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One reason why organizations need to collect HR data is to improve how they manage their workforce. In an organization, employee data is collected as a part of HR data.
With the aid of a human resource information management system (HRIMS), HR managers are able to keep accurate records on employee commencements and exits including terminations and are therefore, able to better manage an organization’s workforce. With the aid of HRIMS, human resource planners are able to use employee data to forecast or anticipate the future demands of an organization’s workforce (Dessler, 2001, p. 24).
Forecasting future demands of an organization’s workforce is an activity that constitutes better and improved workforce management. Another reason why organizations need to collect HR data is to ensure better payroll management.
In an organization, payroll data is a constituent of HR data. With the aid of an HRIMS, HR managers are able to accurately monitor payroll transactions using payroll data.
One type of data collected in an organization is employee data. One of the principle functions of HR managers is to properly manage an organization’s workforce (Australian National Audit Office, 2011, p. 3).
With employee data an organization is able to track the number of its active employees as well as the number of employee exits and terminations.
This is important for example when an organization wants to determine its employee turnover rate and therefore consequentially determine if its employee retention measures are effective. Another type of data collected in an organization is payroll data.
HR managers have the principle function of administrating and managing payrolls in organizations (Australian National Audit Office, 2011, p. 3). To perform this function properly HR managers need to accurately monitor payroll transactions. This is achievable only through processing the collected payroll data.
One method of storing HR records in an organization is through the use of relational database management systems (RDBMSs). With RDBMSs the records are contained in relational databases which are in their simplest form systems of rows and columns.
Each record in a relational database has its own unique identification which is different from those of the other records. This improves data integrity and simplifies manipulation of data in the records. Extraction of data from relational databases is done using queries.
An advantage of using RDBMSs is that enormous volumes of data can be stored. Another advantage of using RDBMSs is the speed of data manipulation; with RDBMSs it is possible to extract or edit large volumes of records at a single instance and within fractions of a second.
Another advantage of using RDBMSs is that they provide improved security of information. RDBMSs offer password protection for the data they contain. This means unauthorized manipulation of the data is avoided and thus data integrity is maintained.
Another method of storing HR records in an organization is by using human resource information management systems (HRIMSs).
A definition of HRIMS is ” a system which seeks to merge the activities associated with human resource management (HRM) and information technology (IT) into one common database through the use of enterprise resource planning (ERP) software” (WebFinance, Inc., 2012, p. 1).
An HRIMS has all the advantages of an RDBMS plus one more which is that they are tailor-made to suit the needs and parameters of human resource managers and planners.
It is important for an organization to properly manage and protect its HR information so as to avoid financial losses and liabilities. Organizations in the UK have to beware of the Data Protection Act of 1998 which is a legislation that largely protects the privacy of individuals.
Organizations that ignore this legislation risk lawsuits that can result in financial losses and liabilities (SOAS, 2007, p. 1). The act stipulates that recording of data should be done lawfully and with a person’s consent (SOAS, 2007, p. 6).
In addition, the act requires that stored data be kept accurately and up-to-date where necessary (SOAS, 2007, p. 32).
The act additionally prohibits unlawful and authorized access and manipulation of data (SOAS, 2007, p. 43). The act requires that organizations meet the technical requirements needed to ensure security of personal information.
References
Australian National Audit Office. (2011). Human resource information systems risks and controls. Web.
Dessler, G. (2001). Human Resource Management (8th ed.). Upper Saddle River, New Jersey: Prentice-Hall Inc.
SOAS, (2007). Data protection policy; Overview of the data protection act 1998. Web.
WebFinance, Inc. (2012). Human resource information systems. Web.
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