The Role of Human Resource Information Systems (HRIS) in Decision-Making Effectiveness and Organizational Efficiency: Perceptual Analysis on Service Sector Employees

Abstract

Citation: Chowdhury, M. A. M. & Ahmed, R. (2025). The role of Human Resource Information Systems (HRIS) in decision-making effectiveness and organizational efficiency: Perceptual analysis on service sector employees. Abstract: Human Resource Information Systems (HRIS) play a significant role in streamlining operational processes by automating routine HR tasks, resulting in substantial time and cost savings. Automation of functions such as payroll processing, employee record management, and compliance reporting allows HR professionals to focus more on strategic activities. Despite the universal adoption, existing research on the impacts of HRIS on decision-making effectiveness and organizational efficiency remains preliminary. The effectiveness of HRIS and enabling software on organizational performance lacks a comprehensive analysis. This study addresses the gap in comprehending how HRIS adoption specifically impacts organizations. The studies convey an understanding from the employees' perspectives, utilizing a quantitative approach. This paper focuses on the role of the HRIS in enhancing decision-making effectiveness and organizational efficiency, as perceived by employees in the service sector. A structured questionnaire was developed as a data collection tool to gather information from 102 service sector employees whose roles involve the use of HRIS. Descriptive analysis, Pearson's correlation, partial correlation, Spearman's rank order correlation, and Kendall's Tau-B correlations were used to analyse the data and explore the relationships between variables statistically. The results indicate that employees with better educational backgrounds and experience understand the importance of HRIS in the organizational context, irrespective of gender. Moreover, the use of HRIS is positively and strongly associated with improved organizational performance, underscoring the significance of implementing HRIS in enhancing efficiency. This study contributes to the literature by providing a direct empirical link to the strategic value of HRIS, rather than merely being an operational tool.