K.G.MITTAL College of Arts & Commerce MALAD (West) Mumbai 400 064.

. Information System in Human Resource Project Submitted By: Mr: DEEPAK SHARMA Roll No.: 3 Under the Guidance of: Prof: Disha Vaishnav For The academic year 2011-2012 In fulfillment of the requirement for the Degree of Bachelor of Management Studies Third Year-Semester 5

Executive Summary
This project is based on Information System In HR an overview.... The belief that a person working for a firm are one of its main assets and of the decisive factors in determining its results is one that leaves little room for argument. People are not mere bricks, motor, machineries or inventories. They are humans. Organization entirely depends on humans for their success and competent environment in the global world. Human Resource Information System (HRIS), refers to the systems and processes at the intersection between human resource management (HRM) and information technology. This Project covers in depth information about the Information System in HR(Commonly known as HRIS).That is Introduction to Human Resource Management, Implementation Of Human Resource Information System, Application of Human Resource Information System, Emerging Trends and Future of HRIS. With a case study of Air India, which help us to study this topic more clearly and on which specific conclusion can be made.

DECLARATION
I, Mr. Deepak Rajesh Sharma of K.G.MITTAL College of Arts & Commerce of T.Y.B.M.S. (Third Year Bachelor Degree of Management Studies Semester 5) hereby declare that I have completed the project on Information System in Human Resource in the Academic Year. The information submitted is true and original to the best of my knowledge.

Place: Mumbai Deepak .R. Sharma Date

Acknowledgement
This project was made possible, by the efforts of many people who supported me in this endeavor, whose names if not mentioned would be inconsiderate on my part. The project Information System in Human Resource is a result of co-operation, hard work, and good wishes of many people. I student of K.G.Mittal College would like to thank Mrs.Disha Vaishnav my project guide for her involvement and timely assessment which provided inspiration and her valued guidance throughout my study on this subject.

I am also indebted to Principal Dr.John.D.Mello for giving us an opportunity to present a creative outcome in the form of a project. Im thankful to Prof. Leena Gadkari my coordinator for their friendly guidance and constant encouragement. Words fail me to express my gratitude for wide variety of interest and assistance given by Mrs.Savita Sharma Assistant H.R. Manager of Air India throughout the project.

I would like to thank all the respondents of the team members questionnaire without whose co-operation my research would not be realistic. I would also rake this opportunity to express sincere gratitude to the library staff that provided me with the right information and study material at the right time. Lastly, I extend my thanks to my college friends, family members, for their efforts and creativity which helped in giving final shape and structure to the project. I am also thankful to all seen and unseen hands and heads which helped in direct and indirect completion of the project. These acknowledgements are one way where I can thank people who have been instrumental in making the project. Without their contribution this project would have been deficient.

Place:Mumbai Deepak.R.Sharma

Date:

Table of Contents

Sr. No. 1. 2. 3. 4. 5. 6. 7.

Chapter Name Introduction to Human Resource Management Implementation Of Human Resource Information System Application of Human Resource Information System Emerging Trends and Future of HRIS Case Study Conclusion Bibliography

Page No 7 25 47 66 78 98 103

Chapter 1 Introduction of Human Resource Management Evolution of Human Resource Management. What is Human Resource Management? Status of Human Resource Management. Environment of Human Resource Management. Planning of Human Resource Information System.

1.1

1.2 1.3 1.4 1.5

Chapter 1 Introduction of Human Resource Management

1.1 Evolution of HRM The belief that a person working for a firm are one of its main assets and of the decisive factors in determining its results is one that leaves little room for argument. There is no question regarding the fact that workers qualities, attitudes and behavior in the workplace go a long way to accounting for a companys success. People are not mere bricks, motor, machineries or inventories. They are humans. Organization entirely depends on humans for their success and competent environment in the global world. They must be managed properly and mould effectively so that both individual and organization goals are accomplished. This can be done by Personnel management or Human resource Management (HRM).

HRM, a relatively new term, emerged during the 1970s. During the 4th century BC there existed a sound base for systematic management of resource in an organization. While this type of resource is one, over which companies do not have complete capital control, there do exist certain instruments to enable them to exert their influence on the quality and performance of the human capital on which they rely. In todays information society, human resource managers need to rethink how to deploy and mobilize the more valuable corporate resource: human capital. HR management professionals are becoming strategic business partners in their organization, capable of contributing to the improvement to the organizations competitive advantage. Those in the world of human resource management are often accused of living in an ivory tower, managing the human side of their organization in ways that lacks relevance in the new information era. The impetus of the HRM change comes from recognition of recent development in the HRM profession and a realization of its importance in todays competitive world.

The following table will show the evolution of HRM in India: Perio Developme Outlook Emphasis d nt Status 1920- Beginning Pragmatism Statutory, 1930 of capitalist welfare, s paternalis m. 1940- Struggling Technical, Introductio 1960 for legalistic n of s recognition techniques . 1970- Achieving Professiona Regulatory 1980 sophisticati l, legalistic, conformin s on impersonal g, imposition of standards on other functions. 1990- Promising Philosophic Human 2010 al Values, s Productivit y through
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Status Clerical

Administrati ve Managerial

Executive

people.

1.2

What is HRM? Humans are an organizations greatest asset; without them,

everyday business functions such as managing cash flow, making business transactions, communicating through all forms of media and dealing with customers could not be completed. Humans and the potential they posses drive an organization. Todays organizations are continuously changing. Organizational change impacts not only the business but also its employees. In order to maximize organizational effectiveness human potential-individuals capabilities, time and talents must be managed. Human Resource management (HRM), also called as personnel management, consist of all the activities undertaken by an enterprise to ensure the effective utilization of employees towards the attainment of individual, group and organizational goals. Human resource management works to ensure that employees are able to meet the organizational goals. In other words, (HRM) is a management functions that help managers to select, recruit, train and develop members for an organization.
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An organizations HRM function focuses on the people side of management. It consist of practices that help the organization to deal effectively with its people during the various phases of the employment cycle, including the pre-hire, staffing and post hire. The pre-hire phase: It involves the planning practice. The organization must decide what type of job openings will exists in the upcoming period and determine the necessary qualifications for performing these jobs. During the hire phase the organization selects the employees. Selecting practice include recruiting applicants, assessing their qualifications, their physical fitness, family background etc and ultimately selecting those who are deemed to be most qualified The staffing: It states maintaining of selected and existing employees. Both the job description (details of the job) and the job specification (specification required in the candidate for a particular job) are useful tools for staffing process. Someone (e.g. a department manager or some event (e. g. an employee is leaving) within the organization usually determines a need to hire a anew employee.

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In large organization employee requisition must be submitted to the HR department that specifies the job title, the department and the date the employee is needed. It is the duty of human resource management to maintain the employees for a longer period of time. The post hire phase: In the post hire phase the organization develops HRM practice for effectively managing people once they have come through the door. These practices are designed to maximize the performance and satisfaction levels of employees by providing them with necessary knowledge and skills to perform their jobs and by creating conditions that will energize, direct and facilitate employees effort towards meeting the organization objectives. The following three points collectively give a simplistic explanation of HRM: HRM is a series of integrated decisions that form the employment relationship; their quality contributes to the ability of the organizations and the employees to achieve their objective. Their functions are confined to business establishments only.

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 HRM are concerned with people dimensions in management. Since every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization which are essential in achieving organizational objectives. This is true regardless the type of organization-business, government, education, health, recreation or what so ever it is.

HRM is the planning, organizing, directing, controlling of the procurement, individual, development, organizational compensation, and societal integration, are maintenance and separation of human resource to the end that objectives accomplished.

1.3

Status of HR Status of human resource management/ department in the

total organizational structure depends on whether the unit is small or large. In most of the small organizations, there is no separate department to co-ordinate the activities relating to personnel. In fact, there may not be any personnel managers also.

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Service of outsiders who specialist in maintaining accounts and records relating to provident fund, pension and other statutory requirements are retained for a fee. Alternatively, a low placed employee may be entrusted with the task of attending these functions. This typically takes place in a small scale unit.

Chart below clearly shows HRM in small unit.

Owner Manager Owner / /Manager

Production Production Manager Manager

Office Manager Office Manager

Sales Manager Sales Manager

Accountant Accountant

Personnel Personnel Assistant Assistant

A large scale unit will have a Manager / Director heading the Hr department. His or her status will be equal to that of any executive. This arrangement holds well when the company has single unit. Where the company has multiple plants located in different parts of the country, there may be centralized HR/ personnel department at the main or registered office and each plant will have separate HR/ personnel departments.
15

Routine activities relating to each plant are handled by the HR/ personnel department attached to the work, whereas the board policies, matters concerning executives, and the like are handled by the central department. This is the case with conglomerates such as L & T, BHEL etc.

Chart below shows HRM in Large scale unit.

Chairman and Chairman and Managing Managing Director Director

Director Director Production Production

Director Director Finance Finance

Director Director Personnel/HR Personnel/HR M M

Director Director Marketing Marketing

Director R & D Director R & D

Coming to the composition of HR department, it may be stated that it depends on the scale of operations and attitude of the top management towards its personnel. However, a typical HR department is headed by a Director, under who are ManagerPersonnel, Manger- Administration, Manger- HRD and ManagerIndustrial Relations. The department will grow in size and importance when new demands are placed on it by the top management.
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Chart below shows the composition of HR. personnel department.

Owner/MaOwner/Manager nager ManagerManagerPersonnel Personnel HR HR Planning Planning Grievance Grievance Handling Handling Hiring Hiring Compensa Compensa tion tion
ManagerManagerAdministrati Administrati -on -on

ManagerManagerHRD HRD Appraisal Appraisal

ManagerManagerIR IR

PR PR

Canteen Canteen

Training of Training of employee employee

Medical Medical

Welfare Welfare

Transport Transport

Legal Legal

1.4

Environment of HRM Environment is an important variable in the HRM model.

Environment may be understood as all those forces which have their bearing on the functioning of the HR department. The forces arepolitical and legal, economic, technological, cultural, unions, organizational culture and conflict, and professional bodies. The first four together forms the external environment and the last three factors constitute the internal environment of the HR department.

17

Before examining its forces, it is useful to understand the utility of analyzing the environment in which HR managers have to work Analysis of the environment is useful for the HR manager and his/her team in order to become proactive and not to remain reactive to the environment. Reactive strategy serves the purpose when the environment is fairly stable and competition is less severe. Proactive steps are vital for any organization if it has to survive in such an environment. Internal Forces: Unions: Unionization as an external factor was examined earlier. The same has been included here as an internal environment. This is justified because a firms personnel activities will be influenced by its own unions as well as the unions of the other plant. A trade union may be understood as an association of workers or management formed to protect their own individual interests. All HR activities- recruitment, selection, training, compensation, IR and separation are carried out in consultation with union leaders. Thus it plays an internal factor for HRM.

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Organizational Culture and Conflict: Every organization as mentioned has its own culture. Organizational culture is the product of all the organizational features- its people, its success and its failures. Organizational culture reflects the past and shapes the future. It is the job of HR specialist to adjust proactively to the culture of the organization. For example, objectives can be achieved in several acceptable ways. This idea, called equifinality, means there are usually multiple paths to objectives. The success is picking the path that best fits the organizational structure.

Professional bodies: Professional bodies have not been able to prescribe its accreditation as a pre-requisite for HR practitioners. In fact it has not even prescribed a minimum academic qualification for an HR professional. It is now expected by an HR practitioner to declare their allegiance to the code. This is also a striving internal force for HR management.

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External Forces: Political-Legal: The political environment covers the impact of political institutions on the HRM department. In a democratic Political setup (as opposed to a totalitarian system), there are three institutions which together constitute the total political environment. They are- the legislature, the executive and the judiciary. The legislature, also called parliament at the central level and Assembly at the state level, is the law making body. The plethoras of labor acts which are in force are enacted by the legislature. The executive popularly known as the government is the law impending body. The legislature decides and the executive acts. Above these two is the judiciary which has the role of watchdog. The main function of the judiciary is to ensure that both the legislature and the executive work within the confines of the constitution and in the public interest.

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Economic: Economic environment refers to all those economic forces which have a bearing on the HR function. Growth strategy, industrial production, agriculture, population, national and per capita income, money and capital markets, suppliers, competitors, customers, and industrial labor are the components of the economic environment.

Technological: Technology as a systematic application of organized knowledge to practical tasks. Science and technology enabled man to overcome distance; control birth rate, save lives, generate, preserve and distribute energy, discover new materials and substitute existing ones, introduce machines to do the work for humans, substitute mental work with computers, unravel the mysteries of the seas and the space, and provide managers with a lot of leisure and comfort in the process.

21

Cultural Forces: Culture refers to the complex whole which includes knowledge, belief art, morals, laws, customs and other capabilities and habits acquired by an individual as a member of a society. Culture trains people along particular lines, tending to put a personality stamp upon them. Thus, we have Indians, Japanese, Americans, British, and Germans and so on. It is not that all people are alike in particular there are sub cultures within a culture. When people with different cultural background promote, own and manage organizations, they themselves tend to acquire distinct cultures. Thus, the culture of the Tata group of companies is different from that of the enterprises owned and managed by the Birlas. The culture of these groups of companies differs from that prevailing in the new economy firms.

1.5

Planning of Human Resource Information System (HRIS) Some refer to HRMS, HRIS planning as the pay me now,

pay me later syndrome. The organization must do a proper study, engage a consultant to do it, or bypass the step entirely, or eventually pay a price. Sometimes management that a new HRMS will solve the organization problems.

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Perhaps some managers or technicians want others to perceive them as current; perhaps the organization has periodic but difficult to define deficiency in management information reporting. The drive for a new system should come from two related bases: 1. Understanding the current business, organizational and environmental conditions that require correction or enhancement, and 2. Understanding what computer systems for human can and cannot do. In other words the purpose for planning human resource management system or information system is to enable organization to anticipate their future HRM needs and to identify practices that will help them to meet those needs. HR planning may be done on a short or long term (three or more years) basis. Its aim is to ensure that people will be available with appropriate characteristics and skills when and were the organization needs them. The user of HR planning enables companies to gain control of their future by preparing for their likely events. That is, they can anticipate change and device appropriate course of action. When companies learn how to capitalize on future events, their own future improves.

23

As valuable as HR planning is, many companies ignore this opportunity. Some see to it as too difficult and frustrating, while others simply do not see the need for it. However when failing to properly plan for the human resource, employers are forced to respond to events after they occur, rather than before; they become reactive; rather than proactive. When this outcome occurs, an organization may be unable to correctly anticipate an increase in its future demand for personnel. At best, such a company would be forced to recruit personnel at the last minute and may fail to find the best candidates. At worst the company may become seriously understaffed. If company remains understaffed for a prolonged period, it may ultimately suffer a variety of consequences. For instance, the under staffing could cause existing employees to experience a great deal of stress as they attempt to meet additional demand without adequate resources and assistance. If required work is not getting done, the firm ultimately may experience an increase in back orders, which could cause a decrease in customer goodwill, an increase in competition and loss of market share.

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The following tabular column will show the result of improper planning of human resource which will show the decline in number of employees with an increase in the number projected sales for the coming years.

Years Projected sales (thousands of dollars) Number of employees

2006 2007 2008 2009 2010 10,2008,7007,8009,50010,000 240 200 165 215 ?

Chapter 2

25

Implementation of Human Resource Information System

2.1 Role of consultant in Information System Human Resource. 2.2 2.3 2.4 2.5 Implementation planning of HRIS. Maintaining of Human Resource Information System. Performance Appraisal in HRIS. Evolving Role of HRIS Manager.

Chapter 2

26

Implementation of Human Resource Information System 2.1 Role of consultant in HRIS

The term consultant refer to any professional who offers human resources and IS advice to client for a fee, the explosion in the number of firms and individuals offerings HRMS consulting services demonstrates not only the growth in computerized human resource applications but also the recognition that different circumstances benefit from different types of consultants. The best consultant for small manufacturing company may not be the best one for an international banking firm. Every organization must carry out its own process of consultant selection and not rely solely on the experiences of a competitor or an organization for which human resources staff worked in the past. The HRMS project team should screen potential consultants concerning experience, areas of expertise, availability, rates and personal compatibility. Selecting the rich consultant depends on both quantitative and qualitative factors. In developing a prospective consultant and in evaluating consultants proposal. Project manager should consider following points:

Technical and human resource knowledge:27

An effective HRIS consultant must understand computer systems and human resource issues and practices. The consultants approach to HRIS and whether it fits the specific project must be evaluated.

Experience with similar projects:Some consultants offer planning services only; others offer a combination of implementation services as a part of their total package. Some concentrate only on payroll systems, some only on human resource systems, others work on all aspects of an HRIS. A firm should select a consultant whose technical expertise, experience and services match the needs of this specific project.

Effective communication skills:The human resource staff and management should feel that the consultant hears what they say, speaks clearly in ways they understand and communicate well with both orally and in writing with those who will be involved in the project.

Independence:-

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An HRIS consultant must have no ties to any particular vendor. This is, of course, unlikely if the consultant has a relationship with vendor. This can occur when the consultant specializes in implementing the systems offered by particular vendor. In such situation, the consultant has a vested interest in which vendors system a client selects. At very least, the client should require that potential HRIS consultant disclose any financial or other working relationships with vendors before contacting for consultant services If the role of consultant is effectively functioned in an organization, it will have a great impact not only on the members working in it but also the employees who are on path of joining. The future prospects of any organization depend upon the role of the consultant. He is considered to be the backbone of the organization and his character plays a vital role for selecting a right type of candidate. The information between the consultant and the organization should be transparent. A typical flow of information between a consultant and an employee can be clearly seen in the diagram

Consultant
Marketing and Business Development

Satisfied Client

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Reporting and Project review

Request for services/ Request for Proposal

Proposal of services/ Deliverables

Initial Personal Contact/ face-toface Meeting

Contract Letter of Service / Deliverables.

Analysis of Needs/Problem Definition.

Modification and Negotiation.

Development of Specific Proposal

2.2

Implementation planning of HRIS

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Human Resource Information System implementation planning must integrate two types of priorities: the goals of the human resource department and the primary targets of the IS (Implementation Schedule) department for system development in the future in many cases, human resource can set implementation schedule only with the cooperation and participation of IS management, often through negotiation and compromise. HRMS planning also must take into account restrictions on staff and technical resources availability imposed by no computer priorities, as well as how such outside priorities may influence data and procedures that affect the HRMS. To establish implementation priorities, the HRMS project manager should give department or functional heads opportunities to explain their perspectives on how and when to integrate their functions into new HRMS. The HRMS project team should develop the implementation plan before finalizing any equipment or software purchases or introducing even one piece of the new HRMS. Given below are the steps involved in implementation process of Human Resource Information System.

Implementation Schedule

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In HRMS implementation, as with most projects, scheduling is a critical component in planning and development and, ultimately, in management success. Only by developing, monitoring, and maintaining an accurate schedule can managers control costs and resource effectively. The schedule should include estimated start dates, end dates, and elapsed time or duration of each implementation task or activity. The team should then estimate tome requirements based on the experience of staff, vendor and consultant with similar projects. Delivery dates and the schedule of deliverables from outside source should be double checked. Draft copies of the schedule should be sent to all HRMS project team members and management staff, and their input should be solicited before dates are finalized. Every member of the HRMS implementation team should have the opportunity to participate in the development of the schedule. Staffing for Implementation During the HRMS planning and design stages, the principle people involved are the humans resource staff and project manager or consultant. During implementation, the number of people involved in the new HRMS increases dramatically. Virtually the entire human resource staff plays some role

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outside department such as IS and the facilities also take part. Several specialists who were not involved earlier participate as a part of implementation team. Some of these new members and their functions are as follows: Human Resource manager: Immediately following implementation, management responsibility of the new system shifts from the HRMS Project manager to the actual HRMS manager, sometimes called as human resource system center (HRSC) manager. The HRMS manager supervises and assumes responsibility for the ongoing system, staff and user relations. The individual who has served as HRMS project manager may or may not be the best system manager. Sometimes skilled and challenged by project planning, development and implementation may not wish to serve as administrator of a comparatively steady state system. The project implementation plan should include benchmarks and dates for shifting responsibility from the HRMS project manager to the HRMS manager.

Implementation specialist:

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In certain situations, a consultant who is an implementation specialist provides important planning, administrative and technical guidance. An implementation specialist may be part of the vendors staff or an experienced consultant.

IS (Implementation Schedule) Auditor: This function is not generally part of the implementation team. The IS auditor reviews the operations of the HRMS from a reliability standpoint to ensure that the system performs as expected, process transactions consistently, and calculates valid totals.

Training Coordinator: Training takes place at various points during implementation; the HRMS implementation team should include at least one member of the training function. This person coordinates all aspects of training team members, management and users. Responsibilities include training program design, staffing, scheduling, facilities and materials.

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2.3

Maintaining of HRIS In an HRIS, maintenance refers primarily to software

maintenance

rather

than

hardware

maintenance.

Hardware

maintenance is more straight forward and often takes place under contract with the equipment vendor or an outside maintenance organization. Software maintenance means technical changes that do not alter HRIS functions and features, correcting bugs in program data, modifying system already in production or fine tuning a system so that it will run faster etc. maintenance refers to any changes made to the HRIS after the system becomes operational and has been accepted by users. Types of Maintenance: Corrective maintenance refers to fixing problems that prevent the system from working the way designers and users intended to work. These bugs may stem from incorrect design, development or implementation. In the post operational state, bugs are mistakes that did not appear in system testing performed during implementation. More corrective maintenance takes place relatively early in the HRIS
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development cycle, while the system is still growing and users are learning to use it in the real world of human resource. Adaptive maintenance refers to modifications to the HRIS in response to changes technology, government regulations or external forces such as fixes or new system releases from the vendor. Adaptive maintenance may add entirely new functions to the system or fine-tune existing capabilities and performance criteria. Examples include increasing the size of the zip code field from five to nine characters, replacing dedicated terminals with microcomputers etc. Perfective maintenance refers to modifying the system to respond to changes and request from users and technicians. Users react to what they see in HRIS and how it works. This reaction generates idea for improvement or additional functions. Perfective maintenance includes activities such as adding a new file, adding a new screen or report, and modifying schedules for distributed printing of reports during facility expansion. In a well planned system, corrective maintenance can require a smaller proportion of maintenance resources the adaptive and

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perfective work. In such situation maintenance helps the system meet an increasing number of human resource needs as the HRIS grows and matures. The maintenance budget: Effective maintenance needs effective funding. The HRIS and the human resource department must begin budgeting for maintenance by regarding the HRIS as an asset rather than a liability. Many organizations list software systems on the balance sheet as an asset and therefore should treat the HRIS as one. An organization will direct the largest proportion of its IS budget towards maintaining operational systems. Of the overall cost of building and operating a system, maintenance generally consumes over 50 percent of resources during the useful life of the HRIS. In case of HRIS, maintenance accounts for about two-third of systems cycle costs. The maintenance burden for an HRIS is potentially higher than for other systems for several reasons which states as under: The human resource department and its system requirement are dynamic. Constant change is the rule than exception.

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Government regulations often dictate a large proportion of these changes. The traditional lack of IS resource for human resource applications leads to compromises in application design and documentation. These, compromises in turn, make maintenance more difficult. The lack of IS support leads to a larger backlog of maintenance request for human resource applications.

As a system attains maturity, maintenance costs rise. If the department continues to use the system after it has exceeded its useful life, the resulting sharp increase in maintenance costs usually result in serious shortfalls in the HRIS budget. For instance, a company uses information system in human. This is shown in the below tabular:

Year HRIS HRIS HRIS Actual Budgetin plann Softwa Implem HRIS g for ing re entation mainten HRIS
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Surplus / Shortfall

ance Cost 01 02 03 04 05 06 07 08 09 10 11 $ $ 150,0 150,00 00 0 $ 225,000 $ 225,000 $ 40,000 $ 60 000 $ 1 11 000 $ 2 10 000 $ 3 35 000 $ 4 85 000 $ 6 60 000 $ 110000 0
Performance Appraisal in HRIS

Maintena nce

$ 1 00 000 $ 1 10 000 $ 1 21 000 $ 1 33 000 $ 1 46 000 $ 1 61 000 $ 1 77 000 $ 1 95 000

$ 60 000 $ 50 000 $ 11 000 ($ 77 000) ($ 1 89 000) ($ 324 000) ($ 483 000) ($ 905 000)

2.4

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Performance appraisal is an assessment of an individuals performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, cooperation, judgment, versatility health and like. Assessment of employees performance should not be confined to past performance alone. Potentials of the employee for future performance must be assessed. The performance appraisal process in human resource information or management system takes place in the following ways: Objective of performance appraisal: The main objective include effecting promotions and transfers, assessing training needs, awarding pay increase and the like. The emphasis in all this is to correct the problems this objectives are appropriate as long as the approach in appraisal is individual. Appraisal, in future, would assume systems orientation. In the system approach, the objectives of appraisal stretch beyond the traditional ones. In the system approach, appraisal aims at improving the performance, instead of merely assessing it. Towards this end, appraisal system seeks to evaluate opportunity factors. Opportunity factors include the

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physical environment such as noise, ventilation and lightings, available resource such as human and computer assistance, and social processes such as leadership effectiveness. These opportunity variables are more important than individual abilities in determining work performance. Establish Job Expectation: The second step in the appraisal process is to establish job expectation. This includes informing the employee what is expected of him or her on the job. Normally, a discussion is held with his or her superior to review the major duties contained in the job description. Individuals should not be expected to begin the job until they understand what is expected of them. Design Appraisal Program: Designing appraisal programme poses several questions which need answers.

They are, Who are the raters?

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 What problems are encountered? How to solve the problems? What should be evaluated? When to evaluate? What methods of appraisal are to be used? Performance Interview: Performance interview is the step in the appraisal process. Once the appraisal has been made of employees, the raters should discuss and review the performance with the rates, so that they will receive feedback about were they stand in the eyes of superiors. Feedback is necessary to effect improvement in performance, specifically when it is inadequate. Specifically, performance interview has three goals: To change behavior of employees whose performance does not meet organizational requirement or their own personal goals, To maintain the behavior of employees whose perform in an adequate manner, and To recognize superior performance behavior so that they will be continued.

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 Use of Appraisal Data: The final step in the evaluation process is the use of evaluation data. The data and information generated through performance evaluation must be used by the HR department. it may recollected that the most significant rewards employers offer to employee are: Money to purchase goods and services required not only for current and future survival, but also for the luxuries modern life has to offer. The opportunity to use innate and learned skills and talents in a productive manner that the individual and his or her managers and co-workers recognize as valuable.

Opportunities to interact with other people in a favorable working environment, also to learn grow and make full use of potential.

A sense of performance and stability through the continuing existence of the organization and the job. The opportunity to perform work assignment within an environment that not only protects but promotes physiological, emotional and psychological health. These were the process were each employee would have to go for their performance to be known by the organization.
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If the performance of the worker or employee were found to be good they were appreciated by giving monetary rewards. Following diagram shows a simplistic table of performance appraisal approach.

Objectives of Performance Appraisal

Establish Job Expectation

Design an Appraisal

Performance Interview

Use of Appraisal Data

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2.5

Evolving Role of HRIS Manager Regardless of the size or maturity of the system, the goals of

the HRIS or human resource manager parallel those of the HRMS as a whole. Sound performance as an HRIS manager rests on recognizing certain goals of the HRIS itself. To develop and maintain systems that support human resources and contribute to overall corporate management success. To ensure delivery of maximum benefits from the HRIS, at the lowest possible cost, through the application as accepted human resource and IS tools and techniques. To balance the needs of users with the needs of IS and to obtain clear direction for prioritizing, developing and operating the HRIS. To gain acceptance among corporate, human resource and IS management as an integral part of the overall structure and as an asset to the entire organization. Role of Manager in HRIS The HRIS manager handles more administrative than technical responsibilities. Unlike the supervision of implementation, HRIS management does not require specialized computer system knowledge. A manager who needs computer expertise can consult
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with HRIS maintenance and with HRMS staff. Briefly an effective manger needs following skills and experience. Goal setting: Establish a goal based on CFSs or other well established business procedures. Make goals clear to supervisors and staff. Communication: Good communication skills are so basic to successful management that a few of particular importance to HRIS managers are included in the accompanying sidebar. Planning: HRIS planning includes staffing, budgeting, facilities, equipment and project prioritizing. Many of the most useful planning approaches and techniques for HRIS development and maintenance. Organization skills: Organization skills are particularly such as important in an interdisciplinary field HRIS management.

Management must tailor procedures specifically to particular situations. Moreover, many of the individuals whom HRIS decision affects directly do not work under the supervision of the HRIS manager, some may not only report to separate functions or department but also hold relatively high positions in the organizations.
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 Delegation and supervision: The first step in delegating is determining what to delegate and to whom. The HRIS manager should delegate clearly making sure staff members understand the criteria for satisfactory performance. Successful delegation includes accepting that the result may be different from what HRIS manager would have done.

The HRIS manager should have broad knowledge of human resource but often lacks familiarity with specific, technical operations. In large organizations, the right manager can have elegant business management skills but very little human resource knowledge and may not even come from the corporate world. This type of manger can do a very well job by consulting with human resource experts within the department.

Chapter 3
47

Application of Human Resource Information System Training and development in HRIS.

3.1

3.2

Payroll system in Human Resource Information System. Relationship of employee in HRIS. Requirements and benefits in HRIS.

3.3

3.4

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Chapter 3 Application of Human Resource Information System

3.1 Training and development in HRIS Training, like compensation, has employer retention as its primary mission. Trainings strategic contributions to the goal include employee orientation, diagnosis and correction of skills problems, remedial training, and sometimes long term career development. The specific objectives of a training function depend on the organizations environment, culture and approach to training and development. For instance, employees in some firms need significant outside education. Many jobs require specialized college and university degrees or certificates, such as those in electronics, investment banking and nursing etc. other firms may require skills not usually covered in external educational settings, such as real estate leading, insurance writing etc. a broad overview of the most common training activities is presented in the material that follows.

Planning

for Training:

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Trainings

most

responsibility

is

to

determine

the

organizations training needs. Which jobs require training? What skills must this training include? Which types of training work best for each job-vestibule, formal, or on the job?

Eligibility

Determination:

Training must determine which individuals are eligible for or require specific training. They may target groups, job families or individuals on the basis of job classification, service, and time in position or education. Training Administration: The training function must decide who will provide the training- training staff, line management or external resource. This function then manages registration, attendance, venues, materials, staff, assignments and reporting of training performance results.
Training

Courses and Presentation:

Training and development presents internal training. Staff from these functions develops course curricula, materials and testing. Training may take place on several levels. New employee orientation covers work rules company policies,

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benefits and possibly specific skill requirements and employer expectations. Skills training cover practical matters, such as how to perform particular operations, operate new equipment or analyze a financial statement. Supervisory training emphasis interpersonal skills, communication, time management and responsibility of supervision. Management training or management development includes decisionmaking and analytical techniques such as problem solving, oral and writing presentation skills, human interaction and so on.
External

Training and Education:

Training monitors participation in outside course work for which the firm provides tuition, material reimbursement or both. Training staff pays attention to the costs and benefit of such courses.
Career

Development Programs:

Employees who appear to have promo ability and a long term future with the organization may receive special training and counseling to prepare them for future opportunities and responsibilities.

Skills

Inventory:

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Training may develop a complete registry of the skills, experience and goals of the organizations employee population. Training staff often do this in conjunction with the planning and forecasting function or the management development function. The assignment of this responsibility depends on whether the skills inventory focuses on recruiting, career development or management succession.

EEO and EEO and affirmative action affirmative action Other Applications Other Applications

Payroll Payroll Compensation Compensation

Training & & Training Development Development

Benefits Benefits

Health and Safety Health and Safety Human Resource Human Resource Planning Planning

Health and Safety Health and Safety Employee & & Employee Industrial relations Industrial relations

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3.2

Payroll system of HRIS Most business, even small ones have computerized the payroll

function internally or use a service bureau. All except the smallest firms have sort of automated payroll because accurate payroll involves tracking so many types of tax regulations. This is due to highly quantitative nature of the work involved in payroll, payroll system preceded personnel systems as automated applications. Moreover, payroll systems generally have a longer viable life because their purpose and structure remain fairly stable. Payroll needs some basic employee information, which is usually obtained by HRIS but may collect itself if the data fields do not correspond. This include following: Employee name (payroll may capture the name as the employee wants it on the paycheck) Pay location ( address to which the pay check should be sent, which may differ from the employees residence, for instance, it may list a post office box or a company mail stop) Home address (payroll must mail tax information to the employees street address, not just a post office box, company mail stop or bank address.)

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Social security number ( number provided to each employee as his/her secret code)

Employee number (if different from social security number) Employee category (regular, part-time or contractor) Employee status (active, retired, on leave or separated) To calculate actual payments, payroll also imports compensation tables which include the following:

Total earnings:The payroll system, each earning type has a unique code, name and set of rules for calculation. The earnings determination routine calculates each type for each employee, accumulates the result of each calculation in the employees file, and totals these earnings as gross pay. Payroll also may process deferred earnings and adjust net pay accordingly. It then performs the entire set of earnings calculations for each employee in turn until it has computed all gross earnings for this pay period.

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Pay rate and frequency:Compensation provides data on pay frequency (such as weekly, biweekly, monthly or semimonthly), which is also known as pay basis. Some systems allow payroll to select different frequencies for different pay types or job grades. Payroll uses this pay rate information as part of the algorithm for each earning type.

Time and Attendance:To calculate paychecks, particularly for hourly workers, payroll needs data from the timekeeping function. For nonexempt employees, data include hours worked and types of hours. For example: employees, information may be reported on an exemption basis. Employee relation may track this information, or a separate timekeeping function in each line or operating unit may handle it. To eliminate data transfer problems, payroll it self sometimes handles these responsibilities.

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Commission:To calculate commission payments for salesperson and others, payroll needs information from sales. In some situations, the payroll system can accept sales results electronically, if not this information arrives in printed form. In retail environments, the sales function may receive commission related information through a point-of-sale recording device, such as computerized cash register, if the employees commission depends on individual sales result, the sales information is extracted from each employees file if commissions depend on department or territory sales results, each employees file may have code that ties it to table of sales results that payroll updates each pay cycle.

Tips:Some service business that employee workers who receive tips, such as hotels and restaurants, record those tips for reporting to the government. It employees pool their tips, the shift manager total each shifts tips and divides them according to a set ratio.

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Bonus:Management declares a bonus as a distribution of profits. Bonuses are almost always discretionary, though they may relate to some other business condition, such as sales, breakage rates or loan-loss ratio.

Pensions:Payroll deals with pensions in two basic areas: pension distribution and pension contributions. Increasingly, payroll does not handle the management or distribution of pensions and other retirement benefits. Payroll still administers the calculation of pension contributions from employee pay. To hay payroll calculate these deductions, pension administrators must provide pension participation and contribution data. After pay cycle, payroll may in turn, provide retirement benefits.

Deductions:There are several type of payroll deductions, the most notable of which is federal income tax withholding other major types include state income tax withholding and employee contributions for benefits. The average company has 100 to

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200 types of deductions categories. As with earning type each type of deduction has a unique identifier, name activation cycle and algorithm arrayed in a deduction table. The algorithm indicates whether to base each deduction on earnings, before or after taxes, and to include the deducted amount as taxable income. On the basis of the above functions the payroll of a particular employee is given for an effective management of human resource.

3.3

Relationships in HRIS The employee and industrial relations staff in human resource

information system access the HRMS frequently; this is because employee and industrial relations play a largely reactive, though sometimes preventive role. In other words, employee relations seldom has its own module within the HRIS. Employee relations usually has little involvement in the design and development of the human resource management system. Their actions usually result from complaints or requests from employee or their supervisors. The goal of employee relation in most generic sense is to provide a supportive work environment for employees. Employee relations

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representatives as intermediaries and guides through the complexity of employee services. For this reason, employee relations may have a higher profile among the general employee population than other human resource functions. It usually considers employees rather than management as clients but still function within established company policy. An employee relation representative is often a human resource generalist responsible for a specific site or work group within the organization. Employee relations staff becomes involved in specific situations at request of individual employees, supervisors or mangers. These staffers strive to facilitate resolution of issues that may involve almost any human resources function. Employee relation also has direct responsibility for sensitive issues in which personnel judgment and management decision making overlap. These may include performance review administration, problem involving attendance or absenteeism, apply and work rules issues, union relations and employee assistance programs for issues such as substance abuse, financial troubles and domestic problems. For specific individuals or positions, they also may interact with the employment function in resolving staffing and internal placement issues.

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Some other roles of employee relations include disciplinary action, collective bargaining and so on. The above explanation has been illustrated in the below chart:

Employee and Employee and Industrial Industrial Relations Relations Employee Employee Assistance Assistance Programs Programs Performance Performance Reviews Reviews

Disciplinary Disciplinary Action Action

Collective Collective Bargaining Bargaining

3.4

Requirements and benefits in HRIS The benefits function both resembles and differs from

compensation. Compensation and benefits are the areas of greatest human resources expense in most firms. Like compensation, benefits helps an organization decide how to allocate internal financial resource. Benefit also must evaluate outside resource such as insurance carriers, claims processors, actuaries and other benefits providers and administrative services. Moreover, government agencies seldom become involved in the methodology of compensation, they maintain a sharp interest in benefit.

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As with compensation, the primary role of benefit is to help attract and retain desirable employees. The more closely an organizations benefits package matches the needs and lifestyle of potential employees, the greater its hiring and retention advantage. To achieve these goals, benefits staff performs many tasks. Types of benefits: Every firm has its own list of benefits, and every year new benefits choices emerge. Each benefit has its own data requirements. This is because many of these requirements depend on the type of benefit. HRIS designers can clarify their tasks by classifying benefits according to type: time benefit, risk benefit and security benefit. Time benefits include sick leave, vacation leave, and maternity leave, paid time off, jury duty, military leave, paternity leave, parental leave (adoption), and leave without pay, bereavement leave, relocation leave and sabbaticals.

Risk benefits are various forms of insurance that help employees and their families in case of injury, illness or death. These include health insurance, life insurance, long term and short term disability insurance, accidental death and disbursement insurance and travel accident insurance. Workers

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compensation may be considered a type of insurance and benefits may administer it. This relates to job safety; however the occupational health and safety function may handle its administration. Security benefits are thrift and savings programs, credit union loans, pension plans and other retirement oriented programs; they also include planning service such as estate planning, income tax preparation and executive financial planning. Employees often consider credit unions to be a security benefit. Because of the personal nature of credit union loans or loans directly from the organization, the human resource department tracks such loans. Pension and other recruitment plans are definitely security benefits, but the heavy fiduciary responsibilities they involve often lead management to place their administrative to separate, financially specialized functions. These above mentioned were the benefit received by an employee in an organization.

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Health and safety Every twenty seconds of every working minute of every hour through out the world, someone dies as a result of an industrial accident. Safety in simple terms means freedom from the occurrence or risk of injury or loss. Industrial safety or employer safety refers to the protection of workers health from danger of industrial accidents. An accident then is an unplanned and uncontrolled event in which an action or reaction of an object, a substance, a person or a radiation results in personal injury. Safety programme:Safety programs deals with the prevention of accidents and with minimizing the resulting loss and damage to persons and property. Considering the health and safety measures provided to the employees there are five basic principles governing the safety programme in an organization. Industrial accidents result from a multiplicity of factors.

But these have to be traced to their root cause, which are usually faults in the management system arising from poor leadership from the top, inadequate attention to the design of safety into the system, a systematic approach to the

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identification, analysis and elimination of hazards and poor training facilities. The most important function of safety programmes is to

identify potential hazards, provide effective safety facilities and equipment and to take prompt remedial action. This is possible only if there are:
1.

Comprehensive and effective systems for reporting all

accidents causing damage or injury, 2. Adequate accident records and statistics, 3. Systematic procedures for carrying out safety checks, inspections and investigations, 4. Methods of ensuring that safety equipment is maintained and used and 5. Proper matters. The safety policies of the organization should be determined by the top management and it should be continuously involved in monitoring safety performance and in ensuring that a corrective action is taken when necessary. means available for persuading mangers, supervisors and workers to pay more attention to safety

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 The management and the supervision must be made fully accountable for safety and health performance in the working areas they control. All employees should be given thorough training in safe methods of work and they should receive continuing education and guidance on eliminating safety hazards and prevention of accidents. A safety programme generally contains six elements which are depicted in the below diagram:

Strategic Choices

Development of Safety Policy

Evaluation of Effectivenes s

Organization for Safety

Implementati on of Programme

Analysis for causes for Accident

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Strategic choices, development of safety policy, organization for safety, analysis of cause for accident, implementation on of programme and evaluation of effectiveness are the safety programmes which revolve around each other for the betterment of employees as shown above.

Chapter4 Emerging trends and Future of HRIS Co-evolution of Human Resource Information System Rising trends of HRIS. Prospect of HRIS.

4.1 4.2 4.3

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Chapter 4 Emerging trends and Future of HRIS

4.1

Co-evolution of HRIS Co evolution generally refers to the process of nature in

which two species evolve together; each change in response to evolution in order to allow their mutually dependent relationship to continue, thus, HRIS is also coevolving. This evolution of human resource is changing the Human Resource Information System this is explained further: Regulatory and operational changes within human resource inevitably lead to changes in HRIS. In response to pressing business issues and increased competitiveness, human resource functions are

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becoming more complex. This, in turn, increases the data management and computational capabilities that sophisticated software must have. For instance, HRIS packages must be able to perform complicated calculations relative to benefits administration. With the rise in two-income families and changing demographics, employees have more diverse benefit needs. Some need health insurance for their dependents, while others have coverage through a spouse. Some need life insurance, those with no dependents will prefer more vacation time instead. Many younger employees value time off more than they do security oriented benefits, conversely, older workers want flexible pension plans. The resulting employee enthusiasm for flexible benefits has driven the development of more sophisticated benefits administration software. This trend in flexibility will continue and inevitably spread to other areas of human resource. For instance, to keep valuable workers, more companies are extending flextime, job sharing, tele-commuting, and personal leave and vacation policies. In response, human resource time and attendance systems must become more flexible and responsive yet remain friendly to typical user. The increasing sophistication of HRIS users have both driven human resources programs and allowed them to mature. Once users have sampled simple systems, they begin searching for more powerful applications in their areas of expertise. Most human

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professionals began their careers without computer experience or training. Many have had to learn on the job. To take full advantage of human resources automation, many have bought in specialist with less human resources experience but more computer-related skills. In some cases these separations of knowledge has caused conflict and have produced poor results. In other cases, management has worked to include HRIS staff as full partners in the human resource department, with productive results. Thus in future the impact of HRIS will be more towards employees.

4.4

Rising trends of HRIS Though, changes in human resource programs and

functionality

have

driven

HRIS

development,

information

technology in the broadest sense is an even more rapidly evolving field. For this reason, most of the significant development in HRMS stem from hardware and software improvements rather than changes in human resource itself. Computers, data base management systems (DBMS), operation systems and tele-communications have evolved so quickly in recent years that application software developer and users are usually working well below the capacity of the available

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technologies. HRMS developers have begun to adopt many innovations in technology and process, including the following:

Increased

role

of

Micro

computers

and

Executive

Workstations: The micro computers explosion has been perhaps the most important business phenomenon on past decade. This process has involved an ongoing series of major advances, with each change making the pervious one relatively obsolete. The industry remains heavily committed to even further advances for instance, numerous suppliers are working on faster processors, improvements in workstation technology, Data Based Management System (DBMS) and connectivity. As these developments become commercially available within the next few years, they will catalyze new application and more thorough integration of micro computers into business operations. A human resource department that begins computerizations with a single micro computer and printer may find itself five years from now with an entire network of computers, complete with distributed processing, office automation support, telecommunications and remote printing. Business expert can increase increasingly faster communication, more sophisticated report generators, and flexible

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location

arrangements

to

accommodate

telecommuters

and

multisided operations.

Executive Information systems: Some firms have expanded the executive workstations concept even further. Hardware and software vendors, as well as internal system analysts, have begun integrating powerful but disparate elements of computer technology into systems that allow executives to take advantage to special purpose computer applications within their organizations. Experts refer to these systems by several different names; the most popular of these are Executive Information System (EIS) and Decision Support System (DIS). System connectivity: More and more human resource department have found that linking microcomputers to mainframe and midrange computers give them the best of both worlds. This platform combines the speed and power of the mainframe and midrange system with the responsive input /output capability and independence of the microcomputer. In a linked or connected system, users typically have the central computer handle storage, production, maintenance etc.

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Development in Computer based Training (CBT):

Computer Based Training was described as a tool for training human resource staff how to use the HRIS. Employees also can use CBT to learn about numerous other operations via computer tutorials or programmed instructions. Typically these operations involve the computer such as words processing, record maintenance, claims processing and book keeping procedures. In business more and more training departments are working with internal human resources staff and departmental management throughout the enterprise to develop, implement administer and evaluate CBT. CBT major disadvantage is the absence of the human monitor to answer questions and help users over rough spots. This may reduce the users confident and comfort level. Numerous organizations have adopted some form of CBT but wide spread acceptance awaits a sociological evolution and more cost effective techniques. Users have become more accustomed to computer training in the form of vendor supplied tutorials but still prefer and are more comfortable with human interaction and conventional classroom instructions. As employees gain more exposure to computers in their professional, educational and personal lives, they will probably become more comfortable with training via computer assisted technologies such as CBT.

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Using Present Capabilities Fully: Numerous developments that experts consider emerging trends

in HRMS are already possible with current technology. They await managers that have enough expertise and resource to make full use of the capabilities present in the technology already available. For instance, many human resource departments already have the hardware and software to link to external data bases, few take advantage of linkages for information on relevant labor markets. Sophisticated use of public and subscription data bases can provide information not only on new regulations, laws and technology reviews but also on competitors. By understanding other firms practice, the human resource department can build more effective recruitment, compensation and management development strategies. As users become more comfortable with electronic data transmission internally, they may become more interested in reaching outside the organization for electronic information. Every HRMS consultant has opinions about which predictions are more likely to become widespread and which will remain novelties, unaffordable or too sophisticated for most users. The

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HRIS manager should not aim to develop a system that includes all of these emerging features but should consider the usefulness and applicability of potential features when planning, developing of modifying a system.
4.5

Prospects of HRIS
Achievement of all the above mentioned promises does not

preclude developing another HRIS wish list. Some needs will remain, not only because of technical and financial limitations or the reticence of HRIS developers but also because of the constant evolution of the field of human resource. As in the past, HRIS software developers will strive to offer enhancements that reflect relevant changes in regulations, industry standards and employment markets. Human resource mangers should work with computer professionals and trainers both in the HRSC and IS to increase HRMS user literacy. As employees became more aware of the advantages and potential of the computers, they will demand more responsiveness from human resource systems. They will want portable accounting systems, human resource information Kiosks, individual and group pay-for performance plans, more flexibility in benefit packages, and customized career development plans.

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Software in these areas must become more sophisticated without becoming too complicated for the HRMS end user. HRIS managers can look forward to numerous hardware and software enhancements that aid user accessibility. Many expect that human resources software packages will increasingly support the point-and-click approach to transaction processing and information retrieval made possible by the mouse. Mouse utilization may then augment more sophisticated screens and menus. Human resource will also benefit as future software provides more on-line help instead of relying on reference to manuals. Human Resource users are welcoming increased access to windows, that allows users to view several screens simultaneously. With multiple screens, human resource users can compare present and past data, compare records, view multiple tables simultaneously, get on-line help while containing to view the open file, and transfer data from one segment of HRMS to another with increased accuracy. Human resource professionals should investigate trends before making any software or hardware acquisitions. The HRSC should make a special effort to keep up with recent enhancements and how others have applied them as well as with forthcoming innovations. An organization might consider holding on to outdated or outgrown technology for months or years longer than practical and not take advantage of new modules while awaiting further advances. This

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analysis paralysis only execrates the problem. Hardware and software vendors invariably announce the availability of new function and features or the support of new technologies well before they release them. In part this is an effective tactic for judging market acceptance. Vendors also use this tactic to demonstrate that they are ahead of their peers in terms of functional and technological enhancement. As we have employed elsewhere, caveat emptor. Whether a human resource department builds a system or buys one, technological considerations are often the least of their worries. They can always find newer and better tools and techniques, no mater when the project proceeds. Participants must strive for best possible system success is the motivation of users, technicians and mangers to work together to maximize the systems effectiveness.

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More Responsive to Management Needs

Responsive to HR Needs

Improved Response Time

Information Data Collection & Input Control

Future HRMS

Expand ed Storage

Report Flexibility Rapid Design Response

Improved Forms

Planners can use two related methods to build an image of future Human Resource Information System/Management System. First, they may `consider the needs an HRMS should meet. From those observations they must predict the enhancement and innovations that will evolve to meet those needs. Alternatively, they may look at pending and potential developments in computer systems and human resources.

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Conclusion

The term Human Resource Management System (HRMS) or Information System in Human Resource has been used many times throughout the project. We point out that this term is more than merely an acronym for a computer application; it contains three component parts, each of which provides valuable perspective in the responsibilities and opportunities offered by the combination of computers and human resource information. These parts areHuman Resource Resource Information Information System. Give Information System in Human Resource a whole new meaning. The First Component, Human Resource, refers to the function to which the system applied. This term has evolved to describe employee or human relations, replacing the largely obsolete but still ubiquitous term personal The Second component, resource information, is intriguing. General speaking, this term refers to the control of aspects of an environment with the objective of sustaining or increasing the viability of an enterprise or environment. The resource may be
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natural or manufactured, or abstract. Today, everyone can relate to concerns about managing our air, water and ground resources. People have always been able to relate to the managing of our autos, homes and machines. The Third component, information systems, could refer simply to the automation of the human resource function, but actually it means more than that. The term information system focuses primarily on the computer and its surrounding technology. In contrast management system takes into account not only the hardware, software, data and outputs but also the staffing, training, policies and procedures that drive the modern HRMS. In a nutshell, it broadens our focuses to include the management process. The management of human resources, however, includes more complex process than earlier administrative operations permitted. Resource management encompasses the managing of the people, financial, facilities and other tactical resource of the enterprise. It includes the hiring, firing, paying, training, welfare and nurturing of employees. For instance, contemporary resources management for the human resource function involves proactive planning for the organizations needs and goals. It involves planning for the proper use of the potential of the employee.

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Thus a human resource information system (HRIS) is a systematic procedure for collecting, storing, maintaining, retrieving, and validating data needed by an organization about its human resources (HR), personnel activities, and organization unit characteristics. While in 1999 it pointed out that an HRIS (also known as a human resource management system or HRMS) can be as informal as the payroll records and time cards of a small business, for the vast majority of organizations, corporate success will increasingly depend on the coordinated, strategic management and integration of the organization's human resources and information technology. Achieving this strategic coordination requires those responsible for developing, implementing, operating, and maintaining an HRIS to have a broad knowledge of the organization's human resource programs, the relationship between human resource programs and overall strategic planning, and the potential inherent in computer and data technology. The goal of this research is to discover to what degree HRIS techniques and concepts are being taught to all employees in the organization at various levels. Unlike the mainframe era, HR professionals today are more comfortable using computers for HR functions, a shift resulting from increasingly user friendly applications training on HRIS, or specifically the gaps between job requirements and employees abilities to utilize HRIS technologies, was sited as the main reason

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that technology is underutilized for HR functions. Not surprisingly the issue that while a high percentage of private and non profit organization offer computer training (95 % public sector and 82 % private sector), only 40 % of public sector and 30% of private sector organizations offer training on a regular basis. In addition study found out that private and non profit organizations integrate software and human resource management functions in low numbers. When HRMS technology can not be integrated into existing HR courses, the other alternative is to introduce HRIS technologies through a dedicated HRIS course. This method would reduce constraints on faculty skills and investment in technology at a level to support all HR majors at a given institution. The general consensus on HRIS skills is that they would ideally include a working knowledge of information systems (IS) and of all HR functions and skills in process improvement and project management. In other words, employees will be aware of the "functional issues" of HR and how to apply technology to them. Ideally, employees entering an HRIS should understand most, if not all, of the HR functions, at least from a basic definitional perspective. The best place to start an information system in human resource, then, would be through the two general purposes of such systems: to eliminate costs and reduce processing time and to
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support decisions with computer applications. As pointed out, the focus for HR professionals is to use an HRIS to make better HR decisions. If a given HRIS is to have any value at all to HR then information should be based on two factors: how many decisions will be improved by the HRIS and how much value will each improved decision produce. Understanding these two factors is tantamount to any HRIS course. A human resource department that believes in Human resource Information System can optimize its firms investment in employees. By adopting this board view of resources management, planners, decision makers and other professionals can see information resource such as HRIS as tools for handling the present and preparing the for the future.

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Case Study Human Resource Management - Best Practice at Air India History Air India is India's national flag carrier. Although air transport was born in India on February 18, 1911 when Henri Piquet, flying a Humber bi-plane, carried mail from Allahabad to Naini Junction, some six miles away, the scheduled services in India, in the real sense, began on October 15, 1932. It was on this day that J.R.D. Tata, the father of Civil Aviation in India and founder of Air India, took off from Drigh Road Airport, Karachi, in a tiny, light single-engined de Havilland Puss Moth on his flight to Mumbai (then known as Bombay) via Ahmedabad. He landed with his precious load of mail on a grass strip at Juhu. At Mumbai, Neville Vintcent, a former RAF pilot who had come to India from Britain three years earlier on a barn-storming tour, during which he had surveyed a number of possible air routes, took over from J.R.D.Tata and flew the Puss Moth to Chennai (then Madras) via Bellary. Following the end of World War II, regular commercial service was restored in India and Tata Airlines became a public limited company on 29 July 1946 under the name Air India. In 1948, after the independence of India, 49% of the airline was acquired by the Government of India, with an option to purchase an additional 2%. In return, the airline was granted status to operate international services from India as the designated flag carrier under the name Air India International. On 8 June 1948, a Lockheed Constellation L-749A named Malabar Princess(registered VTCQP) took off from Bombay bound for London via Cairo and Geneva. This marked the airline's first long-haul international flight, soon followed by service in 1950 to Nairobi via Aden. On 25 August 1953, the Government of India exercised its option to purchase a majority stake in the carrier and Air India International Limited was born as one of the fruits of the Air Corporations Act that nationalised the air transportation industry.

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Its Mascot- Maharajah

We call him a Maharajah for want of a better description. But his blood isn't blue. He may look like royalty, but he isn't royal.' These are the words of Bobby Kooka, the man who conceived the Maharajah. This now familiar lovable figure first made his appearance in Air India way back in 1946, when Bobby Kooka as Air India's Commercial Director and Umesh Rao, an artist with J.Walter Thompson Ltd., Mumbai, together created the Maharajah. The Maharajah began merely as a rich Indian potentate, symbolizing graciousness and high living. And somewhere along the line his creators gave him a distinctive personality: his outsized moustache, the striped turban and his aquiline nose. What began as an attempt as a design for an inflight memo pad grew to take Air India's sales and promotional messages to millions of travellers across the world. Today, this naughty diminutive Maharajah of Air India has become a world figure. He can be a lover boy in Paris, a sumo wrestler in Tokyo, a pavement artist, a Red Indian, a monk... he can effortlessly flirt with the beauties of the world. And most importantly, he can get away with it all. Simply because he is the Maharajah! He has completed 56 years and become the most recognizable mascot the world over. His antics, his expressions, his puns have allowed Air India to promote its services with a unique panache and an unmatched sense of subtle humour. In fact he has won numerous national and international awards for Air India for humour and originality in publicity. And as with all great men, he too has had his critics. But the millions of travellers whose lives he has touched far outnumber them. In fact, to them, the Maharajah with his inimitable style, charm and wit is a very real person. He's almost like a friend to every Air India traveller. A friend who reaches out with warmth and hospitality, even to the farthest corners of the world. Introduction Air India is India's finest flying Ambassador. The urge to excel and the enthusiasm, which characterized Air India's first flight, way back on October 15, 1932, is quintessential even today - thanks to Air Indians who have kept alive the tradition of flying high. The merger of Air India and Indian, the countrys leader in the domestic sector, has helped the airline to emerge as a major force in the airline industry. The re-branding exercise is currently underway and passengers are 84

getting to see the unified face of the new invigorated Air India. Air India has two major domestic hubs at Indira Gandhi International Airport and Chhatrapati Shivaji International Airport. An international hub at Dubai International Airport is currently being planned

SWOT Analysis

Strengths: The ability to travel comfortable for long distance travel Has large capacity to transport large amounts of people in short time Low cost of usage Fast during peak hours Already has a vast number of loyal passengers Environmentally friendly, especially during these times of Global awareness. Promotes the use of transit Access to instant pricing with real time reservation, creating a convenient, trouble-free booking process. No need to waste precious vacation time waiting on line at the station to get your ticket, Fast booking experience The ongoing recession puts direct financial constraints or at least concern on many people. Naturally, riding intercity train or bus is an economic way to commute or travel individually. Go Train is the healthiest public transportation system in Canada. It has the highest revenue to cost ratio in the sector (83.6%) and generates significant sundry revenue which covers 4.8% of the operating cost. Creates new economic opportunities Builds communities by linking them together economically Reduces consumption of oil Increases Productivity The rising fuel cost (though reversed somehow by the recent recession) makes driving in and out the metropolitan area much more expensive than riding train or bus. Weaknesses High initial investment for building new rail system Buses and trains do not run 24hrs compared to municipal transit such as TTC Cost of Go Transit fares is much higher than those of other public transit due to the expenses to make their consumers comfortable. Has a history of timing issues; trains do not run on schedule most of the time. Need to increase the size of parking lots 85

Slow in some areas during severe weather Limited to certain areas Noise may be a concern Creates a load on the electricity grid Will need a expansion of electricity production Limited competition in the bidding process for buying trains, making them cost more Go Trains existing operations heavily rely on the railway systems owned by Canadian National and Canadian Pacific. Expenditure on access to railways and railway crews is the largest portion of Go Trains operating expense. Will need to build new transportation infrastructure The changes of accountability have added difficulties in continuously improving the infrastructure and operations of Go transit. The continuous budget deficit of the provincial government and many of the municipal governments makes the funding for Go Transit quite difficult. Especially, any long-term improvement or expansion plans are quite questionable under the deficit condition. The current conservative federal government is not in favor of giving funding to Go Transit, which is a commitment made by form liberal federal government. in order to work effectively high speed rail must be backed up by a decent urban/light rail transit system

Opportunities Ability to expand to other markets surrounding Ontario, (US and Quebec) Internet friendly bookings and access on trains Received funding from the federal and provincial government to help boost the economy; this will create new opportunities for jobs Loyal consumers are likely to try new services offered by Go Transit commuters are willing to pay for faster services No other service can compete with high speed train in terms of speed and efficiency Advertising on board will increase revenue Gas prices rise causing a increase of customers The Greater Toronto Area is in need of a transit link between cities Massive increase in Jobs for local manufactures Private-Public partnership to establish more efficiency in timing and customer service The large population and high population density can become an excellent market for intensive intercity transit system. Threats Government may not fund the train

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Gas prices drop, making it cheaper for commuters to drive People may appose the building of rail lines near their home Weather Condition of Canada may effect the speeds and quality of service Noise Pollution may concern people Airlines tightening up procedures to get people through airports faster and will encourage airports to have better city links Existing transit operators might introduce an upgrade in their services and take customer away from us Inflation will increase costs, which are passed on to commuters Union operated trains have risks of strikes Local transit operators will get priority over funding compared to GO transit Massive Construction required to build railway, my damage countryside environment

Achievements Of Air India Air India was also ranked as the Most Trusted Brand in the aviation sector in the country in the Economic Times Brand Equity Survey 2010. This is for the fifth year that the airline has won the top honour. Air India has won the Galileo Express Travel World Award 2008 for the Best ShortHaul International Airline. Air India has previously been a recipient of the Galileo Express TravelWorld Award for the Best International West Bound Airline out of India for three successive years as well as for launching the Best Corporate Social Responsibility Initiative. Air India was also conferred the prestigious Amity Corporate Excellence Award instituted by the Amity International Business School, Noida, Uttar Pradesh to honour Corporates with distinct vision, innovation, competitiveness and sustenance. It also won the Special category Award which recognizes the Most significant corporate Social Responsibility initiative (CSR) taken by an organization. Air India had won four other prestigious awards in 2006: 1) Dun and Bradstreet (D&B) which ranked the airline as the first in terms of revenue out of the top airline companies out of India; 2) Readers Digest Trusted Brand Award; 3) CNBC Awaaz Consumer Award 2006; and Best South Asian Airline award by readers of TTG Asia, TTG China, TTG Mice and TTG-BT Mice China, all renowned Mice and business travel publications.

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Organizational strategies
Porter generic strategies According to Porter (1980) generic strategies (Lynch, 2003), AI comes under differentiation and focused cost leadership due to the following reasons: AI along with jet airways has the monopoly in Indian international market as they are the only ones who fly international routes.AI is differentiated as it offers expanded network, for example gulf regions are still not open for Jet Airways but AI has a monopoly there. (Ministry of civil aviation reports, 2006)

AI is the national flag carrier of India. It has brand name which is represented by its mascot called Maharajah which impersonates India and its culture. This feature really differentiates it from other industry players.

AI last point of differentiation is it being the oldest airline as per the year 2006 its seventy four years old. It really makes it a well known brand, creates trust in the minds of its customers due to its long operation and its service to its customers. (Tourism India, 2007)

Air Indias has new subsidiary AI Express being the countrys only international low cost carrier which also operates in domestic market. This strategy of AI can be called as focused cost leadership as they are marketing middle class passengers who want to travel internationally at a low cost. (Tourism India, 2007)

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Bowmans Strategy clock According to Bowmans Clock AI lies between 4th point which is Differentiation and 5th point which is focused Differentiation as already seen above in porters strategies it has many differentiated aspects like being a national carrier, oldest airline and its monopoly in Indian international market and AI can be also called focused differentiation as it majorly focuses on international travel market instead of domestic.

Ansoff Matrix
Market Penetration Companion free scheme- To promoting high yield traffic, AI has re-launched this scheme between India- USA/Canada/UK/Europe. This scheme is valid on IATA published fares in all classes for both one way and round trip.

Student fares- Passengers on student visa can avail special discounted fares for travel like from India to many destinations for travel. Students can also avail discounts on excess baggage.

Auction through IndiaTimes.com- AI auctioned seats of economy class through indiatimes.com a leading internet portal, this scheme has also been used for some domestic sectors as well.

Flying Returns Program- The flying returns is a frequent flyer program. This program is spread across 19 countries, it is designed to recognize and reward frequent flyers. Various benefits and privileges are provided to the members.

Aircraft Cabin Up gradation- The up gradation of its old carrier like A310-300 by painting, seat refurbishment and upgrading entertainment system to solid state digital audio system which provides improved sound quality and other features.

Market Extension 89

Medical Tourism- AI has tied up with M/s Vedic India to tap growing medical tourism market, Medical packages including airfares are offered to all those who are willing to undergo treatment in India.

New Product Development The Maharajah Club (TMC) and The Leading Edge Club (LEC) - TMC and LEC are two elite clubs of air India. Membership to both the clubs is by invitation only with certain criteria laid down. Members enjoy exclusive value added benefits and of value added partnership alliances.

E-Marketing- As Iata wants to discontinue conventional paper ticketing, AI is working on it and according to project it will also invest in E-Marketing.

Wi-Fi Internet Access- In the mumbai maharaja lounge and the transit lounge wifi internet access is provided along with network printing facility.

SMS Alert in case of Rescheduling of Flights- Arrangements have been made to generate SMS messages automatically to all Indian mobile numbers indicated in PNRs to alert passengers in case of rescheduling of flights.

Wholesale Travel Discounts- A special scheme is their for passengers travelling frequently to south east Asia by offering them substantial saving on bulk purchase of tickets for travel.

ATC Mode-S Elementary Surveillance and Enhanced Surveillance FunctionalityAI on installing these to ground station, which will enhance better control of aircraft navigation.

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Diversification AI Express of AI is for new market that is the middle class who wants to travel internationally and is definitely a new product as it is a low cost, low fare and no frill carrier.

AI besides AI Express has more fully owned subsidiaries which offer other services such as Hotel Corporation of India, AI Air Transport Services Limited and AI Engineering Service Ltd.

( Growth Methods/ Operations - The fleet size of AI in 2001-02 was 29 which have grown up to 30 in 2005-06 which shows growth from previous years and AI has future plans to expand their fleet size drastically. However in the present scenario on comparisons with its full service players like jet, the fleet size is less.

The number of flights per day operated by AI in international routes is 64 which is the highest among its competitors and domestic is 30 per day which is relatively low.

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However we can also see the growth in the passenger traffic and passenger load factor on all routes and services over past five years which has gone up to 43.62 lakh. The destinations which AI flies have increased from 32 to 46 presently.

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Human Resource AI needs to reconsider at its HR policies. The numbers of employees per aircraft in AI are 418 which are way too high as compared to others industry players. According to Startrax rating ( www.airlinequality.com) the staff is really unprofessional and even blogs state that staffs are rude, non consistent, poor check in etc. Since its a government organization staff is too laid back not being afraid of losing their jobs, they ask for commissions from passengers which are not acceptable at all. (IndiaToday, 2000)

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In the second chart distribution of personnel of AI and Jet Airways is clearly shown, it can be seen that AI staff is more in comparison in almost all the departments even though Jet Airways fleet size is higher. On having a look at the revenues and expenses of AI staff, it can be clearly analyzed from the chart that expenses per employee are more than revenue which is really a bad situation. But if seen over the last ten years in appendix 7 theres growth. (DGCA, 2006)

The attrition among pilots and cabin crew is as high as 46 per cent. Moreover, maximum attrition is observed in employees in age group of 26 to 30 years with experience of two to four years. In employees view, AI according to naukrihub survey of aviation sectors best employers has ranked it at second position after Jet airways, with a balance scorecard having all the aspects rated, details in appendix 5. This position is because of staff having security of job in AI, salaries in line with the industry, government job facilities and other reasons clearly mentioned in appendices 5,7,8,9.

Indian Airlines HR Problems FLYING LOW Indian Airlines (IA) the name of Indias national carrier conjured up an image of a monopoly gone berserk with the absolute power it had over the market. Continual

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losses over the years, frequent human resource problems and gross mismanagement were just some of the few problems plagued the company. Widespread media coverage regarding the frequent strikes by IA pilots not only reflected the adamant attitude of the pilots, but also resulted in increased public resentment towards the airline. IAs recurring human resource problems were attributed to its lack of proper manpower planning and underutilization of existing manpower. The recruitment and creation of posts in IA was done without proper scientific analysis of the manpower requirements of the organization. IAs employee unions were rather infamous for resorting to industrial action on the slightest pretext and their armtwisting tactics to get their demands accepted by the management.

During the 1990s, the Government took various steps to turn around IA and initiated talks for its disinvestment. Amidst strong opposition by the employees, the disinvestment plans dragged on endlessly well into mid 2001. The IA story shows how poor management, especially in the human resources area, could spell doom even for a Rs 40 bn monopoly. BACKGROUND NOTE IA was formed in May 1953 with the nationalization of the airlines industry through the Air Corporations Act. Indian Airlines Corporation and Air India International were established and the assets of the then existing nine airline companies were transferred to these two entities. While Air India provided international air services, IA and its subsidiary, Alliance Air, provided domestic air services. In 1990, Vayudoot, a low-capacity and short-haul domestic airline with huge long-term liabilities, was merged with IA. IAs network ranged from Kuwait in the west to Singapore in the east, covering 75 destinations (59 within India, 16 abroad). Its international network covered Kuwait, Oman, UAE, Qatar and Bahrain in West Asia; Thailand, Singapore and Malaysia in South East Asia; and Pakistan, Nepal, Bangladesh, Myanmar, Sri Lanka and Maldives in the South Asian subcontinent. Between themselves, IA and Alliance Air carried over 7.5 million passengers annually. In 1999, the company had a fleet strength of 55 aircraft - 11 Airbus A300s, 30 Airbus A320s, 11 Boeing B737s and 3 Dorniers D0228. In 1994, the Air Corporation Act was repealed and air transport was thrown open to private players. Many big corporate houses entered the fray and IA saw a mass

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exodus of its pilots to private airlines. To counter increasing competition IA launched a new image building advertisement campaign. It also improved its services by strictly adhering to flight schedules and providing better in-flight and ground services. It also launched several other new aircraft, with a new, younger, and more dynamic in flight crew. These initiatives were soon rewarded in form of 17% increase in passenger revenues during the year 1994.

However, IA could not sustain these improvements. Competitors like Sahara and Jet Airways (Jet) provided better services and network. Unable to match the performance of these airlines IA faced severe criticism for its inefficiency and excessive expenditure human resources. Staff cost increased by an alarming Rs 5.9 bn during 1994-98. These costs were responsible to a great extent for the companys frequent losses. By 1999 the losses touched Rs 7.5 bn. In the next few years, private players such as East West, NEPC, and Damania had to close shop due to huge losses. Jet was the only player that was able to sustain itself. IAs market share, however continued to drop. In 1999, while IAs market share was 47%, the share of private airlines reached 53%. Unnecessary interference by the Ministry of Civil Aviation was a major cause of concern for IA. This interference ranged from deciding on the crews quality to major technical decisions in which the Ministry did not even have the necessary expertise. IA had to operate flights in the North-East at highly subsidized fares to fulfill its social objectives of connecting these regions with the rest of the country. These flights contributed to the IAs losses over the years. As the carriers balance sheet was heavily skewed towards debt with an equity base of Rs 1.05 bn in 1999 as against long term loans of Rs 28 bn, heavy interest outflows of Rs 1.99 bn further increased the losses. IA could blame many of its problems on competitive pressures or political interference; but it could not deny responsibility for its human resource problems. A report by the Comptroller and Auditor General of India stated, Manpower planning in any organization should depend on the periodic and realistic assessment of the manpower needs, need-based recruitment, optimum utilization of the recruited personnel and abolition of surplus and redundant posts. Identification of the qualifications appropriate to all the posts is a basic requirement of efficient human resource management. IA was found grossly deficient in all these aspects. FIGHTER PILOTS? IAs eight unions were notorious for their defiant attitude and their use of unscrupulous methods to force the management to agree to all their demands. Strikes, go-slow agitations and wage negotiations were common.

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For each strike there was a different reason, but every strike it was about pressurizing IA for more money. From November 1989 to June 1992, there were 13 agitations by different unions. During December 1992-January 1993, there was a 46-day strike by the pilots and yet another one in November 1994. The cavalier attitude of the IA pilots was particularly evident in the agitation in April 1995. The pilots began the agitation demanding higher allowances for flying in international sectors. This demand was turned down. They then refused to fly with people re-employed on a contract basis. Thereafter they went on a strike, saying that the cabin crew earned higher wages than them and that they would not fly until this issue was addressed. Due to adamant behaviour of pilots many of the cabin crew and the airhostesses had to be off-loaded at the last moment from aircrafts. In 1996, there was another agitation, with many pilots reporting sick at the same time. Medical examiners, who were sent to check these pilots, found that most of these were false claims. Some of the pilots were completely fit; others somehow managed to produce medical certificates to corroborate their claims. In January 1997, there was another strike by the pilots, this time asking for increased foreign allowances, fixed flying hours, free meals and wage parity with Alliance Air. Though the strike was called off within a week, it again raised questions regarding IAs vulnerability. April 2000 saw another go-slow agitation by IAs aircraft engineers who were demanding pay revision and a change in the career progression pattern[1]. The strategies adopted by IA to overcome these problems were severely criticized by analysts over the years. Analysts noted that the people heading the airline were more interested in making peace with the unions than looking at the companys long-term benefits.

Russy Mody (Mody), who joined IA as chairman in November 1994, made efforts to appease the unions by proposing to bring their salaries on par with those of Air India employees. This was strongly opposed by the board of directors, in view of the mounting losses. Mody also proposed to increase the age of retirement from 58 to 60 to control the exodus of pilots. However, government rejected Modys plans[2]. When Probir Sen (Sen) took over as chairman and managing director, he bought the pilot emoluments on par with emoluments other airlines, thereby successfully controlling the exodus. In 1994, the IA unions opposed the re-employment of pilots who had left IA to join private carriers and the employment of superannuated fliers on contract.

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Sen averted a crisis by creating Alliance Air, a subsidiary airline company where the re-employed people were utilized. He was also instrumental in effecting substantial wage hikes for the employees. The extra financial burden on the airline caused by these measures was met by resorting to a 10% annual hike in fares. (Refer Table I)

TABLE I IMPACT OF STAFF COST HIKE IN FARE INCREASE (%) Date of fare increase Impact (%) 25/07/1994 16.22 1/10/1995 25 22/09/1996 36 15/10/1997 13.44 1/10/1998 8.8 Source: IATA-World Air Transport Statistics

Initially, Sens efforts seemed to have positive effects with an improvement in aircraft utilization figures. IA also managed to cut losses during 1996-97 and reported a Rs 140 mn profit in 1997-98. But recessionary trends in the economy and its mounting wage bill pushed IA back into losses by 1999. Sen and the entire board of directors was sacked by the government. In the late 1990s, in yet another effort to appease its employees, IA introduced the productivity-linked scheme. The idea of the productivity linked incentive (PLI) scheme was to persuade pilots to fly more in order to increase aircraft utilization. But the PLI scheme was grossly misused by large sections of the employees to earn more cash. For instance, the agreement stated that if the engineering department made 28 Airbus A320s available for service every day, PLI would be paid. This number was later reduced to 25 and finally to 23. There were also reports that flights leaving 30 - 45 minutes late were shown as being on time for PLI purposes. Pilots were flying 75 hours a month, while they flew only 63 hours. Eventually, the PLI schemes raised an additional annual wage bill of Rs 1.8 bn for IA. It was alleged that IA employees did no work during normal office hours; this way they could not work overtime and earn more money. Though experts agreed that IA had to cut its operation costs. To survive the airline continued to add to its costs, by paying more money to its employees. (Refer Table

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II). The payment of overtime allowance (OTA) which included holiday pay to staff, increased by 109% during 1993-99. It was also found that the payment of OTA always exceeded the budget provisions. Between 1991-92 and 1995-96, the increase in pay and allowances of the executive pilots was 842% and that of non-executive pilots was 134%. Even the lowest paid employee in the airline, either a sweeper or a peon, was paid Rs 8,000 10,000 per month with overtime included.

TABLE II INCREASE IN STAFF COSTS Staff cost Per as Staff cost Total No. of employee percentage Effective Year (in Rs expenditure employees cost (in of total fleet size bn) (in Rs bn) mn) operational expenditure 19932.85 22182 0.13 20.75 15% 54 94 1994- 3.74 22683 0.16 22.59 19% 58 95 (31.18%)* 1995- 5.71 22582 0.25 26 25% 55 96 (52.59%) 1996- 7.10 22153 0.32 29.29 26% 40 97 (24.35%) 1997- 8.17 21990 0.37 32.21 27% 40 98 (15.03%) 1998- 8.75 21922 0.39 34.31 28% 41 99 (7.12%) Source: IATA-World Air Transport Statistics * Figures in brackets indicate increase over the previous year. # Excludes 4 aircraft grounded from 1993-94 to 1995-96 as well as 12 aircraft leased to Airline Allied Services Ltd. from 1996-97 to 1998-99. In 1998, IA tried to persuade employees to cut down on PLI and overtime to help the airline weather a difficult period; however there efforts failed. Though IA incurred losses during 1995-96 and 1996-97 and made only marginal profits during 1997-98 and 1998-99, heavy payments were made on account of PLI. A net loss of Rs 641.8 mn was registered during the period 1995-99. PLI payments alone amounted to Rs 6.66 bn, during the same period. According to unofficial reports, arrears to be paid to employees on account of PLI 100

touched nearly Rs 7 bn by 1999. Over the years, the number of employees at IA increased steadily. IA had the maximum number of employees per aircraft. (Refer Table III). It was reported that the airlines monthly wage bill was as high as of Rs 680 mn, which doubled in the next three years. There were 150 employees earning above Rs 0.3 mn per annum in 199495 and the number increased to 2,109 by 1997-98. The Brar committee attributed this abnormal increase in staff costs to inefficient manpower planning, unproductive deployment of manpower and unwarranted increase in salaries and wages of the employees. TABLE III A COMPARISON OF VARIOUS AIRLINES Number ATKm Name of of No. of ATKm[3] Employees per Airlines aircraft employees (in Million) per aircraft Employee in fleet Singapore 84 13,549 14418.324 1064161 161 Airlines Thai Airways 76 24,186 6546.627 270678 318 International Indian 51 21,990 2113.671 398204 431 Airlines Gulf Air 30 5,308 1416.235 245831 177 Kuwait 22 5,761 345.599 92853 261 Airways Jet Airways 19 3,722 1094.132 49756 196 Source: IATA-World Air Transport Statistics Analysts criticized the way posts were created in IA. In 1999, Six new posts of directors were created of which three were created by dividing functions of existing directors. Thus, in place of 6 directors in departments prior April 1998, there were 9 directors by 1999 overseeing the same functions. There were 30 full time directors, who in turn had their retinue of private secretaries, drivers and orderlies. The posts in non-executive cadres were to be created after the assessment by the Manpower Assessment committee. But analysts pointed that in the case of cabin crew, 40 posts were introduced in the Southern Region on an ad-hoc basis, pending the assessment of their requirement by the Staff Assessment Committee. Another problem was that no basic educational qualifications prescribed for senior executive posts. Even a matriculate could become a manager, by acquiring the necessary job-related qualifications & experience. Illiterate IA employees drew salaries that were on par with senior civil servants. After superannuation, several

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employees were re-employed by the airline in an advisory capacity. According to reports, IA employed 132 retired employees as consultants during 1995-96 on contract basis. With each strike/go-slow and subsequent wage negotiations, IAs financial woes kept increasing. Though at times the airline did put its foot down, by and large, it always acceded to the demands for wage hikes and other perquisites.

TROUBLED SKIES Frequent agitations was not the only problem that IA faced in the area of human resources. There were issues that had been either neglected or mismanaged. For instance, the rates of highly subsidized canteen items were not revised even once in three decades and there was no policy on fixing rates. Various allowances such as out-of-pocket expenses, experience allowance, simulator allowance etc. were paid to those who were not strictly eligible for these. Excessive expenditure was incurred on benefits given to senior executives such as retention of company car, and room air-conditioners even after retirement. All these problems had a negative impact on divestment procedure. This did not augur well for any of the parties involved, as privatization was expected to give the IA management an opportunity to make the venture a commercially viable one. Freed from its political and social obligations, the carrier would be in a much better position to handle its labor problems. The biggest beneficiaries would be perhaps the passengers, who would get better services from the airline.

HR Challenges in the Airline Industry: The airline industry is perhaps one of the most volatile industries in the world. It is an industry whose way of doing business is constantly changing due largely in part to outside forces. Not only are they subject to regular bankruptcies, mergers and acquisitions, they are subject to such uncontrollable factors as the political and economic situation of society and its customer base. Thus, the human resources manager in an airline industry has the challenge of staffing for this ever-changing need. Because the airline's needs are in a constant state of flux, the first step the human resources manager must take is to establish a system that allows for a regular evaluation of the need and then recruit based on the evaluated need. Within the industry there are numerous different levels of positions, from executives to pilots, from stewardesses to maintenance personnel. The human resources manager will only be able to successfully recruit and thus staff each of

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these diverse needs if they create a line of communications with each department in order to access their specific needs and then base the recruiting plan on the gathered information. Second, the airline human resources manager must also have a strategic plan for reacting to an actual work stoppage, whether it occur because of an employee strike or due to a drastic event such as a crash or terrorist attack. Although the implementation of this human resources technology may result in a cutback in some human resources positions, it is demonstrative of the current trend to standardize many human resources functions in order to better serve the company's employees, improve job satisfaction and thus reduce turnover and the resulting need for constant recruitment and training, activities that are expensive. Because the industry is rapidly changing, job security is a regular question of an employee at any level. As the human resources manager in this volatile industry, it is imperative that one prepare for the worse. The software will now provide automated and standardized training, recruitment and staffing, along with technology and call-center support. For example, new technology is even effecting the role of the human resources manager in that many human resource function can now be, in a sense, outsourced to a technological program. The biggest and most damaging human relations issue that a human relations manager will face is the threat or, in a worse case scenario, the actual carrying through of an employee strike at any level of the airline's multi-faceted set-up. First, actual airline employees may become dissatisfied with both the terms of their current employment and the future implications of their position. " This idea of outsourcing is not unique to the airline industry and often times does not necessarily mean outsourcing to a computer program. The human resources manager must have a plan in place to handle this worst-case-scenario that will allow for a quick resolution of the issues with minimal harm to the company's operations. challenge of the ever-changing need of the airline industry. This trend clearly effects the airline human resources manager's role in that instead of working to recruit, train and supervise multiple departments internally, they now have the role of receiving bids from private independent contractors, working with the legal team to develop a contractual agreement, and then ensuring that the private contracted company is meeting the general need of the airline by working closely with the private service provider's human resources manager. Recommendation, Implementation and Monitoring Adopt strict cost control measures AI should improve their overall efficiency and try to cut costs in all their operations, being a full service airline it has huge scope to cut costs compared to LCCs. There are costs that are external, which AI cannot do much about, however there are internal costs that can be dealt. AI needs to revise wages and implement multi-skill

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environment, cut on excess staff by implementing a policy where staff are fired if they lack performance (refer appendix 9) and a strict check on corruption needs to be there where some secret staff can be given the responsibility of checking and giving them benefits, all requisite clearances for fuel hedging should be taken and use it to save costs due to ATF, AI should focus on online ticketing and remove travel agents to cut on commissions. Instead of hiring expatriates pilots AI should make its own flight training schools and making the students have bonds with the company. Their will be basic resources needed, its just the management needs to plan and implement these strictly, and it should be started as soon as possible. Limit government control and policies for AI and its staff AI is in such bad condition as the government barely allows management of AI to make any important decisions. Political leaders still control critical issues like appointing managers, deploying aircraft and deciding routes. It can be suggested that government can offer portions of AI equity to the public while retaining the full management control; it can also divest 20 percent of AI by next year. This little mixture of public and private function will really help AI develop. Better services will motivate staff, but it needs to be regularly followed and monitored to prove to the government that it working better without their full control. Fleet size increase and invest in aircraft maintenance AI is in a vacuum, the market is growing, its fleet is aging, and other airlines have started flowing into India, it desperately needs to acquire more fleet which should be a mix of wide and narrow body planes, and other updated versions should be purchased. The ageing fleet needs to be maintained by combining it to first class catering which will help in image building. AI should propose a float for MRO i.e. Maintenance, Repair and Overhaul to maintain its old fleet. This can be immediately started by firstly focusing on maintenance, and then purchasing in future.

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AI and IA should get merged as; it will help it in expanding the fleet, rebranding the airline. They should redesign crew uniforms and retrain their employees. As AI really needs a fresh start, all the old methods needs to be changed or removed specially in area of HR policies with the help of this merger. They should be saving millions of dollars by creating operational synergies in network integration, information technology integration, improvement in schedules, the passenger loyalty program, marketing, ground handling and purchasing aircraft, and by getting rid of half of their employees. It can effectively deliver the classic hub and spoke system done by successful airlines. They will also help in saving costs by choosing better contracts for insurance, oil contracts etc. It will also bring in new product and new environment in AI. The only caution AI and IA needs to take are at the time of rationalization of staff and while changing the HR policy which needs to be done very importantly, if they do it well, the merged entity will bring in huge success. Follow differentiation AI needs to differentiate its product, as there is so much competition in the market. It can differentiate by serving non stop flights to routes which are not provided by others, flights to wide range of destinations as AI has the rights to follow so many destinations, it needs to use it to its benefit. They should be able to attract passengers from SAARC, Africa and Central Asia to fly them to other parts, instead of being just an Indo gulf airline as it is also leading to inefficient usage of resources, by expanding fleet and destination by more code share arrangements and by joining Star alliance which is already under process. They need to highlight customer service as their USPs by provide best catering and good maintenance of rest room which will help go a long way in attracting customers; they need to give dual importance to domestic and international routes and combine both of their strengths. They need better trained staff to ensure better results through excellent customer service, punctuality, making the staff more accountable by rewarding points, etc. Air India needs to do innovative marketing, competitive pricing instead of just following marketing tactics of other players, the decision making needs to be quicker.

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Examine each and every aspect of its functioning AI is known for indifferent passenger handling over years; it should set up a strategic business unit (SBU) for ground handling at airports. All airport functions that Air India used to perform like security and baggage handling would be done by this SBU and its focus would be on customer care and it can help them build the long lost trust in the eyes of customers. A-I should also reform its notorious reservation system and analyze its yield planning which should eliminate the scope of overpriced commission to travel agents as it would stop fictitious block bookings which lead to an artificial overbooking of AI flights, even though there aren't enough passengers. It needs to be regularly monitored by specific staff whose job description includes monitoring as their primary job; they should have processes to monitor each and every staffs productivity as the services provided by AI staff is non tolerable. They should be better utilization level of its fleet, their ROCE % is also gone down and it is causing major loss in market share.

Training In Air India Mumbai: Air India may be roiled by losses, a cash crunch, and controversies over appointments, but the airlines new senior management wants to capture the lost glory of the Maharajah (the airlines mascot), according to a senior executive whose appointment, ironically, has also been controversial. In his first media interview after being appointed Air Indias chief training officer, Stephen Sukumar said the airline is in talks with some of the worlds best hotel chains to train its employees in an attempt to bring back some of the once legendary shine of Air India on-board service. And for ground staff, the airline has developed training programmes benchmarked to those of other Star Alliance members, he added. By the middle of next year, Air India will join Star Alliance, a global grouping of airlines with 27 members including Lufthansa German Airlines andContinental Airlines Inc. And the airline has renegotiated all its training contracts and lowered total training costs by 29%, when compared with the last fiscal year, according to Sukumar. 106

However, the airlines annual report doesnt have a break-up of the amount spent on training. The appointment of Sukumar, the former chief training officer at German airline Deutsche Lufthansa AG, has been controversial and the government has appointed a two-member committee to review his appointment. Air India had made two key appointments on 28 Septemberof Sukumar and Air India Express chief operating officer Pawan Aroradespite objections being raised at the time by some members of the board. Under the guidance of its new board, Air India has prepared a turnaround plan to wipe out its accumulated losses and reduce its total debt of Rs. 40,000 crore. Sukumar indicated that the controversy is behind him. He said he was interviewed by Prashant Narain Sukul, joint secretary, ministry of civil aviation, and Air Indias independent director, F.H. Major, around a month ago. They found me suitable to be the chief training officer of Air India Ltd and they also wanted me to look after the Star Alliance project, he added. Sukumar is convinced the Star Alliance entry is critical to the airlines fortunes. We need worldwide access to other markets to participate in the global growth. Star Alliance offers nearly 2,000 destinations, and this will be an unbeatable advantage for Air India to outperform its local competitors. But it will not be easy to match their expectations, he added. Sukumar said the airlines immediate focus is to modernize Air Indias booking system, prior to joining Star Alliance, and having a single code for the airline instead of two different codes currentlyAI and IC (the code for formerlyIndian Airlines which merged with Air India). A senior Air India executive who did not want to be identified, said the airline would have a single code by February 2011. According to experts, joining an alliance could lead to a 5% increase in passenger revenue. Several independent consultants said Air Indias service level has deteriorated due to various reasons, including shortage of personnel, low morale and the cash crunch. But many say it will be tough to reverse the situation as the airlines ownership is still with the government.

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One of the main drivers that led to privatization of British Airways was customer service; this is the case with Air India. Government ownership seems to be a critical constraint when it comes to making dynamic changes in the airline to adapt to new service levels, said Rishikesha T. Krishnan, professor of corporate strategy at the Indian Recruitment Process: One of the most critical and high expertise demanding industry, Airline or Aviation sector is witnessing a surge of increasing interest and awareness. With global liberalization and opening up of sector for private players, the industry has gained momentum. This has contributed to a significant rise in the employee base in the airline industry and the industry is in need of a growing number of employees. Increasingly, more and more airlines are beginning to recognize the real cost of poor selection of candidate. Clients are avoiding the mistakes of hiring the unsuitable candidate (which results in high staff turnover with the consequential costs - wasted time, money, disruption and absent resources) and are hence now consulting the pool of psychologists and selection specialists to assist them with sourcing of a key executive or to conduct large scale recruitment campaigns. Over years of our experience in the aviation sector, our specialists have developed sophisticated systems and models for the assessment of candidates for various positions in cabin crew, flight crew, ground crew etc, either ab initio or in various recruitment phases. We select and recruit aviation personnel for a range of clients including civil, military and VIP corporate aircraft operators. We also provide our clients, who want to avail of our 'executive search' services for aviation personnel, with psychometric & psychological profiling

The Reasons for the Downfall of Air India Recruitment process can be as: 1) Air India recruitment process and performance appraisal system can be at fault Good companies distinguish themselves by their quality people. The success of any organization comes through its people.Any HR expert will tell you that an organization needs to recruit good people who have the characteristics (talents) to win the market place. 2) Employees can be incompetent and may not have any sense of belonging. Air India might have not thought of cost leadership because of its employees low productivity and poor cost awareness. It employs 600 persons for running and maintaining one air craft whereas Singapore Airlines employs just 27 persons for a similar air craft. Yet Singapore Airlines is rated as No.1 airlines in terms of performance. 3) Ineffective Operations Main function of the Operations Management of any organization is to create a competitive edge by 15 20 % in terms of costs by operational excellence so that the organization can fight its competition in the market place effectively. This seems to be absent in Air India for the last 4 108

decades. 4) Lack of disciplinary action No disciplinary action was ever reported against the erring pilots who went on strike every time the Management attempted some disciplinary action as a result, the pilot associations /unions practiced their armtwisting tactics as often as they could and brought the Management on their knees. Finally the management could never think of any disciplinary action against them at all. 5) No service orientationLike nationalized banks, customer service is something unknown to Air India employees. Instead, the pilots & air-hostesses were behaving like bosses and the passengers were virtually treated like slaves in the mid-air

There may be many more reason because of which the bottom line may have got eroded. If the Organization would have been in profit it could have served the people in a better way, still we are way behind the developed countries in terms of air transport. There is little air connectivity within the cities across the country. Air transport is a basis infrastrure if we want the cities to grow and industrialization to happen across the country. The responsibility lies majorly with Air India because the private players would be interested to operate only on profitable routs. Somebody needs to take the responsibility of providing air connectivity in / with all the major cities of Indi Culture: The picture that comes out of Air India after a long interview with its chairman and managing director Arvind Jadhav is that of a sadly undercapitalised company (debt:equity ratio of 40:1), a disempowered board with all key decision making vested in the government, excess staff (roughly 500 per aircraft as against the industry norm of 140 per aircraft) outdated legacy technology and organisational structure, warped incentives built into union agreements that have expired but live on, thanks to political patronage, and a surprising will to prevail against these odds. But by the end of January, many of these problems would be sorted out, he tells ET's Anindya Upadhyay & TK Arun. Conclusion AIs objective should be to create world class airline in public sector in close cooperation with all its employees. With its mostly obsolete fleet, large work forces and managements whose decision-making is entangled with that of the government, Air India, the flagship overseas carrier, and its domestic counterpart, Indian Airlines, are rapidly losing market share to new competitors. Therefore AI

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needs to strictly follow the above recommendations to enhance its reputation and achieve its objectives and success of these will automatically help in monitoring

Bibliography Books:

Vincent R. Ceriello. Human Resource Management System. Published in 1839 K Aswathappa. Human Resource and Personnel Management 3rd Edition Published in 1997. N. G. Kale, N Ahmed. Human Resource Management. Vipul Prakashan. 6th Edition. Vipul Prakashan.Human Resource Information System. 3rd Eddition.

Magazines:

HR careers and jobs, June 2008, Volume V, Issue 10, Mumbai.

Internet Sites:

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1)www.humanresource.com 3)www.vault.co.in

2)www.hris.com

Questionnaire
(1) Which Software do you use/have used in Air India? SAP PEOPLE SOFT Others. Mention, if any, Universal___ ____________ ___________

(2) When was the software installed in Air India?

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Less than 6 months ago ago 2-3years ago

6months-1year ago More than 3years ago

1-2years

(3) When did you start using the software? Less than 6 months ago 6months-1year ago ago 2-3years ago More than 3years ago

1-2years

(4) Who configured the software for Air India? Software vendor IT Team

Others. Mention, if any, _IBM________ _

(5) Do mention the rates as given below: 1 Highly agree 2 Agree 4 Disagree 5 Highly Disagree

3 Neutral

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S.No. 1. 2. 3. 4. 5. 6. 7.

Particulars User-friendly System quality Information quality Industrial productivity Service quality Management culture Quality Decisions

SAP

PEOPLE SOFT

Others Universal $ $ $ $ $ $ $

(6) Did the software companies provide any sort of assistance/training to the users? If yes, then which type of assistance/training was provided? _________ Classroom Training Online Training On-the-Job Training Others. Mention, if any, __________

(7) Are you able to use the software entirely? If no, then which modules and sub-modules are highly operative by you?-Yes Recruitment Master Data Separation
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Personnel Management Performance Management

Time management Reports

Payroll Others. Mention, if any, ____________ _____

(8) Areas of Improvements. Since the software is installed recently,It will take some time time to analyse the area where more improvements is required. (9)What Benefits do you get from the information system? HRIS system is able to provide us various benefits like speedy retrieval and processing of data, its easy classification It helps in better analysis and more effective decisions making Provides us with accurate information, quality reports and overall better work culture Eliminates personal biasness, brings transparency. (10) What are the problems faced by HR people while using the system?

Although the system is efficient, but sometimes we face the problems like system slowdown or higher downtimes and if there is some particular limitation in module than work suffers, some HR people are not comfortable in using system efficiently so time is to be given in training for the system.

(11) How does implementation of such system in organization, affect its culture and employees?

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 With the introduction of HRIS system the work culture in the organization gets changed and we as HR managers are able to serve to other employees in efficient manner which is again raising the satisfaction level among ourselves. But some time some senior employees are resistant to the change also. The transfer and application system seem to have provided the management with an excuse for leaving difficult problems to their successor (12) What are the uses of HRIS in different functions of HR? HRIS system is helping out in all the functions and activities related to HR like payroll processing, training and development , job evaluation process and appraisals, recruitments etc. by providing accurate and timely information and helping in better analysis of information. (13) How much secure is the system actually from HR point of view? System is absolutely secure. We have three level security system in our application. Authorization, Authentication and Auditing.

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