1 Human Resource Management Systems Chapter 6: HRMS Vendors Joseph Y-W. Deng

2 Chapter Outline Identifying Vendors Communicating with Vendors Evaluating Vendors

3 Introduction Vendors for HRMS consultants, software, hardware, and systems Choose vendors who are Experienced Reliable

4 Identifying Vendors What type of vendor do we need? Where is the vendor? Who can provide me the right stuff?

5 Types of Vendors Manufacture’s representatives Systems development houses Value-added resellers (VAR) Remarketing someone else’s product Software brokers Service bureaus Time-share utilities Turnkey vendors

6 Types of Vendors (cont’d) Bigger does not necessarily mean better Some small firms deliver superior software products and services Choose the professional one!

7 Locating Vendors Web search Computer manufactures Other users Trade associations Human resources trade publications Computer and information system publications Human resource conferences Directories Mail order and catalogs Consultants

8 Fig 6-1

9 Doing Preliminary Vendor Screening Telephone contact and meeting Consider the quality of interactions with each vendor Check financial stability of the vendor Check successful stories

10 Vendor Marketing Language

11 Doing Preliminary Vendor Screening (cont’d) Tough questions How long has the vendor been in business? Is the vendor experienced in the client’s business? How many HRMS applications has the vendor already installed? Does the vendor provide a firm guarantee? Does the vendor provide implementation support? Does the vendor offer training?

12 Communicating with Vendors Formal vendor selection process Request for information (RFI) Request for proposal (RFP) Vendor evaluation

13 Request for Information Request for information or interest Send a letter to vendors asking for an expression of interest Describe the project in one or two pages Request potential vendors provide an expression of interest and a list of their qualifications Get the name of a primary contact to whom the project team send the RFP

14 Request for Proposal Describe in detail the customer’s ideal computer system in terms of requirements Ask each qualified vendor to submit a bid

15 Importance of RFP The RFP defines the user’s goals and requirements The RFP simplifies the decision-making process The RFP reduces the potential for errors The RFP reduces the chances for disagreements

16 Components of an RFP Introduction Business profile Statement of objectives Proposal instructions Functional requirements Vendor requirements RFP administrative information

17 RFP Introduction Overall understanding of the organization HRMS requirements HRMS operating environment Profile the potential client and its HR department Briefing of the technical environment

18 RFP Proposal Instructions Brief but concrete Bidders should propose only currently available capabilities Outline the expected proposal Introduction Functional requirements Vendor requirements Proposal costs appendix

19 RFP Functional Requirement The largest part of the RFP Describe what the system must do List each line-item requirement and ask vendors to comment on their ability to meet these requirements

20 RFP Vendor Requirements Appears in question form Product name, version, release level, history Vendor provides a list of references of other clients whose needs have been similar to those described in the RFP Inquires about standard and optional training, conversion, acceptance testing processes, implementation support, and procedures for fixing bugs

21 RFP Administrative Information Nondisclosure of the RFP itself Schedule for the proposal process, vendor selection, and implementation, including the deadline for submitting the proposal and bid Policy on further inquiries regarding the RFP Proposal submission requirements Required affirmations Time, place, and purpose of any bidders’ conference Requirements for demonstration of proposed system

22 RFP Administrative Information Provision for consideration of alternative proposals Request for itemization of products, services Request for bidders to quote price in specific terms Request for bidders to agree to append to the contract Request for vendors’ standard contracts or license agreements Agreement that all costs associated with proposal development and submission and with system demo. Agreement that withdrawal and return or disposal of proposals of the unsuccessful bidders is a joint responsibility

23 Distributing the RFP Send the RFP to about three vendors of any one type

24 Evaluating Vendors Evaluating RFP responses Evaluating product demonstration Checking references Evaluating HRMS documentation