What is a “Human Resource

Information System”
• The application of computers to employee-
related record keeping and reporting, and
management decision making
 What’s an HRIS?
• Any system that supports any aspect of the
HR function
• Primary function:
– Documenting the employment relation in all
it’s complexity
• Basic technology:
– Storing, retrieving and distributing information
 Databases are central
• Consider the “Top Ten Calculations” for
your HRIS:
• Healthcare cost per employee
• Pay and benefits as a percentage of operating
expense
• Cost per hire
• Return on training. . .
• Time to fill jobs…
• All require database to get answers
 Evolution of Information
Systems
• Transaction Processing (e.g payroll)
• Management Information Systems (e.g.
daily & monthly absenteeism summary)
• Decision Support Systems (e.g. How many
employees should we hire?)
• Expert Systems
 An HR Example

Input
Processing
Output
(hours worked) (cut paycheck)
(Calc. Net pay)

Feedback Loop
(Is paycheck accurate?)
 Any Computer-based Info
Systems (HRIS included)
Consists of...

• Hardware
• Software
• Databases
• Telecommunication
• Procedures
• People
 Typical HRIS Record Keeping
Requirements
• Employee information
• Wage and salary data
• Review dates
• Benefits
• Education and training
• Attendance
• Performance data/appraisal results
 HRIS Tracks...
Recruit/
Medical Selection
Records
Employment
Workers Equity
Compensation
Payroll
Health & People
Safety
Jobs Benefits
HR Positions
Planning
Employee
Training and Relations
Development
Pension
Compensatio Admin
n
Developing an HRIS: System
Development Life Cycle
Planning (SDLC)
Analysis

Design

Implementation

Maintenance
 Why HRISs Sometimes Fail
• Unclear goals/objectives
• System solves the wrong
problem
• Improper vendor/product
selection
• Low user involvement
• Planning overlooks impact
on clerical procedures
• Lack of HR/functional
expertise in designing
• Underestimate conversion
effort
Management- unrealistic
expectations
Lack of overall plan for record
mgt.
Lack of flexibility and
adaptability
Misinterpret HR specifications
Poor communication between
HR/IS
Inadequate testing
 Why are Carefully Developed
Info Systems Important to HR?
• Better safety Increased Productivity
• Better service More efficient administration
• Competitive Advantage More opportunities
• Fewer Errors Reduced labor requirements
Reduced costs
• Greater Accuracy Superior managerial decision
• Higher Quality Products making
• Improved Health Care Superior control
• Improved Communication
• Increased Efficiency
Developing an HRIS: Planning
and HRIS Development Project

Planning

Analysis

Design

Implementation

Maintenance
HR Information Planning Steps
•Develop overall objectives
•Identify HRIS project(s)
•Set priorities and select projects
•Analyze resource requirements
•Set schedule and deadlines
•Develop the HRIS plan
Selecting an Investigation Team
• HR personnel
• IS personnel
• Users
• Consultants
• Top management
Developing an HRIS: Analysis
Phase
Planning

Analysis

Design

Implementation

Maintenance
 Data Analysis
•Document Current Application Flows and Functionality
•Document Current Technical Architecture (if applicable)
•Conduct Needs Analysis/Business Requirements Definition
 OBJECTIVES OF THE
NEEDS ANALYSIS
• HR FUNCTIONS TO BE
AUTOMATED
• WHICH FUNCTIONS ARE MOST
(LEAST) CRITICAL?
• RELATIONSHIP OF HRIS TO
OTHER SYSTEMS
 Work Flow Analysis
• Map an “obsolete” HR functional flow
(pick an application/area)
• Reengineer the flow so as to add value to
the organization
• Review “obsolete” and “original” work
flows to determine if anything is missing
 Choosing a Consultant
• Why use consultants
• You could contract consultants if:
– Your organization does not have the expertise
required to do the job.
– There is a need for someone outside the
organization to facilitate a process or project.
– Existing staff may be fully committed and
unable to take on the work. e.g. needs analysis.
Developing an HRIS: Design
Phase
Planning

Analysis

Design

Implementation

Maintenance
 Preliminary Design Tasks/Steps
•Finalize Functional Requirements
•Which functions will be adopted for new systems? (user
sign-off)
•Finalize Technical Requirements/Architecture
•Select Hardware and System Software
•Application software evaluation & selection
•Make vs. Buy
 Preliminary Design Tasks/Steps
Acquire Hardware/Software
Technical Design
Design interfaces
Logical and Physical Databases
Messages and Screens
Data Security
Reengineer Business Processes
Migration Plan
 Developing an HRIS: Design
Phase
Design Phase

Preliminary
Implementation
(Conceptual) Detailed Design
(Build, Test, Roll-out)
Design

Implementation Phase
 User Issues in Outsourcing
• Identifying what to outsource
• Gathering business information
• Conducting the feasibility study
• Developing the RFP
• Vendor selection
• Understanding pricing
• Setting service levels and measuring them
• Negotiation terms and conditions
• Managing the relationship
 Make vs. Buy?
Advantages Disadvantages

Packaged Systems

- Cheaper, cost spread across many buyers - Unlikely to meet all of organization’s
- Quicker development; Turnkey requirements
- Can easily evaluate to determine if - Low distinctiveness
needs met - Many vendors/products to sort through
- Documented - Lack of control in any updates/changes
- Supported

Custom Systems

- Greater control; quickly adapt to changes - High Maintenance “burning platform”

- Unique needs addressed - Long development timeline
- Distinctiveness High - Poorly documented/Brain drain
- Greater Staffing Reqs. (IS personnel)
 RFP: Request for Proposal
• Defines user’s goals and requirements
• Simplifies decision making process
• Saves time and facilitates comparisons of
vendor responses
• Reduces potential errors
 Writing the RFP
• Use the team approach
• Use outside consultants where applicable
• Give the vendors enough information as if selling a
business(include financial data for outsourcing)
• Be comprehensive and concise
• Establish your evaluation criteria and state it in the RFP
• Give the vendors alternatives and push them into being
creative, after all they are the experts
• Give the vendors enough time to respond, including time
to tour your facilities, asset verification & evaluation, etc.
 Evaluating the RFP
• Develop the evaluation criteria before the closing date of
the RFP
• Use a decision analysis tool
• Pricing is not the most important criteria
• Clarify vendor responses
• Develop a short list and bring the vendors in for a
presentation
• Understand their culture, future direction, business
objectives
• Establishing the right relationship is more important than
short term cost savings
 Technical Design: Hardware
Selection
• Select Software First
• Operating System and HW selection
• HW reliability and service reputation
• Manufacturer stability
• Expandability
• Cost
LAN/Client-Server Advantages
• Multiple users have can access/update
records simultaneously
• Less dependence on IS; Greater control by
HR; Employee self-service
• Better communication/sharing between
individuals groups
 Employee Life-Cycle

Education Skills Additional Additional Address

Skills Education Change

Applicant Accession Employee Separation Former Employee

Employee
Job Salary Status Retirement
Pending Adjustment Change
Career Continuing
Interview Benefits
Offer Plan Benefit
Change
Job
Offer Job
Classification Transfer Reference
Physical Change
Exam
 HRIS Benefits Realized
(versus Manual System)

• Save $$$
• More efficient recruiting
• Better coordination of staffing resources
• Faster, more consistent screening of
applicants
• Quicker, higher quality hiring decisions
 HR Planning Summary
• Decision support systems, “what if” analyses
• Stimulate thinking about policies & programs
• Data collection, analysis, and evaluation to
summarize information
• Offers information, not interpretation or decision
• Used to:
– identify gaps and surpluses
– evaluate policy compliance
– determine implications of implementing new
programs