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Human Resource Information system UNIT:
Introduction: Data & Information needs for HR Manager; Sources of Data; Role of ITES in HRM; IT for HR Managers; Concept, Structure, & Mechanics of HRIS; Programming Dimensions & HR Manager with no technology background; Survey of software packages for Human Resource Information System including ERP Software such as SAP, Oracles Financials and Ramco‘s Marshal [only data input, output & screens];
Learning Objectives:
After reading this chapter, you should be able to understand The meaning and definition of HRIS The importance of HRIS Data and information needs for HR manager Sources of data Concept structure and mechanics of data Survey of software packages for HRIS Basic knowledge of ERP software such as SAP, Oracles Financials and Ramco‘s MArshal
Introduction
Many well-known examples of the use of information technology for competitive advantage involve systems that link an organization to suppliers, distribution channels, or customers. In general, these systems use information or processing capabilities in one organization to improve the performance of another or to improve relationships among organizations. Declining costs of capturing and using information have joined with increasing competitive pressures to spur numerous innovations in use of information to create value. The ideas do not constitute a procedure leading inexorably to competitive advantage. However, they have been of value when combined with an appreciation of the competitive dynamics of specific industries and a grasp of the power of information.
Results from "The Gap Between IT and Strategic HR in the UK",(June 2006) a study by talent management solutions company Taleo, show a significant disconnect between HR's strategic functions, including talent acquisition and workforce planning, and IT ability to support these business initiatives.
The survey of 100 senior HR managers, all in organizations employing more than a thousand people, found that only a quarter thought that strategic functions such as workforce planning, leadership development and performance management were well supported by their IT systems. Only a third felt confident in systems support for recruitment and employee progression. Other findings included:
Current technology systems were out-of-date. Over half the respondents (55%) felt that more sophisticated technology systems and processes were needed to support recruitment and development.
needed to support this strategy. The right HR technology is a critical element of any HR strategy moving forward."
Meaning and Definition of HRIS
Human Resources Information System, is a system that lets you keep track of all your employees and information about them. It is usually done in a database or, more often, in a series of inter-related databases.
These systems include the employee name and contact information and all or some of the following:
department, job title, grade, salary, salary history, position history, supervisor, training completed, special qualifications, ethnicity, date of birth, disabilities, veterans status, visa status, benefits selected, and more.
Any HRIS include reporting capabilities. Some systems track applicants before they become employees and some are interfaced to payroll or other financial systems. An HRIS is a management system designed specifically to provide managers with information to make HR decisions
You notice that this is not an HR system...it is a management system and is used specifically to support management decision making.
The need for this kind of information has increased in the last few years, especially in large and/or diverse companies, where decision making has been moved to lower levels
And large companies generally have the advantage when it comes to HRIS‘s...the cost to develop an HRIS for 200 people is usually close to that for 2000 people...so it is a better investment for large companies...larger companies tend to have systems that have a fair degree of customization
Therefore, HRIS can be defined in simple words as given below.
Human Resource Management Systems (HRMS, EHRMS), Human Resource Information Systems (HRIS), HR Technology or also called HR modules, shape an intersection in between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information
The pressure is on for proactive HR innovations that contribute directly to the bottom-line or improve employee morale and efficiency. Ajuwon (2002) points out that the typical HR professional gets involved with one step in many different flows of work. Very often the involvement of HR has no purpose except to validate the process in some way and acts as an interruption to the flow of work. In other words, the HR function is a 'gatekeeper for information that‘s been deemed too highly classified for the data owner.'
So HR is not actually making a measurable contribution - in fact, the opposite. HR involvement creates a queue or delay in the process. We should ask if the HR involvement is really necessary. Once upon a time the HR database had an 'all-or-nothing' quality - probably because it was paper-based. But now technology allows controlled access to various portions of the database. So an employee can safely amend his or her own address or bank account details, while the ability to change certain appraisal details might be confined to the line manager. In either case, there is no reason for HR to be involved. HR should move on from the role of intermediary.
Not surprisingly, the use of employee self-service systems for records, information, payroll and other functions is becoming increasingly common. Libraries of forms can be kept online to be downloaded as and when required. Systems can be enhanced to include streaming video and other new software providing wide access to corporate videos, training, etc. Obviously, e-mail announcements and newsletters can also be used to alert employees to new developments or urgent requests.
Ajuwon (2002) argues that HR should be proactive in the process and highlights three different perspectives for action:
- The process perspective - getting the fundamental building blocks (people processes) right and ensuring their relevance at all times. This demands close and detailed knowledge of HR processes and a commitment to improvement and efficiency. HR professionals need to understand their own objectives and the relationship with business strategy.
*** The event perspective** - a focus on providing a framework for knowledge management. In other words, capturing the experience and information available in that harnesses the organisation and making it available to individuals.
*** The cultural perspectiv** e - acknowledging that HR has a 'pivotal role in the proactive engagement of the entire organisation in a changing climate.
During the 1990s the business process re-engineering approach resulted in many organizations taking a 'root and branch' look at HR and other processes. Subsequent reorganizations may have produced fresh, streamlined processes but often they became inappropriate or inefficient as circumstances changed. It is not enough to design a corporate human resource strategy or acquire a piece of technology. There has to be some way of ensuring effective operational delivery. A more fluid, constantly changing methodology is required. Ajuwon contends that we have the means:
"It‘s more than innovating and/or streamlining your HR processes; or building an HR portal or introducing a culture change programme.
Basic system requirements
- Desktop PCs for accessing and inputting information locally. Standard browsers are used to access information (e.g. Netscape or Internet Explorer).
- Organization-wide server. In a small company this need be nothing more than a PC as well. The server must have an intranet server software package installed (Microsoft Internet Information Server, or Netscape Communications Server are examples.)
- Server-side software such as HTML, Java, Javascript, Perl.
- Intranet communications protocol running on both PCs and the server.
- Relational database/Information processing software for records, payroll, etc. If data is to be accessed then the procedure is made slightly more complicated with the need for CGI scripts and database server software on the server.
- Basic documents such as policy manuals typically loaded in HTML - but formats such as Adobe Acrobat PDF are also an alternative.
Cost-benefit analysis
Difficult to quantify because the greatest return is in improved morale.
Robert Musacchio, CIO with the American Medical Association in Chicago is quoted as having installed between 50-60 intranet applications for 1400 employees at $10,000 to $20,000 per application.
"Musacchio says a self-service employee-benefits site, which provides information on benefits and lets employees pick health-care, day-care, and retirement investment options, was built for "almost six figures." Musacchio figures it provided a 40% return on investment, based on the time saved by human resource managers who don't have to answer employees' questions about these topics because they're answered by the application".('Intranet ROI: Leap Of Faith',( Information Week Online , May 24 1999.)
Fletcher argues that businesses have to adopt a 'Human Capital Management' approach to make the most of any organization's greatest asset: the skills, knowledge and experience of its staff. She describes how, in the 1990s, most large businesses introduced 'Human Resources Information Systems' (HRIS) and that, in combination with re-engineering (the buzzword of the time), this enabled them to "replace antiquated, time-consuming personnel processes with automation."
Walker (Walker, A.J. 'Best Practices in HR Technology' in Web-Based Human Resources , McGraw Hill, 2001) states that if HR technology is to be considered successful, it must achieve the following objectives: It must provide the user with relevant information and data, answer questions, and inspire new insights and learning.
Efficiency and effectiveness
HRIS must be capable of changing the work performed by the Human Resources personnel by dramatically improving their level of service, allowing more time for work of higher value, and reducing their costs.
Analysts are struggling to make sense of intangibles, often falling back on a 'revenue per employee' metric which does not tell the whole story.
The HR Function
The business process should be re-engineering the HR function first, then E- engineering the HR work. He suggests the formation of re-engineering teams of providers, customers and users to examine the whole range of HR activities - including those which are not being done at present. The end product is a set of processes organized into broad groupings such as resourcing, compensation or training and development. These processes should then be examined by the re- engineering team and redesigned to:
Be better aligned with organizational goals. Streamlined so as to be cost-effective in comparison with the 'best in class'. Have a better integration with other processes.
From this redesign comes the picture of a new HR function. What next? The organization could be restructured and the tasks handed out existing or new staff. But Walker argues that the most effective approach is to introduce new technology to deal with the redesigned processes.
For HR to survive in this brave new world it needs to "possess a technology acumen like never before." A tall order, one suspects, for many die-hard personnel traditionalists. But if they do not demonstrate the ability to recommend appropriate technology and control automated HR processes, organizations will use other people for these tasks some replacements for 'traditional' HR executives may have no direct experience of human resource management at all. Instead, they may have "led a line of business and have had
P&L responsibility, understand what it means to be accountable for delivering business results."
Walker (Walker, A.J. 'Best Practices in HR Technology' in Web-Based Human Resources , McGraw Hill, 2001) discusses a range of technologies available for re-engineered HR processes, contending that they are all capable of dealing with HR activities in a secure and confidential manner.
- Workflow. Walker describes this as being like e-mail with a database and built-in intelligence.' Essentially, a user accesses a range of employee records (perhaps their own) through a computer terminal, keys in data such as a change of address and submits the data electronically to the next person in the chain. The system is configured so that only certain individuals are authorized for a specific range of access or actions. The workflow chain is organized to ensure that the most suitable person approves an action. For example, a bonus payment would be authorized by a line manager's own manager. Also, the system can be structured so that bonuses over a certain level can be monitored by a HR specialist. The paths and actions are all specified in accordance with company rules.
- Manager self-service. Managers can have access to 'front-end' applications on their desk tops in the form of HR portals. Typically, they are able to view a range of personal details and aggregate information. They are also allowed to change and input certain details and model the consequences on their budgets of salary increases or bonus payments. More generally, policy manuals, plans and strategies can be made available. Walker highlight the facility to 'push'
handled by basic technology. However, they do use recognisable Call Centre techniques such as scripted protocols. The Agent can enter keywords or a question into a knowledge database and bring up relevant information with which to answer the caller's query. If that query is not covered by information in the knowledge database it can be referred to a supervisor using workflow.
HR service centres also have a fax, e-mail and postal facility to send information, confirmations, follow-up queries and printed brochures to users. They are also monitored in the same way as conventional Call Centres and can generate useful statistics on types and frequency of enquiries. Walker contends that most reports show that organizations find HR service centres to be highly cost-effective and provider faster and more consistent answers than traditional HR departments.
- Human Resource Information Systems (HRIS) and databases. According to Walker (2001):
"The HRIS system is the primary transaction processor, editor, record-keeper, and functional application system which lies at the heart of all computerized HR work.It mains employee, organizational and HR plan data sufficient to support most, if not all, of the HR functions depending on the modules installed.
It will also supply information to other systems and generate reports.
- Stand-alone HR systems. A massive choice of applications available from commercial vendors which can be linked to a HRIS. They include online application forms, tests, appraisal databases, 360-degree performance assessments and so on.
- Data-Marts and Data-Warehouses. Sources of information, usually held as relational databases which can be interrogated. Data-Marts normally hold data from single sources, such as HR; Data-Warehouses amass information from multiple sources.
DATA AND INFORMATION NEEDS FOR HR MANAGER
Collect Data
Assess the mission, vision, strategy, and culture of the organization, from whatever written material there is in the company (check with the department or person who handles public, customer, or shareholder relations).
Collect existing data such as:
Hiring statistics (acceptance rate, hiring rate, hiring projections) Turnover Compensation and benefits philosophy and practice Exit interview summaries Employee complaints (discrimination, harassment, safety, other) Promotion and advancement practices and trends Human Resources budget and expenditures
Where possible, compare the data collected with market data. This information will provide you with a point of view for the next phase of the audit: the interviews. If, during the interview, discrepancies arise between the data and the interviewee's answer, ONE can explore the reasons for the discrepancy(s).
Summarize the Results
Consolidate the information you collected. Compare the results with market surveys. Determine which practices are good/popular/effective/competitive. Determine which practices need improvement. Recommend specific improvements referring to the results of both the Effectiveness audit and the Regulatory compliance audit. Justify the recommendations. Determine how to measure whether the improvements are successful.
Obtain Approval from senior Management
Present the preliminary results and recommendations to senior management individually. Point out how these recommendations will support their needs. Obtain their support, and then present the final results and recommendations to the senior management staff for final approval.
Implement the Program
Consider implementing the program in part of the organization as a pilot program. Monitor and measure success and seek to continuously improve processes. Be prepared to modify the program if an organizational change requires it.
SOURCES OF DATA
Absence of sufficient qualification required for the job puts extra efforts on the HR department or the colleagues to train the new appointees. Many companies do take the pain of training new recruits by conducting induction training and other regular workshops. However, the best training one can get is on the job. Some companies give so much importance to the 'training' part that it turns out to be the best company for new comers to learn. A good training schedule is important, but simultaneously, all other HR concerns are equally important. Companies should learn to not just appoint and train people, but retain them through smart ways.
Recruitment source:
DQ Channels asked members of the solutions provider community to rank the best sources of recruitment. The best recruitment sources according to majority of the respondents were 'Referrals'. Yes, referrals or word-of-mouth is no doubt the best source of recruitment. This also saves a lot of time energy spent in testing a new candidate's caliber. "There is an element of trust involved. When a person is sent to us by a person known to us and who knows our requirement, he or she is the best we can get," said one HR manager.
The next best source for recruitment is consulting agencies, job sites and print advertisements in that order. Surprisingly, very few responded with 'Campus recruitment' as an alternative source for getting people
ITES IN HUMAN RESOURCE MANAGEMENT:
