What is a “Human Resource Information System”

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

What’s an HRIS?

• Any system that supports any aspect of the HR function

• Primary function: – Documenting the employment relation in all

it’s complexity

• Basic technology:– Storing, retrieving and distributing

information

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

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

Processing(Calc. Net pay)

An HR Example

Output(cut paycheck)

Input(hours worked)

Feedback Loop(Is paycheck accurate?)

Any Computer-based Info Systems (HRIS included)

• Hardware

• Software

• Databases

• Telecommunication

• Procedures

• People

Consists of...

Typical HRIS Record Keeping Requirements

• Employee information

• Wage and salary data

• Review dates

• Benefits

• Education and training

• Attendance

• Performance data/appraisal results

HRIS Tracks...

People

PositionsJobs

WorkersCompensation

HRPlanning

MedicalRecords

Recruit/Selection

EmploymentEquity

Benefits

Payroll

PensionAdmin

Employee RelationsTraining and

Development

Compensation

Health &Safety

Developing an HRIS: System Development Life Cycle

(SDLC)Planning

Design

Analysis

Implementation

Maintenance

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 expectationsLack of overall plan for record mgt.Lack of flexibility and adaptabilityMisinterpret HR specificationsPoor communication between HR/ISInadequate testing

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 ProductivityMore efficient administrationMore opportunitiesReduced labor requirementsReduced costsSuperior managerial decision makingSuperior control

Developing an HRIS: Planning and HRIS Development Project

Planning

Design

Analysis

Implementation

Maintenance

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

Selecting an Investigation Team

• HR personnel

• IS personnel

• Users

• Consultants

• Top management

Developing an HRIS: Analysis Phase

Planning

Analysis

Design

Implementation

Maintenance

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

OBJECTIVES OF THE NEEDS ANALYSIS

OBJECTIVES OF THE NEEDS ANALYSIS

• HR FUNCTIONS TO BE AUTOMATED

• WHICH FUNCTIONS ARE MOST (LEAST) CRITICAL?

• RELATIONSHIP OF HRIS TO OTHER SYSTEMS

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

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.

Developing an HRIS: Design Phase

Planning

Design

Analysis

Implementation

Maintenance

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

Preliminary Design Tasks/Steps

Acquire Hardware/SoftwareTechnical Design

Design interfacesLogical and Physical DatabasesMessages and ScreensData Security

Reengineer Business ProcessesMigration Plan

Developing an HRIS: Design Phase

Detailed DesignPreliminary

(Conceptual)Design

Implementation(Build, Test, Roll-out)

Design Phase

Implementation Phase

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

Make vs. Buy?

Packaged Systems

Custom Systems

Advantages Disadvantages

- Cheaper, cost spread across many buyers- Quicker development; Turnkey- Can easily evaluate to determine if needs met- Documented- Supported

- Unlikely to meet all of organization’s requirements- Low distinctiveness- Many vendors/products to sort through- Lack of control in any updates/changes

- Greater control; quickly adapt to changes- Unique needs addressed- Distinctiveness High

- High Maintenance “burning platform”- Long development timeline- Poorly documented/Brain drain- Greater Staffing Reqs. (IS personnel)

RFP: Request for Proposal

• Defines user’s goals and requirements

• Simplifies decision making process

• Saves time and facilitates comparisons of vendor responses

• Reduces potential errors

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.

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

Technical Design: Hardware Selection

• Select Software First

• Operating System and HW selection

• HW reliability and service reputation

• Manufacturer stability

• Expandability

• Cost

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

Employee Life-Cycle

Applicant Employee Former EmployeeAccession Separation

Education Skills

Job Pending

Interview

Offer

PhysicalExam

Offer

SalaryAdjustment

BenefitsChange

ClassificationChange

EmployeeStatus

Change

CareerPlan

JobTransfer

AdditionalSkills

AdditionalEducation

Retirement

ContinuingBenefit

JobReference

AddressChange

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

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