Human Resource Records notes

Human Resource Records

• Meaning of Human Resource records
• Importance of Human Resource records
• Types of Human Resource records
• Use of computerized Human Resource records
• Meaning of Human Resource Management Information Systems (HRMIS)
• Importance of Human Resource Management Information Systems (HRMIS)
• Emerging issues and trends in human resource records

4.0 HUMAN RESOURCE RECORDS

By the end of this topic, the trainee should be able to:

1. explain the uses of human resource records

2. discuss the types of human resource records
3. discuss computerized human resource records
4. explain the importance of human resource information systems
5. identify emerging issues and trends in human resource records management

Introduction
Human Resource (HR) records or Personnel Records are records pertaining to employees of an organization. These records are accumulated with factual and comprehensive information related to employees in the organization and is kept in a systematic order. Such records are helpful to a manager in various decision-making areas. Every employer maintains personnel records to document the employment relationship with employees. Personnel records range from employee recognition letters to job applications to personnel files. Personnel records provide a paper trail of an employee’s background, experiences, history, accomplishments, goals, feedback, disciplinary action (if any), recognition, and promotions, to name just a few personnel records.
1.1 Uses of Human Resource Records
HR records are used to preserve information either in soft copy or hard copy. The main uses of these records in an organization include;

1. It helps to supply crucial information to managers regarding the employees.
2. To keep an update record of leaves, lockouts, transfers, turnover, etc. of the employees.
3. It helps the managers in framing various training and development programmes on the basis of present scenario.
4. It helps the government organizations to gather data in respect to rate of turnover, rate of absenteeism and other personnel matters.
5. It helps the managers to make salary revisions, allowances and other benefits related to salaries.
6. It also helps the researchers to carry in- depth study with respect to industrial relations and goodwill of the firm in the market.
7. It helps managers in HR planning, recruitment and monitoring performance.
8. They are evidence of compliance with the labour laws relating to keeping of re

1.2 Types of Personnel Records
Commonly, personnel records include:
a) Personal Records
These contain all relevant personal records of an employee. An employee personnel record is an employers’ saved documentation of the history and status of the entire employment relationship with an individual employee and may contain documents such as appointment letter, application letter, testimonials, job description, staff appraisal results, salaries and wages details, application of absence from duty, training undertaken, leaves etc.
b) Statistical records
These are also called non-employee specific records and can be organized activity or topic e.g procedural or policy files. They are filed at a central point or at departmental level in such a way that they are easy to understand and be compared. They usually contain information that is eternally

demanded different organizations and may include statistics on wages and salaries, employee deductions, grade of employees, labour turnover, age, gender etc. non-employee-specific personnel files (organized activity or topic) e.g. procedural or policy files
c) Computerized records
These are available in different ways ranging from small desktop systems that deal with basic personnel records to main frame computers which are integrated systems to produce information on labour costs, manpower management, and compensation trends etc.
The information contained in the above records may be classified into;
i) Wages and salaries records which contain pay roll records, methods of wages and salaries, leave records, turnover records and other benefit records.
ii) Training and development which contains appraisal reports, transfer cases, training schedule, training methods.
iii) Health and safety records which include sickness reports, safety provisions, medical history, insurance reports, etc.
iv) Service Records are the essential records containing bio-data, residential and family information, academic qualifications, marital status, past address and employment records.

Management of personnel records
Effective and efficient management of personnel records can be achieved by:
a) Establishing policies and procedures for managing personnel records in accordance with the organization’s regulatory framework. It is good management practice for an organization to understand the regulatory framework it is subject to for personnel records, and to establish policies and procedures to communicate requirements to relevant action officers, supervisors and managers.
b) Designing or implementing personnel recordkeeping systems so that records with short retention periods can be destroyed while records with long retention periods are retained for as long as required. An organization’s regulatory framework includes legislation and government or industry policies and procedures regarding employee records, and will vary according to the organization. Elements of the framework may include the privacy and personal information protection and guidelines issued under the laws of the country, which establishes principles for the management of private and personal information within personnel records
c) Designing or implementing personnel recordkeeping systems so that sensitive records can be kept secure and protected to meet privacy management obligations. Records created to support the management of employees often contain information of a sensitive or personal nature. Organizations should ensure that such records are managed securely and that access to the records is restricted to authorized users e.g. Access levels and security arrangements should be documented. Controlled access should apply for as long as the records are required to be retained, and records should be destroyed promptly when minimum retention periods have expired.
d) Creating and maintaining adequate summary records of employees. Creating adequate summary records of employment and service can make the management of personnel records more efficient and effective. Summary records are records that summarize the content of other records. Many

organizations have kept summary records in the past, such as staff service cards. Increasingly, organizations are using human resource management databases or other automated systems that can provide a similar summary record of employment and service history.
1.3 Computerized Human Resource Records
The type of HR data collected, where the data are stored, how the data are used, and the type of system used has changed over time, but the need to collect information relating to hiring, promoting, and firing employees has not changed. These records were traditionally kept on paper, creating issues with storage, the ability to locate records and longevity. However, changing over to HR technology has helped resolve some of these issues. HR technology is increasingly being used small, medium, and large employers to meet the needs of its stakeholders. Among the technologies used to keep HR records is the computerized system which involves keeping track of all employee records in a computer system. The advantages and disadvantages of this system are as below;
Advantages of computerized HR records
a) Space
Keeping paper records takes up a lot of space. The more employees a company has, the more space it needs to store all of the records, especially if the company keeps records for past employees. A computerized system allows a company to transfer paper documents into digital form, which only takes up the space for the computer. Most computers have plenty of hard drive space to store all of the required employee records. A company is then free to use the former storage space for the paper records for another office or some other type of storage.
b) Accessibility
Paper records, no matter how well they are filed, can take several minutes to search through. For any particular information, the file for the correct employee should be found, which is usually easy as long as the files are kept in good alphabetical order, but can still take time depending on how many filing cabinets you must walk among to get to it. After that you still must locate the particular document you need, which can take time, especially if the employee’s file is thick. However, if the personnel system is stored on a computer, it is a matter of seconds to search for the information you are looking for through the computer’s search features. Employers can view files from multiple computers, and even offices located in multiple cities, as well.
c) Time
In addition to saving time when searching for specific documents within paper files, employers can save time in other ways. If an employer requires someone’s paper file due to disciplinary action or for a performance review, she would have to wait for someone to locate the file and deliver it to her. When the system is computerized, she can simply look up the information on her computer without having to wait. Filing away documents is also done more quickly, saving time on filing.
d) Statistics
When personnel records are computerized, an employer can instruct the computer to gather specific statistics, such as output levels, absences or turnover rates, to find ways to improve the company. These statistics can give an employer a wealth of important information. If upper management requests these statistics, the computer makes it easy to compile the information and can quickly create a graph to better illustrate the statistics.
e) Identifying trends

Some employees exhibit trends in their work habits that can clue an employer in on potential issues. For example, an employee may have a habit of calling in sick once every couple of weeks on the exact same day of the week. Some employees choose Monday or Friday to extend a weekend, while others choose a more discreet route using a day in the middle of the week. A computerized personnel system can help an employer identify trends such as this more easily than relying on paper records and memory.

Disadvantages of a computerized Human Resource record System
a) Access control
When an organization collects personal data about its employees in a computer, certain security risks may arise. An organization spends funds to keep employee private information secure against internal and external threats. One disadvantage of a computerized system 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.
b) Specialized Knowledge
The need for data control is another potential disadvantage of a computerized system. This data control extends beyond unauthorized access of employee private information. An organization using this system must employ its own set of technical staff to program, troubleshoot, update and support the system. While the system may help an organization reduce the cost of HR personnel, it could increase the requirements for technical staff with knowledge specific to the HRMS solution.
c) Data Entry Errors
A computer system is only as good as its human programmers and end users. People with high-level access, such as people who update an HR 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 inaccurate HR records.
d) Loss of information
A lot of information can be lost if the computer is stolen or the computer system collapses. A computer system cannot therefore operate without a manual system as a back up to mitigate against such problems.
1.4 Human Resource Information System (HRIS)
Human resource information system (HRIS) or human resource management system (HRMS), is basically an intersection of human resources and information technology through HR software. This allows HR activities and processes to occur electronically. HRIS may be viewed as a way, through software, for businesses big and small to take care of a number of activities, including those related to human resources, accounting, management, and payroll In most situations, a HRIS will also lead to increases in efficiency when it comes to making decisions in HR. The decisions made should also increase in quality—and as a result, the productivity of both employees and manages should increase and become more effective.

An effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. HRIS is made up of a number of subsystems, and data can be stored, maintained, and generated from the system. These data can be used to create information that will serve different purposes for many different stakeholders. The key functions of an HRIS are;
i) Creating, analysis and maintaining employee records e.g. applications, payroll, benefits administration etc.
ii) Ensuring legal compliance
iii) Enabling managers to forecast and plan future HR requirements
iv) Providing information to managers and HR so they can manage knowledge and manage talent (career and succession planning)
v) Providing information to enable HR plans and activities to align more effectively with the organization’s strategic plan
vi) Assisting managers with decision making providing relevant data so they can make more effective and informed decisions

Elements (subsystems) of HRIS
Many organizations have gone beyond the traditional functions and developed human resource management information systems, which support recruitment, selection, hiring, job placement, performance appraisals, employee benefit analysis, health, safety and security .A HRIS have enabled enterprises to automate many aspects of human resource management which operate as modules / subsystems. Currently Human Resource Management Systems have the following key modules:
Organization
The Organization module is organization structure such as company, location, department, designations, employee group and organization change such as resignation, termination, transfer, promotion.
Payroll
The payroll module automates the pay process 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. This module can encompass all employee-related transactions as well as integrate with existing financial management systems.

Time and Attendance
The Time and Attendance Module automates time tracking related processes and enhances the organization’s performance eliminating paperwork and manual processes associated with time and

attendance needs. The sophisticated module helps to efficiently organize labor data, improve the workforce management and minimize errors in enforcement of company’s attendance policies.
Benefits Administration
The 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.
HR Management
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. Leading edge systems provide the ability to “read” applications and enter relevant data to applicable database fields, notify employers and provide position management and position control not in use. Human resource management function involves the recruitment, placement, evaluation, compensation and development of the employees of an organization.
Recruiting
Online recruiting has become one of the primary methods employed HR departments to garner potential candidates for available positions within an organization. Talent Management systems typically encompass:

• Analyzing personnel usage within an organization
• Identifying potential applicants
• Recruiting through company-facing listings
• Recruiting through online recruiting sites or publications that market to both recruiters and applicants.

The significant cost incurred in maintaining an organized recruitment effort, cross-posting within and across general or industry-specific job boards and maintaining a competitive exposure of availabilities has given rise to the development of a dedicated Applicant Tracking System, or ‘ATS’, module.
Training
The training module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a Learning Management System 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
The 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 lets supervisors approve

Overtime requests from their subordinates through the system without overloading the task on HR department.
Reports
The Reports Module provides customized reporting according to employee’s individual needs. Any number of reports can be defined selecting from a range of search criteria and report fields. Report definitions can be saved to avoid repeating this task. Once the report definition is saved the report can be generated providing the required criteria data.
1.5 Emerging Isssues in HR Records
1. a) E-HRM

E-HRM is the (planning, implementation) application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities. E-HRM is defined as a network-based structure built on partnerships and typically mediated information technologies to help the organization acquire, develop, and deploy intellectual capital. It is in essence the devolution of HR functions to management and employees.
There are three tiers of E-HRM which are; Operational, Relational and Transformational. Operational E-HRM is concerned with administrative functions e.g. payroll and employee personal data. Relational E-HRM is concerned with supporting business processes means of training, recruitment, performance management and so forth. Transformational E-HRM is concerned with strategic HR activities such as knowledge management, strategic re-orientation.

1. b) Employee Self-Service

Employee self-service (ESS) systems enable employees to access and manage their personal information directly, without having to go through their HR departments or their managers. ESS systems are set up so that employees can sign onto their company system via the Internet and be immediately authenticated and verified HR departments can set up employee access to HR services. Access can also be provided through interactive voice response (IVR). An interactive voice response (IVR) system is a telephone technology in which a touch-tone phone is used to interact with a database to acquire information from it or enter data into it. For example, employees can call in to report their attendance entering a specific code.

1. c) Web-Based Technology

For the most part, the HR department continues to be the owner and custodian of HR information but others have begun to recognize the value of this information to the business. The reports that HR is able to produce have become more sophisticated. At this point, the majority of systems are still not Web-based, but some leading-edge organizations have embraced this technology. The technology of the future will be about speedy access to accurate current information, and the ability to access this information via multiple systems will give organizations a strategic edge. HR is expected to relinquish its role as sole owner of HR information, so that managers and employees can use this information to solve their own problems using Web-based systems.

1.6 Review questions

1. Explain three types of HR records
2. State and explain five uses of HR records
3. Explain the advantages of using computerized HR records in an organization
4. Outline the key functions of HRIS in an organization