Impact of the Challenges in Implementing Human Resource Information Systems in Sri Lankan MSMEs

Abstract

Nowadays, the Human Resource Information System (HRIS) is a trending software that is a highly efficient platform for the HR department to carry out their operations. Still, there are some challenges faced by organisations with regard to HRIS implementation. The primary objective of the research is to explore the impact of the challenges such as the cost of maintenance, technical knowledge, management support and staff training in implementing the HRIS in Sri Lankan micro, small and medium enterprises (MSMEs). The authors collected both primary and secondary data. The primary data have been referred from previous research. To study the impact of the challenges and to obtain secondary data, authors analysed 300 surveys as a sample in the Western Province from a total of 1,017,352 MSMEs population in Sri Lanka. This survey had closed-ended questions to collect quantitative data from the respondents, and the convenience sampling method has been used as the data collection method. As the data analysis tool, the authors have used simple and multiple regression analysis to study the significant impact of the challenges on implementation. Lack of researches have been conducted on HRIS implementation, especially in MSMEs, and a minority of HRIS service providers are focusing on MSMEs to promote their systems. To conclude, this research will boost the demand for HRIS technology among MSMEs, pay attention to the HRIS service providers to focus on MSMEs. Further, it helps to spread HRIS knowledge among HR students and HR industrial people to improve the information technology units in the HR industry.