Title: Cost reduction and productivity improvement through HRIS

Authors: Halima Begum; Faruk Bhuiyan; A.S.A. Ferdous Alam; Abd Hair Awang; Muhammad Mehedi Masud; Rulia Akhtar

Addresses: Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia, 43600 UKM Bangi, Selangor, Malaysia ' Department of Accounting and Corporate Governance, Macquarie University, NSW-2109, Australia; Department of Business Administration, International Islamic University Chittagong, Kumira, Chittagong-4318, Bangladesh ' School of International Studies, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah, Malaysia ' Faculty of Social Sciences and Humanities, National University of Malaysia, 43600 UKM Bangi, Selangor, Malaysia ' Department of Development Studies, Faculty of Economics and Administration, University of Malaya, 50603 Kuala Lumpur, Malaysia ' Faculty of Economics and Management Sciences, International Islamic University, 53100 Kuala Lumpur, Selangor, Malaysia

Abstract: Employee productivity improvement and HR cost reduction are two useful options for a cost leader. This study aims to examine the association between human resource information systems (HRIS), employee productivity, and HR costs by focusing on the data of 40 Bangladeshi banks. The impact of one standard deviation variation of HRIS application on employee productivity and HR costs is then calculated using multiple regression analysis. The multivariate analysis of covariance (MANCOVA) is then tested to examine the variation of employee productivity and HR costs according to bank ownership patterns. Results indicate that the use of HRIS applications generated a higher efficiency in terms of employee productivity and the reduction of HR costs (where all things remain constant). It was also observed that employee productivity does not vary according to bank ownership patterns though stateowned banks and private-owned banks experience different HR costs.

Keywords: HRIS; HR costs; employee productivity; banking industry; Bangladesh.

DOI: 10.1504/IJISD.2020.106235

International Journal of Innovation and Sustainable Development, 2020 Vol.14 No.2, pp.185 - 198

Received: 26 Jul 2017
Accepted: 25 Feb 2018
Published online: 02 Apr 2020 *

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