HO 343 -- Session 15: Integrated HRIS Development

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HO 343 -- Session 15Integrated HRIS Development
EK BUNCHUA ek_at_alpha.tu.ac.th Room
528 Thammasat Business School
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Todays Lecture
1. Recap HRIS Concepts 2. HRIS Database 3.
Internal Records 4. HR Intelligence 5. HR
Research 6. HR DSS 7. Functional ISs Integration
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1. Recap HRIS Concepts
HRIS

• HRIS Definitions
• HRIS Challenges
• Purposes of HRIS
• A Model of HRIS
• HRIS Subsystems
• HRIS Applications Structure

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Human ResourceInformation System
... an integrated system designed to provide
information used in HR decision making.
(Mathis Jackson)
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Human ResourceInformation System

• ... a system for
• gathering and maintaining the data that describes
  the HR,
• transforming the data into information, and
• reporting the information to users.

(McLeod)
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HRIS Challenges

• Other departments, managers, employees are the
  main customers of the HR services
• HRIS must be integrated with other functional
  information systems, and must be linked across
  the organizational hierarchy to enable the free
  flow of information

Vertical integration
Horizontal integration
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Purposes of HRIS

• To improve the efficiency with which data on
  employees and HR activities is compiled
• To provide HR information more rapidly and more
  easily for use by management in making decisions

(Mathis Jackson)
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A Model of HRIS
(Adapted from McLeod)
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HRIS Applications Structure

• Stand-alone HRIS structure
• Each application (subsystem) of HR operates
  independently of each other
• Core HRIS structure
• The applications function as a unit
• Sharing a common database
• The outputs of one system provide the inputs for
  another

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2. HRIS Database

• Uses of HRIS Database
• Steps in Developing HRIS Database

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Uses of HRIS Database

• Operational
• day-to-day support of the business
• Analytical
• analysis of historic and transaction data
• to create or adjust HRM strategies, as well as
  other business strategies

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Steps in Developing HRIS Database

• 1. Define the database functions
• What functions do I want this database to
  perform?
• Operational or Analytical?
• Issues
• Quick response time and easy access?
• Technical problem
• Data analysis capabilities
• IT people tend to focus on the operational of
  systems

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Steps in Developing HRIS Database

• 2. Define the information requirements
• There are two approaches
• (1) Only a small amount of the employee data
  captured will be used to make decisions
• Identify and capture only key information
• (2) Capture as much information as possible and
  start looking for trends within the data
• Data-mining approach
• Create a large data warehouse which is used to
  identify the meaningful trends

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Steps in Developing HRIS Database

• Which approach to be determined?
• Answer the following questions
• Have we prioritized the information required?
• Is the information consistent with our HRM
  strategy?
• How easily can the information be updated?
• What are the costs and benefits associated with
  gathering information?
• Should the database include prospective employees?

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Steps in Developing HRIS Database

• 3. Identify the information sources
• Internal sources v.s. External sources
• Issues
• How the information will be acquired and updated
  on an ongoing basis?
• Existing employees v.s. potential employees
• Reliability

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Steps in Developing HRIS Database

• 4. Select the database technology and hardware
  platform
• Depends on the intended uses of the database
• Relational database is the preferred solution for
  the vast majority of applications
• The selection of hardware platform will depend on
  the size of the database, and the number and
  location of potential users.

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Steps in Developing HRIS Database

• 5. Build applications to access and process
  information
• Specify application requirements
• Element of the design
• Data flow
• Data store
• Processes
• Procedures
• Controls
• Roles

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Steps in Developing HRIS Database

• 6. Populate the database
• Major task when developing HRIS database
• Poor-quality data is the primary reason for most
  of HRIS failures
• Issues
• Much of the required information is already held
  in paper or electronic format
• Numbers of different locations where the data can
  be found
• Time consuming, require considerable resources

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Steps in Developing HRIS Database

• 7. Maintain the database
• Ongoing maintenance activity is required to keep
  the information in the database up to date

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3. Internal Records System

• Establishment of Internal Records
• Personnel Data Elements
• Accounting Data Elements

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Establishment of Internal Records

• Current employee-related data
• Confidential data
• reference letters
• promotability assessments
• financial items
• medical benefits
• Historical data

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Personnel Data Elements

• Non-financial in nature
• Relatively permanent
• Be created by HR at the time of employment
• Be kept current as long as the employees work for
  the firm
• Examples
• employee name, sex, date of birth, education,
  number of dependents, etc.

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Accounting Data Elements

• Primarily financial
• Tend to be more dynamic
• Examples
• hourly rate, monthly salary, current gross
  earnings, sales amount, commission paid,
  year-to-date income tax, etc.

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4. HR Intelligence System

• HR Intelligence Concepts
• Sources of HR Intelligence
• Elements of HR Intelligence

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HR Intelligence Concepts

• HR Intelligence system gathers data relating to
  human resource from the firms environment
• Informal reporting system
• BPEST Analysis
• Business (industry)
• Politics
• Economics
• Social
• Technology

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Sources of HR Intelligence

• Companys own personnel
• Executives
• Specialists and consultants
• Salespersons
• Other employees
• Issue
• Always busy people
• Fail to pass on important information
• Intelligence gatherers must be trained and
  encouraged to report intelligence back to the
  company

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Sources of HR Intelligence

• Companys supply chain
• Suppliers
• Resellers
• Customers
• Partners
• Competitors
• Annual reports
• Speeches and press releases
• Advertisements and marketing communications
• Web sites

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Sources of HR Intelligence

• Publications and mass media
• Television news
• Newspapers
• Magazines and journals
• Syndicated services
• Customized reports on demand
• Electronic databases

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Elements of HR Intelligence

• Government intelligence
• To assist the firm in complying with the various
  employment laws
• Labor union intelligence
• To manage the labor contracts between the unions
  and the firm

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Elements of HR Intelligence

• Financial community intelligence
• To be used in personnel planning based on
  economic data
• Global community intelligence
• To describe local resources such as housing,
  education, and recreation
• To be used in recruiting employees on an
  regional, national, and international scale

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Elements of HR Intelligence

• Supplier intelligence
• To enable the firm to perform its recruiting and
  hiring functions
• Insurance companies -- employee benefits
• University placement center and employment
  agencies -- source of new employees

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Elements of HR Intelligence

• Competitor intelligence
• Another source of new employees especially in
  highly specialized knowledge and skills required
  industries
• To gather information concerning their personnel
  practices and individuals who are potential
  recruits

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5. HR Research System

• Uses of HR Research
• Types of Research
• Experiments and Pilot Projects
• Employee and Attitude Surveys
• Exit Interviews
• HR Audit

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A Definition of RESEARCH

• R Recognition of information needs
• E Effective decision making
• S Systematic and objective
• E Exude/disseminate information
• A Analysis of information
• R Recommendations for action
• C Collection of information
• H Helpful to managers

(Malhotra)
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Uses of HR Research

• Monitoring current HR activities
• Identifying HR problem areas and possible
  solutions to those problems
• Forecasting trends and their impact on HR
  management
• Evaluating the costs and benefits of HR activities

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Types of Research

• Primary research
• Research method in which data are gathered
  firsthand for the specific project conducted
• Secondary research
• Research method using data already gathered by
  others and reported in books, articles in
  professional journals, or other sources

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Experiments and Pilot Projects

• To determine how factors respond when changes are
  made in one or more variables, or conditions
• Major problem
• HR management is practiced in the real world

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Employee and Attitude Surveys

• To give employees opportunities to voice their
  opinions about specific HR activities
• Can be used to
• diagnose specific problem areas
• identify employee needs or preferences
• reveal areas in which HR activities are well
  received or are viewed negatively
• Issues
• Anonymity
• Support of top management

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Exit Interviews

• To focus on a variety of problems
• An interview in which those leaving the
  organization are asked to identify the reasons
  for their departure
• Issues
• Most popular reason - an offer for more pay
  elsewhere
• Must be conducted by HR specialists rather than
  supervisors some time after they have left the
  organization

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HR Audit

• To assess HR effectiveness
• A formal research effort that evaluates the
  current status of HR management in an
  organization
• Steps
• Determine the objectives to be achieved in the HR
  area
• Compare the actual status of HR activities with
  the objectives
• Review of all relevant HR documents

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6. HR Decision Support System

• DSS Concepts
• Characteristics of DSS
• Identifying DSS Problem
• Components of DSS
• Stages of Decision Making
• Levels of DSS
• Approaches to Decision Analysis

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DSS Concepts

• A decision support system should
• Assist managers in making decisions to solve
  semi-structured problems.
• Support the managers judgment rather than try to
  replace it.
• Improve the managers decision-making
  effectiveness rather than its efficiency.

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Characteristics of DSS

• DSS offer users flexibility, adaptability, and a
  quick response
• DSS allow users to initiate and control the input
  and output
• DSS operate with little or no assistance from
  professional programmers
• DSS provide support for decisions and problems
  whose solutions cannot be specified in advance
• DSS use sophisticated analysis and modeling tools

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Identifying DSS Problem

• Problems should be identified by users
• There must be a body of data to work with and
  analyze
• The problem must be one for which no simple
  formula provides a solution
• There must be some systematic way of thinking
  about the problem that a DSS can automate or
  assist
• The problem must be important enough to engage
  the time and energy of management groups ranging
  from first line supervisors to senior management

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Components of DSS
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Stages of Decision Making
Intelligence
Is there a problem?
Design
What are the alternatives?
Choice
Which should you choose?
Implementation
Is the choice working?
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Levels of DSS

• Level 1 Data Acquisition, Storage and Retrieval
• Level 2 Data Analysis
• Finding and analyzing the relationships between
  variables
• Level 3 Decision Analysis
• Prioritization and choice among alternatives

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Approaches to Decision Analysis

• Checklists
• Pro/con analysis
• Weighting and scoring method
• Management sciences models
• Linear programming
• Optimization models
• Decision tree
• Multiple regression
• Analytic hierarchy process

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7. Functional ISs Integration

• Development of Business Information System
• Managerial Views of HRIS
• Value Chain Model
• System Concept
• HR Information Transfer

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Development of Business Information System
From local to national to global business
From price to non-price competition
From buyer needs to buyer wants
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Managerial Views of HRIS

• HRIS is the most highly valued
• HRIS is valued higher than other systems
• HRIS is valued on a par with other systems
• HRIS is valued less than other systems
• HRIS has little value
• Top management is unaware of HRIS

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Value Chain Model
Support Activities
Primary Activities
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System Concept
External
Internal
Consists of functional Subsystems
Each subsystem can be viewed as another
system and consists of its own subsystems
Each subsystem has its dept. goal
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EIS
I-OIS
ES
DSS
3. Organizational Levels
MIS
KWS
1. Support Provided
OIS (MIS)
TPS
OAS
AIS
HRIS
FNIS
MFIS
MKIS
2. Functional Areas
DIS
WIS
PIS
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HR Information Transfer

• To provide the information to those who need it
  in a format that is useful to them
• Communication affects the management of people as
  much as (or more than) any other process over
  which management is influence
• Communication throughout the organization is very
  important

Vertical integration
Horizontal integration
Free flow of information
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