Factors affecting human resource information system performance in business organizations as perceived by employees

Abstract

A review of related literature has revealed that there are still unanswered questions concerning Human Resource Information System (HIRS) and its performance factors. Prior research finding have revealed that HRIS performance is influenced by several factors such as technological variables, organizational variables, user characteristics, and user satisfaction. However, how these factors interact with one another, directly or indirectly in influencing HIRS performance is still not understood well enough. Further, which of these factors are the most significant in affecting HRIS performance is also not yet establish. Also, few studies have investigated the combined effect of these factors on HRIS performance modeling. The purpose of this study was to integrate the factors found to influence HRIS performance together in one model using Structural Equation Modeling. The endogenous variable for the study was HRIS performance, and the exogenous variables were technology adoption, technology usefulness, technology ease of use, organizational culture, organizational trust, top management support, user satisfaction, user knowledge, user skill, and user commitment. For data collection, a combination of online and face-to-face surveys were used. A questionnaire compost of 11 instruments was administered to HRIS users for data collection. A total of 222 HRIS users of selected business organizations in the Philippines and Indonesia completed the survey. The result indicated that the HRIS performance model developed from analyzed collected data explains 68.5% of the variance of HRIS performance. Factors such as technology usefulness, technology ease of use, user commitment, and user satisfaction were found to have a direct positive effect on HRIS performance in the model. Other factors such as organizational culture, technology ease of use, and user skill also have a significant indirect contribution through user satisfaction on HRIS performance in the model. From the finding of this study, it can be concluded that technology usefulness, technology ease of use, user satisfaction, and user commitment have a significant role in organizations, helping employees to accept technology innovation at the work place and ultimately influencing HRIS performance. Further, in today's competitive business environment, organizations should seek to create supportive work culture, provide HRIS training, keep records of the HRIS users' best practices, and motivate them to share their best practices with other organizational employees, so that higher HRIS performance may be continually achieved.