Introduction to Introduction to HRISHRIS

Chapters 1-3Chapters 1-3

What is the Most What is the Most Important Asset An Important Asset An Organization Has?Organization Has?

Land? Capital? Technology? Your people, and their ability to provide

goods and services to customers, both internal and external.

Role of Human ResourcesRole of Human Resources

“To attract, motivate, and retain valuable employees to meet the company’s goals.”

HRIS is meant to support this role.

Human Resource Human Resource Information Systems Information Systems (HRIS)(HRIS)

“The system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information regarding an organization’s human resources.”

“ The electronic management of human resources information.”

Major HR FunctionsMajor HR Functions Planning, Organizational Design Staffing/Employment Communications & Public Relations Performance Management Reward Systems, Benefits, Compliance Employee & Organizational Training &

Development Quality of Work Life

HRIS Sample ModulesHRIS Sample Modules Job Analysis HR Planning (supply &

demand forecasting) Recruiting & Selection Training &

Development Time & Attendance Payroll Compensation and

Benefits

Performance Appraisal

Employee/Labor Relations

Employee/ Performance Problems

Employee Assistance Equity Programs Retirement/Pensions

Applications for the HRISApplications for the HRIS Employee lists Attrition

reporting/monitoring Employment equity

(EEO) tracking/ monitoring

Salary/benefits budget reporting

HR/strategic planning

Salary/benefits modeling

Seniority lists Applicant tracking Grievance tracking

and analysis Workers comp, LTD

tracking HRMS reports

HRIS Enhances ProductivityHRIS Enhances Productivity Increases work force quality

– More appropriate hiring, better T&D, improved retention of desired employees

Controls expenses– More thorough salary/benefits

administration tracking & analysis, training & development, ad hoc reports for queries, more user independence

Eases regulatory compliance– EEO, COBRA, OSHA

HRIS CostsHRIS Costs1994 Avg

Budget-all res-pondents

25K ormoreemploy-ees

24K-5Kemploy-ees

5K-1Kemploy-ees

999 orlessemploy-ees

HRIShardware

541,000 1,657,000 385,000 171,000 60,000

HRISsoftware

318,000 1,645,000 145,000 121,000 55,000

PayrollServices

832,000 3,285,000 220,000 125,000 44,000

HRISconsult’g

184,000 401,000 141,000 105,000 16,000

http://ruby.fgcu.edu/courses/mrenard/teaching/websites.htm

Systems Model of Org’l Systems Model of Org’l FunctioningFunctioning

External EnvironmentGvt, Technology, Labor Mkt, Societal Concerns, Competition, HR State of Art

Org’l Org’l GoalsGoals

ProductivityServicesProfitROIMorale

HR Mgt SystemHR Mgt System

HR FunctionsHR Functions

HRISHRIS

Strategic Mgt System

Feedback

History of HR FieldHistory of HR Field Pre-World War II

– Reactive, caretaker activity; not part of main-stream; record keeping, caretaker of employees

Postwar: 1945-1960– Employee morale; personnel part of costs; R&D in

selection; payroll automation; early applications of mainframe computers in defense

Social issues era: 1963-1980– Legislation changes HR; increased reporting

requirements; advance of MIS; HR in mainstream

History of HR Field, cont’dHistory of HR Field, cont’d Cost effectiveness era: 1980’s

– HR must cost justify activities; increased regulation and paperwork; microcomputer and software explosion; HRIS capabilities lower in cost; HR part of strategy process; increased emphasis on R&D for HR.

Quality and reengineering era: 1990’s– Information is the resource of the 90’s;

technology is the catalyst/enabler of change.

Technology as a Catalyst Technology as a Catalyst or Enableror Enabler Old rule: “Information can appear

at only one place at a time” Disruptive technology: Shared

databases New rule: “information can appear

in as many places as it is needed”

The New Technology 2The New Technology 2

Old rule: “Only experts can perform complex work”

Disruptive technology: Expert systems

New rule: “A generalist can do the work of an expert”

The New Technology 3The New Technology 3

Old rule: “Managers make all the decisions”

Disruptive technology: Decision support systems

New rule: “Decision making is part of everyone’s job”

The New Technology 4The New Technology 4

Old rule: “Field personnel need offices where they can receive, store, retrieve, and transmit information”

Disruptive technology: Wireless data communication and portable computers

New rule: “Field personnel can send and receive information from wherever they are”

The New Technology 5The New Technology 5

Old rule: “The best contact with a potential buyer is personal contact”

Disruptive technology: Interactive videodisks

New rule: “The best contact with a potential buyer is effective contact”

The New Technology 6The New Technology 6

Old rule: “You have to find out where things are”

Disruptive technology: Automatic identification and tracking technology

New rule: “Things tell you where they are”

Importance of HRISImportance of HRIS Personnel -- largest part of organizations'

operating costs Costs can range upwards of 80% to 90% of

total operating budgets Personnel also among most difficult

resources to manage HRIS required to collect info, manage it,

and report Access to information increasingly

important for decision-making HRIS becoming important strategic tool

Cost-JustificationCost-JustificationCost-justifying the purchase and implementation of HRIS is one of the most pressing challenges facing many HR Departments

”HR has to earn its keep. If you can't specify exactly how you contribute to the bottom line, you'll have increasingly few resources available. Not only does the HRMS have to generate a significant return, but also, customers need to understand exactly how it's accomplishing that return (Stright, 1993, p. 70)".

Human Resources Often Human Resources Often Undervalued & Undervalued & MisunderstoodMisunderstood

HR practitioners have not been very effective at justifying what they do in a way that other managers readily understand.

HR practitioners are not used to cost-justifying what they do

HR Department often considered a“necessary liability”, not a corporate asset.

Cost-Benefit Cost-Benefit AnalysisAnalysis

Outlined in detail in books by Casio and Fitz-Enz

Not commonly known or used by HR practitioners, although this is changing

Applies to organizations of all sizes

ExamplesExamples

Closer control of salary and benefits costs

Streamlining HR administrative overhead

Input into labor negotiations More effective use of personnel in

support of corporate goals and objectives