Introduction
Data Management is the administrative process by which data is acquired, stored, and processed into information. This information can then be used in a variety of ways to help the company, their Management and their employees.
This report will review an organisations approach to collecting, storing and using HR data. It covers the reasons why an organisations needs to collect HR data, types of data it collects and how it supports HR, different methods of storing information and their benefit and UK legislation relating to the recording, storage and access to HR data.
1.1. Reasons why organisations collect, store and record data
There are many reasons why organisations need to collect data, from ensuring legal requirements are met, providing relevant information in decision making and planning and for health and safety purposes and so on.
Data needed to support the organisation’s planning and decision making, is done at 3 levels; strategic, tactical and operational. Strategic information is used at the very top level of management and it is this level that is responsible for all legal requirements such as tax issues and payroll (Martin and Jackson 2005)
Tactical information is used by middle management and they use the information gathered from the Operational level to produce reports on performance, absence by department and so on. The lowest level of management or workers implements operational plans and it is this level that collects the data which is used to make information for the strategic and tactical levels such as personal contact details and absence.

1.2. Two types of data collected and how they support HR Practices
Data refers to raw or unprocessed facts or observations which have yet to be analysed or processed in any manner (http://www.differencebetween.info/difference-between-data-and-information). Once the data is analysed, it is considered as information.
The sort of information that a HR team will want to collect will vary depending on the industry, the company and its priorities. Some of the most common types of data that companies will collect are regarding employee performance and skills and attendance data.
Attendance records are required by HR to monitor hours worked including overtime pay, for annual leave, sick leave, holiday pay and maternity/paternity leave and reports can be produced to show trends and patterns in non-attendance by department.
Collecting performance and skills data by way of appraisals provides a way to help identify areas of employee’s work which may need developing by further training resulting in increased motivation and self-esteem for the employee, and improved productivity for the company.

2.1 The methods of storing records and their benefits
It is essential to decide what method of storage should be used depending on the data.
There are two methods in which companies store data; electronically and manually (CIPD factsheet)
The advantages of storing data electronically are that files will be safe and secure from undesirable visitors, all data is easily accessible allowing multiple employees to view the same document at the same time and data can be edited and transferred between employees, for example holiday cards can be viewed and edited by employees, their Managers and the HR Department.
The advantages of storing data manually are that the files are not in danger of being damaged by virus’ and software security problems, all employees can access them, it is much more cost effective than electronic files and signed contracts are readily available if needed for legal purposes.

2.2 The UK legislation relating to the recording, storing and accessibility of HR data

The Data Protection Act 1998 (DPA) is an Act of Parliament of the United Kingdom of Great Britain and Northern Ireland which defines UK law on the processing of data on identifiable living people.(Wikipedia). The act sets out 8 principles that are designed to protect any person from misusing data. The requirement to process personal data fairly and lawfully means that companies must;
•have legitimate grounds for collecting and using the personal data;
•not use the data in ways that have unjustified adverse effects on the individuals concerned;
•handle people’s personal data only in ways they would reasonably expect.

Ensuring personal data is disposed of when no longer needed will reduce the risk that it will become inaccurate, out of date or irrelevant. This means that organisations need to:
• review the length of time personal data is kept;
• consider the purpose of the information in deciding whether to retain it;
• securely delete information that is no longer needed for this purpose

The Freedom of Information Act 2000 provides the public with access, if requested, to certain published information held by public authorities. The act does not provide any additional rights to employees or others to access employee records. Conclusion

To conclude, data is an integral part of every company and information needs to be collected, recorded and securely stored for both internal purposes, such as monitoring staff turnover and contractual arrangements, and legal purposes such as hours worked, tax issues and pay rates.

Recommendation
I therefore recommend that companies continue to collect record and store their employee’s data, that this data is transferred into invaluable information to be used by the HR Department and that The Data Protection Act 1998 is adhered to at all times.