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1 Vol II Issue VI Dec 2012 Impact Factor : ISSN No : ORIGINAL ARTICLE Monthly Multidisciplinary Research Journal GoldenResearch Thoughts Chief Editor Dr.Tukaram Narayan Shinde Publisher Mrs.Laxmi Ashok Yakkaldevi Associate Editor Dr.Rajani Dalvi Honorary Mr.Ashok Yakkaldevi

2 IMPACT FACTOR : Welcome to ISRJ RNI MAHMUL/2011/38595 ISSN No Indian Streams Research Journal is a multidisciplinary research journal, published monthly in English, Hindi & Marathi Language. All research papers submitted to the journal will be double - blind peer reviewed referred by members of the editorial Board readers will include investigator in universities, research institutes government and industry with research interest in the general subjects. Flávio de São Pedro Filho Federal University of Rondonia, Brazil Kamani Perera Regional Centre For Strategic Studies, Sri Lanka Janaki Sinnasamy Librarian, University of Malaya [ Malaysia ] International Advisory Board Mohammad Hailat Dept. of Mathmatical Sciences, University of South Carolina Aiken, Aiken SC Abdullah Sabbagh Engineering Studies, Sydney Catalina Neculai University of Coventry, UK Hasan Baktir English Language and Literature Department, Kayseri Ghayoor Abbas Chotana Department of Chemistry, Lahore University of Management Sciences [ PK ] Anna Maria Constantinovici AL. I. Cuza University, Romania Romona Mihaila Spiru Haret University, Romania Delia Serbescu Spiru Haret University, Bucharest, Romania Anurag Misra DBS College, Kanpur Titus Pop Ecaterina Patrascu Spiru Haret University, Bucharest Loredana Bosca Spiru Haret University, Romania Fabricio Moraes de Almeida Federal University of Rondonia, Brazil George - Calin SERITAN Postdoctoral Researcher Editorial Board Horia Patrascu Spiru Haret University, Bucharest, Romania Ilie Pintea, Spiru Haret University, Romania Xiaohua Yang PhD, USA Nawab Ali Khan College of Business Administration Pratap Vyamktrao Naikwade Iresh Swami ASP College Devrukh,Ratnagiri,MS India Ex - VC. Solapur University, Solapur R. R. Patil Head Geology Department Solapur University, Solapur Rama Bhosale Prin. and Jt. Director Higher Education, Panvel Salve R. N. Department of Sociology, Shivaji University, Kolhapur N.S. Dhaygude Ex. Prin. Dayanand College, Solapur Narendra Kadu Jt. Director Higher Education, Pune K. M. Bhandarkar Praful Patel College of Education, Gondia Sonal Singh Vikram University, Ujjain Rajendra Shendge Director, B.C.U.D. Solapur University, Solapur R. R. Yalikar Director Managment Institute, Solapur Umesh Rajderkar Head Humanities & Social Science YCMOU, Nashik S. R. Pandya Head Education Dept. Mumbai University, Mumbai Govind P. Shinde Bharati Vidyapeeth School of Distance Education Center, Navi Mumbai Chakane Sanjay Dnyaneshwar Arts, Science & Commerce College, Indapur, Pune Awadhesh Kumar Shirotriya Secretary, Play India Play (Trust),Meerut G. P. Patankar Alka Darshan Shrivastava S. D. M. Degree College, Honavar, Karnataka Shaskiya Snatkottar Mahavidyalaya, Dhar Maj. S. Bakhtiar Choudhary Director,Hyderabad AP India. S.Parvathi Devi Ph.D.-University of Allahabad Sonal Singh Rahul Shriram Sudke Devi Ahilya Vishwavidyalaya, Indore S.KANNAN Ph.D, Annamalai University,TN Satish Kumar Kalhotra Address:-Ashok Yakkaldevi 258/34, Raviwar Peth, Solapur Maharashtra, India Cell : , Ph No: ayisrj@yahoo.in Website:

3 Golden Research Thoughts Volume 2, Issue. 6, Dec ISSN: GRT ORIGINAL ARTICLE PROPOSED MODEL OF USER ACCEPTANCE OF IT IN HRIS SUBHASH C. KUNDU AND RAJESH KADIAN Available online at Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar (Haryana), INDIA. Abstract: KEY WORDS: Last decade had seen explosion in Information Technology (IT), its implementation and impact. IT has a major role in information system (IS) implementation. IS discipline is in essence an applied social science pertaining to use and impact of technology. The study discusses the relationship of IT related (i.e. computer systems engineering and computer science) disciplines with IS and then social sciences related (psychology, anthropology and sociology) disciplines with information system. IS in human resource (HR) is named as human resource information system (HRIS). Further, the study then works out how (information) technology can be accepted in IS and HRIS using Technology Acceptance Model. Finally a model is proposed for user acceptance of information technology in HRIS. HRIS, Information Technology, psychology, anthropology, sociology. INTRODUCTION The rapid changes in environmental factors such as globalization, technology, increasing importance of human resources and tough competitive conditions have initiated the organizations world over to change and adapt to the new conditions (Baran et al., 2002). Within the last decade there has been explosion in Information Technology (IT), its implementation and impact. IT now has a major role in IS implementation. The market has grown across the spectrum of organizational type with software like ASR, ERP, people soft and SAP. These products are cheap, flexible, easy to install and easily customizable for small and first time user. Thus most of the IS are now IT enabled. IT serves as a crucial enabler for information or knowledge management in organization (Stratigos, 2001). Contemporary management practices like delayering, teamwork, changing the management style, empowerment, and excersing management information systems are some of the indicators in today's companies of their process of change (Baran et al., 2002). There has been a perception that these software can be used for administrative purpose and systematic availability of information. Thus HR managers can now devote more time for strategic and analytical thinking. Requirement of integration of system becomes crucial when organizations try to achieve corporate objectives (Udani, 2011). Thus there is requirement of IT enabled human resource information system (HRIS). INFORMATION SYSTEM The business community realizes that after people, information is its most important asset (Jenkins and Lloyd, 1985). Information is captured, processed, stored, disseminated and used (Batool et al., 2012). Management is an active, planned activity. Information management goal is to obtain, manage, and use information to enhance and improve individual and organizational performance (Rodger et al., 1998). Title:PROPOSED MODEL OF USER ACCEPTANCE OF IT IN HRIS Source:Golden Research Thoughts [ ] SUBHASH C. KUNDU, RAJESH KADIAN yr:2012 vol:2 iss:6

4 Conventionally, IS had been regarded as technical systems which have databases and data that can be coded (Poutanan, 2010). The Information System has a different aspect of interest. The United Kingdom Academy for Information Systems pointed out the study of IS and its development is a multidisciplinary subject (Avison and Elliot, 2006). Lee (2001) pointed that information system discipline examines more than just the technological system, or just the social system, or even the two side by side; in addition it investigates the phenomena that emerge when the two interact. This definition covers other disciplines such as computing discipline, or some management and social science (Avison and Elliot, 2006). Four types of information systems are mainly used within the industry. Transaction Processing System (TPS) preferred for day to day, transactions and functions that is the operational level activities. Management Information System (MIS) and Decision Support System (DSS) are being used in business decisions. In it MIS uses output from TPS, and DSS using output from TPS and MIS. The input from MIS and DSS helps the Executive Support System (ESS) especially used for strategic level decisions thought to be the contemporary use of IS (Avison and Elliot, 2006). These systems reduces repetitive activities, automation of operation level work, timelessness in data transfer and information retrieval, accuracy of information and help in decision making. Pyburn (1983) felt that IS has become increasingly important to the successful implementation of corporate strategy. INFORMATION TECHNOLOGY DISCIPLINES AND INFORMATION SYSTEM The cost of using web-based technology in organizations is now almost zero. Various IS researchers has identified various IT resources like infrastructure, human IT resources and IT enable intangibles (Bhardwaj, 2000). IT enabled information system includes web based technology (internet and intranet), hardware and the software (modules). Information technology requires one way communication by publishing information, then automation of transactions, workflow, and even supply chain integration thus replacing paper by electronic inputs (Lengnick-Hall and Moritz, 2003). IT integrates different information systems and its information, and individuals within organizations as well as globally. In a hyper-competitive and fast changing environment it is argued that firms appear to be relying even more on Information systems/technology (Magurie and Redman, 2007) that may increasingly be transorganizational in future. IT in general, and IS in particular, are the firm's core resources to cope with rapidly changing environmental threats (Seo et al., 2005). IT applications have a being in process, policy and decision making in production, marketing, sales, communication and HRM (Ball, 2001). Avison and Elliot (2006) pointed that IS was initially seen to be an application of computers to help organizations process their data to improve information. Kwon and Zmud (1987) attributed the adoption of IT by organizations as part of the process of IS implementation. IT doesn't matter in the context that the existence of IT unit within an organizational set up is more like a norm (Rehman, 2006). This does not mean that term IS and IT is interchangeable. The figure 1 shows the relationship of IT related disciplines and the Information systems. Information system is differentiated from computer and IT disciplines of computers system engineering and computer science, by its focus (Avison and Elliot, 2006). On the technology side, information system focuses more on applications of technology and theories. Also IS focuses more on interactions between people and organizations (the 'soft' issue) rather than technology (the 'hard' issue) (Avison and Elliot, 2006). 2

5 Fundamental s Computer system engineering Computer science s Information system Applied Hard Soft Figure1 Relationship of IS with IT disciplines (adapted from ACS, 1992) Note: Hard = Technology; Soft = people and organization. SOCIAL SCIENCE DISCIPLINES AND INFORMATION SYSTEM With increasing complexity, the chances of IS becoming dysfunctional increases when being introduced or implemented. Magurie and Redman (2007) had stressed that since there is substantial amounts of capital expenditure undertaken in IS implementation, not only technical but also eclectic ranging from behavioral, cultural, economic, social and issues also be covered. Figure 2 shows the relationship of IS with social science disciplines. It is clear that IS focuses more on applications of social sciences i.e. psychology, anthropology and sociology. Also IS focuses more on interaction with technology (the 'hard' issues) rather than on interactions between people and organizations (the 'soft' issue) (Avison and Elliot, 2006). Fundamental Applied Sociology Anthropology s Psychology s Information systems Hard Soft Figure 2 Relationship of IS with social science disciplines (adapted for Avison and Elliot, 2006) Note: Hard = Technology; Soft = people and organization. 3

6 HUMAN RESOURCE INFORMATION SYSTEM The field of human resource management (HRM) can be characterized as having encountered frequent and numerous innovations in technology. These include the human resource information system (HRIS), electronic human resource management (e-hrm) and virtual human resources management (VHRM). Tannenbaum (1990) defined a HRIS is one which is used to acquire, store, manipulate, analyze, retrieve, and distribute information about an organization's human resource. Human resource information system (HRIS) is also defined as the composite of databases, computer applications, and hardware and software necessary to collect/record, store, manage, deliver, present, and manipulate data for human resources (Broderick and Boudreau, 1992). Three basic reasons were identified for adoption and application of HRIS in HR department. These were cost reduction/efficiency gains, client service improvement/facilitating management and employees, and improving the strategic orientation of HRM (Broderick and Boudreau 1992). These goals could be taken as the basic reasons for adoption of HRIS in any organization. Reduction in paper work and data entry, automation due to HRIS, deletion of repetitive activities in supplying and retrieval of information and the subsequent economics of scale led to cost reduction and efficiency gains. HRIS works for employee involvement, removes duplication of data, timelessness in data availability, improves and streamlines HR functions. Contemporary HRIS facilitates line managers and employees by allowing them to control their own personal information, access relevant data and information, without middleman (Ball, 2001). This helps in employee service improvement. HRIS frees HR professionals from administrative tasks. This time spared can be used for more strategic activities. HRIS AND INFORMATION TECHNOLOGY Beginning with 1960s personnel management has been an early candidate for use of IT in office automation (Ball, 2001). Avison and Elliot (2006) correlate information system to be the widespread use of computers to process data in the 1950s although they existed well before the advent of computers. In 1990s there existed various expectations of how HRIS should have affected an organization's HR activities and business planning. Unlimited numbers of software with specific requirements are available in market. Human resource capabilities are viewed as the most critical asset of corporate IT capability (Feeny and Willcock, 1998). If IT enabled HRIS are used even for automation of administrative data, HR professionals will have sufficient time for strategic work. International organizations, due to their global presence and multiplant companies being separately require integration. This was the fourth goal identified for adoption of HRIS (Rue l et al., 2004). Integration in this case is required due to employability in different parts of the world. Also there is requirement for integration of HRIS with other information systems for strategic use of HRIS. With the preferred use of computers and net based technologies, managements felt that computer based offered the real solution (Rue l et al., 2004). Kavanagh et al. (1990) mentioned that in 1960s employee costs were low whereas computers were expensive investments for organizations. But now companies are able to invest in different IT and HRIS due to the decline in costs of technology. Despite all claims, HRM has been a laggard in terms of IT (Kinnie and Arthurs, 1996). TECHNOLOGY ACCEPTANCE MODEL The technology acceptance model explains why users actually use a technology? That is why this study includes an elaboration on the technology acceptance of users (Davis et al., 1989). TAM is based on two beliefs namely that perceived usefulness and perceived ease of use are of primary relevance for computer acceptance behavior, which results in figure 3. Perceived Usefulness External Variables Attitude toward Using Behavioral Intention to Use Actual System Use Perceived Ease of Use Figure 3: Technology Acceptance Model (adopted from Davis et al., 1989) 4

7 There is a weak link between task and technology and the fit between those two. However, there is a strong link between perceived usefulness and perceived ease of use and on the other hand attitude towards use. TAM postulates that behavioral intention determines actual system usage. Behavioral intention is only determined by perceived usefulness and attitude towards using (Davis et al., 1989). Information technology as being a technology falls under the same umbrella for its adoption for its adoption by the HR professional, line managers and employees of all organizations. Empirical studies found that perceived usefulness significantly directly influenced perceived effective use (Or et al., 2010). Moreover, perceived usefulness had an indirect effect on perceived effective use through behavioral intention. The direct effect of perceived ease of use on behavioral intention was not significant, but perceived ease of use had an indirect influence on behavioral intention through perceived usefulness (Or et al., 2010). Or et al. (2010) showed that perceptions of usefulness, which strongly influenced their intention to use the technology, depended in part on the ease of use of the technology. This demonstrates ease of use is still an important variable for influencing acceptance of technology. Davis et al (1989) noted that, over time, as users learn to use a technology, ease of use of the technology becomes less salient. Thus, the effect of ease of use diminishes. Another finding was that profession's knowledge had no significant impact on behavioral intention, but it positively predicted perceived effective use (Or et al., 2010). Behavioral intention will have a significant positive influence on usage of technology (Venkatesh et al., 2003). Jayawardhena and Foley (2000) in their studies on banks in West Europe found that a positive correlation existed between user satisfaction and the multimedia content and hypertext connection of the website. PROPOSED MODEL FOR ACCEPTANCE OF IT ENABLED HRIS The proposed model shows that IT related disciplines and social science related disciplines have contributory effect on IS development. With modification in technology acceptance model it is shown how IT related disciplines can be accepted for use in IS. IT enabled HRIS is then accepted and is derived from IS as like other IS sub-systems i.e. finance, marketing and others. These sub systems then contribute back to the IS as well as have an integration with other sub-systems for better information storage, retrieval and use. This integration helps for strategic decision making. HR and HRM are major role players in the development and acceptance of IT enabled HRIS. Human resource is the only resource where with the same input, the output may vary as per the way of thinking, acting, situation, time and behavior. Development of IT enabled HRIS includes IT experts, system analysts, HR professionals, experts and management. At the acceptance end there are: HR professionals, line managers, employees, customers, job applicants, contractors, partners, aspirants etc. HR architecture changes with adoption of IT enabled HRIS. Self service for managers and employees remain the key concepts in it. It is a strategic decision, which of the activities is to be handled internally and which is to be outsourced. Then within organization what activities of HR are now to be performed by HR professionals and what are to be delivered to line manager and employees? Who could store and access what information is another aspect that requires concentration while development? In IT enabled HRIS in HRM how many applications and to which level they are to be adopted and applied, is a critical decision. So, while designing any information system for a human application, care is required to understand the importance of interaction between human and the activities of the application area (Poutanan, 2010). The more the human activity, the more challenging the design phase is (Avison and Elliot, 2006). 5

8 Acceptance of IT enabled marketing IS Acceptance of IT enabled other IS Social science related disciplines (S) - psychology - anthropology - sociology Acceptance of IT enabled HRIS HR & HRM Acceptance of IT enabled financial IS Acceptance of IT enabled IS Information system Behavior intention to use I Information technology related disciplines (I) - computer systems engineering - computer science Perceived usefulness of I Perceived ease of use of I Attitude towards using I Figure 4 Proposed model for acceptance of IT enabled HRIS. Note: = Contributory; = Major; I= IT related disciplines; S= Social science related discipline. CONCLUSION In the last decade there has been explosion in Information Technology (IT), its implementation and impact. It has now a major role in information system (IS) implementation. The use of IT in IS, especially has been seen as inseparable. The requirement of more information, in different ways, and strategic use of information require lot of automation of information. Windows prompted the birth of many smaller software houses writing in affordable, easily customizable, flexible, low cost, generic, modular IS (Ball, 2001). Web-based technology has revolutionized and integrated various information systems. Also this technology is available at almost zero cost. Application of IS in HR and its management is called as human resource information system (HRIS). The study first discussed the relationship of information technology disciplines with information system. It then discusses the relationship of social science disciplines with IS. Then the study then works out how IT can be accepted in IS and HRIS. As per technology Acceptance Model, for adoption of IT enabled IS there is a strong link between perceived usefulness and perceived ease of use and on the other hand attitude towards use (Davis et al., 1989). Finally a model is proposed for acceptance of information technology in HRIS. The study has limitation that the model proposed is not empirically tested. This model can be used for further empirical research. 6

9 REFERENCES ACS. (1992), Submission to Review of Computing Disciplines, Australian Computer Society,Canberra. Avison, D. and Elliot S. (2006), ''Scoping the Discipline of Information Systems, in J. King & K. Lyytinen (Eds.), Information Systems: The State of the Field, Chichester, UK, John Wiley and Sons, Ltd, pp Ball, K.S. (2001), ''The Use of Human Resource Information Systems: A Survey,'' Personnel Review, Vol. 30, No. 6, pp Full-text [online]. Emerald [Accessed on 21st January 2010]. Baran, M., Karabulut, E., Semercloz, F. and Pekdemir, I. (2002), ''The New HR Practices in Changing Organizations: An Empirical Study in Turkey,'' Journal of European Industrial Training, Vol. 26, No. 2/3/4, pp Batool, S.Q., Sajid, M.A. and Raza, S.H. (2012), ''Benefits and Barriers of Human Resource Information System in Accounts Office & Azad Jammu & Kashmir Community Development Program,'' International Journal of Humanities and Social Science, Vol. 2, No. 3, pp Bharadwaj, A.S. (2000), A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation, MIS Quarterly, Vol. 24, No. 1, pp Broderick, R. and Boudreau, J.W. (1992), ''Human Resource Management, Information Technology, and the Competitive Edge,'' Academy of Management Executive, Vol. 6, No. 2, pp Davis, F.D., Bagozzi, R.P. & Warshaw, P.R. (1989), User Acceptance of Computer Technology: A Comparison of two Theoretical Models, Management Science, Vol. 35, No. 8, pp Feeny, D.F. and Willcocks, L.P. (1998), Core IS Capabilities for Exploiting Information Technology, Sloan Management Review, Vol. 39, No. 3, pp Jayawardhena, C. and Foley, P. (2000), ''Changes in the Banking Sector The Case of Internet Banking in the UK,'' Internet Research: Electronic Networking Applications and Policy, Vol. 10, No. 1, pp Jenkins, M.L. and Lloyd, G. (1985), ''How Corporate Philosophy and Strategy Shape the Use of HR Information Systems,'' Personnel, May, pp Kavanagh, M.J., Gueutal, H.G. and Tannenbaum, S.I. (1990), ''Human Resource Information Systems: Development and Applications,'' Boston, PWS-KENT Publishing Company. Kinnie, N.J. and Arthurs, A.J. (1996), Personnel Specialists' Advance Use of Information Technology: Evidence and Explainations, Personnel Review, Vol. 25, No. 3, pp Kwon, T.H. and Zmud, R.W. (1987), ''Unifying the Fragmented Models of Information Systems Implementation in Critical Issues, in R.J. Boland, Jr. and R.A. Hirschheim (Eds.), Information Systems Research, New York, John Wiley and Sons, Ltd, pp Lee, A.S. (2001), ''Editorial,'' MIS Quaterly, Vol. 25, No. 1, pp Lengnick-Hall, M.L. and S. Moritz (2003), The Impact of E-HR on the Human Resource Management Function, Journal of Labour Research, Vol. 24, No. 3, pp Maatman, M. (2006), Measuring the Effectiveness of E-HRM, unpublished Doctorate of Philosphy Thesis, University of Twente, Netherland. Magurie, S. and Redman, T. (2007), ''The Role of Human Resource Management in Information Systems Development, Management Decision, Vol. 45, No. 2, pp Or CKL, Karsh B-T, Severtson DJ, et al. (2010) Factors affecting home care patients' acceptance of a web-based interactive self-management technology, Journal of the American Medical Information Association. doi: /jamia Downloaded on November 13, 2012 Poutanen H. (2010), Developing the Role of Human Resource Infoamtion Systems for the Activities of Good Leadership, Published Doctorate thesis, Department of Information Processing Science, University of Oulu. Pyburn, P.J. (1983), ''Linking the MIS Plan with Corporate Strategy: An Exploratory Study, MIS Quarterly, pp Full-text online, Academic Search Premier, EBSCOhost [Accessed on 12th June 2010]. Rehman, S.U. (2006), ''IT Applications in Kuwaiti Financial Companies: An Analysis,'' Information Management & Computer Security, Vol. 14, No. 5, pp Rodger, J.A., Pendharkar, P.C., Paper, D.J. and Molan, P. (1998), ''Reengineering the Human Resource Information System at Gamma,'' Facilities, Vol. 16, No. 12/13, pp Rue l, H.J.M., Bondarouk, T. and Looise, J.C. (2004), E-HRM: Innovation or Irritation: An Exploration of Web-based Human Resource Management in Large Companies, Utrecht, Netherlands, Lemma Publishers. Seo, Y.W., Han, H.S. & Lee, J.N. (2005), A Relationship Perspective to Investigate the Effect of Human Resource Capability on Information System Outsourcing Success, Research and Practice in Human Resource Management, Vol. 13, No. 2, pp Stratigos, A. (2001), ''Knowledge Management Meets Future Information Needs,'' Online, Vol. 25, No. 1, 7

10 pp Tannennbaum, S.I. (1990), ''HRIS: user group implications'', Journal of System management, Vol. 41 No. 1, pp Udani, C. W. (2011), The role of Human Resource Information Systems in Human Resource Planning in Private Organisations in Sri Lanka, Master's Thesis, Faculty of Graduate studies, Uninversity of Colombo. Venkatesh, V., M.G. Morris, G.B. Davis & F.D. Davis (2003), User Acceptance of Information Technology: Toward a Unified View, MIS Quarterly, Vol. 27, No. 3, pp

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