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Steps in Computerizing HR functions

Phase 1: System planning

Phase 5: System maintenance and evaluation

Phase 2: System design

Phase 4: System implementation

Phase 3: System development / Vendor selection

Steps in the planning process


Establishing the project team Defining system requirements Performing a feasibility analysis

3 4

Obtaining support for the HRIS

1. Project leader 2. Project team

The role of project team

Responsible for system planning, design, and implementation. Acts as a liaison with any consultants involved in HRIS design and development.

Project leader
Successful HRIS development requires a fulltime project manager. 2 choices
1. Outside consultant an HRIS expert 2. An individual from the HR department

Characteristics of the HRIS project leader:

Fulltime responsibility on the project Reports to the HR department Have well-developed project management and communication skills, and work comfortably with top management Have thorough understanding of the HR departments operations Have thorough knowledge of every HR area

Team members
Each member should receives a project assignment appropriate to his or her background, skills and experience.

The scope of the proposed HRMS plays a key role in determining the size of the project team For large projects, team members may include representative from key HR functions, finance, and IS, as well as HRIS consultants.

Steering Committee
Management level Consists of HR manager, IS manager and other central decision makers in the organization (i.e. top management, finance, strategic planning, and line functions of the organization They meet periodically to
1. resolve high-level policy issues, 2. review the feasibility of the proposed HRIS, 3. monitor project progress

Major issue in developing HRIS

Quality information Functionality Input & processing capabilities Output capabilities User appropriateness

Major issue
Criteria for Quality information

Differences between data and information Reliable information Timely information

Comprehensive information Readable information Significant and relevant information

Major issue
Functionality Input & processing capability

Modularity Utility functions Integration and interfacing

Speed Efficiency Information retrieval Database size and format

Major issue
Output capabilities Printing and report design Security Distribution needs User appropriateness User sophistication Coding documentation

Techniques for requirements definitions

Techniques for requirements definitions

Evaluating current system Evaluating another HRIS User interviews and surveys Business system analysis Scenario analysis


Feasibility Analysis
Technical Evaluation Administrative Evaluation Economic Evaluation

Technical evaluation
Considers the functional and technological aspects of the system. The purpose:
reviewing the existing system and vendor market to determine the extent to which current and commercial software can fulfill defined requirements; evaluating the ease of performing internal and external adaptation of such software to meet the organizations additional requirement; and addressing conflicts between standard software and the organizations culture.

Technical evaluation
Based on the findings of the evaluation, the project team usually determines specific technological approaches to meet the organizations HRIS requirements.
manual versus automated approaches, separate versus integrated or interfaced systems, making or buying a system, and the products of several different HRIS vendors.

Administrative evaluation
investigates the impact of corporate culture, organizational structure, management support, business cycles, competing priorities and resource availability on:
staffing, training, scheduling, and other procedural aspects of the project.

Economic evaluation
Provides a cost-benefits value analysis. It begins with establishing the costs, benefits, and values of the existing systems. Then, it measures the costs, benefits, and values of the proposed system against those of the existing systems.

Acquisition & development costs
Implementation costs

Direct savings

Cost avoidance

Operating costs

Intangible benefits

Economic evaluation
3 broad categories of costs:
Acquisition and development costs hardware, software, salaries for project team, and consultant fees Implementation costs conversions, training, staff salaries, and design and printing form Operating costs ongoing staff salaries, training, outside services, forms, maintenance, and upgrades

Economic evaluation
3 broad categories of HRIS benefits:
Direct savings reduction in staff, facility, space, outside services, and consumables (such as papers and ribbons) Cost avoidance current system inflation, maintenance of unauthorized systems, additional staff, hardware maintenance, and potential lawsuits Intangible benefits productivity improvements, better information and decision making, greater accuracy, more timely response, higher reliability, and increased flexibility

To make management understand and appreciate the intangible advantages of the proposed HRIS Everyone should understand that the feasibility study report provides estimates of time and costs but not guarantees.

The importance of planning

the overall system requirements and strategies need to be developed decisions must be made on whether:
there is a need for new applications or just an upgrade to the existing ones the planned systems should be developed internally or acquired from a vendor the system should be integrated with other systems or be one stand-alone system the users need to acquire extensive computer experience or none at all the users have access to computer support or they have to function in relative isolation

The challenges of planning

The process is becoming increasingly complex as most of the technology associated with HRIS is new
HRIS are also becoming more diversified in terms of size, application domain, and underlying technology. Hence, planning for the best technologies that match HR and businesss needs presents a great challenge Planners cannot make accurate prediction regarding the amount of time required, the budget, and other resources because they are in a state of ignorance when setting out the project plan.

Problems that could result in project delays

Unexpected employee turnover, particularly on the HRIS project team Lack of vital information concerning the project Poor communication between IS staff and users Project team members do not adequately understand HRIS requirements and computer technology Changing demands; redefinition of goals and priorities New security and privacy issues New government regulations