Final answer:
An HR Information System streamlines processes, enhances productivity, and refocuses human resource efforts towards organizational strategy, promoting a diverse and bias-reduced working environment.
Step-by-step explanation:
The key effect that an HR Information System has on an organization is that it streamlines processes and refocuses HR efforts on organizational strategy. Such systems often change how organizational processes are designed and executed, connect people with the organization's objectives, and improve overall productivity.
Additionally, adopting such systems can lead to a more professional handling of human resources functions which, in turn, may help reduce bias in the hiring process and contribute to a fairer, more diverse workplace environment.
Moreover, the implementation of an HR Information System can help in understanding the psychological complexity of a diverse workforce, benefiting from the insights of industrial and organizational (I-O) psychology to foster job satisfaction and performance appraisal. The system also aids in understanding and displaying organizational culture, roles, and hierarchies through tools like organizational charts.