HISTORICAL ERAS IN HRIS

Chapter 1 • Pre-world War II

Evolution of Human Resource – Reactive, “Caretaker” role

Management and Human Resource – Record Keeping – Manual
Information Systems: The Role of – “Scientific Management” Philosophy
Information Technology – Not Major Part Of Business
– Few Government regulations

Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

POSTWAR: 1945-1960 SOCIAL ISSUES PERIOD: 1963-1980

• Importance Of Employee Morale • Social Issues Legislation Impact HR

• HR Part Of Operating Costs, Not In Mainstream
• Protector Of Employees
• Labor Unions established
• Intro Of IBM 360
• Job descriptions gain popularity
• Payroll Function among the first for automation • Advent Of MIS
• Job Analysis, employee skills begin to be tracked • Paperwork & Reporting Increases
• R & D In Selection • HR Now More In Mainstream Of Operating
• Mainframe Usage By Defense Industry In HR Budget

Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

INTRODUCTION TO IHRM 1
 COST-EFFECTIVENESS: 1980-1990 TECHNOLOGY ADVANCEMENT ERA
(90S-TODAY)
• HR Cost Justification Activities • Internet enabled Web Services
• Increased Role Due To Paperwork Required In • HRIS more commonplace
Legislation • Business Process Re-engineering
• Microcomputers & Software Advances • HR Balanced Scorecard
• HRIS Capabilities Lower In Cost • Strategic HR Management
• Increased Emphasis On R&D • HR becoming more visible as a “strategic business
• Utility Analysis Critical Partner”
• Smaller companies can utilize HRIS • Globalization Of Companies
• Hardware-software Tools In Decision-making
Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

THE EVOLUTION OF STRATEGIC HRM COMPETITIVE ADVANTAGE

• Contingency Perspective And Fit
• Resource - Based View Of The Firm And Social Capital, Three Categories Of Resources:
• HR System Components And Structure
• Expanding The Scope Of HRM Beyond The Focal
Organization • Physical
• Achieving HR Implementation And Execution, By
Translating The Rhetoric Into Practice,
• Measuring The Outcomes Of SHRM By (E.G., Balanced • Organizational
Scorecard Approach)
• Research Methodological Issues That Stress The • Human Most Critical
Importance Of Evidence Based Management
• Adoption And Use Of HR Metrics
• Application Of “Six Sigma" Processes To HRM.

Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

INTRODUCTION TO IHRM 2
 ACTIVITIES OF HR HR ACTIVITIES & TIME SPENT
• Transactional (65-75%)
– Benefits Administration, Record Keeping,
Employee Services
Transformational • Traditional (15-30%)
– Recruitment, Selection, Training, Performance
Traditional Management, Compensation, Employee Relations
• Transformational (5-15%)
Transactional
– Knowledge Management, Strategic Redirection
And Renewal, Cultural Change, Management
Development
Wright, McMahan, Snell, & Gerhart, 1998
– Added Value
Wright, McMahan, Snell, & Gerhart, 1998

Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

INTERFACE BETWEEN HR AND HRIS

TECHNOLOGY • Human Resources Information System (HRIS)
– Computerized System That Provides Current And
• IT As A Tool Not A Substitute For People Accurate Data For Purposes Of Control And Decision
Making.
• How Might The Changes In Technology Impact – Benefits:
The Role And Perceptions Of HR Departments • Store And Retrieve Of Large Quantities Of Data.
And Professionals? • Combine And Reconfigure Data To Create New Information.
• Institutionalization Of Organizational Knowledge.
• How Might Technology Aid In The • Easier Communications.
Advancement Of Strategic HRM? • Lower Administrative Costs, Increase Productivity And
Response Times.

Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

INTRODUCTION TO IHRM 3
 HRIS DEFINITION E-HRM & HRIS
• Not Just Hardware-software • Electronic Human Resource Management (E-hrm)
• Includes People, Forms, Policies, Procedures, And – Information Technology (E.G., Web)central
Data Component
• Purpose – Provide Accurate and timely
– Application And HR-function Focused
“information” to the “clients” (or stakeholders) of
HR • HRIS
• Variety Of Users – Technology And Processes (E.G., Databases,
– Strategic Enterprise Resources Planning (ERP)
Architecture, Smart Phones, Etc.) That Support
– Tactical
Employee Access To HR Data And The Move To
– Operational Decisions E-HRM.

Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

BIGGEST ADVANTAGES OF HRIS Why Do we need an HRIS?

• Providing a comprehensive information picture as a single,
integrated database; this enables organizations to provide
Reduced Manual Handling And Paperwork structural connectivity across units and activities and to
increase the speed of information transactions
Or • Increasing competitiveness by improving HR operations and
management processes
Enables Greater Impact Of Paperwork On Business • Collecting appropriate data and converting them to information
and knowledge for improved timeliness and quality of decision
Operation making
– Reports • Producing a greater number and variety of accurate and real-
time HR-related reports
– Analysis • Streamlining and enhancing the efficiency and effectiveness of
– Negotiations HR administrative functions
• Shifting the focus of HR from the processing of transactions to
– Communications strategic HRM
• Reengineering HR processes and functions
• Improving employee satisfaction by delivering HR services more
quickly and
Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

INTRODUCTION TO IHRM 4
 Harnessing the potential of an HRIS INFORMATION SYSTEMS PROVIDING
The ability of any organization to gain effectiveness and SUPPORT FOR HRM (Table 1.1)
efficiencies from Human Resources Technology depend on such
factors as: Organizational Type of System Major Goal and HRM Example
Level Focus
• the size of the organization, with large firms generally reaping Operational Transaction Processing
System
Improved transaction speed
and accuracy
Payroll processing
Time and attendance entry
greater benefits; Improved efficiency in the
processing of daily business
• the amount of top management support and commitment; transactions
Automation of routine
• the availability of resources (time, money, and personnel); transactions
Reduced transaction costs
Managerial Management Information Provides key data to Producing EE03 reports
• the HR philosophy of the company as well as its vision, organizational System managers Calculating yield ratios for
culture, structure, and systems; Supports regular and
ongoing decisions
recruiting
Calculating per-capita merit
Provides defined and ad- increases
• managerial competence in cross-functional decision making, hoc reporting
employee involvement, and coaching; and Executive Executive Information
System
Provides aggregate, high-
level data
Succession planning
Aggregate data on
Helps managers with long- balanced scorecard
• the ability and motivation of employees in adopting change, such as range planning
increased automation across and between functions (Ngai & Wat, Supports strategic direction
and decisions
2004).
Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

INFORMATION SYSTEMS PROVIDING SYSTEM DEVELOPMENT LIFE CYCLE (SDLC)

SUPPORT FOR HRM (Table 1.1 Cont.)
Organizational
Level
Type of System Major Goal and Focus HRM Example
• Five General Phases:
Boundary Spanning Decision Support Interactive and iterative managerial Staffing needs assessment
System decision-making
Supports forecasting and “what-if”
Labor market analysis
Employee skills assessment
(1) Planning
analysis

Expert System
Supports business simulations
Embed human knowledge into Résumé keyword searches
(2) Analysis
information systems

Office Automation
Automate decisions with technology
Designing documents E-mail training room
(3) Design
Systems Scheduling shared resources scheduling

Collaboration
Communication
Supports electronic communication Communication support for e-
(4) Implementation
Technologies and collaboration between learning
employees
Supports virtual teams
Online meetings and shared
documents
(5) Maintenance
HR departmental wikis
Enterprise Resources
Planning System
Integration and centralization of
corporate data
Orangery
Oracle/PeopleSoft – Begins With Planning And Ends With Continuous
Evaluation
Share data across functional Lawson HRM
boundaries SAP
Single data source and common
technology architecture

Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

INTRODUCTION TO IHRM 5
 SuccessFactors Employee Home Screen A MODEL OF ORGANIZATIONAL
(Figure 1.2)
FUNCTIONING
• Organic model
• HRIS is critical to the efficient operation of an
organization
• Interrelatedness between the strategic
management system, the strategic HRM
system, and the performance goals, business
and HR are generated during the strategic
planning process.

Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

A MODEL OF ORGANIZATIONAL A MODEL OF ORGANIZATIONAL

FUNCTIONING FUNCTIONING
• The HR Goals Drive The HR Programs That Provide
• National Culture Impacts Entire Model Through
Management The Tools For The Efficient And
Strong Effects On External Environment
Effective Use Of Employees
• External Environment Influences Internal Functioning
• The HRIS Has Become Increasingly Important In
Of Organization
Supporting The HR Management System As Well As
In Strategic Planning • Interaction Between Strategic Management System
And Strategic HRM Will Improve The Functioning Of
• HR Metrics And Cost-benefit Results (Value Added
The Organization
And Return On Investment - ROI), Are In Continual
Interaction

Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc. Kavanagh, Human Resource Information Systems, Third Edition© 2015 SAGE Publications, Inc.

INTRODUCTION TO IHRM 6