Human resource information systems help organizations improve the productivity of employees, reduce errors related to human resources and perform organizational analyses for various business functions. These systems promote compliance with federal and state regulations and enable organizations to perform human resource audits using a combination of different parameters.
Human resource information systems are highly detailed to enhance the performance of human resource functions. For recruitment, for example, these systems simplify the processes of collecting resumes, assessing qualifications and reviewing other information that applicants have submitted. The application of these systems in payroll processing also increases organizational productivity. Human resource information systems also detect and flag errors in human resource and financial management functions and, subsequently, reduce litigation fees and potential financial loss. Some systems review compliance with business regulations and help organizations operate within the confines of the law.
Human resource information systems also allow employees and managers to find organizational and task information without consulting human resource representatives. These self-service features reduce unnecessary interactions and free up time to work on more relevant projects. Some limitations of human resource information systems include the high costs incurred in acquiring and maintaining the systems, human error during information input, and technical malfunctions that may undermine the accrued benefits.