Appendix E Human Resources Information Systems MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall, Inc. E-1

Human Resources Information System (HRIS) n Handles specialized processing concerning firm’s personnel n HR Computerized processing done using human resources information system (HRIS) n Has become as valuable as other CBIS subsystems E-2

HR Function n Originally called personnel n Can be a department or functional area n HR director is often used to describe the person in charge E-3

Recruiting Hiring Education & Training Terminat- ion Benefit Administration Potential Employees Retired Employees Data Management The Firm Primary HR Activities E-4

The HRIS n The name HRMS (Human Resource Management System) is also catching on in industry n May not always be computer-based n Manages HR data and information E-5

The Evolution of the HRIS n First, paper files were located in the Personnel department. n Then, punched card and magnetic media files were located in IS. n Government legislation in the 1960s and 70s eventually called management's attention to the importance of HR data. n In the late 1970's the concept of an HRIS was born. E-6

Accounting information system Human resources research system Manufacturing intelligence subsystem Work force planning subsystem Work force management subsystem Benefits subsystem Internal sources Environmental sources Input subsystems Output subsystems Users Data Information Environmental reporting subsystem HRIS Database HRIS Model Recruiting subsystem Compensation Subsystem E-7

Accounting Information Subsystem n Two main types of data 1. Personnel -- name, birth date, sex, marital status, education, skills, etc. 2.Accounting -- hourly rate or monthly salary, taxes, insurance deductions, etc. E-8

Human Resources Research Subsystem n Examples: –Job analyses and evaluations –Succession studies –Grievance studies n This research can generate new data for the database (job analyses) n And it can use existing database contents (succession studies) E-9

Human Resources Intelligence Subsystem [cont.] n Government –Stay current on legislation –File reports. n Suppliers –Employment services n Labor unions, local community, competitors –Sources of employees E-10

Human Resources Intelligence Subsystem [cont.] n Global community intelligence n Financial community –Employee planning n Competitor intelligence E-11

The HRIS Database Type of data: 1. Employee 82.5% of the firms maintain only employee data 2. Nonemployee 8% of the firms mainly organizations external to the firm E-12

Possible HRIS Database Locations E-13

Database Location n Operating division -- decentralized n Outside service center -- outsourced n Central computer is still the most popular location Some firms keep database in multiple locations E-14

Executives Non HR (2.78) Managers (3.09) HR Director (3.79) Other HR Managers (4.33) Not at allOccasionallyMonthlyWeeklyDaily Users of the HRIS Database E-15

Basic Forms of HRIS Output E-16

Software n Custom software is usually developed jointly by HR and IS n Some software is integrated into a core HRIS n Some is standalone E-17

Work Force Planning Subsystem Enable manager to identify future personnel needs n Organization charting n Salary forecasting n Job analysis/evaluation n Planning n Work force modeling E-18

In Being Application name use developed ____________________________________________ Organization charting Salary forecasting Job analysis/evaluation Planning Work force modeling ____________________________________________ Totals Number of Firms Using Work Force Planning Applications Percent applications in use: 75 E-19

Recruiting Subsystem n Applicant tracking n Internal search n Tracking job applicants E-20

Number of Firms Using Recruiting Applications Application name In Being Use Developed ________________________________________ Applicant tracking Internal search ________________________________________ Totals Percent applications in use: 69 E-21

Work Force Management Subsystem n Performance appraisal n Training n Position control -- ensuring that headcount does not exceed budgeted limits. n Relocation n Skills/competency n Succession n Disciplinary E-22

Number of Firms Using Work Force Management Applications In Being Application name use developed _____________________________________________ Performance appraisal Training Position control Relocation Skills/competency Succession Disciplinary _____________________________________________ Totals Percent applications in use: 65 E-23

Compensation Subsystem Most systems in use –Merit increases –Payroll –Executive compensation –Bonus incentives –Attendance E-24

Number of Firms Using Compensation Applications In Being Application name use developed ___________________________________________ Merit increases Payroll Executive compensation Bonus incentives Attendance _____________________________________________ Totals 1, Percent applications in use: 88 E-25

Benefits Subsystem n Defined contribution n Defined benefits n Benefit statements n Flexible benefits n Stock purchase n Claims processing E-26

Number of Firms Using Benefits Applications In Being Application name use developed _____________________________________________ Defined contribution Defined benefits Benefit statements Flexible benefits Stock purchase Claims processing _____________________________________________ Totals Percent applications in use: 84 E-27

Environmental Reporting Subsystem n Reports firm’s personnel policies and practices to the government –EEO records –EEO analysis –Union increases –Health records –Toxic substance –Grievances E-28

Number of Firms Using Environmental Reporting Applications In Being Application name use developed _____________________________________________ EEO records EEO analysis Union increases Health records Toxic substance Grievances _____________________________________________ Totals 1, Percent applications in use: 85 E-29

Executive Perception of HRIS Value HRIS has little value HRIS is valued less than other systems HRIS is valued on a par with other systems HRIS is valued higher than other systems HRIS is the most highly valued Top mgmt is unaware of HRIS E-30

Users of HRIS HR directorXXXXXX Other executivesXXXXXX Compensation/benefits managerXX HR planning managerX Employee/labor relations managerXX EEO/AAP managerXXXXXX Recruiting & selection dvlpmnt mgrXX Training managerX Manager of accountingXX Payroll managerXX Other managersXXXXXX Work Force Planning Recruiting Work Force Management Compensation Benefits Environmental Reporting E-31

Summary n HR function has four primary activities –Recruiting and hiring –Educating and training –Management employee-related data –Termination and benefit administration n HRIS helps managers manage the personnel resource n Two big influences on HRIS development –Government –Microchip E-32