Relationship between human resource information system and management of human capital at James Finlay limited, Kenya

Abstract

Technological advancement in the 21st century has unlocked possibilities in all spheres of existence. Lately with the advent of the Covid-19 pandemic, the workplace has been transformed and businesses are operating in unchartered waters. Human resource management information system is believed to guarantee more efficient and effective way of managing human capital in organizations. However, many organizations are still stuck with the traditional way of managing human capital despite its usefulness. It is on this basis that this study sought to assess the relationship between human resource information system and management of human capital. Specifically, the study sought to assess the relationship between training information system, recruitment information system, performance management information system, self-service information system, human resource planning information system and management of human capital at James Finlay (Kenya) limited. The study was anchored on human capital theory, the resource based theory and organizational fit theory. The study used cross sectional research design with a target population of 458 employees. Yamane’s formula was also used to obtain a sample size of 213 respondents. The study adopted primary data collection method where structured questionnaires were administered to the respondents. Content and construct validity of the research instrument was ensured through extensive literature review and consultation with the subject experts and the supervisor. On the other hand, instrument reliability was determined through Cronbach’s Alpha coefficient where a value 0.8945 was established and considered ideal for the study. Data for checking reliability of the instrument were obtained from a pilot study using 10% of the sample size from Unilever limited. To uphold research ethics, the researcher obtained all the necessary approvals such as a research permit from NACOSTI and the ministry of education before commencement of data collection exercise. The obtained data was analyzed by the use of descriptive, correlation and regression analysis. The study established that there was a positive significant relationship between training information system (β=0. 0.409; p<0.05), recruitment information system (β=0.511; p<0.05), performance management information system (β=0.446; p<0.05), self-service information system (β =0.512; p<0.05) and human resource planning information system (β =0.514; p<0.05). The study concluded that training information systems, recruitment information systems, performance management information systems, self-service information systems and human resource planning had a positive influence on management of human capital. The study recommended that James Finlay (Kenya) Limited develops a strategy of ensuring that the HRIS at the company are customized to the company processes to increase their effectiveness. The study findings are expected to contribute directly to the field of information systems and their application in human resource management, build on the existing body of Human Resource knowledge, provide practical data to support Human Resource and information system theories and as well provide a guide to James Finlay in effectively implementing Human Resource Information System policies.