PowerPoint Presentation

to accompany

Human Resource Management,

4rd Edition

by Raymond J. Stone

Prepared by Retha Wiesner © John Wiley & Sons Australia, Ltd 2002
 HUMAN RESOURCE
INFORMATION SYSTEMS (HRIS)
Chapter 3
 OBJECTIVES
• Describe the relationship between strategic HRM and
human resource information systems (HRIS).
• Explain the use of HRIS in contemporary HR
functions.
• Understand the decision-making process that needs to
be followed when introducing HRIS.
• Understand the key issues that will determine the
success or failure of a HRIS.
• Describe how an effective HRIS facilitates the
achievement of HRM objectives.
STRATEGIC HRM AND HRIS
• HRIS has become a critical tool for integrating HR
information into the organisation’s business
strategy and for demonstrating the positive
contribution which HR can make to the bottom line
through the more effective and efficient
management of the organisation’s human
resources.
• HR systems when viewed as information systems
rather than administrative systems can contribute
significantly to the corporate mission.
• The focus of HR systems must be corporate
business objectives, not simply the HR
department’s administrative problems.
 STRATEGIC HRM AND
HRIS
• HRIS is much more than a computerised record of
employee information.
• It is an integrated approach to acquiring, storing,
analysing and controlling the flow of HR
information throughout an organisation.
• It provides the necessary data for the planning
activities such as forecasting, succession planning
and career planning and development.
 Training and Career planning Compensation Expatriate
development and development administration management

HR planning Benefits
administration

Performance Industrial
appraisal relations
HRIS
Selection Health and
INTEGRATED safety
DATABASE
Recruitment Job analysis

Payroll EEO/AA

Forecasts On-demand reports Exception reports

Routine reports
How many chemical How many employees •Labour turnover
Monthly
engineers will need are qualified exception report
employment report
to be employed in 2000? accountants? •Labour cost
•What will the average •How many employees exception report
labour costs be in 2001? speak Japanese?
 Computerisation through the
payroll
• The issue of HR versus payroll systems is an ongoing
controversy.
• One school of thought is that they should be integrated to
create and maintain a ‘complete’ system and to prevent
unnecessary duplication of effort (because much of the
information kept in HRIS is replicated in payroll systems).
• The second viewpoint is that payroll and HR are separate
activities and should be treated as such - a payroll system
is seen as essentially an accounting function which
processes a large number of transactions, while a HRIS is
used for HR planning and decision making.
 Using HRIS: Human Resource planning
(workforce dynamics)
• Workforce Profile • Wage level
• Employee age • Division/department
• Job level and title • Length of service
• Status • Performance rating
• Time in current position • Experience
• Rating for promotion • EEO category
• Education level • Union status
• Willingness to relocate
 Recruitment and Selection
• Identifying, attracting and choosing prospective
employees
• EEO reports: identify minorities or disadvantaged
groups, linked to the positions for which they
applied and their success in competing for those
positions.
• Effectiveness of recruitment strategies: Why did
employee apply for position, geographical areas
of recruitments, background data etc..
 Training and development
• Analysing the outcomes of training and
development by tracking staff over time
• Linking training with work performance
(quantity and quality)
 Performance management
Data on:
• performance appraisals
• output records
• material wastage rates
• error rates.
• Analyse this information by job class,
department etc.
 Compensation and benefits
• Job evaluation data which can be compared
with other positions
• The location of the job in the organisational
structure
• The labour market from which employees
are drawn
• Wage survey data for the particular labour
market
 Quality of work life
• Health and safety issues
• Employee assistance programs
• Family needs/work integration
• Organisational development issues
 Confidentiality of HRIS
• Review all PC-based HR applications.
• Verify that all users are properly trained in the secure use
and handling of equipment, data and software.
• Ensure that all users sign-off (log-off) before they leave
the PC unattended, regardless of how long they intend to
be away.
• Caution users not to give or share their password with
anyone. Each user should be accountable for everything
done with his or her ID and password.
• Recommend a change of password on a monthly or
quarterly basis.
 Confidentiality of HRIS (cont)
• Caution users against duplicating not only copyrighted
programs purchased from vendors but also programs and
data that are proprietary to the company.
• Review all PC-based HR applications.
• Verify that all users are properly trained in the secure use
and handling of equipment, data and software.
• Ensure that all users sign-off (log-off) before they leave the
PC unattended, regardless of how long they intend to be
away.
• Caution users not to give or share their password with
anyone. Each user should be accountable for everything
done with his or her ID and password.
 Confidentiality of HRIS (cont)
• Recommend a change of password on a monthly or
quarterly basis.
• Ensure that all software acquired from sources other than
vendors are run through a virus detection program prior to
installing on your system.
• Consider the feasibility of separating the duties of the users.
• Review who will use the PCs and where their equipment
will be located.
• Ensure that current and backup copies, data files, software,
and printouts are properly controlled so that only authorized
users can obtain them.
LEGAL AND MANAGEMENT
CONCERN
• Organisations today must be alert to the risk of litigation
and abuse resulting from employee use of email and the
internet.
• In Australia for example, 35 percent of employees use the
internet for personal reasons; 96 percent use chat rooms
and email, 37 percent browse sexual sites and 32 percent
visit violence or crime sites.
• To combat such situations, nearly three quarters of major
USA companies now record and review employee
communications (including telephone calls, email and
internet connections).
 COMPUTERISING THE HR DEPARTMENT -
THE DECISION MAKING PROCESS

Three options exist when an organisation commits to

introducing a HRIS:
• Design an in-house system using either internal or
external resources, or a combination of both.
• Buy a system ‘off-the-shelf ’ and commence
operation.
• Buy a system as above but work with the vendor
to modify it to better satisfy the organisation’s
requirements.
 OUTSOURCING

• Outsourcing involves a company contracting out some (or

all) of its HRIS activities to an information technology
specialist.
• Companies are attracted to outsourcing HRIS given the
apparent lower costs, simplicity and convenience.
• Outsourcing HRIS poses risks for the HR manager — for
example, the outsourcing consultancy may lack the
flexibility of an in-house HRIS, or it may prove to be more
expensive and less time sensitive.
• In addition, a fine line exists between delegation of the
HRIS and loss of control (and ownership) of data.
KEY ISSUES DETERMINING SUCCESS
OR FAILURE OF HRIS

A CLEAR VIEW OF THE HRM FUNCTION

• Ensure you have a clear picture of the HR
function and its strategic objectives.

‘BELLS AND WHISTLES’ TRAP

• Some HRIS developers delight in creating
systems that look good but are of little practical
value.
KEY ISSUES DETERMINING SUCCESS
OR FAILURE OF HRIS (Cont)

PAYROLL OR HRI SYSTEM?

 The answer depends on whether the HR manager is
seeking a transaction-based system for keeping wage
and salary data, leave records and related information,
or a more integrated system for collating a body of
information that can be used for management
planning.
 USING THE ‘SHOW ME’ TEST
 KNOWING WHEN TO CALL FOR HELP
 Integration
• Seek integration of the computer,
people, policies/procedures and
information flow which produces an
effective HRIS.
• Establish good relationships with the
IT and other departments.
 RELATIONSHIP WITH THE INFORMATION
TECHNOLOGY DEPARTMENT
• The HR manager is fortunate if the IT department shares his
or her commitment to implementing a system.
• However, if the IT department is entirely committed to
running the accounting system on the mainframe, the HR
manager may receive little assistance (and possibly face
considerable hindrance).
• However, with abundant and affordable new technology, user-
friendly software and lower costs, microcomputers have given
considerable independence to end users such as HR managers.
• Ideally, IT specialists and HR professionals should cooperate
to achieve the organisation’s strategic business objectives.
 RELATIONSHIP WITH OTHER
DEPARTMENTS
• HR department must be outwardly (not just inwardly)
focused if it is to receive the support it needs.
• the HRIS should generate reports which help line
managers to do their job.
• It must help increase sales and reduce costs — that is, help
the organisation generate profit — instead of servicing
only narrow HR interests.
• A HRIS can be a vehicle for the HR department to become
a strategic business partner (with HRIS at the core of
strategic planning).
 HRM AND THE INTERNET
• Innovations in employment: On-line recruitment
• Advances in employee relations
• HRIS systems
• Online training and development
• Shared services
• Innovation in compensation and benefits
• On-line research
• Access Electronic Databases
• E-Mail
• Network advertising
• Corporate promotion
• Posting of HR information like HR policies
 Summary
• A HRIS must generate information which is accurate,
timely and related to the achievement of the
organisation’s strategic business objectives.
• Analysing HRM needs is important because each
organisation will want to use its data in different ways.
• The importance of flexibility in system design and use
cannot be ignored.
• Because a computerised system must reflect changes in
HRM, the HR manager must ensure that it can adapt to
the organisation’s evolving needs.