What role does HRIS play in an organization?

The correct answer highlights the primary function of a Human Resource Information System (HRIS), which is to collect and manage information about employees. An HRIS is a crucial tool for human resource departments, facilitating the organization and retention of various employee-related data, such as personal details, employment history, payroll, performance evaluations, and benefits administration. By centralizing this information, an HRIS streamlines HR processes, enhances data accuracy, and improves decision-making related to workforce management.

The other options, while important functions in an organization, do not align with the specific purpose of an HRIS. For instance, analyzing market trends typically falls under marketing research or business analytics, overseeing financial transactions is a role suited for financial systems or accounting departments, and managing customer interactions is a responsibility usually handled by Customer Relationship Management (CRM) systems. Therefore, the primary role of HRIS is effectively encapsulated in its ability to manage employee information, making it vital for efficient human resource management.