Link Between HRIS and HRA Peer-Reviewed Journal

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2The Complementary Relationship between Human Resources Accounting and Human Resources Information Systems: A Descriptive Study[Your Name][Course Title][Professor]February 11, 2021ABSTRACTHuman resource management has continued to evolve over the years given the rapid technological advancements. Human resource information systems (HRIS) and human resource accounting (HRA) are some of the components of strategic human resource management that have experienced tremendous changes. This study examines the complementary relationship between HRA and HRIS. The study’s findings help to address the existing gap in literature regarding the link between the two. The study utilizes a qualitative descriptive research design in which a sample of 17 participants is included. Data is collected using a structured self-administered questionnaire and analyzed through thematic analysis. The study found that HRIS applications and tools support HRA activities whereas HRA activities ensure HRIS generates complete and accurate information regarding an organization’s human resource.Keywords: human resource accounting, human resource information systems, human resource management, complementary relationship.RELATIONSHIP BETWEEN HUMAN RESOURCES ACCOUNTING AND HRISHuman resource management (HRM) is a term used to refer to tasks and activities that are beneficial in maximizing the performance of employees in an organization. Over the past few years, HRM is increasingly evolving and dynamic as organizational leaders are constantly looking to improve quality, productivity, and effectiveness. New models and ways to promote the value and effectiveness of HRM have been developed and are used by organizations. The evolution of HRM is fueled by rapid technological advancements and increased globalization.[footnoteRef:1] Human Resource Information Systems (HRIS) are some of the models that have emerged in HRM. HRM also entails the management of accounting information, which is used extensively in organizational strategic decision making. [1: Bader Aljamaan, “Human Resources Accounting: Concepts, Objectives, Models and Criticism”, Global Journal of Human Resource Management 5(2017):1]Background of the StudyRapid technological advancements have contributed to the emergence of new models and ways of human resource management. Human resource professionals are increasingly looking for measures to enhance the effectiveness of their processes and activities. These efforts have contributed to the development of new models for HRM including Human Resources Accounting and Human Resource Information Systems (HRIS). The development of these new models and ways of HRM has been influenced by the fact that organizational leaders are increasingly cognizant of the various kinds of technology that could enhance the effectiveness of their organization. Human Resource Accounting and HRIS have become critical components of modern HRM initiatives as they play a critical role in strategic decision-making processes.HRIS is a term used to refer to integrated systems that are used to collect, store, and analyze information about the human resources of an organization.[footnoteRef:2] The concept of HRIS was first introduced over five decades ago and has evolved beyond its initial purpose of changing paper records into computerized databases. The contemporary HRIS tools can be used by human resource professionals to carry out various activities on a daily basis. Through these tools, organizations implement more complex computerized systems to help ensure their records are accurate and up-to-date.

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HRIS tools are considered critical in today’s HRM as they help enhance efficiency with regards to HR decision-making. [2: Barkha Gupta, “Human Resource Information System (HRIS): Important Element of Current Scenario’, IOSR Journal of Business and Management 13 (2013):41]According to Al-Hattami& Kabra, human resource accounting is one of the sub-systems within the accounting information system used in HRM.[footnoteRef:3] Human resource accounting provides all financial and non-financial information regarding human resources. It achieves this by gathering data regarding the organization’s human resources from a variety of sources and examines the data based on certain rules of accounting. The results of this process are then provided to…

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…HRA activities.[footnoteRef:32] HRIS applications serve as the platform for the development of financial accounting software for improved organizational financial performance.[footnoteRef:33] [31: Ibid., 20.] [32: Zachary Totah, “3 Ways Human Resources Applications Effectively Support and Enhance Your Business”, Select Hub, September 15, 2020, https://www.selecthub.com/hris/the-three-types-of-hr-applications/] [33: Faruk Bhuiyan, Muhammad Mahbubur Rahman & Mohammad Osman Gani, “Impact of Human Resource Information Systems on Firm’s Financial Performance”, International Journal of Business and Management 10, no. 10 (2015):180]The study also demonstrates that HRIS plays a critical role in the collection, maintenance, and storage of complete human resource information as noted by Aggarwal & Kapoor.[footnoteRef:34] However, information stored in HRIS applications is not complete without the inclusion of accounting information. As reported by study participants, accounting information should be integrated into HRIS to help generate an accurate picture of the organization. By promoting the integration of accounting/financial information into HR planning and function, HRA ensures HRIS generate an accurate picture of an organization’s human resources. As HRIS is used in HRM processes and activities, accurate, relevant, and timely information that reflects the organization’s true picture is essential for strategic human resource management.[footnoteRef:35] [34: Nisha Aggarwal & Mona Kapoor, “Human Resource Information Systems (HRIS): It’s Role and Importance in Business Competitiveness”, Gian Jyoti e-Journal 1, no. 2 (2012): 3] [35: Marlene Sofia Alves e Silva & Carlos Guilherme da Silva Lima, “The Role of Information Systems in Human Resource Management”, Management of Information Systems (2018): 115]CONCLUSIONThe present study examines the complementary relationship between human resources accounting and human resource information systems. The results of this study confirm the significant relationship between these two components and their significant positive influence on each other. As evident in the study, HRIS supports HRA activities by providing necessary tools and applications for measuring the human capital. On the other hand, HRA facilitates….....

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