OUM BUSINESS SCHOOL

SEMESTER MEI 2019

CBMS4303

SISTEM MAKLUMAT PENGURUSAN

NO. MATRIKULASI : 830404075432001

NO. KAD PENGENALAN : 830404-07-5432

NO. TELEFON : 012-4573494

E-MEL : fiedza38@yahoo.com

PUSAT PEMBELAJARAN : MELAKA

TABLE OF CONTENT

1. INTRODUCTION
2. HUMAN RESOURCE MANANGEMENT SYSTEM (HRMS) IMPLEMENTATION IN
ORGANIZATION
3. IMPORTANCE OF HUMAN RESOURCES MANAGEMENT SYSTEM (HRMS) IN MY
ORGANIZATION
3.1 MINIMIZING MANUAL PAPERWORK AND WORK-STRESS
3.2 REDUCING TIME LAG AND OPERATIONAL COST

3.2 REDUCING TIME LAG AND OPERATIONAL COST

3.3 ENHANCING INTERNAL COMMUNICATION

3.6 SECURITY

4. HOW HUMAN RESOURCE MANAGEMENT SYSTEM (HRMS) FACILITATES BUSINESS

PROCESS BETWEEN DEPARTMENTS OF AN ORGANIZATION
4.1 MANAGEMENT SERVICES
4.2 SERVICES AND TRAINING
4.3 PERFORMANCE AND DISCIPLINARY
4.4 PROCUREMENT MANAGEMENT

5. HOW HUMAN RESOURCE MANAGEMENT SYSTEM (HRMS) SUPPORTS

MANAGEMENT DECISION IN PROMOTION, INCREMENT, AND STAFFING

5.1 PROMOTION

5.2 INCREMENT

5.3 STAFFING

6. HOW HRMS CAN BE CONTROL IN THE ASPECT OF SAFETY, CONFIDENTIALITY AND

INTEGRITY
6.1 LIMIT ACCESS TO HRMS DATA
6.2 CREATE STRONG PASSWORD
6.3 LOG OFF
6.4 LOCK-UP HARD COPIES

REFERENCES
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1. INTRODUCTION

The grounds of this assignment is to hash out the significance of Information Technology
implementation in administering the organization’s information system (IS). Every business, whether
it is large or small, international or domestic, must surely possess their own system to manage, collect,
process, keep, as well as share data internally or vice versa. Information systems are made of five major
component, which is hardware, software, data, people, and process. “Information systems are
interrelated components functioning together to collect, process, store, and propagate information to
underpin decision making, coordination, control, analysis, and visualization in an organization.”
(Management Information Systems, twelve edition, Prentice-Hall, 2012).

Vladimir Zwass in his article titled ‘Information System’ mentioned IS as an amalgamate set of
components for collecting, storing, and processing data and to cater information, knowledge, as well as
digital. Every business organization relies heavily on information system to fulfill and administer their
operations, interact internal and externally with employees, partners, stakeholders, customers and
suppliers, while also competing in the market place within rivals and competitors. In general, IS
elucidate into a set of interrelated elements that accepts data as information, which will then be process
as a product to assist and support decision-making, and manage organizational activities.

There are numerous reasons why information system is notoriously important in any existing
organizations especially in managing its day-to-day activities. Some of which can be categorized into
having a well organize data, convenient information storage, complete data control, and playing crucial
part in analyzing and planning business operations. Data organization is pivotal to any successful
business as it support the organization into making quick and faster decisions under any conditional
factor. It also guarantees the productivity and efficiency of the business organization. Furthermore,
having organize data will make it possible for organization to access the past, present, and predict
information.

IS are advantageous when it comes to information storage as it has the capability to store data for years.
This will definitely ease the business day-to-day operations while also save a lot of time and cost as
every valuable bit of information is stored in a sophisticated and extensive database. Data control
ensures the safety and stability of IS, therefore making any business organization accessible
instantaneously to N desired information. In analyzing and planning IS holds an important role in
designing strategic measures and working its way towards business goals while also perpetuating its
competency in the market world.

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2. HUMAN RESOURCE MANANGEMENT SYSTEM (HRMS) IMPLEMENTATION IN

ORGANIZATION

Human Resource Management System (HRMS) points to a coalition of systems and processes in
connection to human resource management and information technology through HR software and
aiding to revolutionizing the workplace. The mechanization of monotonous and time consuming tasks
correlated with human resources management frees up some of the organization most worthy employees
and allows focus towards culture, retention, and other highly influence areas. HRMS covers the
processes that helps organization managing its human capital and translates their strategy into practice,
which are suitable to be implement. Some activities that comes under the purview of HRMS includes
employee record management, payroll, attendance management, and performance evaluations.

Employee record management needs HRMS to store and retrieve any employee-related information
such as basic profile, employment history, performance, and roles, on centralized database that can be
accessible anywhere and anytime in handling workforce or other organization-related decisions. Payroll
management tones down the complexities in terms of processing with complete range of services by
offering build-in accounting module, automated tax computations, audit and reporting tools, tabular and
storage, and configurable rule-based engine. Attendance management optimize daily headcount using
trends forecast and pre-defined templates to plan and manage workforce decently between processes
such as employee recruitment, on boarding, learning and training, and on annual or sick leaves. HRMS
simplifies performance management in setting individual goals, assigning weightage, collaborate and
create development strategy, and aligning it with organizational values in order to evaluate employee
performances with comprehensive reviews.

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3. IMPORTANCE OF HUMAN RESOURCES MANAGEMENT SYSTEM (HRMS) IN MY

ORGANIZATION

Human Resources Management System (HRMS) incorporate separate HR modules into taking care of
particular HR and admin tasks leaving employees free to focus on creating better workplace
environment. HRMS may automate workplace environment to transform time consuming and repetitive
tasks associated with human resource management. This will enable key workers into shifting their
focus to retention, culture, and other dominant areas. HRMS are important as implementing it will make
a huge yet rewarding impact to the organization. For instance, applying HRMS to the organization will
minimize manual paperwork, reducing employee stress, reducing time lag in tasks, lower operational
costs, increase information security, as well as improving communication internally between
colleagues, managers, and employees.

3.1 MINIMIZING MANUAL PAPERWORK AND WORK-STRESS

Completing certain tasks may need many procedures that involves a large amount of paperwork and
integrations demand manual effort to stay intact. Upon receiving customers order, the process involves
paper-based workflow, which will then be pass along to different department inbox-to-inbox. The
orders had to be re-type continuously as it passes throughout various department with the possibility of
human error to occur. Adapting HRMS into the organization encourages paperless course of actions as
all data is compile and stored into the system. Thus minimizing the usage of manual paperwork. This
definitely simplify organizations’ day-to-day operations and further enhance productivity towards
achieving organizational goals.

3.2 REDUCING TIME LAG AND OPERATIONAL COST

Introducing HRMS into workplace environment will ease daily activities hence reducing employee
workload. Happier working environment often promotes to reducing employee stress

3.3 ENHANCING INTERNAL COMMUNICATION

In gathering and distributing information, HRMS acts efficiently by allowing managers to communicate
rapidly. Using email is undeniably quick and effective, however, HRMS is more useful when
documents are stored in folders and shared with employees in need of this information. Employees can
also communicate better internally within colleagues by making changes tracked by the systems where
inputs are collected and send in a more systematic way.

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3.6 SECURITY

Information stored in HRMS is extremely sensitive especially proprietary data and employees personal
information, thus it is essential for the organization to select proper solutions that utilizes secure
transmission like Secure Sockets Layer (SSL) which encrypts data as it transmit over the internet.

4. HOW HUMAN RESOURCE MANAGEMENT SYSTEM (HRMS) FACILITATES

BUSINESS PROCESS BETWEEN DEPARTMENTS OF AN ORGANIZATION

HR Departments (HRD) are deem as the vital components to ensure proficiency and dexterity in
ensuring organizational success as they are ones administering and managing the business operations
and functionalities. HRD are also entrust to handle employee recruitments, promotions and
emplacements, managing and planning procurements, accounting, preparing budget and financial
allocation, and administering employee performance evaluation and appraisal. Maintaining the
efficiency and productivity of HRD would be ridiculous without the support from other departments
working together pursuing towards the same organizational goals. In utilizing the mantle of HRD as
well as the other departments in the organization, HRMS introduces itself as the major component of
organizational goals. A business entity usually divides its organizational functions into several other
departments with each focusing on their own core functions but aiming towards the same objectives.
Adapting HRMS in organizations works like a superglue that strongly holds these departments together
as they function dependently with each other. How HRMS facilitates the business process between
departments will be describe below.

4.1 MANAGEMENT SERVICES

This departments are holds the responsibility on matters pertaining the administrative affairs occurring
within the organization. Every personnel hired by an organization is subjected to its administrative
regulations and procedures monitoring their every moves until the end of their services. Personal
backgrounds, education, family, language, license, service history, working experience, medical
history, awards, and service profile. Therefore, HRMS use is undeniably crucial to ensure efficiency
and accurateness of collected data.

The Malaysian Public Service Departments introduces HRMIS 2.0 to ensure the management of civil
servants to be more systematically organize. The Management Service Department relies dependently
on HRMIS 2.0 to obtain information of every employee concerning career management, remuneration
management, benefits and rewards, performance and competency assessment, and such. Thus, every
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public personnel is required to update their personal information using the same database so that it can
be accessible anywhere and anytime and for whatever purpose. This proves that HRMS applications
does facilitate the business process between any departments of an organization.

4.2 SERVICES AND TRAINING

Services and training is undeniably essential in uplifting career development, promotions and acting,
and compulsory as part of the confirmation process. The fundamental role of this department focuses
on every aspect concerning employees’ services and training requirements, recruitments, confirmation
status, career advancement and acting, and so on. Subsequent to these, this department has no other
objective other than to fulfill employees desires to enhance working skills and improve efficiency and
at the same time opening their opportunity towards career development. Ipso facto, their objective to
restructure and strengthen the organization by providing fast, efficient, fair and effective services are
obtainable and concurrently formulate a more rewarding and suitable HRM policies and schemes.

Rendering suitable training and service courses are usually necessitate by the employees themselves,
however, the tedious application procedures often barricades employees’ enthusiasm to partake. The
preeminence in arranging training and services for the employees coerce this department in adapting
HRMS as part of their integral mechanism in pursuing their objectives. Take National Institute of Public
Administration (INTAN) as an example, starting as a modus training center in 1959 and a vision ‘to be
a premier public sector learning institution’ they undergo their obligations diligently. Even so, their
mission in ‘developing a competent public sector workforce through quality learning’ is still looking
vague. Less to their conscious, the public sector personnel are tired of the rarify procedures upon
application process. However, that was then, now INTAN is fully utilize with HRMS features and
efficiently functioning online.

4.3 PERFORMANCE AND DISCIPLINARY

This department withheld their part into managing the Annual Performance Appraisal Report (LNPT)
and the Annual Salary Movement Letter, nominations for Decoration Award, Honours and Medals at
Federal and State Levels and other recognitions. Reviewing reports from various sources and take
appropriate action in cases that have sufficient evidence for disciplinary action, surcharges, etc. Process
declaration of property, application for government land, application to become politically active,
application to do outside job and application of gifts acceptance by public personnel.

Why performance and disciplinary is assigned in the same department? It is said that because of ones’
disciplinary action their performances astray with it. Back in those days, the public servants are required

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to evaluate their personnel and preserving manually with ‘other piles’ of manual paperwork.
Apparently, this pile of manual paperwork must be review after one year as comparison to performance
of the current year. Now, imagine yourself being transfer to another state as part of your working
desideratum. Terrifying as it sounds, those things are history, and presently, replaced by HRMIS 2.0
application. Thanks to HRMS, your performance evaluation can now travel with and stored together
with other personal information.

4.4 PROCUREMENT MANAGEMENT

This department relies heavily on HRMS functions especially to plan and manage the procurement of
supplies, services and works for public servants. They also manage, coordinate and monitor the
implementation of procurement contracts for the organization, as well as regulating the allocation for
budget development. These responsibilities took a lot of effort and patience together with piles of
workloads and late-night shifts as every information and data collected must be present manually to
support the budget allocations. Not to aggravate the situation, but still need to be aware on the possibility
of data losses.

For this purpose, HRMS not only save many data, but a lot of life too. The systematic use of HRMS in
this department ensures efficiency in data organization and management. In addition, of course, data
sharing will not be the main issue to be haul now or in future.

5. HOW HUMAN RESOURCE MANAGEMENT SYSTEM (HRMS) SUPPORTS

MANAGEMENT DECISION IN PROMOTION, INCREMENT, AND STAFFING

“Whilst a good company with good people used to be able to get by with many a manual
procedure, these days it’s hardly going to be enough. The competitive edge modern business
demands mean every procedure and process needs to get it right first time – and for far less than
it cost in the past. This competitive edge can only be achieved through software systems whose
intelligent implementation leads not only to greater automation and the benefits this brings but
also to a digitalization of the intellectual property which constitutes a traditional HR
department.” – Orange HRM, The Importance of an HRMS to Any Company

HRMS is a centralized type of HR software that enables the management of several HR functions. The
core objective of implementing HRMS to the organization is to improve their productivity and
efficiency with efficient management of HR process, through data consolidation and automating manual
and repetitive tasks. The development of HRMS software extended from just for the usage of HRD into
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the individual work experience for each employee. Employees can easily manage and update their own
personal data while managers will be able to keep track of their attendance and performance. Since
HRMS acts as a central hub for information sharing, employees and managers can track and update
information in real-time right from the software, avoiding the inefficient process of tracking down
fragmented spreadsheets and paperwork. A brief discussion on how HRMS support the management
decision in promotion, increment, and staffing.

5.1 PROMOTION

Selecting the best candidate for promotion is not as simple as recruiting for new employees as he or she
must be evaluate through a lot of process and from many points of views. HRMS keeps and records
information about every existing employees. This enables the managerial departments to rely on HRMS
data information whenever intended such as for promotion of employees. Useful information such as
completed training courses, service durations, working history, Excellent Service Awards, and many
other information involving employee career advancement are safely keep through HRMS. Every data
obtained from HRMS is present to the managerial team to take into consideration before their final
decision-making. The managerial team will utilize all information collected to support their decision
making process.

From the public service points of interests, HRMS provides more than just candidates’ backgrounds. It
tracks every training course attended, awards, previous performance appraisals, misconducts, service
years, seniority, working experiences, and so on. All of these data required by management is useful to
support their decision making process of employee promotions.

5.2 INCREMENT

Generally, salary increment is award annually depending on the efficiency and productivity of the
organization on the current year. Not every employee receive this opportunity as it depends on his or
her personal performance throughout the year. HRMS plays its function in providing every intended
data and information regarding the subject matter. Since HRMS can accurately provide HRD with any
source of data, the managerial department relies un-doubly to it in supporting their decision-making.

Any employee in-denial to any increment is not because they are out-of-luck, but it is to teach a lesson.
As there must be reason to why some employees are not rewarded with increment. Even though HRD
is not the ones supervising the employees, they are still able to acknowledge any good or bad
misbehaviours made by them. For example, the attendance worksheets detailing on every ‘Ins’ and
‘Outs’ from the workplace. This information is accessible by the management from HRMS as it is one
of the factors taken into account in measuring organizations’ productivity and achievements.

5.3 STAFFING
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HRMS plays its part in supporting the managerial in decision-making through its ability to record and
trace the human resource in an organization in order to maximise employee usage. HRD is responsible
in keeping tracks on their employee well-being throughout their service period. Any employee quitting,
tendering resignation letters, terminated by the organization, deceased, or applied for early retirement
and so on, must notify their HR personnel, as all of this information is important to determined work
strength and productivity of the organization. The managerial department is able trace employee
shortage based on data generated by HRMS. After processing all data collected in determining
employee shortage, managerial department will then conduct a meeting and deeply discuss if whether
or not their organization need to recruit new employees.

6. HOW HRMS CAN BE CONTROL IN THE ASPECT OF SAFETY, CONFIDENTIALITY

AND INTEGRITY

Data collected from HRMS is often reliable in organization decision-making, but it needs to be extract
from raw and process until it forms into the intended format depending on organization needs. However,
data obtained from HRMS is still questionable in terms of security threats. Truthfully, despite any
security software purchased to increase data protection, the possibility for it to be breach is still
available. Sometimes, it is not about the software not functioning well but the unauthorized use that
leads to security breach. To ensure total data protection is crucial in maintaining its validity an accuracy.

Employee data is arguably the most sensitive and important held by any organization. HRMS
provides a cutting-edge level of security for all employee data, maintained within robust software
that is incredibly difficult to penetrate and provides an easy way for managers to store and review
data. The centralization of data is also incredibly beneficial in terms of scalability because as the
company grows and the headcount increases, there is minimal risk of losing sight of information
concerning new employees.

Data integrity refers to the accurateness, validity of information obtain, and whether it is reliable to be
use as source to generate certain outcomes. Even so, data integrity is still at risk of replicated or
transferred especially when data is alter between updates. In order to maintain the accuracy of HRMS
data, it is best to include input validation to preclude the entering of invalid data, error detection/data
validation to identify errors in data transmission, and security measures such as data loss prevention,
access control, and data encrypt

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6.1 LIMIT ACCESS TO INFORMATION DATA

Only authorize personnel should have access to your HRMS and ever permit any access to unauthorized
use. By limiting the amount of people having access to HRMS data, the risk of unauthorized people
getting confidential information can be reduce. In addition to the physical precautions, a company needs
to establish guidelines for access to the payroll information. For example, individual employees are
typically able to access their own records, but other employees should not have access to colleagues'
information. Determine who has access to each employee's records and how access is handle. Bring the
specific information to the employee instead of allowing him to retrieve it. Supervision while the
employee is in the payroll department is also key to maintaining security.

6.2 CREATE STRONG PASSWORD

Using strong passwords limits the chances of someone being able to break into the restricted
information. Create strong passwords on office computers and to the HRMS software. A strong
password ideally contains upper and lowercase letters, numbers, and symbols and password should be
at least eight characters long. Never use obvious or easy-to-guess passwords. Avoid personal, trade, and
family member name, the software program name, anything including the word “password”, or
12345678. Also never, use the same password for every account.

6.3 LOG OFF

When finished using HRMS software, log off. Simply logging off increases data confidentiality because
people cannot easily access the HRMS application without authorization.

6.4 LOCK-UP HARD COPIES

If there is any hard copies of any sensitive information, keep the documents locked in a safe place. Only
authorized employees should know how to access the documents.

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7. HOW INFORMATION SYSTEM CAN INCREASE OPPORTUNITIES FOR BUSINESS

COMPETITIVENESS

Information systems typically include a combination of software, hardware and telecommunication

networks. For example, an organization may use CRM systems to gain a better understanding of its
target audience, acquire new customers and retain existing clients. This technology allows companies
to gather and analyse sales activity data, define the exact target group of a marketing campaign and
measure customer satisfaction.

Modern technology can significantly boost your company's performance and productivity. Information
systems are no exception. Organizations worldwide rely on them to research and develop new ways to
generate revenue, engage customers and streamline time-consuming tasks.

With an information system, businesses can save time and money while making smarter decisions. A
company's internal departments, such as marketing and sales, can communicate better and share
information more easily.

Since automated technology uses complex algorithms, it reduces human error. Furthermore, employees
can focus on the core aspects of a business rather than spending hours collecting data, filling out
paperwork and doing manual analysis.

Thanks to modern information systems, team members can access massive amounts of data from one
platform. For example, they can gather and process information from different sources, such as vendors,
customers, warehouses and sales agents, with a few mouse clicks.

7.1 INFORMATION STORAGE AND ANALYSIS

Many organizations no longer manage their data and information manually with registers and hardcopy
formats. Information systems enables organization to make use of sophisticated and comprehensive
databases that can contain all imaginable pieces of data about the company. Information systems stores
updates and analyse the information, which the organization can then use to pinpoint solutions to current
or future problems. Furthermore, these systems can integrate data from various sources, inside and
outside the organization while enabling the organization staying up to date with internal performance
and external opportunities and threats.

7.2 ASSISTING DECISION MAKING

The long-term success of a company depends upon the adequacy of its strategic planning. An
organization’s management team uses information systems to formulate strategic plans and make
decisions for the organization's longevity and prosperity. The business uses information systems to
evaluate information from all sources, including information from external references such as Reuters

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or Bloomberg, which provide information on the general economy. This analysis of and comparison to
market trends helps organizations analyse the adequacy and quality of their strategic decisions.

7.3 ASSISTING BUSINESS PROCESS

Information systems aid businesses in developing a larger number of value added-systems in the
organization. As example, organization can integrate information systems with the manufacturing cycle
to ensure that the output it produces complies with the requirements of the various quality management
standards. Information systems also simplifies business processes and removes useless activities.
Information systems add controls to employee processes, ensuring that only users with the applicable
rights can perform certain tasks. Furthermore, information systems eliminate repetitive tasks and
increase accuracy, allowing employees to concentrate on more high-level functions. Information
systems can also lead to better project planning and implementation through effective monitoring and
comparison against established criteria.

8. CONCLUSION

Today, the organization focus to stay globally competitive by leveraging their capabilities of modern
information and communication technologies (ICT). ICT provides products & services of the highest
quality at affordable prices and top-rated customer service, and help the organization to enter new
markets through e-commerce. Globalization, collaboration, and integration have become the new
drivers in this competitive arena. To remain competitive, organization are investing in modern
information systems like Enterprise Resource Planning (ERP) software, which integrate the different
functional areas of the business, and provide consistent real-time data for fast decision-making. ERP
systems help companies manage their operations seamlessly across the globe.

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