Effectiveness of Human Resource Information System on Organizational Performance in IT Companies: The Mediating Role of User Satisfaction

Abstract

Information technology has greatly changed the way human resource management is conducted and as such, the trend is now to use Human Resource Information Systems (HRIS) in organizations. This paper focuses on the effectiveness of the HRIS and its effect on the performance of an organization among the IT companies in Chennai with special emphasis on the mediating role of user satisfaction. The quantitative research design was used and a structured questionnaire was used to collect primary data of 480 respondents. Structural Equation Modeling (SEM) was used to examine the relationships between the HRIS effectiveness, user satisfaction, and organizational performance. The results indicate that HRIS performance can have a strong positive influence on user satisfaction and organizational performance. The research also confirms that user satisfaction is an important mediating factor in the correlation between the effectiveness of HRIS and business performance. This implies that the success of HRIS is not only dictated by its technical aspect but also by the perceptions and interaction of users with the system. The findings emphasize the need to implement a user-based strategy in HRIS implementation to improve organizational performance. The research makes a contribution to the literature by offering empirical research on the mediating position of user satisfaction and also offers practical information to IT companies in order to enhance the use and performance of the systems.