hris module

Copyright 2000 - South-Western College Publishing Module 7 - 1

HRIS Module

• There are four groups of transparencies here, designed to go with the topics listed in the teaching note:– Overview (4 slides)– Kinds of systems (8 slides)– Client/server technology (7 slides)– Implementation & org change (14 slides)


HRIS Overview

• Technology is increasingly pervasive– Push: hardware and software costs go down– Pull: greater need for good HR systems

• HR people need to be aware of what information systems can do


Technical basics

• Database technology– Storing and retrieving data– Usually relational databases

• Network technology– Distributing information– “client/server” systems– Intranet and the WWW


More than just technology

• Systems are embedded in organizations– Routines, procedures, etc.– Jobs, division of labor, etc.– Information, power and influent

• Organizational factors make all the difference– Untrained or resistant users can kill any system– Poor fit with org. structure, culture or routines can

also kill a system


HRIS require careful planning

• IS dept. needs to manage technical details– Databases, network connectivity, etc.

• HR needs manage the change process– Training– “PR” and communications– Need to identify sources of resistance to change

& strategies for managing resistance


Kinds of Systems

Mgmt ReportingEEO, OSHA, etc. absenteeism by department

Decision Support staffing (long and short term) benefits planning

Workflow recruitment & hiring performance appraisal

Transaction Processingtime and attendance forms requests benefits enrollment

Executive SupportStrategic planningPlant opening/closing


Transaction Processing• Basic, routine requests

– Time & attendance records– Benefits enrollment

• Normally done with a form– Labor intensive & Error prone

• Automation of routine transactions provides data that other processes can use (informating HR work)


Management Reporting• Basic, routine questions

– How many people work here?– What are we paying them?

• Also need capability to generate “ad hoc” reports to answer non-routine questions

• Client-server systems can enable more flexible reporting by allowing users to design their own reports


Workflow

• Most transactions require multiple steps– Hiring is a classic example

• Where does the paperwork go next?• Workflow systems expedite processing by

moving the “paperwork” from step to step electronically

• Vision: the paperless office


Decision Support

• Algorithms can be used for routine decisions – daily/weekly/seasonal staffing levels)

• Analysis tools can be used to support non-routine decisions– When bargaining over wages or benefits, DSS

can help analyze true costs over time.


Enterprise Resource Planning

• Very popular category of software– PeopleSoft, SAP, Oracle, Baan, JD Edwards,

etc.• Objectives:

– Integrate HR, financial and manufacturing data into a single system

– Facilitate operations and decision-making• Can be very complex: thousands of tables!


Special purpose systems

• Many other kinds of systems are available– Job description writers– Applicant &resume tracking– Test administration

• Or you can write your own• A constant issue: systems integration

(getting systems to work together)


What do systems do?

• Automating: replacing human work with machines– Generally aimed at cost reduction

• Informating: creating information as a by product of work– Feeds management decision making– Can enhance effectiveness

• HR Systems can do either or both


Client/Server Systems

• A way of distributing computing resources, such as:– Files -- data and programs– Processing– I/O devices (print, fax, etc.)

• Objective: To create flexible infrastructure and provide information at your fingertips


Why is C/S so popular?• Hoped-for benefits (pull)

– Lower cost, greater IS value– Greater functionality & flexibility– Fits 1990s organizational paradigm

• Enabling technology available (push)– Cheap, powerful hardware– Relational database technology– Network technology (the intranet)


Trend toward distributed resources

• 20 years ago– Central mainframe running batch jobs– Dumb terminals, but limited interactivity

• 10 years ago– Central mainframe– Mini- and micro-computers attached

• Recently– Increased network capacity & cheap PCs– 90% of corporate MIPS are on the desktop


What is a client?• A process that interacts with the user to:

– provide a user interface– formulate queries (for example)– communicate with server– analyze data returned from server

• Examples: – WWW browsers like Netscape are clients– E-mail readers like Eudora or MS Outlook


What is a server?• A set of processes that:

– provides services to client(s)– responds to requests (does not initiate)– makes the system transparent to client

• Examples:– Web servers respond to requests for web pages– Also: File servers, email servers, print servers…


HR & client server systems

• Most major HR applications use client-server technology– Data are centralized and can be shared– Access and decision-making can be

decentralized• Examples:

– Open positions need to be posted everywhere– Policies and procedures, benefits enrollment. . .


C/S systems are not simple

• Lots of pieces interacting– Server platform, client platform, network ...

• Maintenance is expensive• Security and control is always a concern

– Who should have access? To which data?• HR requires excellent support from IS to

make these systems successful


Implementation and Organizational Change

• Many parts of organization are affected– Resources/authority/jobs are at stake– Politics and resistance are likely

• Need to adopt appropriate tactics– Always: Participation– Frequently: Co-optation– Occasionally: Managerial fiat


Cross-functional teams are needed

• System builders are responsible for:– Technical quality– User interface– Overall organization impact– Design and implementation process

• No single function can handle all this!


User involvement is key• Users provide essential information• User involvement tends to generate

resources needed for org change:– “Buy-in” (or co-optation)– Commitment

• User involvement tends to promote:– Increased satisfaction– Higher probability of success


System Development Life-CycleWARNING: The most expensive errors happen early. . .

RequirementsDesign

Customization

Implementation

Time (1-2 years for complex system)

Maintenance


Requirements analysis• Problem definition: What are our needs?• Feasibility: technical, economic, operational• Possible outcomes:

– Do nothing; leave well enough alone– Upgrade/extend existing system– New System

• Output: Project/system proposal


If you don’t know what your requirements really are...

• Try prototyping• Use the prototype to elicit user reactions

and define requirements• Revise and enhance the prototype to refine

the requirements• Good approach for complex situations

where requirements are unclear


Selling your project

• Hard to justify on cost-benefit alone– Direct savings are easy enough to document– But systems are expensive…

• HR systems are required to do business– Payroll taxes, FMLA, OSHA, and many other

record keeping functions are required by law– Why not get a system that can also help further

strategic goals of the organization?


Systems are risky

• Failure is common– Almost all projects fail a little bit (over budget,

behind schedule, marginal functionality)• Some project fail completely

– A large scale HRIS is expensive ($ millions)– Consultants can help, but are also expensive

• IS people adopt a “risk-benefit” perspective– How risky is your project?


Risk-benefit perspectiveProject Risk

High Low

High

Low

PotentialBenefits

CautiouslyExamine

Identify & Develop

RoutineProjects

Avoid!


Make or Buy?• Requirements form the basis for this

decision. If at all possible, try to buy!– Most systems can be customized– It’s easier to change your processes, if necessary

• Writing custom software only makes sense if you have very unusual (and inflexible) requirements (or the project is very easy)


System Design• After needs have been identified, still need to

decide details of what system will do • Says what is to be done, but not how to do it• This is needed even when purchasing

software– Vendor will have customization methodology

• Output: Design or customization specifications


Customization

• Even packaged software required customization

• Large Enterprise Resource Planning (ERP) systems (like SAP, PeopleSoft, Baan, etc.) can have literally thousands of parameters that must be set.

• This is a significant effort


Implementation• Data conversion & Roll-out

– Parallel systems: safe but expensive– Direct cut-over: risky but cheap– Phased approach (e.g., by geographic area)

• Documentation• User training & support


Production and maintenance• Average breakdown of effort:

– 20% debugging & emergency fixes– 20% changes in data, files, reports, etc.– 60% enhancements

• 50% of life-cycle cost• An effective requirements/design process

greatly reduces these costs

hris module

Documents

information systems

slideskinds of systems

effectivenesshr systems

systems integration

workflow systems

good hr systems hr people

routine questionshow

greater need