C h a p t e r PART ONE - INTRODUCTION AND EQUAL EMPLOYMENT OPPORTUNITY Information Technology for Human Resources 2

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Chapter 2 Overview The Computer Evolution HR and the Internet Client/Server Networks Human Resource Information Systems (HRIS) Uses of an HRIS Necessary Capabilities of an HRIS Implementing an HRIS Evaluating an HRIS Data Security

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved The Computer Evolution HR and the Internet  Types of Internet Resources   Intranets   Client/Server Networks Human Resource Information Systems (HRIS)  The Evolution of the HRIS  The First-Generation HRIS  The Second-Generation HRIS  The Third-Generation HRIS The Computer Evolution HR and the Internet  Types of Internet Resources   Intranets   Client/Server Networks Human Resource Information Systems (HRIS)  The Evolution of the HRIS  The First-Generation HRIS  The Second-Generation HRIS  The Third-Generation HRIS

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Table HR Professional’s Gateway to the Internet ( This site offers more than 85 links to HR-related home pages. It is well organized and easy to get around. Hint: Start here to link to several of the sources listed below. 2.Society for Human Resource Management ( This location has several useful links to various topics of interest, including career planning, employee benefits, legal issues, recruitment, training and development, and diversity. 3.Workforce ( Site of one of the the oldest and largest continuously published human resource periodicals in the United States, it has been published under other names (Personnel Journal) during its 80 years. The Workforce web site offers material on all areas of human resources. 4.U. S. Department of Labor ( Federal web site with extensive information about labor-related HR issues, including statistics, legislation, research, and publications. Suggested Web Sites for HR Related Information

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved The Computer Evolution HR and the Internet  Types of Internet Resources   Intranets   Client/Server Networks Human Resource Information Systems (HRIS)  The Evolution of the HRIS  The First-Generation HRIS  The Second-Generation HRIS  The Third-Generation HRIS

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Table 2.2 Source: Samuel Greengard, “Evolution of a Portal: The basics of HR portal development,” Workforce, April 2002, p. 36. Intranet Uses Basic l Employee communication l Company directory l Company handbook, including policies and guidelines l Weather l News l Stock information Intermediate l Linkage to outside benefits providers l Employee-assistance programs l Web-based l E-learning l Online job postings l Calendar, address book, and project scheduling l Online travel bookings l Document management Advanced l Benefits enrollment l Performance management l Salary and wage reviews l Succession planning linked to skill/competency management programs l Online recruitment and hiring l Ability to submit electronic forms l Electronic paycheck information, including pay stubs and W-2s l Business intelligence

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Table 2.3 Source: Samuel Greengard, “Internet/Intranet Glossary of Useful Terms,” Workforce, March 1997, p. 82. Domain: The name of a computer or service on the Internet—referred to by the character following in an online address. Download: The process of receiving a file from another computer. Firewall: Hardware or software that protects a private network from an unsecured or public network. FTP (File Transfer Protocol): An Internet protocol for transferring files to and from another server over a network. Groupware: A application that enables users to collaborate over a network. Homepage: The first page of a Web site or group of HTML documents. HTML (Hypertext Markup Language): The language in which World Wide Web documents are formatted. Hyperlink: The linking mechanism that allows a user to jump form one Web page, graphic, or document to another. Internet: World’s largest computer network enabling users to send , transfer files, participate in newsgroups, and access the World Wide Web. Intranet: A private network that uses Internet software and standards. Java: An object-oriented language, developed by Sun Microsystems, that creates distributed Web applications. Newsgroup: An electronic bulletin board on which users can post and exchange messages. SSL (Secure Sockets Layer): Provides authentication and data encryption between a Web server and a Web browser. Upload: The process of transmitting a file to another computer. URL (Uniform Resource Locator): A standardized character string that identifies the location of an Internet document. Also known as a Web address. Web Browser: Software that requests and displays HTML documents and other Internet or intranet data. World Wide Web: The Internet’s worldwide, HTML-based, hypertext-linked information system. Glossary of Useful Internet/Intranet Terms

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved The Computer Evolution HR and the Internet  Types of Internet Resources   Intranets   Client/Server Networks Human Resource Information Systems (HRIS)  The Evolution of the HRIS  The First-Generation HRIS  The Second-Generation HRIS  The Third-Generation HRIS The Computer Evolution HR and the Internet  Types of Internet Resources   Intranets   Client/Server Networks Human Resource Information Systems (HRIS)  The Evolution of the HRIS  The First-Generation HRIS  The Second-Generation HRIS  The Third-Generation HRIS

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Uses of an HRIS  Necessary Capabilities of an HRIS  Input Function  Data Maintenance Function  Output Function Implementing an HRIS Evaluating an HRIS Data Security  Privacy and Legal Concerns

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Table 2.4 Source: Jac Fitz-Eng, “Top 10 Calculations for Your HRIS,” HR Focus, April 1998, p. 53. Performance Calculations from an HRIS 10.Healthcare Cost per Employee. As the work force ages and healthcare costs continue to increase, this cost should be monitored.(Employee’s total cost to provide healthcare benefits/Total employees) 9.Pay and Benefits as a Percentage of Operating Expenses. Downsizing, outsourcing, rightsizing, and reengineering are often aimed at reducing the organization’s operating expenses. This calculation will indicate if payroll cost is dropping at the same rate as other expenses.(Pay and benefits/Operating expenses) 8.Cost per hire. While hiring costs are not as important as the quality of the hire, they are important, especially since quality is very difficult to measure. (Advertising + Agency fees + Employee referrals + Travel cost of applicant and staff + Relocation costs + Recruiter costs + Recruiter pay and benefits + 10 percent to cover all other costs) 7.Return on training. Sometimes difficult to calculate but usually can be accurately estimated. (Measure depends on specific case.) 6.Volunteer Turnover Rate. Retention of key employees is critical to any organization’s success. Is this figure going up or down?(Total voluntary separations/Total employees) 5.Turnover Cost. There are four basic components of turnover cost: cost to terminate, cost to hire, vacancy cost, and learning curve loss. For the typical hourly employee, turnover costs equal about six months of pay and benefits. In some sales jobs, turnover costs can be as much as three years’ pay and benefit costs. (Cost to terminate + Cost per hire + Vacancy cost + Learning curve loss) 4.Time to fill Jobs. Filling jobs quickly with qualified people is critical, especially to human resource managers. (Total calendar days from receipt of requisition until offer is accepted.) 3.Return on Human Capital Invested. While employee value is a philosophical question, the ratio of profit for each dollar spent on employee pay and benefits can be calculated. ( Revenue - (Operating expense - Pay and benefits) ) / Pay and benefits 2.Human Value Added. Shows the number of profit dollars per employee. ( Revenue - (Operating expense - Pay and benefits) ) / Number of full-time employees 1.That Which Impresses Top Management the Most. Find out what top management thinks is important and see if it can be produced.

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Uses of an HRIS  Necessary Capabilities of an HRIS  Input Function  Data Maintenance Function  Output Function Implementing an HRIS Evaluating an HRIS Data Security  Privacy and Legal Concerns Uses of an HRIS  Necessary Capabilities of an HRIS  Input Function  Data Maintenance Function  Output Function Implementing an HRIS Evaluating an HRIS Data Security  Privacy and Legal Concerns Uses of an HRIS  Necessary Capabilities of an HRIS  Input Function  Data Maintenance Function  Output Function Implementing an HRIS Evaluating an HRIS Data Security  Privacy and Legal Concerns Uses of an HRIS  Necessary Capabilities of an HRIS  Input Function  Data Maintenance Function  Output Function Implementing an HRIS Evaluating an HRIS Data Security  Privacy and Legal Concerns Uses of an HRIS  Necessary Capabilities of an HRIS  Input Function  Data Maintenance Function  Output Function Implementing an HRIS Evaluating an HRIS Data Security  Privacy and Legal Concerns Uses of an HRIS  Necessary Capabilities of an HRIS  Input Function  Data Maintenance Function  Output Function Implementing an HRIS Evaluating an HRIS Data Security  Privacy and Legal Concerns

McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved Questions