Final Project of MIS 123

7/31/2019 Final Project of MIS 123

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Introduction

Human Resource Management ("HRM") is a way of management that links people-related

activities to the strategy of a business or organization. HRM is often referred to as "strategic

HRM".

The human resources of an organization consist of all people who perform its activities.

Human resource management (HRM) is concerned with the personnel policies and managerial

practices and systems that influence the workforce. In broader terms, all decisions that affect the

workforce of the organization concern the HRM function.

The activities involved in HRM function are pervasive throughout the organization. Line

managers, typically spend more than 50 percent of their time for human resource activities such

hiring, evaluating, disciplining, and scheduling employees. Human resource management

specialists in the HRM department help organizations with all activities related to staffing and

maintaining an effective workforce. Major HRM responsibilities include work design and job

analysis, training and development, recruiting, compensation, team-building, performance

management and appraisal, worker health and safety issues, as well as identifying or developing

valid methods for selecting staff. HRM department provides the tools, data and processes that are

used by line managers in their human resource management component of their job.

Human Resources is the function within an organization that focuses on recruitment of,

management of, and providing direction for the people who work in the organization. Human

Resource Management can also be performed by line managers and is the organizational

function that deals with issues related to people such as compensation, hiring, performance

management, organization development, safety, wellness, benefits, employee motivation,

communication, administration, and training.

WHAT IS THE FOCUS OF HRM DEPARTMENT?

The HRM focus should always be maintaining and, ideally, expanding the customer base while

maintaining, and ideally, maximizing profit. HRM has a whole lot to do with this focus

regardless of the size of the business, or the products or services you are trying to sell. (Dr.

James Spina, former head of Executive Development at the Tribune Company). HRM is

involved in managing the human resources with a focus on expanding customer base that gives

profit to the company. The bottom line of the company is the focus of the HRM department as

well as the function.


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Objectives & Activities

Efficient and effective Human Resource management is a challenge to all HR professionals.

Staffing, training and helping to manage people so that the organization is likely to increase theperformance level is imperative to work in a productive manner. Normally, human resource

functions are tracking data points on each employee. These might include experiences,

capabilities, skills, data, personal histories and payroll records. In the most general sense

businesses carry out different activities dealing with managing their approaches to employee

benefits and compensation, as well as employee records and personnel policies.

Among the core HR activities there are payroll, time and labour management, benefit

administration and HR management. These activities correlate with the HR objectives which are

largely the responsibility of Human Resources.

The foremost objectives of Personnel services are an efficient and effective personnel and

payroll system responsive to staff needs together with the flexible remuneration system.

None the less important HR objective is the industrial relations services implying establishing

effective relationships between the employer and the staff. Complete and comprehensive policy

framework should be established for risk management, safety and health issues. Staff should be

well informed about safety and health issues in the workplace. What is required to gain this

objective is the staff's participation in a wide range of training and awareness programs in the

area of safety and health. Staff development objective can be realized through different skills

development courses designed to encourage further skills development necessary to carry out

their responsibilities.

Some organizations consider equity and diversity services as their objective and provide

information about the procedures for sexual harassment, racial harassment and equity grievances,

thus making the staff well aware of the policies. The initiatives include awareness programs in

relation to equity and diversity. In the long run it leads to an increase in the number of staff who

have attended the training sessions and know the issues.

Human Resource services provision is closely connected with strategic policies, planning and

coordination of an organization. A wide range of human resource strategies aimed at more

flexible planning can include improved links between performance and remuneration, improved

performance measurement procedures for all staff, improved recruitment and retention strategies,

and encouragement of skills development. One more objective results in consultancy support

provided on the basis of improved information about both the employer and HR staff needs and

working requirements.


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HR objectives stimulate the development of people to be their best in order to meet the needs of

an organization. A successful performance management system including department, team and

individual business objectives, personal development plans, performance appraisal, career

planning, etc., aims at enhancing the personnel's commitment to developing the business long-

term and can give challenges which will enhance the staff personal growth. Moreover, if an

organization can assess the workforce changes needed by business, implement the necessary

optimization and measure the results using up-to-date technology systems, it will get data having

a critical role in monitoring and controlling overall performance.

HRM Goals:

- To meet the needs of the business and management (rather than just serve the interests of

employees);

- To link human resource strategies / policies to the business goals and objectives;

- To find ways for human resources to "add value" to a business;

- To help a business gain the commitment of employees to its values, goals and objectives

HR Cycle

There are seven stages in every organizations human resource development cycle:

1.business needs,

2. job competencies,

3.the hiring process,4. learning and development,

5. performance assessment,

6. continued learning and training,

7. total rewards.


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The Human Resource Development Cycle

Stage 1

Hr Planning

To understand business needs and HR needs through customer satisfaction surveys, employee

opinion surveys, exit surveys, customized diagnostic tools, a turnaround times benchmarking

survey, investment operations survey, economic survey,

industry survey etc.

Stage 2

Job Description

Linking your employees job skills, abilities and knowledge with your organizations strategic

goals and business plans/ audit your organizations core competencies and competency models/

Core Competencies Matrix review, a job-specific competencies review (i.e., customer service

representative, customer service supervisor), and a job group-specific competencies review (i.e.,entry level, associate level, senior associate, leadership level).

Build and implement effective competency models that are linked to your organizations

strategic goals and business plans.

Stage 3

Recruitment & Selection

Developing a competency-based and industry-validated hiring/staffing process for various

positions, whether its administrative, customer service/call center, technical/professional, or

management.

Stage 4

Induction

Learning and professional development programs help employees address critical areas of

business operation.

Stage5

Performance Appraisals

These include Performance Management, Development Resource Advisor, a Multi-Rater system,

a Talent Management system, Interview Management system etc etc.

Stage 6

Continued Training and development

As an invaluable partner in your organizations success, continued learning and development can

help employees stay up-to-date on the latest industry trends, emerging technologies and best


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practices.

Stage 7

Couching & Counseling

Organization stay competitive in terms of job salaries, compensation,

benefits, non financial rewards etc.


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AHuman Resource Management System (HRMS) or Human Resource

Information System (HRIS)

Refers to the systems and processes at the intersection 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 technology field, whereas the programming of dataprocessing systems evolved into standardized routines and packages of enterprise resourceplanning (ERP) software. On the whole, these ERP systems have their origin on software that

integrates information from different applications into one universal database. The linkage of its

financial and human resource modules through one database is the most important distinction tothe individually and proprietary developed predecessors, which makes this software application

both rigid and flexible.

Purpose

The function of Human Resources departments is generally administrative and common to all

organizations. Organizations may have formalized selection, evaluation, and payroll processes.Efficient and effective management of "Human Capital" progressed to an increasingly imperative

and complex process. The HR function consists of tracking existing employee data whichtraditionally includes personal histories, skills, capabilities, accomplishments and salary. To

reduce the manual workload of these administrative activities, organizations began to

electronically automate many of these processes by introducing specialized Human ResourceManagement Systems. HR executives rely on internal or external IT professionals to develop and

maintain an integrated HRMS. Before the clientserver architecture evolved in the late 1980s,

many HR automation processes were relegated to mainframe computers that could handle large

amounts of data transactions. In consequence of the high capital investment necessary to buy orprogram proprietary software, these internally-developed HRMS were limited to organizations

that possessed a large amount of capital. The advent of clientserver, Application ServiceProvider, and Software as a Service SaaS or Human Resource Management Systems enabledincreasingly higher administrative control of such systems. Currently Human Resource

Management Systems encompass:

1. Payroll2. Work Time3. Performance Appraisal4. Benefits Administration5. HR management Information system6. Recruiting/Learning Management7. Training System8. Employee Self-Service

The payroll module automates the pay process by gathering data on employee time andattendance, calculating various deductions and taxes, and generating periodic pay cheques and

employee tax reports. Data is generally fed from the human resources and time keeping modules

to calculate automatic deposit and manual cheque writing capabilities. This module can
http://en.wikipedia.org/wiki/SaaShttp://en.wikipedia.org/wiki/SaaS


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encompass all employee-related transactions as well as integrate with existing financial

management systems.

The work time module gathers standardized time and work related efforts. The most advanced

modules provide broad flexibility in data collection methods, labor distribution capabilities and

data analysis features. Cost analysis and efficiency metrics are the primary functions.

Performance appraisal is an important way to ensure that the organization implements a

comprehensible feedback process for its employees in order to promote personal and

organizational future development. Most high-performing organizations have procedures in place

to offer structured response of all employees on a regular basis as a means of capturing theeffectiveness of individual performance. Revision of employee performance will help the

organization to get involved in this crucial process of managing employees more fairly and

effectively.

The benefits administration module provides a system for organizations to administer and

track employee participation in benefits programs. These typically encompass insurance,

compensation, profit sharing and retirement.

The HR management module is a component covering many other HR aspects from application

to retirement. The system records basic demographic and address data, selection, training anddevelopment, capabilities and skills management, compensation planning records and other

related activities. Leading edge systems provide the ability to "read" applications and enter

relevant data to applicable database fields, notify employers and provide position management

and position control. Human resource management function involves the recruitment, placement,evaluation, compensation and development of the employees of an organization. Initially,

businesses used computer based information systems to:


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produce pay checks and payroll reports; maintain personnel records; pursue Talent Management.Online recruiting has become one of the primary methods employed by HR departments to

garner potential candidates for available positions within an organization. Talent Managementsystems typically encompass:

analyzing personnel usage within an organization; identifying potential applicants; recruiting through company-facing listings; recruiting through online recruiting sites or publications that market to both recruiters and

applicants.

The significant cost incurred in maintaining an organized recruitment effort, cross-posting within

and across general or industry-specific job boards and maintaining a competitive exposure of

availabilities has given rise to the development of a dedicated Applicant Tracking System, or'ATS', module.

The training module provides a system for organizations to administer and track employeetraining and development efforts. The system, normally called a Learning Management System if

a stand alone product, allows HR to track education, qualifications and skills of the employees,

as well as outlining what training courses, books, CDs, web based learning or materials are


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available to develop which skills. Courses can then be offered in date specific sessions, with

delegates and training resources being mapped and managed within the same system.Sophisticated LMS allow managers to approve training, budgets and calendars alongside

performance management and appraisal metrics.

The Employee Self-Service module allows employees to query HR related data and perform

some HR transactions over the system. Employees may query their attendance record from the

system without asking the information from HR personnel. The module also lets supervisors

approve O.T. requests from their subordinates through the system without overloading the taskon HR department.

Many organizations have gone beyond the traditional functions and developed human resourcemanagement information systems, which support recruitment, selection; hiring, job placement,

performance appraisals, employee benefit analysis, health, safety and security, while others

integrate an outsourced Applicant Tracking System that encompasses a subset of the above.

Assigning Responsibilities Communication between the Employees.


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KEWhat is an ERP?

Enterprise resource planning is a term derived from material resource planning. ERP systems

typically handle the manufacturing, logistics, and distribution, inventory, shipping, invoicing,

and accounting for a company. ERP software can aid in the control of many business activities

like sales, delivery, billing, production, inventory management and human resources

management.

ERPs are often called back-office systems indicating that customers and the general public are

not directly involved. ERPs are cross-functional and enterprise wide. All functional departments

that are involved in operations or production are integrated in one system. In addition to

manufacturing, warehousing and shipping, this would include accounting, HR, marketing and

strategic management.

How to Implement an ERP system in an organization?

1. Managing the change to a new way of working

The first challenge to implement an ERP in an organization is to define a structured approach

and governance model to help us manage change on an extremely large and complex project.

Several number of people would be working in the project teams over several years. Each wave

is to roll out from a regional hub, a campus-style base for the regional teams. These teams are

made up of people from the relevant factories and markets. The business is already stretched, but

it is essential that the markets provide enough members to ensure the local business environment

is well understood.

The global change management team isbuilt on a concept of key stewards, with clearly

defined responsibilities. In each wave, a transformation steward led the change management

activity, working alongside a training steward and a communications steward (see Figure 1,

right). The training steward is supported by a number of trainers. The stewards brings not only

business expertise but also valuable local knowledge and contacts, and each is a person of

standing in the regional markets.

Each transformation and training steward is brought on board during an initial two-day

workshop. These workshops clearly defines the roles and responsibilities of all involved thechannels for communication within the change management structure, knowledge transfer and

the feedback mechanism. The structure which is implemented is effective and remaines the same

for all three waves. The personnel in the global change management team remaines in place

throughout the project. Their role is to define the scope of the change management, set out a

clear methodology, provide the tools to be used and guide the regional teams.


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Figure1


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2. Defining the global organizations new structure

Usually in the Organization, the businesses raise the question of what the changes would be. It is

role of the training team to define precisely the areas of change. The starting point for this is a

master list of new processes, drawn up by process experts working with functional experts. The

team has to define and extract the key change areas including the introduction of a ProfessionalPurchasing Organization (PPO); introduction of a global chart of accounts; and a new way of

processing sales and delivery.

The next step is to enable the markets and factories to understand and prepare for these changes.

The team has to develop a spreadsheet-based impact assessment tool which allows each location

to analyze how the changes would affect their operations and organization. Each

market/factory/function is asked to review the key changes and determine whether they would

apply to their local entity. If yes, then they needed to determine the impact of these changes in

terms of operations and organization (structure, roles and responsibilities, span of control,

decision making, and reporting lines). Through the template teams are required to documentchanges in terms of:

How the targeted activities are currently processed.

How they will be process in future, what the expected benefits are, and what actions are

required to ensure the implementation of the new way of working, by when and who is in charge.

Mapping the ERP roles to existing jobs

The challenge is to fit the roles to jobs in the business and then to people. The goal of the team is

to ensure that they would have the right people in the right place at the right time.

The Team has to embark on intensive workshops to map the ERP roles to jobs in the local

organization. The workshops bring together functional and business experts, HR, process owners

and system security experts in order to ensure the new roles are correctly mapped to jobs in the

business. These workshops are held during each wave and lasted between two and three weeks.

There is a major communication event and an important step in bringing the project to the

business.

3. Caring for the project teams

The regional teams should be highly effective. They are given support in two areas: the

information and the skills to act in the right way; and the personal and emotional support to work

effectively. It is vital to meet their personal needs in terms of employment conditions,

motivation, career management and the emotional disruption of being away from home and

family.


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Personal and career needs

People from different countries are assigned to the project and have differing employment

conditions. Guidelines are drawn up to ensure each persons financial situation is protected, with

their net income remaining the same as if they are working in their home location. Career

management is also an issue. What jobs would people go back to after the project is completed?Regional team members are assigned for, on average, eight months. Many, but not all, have jobs

to go back to. This is not true of most of the global team members, who served around two-and-

a-half years on the project and had matured professionally. The challenge is finding them new

roles. Once the project is closed, all team members, bar those who wishes to further their careers

elsewhere, were re-integrated to the business. The process needs to start early, and that it can

only be done with strong executive management support and a proactive HR effort.

4. Helping people in the business embrace change

As well as caring for the training teams, it is needed to ensure that people in the business areopen to change; a role is shared with the communication team. Its belief is that people dont fear

change, but uncertainty. Communication is paramount in helping employees deal with the

emotional and organizational change. The Team should give importance on communication that

it is embodied in the governance model, as detailed in Figure 1. There should be huge and

complex communication effort, the project should gain a very strong identity and expectations

should be well managed.

As a further step, the team should draw up a set of guiding principles for local HR functions to

assist them in helping affected employees to deal with change. It is important to give employees

emotional support, allowing them to mourn the passing of the old ways. Principles included:

Managing legal and contractual issues (e.g., through a Works Council).

Timely communication of the project impact (e.g., department or position changes) to staff.

When possible, timely communication of new opportunities to impacted staff.

Provide outsourcing support when needed.

5. Knowledge transfer and training for end-users

Training is provided for almost all the new end-users. The team should use Train the Trainer

concept, which is well known and proved effective.

Using this approach, the knowledge is kept in the company and continuous support is available

to end- users. Trainers performed another vital role in adapting the training materials to local

needs. ERP knowledge is passed on through informal channels as well as training courses. The


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project started out with external consultants, but the team should plan to transfer knowledge via

informal coaching.

Fine-tuning the new organization

Six months after rollout, every market and factory is asked to report on its progress to date. Theteam should ask them particularly whether there are any impediments to implementation, about

outstanding activities and for their comments in general.

The company should improve the processes or adding new ones in response to business needs.

This will be achieved by aligning to meet customer needs, providing stewardship and

governance, leveraging knowledge, and acting globally, cross-functionally and seamlessly. The

staff within the CoE are functional experts from the business as well as former ERP project team

members.


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5 Top HR Modules for ERP Systems

A growing number of businesses are adopting ERP (enterprise resource planning) systems in

order to give their departments accurate and accessible shared data. HR isn't being left out of the

loop. In fact, most major ERP vendors now offer their customers HR modules that

help automate an array of tasks while generating crucial data for enterprise planning andoptimization. Here's a look at five top solutions, based on features and usability:

1. Infor HCM (Human Capital Management):

Designed for use with Infor's ERP, Infor HCM is a Web-enabled offering that brings a variety of

capabilities to the tableperhaps even more features than the average business needs. The

module has support for multiple languages, currencies, tax definitions, benefits,

security configurations and platforms. It consists of three basic components:

Resource Management: Features here include benefits administration, payroll, FSAs (flexible

spending accounts) and compensation.

Work-Force Management: This component aims to help HR departments cost-effectively handle

complex work-force management challenges. It includes scheduling, time and attendance,

absence handling and performance support.

Talent Management: This part of the module provides work-force development capabilities that

are focused on recruitment, learning, employee performance and competency

management. Succession-planning capabilities are also provided.

Verdict: This is a well-rounded, highly capable module that's suitable for just about any business.

Infor HCM takes advantage of Web technology to provide an ERP HR module that can be

instantly updated and easily scaled.

2. Sage Accpac HRMS (Human Resource Management System):

As a part of Sage Software Inc.'s Sage Pro ERP, Sage Accpac HRMS provides support for a

variety of HR tasks, including benefits, training, recruiting and compliance. The module offers a

flexible design that lets users select their own database platform, including SQL or MSDE

(Microsoft Desktop Engine).

Sage Accpac HRMS also includes powerful reporting and analysis tools that provide customized

insight on almost any HR issue. Hundreds of standard report templates are included. An

integrated database is designed to feed a steady flow of information to managers and staff.

Verdict: This solution is a good choice that gives users a voice in its design and operation. Its


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tailored for midsize manufacturing businesses.

3. SAP ERP HCM:

SAP AG's highly regarded ERP offers SAP ERP HCM, a versatile and extremely scalable HR

module. The solution is designed to give companies in virtually all industries a full selection ofHR tools.

The software can automate virtually all fundamental, and most advanced, HR processes,

including employee administration, payroll and reporting. The product supports compliance with

both global and local regulations. Other features include talent management, performance

measurements and real-time insight into just about any HR trend.

Verdict: SAP ERP Human Capital Management sets a goal to which other ERP HR module

vendors can only aspire. On the other hand, the product is overkill for most SMBs (small- to

medium-sized businesses). In any event, it's truly the Rolls-Royce of ERP HR modules.

4. Oracle HRMS:

Oracle Corp.'s HRMS is designed to automate practically every HR-department function. The

company described its mission as, "The complete recruit-to-retire process." A single integrated

data model aims to supply a fast, immediate and accurate view of HR-related activities, including

recruiting, payroll, benefits, performance management, learning, compensation, time

management and real-time analytics.

Oracle's HR product is comparable in many ways to SAP's module in scope and breadth,although Oracle advocates would claim that their favorite software is more flexible and easier to

use.

Verdict: Oracle HRMS is thorough and highly capable, but not suitable for smaller businesses.

5. Microsoft Axapta Human Resource Management III:

Compatible with the Microsoft Dynamics AX ERP and building on HR support provided by

Axapta versions I and II, this module supplies features that support the career development of

individual employeesa capability overlooked by many other HR modules.

Verdict: The software aims to help businesses create professional development plans focused on

employee's goals and skills. Features include a "competence framework" with a development

process that incorporates personal interviews, training curriculums, skills matching, skill-gap

analysis and other components. The software's various processes are collaborative and allow

follow-up from employees and managers to improve dialogue between the two groups.

Final Project of MIS 123

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