Introduction to HRIS Chapters 1-3

What is the Most Important Asset An Organization Has? l Land? l Capital? l Technology? l Your people, and their ability to provide goods and services to customers, both internal and external.

Role of Human Resources l “To attract, motivate, and retain valuable employees to meet the company’s goals.” l HRIS is meant to support this role.

Human Resource Information Systems (HRIS) l “The system used to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information regarding an organization’s human resources.” l “ The electronic management of human resources information.”

Major HR Functions l Planning, Organizational Design l Staffing/Employment l Communications & Public Relations l Performance Management l Reward Systems, Benefits, Compliance l Employee & Organizational Training & Development l Quality of Work Life

HRIS Sample Modules l Job Analysis l HR Planning (supply & demand forecasting) l Recruiting & Selection l Training & Development l Time & Attendance l Payroll l Compensation and Benefits l Performance Appraisal l Employee/Labor Relations l Employee/ Performance Problems l Employee Assistance l Equity Programs l Retirement/Pensions

Applications for the HRIS l Employee lists l Attrition reporting/monitoring l Employment equity (EEO) tracking/ monitoring l Salary/benefits budget reporting l HR/strategic planning l Salary/benefits modeling l Seniority lists l Applicant tracking l Grievance tracking and analysis l Workers comp, LTD tracking l HRMS reports

HRIS Enhances Productivity l Increases work force quality –More appropriate hiring, better T&D, improved retention of desired employees l Controls expenses –More thorough salary/benefits administration tracking & analysis, training & development, ad hoc reports for queries, more user independence l Eases regulatory compliance –EEO, COBRA, OSHA

HRIS Costs

Systems Model of Org’l Functioning l External Environment Gvt, Technology, Labor Mkt, Societal Concerns, Competition, HR State of Art l Org’l Goals Productivity Services Profit ROI Morale l HR Mgt System l HR Functions l HRIS l Strategic Mgt System Feedback

History of HR Field l Pre-World War II –Reactive, caretaker activity; not part of main- stream; record keeping, caretaker of employees l Postwar: –Employee morale; personnel part of costs; R&D in selection; payroll automation; early applications of mainframe computers in defense l Social issues era: –Legislation changes HR; increased reporting requirements; advance of MIS; HR in mainstream

History of HR Field, cont’d l Cost effectiveness era: 1980’s –HR must cost justify activities; increased regulation and paperwork; microcomputer and software explosion; HRIS capabilities lower in cost; HR part of strategy process; increased emphasis on R&D for HR. l Quality and reengineering era: 1990’s –Information is the resource of the 90’s; technology is the catalyst/enabler of change.

Technology as a Catalyst or Enabler l Old rule: “Information can appear at only one place at a time” l Disruptive technology: Shared databases l New rule: “information can appear in as many places as it is needed”

The New Technology 2 l Old rule: “Only experts can perform complex work” l Disruptive technology: Expert systems l New rule: “A generalist can do the work of an expert”

The New Technology 3 l Old rule: “Managers make all the decisions” l Disruptive technology: Decision support systems l New rule: “Decision making is part of everyone’s job”

The New Technology 4 l Old rule: “Field personnel need offices where they can receive, store, retrieve, and transmit information” l Disruptive technology: Wireless data communication and portable computers l New rule: “Field personnel can send and receive information from wherever they are”

The New Technology 5 l Old rule: “The best contact with a potential buyer is personal contact” l Disruptive technology: Interactive videodisks l New rule: “The best contact with a potential buyer is effective contact”

The New Technology 6 l Old rule: “You have to find out where things are” l Disruptive technology: Automatic identification and tracking technology l New rule: “Things tell you where they are”

Importance of HRIS l Personnel -- largest part of organizations' operating costs Costs can range upwards of 80% to 90% of total operating budgets l Personnel also among most difficult resources to manage l HRIS required to collect info, manage it, and report l Access to information increasingly important for decision-making l HRIS becoming important strategic tool

Cost-Justification Cost-justifying the purchase and implementation of HRIS is one of the most pressing challenges facing many HR Departments ”HR has to earn its keep. If you can't specify exactly how you contribute to the bottom line, you'll have increasingly few resources available. Not only does the HRMS have to generate a significant return, but also, customers need to understand exactly how it's accomplishing that return (Stright, 1993, p. 70)".

Human Resources Often Undervalued & Misunderstood l HR practitioners have not been very effective at justifying what they do in a way that other managers readily understand. l HR practitioners are not used to cost- justifying what they do l HR Department often considered a“necessary liability”, not a corporate asset.

Cost-Benefit Analysis l Outlined in detail in books by Casio and Fitz- Enz l Not commonly known or used by HR practitioners, although this is changing l Applies to organizations of all sizes

Examples l Closer control of salary and benefits costs l Streamlining HR administrative overhead l Input into labor negotiations l More effective use of personnel in support of corporate goals and objectives