What is a Human Resource Information System

1
What is a Human Resource Information System

• The application of computers to employee-related
  record keeping and reporting, and management
  decision making

2
Whats an HRIS?

• Any system that supports any aspect of the HR
  function
• Primary function
• Documenting the employment relation in all its
  complexity
• Basic technology
• Storing, retrieving and distributing information

3
Databases are central

• Consider the Top Ten Calculations for your
  HRIS
• Healthcare cost per employee
• Pay and benefits as a percentage of operating
  expense
• Cost per hire
• Return on training. . .
• Time to fill jobs
• All require database to get answers

4
Evolution of Information Systems

• Transaction Processing (e.g payroll)
• Management Information Systems (e.g. daily
  monthly absenteeism summary)
• Decision Support Systems (e.g. How many employees
  should we hire?)
• Expert Systems

5
An HR Example
Processing (Calc. Net pay)
Output (cut paycheck)
Input (hours worked)
Feedback Loop (Is paycheck accurate?)
6
Any Computer-based Info Systems (HRIS included)
Consists of...

• Hardware
• Software
• Databases
• Telecommunication
• Procedures
• People

7
Typical HRIS Record Keeping Requirements

• Employee information
• Wage and salary data
• Review dates
• Benefits
• Education and training
• Attendance
• Performance data/appraisal results

8
HRIS Tracks...
Recruit/ Selection
Medical Records
Employment Equity
Workers Compensation
Payroll
Health Safety
People
Benefits
Jobs
Positions
HR Planning
Employee Relations
Training and Development
Pension Admin
Compensation
9
Developing an HRIS System Development Life Cycle
(SDLC)
Planning
Analysis
Design
Implementation
Maintenance
10
Why HRISs Sometimes Fail

• Unclear goals/objectives
• System solves the wrong problem
• Improper vendor/product selection
• Low user involvement
• Planning overlooks impact on clerical procedures
• Lack of HR/functional expertise in designing
• Underestimate conversion effort

Management- unrealistic expectations Lack of
overall plan for record mgt. Lack of flexibility
and adaptability Misinterpret HR
specifications Poor communication between
HR/IS Inadequate testing
11
Why are Carefully Developed Info Systems
Important to HR?

• Better safety
• Better service
• Competitive Advantage
• Fewer Errors
• Greater Accuracy
• Higher Quality Products
• Improved Health Care
• Improved Communication
• Increased Efficiency

Increased Productivity More efficient
administration More opportunities Reduced labor
requirements Reduced costs Superior managerial
decision making Superior control
12
Developing an HRIS Planning and HRIS Development
Project
Planning
Analysis
Design
Implementation
Maintenance
13
HR Information Planning Steps

• Develop overall objectives
• Identify HRIS project(s)
• Set priorities and select projects
• Analyze resource requirements
• Set schedule and deadlines
• Develop the HRIS plan

14
Selecting an Investigation Team

• HR personnel
• IS personnel
• Users
• Consultants
• Top management

15
Developing an HRIS Analysis Phase
Planning
Analysis
Design
Implementation
Maintenance
16
Data Analysis

• Document Current Application Flows and
  Functionality
• Document Current Technical Architecture (if
  applicable)
• Conduct Needs Analysis/Business Requirements
  Definition

17
OBJECTIVES OF THE NEEDS ANALYSIS

• HR FUNCTIONS TO BE AUTOMATED
• WHICH FUNCTIONS ARE MOST (LEAST) CRITICAL?
• RELATIONSHIP OF HRIS TO OTHER SYSTEMS

18
Work Flow Analysis

• Map an obsolete HR functional flow (pick an
  application/area)
• Reengineer the flow so as to add value to the
  organization
• Review obsolete and original work flows to
  determine if anything is missing

19
Choosing a Consultant

• Why use consultants
• You could contract consultants if
• Your organization does not have the expertise
  required to do the job.
• There is a need for someone outside the
  organization to facilitate a process or project.
• Existing staff may be fully committed and unable
  to take on the work. e.g. needs analysis.

20
Developing an HRIS Design Phase
Planning
Analysis
Design
Implementation
Maintenance
21
Preliminary Design Tasks/Steps

• Finalize Functional Requirements
• Which functions will be adopted for new systems?
  (user sign-off)
• Finalize Technical Requirements/Architecture
• Select Hardware and System Software
• Application software evaluation selection
• Make vs. Buy

22
Preliminary Design Tasks/Steps
Acquire Hardware/Software Technical Design Design
interfaces Logical and Physical
Databases Messages and Screens Data
Security Reengineer Business Processes Migration
Plan
23
Developing an HRIS Design Phase
Design Phase
Detailed Design
Preliminary (Conceptual) Design
Implementation (Build, Test, Roll-out)
Implementation Phase
24
User Issues in Outsourcing

• Identifying what to outsource
• Gathering business information
• Conducting the feasibility study
• Developing the RFP
• Vendor selection
• Understanding pricing
• Setting service levels and measuring them
• Negotiation terms and conditions
• Managing the relationship

25
Make vs. Buy?
Advantages
Disadvantages
Packaged Systems
- Cheaper, cost spread across many buyers -
Quicker development Turnkey - Can easily
evaluate to determine if needs met -
Documented - Supported
- Unlikely to meet all of organizations
requirements - Low distinctiveness - Many
vendors/products to sort through - Lack of
control in any updates/changes
Custom Systems
- High Maintenance burning platform - Long
development timeline - Poorly documented/Brain
drain - Greater Staffing Reqs. (IS personnel)
- Greater control quickly adapt to changes -
Unique needs addressed - Distinctiveness High
26
RFP Request for Proposal

• Defines users goals and requirements
• Simplifies decision making process
• Saves time and facilitates comparisons of vendor
  responses
• Reduces potential errors

27
Writing the RFP

• Use the team approach
• Use outside consultants where applicable
• Give the vendors enough information as if selling
  a business(include financial data for
  outsourcing)
• Be comprehensive and concise
• Establish your evaluation criteria and state it
  in the RFP
• Give the vendors alternatives and push them into
  being creative, after all they are the experts
• Give the vendors enough time to respond,
  including time to tour your facilities, asset
  verification evaluation, etc.

28
Evaluating the RFP

• Develop the evaluation criteria before the
  closing date of the RFP
• Use a decision analysis tool
• Pricing is not the most important criteria
• Clarify vendor responses
• Develop a short list and bring the vendors in for
  a presentation
• Understand their culture, future direction,
  business objectives
• Establishing the right relationship is more
  important than short term cost savings

29
Technical Design Hardware Selection

• Select Software First
• Operating System and HW selection
• HW reliability and service reputation
• Manufacturer stability
• Expandability
• Cost

30
LAN/Client-Server Advantages

• Multiple users have can access/update records
  simultaneously
• Less dependence on IS Greater control by HR
  Employee self-service
• Better communication/sharing between individuals
  groups

31
Employee Life-Cycle
Additional Skills
Additional Education
Address Change
Education Skills
Applicant
Employee
Former Employee
Accession
Separation
Employee Status Change
Salary Adjustment
Retirement
Job Pending
Career Plan
Continuing Benefit
Benefits Change
Interview
Offer
Job Transfer
Job Reference
Offer
Classification Change
Physical Exam
32
HRIS Benefits Realized (versus Manual System)

• Save
• More efficient recruiting
• Better coordination of staffing resources
• Faster, more consistent screening of applicants
• Quicker, higher quality hiring decisions

33
HR Planning Summary

• Decision support systems, what if analyses
• Stimulate thinking about policies programs
• Data collection, analysis, and evaluation to
  summarize information
• Offers information, not interpretation or
  decision
• Used to
• identify gaps and surpluses
• evaluate policy compliance
• determine implications of implementing new
  programs