Usage of Human Resource Information System and Its Application in Business: A Study on Banking Industry in Bangladesh

Abstract

The study aimed at examining the perceived importance of human resource information system (HRIS) in business. A structured questionnaire was used to get an opinion from human resource end-users from the 55 scheduled banks consisted of 8427 branches. A total of 1200 responses were returned as the complete form. The study then extracted the perceived important reasons of using HRIS in business through principal component (PCA) analysis. In addition, one-way analysis of variance (ANOVA) was tested to examine the variance levels among the responses. The results of the existing study revealed that HRIS only automates the repetitive HR functions but also facilitates HR end-users in allocating workforces effectively, promoting suitable corporate culture, designing employees’ career plan and improving services to the employees. Further, it found no significant variances among HR end-users’ responses on the perceived importance of HRIS according to their demographic variables. Albeit many studies had been conducted on the importance of HRIS, there was hardly any study that had gone through factor analysis. However, this study provided broad evidence to enrich the existing literature in the respective field, with improved methodological and measurement issues including factor analysis over the previous studies, to unleash the importance of HRIS in business.