Chapter 1: Inroduction: Introduction To Human Resource Information System
Chapter 1: Inroduction: Introduction To Human Resource Information System
Chapter 1: Inroduction: Introduction To Human Resource Information System
With an appropriate HRIS, Human Resources staff enables employees to do their own
benefits updates and address changes, thus freeing HR staff for more strategic functions.
Additionally, data necessary for employee management, knowledge development, career
growth and development, and equal treatment is facilitated. Finally, managers can access the
information they need to legally, ethically, and effectively support the success of their
employees.
An effective HRIS provides information on just about anything the company needs to track
and analyze about employees, former employees, and applicants. Your company will need to
select a Human Resources Information System and customize it to meet your needs.
Applications of HRIS
HR planning
Succession planning
Work force planning
Work force dynamics analysis
Staffing
Employee data base development
Performance management
Compensation and benefits
Learning and development
Job evaluation
Benefits management
2
Objectives of study
To understand what is Human Resource Information System is all about because
HRIS
are
often
misunderstood
and
misapplied
because
of
incomplete
3. HRIS would help achieve equality in areas like promotion, transfer, nomination, etc.
4. HRIS helps settle employees dues in time, in respect of provident fund, retirement,
gratuity, L T C. and earned leave compensation, etc.
5. Once the profile of a person is entered in the computer, retrieving the information becomes
easier and also involves less cost and lessens chances of errors.
Some people use two terms data and information interchangeably. But there is a distinction
between the two concepts. Data are raw, unanalysed numbers and facts about events whereas
information is the analysed and organised form of data.
For example, the amount of net profit is a data because no meaning can be assigned to the
absolute figure of net profit. But, profit is expressed as a percentage of sales, it conveys
certain meaning and is called information. N. Upadhya has very concisely distinguished data
from information by stating: Meaningful organized data can be defined as information.
Before we define HRIS, it seems in the fitness of the context to first define -Management
Information System (IMS). MIS is a formal, usually computerised, structure for providing
management with information, relating to internal operations and external factors to facilitate
decision -making process.
Goals and objectives of human resources management system.
HRIS Objective
Operational Efficiency
Effective Communication
Effective HR Planning
HR Information Consolidation
HR Process Automation
HR Big Data
The primary objectives for HRIS is to function as an efficient and responsive system for
managing the human resources of the organization providing complete timely and accurate
information for HRM analysis. This translates into the twin objectives of any HRIS system
Operational Efficiency and Effective Managerial Decision-Making.
The HR Data Model is the most important document for the digitized Human Resources
Office. It describes HR data, how they are structured, where data are stored and which system
acts as the master system providing data to other systems in Human Resources and the
organization. This document makes lives of HR and IT employees simpler because they
know how data flow in HR and the organization.
(Source: James O Brien, Introduction to Management information System)
Human Resources Management System support, the staffing, tactical, and operational
use of the human resources of an organization.
Staffing
Training &
Development
Strategic
Systems
Tactical
Systems
Operational
System
1) Manpower
training
2) Labour force
tracking
1) Labour cost
analysis and
budgeting
2)Turnover analysis
1) Recruiting
2) workforce
planning/
scheduling
Compensation
Administration
1) Succession
planning
2) Performance
appraisal planning
1) Contract
costing
2) Salary
forcasting
1) Training
effectiveness
2) Career
matching
1) Compensation
effectiveness and
equality analysis
2) Benefit
preference
analysis
1) Skill
assessment
1) Payroll control
2) Benefits
Administration
2) Performance
evaluation
pay raises. This, in turn, may affect morale, productivity, and turn-over rates. The evaluation
of employees job performance is an important personnel function and is critically important
to the organization.
Appraisals give the employees an opportunity to contemplate their performance at work. It is
the time when employees look forward to a raise in the salary and a promotion. For the
managers, appraisals are about reviewing the past performance of their employees and
providing them with feedback along with some tips to improve. Performance appraisal is the
means by which the work performance of employees is evaluated. Employee performance is
assessed in terms of the quality and quantity of work he/she has put in. It is calculated in
terms of the time and efforts contributed by the employees in achieving an assigned task.
Reviews of employee performance taken within an organization are known as performance or
employee appraisals. They aim at analyzing employee performance, identifying their
potential and inabilities, in order to determine the employee training needs. They also aim at
taking decisions about salary revisions and promotions of employees. Ideally, a performance
appraisal should give way for an open communication between the employees and their
manager or employer. It should provide the employees with the means to communicate their
points of view about the organization structure and openly discuss the difficulties they face (if
any) at the workplace.
Various text recommend that the evaluation be implemented carefully and that they should be
used only for employee self evaluation and development. The individual ratings should be
kept confidential and should be fairly short. It is also recommended that training must be
conducted for both giving and receiving feedback before the program is implemented, and the
program should be evaluated periodically and modified to meet the changing needs of the
organization. The evaluation should be fairly short and that it should be able to be completed
in about thirty 30 minutes.
The performance on which the employee is being rated should be clearly understood and
related to the position held. There should be a minimum of five to six evaluators to protect
anonymity and provide sufficient perspective. The immediate supervisor of the appraisee
should receive the completed evaluations. He should tabulate them onto a clean form with the
comments interpreted or paraphrased to assure anonymity before discussing the composite
rating with the employee being evaluated.
Report 2
Seems to suggest that turn-over could be reduced, as over 97% of those who have left
employment with the county have done so willingly. A very high number of employees
leaving the organization within the first four years of employment, as displayed in report
Overview of Employee Turnover Research. The impact of turnover has received considerable
attention by senior management, human resources professionals, and industrial psychologists.
It has proven to be one of the most costly and seemingly intractable human resource
challenges confronting organizations. This paper provides a summary of information,
abstracted from published research, on the costs of turnover, factors contributing to its
magnitude in organizations, and proposed remedies. Costs of Turnover Analyses of the costs
associated with turnover yield surprisingly high estimates. The high cost of losing key
employees has long been recognized. However, it is important for organizations to
understand that general turnover rates in the workforce can also have a serious impact on an
organization's profitability, and even survival. There are a number of costs incurred as a
result of employee turnover. These costs are derived from a number of different sources, a
few of which are listed below.
Recruitment of replacements, including administrative expenses, advertising, screening and
interviewing, and services associated with selection, such as security checks, processing of
references, and, possibly, psychological testing. Adopting an effective applicant screening
procedures is an efficient and cost effective method of identifying employees who possess the
necessary traits and behavior s to succeed on the job and are, therefore, less likely to leave.
SIGMA's Employee Screening Questionnaire (ESQ) measures both productive and
counterproductive job behaviors and, as such, provides employers with a tool for reducing
involuntary turnover resulting from poor selection decisions. In addition to reducing
involuntary turnover, the ESQ also has the ability to reduce voluntary turnover by identifying
those applicants who are likely to be satisfied and committed to their jobs.
There is a large body of academic research supporting the intuitive contention that people
who are satisfied with their jobs and committed to their employing organization are more
likely to stay than those who are not (e.g. Griffeth, Hom, & Gaertner, 2000; Maertz &
Campion, 1998; Meyer, Stanley, Topolnytsky, & Herscovitch, 2001). In summary, the ESQ
offers employers an effective and practical method for dealing with turnover and reducing its
associated costs.
10
Report 3
Shows the level of employee sick leave for each month of the year in the peak months appear
to occur during the height of extreme weather patterns, such as January and July. Though
these trends may be coincidence the report could also indicate that employee wellness and
well-being is not encouraged.
Corporate wellness programs are designed to nurture wellness in workers, regardless of the
work environment. Corporate Wellness programs could be found in factories, corporate
offices, large corporations, and small corporations alike.
Having an Employee Wellness program in place can boost morale, improve health and fitness
and increase productivity in the workplace. Now that you have taken the steps necessary to
begin an Employee Wellness program, how do you get your workers interested and willing to
participate in a workplace health promotion program? Workplace wellness programs come in
all shapes and sizes. But regardless of plan design there are five common components that set
the successful programs apart from the rest.
How does a worksite wellness program affect a company? Worksite wellness programs
undoubtedly benefit both the corporations and staff members. Numerous studies have found a
direct link, showing that healthful staff members make happy staff members, hence
increasing productivity in the workplace.
Report 4
Also supports the notion that turn-over is high. Though reports for earlier years regarding late
performance evaluations has not been provided it may be assumed that those who have the
longest number of service years with the organization may not have the experiences of
waiting for performance evaluations for raises as those who are newer to the organization.
High rates of employee turnover are indications that employees are not satisfied in their jobs.
Certainly waiting too long for raises can be one cause. According to Houlfort, Koestner,
Joussemet, Nantel-Vivier, and Lekes (2002) rewards undermined intrinsic motivation when
they were presented in a controlling manner. In addition to waiting several months for the
performance evaluation, employees must wait an additional indefinite amount of time for late
performance evaluations and potential rewards such as pay increases. Making employees
wait, whether intentional or unintentional may give the impression that they employer is in
11
control and that the employee has no recourse except to wait for rewards. When employees
are not recognized for their contributions they lose interest and will look for other
opportunities that offer immediate or certain rewards.
High turnover can often be a result of mass hiring and little autonomy. Giving employees
some Lee way to make mistakes and learn on their own allows them to see the value in their
efforts. Though pay raises are one measure of reward, new employees must feel they are able
to increase their contributions through new opportunities and responsibilities.
Report 5
Which is a personnel report of a single employee reinforces the notion that employee
wellness is not a concern. The specific employee has taken 40 to 50 days of unpaid leave on
many occasions, with no paid vacation time during many years of her employment.
According to the most recent CCH Unscheduled Absence Survey, employers are losing
ground when it comes to keeping workers on the job. Unscheduled absenteeism rates have
risen to their highest level since 1999. What continues to be of most concern is that almost
two out of three employees who dont show up for work arent physically ill.
For most companies, the responsibility for managing absenteeism has fallen primarily on
immediate supervisors. These supervisors are often the only people who are aware that a
certain employee is absent. They are in the best position to understand the circumstances
surrounding an individuals absence and to notice a problem at an early stage. Therefore,
their active involvement in the companys absence procedures is pivotal to the overall
effectiveness and future success of an absence policy or program.
In addition to ensuring that work is appropriately covered during the employees absence,
there are a number of other critical actions that supervisors need to take to manage
absenteeism. They should:
Ensure that all employees are fully aware of the organizations policies and procedures for
dealing with absence,
Be the first point of contact when an employee phones in sick,
Maintain appropriately detailed, accurate, and up-to-date absence records for their staff,
(e.g., date, nature of illness/reason for absence, expected return to work date, doctors
certification if necessary),
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Identify any patterns or trends of absence which cause concern, conduct return-to-work
interviews, and
Implement disciplinary procedures where necessary.
Though the employee may have a specific reason for taking unpaid leave she may also be
suffering from stress related illness. The suggestion to address sick leave issues is to
implement a new employee wellness program that offers benefits to employees for
participation.
A corporate wellness program can boost productivity and reduce indirect costs such as workrelated injuries and disability claims (TU & Mayrell, 2010). The use of onsite health
practitioners or contract vendors that work with the employer to And employees to improve
wellness can be beneficial to an organization of any size. An onsite Wellness center staffed
with care providers may be too costly for the county but an offsite vendor can cost effectively
help employees address work related and other health issues (Tu & Mayrell, 2010). In
addition, exercise facilities that encourage movement can help reduce workplace stress.
In addition report #5 which is a personnel file of a specific employee, it appears as though she
was able to move through the ranks rather quickly in the early years of her employment.
However, as her length of employment increased, her number of opportunities for her either
dwindled or became unreachable. It is also possible that the organizations process for
movement within the company is either too difficult for many employees to seek out new
opportunities or uses a process such as outside hiring for higher positions.
It is recommended that the organization develop a tracking program or mentorship program
to give those with specific interest in higher positions an opportunity to prove themselves and
to seek better opportunities. Mentors can serve as role models for expected behavior within
the organization and allow those being mentored to develop appropriate skills to fill new
positions over time, rather than expecting them to develop overnight (Kirchem, 1998).
Employees who see that the organization is willing to invest time in their careers are more
likely to remain interested in their work and to maintain a certain level of motivation to
perform. In addition to mentoring programs the organization must find a way to address the
issue of late performance evaluations. It is recommended that the organization implement an
online system for tracking human resource functions such as evaluations, raises, tenure,
13
vacation, and benefits. This system should also be accessible to employees, so they will know
exactly when their evaluations are due and can inquire when evaluations are due.
In addition, the development of 360 degree evaluation should be initiated by human resources
so that employees are more likely to receive timely evaluations. While the 360 degree
evaluation provides a more well-rounded view of the employees performance, it may also
motivate managers to complete their portion of the evaluation process. When managers
realize others co-workers and subordinates have already completed their portion of the
employee evaluation they may be more likely to complete their portion to set an example for
timely completion of tasks.
Jones (2008) suggests organizations set aside more time than is needed to conduct
evaluations and that managers begin early so that evaluations are completed on time. To
ensure timely completion the online system can provide reminders and warnings for
managers. A reward system for managers should include timely completion of employee
evaluations.
14
Tata Consultancy Services Limited (TCS) (BSE: 532540, (NSE:TCS)), is a software services
and consulting company headquartered in Mumbai, India. It is India's largest provider of
information technology and business process outsourcing services. The company is listed on
the National Stock Exchange and Bombay Stock Exchange of India. TCS is part of one of
India's largest and oldest conglomerates, the Tata Group, which has interests in areas such as
energy, telecommunications, financial services, manufacturing, chemicals, engineering etc.
Tata Consultancy was established in the year 1968 and is considered a pioneer in the Indian
IT industry. Despite unfavourable government regulations like the Licence Raj the company
succeeded in establishing the Indian IT Industry. It began as the "Tata Computer Centre", a
division of the Tata Group whose main business was to provide computer services to other
group companies. F C Kohli was the first general manager. The legendary JRD Tata was the
first chairman, followed by luminaries such as Nani Palkhivala. One of TCS' first
assignments was to provide punch card services to a sister concern, Tata Steel (then TISCO).
It later bagged the country's first software project, the Inter-Branch Reconciliation System
(IBRS) for the Central Bank of India. It also provided bureau services to Unit Trust of India,
thus becoming one of the first companies to offer BPO services. In the early 1970s, Tata
Consultancy Services started exporting its services. TCS's first international order came from
Burroughs, one of the first business computer manufacturers. TCS was assigned to write code
for the Burroughs machines for several US-based clients. This experience also helped TCS
bag its first onsite project - the Institutional Group & Information Company (IGIC), a data
centre for ten banks, which catered to two million customers in the US, assigned TCS the task
of maintaining and upgrading its computer systems. In 1981, TCS set up India's first software
research and development centre, the Tata Research Development and Design Center
(TRDDC). The first client-dedicated offshore development centre was set up for Compaq
15
(then Tandem) in 1985. In 1989, TCS delivered an electronic depository and trading system
called SECOM for SIS SegaInterSettle, Switzerland. It was by far the most complex project
undertaken by an Indian IT company. TCS followed this up with System X for the Canadian
Depository System and also automated the Johannesburg Stock Exchange (JSE). TCS
associated with a Swiss partner, TKS Teknosoft, which it later acquired. In the early 1990s,
the Indian IT outsourcing industry grew tremendously due to the Y2K bug and the launch of
a unified European currency, Euro. TCS pioneered the factory model for Y2K conversion and
developed software tools which automated the conversion process and enabled third-party
developers and clients to make use of it. In 1999, TCS saw outsourcing opportunity in ECommerce and related solutions and set up its E-Business division with ten people. By 2004,
E-Business was contributing half a billion dollars (US) to TCS. On 9 August 2004, TCS
became a publicly listed company, much later than its rivals, Infosys, Wipro and Satyam.
During 2004, TCS ventured into a new area for an Indian IT services company Bioinformatics.
HRIS system at TCS
The Human Resource model is both flexible and adaptable. It is flexible, so that you can
control different groups within the same company. It is adaptable, so that you can easily
Change the basic model as your enterprises changes.
People
In HRIS, you can hold information about current and former employees, applicants, external
contacts such as contractors, and employee contacts such as relatives and dependents. In
addition to standard information such as addresses, nationality, interview records,
qualifications, and absence information, you can define any other special information you
need to hold for people. For example, you can define what information to hold on medical
history, previous employment, or outside interests. You can also record employment
information, such as hours of work and work choices. HRMS holds one integrated set of
employeerelated information. Payroll users access the parts of this information they require,
while enterprise business rules determine who is responsible for entering and maintaining it.
Work Structures
Work structures represent the different ways in which employees can work within your
enterprise. They provide the framework for defining the work assignments of your
16
employees. They enable you to manage the information about your enterprise that is
independent of your employees. You can also think of work structures as representing the
organizational units of your enterprise. The Business Group is the largest unit and represents
your enterprise as a whole. The work structures include your internal organizations (such as
departments or divisions), payrolls, jobs or positions, grading structures, and any special
employee groupings that you use in your enterprise. There is one integrated set of work for
human resources and payroll structures.
17
Common information
The common core of fundamental information used for human resources, payroll and benefits
administration includes:
Your operational basics
Payrolls with their calendars and pay periods
Currencies and methods of payment you use
19
One of the most important features of Oracle HRIS is the ability to define payrolls. A payroll
is a set of employees whose pay you process with a single frequency, for example, weekly or
monthly. You can define as many payrolls as you require to meet the pay policies of your
enterprise. You put an employee on a payroll by making an assignment to the payroll. You
can also assign employees to other employee groups: for example, groups to indicate
membership of a union or social club.
Cost analysis
Oracle HRIS enables you to enter the labor costs associated with your employees. You can
use the Cost Allocation key flex field to set up account and cost centers against which you
want.
Workforce management using HRIS
HRIS provides you with an easy, efficient and flexible employee management system that
enables you to organize employees exactly as you want. You can hold a wide range of
personal information, such as medical details, work schedules and preferred language for
correspondence, as well as the basics such as date of birth, employee number and addresses.
You can also enter personal contacts, including dependants and beneficiaries and inquire and
report on people held on the system. You also need to record and manage how people work
for your enterprise. This information is the substance of the relationship, or contract, an
enterprise has with each of its employees. It associates the employee to the enterprises work
structures and compensations and benefits policies.
Recruitment
Oracle HRMS provides comprehensive recruitment support, enabling you to integrate all
your recruitment processes, from identifying vacancies to hiring new employees. Using
Oracle HRMS, you can set up your recruitment procedures exactly as your enterprise
requires. In particular, you have flexible control over the following key areas:
Recruitment and selection procedures
Security of applicant information
Handling of bulk applications
Generation of standard letters to applicants at different stages of the recruitment process
20
21
There is a DateTrack: Date Security user profile option, which determines whether you can
change your effective date. Your system administrator sets this profile option. You can check
its value on the Personal Profile Values window.
There are four possible values all you can change to any other effective date.
Future: You can change between todays date and any future dates.
Past: You can change between todays date and any past dates.
Present: You cannot change to a date other than today.
22
When an international firm asked Anderson Consulting to devise a new human resource
package, savings of 2 million a year were made
In 1997, Motorola decided to replace the paper-based system it used to process human
resource and payroll information. As error prone and inefficient as this paper-based system
was, more serious was the lack of standard human resources practices. Motorola SPS
operates in over 50 countries and has 30 factories worldwide, including sites in the US,
Europe and the Far East, and it was proving hard to track varying human resource policies in
different territories.
Motorola SPS approached Andersen Consulting to devise and implement a new system that
would solve these problems.
The human resource system that Andersen Consulting envisaged would be required to
perform two main tasks:
To collect and process human resource and payroll information
To allow both managers and employees access to this information
"Our ultimate goal is to build a global human resources system infrastructure in which
managers and their employees can use the human resources system, along with third-party
service providers, to process human resources-related data." Andersen Consulting.
To provide a consistent base of human resource information worldwide, Andersen Consulting
recommended the use of SAP's R/3 Human Resource System version 3.0 as the software
23
standard for processing employee and payroll data. During the 16-month duration of the
project, Andersen also acted as advisor in the configuration of the system, establishing a base
of operations within Motorola SPS to handle employee training and collect information from
vendors.
The use of a single method of processing data brought Motorola one step closer to
standardising human resource transactions. Now, employee data from any international
territory could be processed and stored in the same way. The new system also allowed
Motorola to centralise all its human resource data for the US in a single facility - the Service
Centre in Phoenix, Arizona.
However, this was only one aspect of the project. To allow managers and employees to
access this data, a custom network had to be designed. This was dubbed ENET - The
Employee Self Service Network.
ENET, an intranet-based, system was devised with two main functions in mind. On one hand,
employees were able access their own personal data using a web-browser. On the other,
managers were able to check and approve the status of personnel transactions such as a
change in job or salary. Additionally, ENET was also designed to link other types of
information including career development materials, details of courses in the Motorola
University and documents on company policies.
As standardisation of human resource policy was such a key area of concern, ENET was
designed to check data automatically, ensuring a common format was established, reducing
the need for manual data validation.
Crucially, adopting an intranet based application such as ENET allowed Motorola SPS to
establish an International Human Resource policy, defining set practices in areas such as
salary adjustments, departmental changes, processing new employees and changes in status
of current employees. Any changes in human resource policy could now be implemented
simultaneously in all territories.
Between 1997 and 1999, the new ENET/SAP system was established in all Motorola SPS
territories including sites in the US, Hong Kong, Europe and the UK. The initial Andersen
Consulting development team of 16 was reduced to a support team of six.
24
Motorola SPS is expected to save approximately 2 million a year by reducing the amount of
time required for basic administrative tasks in human resource departments.
Updates of the ENET are currently being planned to include greater facilities for processing
more specific employee data such as personal skills or languages.
"The way Enet has changed the way I interact with my managers and employees means that I
have 100 per cent faith in being able to provide information that I know is available and
accurate. It creates a lot of pride in the human resources organisation and energy around
promoting this system. I'm not afraid that Enet is not going to deliver, it already has." - John
Morgan, human resources manager, Motorola SPS.
25
26
Solution
They
identified
their
specific
needs
in
just
few
minutes
by
completing
HRPayrollSystems.nets free online HRIS Vendor Match Tool. Within the hour, HR Payroll
Systems called to confirm their information and obtain further detail on their specific needs.
Within a few days, five HRIS providers were selected as quality matches to the clients needs
and the client moved into screening.
Global Data Systems short-listed three HRIS vendors selected by HR Payroll Systems as the
best fits for their needs and began moving forward. The process included initial screening
calls, demos and then RFPs. The client dramatically reduced the overall burden of research
which allowed the process to be highly focused on evaluating HRIS vendors as opposed to
searching for them.
2) Compass rock
Working with an existing PEO model combined with a separate payroll service. They wanted
to move to a comprehensive HRIS with all features under a single umbrella. The key factors
they were looking for were core-HR, payroll, time and attendance, benefits management with
employee self-service. Additionally, they were sensitive to how expensive some of the
systems could be and wanted to get the greatest value.
As they began looking, they quickly determined that there were too many options in the
market. They came to HR Payroll Systems (http://www.hrpayrollsystems.net) to define their
overall needs and receive recommendations on the systems that would best fit their specific
needs.
Problems
Migration to a comprehensive, single system of record for
HRIS functions
Finding the greatest value
27
Transitions Group, is an employee owned, industry leader that manages: Furniture Options,
ExecuStay Midwest, and Abode Venue. They were using a paper based model for all of their
HR management and were outsourcing payroll. They determined that it was time to acquire
an HRIS system because of the overwhelming need to manage benefits. They wanted to
move to a comprehensive HRIS with all features under a single umbrella.
The key factors they were looking for were benefits administration, payroll, time and
attendance, core employee data and employee self-service. Additionally, they were looking
for a system that brought the greatest amount of value. They knew that there were hundreds
of systems on the market and they began their research with a simple Google search
(HRIS). They turned to HR Payroll Systems (www.hrpayrollsystems.net) to define their
overall needs and receive recommendations on the systems that would best fit their specific
needs.
28
Problems:
Comprehensive, single system of record for HRIS functions
Finding the greatest value
Looking for vendors with specific functionality
Hundreds of options in the marketplace and wanted to narrow down their options
Solution
They spent a few minutes identifying their specific needs by completing HRPayrollSystems.
Nets free online HRIS Vendor Match Tool. Within a few hours, HR Payroll Systems called
to confirm their information and obtain further detail on their specific needs. In a few days,
four HRIS providers were selected as quality matches with the clients needs and the client
moved into screening.
Transitions Group identified two of the four HRIS vendors selected by HR Payroll Systems
as the best fits for their needs and began moving forward. The process included initial
screening calls, demos and then RFPs. The overall client burden of research was reduced
dramatically and allowed the process to be highly focused on evaluating HRIS vendors as
opposed to searching for them.
HRIS compared the percent of time on each project with the total time worked to help check
the integrity of the data. With the help of HRSource HRIS, the user can now track which
individuals are assigned to which grant, how much has been spent, how much remains, and
what the burn rate is. Additionally, the client can determine when employees will complete a
project and be available for the next project.
c) HRnetSource HRIS uses the best of both worlds: web-based ESS/MSS and corporate
data housed internally for maximum security and control
The problem:
A new Internet software company wanted HR data (such as the Employee Handbook, benefits
descriptions, and the office directory) to be available online, 24/7 for all its employees who
were located in different states. The company also wanted employees and managers to take
responsibility for updating their own personal data. The solution needed to be clean and
simple, easy to implement, and, for a small company with a limited budget, it needed to be
affordable.
The solution:
Auxillium West's HRnetSource uses a powerful web tool to enable employee and manager
self-service. With the click of a button, the company's HR department synchronizes the web
30
5) IBM Europe
The Poblem:
IBM is a global organization offering research, software, hardware, IT consulting, business
and management consulting, ring and financing. It employs around 340,000 people, speaking
31
165 languages across 75 countries, and serving clients in 174 countries. In January 2007, IBM
established a separate new media function within its corporate communication department.
IBM main goal is to educate, support, and promote programs that utilize social media. IBM
Europe decided to expand internal communication by blogging guidelines. The recognition
was that blogging was already happening among IBMers, just in an unregulated way. In a
similar way, institutionalizing a function to deal specifically with new media is not a corporate
move, or establishing from scratch. Its a response to the issues already emerging in the
company. Now that those technologies are here, people are using them, theyre growing and
there here to stay-were just going to put some structure around them so that we can try to
optimize their use. The users decide what technologies they want to use and how they want to
use them. That main idea is that IBM understands that they must remember to respect the fact
that social media are social. IBM had the need to connect its 340,000 global employees more
effectively.
The Solution
IBMs intent around social media has now been officially formalized. From January 22 2007,
the company established a separate new media function within its corporate communication
department. Its remit: To act as expert consultants inside and outside IBM on issues relating
to blogs, wikis, RSS and other social media applications. The main idea is to educate, support
and promote programs that utilize these tools. IBM has a history of being a t the forefront of
technology based corporate communication. From the multimedia brainstorming WorldJam
that made news headlines back in 2001 in which 50,000 employees worldwide joined a real
time, online idea-sharing session about the companys direction. IMB has always prepared
itself to use breakthrough technologies to establish a two-way dialogue with its employees.
The need for social media was necessary and could no longer wait.
6) Ameriprise Financial
The Problem:
The Department of Justice survey estimates that 3.6 million U.S. households were victims of
identity theft in 2004. Trafficking in personal date goes beyond U.S. borders: the New York
Times reports that stolen financial information is often distributed among participants of online
trading boards, and the buyers are frequently located in Russia, Ukraine, and the Middle East.
One reason clients are concerned about data security is the widespread publicity generated by
breaches at financial services firm. In late December 2205, an Ameriprise Financial
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employees laptop that contained unencrypted data on approximately 230,000 customers and
advisors was stolen from a car. Other financial services firm, including Citigroup and Bank of
America, also acknowledge large-scale customer data losses in 2005. President of NCS, Rita
Dew, a compliance consulting firm in Delray Beach, Florida, says that the Securities and
Exchange Commission requires investment advisors to have policies and procedures that
address the administrative, technical, and physical safeguards related to client records and
information.
The Solution:
Ameriprise Financial had to fight back and had to implement layers of protection. It is
important for employees who their primary business computer, and employees regularly
transport the computer between home, office, and meeting sites. The vulnerability of this
arrangement and the need for a safety software program is much needed.
7) Terasen Pipelines
The Problem:
Terasen Pipelines is a subsidiary of Terasen Inc. located in Vancouver, Canada and is located
in several provinces and U.S. states. In 2001 the company changed its headquarters to Calgary
to be closer to the oil. With the big move, the company went through a growth spurt. With the
company in many different locations and the growing numbers of employees, the HR
department saw a need to find a new system to keep more accurate records.
The Solution:
In the past Terasen had kept records on paper and with spreadsheets and with the growth of the
company, this system does not work as well as in the past. In order to compensate for future
growth, Terasen began to look into HRIS companies to help with the HR operations. After
researching different companies, Hewitts application service provider model with eCyborg
was found to be the right fit.
8) Shaws Supermarkets
The problem:
Shaws Supermarkets is the second largest supermarket chain in New England. With a
workforce of 30,000 located at 180 stores throughout six states, Shaws HR staff is responsible
for managing employees personal data. Their employee mix includes approximately 70
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9) CS Stars, LLC
The problem:
New York Attorney General Andrew Cuomo has announced that New York State has reached
its first settlement with a company charged with failing to notify consumers and others that
their personal data had gone missing. Cuomos office, which enforces the states 2005
Information Security Breach and Notification Law, charged CS STARS LLC, a Chicago-based
claims management company, with failing to give notice that it had lost track of a computer
containing data on 540,000 New Yorkers workers comp claims.
The solution:
The owner of the lost data, which had been in the custody of CS STARS, was the New York
Special Funds Conservation Committee, an organization that assists in providing workers
comp benefits under the states workers comp law. On May 9, 2006, a CS STARS employee
noticed that a computer was missing that held personal information, including the names,
addresses, and Social Security numbers of recipients of workers compensation benefits. But
CS Stars waited until June 29, 2006, to notify Special Funds and the FBI of the security
breach. Because the FBI declared that notice to consumers might impede its investigation, CS
STARS waited until July 8, 2006, to send notices to the 540,000 New Yorkers affected by the
breach. On July 25, 2006, the FBI determined an employee, of a cleaning contractor, had
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stolen the computer, and the missing computer was located and recovered. In addition, the FBI
found that the data on the missing computer had not been improperly accessed.
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TAMS, an independent group company of Toshiba Corporation and a global leading provider
of diagnostic medical imaging systems and comprehensive medical solutions, such as CT, Xray, ultrasound, nuclear medicine, MRI, and information systems, had been using a payroll
service bureau and an in-house solution for HR that didnt include easy-to-use consolidated
reporting or an employee portal. After evaluating UltiPro alongside several enterprise
resource vendors, TAMS selected Ultimate Softwares offering and went live in September
2002 after an on-time and on-budget implementation. Almost immediately upon rolling out
the UltiPro portal to employees, TAMS began seeing improvements, with an estimated 70%
increase in open enrollment efficiency (Wojcik, 2004)
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CHAPTER 6: FINDINGS
In the ever-changing world in which we live, new technology is continually being developed.
This change requires organizational leaders to be cognizant of the different types of
technology which could improve the organizational effectiveness.
Human Resource Information Systems (HRIS) have drastically evolved since they were
first introduced more than 50 years ago they have gone far beyond their original purposes of
converting paper records into computerized databases. In modern times, HR/payroll systems
are able to handle several of HRs numerous functions. HR Software is now full of features
and self-contained not just the data storage systems we once knew them as. Modern HRIS
systems are now tools that HR Professionals can use on a daily-basis for several purposes.
Companies have taken the steps to transform the ways by which HR tasks are performed in
attempts to keep up with rising employee counts and the evolution of technology.
In the past, companies were used to tracking data on paper and spreadsheets. However, with
technological advancements many companies have realized the need to implement more
sophisticated computerized systems, like Human Resource Information Systems. By moving
to HRIS, companies are able to keep more accurate and up-to-date records, allowing them to
better prepare for future growth in their companies.
HRIS solutions are more than just employee data houses they can also be leveraged for
critical decision-making through tools such as Manager Self-Service. In addition, they offer
employees the ability to view pay stubs electronically, request time-off and submit electronic
timesheets. Through the integration of various human resources functions, organizations are
able minimize waste and cost through HRIS systems.
The internet has become an attractive place for recruiting applicants and performing many
other important business functions. By having HR systems online, organizations are able to
support more efficient and cost-conscious collection, storage, sharing, and exchange of data.
The same is true organizations intranetsserving as an information hub for the entire
organization; an intranet can be given to business partners, as well as clients who have the
appropriate level of security clearance.
The efficiency of HRIS solutions has enabled companies to produce more effective and
efficient results than what can be accomplished on paper. Among the several applications of
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Outcome of Motorola
By adopting an intranet based application such as ENET allowed Motorola SPS to establish
an International Human Resource policy, defining set practices in areas such as salary
adjustments, departmental changes, processing new employees and changes in status of
current employees. Any changes in human resource policy could now be implemented
simultaneously in all territories.
The initial Andersen Consulting development team of 16 was reduced to a support team of
six.
Motorola SPS is expected to save approximately 2 million a year by reducing the amount of
time required for basic administrative tasks in human resource departments.
Outcome of Compassrock
The Compassrock determined that in addition to specific technical functionality, they really
wanted a high level of customer service and identified the right system for their firm and
moved forward with purchase and implementation.
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that serves as data storage safe. Employees stores all client related data and tax preparation
software database on the encrypted drive, which employees has set up with one gigabyte of
storage space. The best thing is that when an employee turns off the computer the information
is stored safe, the software automatically encrypts the virtual drives data. The software
also generates encrypted backup files, which employees store on CDs in a fireproof safe. This
should keep the data secure if any employees laptop is stolen or if the drive is removed from
the laptop. Other financial advisors are relying on encryption both in and out of the office.
Other programs that are being used to protect clients information are RAID Level 1 system
to store data on the drives that are encrypted with WinMagics SecureDocs software.
Encryption ensures that anyone who steals the computer will be absolutely unable to read the
data, even by connecting it to another computer as a slave drive. This has given many
financial advisors the greatest peace of mind.
The Outcome Shaws Supermarkets:
Shaws has had positive feedback since implementing the ESS solution. The reaction from
our employees has been extremely positive, Penney, VP of Compensation and Benefits,
says. We even had a significant increase in our medical coverage costs, and it was almost a
non-issue because the online enrollment featured the plan choices, the employee cost, and the
company subsidy. An employee self-service application makes it very easy for them to
understand their contributions and coverage options. I received several e-mails from
employees saying this was a great change and how easy ESS was, which the case is not often
when employees are selecting their benefit options. (Koven, 2002). By giving the employees
more access to their information they are able to see the benefit choices available to them.
Employees are also able to update their information online, which helps reduce the
paperwork of the past. Shaws has also seen improvement in productivity because employees
are updating information at home, not during work hours.
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dealings with their customers, but employers in their role as custodians of employees
personal data.
Without admitting to any violation of law, CS STARS agreed to comply with the law and
ensure that proper notifications will be made in the event of any future breach. The company
also agreed to implement more extensive practices relating to the security of private
information. CS STARS will pay the Attorney Generals office $60,000 for costs related to
this investigation. (Cadrain)
The Outcome of WORKSource Inc
Mastering the concepts of LEAN led Hahn to develop and apply her own acronym of
REASON to her departments payroll and HR processes. Review the process: map payroll
tasks from start to finish. Eliminate waste: determine how to complete a payroll task most
efficiently without unnecessary steps. Analyze alternatives: research and evaluate the
applicability of new technology. Sell innovations to management: document the return on
investment of each innovation. Open the lines of communication: communicate openlyand
oftenwith all stakeholders, including employees and top management. Never allow
negativity: make change simple and fun. Give employees plenty of encouragement and time
to learn (Tips, 2006). Judith Hahn was able to implement the right human resource
functions using information systems.
The Outcome of Toshiba America Medical Systems Inc.
In an effort to expand the usage of the Web beyond the benefits enrollment process, TAMS
has posted a library of documents and forms on its HR portal, including the benefits
handbook, which garnered a 2004 Apex Award for publication excellence. That same year,
Business Insurance magazine also gave TAMS the Electronic Benefit Communication (EBC)
award for outstanding achievement in communicating employee benefits programs over the
Web. To continue elevating its use of Ultimate Softwares HRMS/payroll solution, TAMS
modified the UltiPro portal to meet the imaging companys unique needs (Wojcik, 2004). It
was completely integrated with several proprietary applications created to address
compensation and performance management issues so that TAMS employees have a central
location for comprehensive workforce and payroll information from a Web browser that they
can access with a single sign-on (Wojcik, 2004).
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CHAPTER 7: SUGGESTIONS
Because an organization is looking for efficiency, the decision is to go with the web-based
HRIS at this time. The EPR is too costly for organizations in this economy and especially for
the public sector where the community scrutinizes every dollar spent. Private industry that is
doing well, even in todays economy, might can afford an ERP plan. However, for most
organizations it is too costly.
Finding the right web-based HRIS system for your organization. The system should be
equipped to handle your organizations goals. It should also be secure. With a centralized
web-based HRIS to support the HR department, the organization has had the ability to
successfully track, manage, and control their most valuable asset, the employees.
A company should have a good security system
Once companies adopts HRIS technology they have to be particular and careful about
security of their database and other documents they should adopt proper security plan in there
system so their data cannot get hacked or leaked.
A system which is not accusable to all but not to one person only too
A company should not give freedom to access all data to all the employees in the organisation
but it also should not have a system which is only accusable to one in such situation company
may face problem in absence of one particular problem.
Always Keep Data in Mind
Migrating data is a vital part of moving to a new HRIS system. In the companys current
climate, data may reside in multiple places or systems. It is important to tie all of that data
together. Bringing the data under one umbrella is a vital part of the new changes that will take
place
Be Specific about Requirements
Each business will have its own requirements for HRISthey must be outlined as clearly as
possible, before everything is done. After the requirements are in place, it is possible to track
all required data in an efficient manner.
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had a real challenge with staying focused and was over budget on the majority of his
projects.
Track Hours If the project is a long one, make sure to track the hours worked by the
consultant. Believe it or not, very few of the companies I worked with actually did
this.
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CONCLUSION
Initial findings from studies suggest that although new or upgraded HRIS systems are being
used to automate and devolve routine administrative and compliance functions traditionally
performed by the HR function, the potential for this technology to be used in ways that
contribute to the strategic direction of the organisation is not being realised. More
specifically, our results suggest that the opportunity to enhance HRs role as strategic partner
as a result of the use of HRIS is being hindered by three main challenges. The first challenge
relates to the ability to maintain the levels of senior management commitment and resources
needed to implement and manage new or upgraded HRIS. The second concerns managing the
complexity of the HRIS and its associated functionality. The third challenge stems from
barriers associated with the acceptance of HRIS among key managers and employees along
with the importance attached to managing the change processes associated with the
implementation and introduction of the new or upgraded systems.
These challenges
demonstrate that the material, functional characteristics of technologies such as HRIS are
complex and make them difficult to introduce and operate. At the same time, and in line with
a social constructionist approach to the study of technology each of the challenges illustrates
that how and when a technology is used is also determined by the agency of its users and the
social context within which it is adopted .
In sum, only through an appreciation of both the material and the social can a more informed
understanding of the challenges that surround HRIS implementation and operation be
obtained. In this respect, our findings are in contrast to the more technological deterministic
view of earlier studies of HRIS that suggest that it is simply the technology itself which has
implications for the changing role of HR.
It can be seen then that the social context of HRIS plays an important role in shaping user
perceptions and behaviour From a technologies-in-practice perspective user interactions with
the facilities, norms, and interpretative schemes associated with HRIS are affected not
only by its technological complexity, but also by problems concerning the management of,
and commitment to, its implementation. These socio-contextual factors are compounded by
the fact that each case study organisation has experienced significant change, for example in
ownership and structure. Underlying the three challenges is the issue of how various social
groups, or key actors involved in the implementation and use of HRIS bring to bear their own
interests and thus interpretations of the system and what it does. As a result of this process,
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the design, selection and use of HRIS are shown in this study to be subject to contestation as
a range of meanings are attached to the technology that either undermine or highlight its
perceived value and significance and which impact on the extent to which it is to be used in a
strategic or more administrative fashion. Significantly, the study suggests that interpretations
which run counter to HRIS being used in ways that realise its strategic potential are currently
winning the day. Overcoming these interpretations of HRIS and replacing them with one that
leads to its being used to inform business strategy requires organisations to identify and
systematically address the three challenges we have identified. Until this takes place, the
potential of HRIS to enhance the strategic role of the HR function is likely to remain
unrealised and with increased opportunities for automation and the corresponding
opportunities for outsourcing, the organisational role for HR is in danger of being diminished.
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BIBLIOGRAPHY
BOOKS
1) Human Resource Information Systems: Basics, Applications, and Future Directions
-Michael J. Kavanagh
2) Introduction to Management information System, IRWIN, 1997.
-James O Brien
NEWSPAPERS
1) Economic Times ascent
2) Financial Express
REPORTS
The Impact of Human Resource Information Systems: An Exploratory Study in the Public
Sector
-Nicholas Aston Beadles , Christopher M. Lowery ,Kim Johns
WEBSITES AND REFERENCES
www.Scribd.com
www.managementparadice.com
http://www.unicornhro.com/articles/some-not-so-surprising-effects-of-human-resourceinformation-systems--what-to-expect
https://www.academia.edu/9144669/Hris_at_Tcs_By_Studymode.com_HRIS_HUMAN_RESOURCE_INFORMATION_SYSTEM
http://www.computerweekly.com/feature/Case-Study-Motorola-implement-a-new-humanresources-system
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