................................................................. 22222223
2.4 Human Resources Information System........................................................................ 262526
2.4.2 Background of Human Resources Information System........................................ 28272728
2.4.3 Modules in Human Resource Management Systems.................................................... 3029
2.4.4 Advantages of using HRIS............................................................................................ 3433
2.4.5 Barriers of Human Resources Information Systems ................................................. 403739
2.6 Empirical Studies on Human Resources Information System ..................................... 424041
2.7 HRIS Implementation in Banking Industry in Tanzania.............................................. 444243
2.8 The Conceptual Framework......................................................................................... 454344
CHAPTER THREE............................................................................................................ 504749
RESEARCH METHODOLOGY....................................................................................... 504749
3.1 Introduction .................................................................................................................. 504749
3.2 Research Design........................................................................................................... 504849
3.3 The Study Area and Population ................................................................................... 514950
3.4 Sample Size and Sampling
Procedures………………………………………………………………………………42
3.5 Data collection Methods .............................................................................................. 545153
3.5.1 Primary Data ............................................................................................................. 545153
3.5.1.1 Interview ................................................................................................................ 545253
3.5.1.2 Questionnaire ......................................................................................................... 555254
3.5.2 Secondary Data ......................................................................................................... 555354
3.6 Data Analysis Procedures ............................................................................................ 565355
3.7 Limitation of the Study………………………………………………………………………………………………………56
CHAPTER FOUR…...…………………………………………………….……………56
PRESENTATION OF THE RESULTS AND DISCUSSION……………………...…..56
4.1 Introduction…………………………………………………………………………56
4.2 Characteristics of the Respondents………………………………………………….56
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4.3 Problems before the Adoption of HRIS…………………………………………….59
4.4 Benefits of Using HRIS at NMB Plc…….………………………………………….60
4.5 Users Perception on the Use of HRIS………………………………………………63
4.6 The Challenges Facing HRIS in NMB Plc…………………………………………64
CHAPTER FIVE………………………………………………………………………..67
SUMMARY OF THE FINDINGS, CONCLUSION ANDRECOMMENDATIONS……………………………………………………………….67
5.1 Summary of the Findings...…………………………………………………………67
5.2 Conclusion………………………………………………………………………….71
5.3 RECOMMENDATIONS…………………………………………………………..72
REFERENCES................................................................................................................... 777475
List of Tables
Table 1.1: National Microfinance Bank Stock Ownership
Table 3.1: The Expected and Actual Sample
Table 4.1: Demographic Distribution of Respondents
Table 4.2: Impact of Using HRIS at NMB Plc.
List of Figures
Figure 2.1: The Conceptual Framework
Comment [FK4]: Create list of tables and list offigures.
LIST ABBREVIATIONS
ERP Enterprise Resource Planning
HR Human Resources
HRIS Human Resources Information System
HRM Human Resources Management
HRMS Human Resources Management System
IT Information Technology
MIS Management Information System
NMB National Microfinance Bank
SLA Service Level Agreement
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CHAPTER ONE
INTRODUCTION
1.1 Background to the Problem Statement
Human Resource (HR) is considered to be organizations' most valuable asset. Human
Resource issues have been major concern for managers at all levels, because they all
meet goals through efforts of others, which require the effective and efficient
management of people (Dessler et al., 1999). In today's globalised world, the study of
Human Resources Management (HRM) has become very important field of study. For
businesses to be competitive in this corporate world they should ensure they have
competent and satisfied human resources. According to Prispevki (2011), satisfied
employees are a precondition for satisfied customers. This statement is of high
importance to banking industry where employees are constantly interacting with
customers. Business should ensure its employees are knowledgeable and skilled enough
to perform at accepted standards. The field of HRM can be characterized as having
encountered frequent and numerous innovations in technology (Ngai et al., 2008).
Nowadays, the introduction of Human Resources Information System (HRIS) in
organizations has made employee to be efficient and effective in achieving
organizational goals and objectives (Gupta, 2006). The adoption of HRIS in
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organizations has shown many advantages, but also some shortcomings have been
encountered on its implementation.
Organizations need Human Resources Information System due to several factors:
i. Large and complex organizations tend to employ a large number of
employees. Thus, employing HRIS will help to tackle their problems and
issues.
ii. If organizations are geographically dispersed they will need HRIS to manage
information from multiple locations. This also prevents inaccuracy
information and extra costs of managing HR.
iii. Modern systems of compensations are complex with many allowances and
deductions. HRIS can simplify such complexities. It helps employer to
comply with statutory requirements on easily retrieve of information for
decision making. Decision making is a critical activity in the organisation; if
it is not done properly it may lead to will make organisation to failure. HRIS
aids this process by helping HR Managers and Analysts to design
sophisticated reports and computer-based analytical tools which in turnthat
simplify managerial decision making.
v. The system is flexible and can include more specialized applications as per
business need. The applications can be e-recruitment and selection, online
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training and development, payroll, benefit administration, leave management,
performance appraisal and industrial relation.
The concept of Human Resources Information System has been derived from the
concept of Management Information Systems (MIS) whereby MIS is defined as
systematic collection, maintenance, and retrieving of data for providing support to the
operations, management, analysis and decision making functions in an organization
(Prasad, 2006). Human Resource Information System is a concept which utilizes the
development of Information Technology (IT) for effective management of the Human
Resource functions and applications. HRIS enables systematic procedure for collecting,
storing, maintaining, and recovering data required by the organizations about their
human resources, personnel activities and organizational characteristics. It acquires,
stores, manipulates, analyzes, retrieves, and distributes information about an
organization’s human resources.
HRIS helps organizations in managing all HR information. It helps in recording and
analyzing employees and organizational information and documents, such as employee
handbooks, emergency evacuation and safety procedures. It helps organizations to keep
an accurate, complete and updated database that can be retrieved from reports and
manuals. For instance, the University of Minnesota at Rochester generates a payroll
distribution report, which identifies university employees’ salaries from different
accounts such as academic department account, administrative department account and
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research grant account. Such a report typically takes thirty hours to generate, but through
HRIS it can be done in minutes by the end users (Singh et al., 2011).
According to Kundu (2012), in 1990s, the expectations were how HRIS can contribute
in organization’s HR strategic activities and help in business planning. Managements
feel that computer based HRIS can offer the real solution for retention of critical human
resource and its development. With an HRIS, the human resource department can
effortlessly manage employee’s data, whenever required supplementing it with computer
and web-based technology, allowing them to reallocate their energies towards more
important HR activities like implementing policies to achieve organization goals.
Given that this is a new technology in developing countries, it is imperative to explore
its performance. Before adoption of HRIS software, organizations should consider
several factors as implementing HRIS in organization is a big activity which require
support of many stakeholders such as functions approval, HR Managers and Analysts,
Software Vendors and project management team approval. The following hints should
also be considered before implementation of HRIS in an organization;
Understand HRIS software you are about to implement
Before implementation, both organizations and stakeholders involved should gather as
much information as they can on the software they are about to acquire. This will help
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both part to understand the performance of the software and the consequences of
acquiring it.
Determine your need
HR Management and analyst team involved in HRIS implementation team should be in
position to determine their needs, so that the software can be modified to cater those
needs. These needs can be documented in a paper for sign off between vendor and HR
Team. And this stands as reference point whenever the system does not perform as
expected.
Determine cost
The organisation should determine how much they should spend in the whole process of
HRIS implementation. OrganisationsOrganisations and stakeholders involved in
implementation should sit with vendor to understand how much money they are
supposed to pay. This will help organisations to check if this is within their budget or
not. Also it will aid organisations to look for another vendor in the market.
Choosing right HRIS software
Then after assessing the above points, organization should choose the right HRIS
software for it to evaluate its performance. During the evaluation, organization will be in
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position to decide on the best software that will cater their need. Also for the
organization to have the best choice they should ask for the demo. Demo will show how
system is performing.
Testing and training
After beingen satisfied with HRIS software, the organisation should test it in its
environment. If it is working properlysuccessfully, the organisation shouldwill acquire
the software. Then after software acquisition, the rest of HR and other department
employees can be trained on the useage of HRIS.
Feedback
After testing and training employees, the implementation team should collect feedback
from employees in order to understand the difficulties and their view on performance of
HRIS. These views will help the organisation's management to decide whether
employees need more training or to drop the HRIS implementation in question.
As function of HR Department in any organization is to provide services related to HR
to entire organization, same is the case with Human Resources Information System.
Also HR personnel themselves are using information generated from HRIS to make
various decisions. The users of HRIS include the followings:
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HR Professionals: HR Professionals use HRIS for different purposes like reporting and
compliance, payroll and compensation analysis, benefits administration,s and applicants
tracking and skills inventory.
Functional Managers: They use HRIS for performance management and appraisal,
management development, training and skills testing.
Individual Employees: Employees are using HRIS for Self-Services like benefits, leave
and absenteeism, career planning and training and development.
The Tanzania banking sector embarked on a plan for financial liberalization in 1992 in
order to sustain its economic growth. This has been accomplished through the
mobilization of financial resources as well as by increasing competition in the financial
market and by enhancing the quality and efficiency of credit allocation.
As a result of the liberalization, the banking sector in Tanzania has been booming,
particularly over the last few years. In year 2011, the Banking Survey done by Serengeti
Advisers revealed that Tanzania’s banks almost tripled the amount of assets they hold.
Assets expanded to 15.3 trillion shillings ($9.9 billion) by December 2010 from 5.5
trillion shillings in 2006. According to the same Survey, Tanzania’s three biggest banks
by assets were FBME Bank Ltd., CRDB Bank Plc and National Microfinance Bank Plc.
NMB Plc is a large financial services institution, providing commercial banking services
to individuals, small to medium sized corporate clients, as well as large businesses.
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NMB is one of the largest commercial banks in Tanzania, with a total asset valuation of
over US$1.41 billion (TZS:2.1 trillion), as of December, 2010. At that time, the bank's
shareholders' equity was valued at approximately US$155 million (TZS: 230.5 billion).
The stock of the bank is listed on the Dar es Salaam Stock Exchange, under the symbol:
NMB.
Initially NMB could only offer savings accounts, with limited lending capabilities. In
2005, NMB was privatized and the Government of Tanzania, the sole owner of NMB
until then, divested 49% shareholding to Rabobank of the Netherlands. Over the years
since that time, further divestiture by the Tanzanian Government and subsequent listing
of the bank's stock has led to a diversified ownership structure, as outlined in Table 1.1
below.
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Table 1.1: National Microfinance Bank Stock Ownership
Rank Name of Owner %e Ownership
1 Rabobank of the Netherlands 34.90%
2 Government of Tanzania 30.00%
3 Private Investors via DSE 21.00%
4 National Investment Company Limited (NICOL) 6.60%
5 Exim Bank (Tanzania) 5.80%
6 TCCIA Investment Company Limited 1.70%
TOTAL 100.00%
Source: NMB (2013)
The information obtained from NMB Website and NMB Manuals shows that currently
the bank maintains over 141 networked branches in all regions and districts of Tanzania.
This broad branch network distinguishes NMB from other financial institutions in
Tanzania. It is committed to sustaining and enhancing its branch network in order to
provide access to capital to citizens in all areas of Tanzania, including the most remote.
NMB has more than 2600 employees. NMB also has more than 1,600,000 customers. It
Comment [FK5]: This table looks ugly. Redrawthe table in the same format as the tables presentedin the findings chapter.
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also has 440 ATMs. In Tanzania NMB is ranked as number one for Number of ATMs
and Branch Network, it is ranked number two for Deposits and number one for staff
costs .
This study therefore, aims at examining the impact of using Human Resources
Information System in National Microfinance Bank. This isn one of the giant banks in
the country which necessitates adoption of HRIS in order to improve delivery of services
to its clients.
1.2 Statement of the Problem
Tanzania Banking Industry has grown overtime and hence needs more efforts to keep it
at the same pace (Serengeti Advisers, 2011). For Banking Industry to continue to shine,
it will require to have information that is reliable, accurate and timely to make effective
decisions. Also it will require competent human resources to support its functions in
effective and efficient manner, as it is known nowadays that human resources have
become valuable organization asset as they provide their skills, experience and talents to
the organization which facilitate attainment of its objectives.
Several organizations have adopted HRIS in order to become competitive in this
corporate world by easily retrieving information and having paperless offices. The use of
HRIS has been promoted as an opportunity for HR professionals to become strategic
12
partners with management as it helps HR function to become more efficient and to
provide better information for decision-making.
According to Sing et al. (2011), the introduction of HRIS in banking industry has
emerged as important interdisciplinary to achieve Human Resources objectives.
Customer satisfaction is the banks’ "competitive advantage." Nowadays, customers are
no longer satisfied only with the availability of a product; they seek active
communication with the banks’ employees. Therefore, the banks are starting to focus on
the values they can get from their employees. HRIS has transformed banks’ financial as
well as non-financial processes from manual to automatic computerized systems (Singh
et al., 2011).
National Microfinance Bank (NMB Plc) adopted HRIS in 2006 after the old manual
system failed to simplify the work and Human Resources as a function was inefficiency
wasting a lot of time on paper works which in turn provided inaccuracy information.
Management decided to adopt this new system as it was facing several challenges
including a lot of paperwork processing, inadequate information flow, slow speed on
querying information, flow of wrong information etc. The new system is expected to
address these issues which will increase efficiency in meeting customers' expectations.
It is imperative therefore to explore thoroughly the impact that Human Resources
Information Systems has had at NMB Bank Plc. The study examined the benefits that
the HRIS system has brought to NMB and the users reaction on HRIS implementations
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and usage. It also went further by comparing the NMB HR processes and performance
before and after HRIS adoption.
1.3 Objectives of the Study
1.3.1 General Objective
The general objective of the study was to assess the impact of using HRIS at NMB (T)
Ltd.
1.3.2 Specific Objectives
i. To establish the problems that NMB had before adoption of HRIS.
ii. To examine the benefits of using HRIS at NMB
iii. To evaluate the users perceptions on the use of HRIS.
iv. To identify the challenges that are facing HRIS in NMB Banks
1.4 Research Questions
i. What were the problems that NMB was facing before the introduction of
HRIS?
ii. What are the benefits of using HRSI at NMB Bank?
iii. What are the users’ perceptions on the use of HRIS?
iv. What are the challenges faced in the implementation of HRIS?
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1.5 Scope of the Study
The research covered only one banking industry, NMB Tanzania Ltd. The study was
conducted in Dar es Salaam. NMB upcountry offices are excluded due to limitation of
finances and time. The NMB Head Office located at Samora Avenue and NMB House
and Bank House branches within Dar es Salaam city were the source of data. The results
of proposed study may not be representative of all banks in Tanzania but may be used to
shade light on the application of HRIS in the banking industry.
1.6 Significance of Study
The study intends to disclose the impacts of adoption of Human Resources Information
System in banking industry by specifically considering NMB Bank Plc. The study is
projected to be of much worth to different number of people as follows:
i. It will help the HR professionals and management to realize the benefits of
adoption of HRIS to their organization.
ii. It is intended to make banking industry to understand the importance of using
HRIS in facilitating its functions.
Comment [FK6]: Provide the names of thosetwo branches.
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iii. The findings will help the management of NMB Bank to uncover the
challenges facing the implementation of HRIS and devise strategies to
address them.
iv. It can be used by other researchers for them to identify the gap for further
research and also to be used as reference material for future researchers.
1.7 Organization of the Dissertation
This Dissertation is arranged as follows:, in next chapter the literature review on the
several topic of the study has been done which covers topics on the concept of Human
Resources Management, Information System, Human Resources Information Systems.
An overview of both HRM and HRIS will be provided in this chapter, also background,
advantages and drawbacks of Human Resources Information System and will be
explained in detail. Also review on relevant theories, empirical studies on HRIS and
Conceptual framework will be presented in this chapter.
In Chapter three the methods that were used during the study will be described. It covers
the study area, research design, population, sample size and sampling procedure, data
collection methods, data collections instruments and data analysis procedures.
In chapter four the information obtained from the study is analyzed, discussed and then
interpreted.
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Then, chapter five Conclusion and Recommendation of the study were provided. Where
summary of finding will be presented and researcher views on the study will be
provided.
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter provides a literature review of the several topics related to the area of this
study. It covers topics on the concept of Human Resources Management, Information
System, Human Resources Information Systems. An overview of both HRM and HRIS
will be provided in this chapter, also background, advantages and drawbacks of Human
Resources Information System and will be explained in detail.
2.2 Human Resources Management
2.2.1 Overview
Human Resources Management is defined as a strategic and coherent approach to the
management of an organization`s most valued assets-the people working there who
individually and collectively contribute to the achievement of its objectives (Armstrong,
2006). Also Human Resources Management can be regarded as set or interrelated
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17
policies with ideological and philosophical underpinning (Storey, 1989). Human
Resources activities include:
i. Selection consists of the processes involved in choosing from applicants a
suitable candidate to fill a post.
ii. Appraisal also known as performance evaluation is a systematic and periodic
process that assesses an individual employee’s job performance and
productivity in relation to certain pre-established criteria and organizational
objectives. Other aspects of individual employees are considered as well,
such as organizational citizenship behavior, accomplishments, potential for
future improvement, strengths and weaknesses, etc. A Performance Appraisal
is typically conducted annually.
iii. Rewards is one of under-utilized and mishandled managerial tools for driving
performance, it must reward short and long term achievements, bearing in
mind that business must perform atin the present to succeed in the future.
iv. Development as a concept in this contextthis means developing employees.
Encouraging employees to acquire new or advanced skills, knowledge, and
viewpoints. It can be by coaching and mentoring.
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2.2.2 Importance of Human Resource Management
There are various benefits of proper human resource management are many. An
organization cannot build a good team of working professionals without it. The key
functions of the HR management team include recruiting people, training them,
performance appraisals, motivating employees as well as workplace communication,
workplace safety, and much more. The beneficial effects of these functions are discussed
hereunder;
Recruitment and Training
This is one of the major responsibilities of the human resource team. The HR managers
comes up with plans and strategies for hiring the right kind of people. They design the
criteria which is best suited for a specific job description. Their other tasks related to
recruitment include formulating the obligations of an employee and the scope of tasks
assigned to him or her. Based on these two factors, the contract of an employee with the
company is prepared. When needed, they also provide training to the employees
according to the requirements of the organization. Thus, the staff members get the
opportunitiesy to sharpen their existing skills or develop specialized skills which in turn,
will help them to take up some new roles.
Performance Appraisals
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Human resource management team encourages the people working in an organization, to
work according to their potential and gives them suggestions that can help them to bring
about improvement in it. The team communicates with the staff individually from time
to time and provideteam communicates with the staff individually from time to time and
provides all the necessary information regarding their performances and also defines
their respective roles. This is beneficial as it enables them to form an outline of their
anticipated goals in much clearer terms and thereby, helps them execute the goals with
best possible efforts. Performance appraisals, when taken on a regular basis, motivate
the employees.
Maintaining Work Atmosphere
This is a vital aspect of human resource management because the performance of an
individual in an organization is largely driven by the work atmosphere or work culture
that prevails at the workplace. A good working condition is one of the benefits that the
employees can expect from an efficient human resource team. A safe, clean and healthy
environment can bring out the best in an employee. A congenial atmosphere gives the
staff members job satisfaction as well.
Managing Disputes
In an organization, there are several issues on which disputes may arise between the
employees and the employers. You can say conflicts are almost inevitable. In such a
20
scenario, it is the role of human resource department thatwhich acts as a consultant and
mediator to sort out those issues in an effective manner. They first hear the grievances of
the employees. Then they come up with suitable solutions to sort them out. In other
words, they take timely action and prevent things from going out of hands.
Developing Public Relations
The responsibility of establishing good public relations lies with the human resource
management to a great extent. They organize business meetings, seminars and various
official gatherings on behalf of the company in order to build up relationships with other
business sectors. Sometimes, the HR department plays an active role in preparing the
business and marketing plans for the organization too.
Any organization, without a proper setup for human resource management is bound to
suffer from serious problems while managing its regular activities. For this reason,
today, companies give a lot of stress for setting up of a strong and effective human
resource management system.
2.2.3 Challenges to Human Resources Management
2.2.3
Globalization, organizations required to move people, ideas, products and information
around the world to meet local needs. When making strategy new and important
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21
ingredients must added, volatile political situations, fluctuating exchange rates and new
cultures. Profitability, the drive of revenue growth means that companies must be
creative and innovative and this means encouraging the free of flow of information and
shared learning among employees.
Technology, it is very important fordynamic an organization to be competitive that it
must adopt new technology. If organization is at startup point or small it will struggle to
survive this competition as costs for implementing new technology is high. Sometimes
only big and profit making organization can afford to acquire new technology. Also
some big and profit making organization sometime struggles to keep up the pace with
changing technologies, as technological environment is very dynamic nowadays. Every
time we are seeing new computers, tablets and softwares invented in the market, for
organization to afford this trend it must be fit financially and well prepared.
Intellectual capital, Businesses should ensure they find, select, compensate and retain
human capital in the shape of talented individuals who can run global organization that
is both responsible to its customers and burgeoning opportunities of technology.
Organisation should ensure they hire competent, skilled and talented employees,
retaining these kinds of employees is very expensive as every company is looking for
such kind of employees. Therefore if organization intendsaimed to be competitive it
should be ready to compensate them well, if they did not they will be poached by
another employers.
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Change, this is the great challenge that business are facing on adjusting to nonstop
change, they should learn rapidly and continuously. In today globalized world changes
are inevitable they are in every aspect from technology to organization systems,
organization should either learn to cope with it or quite and fail. Organization introduces
change due to economical or environmental changes. Some organization are faced to
embrace the change to survive hard times due to global economic meltdown Seun
(2009).Organization should be alerted that change is expensive and sometimes can bring
job loss, low morale and inefficiency in an organization.
2.3 Information System
Information systems defined as all people, machines and activities aimed at the
gathering and processing of data to supply the information need of people inside and
outside the organization. There are a lot of different information systems that combine
different types. They all have different purposes.
Executive Information System
An Executive Information System (EIS) is a type of management information system
intended to facilitate and support the information and decision-making needs of senior
executives by providing easy access to both internal and external information relevant to
meeting the strategic goals of the organization. It is commonly considered as a
specialized form of a Decision Support System (DSS).
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Decision Support Systems
Decision Support Systems (DSS) are a specific class of computerized information
systems that supports business and organizational decision-making activities. A
properly-designed DSS is an interactive software-based system intended to help decision
makers compile useful information from raw data, documents, personal knowledge,
and/or business models to identify and solve problems and make decisions.
Management Reporting Systems
Management Reporting Systems are intended to provide aggregated data about the
performance of the organization. Usually these are created from data generated by the
knowledge or operational layers of information systems.
Business Intelligence Systems
Business Intelligence (BI) refers to skills, technologies, applications and practices used
to help a business acquire a better understanding of its commercial context. Business
intelligence may also refer to the collected information itself.
BI technologies provide historical, current, and predictive views of business operations.
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Common functions of business intelligence technologies are reporting, analytics, data
mining, business performance management, benchmarks, text mining, and predictive
analytics.
Popular closed source (e.g. Business Objects (SAP) or Cognos) and open source (e.g.
JasperSoft or Pentaho) software often have the functionality that can provide
information for the different types of information systems that are shown in the pyramid.
Office Information Systems
Office Information Systems provide information to the organization that is not directly
available from operational support systems. Often this is textual data (e.g. Office-
documents or E-mail), but it can also be a CRM (Customer Relationship Management)
system. Intranet and wiki's are very popular applications of these.
Knowledge Management Systems
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Knowledge Management Systems are meant to facilitate knowledge management in an
organization. As described in our approach and in the knowledge creation cycle they are
only part (although very important) of a knowledge management strategy. It is not an
Office Information System as is often thought and should be smaller in size than Office
Information System. If implemented and used properly they can be considered as force
multipliers for an organization.
Transaction Processing Systems
A Transaction Processing System is a set of information which processes the data
transaction in database system that monitors transaction programs (a special kind of
program). The essence of a transaction program is that it manages data that must be left
in a consistent state. These are usually databases.
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2.4 Human Resources Information System
2.4.1 Overview
Human Resources Information System defined as a computerized human resources
information system consists of a fully
intergratedintegrated, organization-wide network of HR-related data, information,
services, databases, tools and transactions (Kelly & Reilly, 2003). According to
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Hedrickson (2003: 381) “HRIS can be briefly defined as integrated systems used to
gather, store and analyze information regarding an organization’s human resources.”
Fully integrated organizational HRIS ought to interface with other systems enabling and
enhancing the communication between departments such as payroll system with
accounting system. “HRIS is not limited to the computer hardware and software
applications that comprise the technical part of the system: it also includes the people,
policies, procedures and data required to manage the HR function (Hedrickson, 2003).
Human Resource Information System (HRIS) is one of the most important Management
Information Systems, which contributes to human resource administration functions of
an organization. Modern HRIS needs to help organisations by automating most of the
HR planning functions. HRIS becomes an important strategic tool since it collects,
manages and reports information for decision-making.
Martinsons (1994) as cited by Ngai (2006) classified HRIS into two types according to
their usage: ―unsophisticated and ―sophisticated. Payroll and benefits administration,
and employee absence records keeping electronically is listed as ―unsophisticated since
it is an electronic replication of the contents of the HR department‘s manual files. He
called this simple minded automation. Use of IS in recruitment and selection, training
and development, HR planning and performance appraisal, is classified as sophisticated
since those support decisions which involve expert judgements. A quality-based strategy
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is similar to an expert systems approach. Innovation strategy matched with decision
support systems.
According to a survey conducted in 1998, Ball (2001) showed that 60 percent of Fortune
500 companies used the HRIS to support daily human resource management (HRM)
operations. He classified HRIS according to administrative and analytical aspects and
predicted out though HRIS was used for administrative purposes, the trend would be to
use it for analytical purposes.
2.4.2 Background of Human Resources Information System
Before WWII HR, then called personnel, was limited to employee record keeping and
was provided as a service to the organization. There was no HRIS and personnel record
keeping was done by manually by hand, often times utilizing a system as simple as an
index card file. The personnel department was typically small with little power and
limited interaction with the organization’s business mission (Hendrickson, 2003).
After WWII organizations became more conscious of human resources issues
recognizing the importance of employee morale. Record keeping was still done
manually, the existing HR information systems before 1960 provide slightly change
compared to the early systems. In the late 1960’s and 1970’s the term “human resource
management” gained common usage in place of the term “personnel” and by 1974 the
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new term, human resource management, was appearing in media headlines and was
eventually shortened to just “HR.”
According to Hendrickson (2003) In the late 1960’s and 1970’s the term “human
resource management” gained common usage in place of the term “personnel” and by
1974 the new term, human resource management, was appearing in media headlines and
was eventually shortened to just “HR.” From the 60’s to the 80’s organizations firmly
integrated HR into their core business missions. The regulatory reporting requirements
for employees increased significantly. Large organizations used mainframe computers to
maintain organization data bases and technology based HRIS provided an efficient
solution for the increased record-keeping and reporting required by government
regulation. The human resources department became one of the most important users of
the organization’s computer systems, though the primary task was still record-keeping.
HRIS has evolved from simple record-keeping to complex analytical tools to assist
management decision making and large and small businesses are utilizing HRIS.
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2.4.3 Modules in Human Resource Management Systems
The Human Resource Management Systems is comprised of 12 modules as follows;
payroll; time and attendance; appraisal performance; benefits administration; HR
management information system; recruiting; learning management system; performance
record; employee self-service; scheduling; absence management; and disciplinary.
The payroll module automates the pay process by gathering data on employee time and
attendance, calculating various deductions and taxes, and generating periodic pay
cheques and employee tax reports. Data is generally fed from the human resources and
time keeping modules to calculate automatic deposit and manual cheque writing
capabilities.
Time and attendance module gathers standardized time and work related efforts. The
most advanced modules provide broad flexibility in data collection methods, labor
distribution capabilities and data analysis features. Cost analysis and efficiency metrics
are the primary functions. Benefits administration module provides a system for
organizations to administer and track employee participation in benefits programs. These
typically encompass insurance, compensation, profit sharing and retirement.
The HR management module is a component covering many other HR aspects from
application to retirement. The system records basic demographic and address data,
selection, training and development, capabilities and skills management, compensation
planning records and other related activities. Online Recruiting has become one of the
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primary methods employed by HR departments to obtain potential candidates for
available positions within and outside an organization.
Training module provides a system for organizations to administer and track employee
training and development efforts. The system, normally called a Learning Management
System (LMS) if a standalone product, allows HR to track education, qualifications and
skills of the employees, as well as outlining what training courses, books, CDs, web
based learning or materials are available to develop which skills. Courses can then be
offered in date specific sessions, with delegates and training resources being mapped and
managed within the same system. Sophisticated LMS allow managers to approve
training, budgets and calendars alongside performance management and appraisal
metrics.
Employee Self-Service module allows employees to query HR related data and perform
some HR transactions over the system. Employees may query their attendance record
from the system without asking the information from HR personnel. The module also
gives access tolets supervisors to approve overtime requests from their subordinates
through the system without overloading the task on HR department. Also through this
module employees can apply leave online and line managers can approve online.
Disciplinary module maintains disciplinary records of employees .For example if
employee apply for a certain privilege if he has a disciplinary issue the system can alert
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the line manager therefore the request will be rejected as in most of organization tends to
limit some privilege to employee with disciplinary issues.
An effective HRIS must have the following features;
Meets business needs
A good HRIS must be able to meet the need of organisation. If organisation require
certain modules like payroll, benefits and compensation ,attendance management, leave
management, recruitment, training and development ,employees database and reporting
tools ,HRIS must cater those needs. Some organizations require online training through
Learning Management System which is linked to HRIS, therefore HRIS software chosen
should be in position to accommodate this requirement.
User-friendliness
The HRIS must be user-friendly which means not too complicated in such a way that
users find difficulties to use it. HRIS should be free of technical jargon for it to be used
by novice users, who are not technical skilled. Further, it should also be built under
attractive graphic user interface that motivates its users. This can include colorful icons
and applications.
Good reporting facilities
An effective HRIS should be able to provide good reporting facilities that aids in
managerial decision making. Nowadays managements are interested in analytical
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information which is provided by HR Dashboards which is a part of reporting tools in
some HRIS Software. Dashboards provide an overview of HR Function as a whole.
Flexibility
HRIS must be flexible to adopt an additional and sometimes to drop module at any given
time.
Also it should be able to incorporate any additional changes when needs arises. For
example if an organization add a new department, HRIS must be in position to
accommodate this additional changes. Also if organization recategorises some of its
departments, job roles and grades, HRIS must be in position to accommodate theseis
amendments.
Value for money
A good HRIS is the one perform with minimum maintenance cost and provide returns
on invested capital. Therefore, management should develop a list of key indicators and
Return on Investment measurement methodology that would enable it to estimate
benefits of HRIS more easily.
Good supplier support
A good HRIS is the one with vendor support every time when the need or problem
arises. The vendor technician must be in touch with an organisations everytime to offer
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any support needed. After sales service is very important as it will prevent failure of
HRIS implementation.
Reliability
An effective HRIS is expected to have consistentcy performance and it should always
beis always dependable reliable with regardless ofto the situation. The adopted system
must be reliable, maintaining the same standard all the time. HRIS implementation team
should test the reliability of system before selection, this will help to avoid problems that
may arise in future.
2.4.4 Advantages of using HRIS
Employee Self Service capability
It is more self-service, employees have complete control over the HR services they
require for example training, benefits enrollment and leave applications. Employees will
be in position to view their profile in HRIS if it is correct and inform the HR Analysts to
update the missing information or deleting the outdated information. Through employees
self service employees will apply leave and receive approval from their seniors. Other
benefits can be done through employees self service also for example loan applications
and salary advances.
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Formatted: Font: Italic
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Paperless employment office
HRIS helps to minimize paperwork by automating and integrating HR functions.
Automation helps HRIS to achieve basic purpose of cost and time reduction. Paperwork
can be reduced at highest level as most of routine works are automated.
Closer monitoring of employees work
Line Managers and Management can easily monitor employees work as most of
functions are integrated to HRIS, therefore they can view reports onf Training Need
Assessment, abseetismabsentees, employee who qualify for overtime, employees on
leave and current status of employee.
Reporting
Perhaps the biggest benefit that the use of an HRIS system adds to a business is its
ability to create reports and presentations. An HRIS system typically holds all
information surrounding the firm’s human resources initiatives, including details
regarding the group's hiring practices, such as a comprehensive listing of all job
applicants, an up-to-date index of job openings and electronic copies of each employee’s
on boarding paperwork. It also holds data regarding the salary and incentive
compensation of each staff member. Results of annual performance appraisals and any
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disciplinary actions that have been taken toward members of the team are included, as
well. Because these figures are held in one database, a business owner possesses the
capability of running a variety of detailed reports that encompass some or all of this
information. For example, when looking to hire additional staff, he can run a report of
past candidates who possess a specific skill set. Alternatively, he can run a compensation
report to obtain needed information when preparing the annual budget.
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Recruitments
In support of a firm’s staffing efforts, many HRIS systems provide a sophisticated
interface allowing its use by both internal employees, as well as external job applicants.
An HRIS system allows candidates for open positions to submit their resumes and
contact information to a potential employer from a remote computer. The system then
collects the information and archives it so it is easily accessible by the hiring manager.
When seeking candidates, the manager is able to perform detailed searches of collected
resumes, using a variety of queries, including location, level of education, years of
professional experience and technical skill set. In addition, the software also allows
current employees to electronically apply for new positions
Benefit Administration
An HRIS system allows a business to streamline the administration of employee
benefits. In many cases, employees and new hires may electronically enroll in benefit
plans. They may also have the capability of logging onto the system to monitor and
update their current coverage throughout the year, changing status, dependent
information and contact data as required. A self-service system allows for benefits to be
efficiently administered with as little manpower as possible, saving an organizations
time and money.
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Ease of Use
Some of the benefits of using human resource information systems are obvious. By
replacing the convoluted, archaic methods of paper filing with an easy to navigate
computer system, you'll save countless hours of work. There's no more searching for a
specific employee's payroll information from eight months ago-a simple search or a few
clicks of your mouse and you'll have the information at your fingertips.
Automation
Most of the works done in HR department can take time that we expect or realize. One
of the major benefit that organisation will get by using HRIS is that HR duties can be
automated. Automation easy their work and reduce paper works, for example Payroll
was taking several hours to key in data and executing information, HRIS can
automatically run payroll within few seconds. The automation has help HR
Professionals to focus on other business matters.
Reports and Data
One of the key benefits of using human resource information systems in your business is
the sheer amount of data that can be catalogued, and the ability of the system to deliver
reports to you quickly and accurately. Your system will house practically all data
relating to your company. From hiring records, tax information, insurance benefits,
employee attendance, and much more. You can view detailedr reports on countless
different areas of your business with a few mouse clicks. For example, if you have a new
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job opening you can quickly review the applications in file and find the applicant who
fits the job the best. Or you can review reports detailing attendance records for all of
your employees, letting you see how motivated your workers are.
Transformation of HR to customer focused function
HRIS help to transform HR department to customer oriented function, as the time
consumed in administrative work is minimized giving time to focus on the business need
of customer satisfaction. Though HR does not meet customers directly it create
environment that support other functions so that the business goal can be achieve.
Services that fit new world of work and that are attractive to current and future staff,
HRIS offers services that are congruent to today’s world which is attractive to internal
staff and prospective staff. For example not every organisation apply leave online, most
of staff would prefer to work with advanced technology organization.
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2.4.5 Barriers of Human Resources Information Systems
Initial investment involved in installing HRIS is high. It can only be necessary for large
and complex organization but luxury for small organizations unless others
Organizational functions are computerized and linked to HRIS. Ngai et al. (2006) found
costs to be main barrier to the implementation of HRIS.
The need for data control is another potential disadvantage of an HRMS. This data
control extends beyond unauthorized access of employee private information. An
organization using an HRIS must employ its own set of technical staff to program,
troubleshoot, update and support the system. While an HRMS may help an organization
reduce the cost of HR. Computer literate users are needed to use HRIS, because users
must be aware of how information form computerized HRSI is retrieved
Furthermore, a HRMS is also only as good as its human programmers and end users.
People with high-level access, such as people who update an HR master file, may enter
the wrong information deliberately or in error. If data is improperly updated, changed or
lost, an organization can face government fines and other costs associated with damage
to the HR master file. Pick a system with lots of internal controls so that one employee
cannot make changes to your company's master file.
Moreverer when an organization collects personal data about its employees in an
HRMS, certain security risks may arise. An organization spends funds to keep employee
private information secure against internal and external threats. One disadvantage of an
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electronic HRMS is that an organization must collect information about who accesses
employee private information. This data requires follow up with an audit process, which
could result in disciplining or prosecuting an employee who accesses employee data
without authorization or without an official purpose. If there is no proper control and
security there is threat for sensitive information to be accessed by unauthorized user.
Not only that but also implementation of HRIS sometimes depends with organizational
culture and politics, the way some organisations are doing things does not give room on
the acquiring of HRIS. Management interest can conflict with HRIS Implementation,
therefore management will not approve its implementation. On top of that, as HRIS is
new technology in the market, there are also few analytical candidate in the market,
therefore some organization have implemented HRIS but find difficult to get proper
skills .
2.5 Review of Relevant Theories
Recent debates about technology and organization have highlighted the importance of
social context and sought to develop frameworks which acknowledge both material and
social character of technologies including HRIS (Dery, 2006). Accordingly, theories
which can be considered as ‘social constructivist’ can play an important role in the study
of technology as they explicitly recognise that technologies, such as HRIS, cannot be
evaluated and analysed without having an explicit understanding of the context of
42
individuals and groups which consequently comprehend, interpret, use and engage with
the technology (Kristine et al., 2006).
According to Mueller et al. (2010) promising theories for the elicitation of HRIS design
characteristics are, among others, the Technology Acceptance Model as well as the
DeLone and McLean Model of IS Success. The Technology Acceptance Model as well
as the DeLone and McLean Model of IS Success comprehensively illustrate (inter-
)relationships between system- and information-related design characteristics and
important measures relevant to HRIS success (e.g. individual productivity, satisfaction
or usefulness/ease of use while using HRIS. However, due to its comprehensiveness and
robustness, the application of the DeLone and McLean Model of IS Success is
particularly recommended for a theoretically grounded elicitation of system- and
information-related HRIS design characteristics. The outcome of such an elicitation
procedure may consists of comprehensive sets of system- and information-related HRIS
design characteristics which subsequently could be applied in the realm of
(experimental/large-scaled)empirical studies.
2.6 Empirical Studies on Human Resources Information System
Study conducted by Mwanyika (2009) at CRDB Bank Plc., a case study method was
used. Her study reveals that the impact of HRIS in performing HR functions and
procedures are encouraging, but mixed. Employees are satisfied by HRIS, but do not see
benefits from its usage rather than effects on information sharing. Also it reveal that
43
HRIS was not fully utilized as only 14.2% respondents used the system and other
modules of the system was not used. Also he find out that users need more training on
the system, as they believe that additional and better training would lead to better results.
Another study by Shoo (2000) at Tanzania Postal Bank, a case study method was used.
His study revealed that the presence of Management Information System (MIS) in the
organization help to strengthen the management practices though providing information
which enabled management and employees to perform their duties easily. About 86% of
respondents they are satisfied with adoption of MIS that it is playing a major role in
improving human resources management.
Sanaa (2008) made a study on the factors influencing adoption of Human Resources
Information Systems among Private companies in Yemen, he find out that adoption of
HRIS made an organization to be competitive, to have a reliable operation, cost effective
and enhance performance appraisal, hence increase employee morale. Also in his study
he find out some barriers in the adoption of Human resources information system which
are resistance to change by employees whereby they don’t want to adopt new system,
employee with low academic qualification also are barrier to adoption of the system and
it is not feasible in the small organization.
Hussein (2008) conducted a case study on The role of Human Resources Information
System in improving Management of Resources in Public Sector at President`s Office-
Public Services Management, she revealed that despite an appealing establishment level
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of computerization and Human Resources Information System adoption the HRIS has
not yet been effective in improving management of human resources in Public Sector.
Hanadi (2010) provide the results of the study (152) respondents at the four Jordanian
Mobile Companies revealed that HRIS are largely used in strategic human resources
planning at these companies. Also strategic human resources planners recognize the
importance of using human resource information systems in their strategic human
resources planning. At the same time the respondents at the four mobile companies
believe that there are several benefits of using HRIS in strategic human resources
planning. They also identified several perceived obstacles limiting the use of HRIS more
effectively in strategic human resources planning at their companies. At the same time
there are significant relationships between some personal, company variables
(educational levels, working experience & HRIS budget) and the utilization of human
resource information systems at these companies. Finally, there is significant impact of
Human resource information systems (HRIS) on strategic human resources planning at
Jordanian mobile companies especially in the recruitment process and career planning.
2.7 HRIS Implementation in Banking Industry in Tanzania
The deployment of Human Resource Information System (HRIS) in banking is the fruit
of development of Information Technology (IT). It has emerged as an important
interdisciplinary tool to achieve vital organizational Human Resource (HR) objectives.
In Tanzania the banking industry has gone from a basic process to convert manual
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information keeping systems into computerized systems. HRIS has become a vital tool
to IT enable HR processes.
In recent times, the financial as well as non-financial processes of banks have undergone
significant transformation. The manual system adopted by the banks was the cause of
procedural delays, outdated as well as inaccurate information, improper documentation,
higher expense of storing files and their safety. HRIS has transformed banks financial as
well as non-financial processes from manual to automatic computerized systems. Banks
are able to integrate different HR functions by using third generation of feature-rich,
broad-based and self-contained HRIS (Singh et al., 2011). Many Banks in Tanzania have
adopted HRIS to mention a few these banks are Barclays Bank, CRDB, NMB Plc.
Tanzania Postal Bank and Standard Chartered Bank.
2.8 The Conceptual Framework
After reviewing several studies, findings indicate that HRIS has been well embraced by
many organizations globally. Some organizations are using old version of system and
other current version which have more interesting features. The implications are, HRIS
is vital in managing human resources for them to improve their performance and achieve
organizational goal.
For an organization to achieve its goal it should strive to integrate its human resources
management activities with business strategy. HRIS play a vital role in integrating
46
human resources management activities with organizational goal. Therefore there is a
relationship between functions of HRM and HRIS used. Decisions depend on relevant,
reliable and timely information. Lack of HRIS will lead to ineffiency and ineffective
organization. Figure 2.1 provides the conceptual framework for the study.
For this study some variables have been identified which include all human resourse
management activities like staffing, recruitment and selection, training and development,
retaining and appraising. How these activities can be integrated with HRIS to make an
organisation competitive. For organisation to be competitive it should have reduced
costs, automated HR process, and have easily retrieval of information.
Ngai et al. (2006) studied how HRIS reduced the cost of an organisation. How it
maintained customer satisfaction, improved quality, and innovations. Almost all the HR
applications involve the automating of HRM activities. Furthermore Ngai and Wat
(2006) showed how the accuracy and timeliness of HRIS varied according to operating,
controlling, and planning HR activities. Due to technological evolution in mid 1990s,
HRIS has shaped the need for and the nature of human resource planning within
organisations.
Independent variables are human resource management activities which are staffing,
recruitment and selection, training and development, compensation and benefits, and
appraisal. The dependent variable is competitive organisation which will be attained
47
through reduced cost, easily information retrieval, maintainance of customer
satisfaction, quality services and products and motivated employees.
Nevertheless, organization cannot be competitive by having HRIS only there are other
factors involved like strategic focus, competent and motivated employees, customer
satisfactions, quality products and services and running capital.
The conceptual framework variables are explained here under;
Staffing
Organisation should ensure it follow all procedures to obtain right candidate for the job,
it can be by advertising in different places like newspaper and through recruitment
agency, also it can be online advertisement through organisation web.
Recruitment and Selection
The organization should have good method that ensures they get bring right candidates
onboard. The online recruitment and selection is an added advantage for it will assist to
provide wide range of skills and talents from different parts of the world. It gives wide
range of choice that they consider for the positions. Expatriate can be obtained easily by
having HRIS that is linked to e-recruitment This method reduces time taken to hire
employee, costs involved will be minimum, as papers and venues has been taken out.
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Training and Development
Employees in organization need time to time training for them to perform according to
acceptable standard. If organization invest in training as it should the higher cost will be
incurred. For it to work at minimum costs organization needs to link HRIS to e-learning,
so that employees will do training online. This will minimize unnecessary costs like
travelling, venue, foods and accommodation.
Compensation and Benefits
HRIS will facilitates the compensation and benefits to operate very smooth as every
employees will be in position to access his payslip online, to apply for loans, and to see
all other benefits that he is entitled to.
Performance and Appraisal
Employees performance will be tracked online for example for employees at customer
facing units, to check whether they have met target or not. Also it will help to track the
absenteeism and hence help management to appraise their employee.
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Figure 2.1: The Conceptual Framework
Source: Constructed by the Researcher (2013)
Staffing
Recruitment
Selection
Training andDevelopment
Compensation andBenefits
Appraisal
Strategic Focus
Competent andmotivatedemployees
CustomerSatisfactions
Qualityproducts andservices
RunningCapital
HRIS Adoption
CompetitiveOrganization
Other Factors
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
Research methods entail research techniques or procedures used to gather and analyse
data. In other words methods can include both qualitative and quantitative data
collection techniques (Adam and Kamuzora, 2008). This chapter provides the methods
that were used during the study. It covers the study area, research design, population,
sample size and sampling procedure, data collection methods, data collections
instruments and data analysis procedures.
3.2 Research Design
Research design according to Adam and Kamuzora (2008) is defined as the detailed
blueprint used to guide a research study toward its objectives. It is detailed plan of work
to be done to achieve the research objectives. It constituents blueprint for the collection,
measurement and analysis of data. The case study research design was used whereby
NMB Bank Plc HR department provided respondents for this study. Aaker et al. (2002)
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as cited by Adam and Kamuzora (2008) define a case study as a comprehensive
description and analysis of a single situation. Case studies involve in-depth, contextual
analysis of similar situations in other organizations, where the nature and definition of
the problem happen to be the same as experienced in the current situation. They are
useful particularly when one intends to gain a rich understanding of the context of the
study. It place emphasis on full contextual analysis of fewer events or conditions and
their interrelations (Adam and Kamuzora, 2008).
The rationale for choosing NMB Plc. as a case study is that it is giant bank in Tanzania
with many branches all over the country and it is more profitable bank in the country.
NMB Plc. decided to adopt HRIS in year 2006 for it to become effective and efficient in
its operations. The researcher used this opportunity to explore whether HRIS has
provided what it has promised or not.
3.3 The Study Area and Population
The study was carried out at NMB Bank Plc, Head Office, Samora Avenue, Dar es
Salaam. NMB Plc. has 140 branches countrywide, in Dar es Salaam City Centre NMB
has 2 main branches which in total have about 80 employees. Head Office has more than
400 employees.
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The bank Head Office, NMB House and Bank House branches in Dar es Salaam City
Center were selected due to time constraints and resource scarcity. All selected staff are
using HRIS.
In branches not all staff are eligible for the study, the bank tellers were excluded from
the study, only 40% were eligible for the study. Bank Tellers were excluded from the
study because they are the ones serving the customers in the branches which means
disrupting their daily schedule can cause queues and complaints from the customers. For
Head Office all 400 staff had a chance to be selected for the study.
4.4 The Sample Size and Sampling Procedure
Sample is a group, hopefully a representative of the population to be studied from which
one derives generalization about the population (Adam and Kamuzora, 2008). Sample
size is number of respondents selected for interview from research population. In this
study the sample was 112 respondents; 30 were selected from NMB House and Bank
House branches in Dar es Salaam City center and 82 were selected from NMB Head
Office (Table 3.1).
Comment [FK7]: Provide the names of thosebranches.
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Table 3.1: The Expected and Actual Sample
Sample Expected
Respondents
Actual
Respondents
Percentage
Employee 53 37 70%
Management 30 15 50%
HR Professional 29 29 100%
Source: Own Research (2013)
Some factors that were considered when designing a sample size includes; nature and
characteristics of the population in which sample is drawn, availability of resources like
money, time and personnel, tools for data collection and sampling procedures.
Respondents were from different departments and functions.
Probability sampling is type of sampling where each member has probability or chance
of being selected to form the sample. This type of sampling is not biased in nature, and
54
that is why is preferred to non-probability sampling techniques (Adam and Kamuzora,
2008).In this study probability sampling was used where every member of NMB Plc. has
a chance to form a sample.
3.5 Data Collection Methods
Data is a collection of facts, such as values or measurements. In research there are two
types of data namely, primary and secondary data (Adam and Kamuzora, 2008).
3.5.1 Primary Data
Primary data is data collected by the researcher himself or herself or by researcher
assistant from the field for the purpose of answering a research question or issue.
Methods used in collecting primary data include observation, interviews and
questionnaires as explained below.
3.5.1.1 Interview
Under this technique of data collection there is a direct contact between researcher and
respondents. The interviewer (researcher) and interviewee engage in oral questioning or
55
discussion. Aaker et al. (2002) subdivided interview into personal and telephone
interview. Researcher used personal interview which is a face to face contact between
interviewer and interviewee to get the information.
3.5.1.2 Questionnaire
Kothari (2002) defines a questionnaire as the list of questions that respondents answer.
Questionnaires were used in this study include both open and close ended
questionnaires. Three types of questionnaire were prepared and used to collect
information. These involved leader respondents’ questionnaires and non-leader
respondents’ questionnaires and HR Professionals questionnaires. Appendix 1, II and III
provide questionnaires for employees, the management and HR Professionals
respectively.
3.5.2 Secondary Data
Secondary data are data obtained from literature sources or data collected by other
people for some other purposes. It provides second hand information (Adam and
Kamuzora, 2008). These include data collected from organization's manuals, income
statement, copies of minutes of meetings, newspapers, journals and textbooks.
56
According to Aaker et al. (2002) in some cases secondary data can be more accurate
than primary data.
The researcher also used secondary data to get information about NMB Plc. as a whole
and processes in adoption of HRIS. This type of data collection is less expensive in
terms of money and time as these data have been already collected. Also NMB website
was used to collect information as part of secondary data. These data were analyzed in
order to understand HR functions, policies and procedures and how they are integrated
in HRIS.
3.6 Data Analysis Procedures
According to Kothari (2004) cited in Adam and Kamuzora (2008), data analysis refers to
the computation of certain measures along with searching for patterns of relationship
that exist among data groups. There are several types of data analysis which includes
descriptive, bivariate, multivariate and inferential analysis.
Descriptive data analysis is largely univariate providing distribution of individual
variables; it includes computation of frequencies, means, standard deviations, modes,
medians, minima, maxima and range. It does not suffice effects of independent and
dependent variables, explanatory and evaluative studies. Bivariate analysis is concerned
with finding relationship between two variables, normally one independent and one
dependant variables. They determine co-exist of two or more variables.
57
Multivariate analysis refers to all statistical method in which simulatenously analysis of
relationship among two or more variables are done; at least one is dependent while at
least two are independent variables. Common multivariate analysis is regression
analysis, which is adopted when researcher has one dependent variable which is affected
by two or more independent variables with the objective of finding impact of each
independent variable on dependent variable.
Lastly, inferential analysis which is concerned with various tests of significance for
testing hypothesis in order to determine with what validity data can be said to indicate
same conclusion. Some of the above methods consists of some complicated calculations
,the development of technology has made the life of researcher much easier as there are
various software packages such as STATA,SPSS,MINITAB and Microsoft Excel
developed to simplify data analysis (Adam and Kamuzora, 2008).
In this study descriptive analysis mainly univariate was used. With the help of
Statistical Package for Social Sciences (SPSS), data were analyzed and be presented in
form of bar charts and tables. Microsoft Excel was used in producing bar chars
whenever appropriate.
3.7 Limitation of the Study
There are several limitations in this study. First it was limited by its sample size which
excluded some employees who are customer facing like Tellers and Customer Service
Formatted: Font: Bold
58
Officers. If they have been included in the sample it would have benefited the research
results.
HRIS is not a common term that was reflected in the scarcity of resources discussing the
topic in Tanzania. HRIS should be embraced in Universities and Colleges syllabus and
researchers should study it to ensure there is awareness in the society.
Time given for data collection and analysis was not sufficient to get enough information
from participants. Three months is not enough to finalize
The methodology also could have included interviewing of the participants which would
have help to get more information from participants.
59
4.0 CHAPTER FOUR
PRESENTATION OF THE RESULTS AND DISCUSSION
4.1 Introduction
In this chapter information obtained from the study is analyzed, discussed and to some
extent interpreted. The study aimed to explore HRIS impact at NMB Plc. The study also
aimed to examine the problems NMB has before HRIS adoption. It also explored the
benefits that HRIS has brought to the bank. It also evaluate employees, Management and
HR Professionals perception on using HRIS the bank. Also the study goes further to
identify the challenges facing HRIS at NMB Plc.
4.2 Characteristics of the Respondents
Employees from different department in NMB Plc. participated to the research which
made up 81 respondents the sample distribution was 37 employees, 15 Management and
29 HR Professionals. Table 4.1 presents the characteristics of respondents. A total of 50
Males (62%) and 31 Females (38%) out of 81 respondents.
The education background of respondents is as follows; 12 (15%) respondents have
Diploma, 46 (57%) respondents have Bachelor Degree and 23 (28%) respondents have
Masters Degree.
Position of respondents was as follows; 24 (30%) respondents were Managers, 13(16%)
were Specialists and 44 (54%) were normal Bank Officers. Classification of year of
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service of respondents is; 1-5 years (26 peoples), 6-10years (36 peoples), 11-15years (12
peoples), 16-20years, (3) and 21-Above years (4 people).
61
Table 4.1: Demographic Distribution of Respondents
Variable Name Frequency Percentage
Gender Male 50 62%
Female 31 38%
Education Diploma 12 15%
Degree 46 57%
Masters Degree 23 28%
Position Type Managers 24 30%
Specialist 13 16%
Officers 44 54%
Years in
Service 1-5 26 32%
6-10 36 44%
11-15 12 15%
16-20 3 4%
21-Above 4 5%
Source: Own Research (2013)
62
4.3 Problems before the Adoption of HRIS
The research result shows that before adoption of HRIS at NMB Plc. there was old
manual system which has some several shortcomings like usage of a lot of paperwork,
taking time to solve employee queries, lack of self service module for employees to
access their information, slow speed for employee’s queries, HR Professionals
concentrating only in administrative work rather than business partnering activities and
sometimes lack of accuracy information from employees. Out of 81 respondents 74
(91%) feel that NMB Plc. did the right thing in adopting HRIS for it to reduce and
eradicate the above discussed shortcomings of old manual system.
These results agreed with study done by Shoo (2000) at Tanzania Postal Bank, which
revealed that the presence of Management Information System (MIS) in the organization
help to strengthen the management practices through providing information which
enabled management and employees to perform their duties easily. About 86% of
respondents were satisfied with adoption of MIS that it is playing a major role in
improving human resources management. According to Thite et al. (nod dated), formally
in U.S. companies must complete an annual report for the federal government, called the
EEO-1 report. This report describes the composition of the work force by job in terms of
gender, race, and national origin. The Director of Human Resources indicated that the
compliance with the EEO laws in terms of completing the EEO-1 report took one full-
time HR employee working for 1 month to complete the report. The lengthy time taken
to complete the report was due to the fact that the employee records had to be searched
63
each year since there were new hiring, promotions, terminations, and other turnover
during the year.
4.4 Benefits of Using HRIS at NMB Plc.
Research results show that there are a lot of benefits that HRIS has brought to NMB Plc.
These include minimization of paperwork, having accurate data, quick access of
employee information, increase efficiency and effectiveness by streamlining of Human
Resources procedures and processes, guarantee availability of past data, enhance self-
services by stop depending in one source, tracking of Human Resources issues, helps in
Management decision, helps Line Managers to track their subordinates. About 78 (96%)
respondents feel that HRIS has provided NMB Plc. with several benefits, only 3(4%)
respondents did not respond to this question.
Also HR Professionals results revealed that HRIS has brought some benefits to NMB
Plc. these includes cost reduction, HR processed and procedures simplification, facilitate
decision making, paperwork reduced and also make them to focus on other important
matters (Table 4.2).
64
Table 4.2: Impact of Using HRIS at NMB Plc.
HR Professional Responses
Strongly
Agree Agree Strongly Disagree Disagree
HRIS has reduced Costs 0 27 0 2
HRIS analyses employee positions 0 29 0 0
HRIS Identifies Vacant Positions 0 0 0 29
Recruitment done through HRIS 0 0 29 0
HRIS helps report production 0 29 0 0
HRIS helps to make desicison 0 29 0 0
HRIS administer employees Benefits 0 29 0 0
Employees are using LMS 0 0 29 0
Employees can provide their TNA in HRIS 0 0 29 0
ESS is optimum used 0 3 26 0
Employees can apply leave 29 0 0 0
Tracking of Employees Movements 29 0 0 0
Source: Own Research (2013)
65
These results are supported by the study done by Bal et al. (2012) which shows that the
use of HRIS in organizations has various advantages for managers especially in decision
making processes. In this study, the HRIS perception and HRIS satisfaction of HR
employees were investigated. According to correlation analysis results, positive and high
level relationships were found among all dimensions of HRIS and system quality,
information quality and perceived ease of use which jointly constitute HRIS success.
Also, it is found those employees’ perceptions of HRIS show difference according to
their position and satisfaction of employees from HRIS shows difference according to
their positions. The results of the research reveal that HR employees perceive HRIS
useful and they are satisfied with the system. It was found that both HRIS perceptions
and HRIS satisfaction of employees show difference according to position variable.
Also another study conducted by Hanadi (2010) provides the results that supported the
results whereby the study of 152 respondents at the four Jordanian Mobile Companies
revealed that HRIS are largely used in strategic human resources planning at these
companies. Also strategic human resources planners recognize the importance of using
human resource information systems in their strategic human resources planning. At the
same time the respondents at the four mobile companies believe that there are several
benefits of using HRIS in strategic human resources planning.
66
4.5 Users Perception on the Use of HRIS
The users perceptions at NMB Plc. are affected by some demographic conditions which
are education, years of services and position that employee hold in the Bank. Some
respondents with lower level of education feel that HRIS has come to take their
positions as they see a lot of HR processes and procedures are automated. Also the lack
of basic knowledge of using computers made some users to be uncomfortable with
HRIS.
Users who are at lowest level see HRIS as threat because of its control features like
marking of abseentism and attendance, leave tracking and overtime tracking. The
chances of not going to work without proper reason is no longer there. Nevertheless,
others users has positive perception on usage of HRIS at NMB Plc. they see it as a tool
that will increase efficiency and effectiveness of the Bank.
These results are supported by study done by Sanaa (2008) on the factors influencing
adoption of Human Resources Information Systems among Private companies in
Yemen. The study find out that adoption of HRIS made an organization to be
competitive, to have a reliable operation, cost effective and enhance performance
appraisal, hence increase employee morale. Also in his study he find out some barriers
in the adoption of Human resources information system which are resistance to change
by employees whereby they don’t want to adopt new system and employee with low
67
academic qualification fear that system will take their job and also they are not ready to
acquire new skills.
4.6 The Challenges Facing HRIS in NMB Plc.
Also research results revealed that there some several challenges on HRIS usage at
NMB Plc. Some employees with low education are still not comfortable in using HRIS
they feel it is too complicated. Also out of 81 respondents 13 (16%) feel that HRIS is a
disciplinary tool as it used to mark their attendance, leave days and overtime.
About 67 (83%) of the respondents revealed that they were not trained on HRIS usage
but only the HRIS User Guide was sent to them so they are learning through experience.
This lack of training made the employees to often call HR department for help and
sometimes others not to use HRIS. The same respondents revealed that some supervisors
do not use HRIS to approve and request their queries like leave, overtime and acting
allowances.
AnoOther challenge that is facing HRIS usage at NMB is respondents feel that they are
not getting on time HRIS support, they say it can take up to a week to sort a certain
query. All 29 HR respondents feel that absence of important modules like recruitments,
training and development, performance and industrial relations modules in current HRIS
is a challenge as employees still do not see the real impact of HRIS.
These results is confirmed by Hussein (2008) who conducted a case study on the roles of
Human Resources Information System in improving Management of Resources in
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Public Sector at President`s Office-Public Services Management. She revealed that
despite an appealing establishment level of computerization and Human Resources
Information System adoption the HRIS has not yet been effective in improving
management of human resources in Public Sector.
Also another study by Dery et al. (2006) shows that although new or upgraded HRIS
systems are being used to automate and devolve routine administrative and compliance
functions traditionally performed by the HR function, the potential for this technology to
be used in ways that contribute to the strategic direction of the organisation areis not
being realised. More specifically, the results suggest that the opportunity to enhance
HR’s role as strategic partner as a result of the use of HRIS is being hindered by three
main challenges. The first challenge relates to the ability to maintain the levels of senior
management commitment and resources needed to implement and manage new or
upgraded HRIS. The second concerns managing the complexity of the HRIS and its
associated functionality. The third challenge stems from barriers associated with the
acceptance of HRIS among key managers and employees along with the importance
attached to managing the change processes associated with the implementation and
introduction of the new or upgraded systems.
69
CHAPTER FIVE
SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of the Findings
Human Resources Information System (HRIS) has become very important tool to
manage organization’s human resources. Many complex and big size Organizations with
offices located in different stations have seen HRIS as a solution for managing its human
resources.
This study investigates the impact of using HRIS at National Microfinance Bank. The
study presented the analysis on the application and outcome of HRIS to NMB Plc. The
results obtained from 81 respondents all resides at NMB Head office, NMB House and
Bank House branches in the City Centre. The population was taken from different
categories of employees which include employees, Management and HR Professionals
this help to get the wider view on how HRIS has impacted their work life and NMB Plc.
as a whole.
Respondents acknowledge that NMB Plc. is using HRIS and they believe it is important
for an Organization to adopt it. The strengths and weaknesses of using HRIS in NMB
Plc. were provided. Where by HRIS has reduced costs, facilitates decision making,
reduced paper work, streamlining HR department and having accuracy employees data.
Comment [FK8]: The line spacing in this chapteris 1.5 while it is 2 in the rest of the chapters.
Comment [FK9]: Provide the names of thosebranches.
70
The study revealed that there is significant relationship between organization variables
like employee role, educational level and years in services and utilization of HRIS at this
bank. Finally there is significant impact of using HRIS at NMB Plc. in all aspects that
touches organization important asset the people. Out of 7 Employee who have been in
the bank for more than 20 years 3 of them are not utilizing well HRIS they are using it
rarely when applying for leave, overtime or checking their payslip because they are not
comfortable with this new technology. The employees who their education level is
Diploma and above seems to utilize HRIS well than the one with lower level of
education as they are not conversant do not have exposure in new technology.
Not only that but also HRIS usage in NMB Plc. is facing several challenges like
resistance from users, out of 81 respondents 13 (16%) feel that HRIS is a disciplinary
tool as it used to mark their attendance, leave days and Overtime. Formally NMB
employees used to have a lot of excuses for not going to work,the Management decided
to use HRIS to mark attendance whereby if employee is absent his line manager will
mark absent which in turn deduct his leave days and if he is sick it will deduct from his
sick leave days. This has force employees to become responsible by not having false
excuses as it has effect in their leave days. Therefore the excuses is done when necessary
only.
Leave application at NMB Plc. currently is done in HRIS employee cannot inflate his
leave balance as the actual balance is kept in the system. Formally it was difficult to
track the leave balance as records were kept in papers which was not easy to track.
71
Also HRIS is now used to book and approve overtime therefore employee cannot inflate
hours as his supervisor is the one who is booking for him and department head are the
approval, this is why some respondents think that HRIS is disciplinary tool.
About 67 (83%) respondents revealed that they were not trained on HRIS usage, during
HRIS implementation only HRIS experts, few IT professionals and some HR
Professionals where trained on using HRIS. There were no formal training to the rest of
employees but only the HRIS User Guide was sent to them. Employees have learnt to
use HRIS by HRIS user guide through experience. This lack of training made the
employees to be often call HR department for help and sometimes others do not to use
HRIS. The same respondents revealed that their
supervisors do not use HRIS to approve and request their queries like leave, overtime
and acting allowances. Other challenge that is facing HRIS usage at NMB is respondents
feel that they are not getting on time HRIS support, they said that it can take from 3 days
to a week to sort a HRIS related query, current HR department roll out a complaint log
which will help in minimizing the time taken to sort queries.
And all 29 HR respondents feel that absence of important modules like recruitments,
training and development, performance and industrial relations modules in current HRIS
is a challenge as employees still do not see the real impact of HRIS. These modules are
expected to be interfaced to HRIS whereby employees will be able to apply for vacancy
72
through e-recruitment and screening will done by help of employee record that is in
HRIS. Employees can get HRIS notifications to do certain training through e-learning
the training will depend on the education level, role and other employee records that is
in HRIS. Also performance and industrial
relation issues are expected to be interfaced to HRIS, whereby employee will get
notification on their performance and industrial relations issues which all consider the
employee record that is in HRIS. Therefore they advised the management to ensure all
these modules are utilized to motivate employees’ usage of HRIS.
Also 3 out of 29 HR Professional who were are working with main HR base of HRIS at
NMB Plc. feel that HRIS is no performing well because there were no SLA with Vendor
on when HRIS will be fully utilized, user support issues, how to handle additional
queries arising during implementation and training users on technical issues to ensure
organization is not that much dependent to vendor support all the time.
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5.2 Conclusion
In today corporate world human resources have come to play very important role in the
business they are regarded to be organization most valuable assets. Some organization
have adopted HRIS to ensure they manage well its human resources. HRIS helps
organization to store, gather, track and analyze information regarding its human
resources. HRIS also helped organization to increase efficiency and effectiveness.
NMB Plc being the giant Bank in Tanzania decided to adopt HRIS for it to become
competitive in the market. This decision made after its old manual system failed to
perform at required level which consist of a lot of paperwork, slow speed in sorting
employee queries, lack of accuracy data and HR Professional concentrating mostly on
administrative work rather than strategic issues.
Respondents acknowledge that it is important for an Organization to adopt HRIS, as it
provided several benefits like cost reduction, facilitates decision making, reduced paper
work, streamlining HR department and having accuracy employees data.
Though there are some benefits on usage of HRIS there is also some challenges on its
usage these include insufficient training, resistance from users as they see it as a
disciplinary tool and lack of on time support from HRIS support team.
74
Inspite of the challenges that are associated with HRIS usage it still has positive impact
on the performance of an organization as it makes organization human resources
competitive.
5.3 RECOMMENDATIONS
As HRIS becomes an increasingly vital component, researchers must expand their
efforts to understand the opportunities and threats that it bring to organizations. Human
Resource Information Systems may be an important tool for the banking industries to
gain competitive advantage as HRIS is expected to reduce paper works, facilitates
decision making, streamline HR processes and procedures and to have accuracy
employees information. With an HRIS, the human resource department can effortlessly
manage employee data, whenever required supplementing it with computer and web-
based technology, allowing them to reallocate their energies towards more important HR
activities like implementing policies to achieve organization goals.
Although HRIS has above explained merits few respondents feel that the
implementation of HRIS has cause some problems such as lack of expertise, technical
problems, lack of funds, time consumption by the untrained staff.
Also, before purchasing HRIS software organizations should consider its size,
implementation and running costs, vendor after sale services and train users on HRIS
usage to prevent resistance, bulk queries to HR department and fear .
75
There should be training on the importance of using HRIS to all employees in
organization. The HRIS training should be done during induction training to ensure
every new employee is well equipped with HRIS basics. Also HR departments should
enroll a one on one HRIS training to the rest of employee to ensure they understand its
basics. These training will minimize the negative perception from users who sought that
HRIS is a punishment tool and is taking out their jobs. Also training will minimize
queries sent to HRIS experts, as users will be conversant in using HRIS.
Another important issue is to ensure that all modules like training and development,
recruitment, performance and industrial relations are fully utilized in HRIS this will
motivate employees to use HRIS everytime.
Not only that but also to have Service Level Agreement (SLA) with Vendor on when
HRIS will be fully utilized, user support, additional queries arising during
implementation and training on technical issues to ensure organization is not that much
dependent to vendor support all the time.
This research studied the impact of HRIS in performance of banking industry taking
NMB Plc.as a case study and it should be taken as important indicator of impact of using
HRIS in the performance of banking industry.
However, other researchers should be encouraged to study impact of HRIS to other
industries like Telecommunications, Health, Insurance and Mechanical. This is because
76
HRIS technology is still new and its study has not been done on those industries in
Tanzania.
Other researchers in Tanzania should be encouraged to study more on HRIS as there are
very few studies on HRIS that has been done in Tanzania. This will help future
researchers, organizations that are planning to acquire HRIS and Universities and
Colleges to make reference for HRIS study. To ensure there is enough awareness of
HRIS, Universities and Colleges should be encouraged to introduce HRIS in there
syllabus especially in HR, HRM and IT subjects this will help students and society to be
aware of HRIS and the Institutions in Tanzania should call for papers on the study of
HRIS.
Lastly the future research related to this topic might include the comparison of impact of
HRIS usage to the performance of other banks in Tanzania. This will help to get the
fully picture of impact of HRIS on the performance of banking industry in Tanzania.
77
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Appendices
Appendix I: Questionnaire for Employees
The purpose of this questionnaire is to obtain your views and opinions on the impact of
using Human Resource Information System in your bank. Please select the response that
you think is the most appropriate to each statement.
Open Questions
Name……………………………………..
Organisation……………………………….
Department………………………………
Position (optional)
Years in Service
1. Have you ever heard about Human Resources Information System?
Yes………(V) No ……….(V)
2. In your daily work do you use Human Resources Information System
If Yes explain briefly when………………………………………………………...........
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…………………………………………………………………………………………….
……………………………………………………………………………………………
3. Are you trained well in using the Human Resources Information System
a.)If Yes explain briefly………………………………………………………………..
………………………………………………………………………………………..
b) If No why……………………………………………………………………………
………………………………………………………………………………………….
4. Do you see Human Resources Information as a threat or opportunity
Explain your choice briefly……………………………………………………………….
…………………………………………………………………………………………….
……………………………………………………………………………………………
……………………………………………………………………………………………
…………………………………………………………………………………………..
5. Do you think your colleagues are happy with Human Resources Information System
a.) If Yes Why…………………………………………………………………………
…………………………………………………………………………………………
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b) If No why…………………………………………………………….....................
……………………………………………………………………………………….
6. Human Resources has come to make our life easier is this statement True or False
Explain your choice……………………………………………………………………
…………………………………………………………………………………………..
…………………………………………………………………………………………..
7. If you promoted to Managerial position will you advice management to acquire the
Human Resources Information System?
a.) If Yes Why…………………………………………………………………………
…………………………………………………………………………………………
b) If No why…………………………………………………………….....................
……………………………………………………………………………………….
8.Do you think that Human Resource is a disciplinary tool rather than a development
tool for employees.
a.) If Yes Why…………………………………………………………………………
…………………………………………………………………………………………
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b) If No why…………………………………………………………….....................
……………………………………………………………………………………….
9. Are you getting on time support from Human Resource Information System Support
team? If Yes How long does it take, it otherwise explain briefly too.
……………………………………………………………………………………………
……..
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
…………………..
10. Do you think management did the right thing in implementing Human Resource
Information System in your organization? Please explain briefly
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
………………………
11. Is your supervisor using Human Resources Information System to approve and
request some of your queries like leave etc.
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……………………………………………………………………………………………
……………………………………………………………………………………………
………………
12. If you get another job in organization that does not have Human Resource
Information System, will you take the offer? And will you be comfortable to work
without Human Resource Information System? Explain
……………………………………………………………………………………………
……………………………………………………………………………………………
……………
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Appendix II: Questionnaire for the Management
The purpose of this questionnaire is to obtain your views and opinions on the impact of
using Human Resource Information System in your bank. Please select the response that
you think is the most appropriate to each statement.
Open Questions
Position……………………………………..
Organisation……………………………….
Department………………………………
Years in Service………………………….
1. What is the Main business of your Organisation.
…………………………………………………………………………………………….
……………………………………………………………………………………………
…
Is your organization using Human Resources Information System?
Yes……… (V) No ……….(V)
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2. As a supervisor do you use Human Resource Information System in your daily duties
If Yes explain briefly when………………………………………………………...........
…………………………………………………………………………………………….
……………………………………………………………………………………………
3. Are you trained well in using the Human Resources Information System
a.)If Yes explain briefly………………………………………………………………..
………………………………………………………………………………………..
b) If No why……………………………………………………………………………
………………………………………………………………………………………….
4. Is Human Resources Information System a threat or opportunity to your organization
please explain
……………………………………………………………………………………………..
…………………………………………………………………………………………….
……………………………………………………………………………………………
……………………………………………………………………………………………
…………………………………………………………………………………………..
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5. Do you think your Organisation did the right thing in adopting Human Resources
Information System
a.) If Yes Why…………………………………………………………………………
…………………………………………………………………………………………
………………………………………………………………………………………….
b) If No why…………………………………………………………….....................
……………………………………………………………………………………….
…………………………………………………………………………………………
6. What are the strengths of Human Resources Information System organisation?
……………………………………………………………………………………………..
……………………………………………………………………………………………
….
……………………………………………………………………………………………
….
……………………………………………………………………………………………
……………………………………………………………………………………………
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……………………………………………………………………………………………
……………………….
7. What are the weaknesses of Human Resources Information System in your
organisation?
……………………………………………………………………………………………..
……………………………………………………………………………………………
….
……………………………………………………………………………………………
….
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
………………………
8. Does Human Resources Information System help in making decisions
Please explain……………………………………………………………………
…………………………………………………………………………………………..
…………………………………………………………………………………………..
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9. Are you using Human Resources Information System to track your subordinates
performance
Please explain……………………………………………………………………
…………………………………………………………………………………………..
…………………………………………………………………………………………..
10. Do you think your employees understand how to use Human Resources Information
System
Please explain……………………………………………………………………
…………………………………………………………………………………………..
…………………………………………………………………………………………..
11. Are you using Human Resources Information System to track your subordinates
performance
Please explain……………………………………………………………………
…………………………………………………………………………………………..
…………………………………………………………………………………………..
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12. If you get job in other organization which does not use HRIS will you advice them to
use Human Resources Information System?
a.) If Yes Why…………………………………………………………………………
…………………………………………………………………………………………
b) If No why…………………………………………………………….....................
……………………………………………………………………………………….
13. Do you use Human Resource Information System as a disciplinary tool rather than a
development tool for your subordinates.
a.) If Yes Why…………………………………………………………………………
…………………………………………………………………………………………
b) If No why…………………………………………………………….....................
……………………………………………………………………………………….
14.Are you getting on time support from Human Resource Information System Support
team? If Yes How long does it take,it otherwise explain briefly too.
……………………………………………………………………………………………
……..
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……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
…………………..
15. Are you using Human Resources Information System to approve and request some
of your queries like leave etc.
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………..
……………………………………………………………………………………………
……………………………………………………………………………………………
………………
16. Do you think employees information are safe in Human Resources Information
System, Please give your views below
……………………………………………………………………………………………
………
……………………………………………………………………………………………
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……………………………………………………………………………………………
……………………………………………………………………………………………
……………………..
……………………………………………………………………………………………
………
94
Appendix III: Additional Questions for HR Professionals
Organization
name:………………………………………………………………
Please Tick (V)
Your view and opinion below
Industry
classification:……………………………………………………
Department
name:………………………………………………………………
Position:………………………………………………………….
Years in
Service:……………………………………………………………
Education:………………………………………………………..
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Rem
arks
1 All employees in our Bank are trained in using HRIS
2 HRIS is a preferable system in our Bank
3 Organisation uses HRIS at an optimum level
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4 HRIS has reduced cost in our Bank
5 HRIS helps to analyses the employees in each position.
6 HRIS identifies unfilled positions accurately.
7 HRIS supports development of department plan.
8 Candidates are recruited through HRIS
9 HRIS help in production of reports
10
HRIS ensures organisation has right kind and
numbers of employees at right place at right time
11 HRIS Helps Management to make the right decisions
12 Employees Benefits is well administered in HRIS
13 Employees can apply loan through HRIS
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14 Employees can acess their salary slip in HRIS
15 Employees are using e-learning in our Bank
16 HRIS is linked to e-learning
17 Employee provide training needs analysis (TNA) in HRIS
17 Perfomance appraisal is done in HRIS
18 Employees knows what is Employee Self Service
19
Employees can update their data through Employee
Self Service
20 Employees can apply leave in HRIS
21 HRIS provide accurate leave balance
22 Abseentism is captured in HRIS
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23
Through HRIS, more relevant information has
become available to me for decision-making
24 Employees movement can be tracked through HRIS