HO 343 -- Session 15: Integrated HRIS Development

1. HO 343 -- Session 15:Integrated HRIS Development EK BUNCHUA ek@alpha.tu.ac.th Room # 528 Thammasat Business School

2. Today’s Lecture 1. Recap HRIS Concepts 2. HRIS Database 3. Internal Records 4. HR Intelligence 5. HR Research 6. HR DSS 7. Functional ISs Integration

3. AIS FNIS MKIS MFIS 1. Recap HRIS Concepts HRIS • HRIS Definitions • HRIS Challenges • Purposes of HRIS • A Model of HRIS • HRIS Subsystems • HRIS Applications Structure

4. Human ResourceInformation System ... an integrated systemdesigned to provide information used in HR decision making. (Mathis & Jackson)

5. Human ResourceInformation System • ... a system for • gathering and maintaining the data that describes the HR, • transforming the data into information, and • reporting the information to users. (McLeod)

6. HRIS Challenges • Other departments, managers, employees are the main customers of the HR services • HRIS must be integrated with other functional information systems, and must be linked across the organizational hierarchy to enable the free flow of information Vertical integration Horizontal integration

7. Purposes of HRIS • To improve the efficiency with which data on employees and HR activities is compiled • To provide HR informationmore rapidly and more easily for use by management in making decisions (Mathis & Jackson)

8. HR Decision Support System Internal Records System Data base HR Intelligence System • Recruiting • Work force management & evaluation • Compensation • Benefits etc. HR Research System A Model of HRIS (Adapted from McLeod)

9. HRIS Applications Structure • Stand-alone HRIS structure • Each application (subsystem) of HR operates independently of each other • Core HRIS structure • The applications function as a unit • Sharing a common database • The outputs of one system provide the inputs for another

10. 2. HRIS Database • Uses of HRIS Database • Steps in Developing HRIS Database

11. Uses of HRIS Database • Operational • day-to-day support of the business • Analytical • analysis of historic and transaction data • to create or adjust HRM strategies, as well as other business strategies

12. Steps in Developing HRIS Database 1. Define the database functions • What functions do I want this database to perform? • Operational or Analytical? Issues: • Quick response time and easy access? • Technical problem • Data analysis capabilities • IT people tend to focus on the operational of systems

13. Steps in Developing HRIS Database 2. Define the information requirements There are two approaches: (1) Only a small amount of the employee data captured will be used to make decisions • Identify and capture only key information (2) Capture as much information as possible and start looking for trends within the data • Data-mining approach • Create a large data warehouse which is used to identify the meaningful trends

14. Steps in Developing HRIS Database • Which approach to be determined? Answer the following questions: • Have we prioritized the information required? • Is the information consistent with our HRM strategy? • How easily can the information be updated? • What are the costs and benefits associated with gathering information? • Should the database include prospective employees?

15. Steps in Developing HRIS Database 3. Identify the information sources • Internal sources v.s. External sources Issues: • How the information will be acquired and updated on an ongoing basis? • Existing employees v.s. potential employees • Reliability

16. Steps in Developing HRIS Database 4. Select the database technology and hardware platform • Depends on the intended uses of the database • Relational database is the preferred solution for the vast majority of applications • The selection of hardware platform will depend on the size of the database, and the number and location of potential users.

17. Steps in Developing HRIS Database 5. Build applications to access and process information • Specify application requirements • Element of the design • Data flow • Data store • Processes • Procedures • Controls • Roles

18. Steps in Developing HRIS Database 6. Populate the database • Major task when developing HRIS database • Poor-quality data is the primary reason for most of HRIS failures Issues • Much of the required information is already held in paper or electronic format • Numbers of different locations where the data can be found • Time consuming, require considerable resources

19. The database is a living • breathing thing that requires • constant attention -- you can’t • just build it and say “that’s it”. (Curtis) Steps in Developing HRIS Database 7. Maintain the database • Ongoing maintenance activity is required to keep the information in the database up to date

20. 3. Internal Records System • Establishment of Internal Records • Personnel Data Elements • Accounting Data Elements

21. Establishment of Internal Records • Current employee-related data • Confidential data • reference letters • promotability assessments • financial items • medical benefits • Historical data

22. Personnel Data Elements • Non-financial in nature • Relatively permanent • Be created by HR at the time of employment • Be kept current as long as the employees work for the firm Examples: • employee name, sex, date of birth, education, number of dependents, etc.

23. Accounting Data Elements • Primarily financial • Tend to be more dynamic Examples: • hourly rate, monthly salary, current gross earnings, sales amount, commission paid, year-to-date income tax, etc.

24. 4. HR Intelligence System • HR Intelligence Concepts • Sources of HR Intelligence • Elements of HR Intelligence

25. HR Intelligence Concepts • HR Intelligence system gathers data relating to human resource from the firm’s environment • Informal reporting system • BPEST Analysis • Business (industry) • Politics • Economics • Social • Technology

26. Sources of HR Intelligence • Company’s own personnel • Executives • Specialists and consultants • Salespersons • Other employees Issue: • Always busy people • Fail to pass on important information • Intelligence gatherers must be trained and encouraged to report intelligence back to the company

27. Sources of HR Intelligence • Company’s supply chain • Suppliers • Resellers • Customers • Partners • Competitors • Annual reports • Speeches and press releases • Advertisements and marketing communications • Web sites

28. Sources of HR Intelligence • Publications and mass media • Television news • Newspapers • Magazines and journals • Syndicated services • Customized reports on demand • Electronic databases

29. Elements of HR Intelligence • Government intelligence • To assist the firm in complying with the various employment laws • Labor union intelligence • To manage the labor contracts between the unions and the firm

30. Elements of HR Intelligence • Financial community intelligence • To be used in personnel planning based on economic data • Global community intelligence • To describe local resources such as housing, education, and recreation • To be used in recruiting employees on an regional, national, and international scale

31. Elements of HR Intelligence • Supplier intelligence • To enable the firm to perform its recruiting and hiring functions • Insurance companies -- employee benefits • University placement center and employment agencies -- source of new employees

32. Elements of HR Intelligence • Competitor intelligence • Another source of new employees especially in highly specialized knowledge and skills required industries • To gather information concerning their personnel practices and individuals who are potential recruits

33. 5. HR Research System • Uses of HR Research • Types of Research • Experiments and Pilot Projects • Employee and Attitude Surveys • Exit Interviews • HR Audit

34. A Definition of RESEARCH R = Recognition of information needs E = Effective decision making S = Systematic and objective E = Exude/disseminate information A = Analysis of information R = Recommendations for action C = Collection of information H = Helpful to managers (Malhotra)

35. Uses of HR Research • Monitoring current HR activities • Identifying HR problem areas and possible solutions to those problems • Forecasting trends and their impact on HR management • Evaluating the costs and benefits of HR activities

36. Types of Research • Primary research • Research method in which data are gathered firsthand for the specific project conducted • Secondary research • Research method using data already gathered by others and reported in books, articles in professional journals, or other sources

37. Experiments and Pilot Projects • To determine how factors respond when changes are made in one or more variables, or conditions Major problem: • HR management is practiced in the real world

38. Employee and Attitude Surveys • To give employees opportunities to voice their opinions about specific HR activities • Can be used to: • diagnose specific problem areas • identify employee needs or preferences • reveal areas in which HR activities are well received or are viewed negatively Issues: • Anonymity • Support of top management

39. Exit Interviews • To focus on a variety of problems • An interview in which those leaving the organization are asked to identify the reasons for their departure Issues: • Most popular reason - an offer for more pay elsewhere • Must be conducted by HR specialists rather than supervisors some time after they have left the organization

40. HR Audit • To assess HR effectiveness • A formal research effort that evaluates the current status of HR management in an organization Steps: • Determine the objectives to be achieved in the HR area • Compare the actual status of HR activities with the objectives • Review of all relevant HR documents

41. 6. HR Decision Support System • DSS Concepts • Characteristics of DSS • Identifying DSS Problem • Components of DSS • Stages of Decision Making • Levels of DSS • Approaches to Decision Analysis

42. DSS Concepts • A decision support system should: • Assistmanagers in making decisions to solvesemi-structured problems. • Supportthe manager’s judgment rather than try to replace it. • Improvethe manager’s decision-making effectiveness rather than its efficiency.

43. Characteristics of DSS • DSS offer users flexibility, adaptability, and a quick response • DSS allow users to initiate and control the input and output • DSS operate with little or no assistance from professional programmers • DSS provide support for decisions and problems whose solutions cannot be specified in advance • DSS use sophisticated analysis and modeling tools

44. Identifying DSS Problem • Problems should be identified by users • There must be a body of data to work with and analyze • The problem must be one for which no simple formula provides a solution • There must be some systematic way of thinking about the problem that a DSS can automate or assist • The problem must be important enough to engage the time and energy of management groups ranging from first line supervisors to senior management

45. Financial Accounting Sales/MKT Production Statistical Forecasting Operational Planning DSS Database Model Base DSS Software System Manage DSS Database Manage Model Base Manage User Interface User Interface Components of DSS

46. Stages of Decision Making Intelligence Is there a problem? Design What are the alternatives? Choice Which should you choose? Implementation Is the choice working?

47. Levels of DSS • Level 1: Data Acquisition, Storage and Retrieval • Level 2: Data Analysis • Finding and analyzing the relationships between variables • Level 3: Decision Analysis • Prioritization and choice among alternatives

48. Approaches to Decision Analysis • Checklists • Pro/con analysis • Weighting and scoring method • Management sciences models • Linear programming • Optimization models • Decision tree • Multiple regression • Analytic hierarchy process

49. 7. Functional ISs Integration • Development of Business Information System • Managerial Views of HRIS • Value Chain Model • System Concept • HR Information Transfer

50. Development of Business Information System Fromlocaltonational toglobal business Fromprice tonon-price competition Frombuyer needs tobuyer wants