Chapter 1. Evolution of Human Resource Management and Human Resource Information Systems: The Role of Information Technology

Transcription

1 Chapter 1 Evolution of Human Resource Management and Human Resource Information Systems: The Role of Information Technology

2 HISTORICAL ERAS IN HRIS Pre-world War II Reactive, Caretaker role Record Keeping Manual Scientific Management Philosophy Not Major Part Of Business Few Government regulations

3 POSTWAR: Importance Of Employee Morale HR Part Of Operating Costs, Not In Mainstream Labor Unions established Job descriptions gain popularity Payroll Function among the first for automation Job Analysis, employee skills begin to be tracked R & D In Selection Mainframe Usage By Defense Industry In HR

4 SOCIAL ISSUES PERIOD: Social Issues Legislation Impact HR Protector Of Employees Intro Of IBM 360 Advent Of MIS Paperwork & Reporting Increases HR Now More In Mainstream Of Operating Budget

5 COST-EFFECTIVENESS: HR Cost Justification Activities Increased Role Due To Paperwork Required In Legislation Microcomputers & Software Advances HRIS Capabilities Lower In Cost Increased Emphasis On R&D Utility Analysis Critical Smaller companies can utilize HRIS

6 TECHNOLOGY ADVANCEMENT ERA (90S-TODAY) Internet enabled Web Services HRIS more commonplace Business Process Re-engineering HR Balanced Scorecard Strategic HR Management HR becoming more visible as a strategic business Partner Globalization Of Companies Hardware-software Tools In Decision-making

7 THE EVOLUTION OF STRATEGIC HRM Contingency Perspective And Fit Resource - Based View Of The Firm And Social Capital, HR System Components And Structure Expanding The Scope Of HRM Beyond The Focal Organization Achieving HR Implementation And Execution, By Translating The Rhetoric Into Practice, Measuring The Outcomes Of SHRM By (E.G., Balanced Scorecard Approach) Research Methodological Issues That Stress The Importance Of Evidence Based Management Adoption And Use Of HR Metrics Application Of Six Sigma" Processes To HRM.

8 COMPETITIVE ADVANTAGE Three Categories Of Resources: Physical Organizational Human Most Critical

9 ACTIVITIES OF HR Transformational Traditional Transactional Wright, McMahan, Snell, & Gerhart, 1998

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

11 INTERFACE BETWEEN HR AND TECHNOLOGY IT As A Tool Not A Substitute For People How Might The Changes In Technology Impact The Role And Perceptions Of HR Departments And Professionals? How Might Technology Aid In The Advancement Of Strategic HRM?

12 HRIS Human Resources Information System (HRIS) Computerized System That Provides Current And Accurate Data For Purposes Of Control And Decision Making. Benefits: Store And Retrieve Of Large Quantities Of Data. Combine And Reconfigure Data To Create New Information. Institutionalization Of Organizational Knowledge. Easier Communications. Lower Administrative Costs, Increase Productivity And Response Times.

13 HRIS DEFINITION Not Just Hardware-software Includes People, Forms, Policies, Procedures, And Data Purpose Provide Accurate and timely information to the clients (or stakeholders) of HR Variety Of Users Strategic Tactical Operational Decisions

14 E-HRM & HRIS Electronic Human Resource Management (E-hrm) Information Technology (E.G., Web)central Component Application And HR-function Focused HRIS Technology And Processes (E.G., Databases, Enterprise Resources Planning (ERP) Architecture, Smart Phones, Etc.) That Support Employee Access To HR Data And The Move To E-HRM.

15 BIGGEST ADVANTAGES OF HRIS Reduced Manual Handling And Paperwork Or Enables Greater Impact Of Paperwork On Business Operation Reports Analysis Negotiations Communications

16 Why Do we need an HRIS? Providing a comprehensive information picture as a single, integrated database; this enables organizations to provide structural connectivity across units and activities and to increase the speed of information transactions Increasing competitiveness by improving HR operations and management processes Collecting appropriate data and converting them to information and knowledge for improved timeliness and quality of decision making Producing a greater number and variety of accurate and realtime HR-related reports Streamlining and enhancing the efficiency and effectiveness of HR administrative functions Shifting the focus of HR from the processing of transactions to strategic HRM Reengineering HR processes and functions Improving employee satisfaction by delivering HR services more quickly and

17 Harnessing the potential of an HRIS The ability of any organization to gain effectiveness and efficiencies from Human Resources Technology depend on such factors as: the size of the organization, with large firms generally reaping greater benefits; the amount of top management support and commitment; the availability of resources (time, money, and personnel); the HR philosophy of the company as well as its vision, organizational culture, structure, and systems; managerial competence in cross-functional decision making, employee involvement, and coaching; and the ability and motivation of employees in adopting change, such as increased automation across and between functions (Ngai & Wat, 2004).

18 INFORMATION SYSTEMS PROVIDING SUPPORT FOR HRM (Table 1.1) Organizational Level Operational Managerial Executive Type of System Transaction Processing System Management Information System Executive Information System Major Goal and Focus Improved transaction speed and accuracy Improved efficiency in the processing of daily business transactions Automation of routine transactions Reduced transaction costs Provides key data to managers Supports regular and ongoing decisions Provides defined and adhoc reporting Provides aggregate, highlevel data Helps managers with longrange planning Supports strategic direction and decisions HRM Example Payroll processing Time and attendance entry Producing EE03 reports Calculating yield ratios for recruiting Calculating per-capita merit increases Succession planning Aggregate data on balanced scorecard

19 INFORMATION SYSTEMS PROVIDING SUPPORT FOR HRM (Table 1.1 Cont.) Organizational Level Boundary Spanning Type of System Major Goal and Focus Decision Support System Expert System Office Automation Systems Collaboration Technologies Enterprise Resources Planning System Interactive and iterative managerial decision-making Supports forecasting and what-if analysis Supports business simulations Embed human knowledge into information systems Automate decisions with technology Designing documents Scheduling shared resources Communication Supports electronic communication and collaboration between employees Supports virtual teams Integration and centralization of corporate data Share data across functional boundaries Single data source and common technology architecture HRM Example Staffing needs assessment Labor market analysis Employee skills assessment Résumé keyword searches training room scheduling Communication support for e- learning Online meetings and shared documents HR departmental wikis Orangery Oracle/PeopleSoft Lawson HRM SAP

20 SYSTEM DEVELOPMENT LIFE CYCLE (SDLC) Five General Phases: (1) Planning (2) Analysis (3) Design (4) Implementation (5) Maintenance Begins With Planning And Ends With Continuous Evaluation

21 SuccessFactors Employee Home Screen (Figure 1.2)

22 A MODEL OF ORGANIZATIONAL Organic model FUNCTIONING 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.

23 A MODEL OF ORGANIZATIONAL FUNCTIONING The HR Goals Drive The HR Programs That Provide Management The Tools For The Efficient And Effective Use Of Employees The HRIS Has Become Increasingly Important In Supporting The HR Management System As Well As In Strategic Planning HR Metrics And Cost-benefit Results (Value Added And Return On Investment - ROI), Are In Continual Interaction

24 A MODEL OF ORGANIZATIONAL FUNCTIONING National Culture Impacts Entire Model Through Strong Effects On External Environment External Environment Influences Internal Functioning Of Organization Interaction Between Strategic Management System And Strategic HRM Will Improve The Functioning Of The Organization