Copyright South-Western College Publishing Module 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)

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module Technical basics Database technology –Storing and retrieving data –Usually relational databases Network technology –Distributing information –“client/server” systems –Intranet and the WWW

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module Kinds of Systems Mgmt Reporting EEO, OSHA, etc. absenteeism by department Decision Support staffing (long and short term) benefits planning Workflow recruitment & hiring performance appraisal Transaction Processing time and attendance forms requests benefits enrollment Executive Support Strategic planning Plant opening/closing

Copyright South-Western College Publishing Module 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)

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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.

Copyright South-Western College Publishing Module 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!

Copyright South-Western College Publishing Module 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)

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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)

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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 – readers like Eudora or MS Outlook

Copyright South-Western College Publishing Module 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, servers, print servers…

Copyright South-Western College Publishing Module 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...

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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!

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module System Development Life-Cycle WARNING: The most expensive errors happen early... Requirements Design Customization Implementation Time (1-2 years for complex system) Maintenance

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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?

Copyright South-Western College Publishing Module 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?

Copyright South-Western College Publishing Module Risk-benefit perspective Project Risk HighLow High Low Potential Benefits Cautiously Examine Identify & Develop Routine Projects Avoid!

Copyright South-Western College Publishing Module 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)

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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

Copyright South-Western College Publishing Module 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