The purpose of this research is to identify specifically, how the use of Human Resource Information Systems (HRIS) contributes to the effectiveness of strategic human resources management and to examine the strategic importance of using HRIS at the workplace. Relevant review of various HRIS literature were undertaken which culminated into the development of a conceptual model and the formulation of hypotheses to test the proposal that there is relationship between independent variables- HRIS- and the dependent variables- Cost and Time Savings (CTS), Decision Making Contribution (DMC), Quality Information Effects (QIE) and Employment Development Commitment (EDC). The research uses data generated from 34 respondents from insurance companies in Ghana: SSNIT, ELAC, Vanguard, and Donewell. Data was analyzed using SPSS software. It has been found that HRIS adoption and use have a strong and positive effect on CTS and DMC. Essentially, organizations that divert concerted efforts towards HRIS adoption and use have a high likelihood of cutting down cost and saving time, and also ensure better contributions to strategic decision making. Further findings suggest that insurance organizations map up a strategic plan before implementation goes underway. Financial and resource appraisal in relation to the ability to start and sustain HRIS use are critical. HRIS enables HR professionals and supervisors to manage complex information entities and to plan HR efficiently also, organisations that intend using HRIS should thoroughly educate its employees- not only HR staff- so that internal awareness can facilitate the acceptance of the system.
Key words: human resource information system, strategic human resource management, strategic decision making.
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