The role of human resource information system on organizational performance: Evidence from Bangladeshi pharmaceutical industry

ABU HENA MOHAMMAD MANZURUL AREFIN, MD SAJJAD HOSAIN

Abstract


ABSTRACT

Objetive: The study is intended to endeavor the impact of human resource information system (HRIS) on organizational performance (profitability) for selected pharmaceutical firms in Bangladesh.

Methodology: The study adopts four HRIS applications: Job analysis, recruitment & selection, performance appraisal and communication as independent variables and considers profitability as the dependent variable. Data were collected from 464 respondents who are working as the top HR executives in different pharmaceutical firms in Dhaka and Chittagong cities using convenience sampling method.  For testing the relationship between independent and dependent variables, Pearson’s correlation coefficient technique; and for testing the validity of hypotheses, linear regression analysis has been used.

Results: Results indicate that all the four independent variables have positive and strong relationship with organizational performance supporting most of the previous literatures

Originality/value: The findings of this study are expected to be beneficial for HR departments in adopting and understanding the conductive results of HRIS applications at organizations as well as for academicians to study the impact of HRIS further in this area.

 

Keywords: Human resource information system; Human resource management; Organization; Performance; Management.

 

 

[PT]


Objetivo: O objetivo do estudo é promover o impacto do sistema de informação de recursos humanos (HRIS) no desempenho organizacional (lucratividade) de empresas farmacêuticas selecionadas em Bangladesh.

Metodologia: O estudo adota quatro aplicativos HRIS: análise de trabalho, recrutamento e seleção, avaliação de desempenho e comunicação como variáveis independentes e considera a lucratividade como variável dependente. Os dados foram coletados de 464 entrevistados que estão trabalhando como os principais executivos de RH em diferentes empresas farmacêuticas nas cidades de Dhaka e Chittagong, usando o método de amostragem por conveniência. Para testar a relação entre variáveis independentes e dependentes, a técnica do coeficiente de correlação de Pearson; e para testar a validade das hipóteses, foi utilizada a análise de regressão linear.

Resultados: Os resultados indicam que todas as quatro variáveis independentes têm uma relação positiva e forte com o desempenho organizacional, apoiando a maioria das literaturas anteriores.

Originalidade / valor: Espera-se que os resultados deste estudo sejam benéficos para os departamentos de RH na adoção e compreensão dos resultados condutores das aplicações de HRIS nas organizações, bem como para os acadêmicos estudarem o impacto do HRIS ainda mais nesta área.

 

Palavras-chave: Sistema de informação de recursos humanos; Gestão de Recursos Humanos; Organização; Atuação; Gestão.


Full Text:

PDF

References


Abang A., May C. and Maw K. (2009). Human resources practices and organizational performance incentives as moderator. Journal of Academic Research in Economics, 1(2), 9-16.

Alam, M. G. R., Masum, A. K. M., Beh, L. S.and Hong, C. S. (2016). Critical factors influencing decision to adopt HRIS in hospitals. PLoS ONE. 11, 1-22.

Arefin, A. H. M. M., Hossin, M. A., Hosain, M. S. and Aktaruzzaman, M. (2018). The dilemma of investing on human resources: A risky initiative? European Journal of Human Resource Management Studies, 1(2), 139-149.

Azmal, G. M. and Ali, Q. (2018). Adoption of human resource information systems in developing countries: An empirical study. International Business Research, 11(4), 133-141.

Bal, Y., Bozkurt S. and Ertemsir, E. (2012). The importance of using human resources information systems (HRIS) and a research on determining the success of HRIS. International Conference on Technology in HR. Madrid, Spain.

Ball, K. S. (2001). The use of human resource information systems: A survey. Personnel Review, 30(6), 667-693. http://dx.doi.org/10.1108/EUM0000000005979.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 19, 99-120.

Beckers, A. M. and Bsat, M. Z. (2002). A DSS classification model for research in human resource information systems. Information Systems Management, 19(3), 1-10. https://doi.org/10.1201/1078/43201.19.3.20020601/37169.6

Bhuiyan, M. R. U. and Rahman, M. R. (2014). Application of human resource information system in the firms of Bangladesh and its strategic importance. World Review of Business Research, 4(3), 95-105.

Broderick, R. and Boudreau, J. W. (1992). Human resource management, information technology and the competitive edge. Academy of Management, 6(2), 7-17. https://doi.org/10.5465/AME.1992.4274391.

Burns, N. and Grove, S. K. (1993). Research Method. London: Carnage Learning.

Carton, R. B. and Hofer, C. W. (2006). Measuring organizational performance: Metrics for entrepreneurship and strategic management research. Cheltenham, UK; Northampton, MA: Edward Elgar.

Casico, W. F. (2006). Managing human resource: Productivity, Quality of work life, Profits (7th Edt.). McGraw-Hill.

Chugh, R. (2014). Role of human resource information systems in an educational organization. Journal of Advanced Management Science, 2(2), 149-153.

Creswell, J. W., Clark, V. L., Guttmann, M. L. and Hanson, E. E. (2003). Advanced Mixed Methods Research Design. In Tashakkon, A and Teddlie, C. Handbook of MixedMethods in social and Social and Behavioral Research. Thousand Oaks, CA Sage, 209-240.

Combs, J. G., Crook, T. R. and Shook, C. L. (2005). The dimension of organizational performance and its implications for strategic management research. In D. J. Kitchen & D. D. Bergh (Eds.), Research Methodology in Strategy and Management, 259-286, San Diego: Elsevier.

Colbert, B. A. (2004). The complex resource based view: Implications for theory and practice in strategic human resource management. Academy of Management Review, 29, 341-358.

DeSanctis, G. (1986). Human resource information systems: A current assessment, MIS Quarterly, March, 15-27.

Fobang, A. N., Wamba, S. F. and Kamdjoug, J. R. K. (2017). Exploring Factors Affecting the Adoption of HRIS in SMEs in a Developing Country: Evidence from Cameroon. Conference paper presented at WORLDCIST, 2017, Genoa, Italy. Available at: https://www.researchgate.net/publication/315706068_Exploring_Factors_Affecting_the_Adoption_of_HRIS_in_SMEs_in_a_Developing_Country_Evidence_from_Cameroon

Gatewood, R. D., Field, H. S. and Barrick, M. (2008). Human Resource Selection (6th Edt.). South Western: Thomson.

Hair, J. F., Anderson, R. E., Tatham, R.L. and Black, W. C. (1998). Multivariate Data Analysis with Readings (5th Ed.), Macmillan, New York.

Haines, V. H. and Petit, A. (1997). Conditions for successful human resources information systems. Human Resource Management. 36, 261-275.

Hagood, W. O. and Friedman, L. (2002). Using the balanced scorecard to measure the performance of your HR information system. Personnel Management, 31(4), 543-557.

Hayajneh O., Al-Omari B., Al-Mobaideen H. and Allahawiah, S. (2013). The impact of human resources information systems and training needs in industrial firms: Aqaba case research, European Scientific Journal, 8(25).23-38.

Hosain, M. S. (2017). The impact of E-HRM on organizational performance: Evidence from selective service sectors of Bangladesh. International Journal of Human Resources Management, 6(3), 1-14.

Hosain, M. S., Ullah, K. T. and Khudri, M. M. (2016). The impact of E-recruitment on candidates’ attitudes: A study on graduate job seekers of Bangladesh. Journal of Human and Social Science Research, 8(1), 9-17.

Hosain, M. S. (2016). 360 degree feedback as a technique of performance appraisal: Does it really work? Asian Business Review, 6(1), 21-24.

Hosain, M. S. (2015). Impact of best HRM practices on retaining best employees: A study on selected Bangladeshi firms. Asian Journal of Social Sciences and Management Studies, 3(2), 108-114.

Hosain, M. S. (2015). Adoption of proper HRM practices: A technique for retaining employees and increasing firm performance? Scholar Journal of Business and Social Science, 1(1), 1-14.

Huselid, M. A. (1995). The impact of human resource management practices on turnover, productivity and corporate financial performance. Academy of Management Journal, 38, 635-672.

Jenkins, M. L. and Lloyd, G. (1985). How corporate philosophy and strategy shape the use of HR information systems. Personnel, 62(5), 28-38.

Khashman, I. M. A. and Khashman, A. M. (2016). The impact of human resource information system (HRIS) applications on organizational performance (Efficiency and Effectiveness) in Jordanian private hospitals. Journal of Management Research, 8(3), 31-44.

Koch, M. J., Rita, G. and McGrath. (1996). Improving labor productivity: Human resource management policies do matter. Strategic Management Journal, 17, 335-354.

Kossek, E. E., Young, W., Gash, D. C. and Nichol, V. (1994). Waiting for innovation in the human resources department Godot implements a human resource information system. Human Resource Management, 33(1), 135-159. https://doi.org/10.1002/hrm.3930330108.

Kovach, K. A., Hughes, A. A., Fagan, P. and Maggitti, P. G. (2002). Administrative and strategic advantages of HRIS. Employment Relations Today, 29(2), 43-48. https://doi.org/10.1002/ert.10039.

Lengnick-Hall, M. L. and Moritz, S. (2003). The impact of E-HR on the human resource management function. Journal of Labor Research, 24(3), 365-379.

Lippers, S. K. and Swiercz, P. M. (2005). Human resource information systems (HRIS) & technology trust. Journal of Information Science, 31(5), 340-353. http://dx.doi.org/10.1177/0165551505055399.

Lin, C. Y. Y. (1997). Human resource information systems: Implementation in Taiwan. Research and Practice in Human Resource Management, 5(1), 57-72.

Lau, C. M. and Ngo, H. Y. (2004). The HR system, organizational culture and product innovation. International Business Review, 13, 685-703.

Laursen, K. and Foss, N. (2003). New human resource management practices complementarities and the impact on innovation performance. Cambridge Journal of Economics, 27, 243-263.

Liu, W. (2010). The environmental responsibility of multinational corporations. Journal of American Academy of Business, 15(2), 81-88.

Mamun M. A. A. and Islam, M. S. (2016). Perception of management on outcomes of human resource information system (HRIS). International Journal of Business and Social Research. 6, 29-37.

Mathis, R. L. and Jackson, J. H., (2010). Human Resource Management. (13th edt.). South-Western College Publications.

Mayfield, M., Mayfield, J. and Lunce, S. (2003). Human resource information systems: A review & model development. American Society for Competitiveness, 11(1). 1-18

MacKinnon, D. P. (2008). Introduction to Statistical Mediation Analysis (2nd edt.). Taylor and Francis group: New York.

Mina B., Mehdi K. and Yaser G. (2012). Researching the impact of human resources functions on organizational performance using structural equations method (case research: Iran Behnoush Company). Interdisciplinary Journal of Contemporary Research in Business, 3(9). 1-12.

Mondy, R. W. and Mondy, J. B. (2008). Human Resource Management (10th edt.). Englewood Cliffs, New Jersey: Pearson Prentice Hall.

Ngai, E. W. T. and Wat, F. K. T. (2006). Human resource information systems: A review and empirical analysis. Personnel Review, 35(3), 297-314. http://dx.doi.org/10.1108/00483480610656702

Obeidat, B. Y. (2012). The relationship between human resource information system (HRIS) functions and human resource management (HRM) functionalities. Journal of Management Research, 4(4), 193. http://dx.doi.org/10.5296/jmr.v4i4.2262

Ozen, S. and Kusku, F. (2009). Corporate environmental citizenship variation in developing countries: An institutional framework. Journal of Business Ethics, 89(2), 297-313.

Park, H. J., Gardner, T. M. and Wright, P. M. (2004). HR practices or HR capabilities: Which matters? Insights from the Asia Pacific region. Asia Pacific Journal of Human Resources, 42(3), 260-273. https://doi.org/10.1177/1038411104045394

Pfeffer, J. (1998). The human equation: Building profits by putting people first. Boston. MA: Harvard Business School Press.

Polit, D. and Hungler, B. P. (1991). Nursing Research: Principles and Methods (6th Edt.) New Jersey: Science and Education Publishing.

Richard, P. J., Devinney, T. M., Yip, G. S. and Johnson, G. (2009). Measuring organizational performance: towards methodological best practice. Journal of Management, 35 (3), 718-804. 10.1177/0149206308330560.

Rosemond B. and Ernesticia L. (2011). The effect of human resource management practices on corporate performance: A research of graphic communications group limited. International Business Research, 4(1), 1-11.

Sadiq, U., Ahmad, F., Khurram I. and Bahaudin, G. (2012). The impact of information systems on the performance of human resources department. Journal of Business Studies Quarterly, 3(4), 77-91.

Santos, J. B. and Brito, L. A. L. (2012). Towards a subjective measurement model for firm performance. Brazilian Administration Review, 9 (6), Special Issue, 95-117.

Saunders, M., Lewis, P. and Thornhill, A. (2009). Understanding research philosophies and approaches limited edition: Research methods for business students (5th Edt.). London: Pitman.

Siegel, D. (2009). Green management matters only if it yields more green: An economic/strategic perspective. The Academy of Management Perspectives, 23(3), 5-11.

Shrivastava, S. and Shaw, J. B. (2004). Liberating HR through technology. Human Resource Management, 42, 201-222. http://dx.doi.org/10.1002/hrm.10081.

Stone, D. L., Deadrick, D. L., Lukaszewski, K. M. and Johnson, R. (2015). The influence of technology on the future of human resource management. Human Resource Management Review, 25(2), 216-231. https://doi.org/10.1016/j.hrmr.2015.01.002

Subramony, M., Krause, N., Norton, J. and Burns, G. (2008). The relationship between human resource investments and organizational performance: A firm level examination of equilibrium theory. Journal of Applied Psychology, 93, 778-788.

Tesi, D. (2010) Human resource information systems and the performance of the human resource function. PhD theses presented at Libera University, Rome, Italy.

Thite, M., Kavanagh, M. J. and Johnson, R. D. (2012). Evolution of human resource management and human resource information systems. Sage Publications, 2-35.

Troshani, I., Jerram, C. and Rao, S. (2011). Exploring the public sector adoption of HRIS. Industrial Management and Data Systems, 111(3), 470-488. http://dx.doi.org/10.1108/02635571111118314

Venkatraman, N. and Ramanujam, V. (1987). Measurement of business, economic performance: an examination of method convergent. Journal of Management, 13(1), 109-122. 10.1177/014920638701300109.

Venkatesh, V., Morris, M. G., Davis, G. B. and Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly. 27(3), 425–478. JSTOR 30036540.

Wright, P. M. and Boswell, W. R. (2002). Desegregating HRM: A review and synthesis of micro and macro human resource management research. Journal of Management, 28, 247-276.

Wright, P. M. and McMahan, G. C. (1992). Theoretical perspectives for strategic human resource management. Journal of Management, 18, 295-320.




Copyright (c)

 

European Journal of Applied Business and Management

ISSN: 2183-5594

DOI: https://doi.org/10.58869/EJABM

Indexing:

EBSCO | CROSSREF | GOOGLE SCHOLAR | LATINDEX | DRJI | ICI JOURNALS MASTER | REDIB | MIAR