Human Resource Information System (HRIS) merges human resource management (HRM) with information technology to not only simplify the decision making process, but also aid in complex negotiations that fall under the human resource sector. Given that HRIS is embedded within the HR department, there are still a number of the changing business environmental factors which affect its development, operation and use. According to Kavanagh, Gueutal and Tannenbaum (1990), some of these important factors are; economic pressures, the government laws and regulations, technology advancement, labour market, societal factors and competition.
Economic pressures on both small and large organisations during the 1980s and 1990s led to permanent changes in the use of employee information systems. The need to measure, account for, and report on the costs of employee programs has been a strong influence on the development of more complex HRIS, as stated by Nankervis, Compton and Baird (2004).
Government regulations and legislations have also had a major impact on HRIS. The Equal Employment Opportunity Act 1977 (EEO), prohibits unfair discrimination based on race, nationality, religion, and gender in all employment practices. This means organisations must maintain comprehensive records on all employees with regards to this legislation. One of the requirements is that all organizations covered by the law must submit EEO management plans to achieve EEO outcomes, and report on the progress and success of their EEO program in their Annual Report (NSW Government Department of Premier and Cabinet 2007).
The Occupational Health and Safety Act 2000 is another example of legislations having impacted on the development and use of HRIS. Employers must now make sure that they are providing and maintaining systems of work, and working environments that are safe, and risk-free to health as acknowledged by WorkCover NSW (2007).
The impact of these regulations...