Effects of Human Resource Information Systems on Human Resource Management Practices and Firm Performance in Listed Commercial Banks at Nairobi Securities Exchange

Abstract

Globally, information systems have been adopted in various sectors of the economy. The trend is more entrenched in developed countries. Developing countries have adopted information systems in a lukewarm manner. Almost every task can be computerized, thereby making it very easy to accomplish various jobs. Human resource information systems are used to make the various human resource management practices easy to accomplish and consequently saving on time and costs. The systems can be used in recruitment and selection, training and development, HR planning, reward management and in performance management to mention but a few. This study sought to establish whether there is a link between the use of information systems in human resource practices and ultimately firm performance. Specifically, this paper looks at the influence of HRIS on training and development. The performance of a firm was looked at in its entirety in the sense that a balanced score card was employed to view all manifestations of performance of a firm. Kaplan and Norton in designing the balanced score card posited that performance of a firm can be determined by; financial measure, learning and growth of employees, customer satisfaction and internal business processes. All these aspects were used to find out whether there is a relationship between HRIS and the performance of a firm.The study was quantitative as well as qualitative in nature. Both primary and secondary data were used in this research. Secondary data was collected from the Capital Markets Authority. The data was in form of financial statements of listed companies from the year 2001 to 2011. Primary data was collected by the use of questionnaires and through interviews. Statistical Package for the Social Sciences (SPSS) software, descriptive and inferential statistics was used to analyze the data in this research.

Keywords: Human capital, Human resource information systems, Human resource planning and Information systems