HRIS stands for Human Resource Information System. HRIS is a database that helps us keep track of all activities and processes related to Human resources in an organization. It is a system based on Human resource Management and Information Technology.
A HRIS system will be able to cater to processes that are related to Human Resources. These can include employee personal file management, benefits administration, payroll integration, applicant tracking etc. Ideally, the HRMS should be able to handle the four core activities of the HR department viz. payroll management, labor and time management, benefit management and Human resource management.
The input to the HRIS system is in the form of information pertaining to the employees such as education, age etc. The HRIS transforms this data into meaningful information which will aid the managers and the organization as a whole in decision making. The output of the HRIS system includes salary statement, report on employee performance etc. There is a feedback and control system that can measure the healthiness and utility of the system.
The advantages of the HRIS system are:
- Provides accurate information
- Processes information at high speed
- Acts as a decision support tool
- Strengthens the control of the management
- Not expensive
Some of the vendors dealing with HRIS/HRMS packages are Oracle, Peoplesoft and SAP etc.
ERP stands for enterprise resource planning. ERP envisages the integration of all the information and processes in an organization. Some of the processes are:
- Human Resources
- Supply Chain Management
- Customer relationship management
- Data Warehouse
ERP packages are designed to facilitate automation of many of the fundamental processes in a company.
The advantages of the ERP are greater business integration, flexibility and enhanced analytical and planning capacity. Implementation of ERP brings many advantages such as reduced lead time, improved customer satisfaction, greater flexibility, reduced quality cost, improved resource utility, improved supplier performance etc. The scope of the ERP cuts across functions and is extended across the organization. Integration occurs between all the departments involved.
Because of their enormous size and broad scope, the implementation is itself a Herculean task. The implementation process should be closely supervised by a panel of consultants and experts. The implementation is generally carried out by companies specializing in ERP implementation.
ERP packages come with in-build security against crime and espionage. Modern packages are also designed to counter a terrorist act or any kind of sabotage.
The difference between HRIS and ERP is fundamentally in the scope. HRIS concerns itself with the human resource development while ERP is broader in scope as it is involved in all the processes pertaining to an organization.