Human Resource Management Software (Case Study





Extensive research on HRMS OR HRIS

Executive summary


The case study Human resource management system (HRMS) or human resource information system covers entire picture of software which constitute attraction, selection, retention, development, and utilization of labor resource in order to achieve both individual and organizational objectives. Case study also cover bright picture of Human Resources Information Systems (HRIS) which is an integration of HRM and Information Systems (IS). Also the function & important uses of HRIS or Human resource Information system & how it helps the helps HR managers to perform HR functions in a more effective and systematic way by using technology. The case study covers uses from acquire, store, manipulate, analyze, retrieve, to distribute pertinent information regarding an organization's human resources. This project gives also clear indication uses of How to implement and how to take precaution while implementing HRMS in organization. It emphases on fact that amount of degree HRMS can facilitate on decision making. Project mainly covers components or important available Modules in the market in deeply. Also case study given real market information about top 5 players or system running in market. This case study ends with critical analysis as well the conclusion regard to project.

Table of Contents
1.Introduction 2.purpose

6 8

Payroll module 6. 15. 18. Critical Analysis Conclusion Bibliography 4 . Implementation of HRMS Impact of implementation 16.Man power planning Module 8. 12. & learning management module 7. Performance Module 11.Leave management Module 10. Security of HRMS Player or Appraisal 9 11 15 17 19 22 23 25 30 34 37 41 45 57 58 59 60 5 Steps to select HRMS 13.How to Select HRMS 5. Barriers to succession of HRMS 17.Advantages of HRMS 4. Top 5 Market System 14.Recruitment Module 9.

and accounting functions within a business. On the whole. whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software. Normally packaged as a data base. Human Resource Information System (HRIS). these ERP systems have their origin on software that integrates information from different 5 . data tracking. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field.Meaning What is Human resource Information System? The Human Resource Information System (HRIS) is a software or online solution for the data entry. OR A Human Resource Management System (HRMS. hundreds of companies sell some form of HRIS and every HRIS has different capabilities. refers to the systems and processes at the intersection between human resource management (HRM) and information technology. management. HR Technology or also called HR modules. payroll. and data information needs of the Human Resources. Pick your HRIS carefully based on the capabilities you need in your company. EHRMS).

and occasionally. or as extensive and formal as the computerized human resource databases of major manufacturers. and governments. status changes. retrieving. and selection. personnel activities. The HRIS that most effectively serves companies tracks: • • • • • • • • • • attendance and PTO use. and safety guidelines. emergency evacuation procedures. and organization unit. high potential employee identification. and personal information updating. staffing with information on equal employment. management and key employee succession plans. • Applicant and resume management.applications into one universal database. personal employee information. • Reporting and analysis of employee information. HRIS can be as informal as the payroll records and time cards of a small business. and applicant qualifications. training received. which makes this software application both rigid and flexible A Human Resource Information System is a systematic procedure for collecting. • Company-related documents such as employee handbooks. banks. pay grades and positions held. 6 . HRIS can also support compensation programs Typically. and supply and demand forecasts. storing. performance development plans. pay raises and history. and validating data needed by an organization about its human resources. with information for labor force planning. maintaining. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors. An HRIS need not be complex or even computerized. separations. • Complete integration with payroll and other company financial software and accounting systems. disciplinary action received. • Benefits administration including enrollment. the better The Human Resource Information Systems (HRIS) provide overall: • Management of all employee information. and development with information on training program costs and trainee work performance. and applicant tracking. HRIS can support long range planning. interviewing.

former employees. ethically. career growth and development. With an appropriate HRIS. To reduce the manual workload of these administrative activities. In consequence of the high capital investment necessary to purchase or program proprietary software.An effective HRIS provides information on just about anything the company needs to track and analyze about employees. Application Service Provider. Your company will need to select a Human Resources Information System and customize it to meet your needs. Finally. data necessary for employee management. these internally-developed HRMS were limited to organizations that possessed a large amount of capital. and applicants. managers can access the information they need to legally. The HR function consists of tracking existing employee data which traditionally includes personal histories. Human Resource Management Systems encompass: 7 . and equal treatment is facilitated. Human Resource Information Systems (HRIS): Providing Business with Rapid Data Access. Efficient and effective management of "Human Capital" has progressed to an increasingly imperative and complex process. Information Exchange and Strategic Advantage. Purpose The function of Human Resources departments is generally administrative and common to all organizations. Due HR executives rely on internal or external IT professionals to develop and maintain an integrated HRMS. evaluation. Before the "client-server" architecture evolved in the late 1980s. accomplishments and salary. and Software as a Service or SaaS Human Resource Management Systems enabled take increasingly higher administrative control of such systems. capabilities. skills. and effectively support the success of their reporting employees. many HR automation processes were relegated to mainframe computers that could handle large amounts of data transactions. Additionally. organizations began to electronically automate many of these processes by introducing specialized Human Resource Management Systems. thus freeing HR staff for more strategic functions. knowledge development. and payroll processes. The advent of client-server. Organizations may have formalized selection. Human Resources staff enables employees to do their own benefits updates and address changes.

Performance Record ADVANTAGES OF HRIS To make a human resource department more effective and efficient new technologies are now being introduced on a regular basis so make things much simpler and more modernized. One of the latest human resource technologies is the introduction of a Human Resources Information 8 . Payroll Leave management system Benefits Administration Performance appraisal module Recruiting 6. Training/ Learning Management System (LMS) 7. 4.1. 2. 3. 5.

It lets an employee's information be easily tracked so that it can be assessed on a more scientific level whether an employee is performing to their full potential or not. time and labor management. recruiting. Human Resource Information System (HRIS) merges human resource management with information technology to not only simplify the decision making process. but also aid in complex negotiations that fall under the human resource umbrella. These four basic HR functionalities are not only made less problematic. without any hitch. to personal details. The basic advantage of a Human Resource Information System (HRIS) is to not only computerize employee records and databases but to maintain an up to date account of the decisions that have been made or that need to be made as part of a human resource management plan. generating automatic periodic paychecks and handling employee tax reports. but they are ensured a smooth running. payroll. The advantage of a Human Resource Information System (HRIS) in payroll is that it automates the entire payroll process by gathering and updating employee payroll data on a regular basis. Employee benefits are very crucial because they help to motivate an employee to work harder. training. and benefits information. The four principal areas of HR that are affected by the Human Resource Information System (HRIS) include. This system reduces the long HR paper trail that is often found in most HR divisions of companies and leads to more productive and conducive department on the whole. By using a Human Resource Information System (HRIS) in employee benefits. and if there are any improvements that can be made to make an employee feel more secure. A Human Resources Information System (HRIS) thus permits a user to see online a chronological history of an employee from his /her position data. With updated information this system makes the job of the human resource department very easy and simple as everything is available on a 24x7 basis.System (HRIS). Application of HRIS HRIS can be applied in the following areas of HRM • • • • HR planning Succession planning Work force planning Work force dynamics analysis 9 . It also gathers information such as employee attendance. this integrated system is designed to help provide information used in HR decision making such as administration. and all the information is just a click away. calculating various deductions and taxes on salaries. employee benefits and HR management. and performance analysis. payroll. payroll records. the human resource department is able to keep better track of which benefits are being availed by which employee and how each employee is profiting from the benefits provided. In time and labor management a Human Resource Information System (HRIS) is advantageous because it lets human resource personnel apply new technologies to effectively gather and appraise employee time and work information. A Human Resource Information System (HRIS) also has advantages in HR management because it curtails time and cost consuming activities leading to a more efficient HR department.

• • • • • • • • • • • • • • Staffing Applicant recruitment and tracking Employee data base development Performance management Learning and development Compensation and benefits Pay roll Job evaluation Salary survey Salary planning International compensation Benefits management Develop innovative Org. Structure Develop IT How to select human resources software system or why to select – 10 .

But how do HR and other executives know they are selecting the best HR information technology to manage all of the details. Automation of the update format.Human Resources information technology is essential for companies to manage their benefits plans and their employee information. and that the solution they select will stand the test of time? Following are the key questions to ask and answer in the process of selecting Human Resources information technology. The software should accommodate any eligibility rules that the company and carriers have. Ideally. • What is the degree of flexibility and scalability that the HR information technology software provides? HR professionals should determine if the software can import data from multiple Excel spreadsheets. Many online enrollment solutions require that data be manually manipulated before it can go to a carrier to update their systems. messages. this process should also be automated. databases. transmission schedule and delivery method can help to eliminate billing and eligibility issues. 11 . • Will the software be able to accommodate HR’s company and benefits carriers’ rules? A truly capable enrollment engine will evaluate each enrollment activity and apply any necessary combination of rules.” but a necessity to help HR manage both a sea of information and the money spent on benefits plans. Benefits management technology is no longer a “nice to have. and paper documents and the level with which it can interface with all kinds of systems and data. and options specifically designed to meet the exact eligibility requirements desired. prompts. The software should be able to take in and filter information from multiple sources. as HR faces limited resources and constantly changing data.

• If training is involved. • What security measures are built into the HR information technology? If the software is available online. HR can then determine specific tasks that may be so cumbersome as to realistically impede completion. A good self-service system will guide employees smoothly through entering information about themselves and their dependents. backup servers. • Is the HR information technology software able to integrate with other systems? Payroll and other functions often share much of the same information as benefits management. HR can obtain greater efficiencies when data and other employee information entered into one system can be shared with another system. • Who is responsible for implementing. general access to computers. offices. HR should ask about the thresholds for each of these elements. through an ASP or SaaS model. If the data resides on a carrier’s proprietary server. considering the widespread. HR needs to become aware of all hard and soft costs involved in the HR information technology adoption. the provider should offer daily backups. • Who will own the data? The answer to this question should be the Human Resources organization. The system should clearly present the plans available and enable employees to make 12 . benefits changes. • Will employees be able to enroll in benefits plans and make changes in real-time to their personal data and plan choices? Employee access should be a given. HR. Companies should be able to transport their data to any Application Service Provider (ASP). the solution? What level of training is HR should have a clear understanding of the level of training and technical expertise that will be required and the amount of time expected. yet involve significant technological expertise. • What types of maintenance and upkeep are required? When software is installed on a company’s on-site workstations or servers. Additional systems and procedures should be in place to safeguard information from being lost or accessed by unauthorized personnel. potentially reducing HR information technology value and ROI. the company may sometimes be charged additional fees should it switch carriers. 70% of the population has Internet access at home. or building. Employee self-service provides huge potential to save time and money. and rules. is there a charge? Costs of training should also be assessed - including time away and travel expenses for off-site travel. which can be overwhelming for already busy HR administrators. Questioning solution providers on this topic can provide insight into subtle areas that might initially appear simple. should have exclusive authority to decide who will be allowed access to the HR information technology and to what degree. regular updates to that technology are often required and may be cumbersome to plan for and manage. Updates to HR information technology are often made automatically with software available online through an Application Service Provider (ASP) or Software as a Service (SaaS) model. and added protective layers. in consultation with other managers.• Will the HR information technology be able to grow and scale with the organization? HR should assess the technology’s ability to grow as the company brings on new employees. involved? Some solutions require the client to be very involved with the initial implementation.

Here is the first half of the questions. department. retirement status. PDF. enrollments in specific plans. electronic "bulletin boards. 24 hours a day. • Does the software offer specific features to help HR save time? Depending on its own departmental needs. and changes in employee demographic information in relation to benefits and other employee data.selections at their convenience. outstanding actions. --assist in the timely delivery of employee enrollments. but by the type of connection that it enables. This can: --ensure the accuracy of carrier invoices. HR should have the authority to approve all data before it is transmitted to carriers. the technology should give HR the final say. provide selfbilling and bill reconciliation tools. and should also determine the extent to which employees and others have access. enrollment status. many HR information technology systems also provide capabilities for HR to serve as the gatekeeper in auditing carrier billings to make sure they agree with the data in the system. • How will information be exchanged with carriers? And. Ensuring successful interaction with carriers through a benefits management software requires many steps. html). • What types of reporting capabilities are available from the HR information technology? Reporting technology should offer multiple views and formats (spreadsheet. insurance plans. • Will the technology provide Human Resources with the authority to decide who will be allowed access and to what degree? Along the same vein of providing employee access.via mass email. Employees should also be able to add dependents and change information as necessary. --save time and money. and others) through the HR information technology system. HR should be able to assess. at any time." and by specific filter criteria (such as location. big picture assessment and the ability to drill down to enhance decision-making. and specific reporting. --setting up initial integration for the ongoing information exchange. HR might want to inquire about the technology’s ability to process information in batches. simplifying these actions throughout the process with wizards. who will be responsible for this interaction? Integration of the HR information technology system should be judged not only by the number of carriers with which the software has relationships. manage notifications and billing for COBRA policies. • Does the HR information technology system provide a means of checks and balances? In addition to enabling HR to approve transactions. --coordinating daily or weekly interaction to make sure data is received and accurately 13 . These are additional questions to answer as you assess your organization’s Human Resources information technology needs. seven days a week. and --enhance confirmation of eligibility when employees go for care. • Does the software offer specific features to help HR communicate better with employees? Some programs give HR the flexibility to communicate with employees on a number of levels . including: --gathering initial implementation data census. Having a number of means to communicate can further automate processes and help HR to better target messages.

These factors should be considered and weighed in selecting an HR information technology system. help via a database. or a combination thereof. specific transfer language. alongside the benefits provided. validated transfers (ensuring the eligibility of the transaction). --ensuring carrier requirements for enrollment are being met in compliance with regulators. A slightly more expensive system may more than pay for the difference with features that enable employees to maintain their own records and offer greater convenience. online chat. time savings.applied. • What level of customer service is provided? Is there an additional charge for service? HR should determine the level of access to “help” that is provided and what constitutes customer service . These questions will lead you to the appropriate HR information technology system for your company Payroll Module 14 . a factor often influenced by the size of the group. managers should expect a response to inquiries within 24 hours from a direct contact that can help. seamless relationships with the company’s selected carriers. ongoing. including all annual. Choosing an HR information technology system should be looked at as an investment that will grow with the department and company’s needs. Managers should look for providers that offer clean. --reviewing ongoing updates. Each software provider will offer a different level of integration in providing some. They should also look to providers that have a dedicated EDI (Electronic Data Interchange) department to interact with the carrier’s own. and accuracy. With HR staff finding a vast array of options in HR information technology systems. The need for HR information technology systems is increasing. • What is the cost of the HR information technology system and does it outweigh the benefits? HR should assess the complete cost of the HR information technology system. Many providers enable transmission of a generic ANSI 834 file. it is increasingly important to analyze and weigh all options available. which may or may not be accepted by the carrier. Given the sensitivity of benefits and other HR information. HR should look to work with vendors that demonstrate strong. email support. and one-time charges. to all. and --fostering a proactive relationship with each carrier to improve the relationship of data exchange. Knowing who is responsible for each task is essential to fully understanding a product offering. of the tasks outlined above. conversations with a live person. customized to each carrier’s needs to avoid issues.

You may create an unlimited number of deductions and miscellaneous compensations to assign to employees. Each employee record includes a Human Resources information page where you may enter notes relating to job history and performance reviews.The Payroll module maintains all information on your employees. Deductions and miscellaneous compensation may be calculated as taxable or tax exempt. Direct Deposit requires the activation of an Electronic Transaction Network account. Payroll module includes a Direct Deposit function. The interface for deposit transmittal to the Electronic Transaction Network is already included in the Payroll module. The Payroll module contains the options listed below: • • • Maintain Employee Information Enter Time Cards Post Time Cards 15 . The Payroll module allows for calculation of two additional local withholding taxes in conjunction with the Federal and State withholdings. Earned Income Credit calculations are also included as an option. This includes keeping track of sick and vacation hours accumulated and used during the year.

• • • • • • • • • Calculate Pay Maintain Employee Deductions Maintain Miscellaneous Compensations Void Pay Check Electronic Transaction Network Interface Maintain Payroll Divisions Payroll Tax Tables Maintain Tax Codes Payroll Reports Training & Learning management module 16 .

The training module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a Learning Management System if a stand alone product, allows HR to track education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs, web based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same system. Sophisticated LMS allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics. Many organizations have gone beyond the traditional functions and developed human resource management information systems, which support recruitment, selection, hiring, job placement, performance appraisals, employee benefit analysis, health, safety and security, while others integrate an outsourced Applicant Tracking System that encompasses a subset of the above. A learning management system (LMS) is software for delivering, tracking and managing training/education. LMSs range from systems for managing training/educational records to software for distributing courses over the Internet and offering features for online collaboration. In many instances, corporate training departments purchase LMSs to automate record-keeping as well as the registration of employees for classroom and online courses. Student self-service (e.g., self-registration on instructor-led training), training workflow (e.g., user notification, manager approval, wait-list management), the provision of on-line learning (e.g., Computer-Based Training, read & understand), on-line assessment, management of continuous professional education (CPE), collaborative learning (e.g., application sharing, discussion threads), and


training resource management (e.g., instructors, facilities, equipment), are dimensions to Learning Management Systems. Most LMSs are web-based to facilitate access to learning content and administration. LMSs are used by regulated industries (e.g. financial services and biopharma) for compliance training. It is also used by educational institutions for enhance and support classroom teaching and offering courses to larger population of learner across the globe. Some LMS providers include "performance management systems," which encompass employee appraisals, competency management, skills-gap analysis, succession planning, and multi-rater assessments (i.e., 360 degree reviews). For the commercial market, some Learning and Performance Management Systems include recruitment and reward functionality. LMSs are based on a variety of development platforms, like Java EE based architectures, Microsoft .NET, PHP, and usually employ the use of a database back-end. Some systems are commercially developed and have non-free software licenses or restrict access to their source code, Other systems are free and open-source and frequently used. Other than the most simple, basic functionality, LMSs cater to, and focus on, different educational, administrative, and deployment requirements.



MANPOWER PLANNING…headcount analysis, turnover, organization charts How many employees do we have to hire, train or promote this year? The Manpower Planning module manages the employee inventory and handles a number of related issues, including: Maintaining an inventory of the number of required job positions by Branch, Department, and Section based on the organizations Manning objectives

Calculating actual head count and determining variance between required and actual Providing interface to third-party applications such as OrgPlus and Visio for printing organization charts Calculating turnover for the current base period


Job Requirement One of the pre-requisites of Succession Planning is the maintenance of job position data. The Dynamic Selection mechanism is first used to select the set of employees for whom the gap analysis will be done. By enabling authorized personnel to instantly lay their hands on detailed applicant and employee information. Accomplishing this requires a quantitative and qualitative understanding of the past and planning for the future. The Manpower Planning and Succession Planning modules deliver in this regard. enabling you to proactively train and hire for future skill requirements. This requires entry of information on the education. skills and training requirements of each job position. as well as internal resources.Projecting turnover for a future period using past results Including retirement projections to determine future vacancies Integration with Succession Planning While the Manpower Planning module provides quantitative forecasting. The prime objective of Succession Planning is the provision of adequately trained and qualified personnel to meet the future staffing needs of the organization. you may also identify potential skill shortages in your workforce. How many employees with appropriate qualifications (education. when combined with the Succession Planning module. train and promote in a given period. skills and training) will be available for promotion to management type jobs this year? Who in our present work force is qualified today to be considered for an opening as a marketing manager? SUCCESSION PLANNING…providing adequately trained and qualified personnel at all levels Perhaps the greatest benefit of an integrated human resource and payroll system is the instant. faster. and more efficiently. to match qualifications to open positions. 20 . Not only does this make it easier to find the right candidate for the right position. Succession Planning provides more qualitative features. ondemand access to information you need to make decisions quickly. they provide a forecasting tool that may be used to predict the number of people the organization will have to hire. Succession Planning's capability helps you instantly scan your pool of applicants. Qualification Gap Analysis This is a HR planning and development feature that may be used by the HR department or at the departmental level. HRM helps your organization work smarter. For example.

the integrated Training module may be accessed directly. It uses current qualifications data of the selected employees and matches against the required qualifications for future positions. Employees may then be listed for recommended training to address the identified qualification gaps. Information on employees who are qualified. The qualification search parameters are then specified and may include any combination of Education. over-qualified or under-qualified is then available. With the Search feature. The system may also be directed to search among certain selected employees and/or applicants (from the applicants database). Recruitment may then be focused on the short listed candidates. its members come to anticipate a certain pattern of job progression based on what they have observed of the internal mobility of other employees. The Extract to Workfile feature exports the gap data to an Excel spreadsheet which then provides a printed copy of the results. All the above and much more. It is a function of organizational needs and employee expectations.The Generate Gap function is then used to match the qualifications for each individual against the requirements for the substantive position to which the individual is assigned. The system provides a facility to display various career paths based on the organization structure. Gap data may be displayed on the screen or extracted to a workfile. For under-qualified employees who require training. Job Forecasting Job Forecasting addresses the issues of assessing the potential of employees to fill future positions. Job Search The Succession Planning module includes a Job Search feature. the system searches the target databases and provides a short-list of candidates who meet the stated requirements. Within a given organization. Skills and Training. Various career path options may be discussed with employees and graphically illustrated. The vacant position is first selected. Recruitment Module 21 . The identified gaps determine the training that will be needed to enable employees to meet the required. Career Paths Whether employees are promoted within relatively specialized career lines or be given broad exposure to a variety of jobs depends on both the organization's policy and individual choice.

The main benefit for HR is that a job request must have certain information from the manager before being submitted. if this is done then external applications can be received into the system and these can be monitored by HR. if the information is not good enough then it can be rejected and sent back to the requestor with comments as to why the information is not good enough. Press. i. Agencies Links to existing Website On-line application Fully automated Interview Process Correspondence. • • • • • • • • • Job Requisitions Skill sets and Competencies for Vacancies Recruitment Channels. Terms & conditions Built in reports including Equal Opportunities Links to People and Training Module 22 . Rejections. This module forces a new job request to go through a strict workflow before HR can finally begin trying to find candidates to fill the role.The HR Recruitment Module is designed to help HR manage a core function within Human Resources. The system can also be set up to be a Mail In Database. Offer Letters. If successful then the applicant can be created as a Candidate in the system.e. i.e.

View leaves balance. leave approved and leave time available Have Staff Availability Information at Your Fingertips • • • Availability by crew Availability by individual Maintain multiple schemes and rules for different employee groups. per crew.Leave Management System(LMS) LMS is a comprehensive and flexible leave management system enabling you to enter and manage leave requests according to your rules. etc. including current position and look-forward. Track Leave Entitlements • • View outstanding open leave requests (per shift. Request beyond rule boundaries. per employee. Manage leave taken vs. including present status. It is an integrated module of WorkTech Time that allows you to: Capture Employee Leave Requests • • • Enter and cancel requests.). View outstanding leave requests. 23 . Send Notifications Automatically • • Approval/rejection of leave request.

Appraisal modules 24 .) Delegate approval or denial of requests. per crew etc. crew. using dbNewsT. including current status View leave balance. approved and available to be taken (per employee. view combined work schedules and leave requests.e. combining leave accrual rules. View staff availability. or when changes in leave requests have been made. etc. Approve or deny leave employees' requests. leave consumption rules and transactions from the hours entered in the system.User Employee Function Enter a leave request Cancel a leave request Appeal a declined request View outstanding leave requests. including current position and look forward View work schedule based on shift and holiday schedule. Manage leave taken vs. Supervisor View outstanding open leave requests per shift. per employee. an optional add-on. Notify interested parties if rule boundaries (leave consumption rules) have been breached. Re-format look and feel of Web data entry and review pages to suit company requirements. i. System Administrator Calculate leave balance. View personal details..

Maintaining confidentiality of information is difficult. Historical data is available for future reference. Benefits • • • • • Security issues are addressed. Collated historical data is unavailable for future reference Isolated information silos. Centrally maintained work log.KRA based    Options to define individual employee KRAs Self appraisal option for each employee Work flow based appraisal system Appraisal & Key Result Areas Business Challenge • • • • Employee Performance Appraisals involve a lot of paperwork. Integrated module. Competency based appraisal 25 . Easy movement of documents.

agreement on the top hard and soft skills required for those positions and then Provides the hiring. have a performance Management system that contains all the elements necessary for a highly Productive and motivated workforce management starts with the identification of critical Positions. Recognition Identify Core Positions within the Organization Identify Key Soft Skills & Competencies for the Positions Assess Current Skill/Competency Levels of Incumbents and Candidates with Feedback Mechanisms • • • • • Provide Training & Development in the Necessary Competencies Conduct Behavioral Interviewing – the Best Predictors of Future Performance Reflect the Competencies Required in the Performance Appraisal Establish Competency Performance Expectations for Incumbents • Option to define level / position/ function based competencies for managerial effectiveness 26 .The Competency Based Performance Management System A system for effective performance Competencies or talents are the foundation for people to achieve superior performance in any job. • • • Provide On-Going Feedback. Coaching. Few organizations. Evaluation. based on research and experience. training and evaluation practices necessary to put the Right people in the right job. promotion.

• • Self appraisal option for each employee Work flow based appraisal of managerial effectiveness 360 degree based appraisal 27 .

or should be used for appraisal purposes as well (Waldman et al. When this is the case." "outsource feedback. There is also controversy regarding whether 360-degree feedback improves employee performance. feedback from external sources such as customers and suppliers or other interested stakeholders. or a "traditional performance appraisal." or "multisource assessment. the 360 assessment is for evaluation purposes. Results are also used by some organizations in making administrative decisions. • Configurable managerial attributes for evaluation 28 . It may be contrasted with "upward feedback. 1998). with an individual figuratively in the center of the circle. and it has even been suggested that it may decrease shareholder value ." where the employees are most often reviewed only by their managers.. The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. in some cases. Feedback is provided by subordinates." where managers are given feedback by their direct reports. 360-degree feedback.In human resources or industrial/organizational psychology. also known as "multi-rater feedback. such as pay or promotion. peers. there is a great deal of controversy as to whether 360-degree feedback should be used exclusively for development purposes. It also includes a self-assessment and." is feedback that comes from all around an employee." However. and is sometimes called a "360-degree review. and supervisors. "360" refers to the 360 degrees in a circle.

• Options to define type of questions and rating for each attribute Option to define appraisal period and set of managers authorized for this evaluation Work flow based appraisal – both for internal and external appraisers • • 29 .

budget. 3. Determine your Human Resources technology needs. 4. and company growth? These five steps will help you select a Human Resources Software Technology system.Five Steps to a Human Resources Software Technology System Interested in a game plan for finding a Human Resources Software Technology system that fits your needs. Research your short list of potential Human Resources Software Technology systems. 30 . Find the Human Resources software system vendors who match your needs. 1. Set up Human Resources Software Technology system demonstrations. 2.

• Determine Your Human Resources Technology Needs Before you begin the process of setting up demonstrations and evaluating systems. the more likely you are to find a system that matches your unique needs. This is the most important step of the Human Resources Software Technology system selection process. These systems will appear similar and you may forget which product offered which feature without this score sheet. list your HR system needs. With each individual product website. and risk management to determine their needs from the system. look at a number of vendor websites. Search Google. • What capabilities would a system need to have to assist with meeting corporate HR goals? • Determine your desired type of platform. There is an easier way. Then. in your industry. such as time clocks or other HR systems? Now that you have created a detailed needs list for your Human Resources Software Technology system. Ask yourself the following questions to start the process of determining needs: • If you were going to create your own HR technology system. as well. training.5. which systems they use and if they would recommend those systems. This process will make the decision step much easier. Yahoo or another search engine for HRIS. Will you host the software internally or have the software company host it for you? • How much are you are able to spend on a system at one time or per year?/li] • Will you change your payroll system. Select your Human Resources Software Technology system and obtain approval. You also want to ask other HR professionals. • Find the Human Resources Software System Vendors who Match Your Needs This step is not as easy as it might appear because of the proliferation of Human Resources Technology Software systems. or will you need an interface between your new HR system and your existing payroll product? • Are there any other systems that will need to interface with the Human Resources Software Technology system. Yahoo or another search engine. Across the top add the HR technology vendor names. If you are looking for hosted or subscription HR software applications with payroll: search using Google. you want to find a feature list to see how many of your basic needs it appears to meet. The more detailed you are with this step. you need to have a good idea of exactly what you need a system to do for you. HRMS or HR software comparison websites and you will find a number of sites dedicated to making this 31 . create an Excel vendor score sheet for the products you will review. Down the left side of the score sheet. what capabilities would it have? • Exactly what reports would you need? • What data do you need to track? • Involve other departments such as payroll.

as these websites vary tremendously in capabilities and features. With a single phone call you should be able to get a broad price range and learn whether they offer hosted Human Resources Technology Software systems. With each demo. however. it’s time to set up the demos. You’ll need to show how the system will help meet organizational goals. make your best decision. your spreadsheet. Part of the reason you involved other departments in the needs assessment step is that a system that benefits multiple departments may show greater value than a system that benefits a single department. Involve other staff from different departments where feasible. At this point you want to research these companies. and a list of vendors. you will likely have your decision narrowed down to two or three systems. Your research should include checking references. Cost justifying an HR technology system is not the easiest process. their early involvement garnered you the support you need when you 32 . • Select Your Human Resources Software Technology System and Obtain Approval Your decision should be easy. their financial standing and the number of Human Resources Software Technology system installations they currently have. might be tricky. your research. • Research Your Short List of Potential Human Resources Software Technology Systems After the demos. Using the score sheet described earlier. Between your needs. purchased Human Resources Technology Software systems or both options. determining how long the company has been in business. at this point. thus. You will have to sell the value and the benefit of a Human Resources Software Technology system. based on all the work you put in at the front end of the Human Resources Software Technology system selection process. Call each vendor to make sure that each meets your most important needs and budget range. Make sure the person doing the demo shows you every capability you have outlined in your list of needs and on your spreadsheet. it’s important to realize you are the prospective customer. you are in control of the demo. Additionally. ensure the sales person shows you that exact report or shows you how that report is created. Gaining management approval. you should have a list of seven or eight unique vendors. your spreadsheet results.selection process easier. and the system prices. If you have a particular report you have to have. Check out several comparison sites. at this point. • Set Up Human Resources Software Technology System Demonstrations Now that you have a detailed list of needs.

So will the spreadsheet you used to assess potential Human Resources Software Technology systems. Security for HR records .human resources 33 .seek approval for your selected system.

What constitutes confidential information should be defined in a company privacy policy. management information and legal restrictions. in particular. Often more complete than paper records. Safeguards for data entry and use of the information can be handled by written policy and security. some employees may prefer that their personal addresses and telephone numbers not be published on a list. Legal restrictions. the traditional recordkeeping policies and practices need to be reviewed and updated in light of these technological times. computer records are full of information that needs to be protected from inaccurate actions as well as from unwarranted use. for instance.A combination of written policy and effective use of your system's security features is needed to manage issues of data integrity and privacy. A primary goal of automation is the ability to produce better management information. For example. the HR department should have a current list of the state requirements for employee record-keeping. need to be re-examined: employee right to privacy. Employee right to privacy. combine data and share information. SYSTEM SECURITY 34 . Medical information. Because employee records are increasingly maintained in computer files. Three areas. should always be carefully protected. The type of data that is considered confidential varies from state to state. An electronic system makes it easier to produce lists. Businesses generally want to be close-mouthed about their affairs because of competition and actions management is considering. Management information. but safeguards should exist to protect both the data and ability to produce reports. These very qualifies can contribute to a breach of privacy.

have the MIS staff describe log-on procedures and explain the level of protection provided. Everyone should use a screen-saver program to prevent the casual browser from viewing the merit program or the new organization chart. and use a password. 4. If the system has such capability. by department or by job group. what will result? These questions get at the fundamental concepts behind system security--records. The first line of protection is physical access to the computer.Security is a series of electronic "doors" a user must unlock to retrieve data and execute functions. it is possible to allow line managers access to their department's data. Restricting access to groups of records can be done by company level. on the other hand. Succession planning. Even a single-user computer needs to be protected: Use the lock on the hard drive. is usually designed with powerful security because of the extreme confidentiality of the data. How does the system control access to specific data? Is there protection for all fields or only some fields? Answer example: Only the HR manager is allowed to see salary data for level 12 and above. set up a password that is not obvious to all (for instance. Purchase a screen-saver program that allows the end user to set up keystrokes that bring back the screen rather than a program that responds to the touch of any key. How does the system control who can manipulate the data? Answer example: Only the personnel assistant enters new hires. Before developing security procedures. 2. The second set of "doors" is within the HR system itself starting with passwords for log-in. 3. or. lock your office. the HR director can see everything but change nothing. runs a training report by job and pay level. The question is how powerful is it? HRIS security features can range from simple to robust. be sure you completely understand the capabilities of your system. HR applications such as applicant tracking and training will have less security because the information is generally not considered sensitive. If you are on a network system. data and actions. How does the system control access to records? Answer example: Person can access all departments except for the Executive Office. All HRIS packages come with security. How does security extend to reporting? Example: If the training manager. don't use your middle name) and change it on a regular basis. Four questions will help you understand how the computer security works: 1. who does not have access to executive salary data. Even if you are the only user. 35 . The password should be on file with the systems department or the controller.

employee files deserve to be treated with great care. system knowledge and day-to-day operations. SUMMARY OF STEPS 1. The accompanying chart will help you to think through and record these decisions. 7. Accessing and printing standard reports and creating custom reports is yet another set of security characteristics. The vendor documentation is. Make decisions about system security and privileges. 2. the place to start. Document both policies and data entry practices.Some PC systems restrict access to screens. of course. vendor and system administrator to maximize use of your system's security features. Following these steps should establish security and policy. What actions a user can take is described by the View Only or View and Update features. 3. Whether electronic or paper. Learn how security works in the HR system. Work with your systems department. 4. Examine how you want information to be used in your department and throughout the organization. Establishing security and end-user privileges calls for a balance of incorporating HR policy. Other vendors restrict access to some but not all data. safeguard any written record of IDs and security set-up. Ask how security works on the network or what you can do to protect a single-user system. 6. The power to change a record should be only with someone who is fully trained on the system and in HR practices. 5 Top HR Modules for ERP Systems 36 . but not to the data items on the screen. Review privacy and confidentiality policy to ensure that it is current with how records are maintained. Brief all new staff on handling of employee information. 5. The term View Only is used to indicate a user who does not have the privilege of entering or changing records.

tax definitions. It includes scheduling. absence handling and performance support. most major ERP vendors now offer their customers HR modules that help automate an array of tasks while generating crucial data for enterprise planning and optimization. Here's a look at five top solutions. Infor HCM is a Web-enabled offering that brings a variety of capabilities to the table — perhaps even more features than the average business needs. time and attendance. benefits. In fact. currencies.A growing number of businesses are adopting ERP (enterprise resource planning) systems in order to give their department’s accurate and accessible shared data. It consists of three basic components: • • • Resource Management: Features here include benefits administration. Infor HCM (Human Capital Management): Designed for use with Infor's ERP. HR isn't being left out of the loop. Talent Management: This part of the module provides work-force development capabilities that are focused on recruitment. 37 . employee performance and competency management. security configurations and platforms. The module has support for multiple languages. learning. based on features and usability: 1. Work-Force Management: This component aims to help HR departments costeffectively handle complex work-force management challenges. payroll. FSAs (flexible spending accounts) and compensation. Succession-planning capabilities are also provided.

3. Infor HCM takes advantage of Web technology to provide an ERP HR module that can be instantly updated and easily scaled.'s Sage Pro ERP. SAP ERP HCM: 38 . including SQL or MSDE (Microsoft Desktop Engine).Verdict: This is a well-rounded. including benefits. training. recruiting and compliance. Verdict: This solution is a good choice that gives users a voice in its design and operation. Hundreds of standard report templates are included. highly capable module that's suitable for just about any business. An integrated database is designed to feed a steady flow of information to managers and staff. It’s tailored for midsize manufacturing businesses. Sage Accpac HRMS also includes powerful reporting and analysis tools that provide customized insight on almost any HR issue. Sage Accpac HRMS provides support for a variety of HR tasks. The module offers a flexible design that lets users select their own database platform. 2. Sage Accpac HRMS (Human Resource Management System): As a part of Sage Software Inc.

payroll and reporting. performance measurements and real-time insight into just about any HR trend. On the other hand. 4. the product is overkill for most SMBs (small. Verdict: SAP ERP Human Capital Management sets a goal to which other ERP HR module vendors can only aspire. In any medium-sized businesses). it's truly the Rolls-Royce of ERP HR modules. HR processes. The solution is designed to give companies in virtually all industries a full selection of HR tools. The software can automate virtually all fundamental. Other features include talent management. The product supports compliance with both global and local regulations.SAP AG's highly regarded ERP offers SAP ERP HCM. and most advanced. including employee administration. Oracle HRMS: 39 . a versatile and extremely scalable HR module.

this module supplies features that support the career development of individual employees — a capability overlooked by many other HR modules. Features include a "competence framework" with a development process that incorporates personal interviews. including recruiting. The software's various processes are collaborative and allow follow-up from employees and managers to improve dialogue between the two groups. The company described its mission as. "The complete recruit-to-retire process. immediate and accurate view of HR-related activities. but not suitable for smaller businesses." A single integrated data model aims to supply a fast. Verdict: Microsoft Corp. time management and real-time analytics. but Microsoft Axapta Human Resource Management III is a pleasing exception to the rule. Oracle's HR product is comparable in many ways to SAP's module in scope and breadth.Oracle Corp.'s HRMS is designed to automate practically every HR-department function. Microsoft Axapta Human Resource Management III: Compatible with the Microsoft Dynamics AX ERP and building on HR support provided by Axapta versions I and II. although Oracle advocates would claim that their favorite software is more flexible and easier to use. payroll. 5. benefits. isn't exactly renowned for its innovative application software. performance management. training curriculums. IMPLEMENTATION OF HRIS 40 . The software aims to help businesses create professional development plans focused on employee's goals and skills. skill-gap analysis and other components. Verdict: Oracle HRMS is thorough and highly capable. compensation. skills matching. learning.

It is important that a clear step-by-step process be outlined. a sturdy timeline be in place and common issues that normally arise. This step could either be a “Step Two” in the purchasing of a new HRIS system or it could be the monkey wrench in the process. GENERAL TIMELINE FOR IMPLEMENTATION 41 . be discussed and prevented before the HRIS is implemented.After purchasing your new HRIS software it is now time to implement your new system. Common misconceptions and unclear timelines can greatly damage and slow the implementation process.

consultant and your team drill-down on the information gathered during the Business Process Audit and discuss in detail your requirements. structure and the steps necessary to successfully integrate the solution into your environment. a finished timeline with dates is forwarded for your approval. WHAT IS THE IMPLEMENTATION PROCESS? a. Review and Testing: An important step in implementation is confirming that the information is accurate and business rules are working properly. After the meeting. After core data is implemented. training users on how the system is used and trouble shooting to ensure users can be off and running after the system is installed. setup and configuration continues to complete this phase. preparing and converting data. This is also the start of creating the timeline and assigning responsible parties for each step of the project. Discovery: In the discovery session. A typical install usually takes an average of six to eight weeks with a technician spending six to eight hours a day.A common misconception of implementing an HRIS is the time it takes to get your system up and running. b. Installation: Depending on the solution. installation is performed by your IT department. consultant or both. c. This time includes installing the system. Some of the products may require skill sets that might require a consultant to do the installation. a project manager. It is important that these dates be carefully reviewed. It is important that a timeline be established before the process begins and all involved in the process follows the timeline as closely as possible. Data Conversion: Implementation of relevant HRMS data from your current systems. one day a week. as future changes can cause delays. d. 42 .

Through the knowledge gained during setup and review. Going Live: This is the day your investment begins to pay dividends. valuable functions are not being used most effectively or not at all. THINGS THAT CAN TYPICALY GO WRONG DURING AN INSTAL • • • • Old system data is in an unstable format Old system data can not be found Unclear expectations Prep work has not been done or is incomplete 43 . a review of how the system is being used is necessary. Training should be focused on the core aspects that prompted the purchase. Training: Training sessions should begin with an overview of the system. be sure your consultant provides guidance and remedial training to ensure that you obtain the full value from your investment. time is needed to refine the steps required to use the system to match your internal processes. be sure that your consultant records their observations regarding the need for additional training and implementation assistance. Post Implementation Review: Some time after the go-live.e. During this entire process. Often. g. At this point. f.

so be aware that this can take some time. this defeats the purpose of the new system. The new system should not be used the way the old system was.HOW TO PREVENT ISSUES FROM ARISING Have a clear timeline – Realize it is going to take as much time to implement the system as it is going to take to prepare for implementation. Data that needs to be transferred from the old system to the new should be accessible and ready for the consultant. It is going to get some getting used to and some training for users to familiarize themselves with using the new system. Team effortUsers should be reading the manual at each step of the implementation to ensure all questions are being answered before they become an issue. this data is entered into the new system by the users. 44 . Clear expectations – Understand that the new system is not the old system. In most cases. Users and consultants should be working as a team to ensure the deadlines that were set before implementation are being met and followed.

But what many people don’t focus on is that the new HRIS will most likely affect the company much more deeply – it will challenge the operating structure and principles of all the HR-related departments. The core concept of a centralized data store inherent with an HRIS demands integrated work processes for consistently managing that store. Most often these firms are replacing several related systems. with one HRIS that does it all. payroll system and benefits system. Many people focus on the improved reporting and processing that will be realized from the new system. and those are the reasons most firms choose to implement a HRIS. such as a personnel database. The two attributes – centralized data storage and integrated work processes – will affect the company in ways most managers don’t expect. An integrated HRIS results is a drastically different environment than a cluster of related but separate systems. EVALUATING 45 .THE IMPACT OF IMPLEMENTING AN HRIS Integrated HR Information Systems (HRIS) have a profound effect on firms that implement them.

Or if not enough due diligence and research have been done. we won’t need as many people in our department (we won’t need to key W-4s anymore). The hiring process is a good example. As this team drives deeper into the selection criteria. hired and paid each department may have its own specialized system and process for managing the employee data. but scared by the ramifications of closer ties to other departments. Payroll. The team members are excited to find a better way to get the work done. an HRIS implementation project has a much greater chance to succeed. As this team prepares its evaluation criteria and reviews HRIS features. This gap in planning will show itself later in the implementation phase when the project team realizes there are not enough resources – time. Benefits. the team may be facing this effort and not be aware of it. Training and so on. it begins to get a better grasp on what the entire company’s business processes are. 46 . As the HRIS evaluation team discovers redundant processing and data storage. As the team evaluates an HRIS software package. Employee Relations. while Benefits may be looking for a more streamlined enrollment process.AND PREPARING FOR A HRIS Many companies go through a process of comparing and evaluating several HRIS packages using a team of analysts or managers from the various departments affected – HR. With correct. its members start to see ways to make the process more efficient by aligning their part of the hiring process with the requirements of the other departments. The team will most likely find that none of the packages are an exact fit and that substantial effort is required to modify or integrate the chosen HRIS. Payroll is concerned with the system’s paycheck calculations and regulatory reporting. the members learn more about each other and may start to see the emergence of some really messy business processes. Perhaps the most critical results of the HRIS evaluation process are that the evaluation team set correct expectations for the project and gain executive management commitment. and therefore what the company might require in an HRIS. It can be a bittersweet process. and we might lose control of some piece of data that is critical to our business function (how do we know that HR will key the W-4 correctly?)”. much is learned about the goals and values of the various departments. They think:” If we improve the efficiency of the process (have HR enter the W-4 at the time of hire). or at least realistic expectations and an executive management team that seriously supports the team’s efforts. people and money – to implement the HRIS. As a person is recruited. The HR department is looking for improved reporting of employee data.

Either way. The customizing or configuration tasks then become a process of understanding the firm’s business processes well enough to encode that logic into the HRIS. but other times the people lack basic analytical skills required for the implementation. instead of setting expectations and building executive support. THE HRIS IMPLEMENTATION PROJECT Configuring the HRIS There are three primary activities in an HRIS implementation – configuring the HRIS for the firm’s business processes and policies. but the system does not come delivered with a firm’s specific benefit providers and eligibility rules. but firms will need to customize the system to process according to their specific needs. An HRIS comes with built-in processes for most HR activities. For example. and preparing the organization for the HRIS. Having partially dedicated team members may cause tension since the team members have to maintain responsibilities at the home department while also fulfilling responsibilities on the project team. every HRIS supports the process of benefits open enrollment. Sometimes training can resolve this.Most often the HRIS evaluation team members spend most of their efforts building selection criteria and choosing an HRIS. This mapping of business processes and policies into system control tables requires people who understand both the business process and the HRIS – typically the existing IT support and HR business analysts. Firms may find that the internal resource people assigned to the project do not have the skills or capabilities needed for the job. requiring the ”home” departments to fill the gaps in their absence. back-filling resources becomes a big issue if not planned for during the evaluation stage. Due to the large amount of work. Customizing the HRIS for this typically does not involve programming. 47 . the HRIS project team usually needs these analysts fully dedicated to the project. the common activity is to enter specific data into control tables that then direct how the HRIS operates. interfacing data with other systems and converting historical data into the HRIS.

The project can get done this way – but the more an implementation team relies on external resources the more difficult it will be for the company to become self-sufficient in ongoing HRIS support. don’t really understand or know the processes well. As business processes are designed.e. or else the company should rely on external resources (i. once-independent departments become much more dependent on each other. business process reengineering. maintenance. The most analytical people in HR and IT should be assigned to the project. Or. once the project team members become comfortable with the processes they have designed. they may have a hard time selling those changes back to their departments. and discovers its true business processes. as the project team analysts dig into the current business processes. Knowing the why part is critical to getting the most 48 . As a firm documents.One of the key requirements for a person to be successful on an HRIS implementation project is that he/she have excellent analysis skills. and sometimes managers. Most HRIS packages don’t handle exception processing very well. Users may know what is done. and operations. the project team customizes the HRIS around those processes. Finally. a more narrowed implementation of the process to enforce data integrity and accurate application of HR policy. it’s natural that the firms also take time to improve them. investigates. That dependency can increase tensions on the project team as representatives from those departments learn to trust others to do their part of the process. they may find that the HR users. Users will most likely find that exception cases require significant manual thought or labor to process – since the exception does not fit into the business process as implemented in the HRIS. contractors or consultants). to one degree or another. This is a great time to enforce some standards and clean-up ”special deals” – but HR managers and policymakers must be willing to support these efforts. but not why it is done. The integrated nature of most HRIS packages drives this activity. HRIS project team analysts will walk a fine line between generalization of the process to fit exceptions vs. Many HRIS implementations include. When a process is reengineered or integrated. or at least integrate the processes across departments. and to help implement them.

System implementation may highlight employee data privacy issues. or increase the scope of interfacing once the project team realizes just how many systems read employee data from the current HR-related databases. Preparing the Organization Many times it is easier for project teams to focus on technical aspects of the implementation. configuring the HRIS to correctly assign resident tax codes based on the employee’s address is easier than getting HR. benefits. reengineered or streamlined business processes the existing employee data may not fit well into the system. The HRIS will demand more complete and accurate employee data. incomplete. If the data model in the warehouse is based on the legacy HR database. If the firm has a data warehouse. most often group members will find (particularly when combining data from several existing systems to go into one HRIS) that the existing HR data contains a significant amount of invalid. In most every HRIS there are two or three technical methods of implementing any given requirement – knowing why something is done in a business process helps ensure the project team analysts select the best method of implementing it in the HRIS. HRIS project teams spend more effort than planned on this issue – the details can get very tedious and time consuming. the two data models may not be compatible. the project team might be tempted to use it. As the HRIS was configured for. payroll. the HRIS data will need to be mapped to it. Linking the HRIS with Other Systems Most HRIS project teams have a number of people assigned to converting historical data from the existing HR databases into the HRIS. which is ineffective. thus increasing the demand for time from HR analysts on the project team – time that the analysts most likely do not have. but they’ll still have to contend with converting existing historical HR data into the warehouse.out of your HRIS implementation. A lot of effort can be spent mapping the HRIS to an existing data warehouse. As this group starts mapping historical data to the system for conversion. 49 . For example. Or if the HRIS vendor has its own data warehouse application. Many HRIS project teams discover these requirements too late. not the programmers writing data-conversion routines. Replacing HR systems involves any area of the company that reads or relies on employee data. Conversion and interfacing are not solely technical activities – user consultation and input are required. Making sense of these data conversion problems is a skill that falls to HR analysts. or contradictory data. as well as for interfacing the HRIS with other systems that rely on HR data. and recruiting to buy into and implement a reengineered hiring process. Either way.

This is a common. 50 . Better reporting of employee costs. and parts of HR business processes were scattered throughout various departments. They may be accustomed to pushing responsibility for such projects onto IT managers. and a shared-services group is established to perform the integrated work processes that were once scattered. configuration experts. A HRIS. give senior managers information that can be used to improve the application of HR policy or to cut costs (i. skills and requirements. Finding a way to implement this cross-functional team is a critical success factor for the HRIS’ ongoing operation. and also implement a organizational structure with the HRIS roll-out. the previous organizations are transformed to report to a single authority. LIVING WITH THE HRIS Changes in the HR User Community An integrated HRIS leads to more integrated reporting of employee data. From the very beginning there must be a focus on preparing the organization and the employees for the HRIS. All of the items mentioned so far force HR managers to become involved in what is usually perceived as an IT project. cutover. but often unexpected. resourcing and management. implementation. and business analysts – to successfully support the HRIS. highlighting wasteful compensation practices.e.The HRIS project team must track progress not only on the technical aspects of implementing the HRIS. HR and Payroll may have reported to separate areas of the company. but also on the softer side of managing the organization as a whole to accept the business processes that come with the HRIS. result of HRIS implementations. tends to pull related departments together. Companies typically underestimate this changemanagement effort. with more integrated work processes. etc. Some firms recognize this as they go through the implementation process. But as a HRIS is implemented. But this integrated support team does not fit well into the vertical departments in most companies today. reducing time-card fraud. time-keeping and recording. but implementing an integrated HRIS requires HR manager participation and active involvement in scoping.). During the implementation phase. For example. which can lead to efforts that benefit the company. firms should also be determining what their support model will look like – what kind of organization will be required to support this HRIS? Those who study this task in detail will realize they need cross-functional support teams – containing programmers (ABAP). etc.

centralized HRIS tends to pull user departments together. An integrated. or screen-based/code-based systems. The resulting shakeout has to happen. The user cannot simply be trained to put certain codes into certain fields -. If a more centralized. integrated HR organization doesn’t surface during the implementation period.he/she must know the business process and how it relates to the HRIS. These issues in turn get pushed up to HR managers or executive management.Most integrated HRIS packages are very sophisticated in the functionality and processes they offer. Eventually. Either way it happens – at implementation or via evolution -.this level of 51 . Compared to legacy. In most companies. Using integrated work processes across departments that do not operate under a common authority will highlight data and process ownership issues. these managers resolve the issues by increasing the integration of the departments to match the processes. the HRIS requires a more analytical user. and it is most often painful – either for the employees themselves or for the HRIS supports organization. others will not. a certain portion of users will be able to make this jump to” analytical” thinking. the organization will tend to evolve in that direction.

Supporting the HRIS IT support analysts may be accustomed to. The first area from which to gain commitment is the 52 . the business analysts are necessarily drawn into this activity. or rely on consultants who help with the implementation. Many times this happens because the firm can pay a consultant to do precisely what the firm wants to do. The resulting dilemma can create retention problems. It takes some of the pain out of change management. flat-file processing techniques. HR business analysts and managers have the most to lose if the HRIS does not process transactions correctly. RECOMMENDATIONS FOR SUCCESS given all the things that often do go wrong with HRIS implementations. Often these skills will be in high demand. The higher pay might be outside the HR guidelines for fair salary. payroll and benefits – must take a more active role in ongoing support and system changes.organizational change is always difficult. or they may demand higher pay at the company. Internal resources may opt to leave the company for the higher pay. driving a premium rate of pay. and only skilled for. As with most successful efforts. no grand secret for avoiding all the problems. which is often easier than getting internal resources to do the same thing. HR users – the analysts in HR. This can lead to a continued dependence on external resources and might be acceptable for firms that have historically relied on external resources. Some companies depend too much on consulting firms or contractors to perform an implementation. Although either of those scenarios can work. The HRIS may have proprietary languages or facilities. Most HRIS packages rely on relational data models. higher-level programming languages. requiring IT skills. Some firms may push this “business rule” knowledge to their IT support analysts. For others it may generate substantial internal conflict in the way of higher IT budgets or continued presence of non-employees in the HRIS support organization. Since business rules are often coded into the HRIS instead of resting in manual processes. a successful HRIS implementation requires participation and commitment from all areas of the firm. Placing HR analysts in system support and change roles will help ensure that the HRIS processes transactions correctly. and interactive data management – presenting technical requirements for which some IT analysts may not be ready. what can be done to ensure a smooth transition? There is no one solution.

The executive managers should appoint a steering committee containing stakeholders from all areas affected by the HRIS (payroll. One of the most important roles of the steering committee is that of “winning the HR managers. Without this support. employee relations. etc). Support from executive management is invaluable for making sure business processes are implemented effectively. Given the level of change such a project will create.firm’s executive management – the sponsors of the project. and for ensuring appropriate staffing on the project team. there will be areas that resist the implementation. the payoff of the HRIS will most likely be compromised. and will cause disruptions in employee service. The steering committee should take an active role in resolving broad issues and taking corrective actions if the project gets off course. HR. that they are involved in the implementation. This group should contain members who can ensure that their line managers have the necessary directives and responsibilities for making the HRIS operational. and that they support the project with a 53 . for funding the project.” The steering committee needs to ensure that managers fully understand the impact of a HRIS system. IT. benefits.

but also prepare the ground for dealing with changemanagement issues. 54 . For those HR analysts who are placed on the HRIS project team. The project manager can get an indication of these issues early in the project by comparing the goals of the different stakeholders involved and identifying all the inconsistencies.positive attitude towards change. The HR analysts and the technical analysts must learn how to work together to solve issues neither group can solve alone – such as data conversion and interfacing. and technical analysts will learn more about HR. their managers need to be fully aware of the analyst roles in the project. HR analysts will become more technical. as well as assuring that the project is appropriately staffed. The steering committee should be responsible for appointing a project manager or project management team. The project manager should carry out team-building exercises for employees who will have to work together. The project planning process needs to include not only the technical tasks but also the processes and deadlines for change management tasks. This will not only set an example and guideline for each committee member’s department. since many people who will be assigned to the team may not have experience operating in such an environment.

during and after the implementation. employees who have demonstrated their interest and ability to work with the system and who have gained substantial knowledge of it should be offered an active system-support role together with a promotion. Certain employees – payroll clerks. working on the HRIS project. Instead of forcing them to make the transition. This should motivate other employees to follow their colleagues’ paths and will discourage internal system experts leaving the company for a higher-paying consulting job. and even managers -. The training need to go beyond screen-prints and mouse-clicking sequences to an explanation of how the process fits into the organization. Firms can be 55 . its relationship to other processes.Managers need to review and possibly redefine the roles before. Managers also must start back-filling the positions left by the analysts to ensure their departments still run smoothly and the analysts are not torn between working in their departments vs. Employees will have to know the why as well as the how of the process. Training – technical and non-technical – must be identified and performed to help people make the transition to working with the HRIS and the organization model. job descriptions may need to be prepared and managers need to brief employees about any changes and additional responsibilities. and the execution steps in the process. Formalized crossfunctional support teams are essential to the steady operation of the HRIS. Likewise. and the steering committee must accept the fact that there will be some turnover. benefits analysts.may not want anything to do with the HRIS and the processes that come with it. it is often wiser to place them outside the HRIS-related organization in roles appropriate for their skills. IT support. Not every person will be able to make the transition to a HRIS. A transition plan needs to be constructed.

co-located team of HR and IT analysts will be most effective. but that loose-knit framework may not hold up to the continued demands of HRIS support. A formalized. 56 .successful by patching together an informal organization of HR analysts and IT analysts. manage relationships with the HRIS vendor. The steering committee is an excellent group to monitor the ongoing quality of HRIS operations. This is natural – managers for years have organized their departments to fit the way work is done. When the way that work is done changes – and an HRIS will engender that change – it’s natural for the organization to change as well. Many firms also find it useful to preserve the steering committee past HRIS implementation and into the productive life of the HRIS. most will see that their organizational structure will tend to reflect the HRIS structure. and the organizational culture often reflects that structure. and clear the path for later HRIS upgrades or enhancements. It may take years for a firm to adjust to a HRIS. As it does.

Barriers to the success of an HRIS: Lack of management commitment o o Satisfaction with the status quo o No or poorly done needs analysis o Failure to include key people o Failure to keep project team intact o Politics / hidden agendas o Failure to involve / consult significant groups o Lack of communication o Bad timing (time of year and duration 57 .

Hence only large companies have started using HRIS to complement its HR activities. SAP and Peoplesoft provide HR modules within their business intelligence software. But trends are changing for the better as more and more organizations realize the importance of IT and technology. Learning organization The primary reason for delay in HRIS implementation in organizations is because of the fear psychosis created by "technology" and "IT" in the minds of senior management. They may not be very tech savvy and fear being left out.Critical Analysis Although almost all HR managers understand the importance of HRIS. Project based work environment. Increase of knowledge workers & associated information. • • • • • Large amount of data and information to be processed. They are also coming up with very specific software modules. Employee empowerment. This is because of a number of reasons. the general perception is that the organization can do without its implantation. which would cater to any of their HR needs. Hence HRIS would soon be an integral part of HR activities in all organizatio 58 . Major HRIS providers are concentrating on the small and middle range organizations as well as large organizations for their products. But HRIS would be very critical for organizations in the near future.

59 . Robust and user-friendly reporting tools are also critical. Utilizing a Web-based platform allows you to streamline the entire HR lifecycle from recruitment and training to payroll and benefits administration. While employee access to a wide range of HR lifecycle services is helpful in streamlining HR processes. Consolidating these processes into once system allows small and medium sized businesses to proactively manage HR operations and improve efficiency. Employees are less likely to embrace these services if they are too complex. it is extremely important to choose a Web-based HRMS platform that is easy to use. With a centralized Web-based HRMS platform to support your HR department. pre-employment testing. and equipped to help you reach your goals.CONCLUSION Tracker and Manager Your Most Valuable Asset . your employees.Your Employees. and control your most valuable asset. manage. Keep it simple. Regardless of industry or size. well-supported. labor law resources and skills training. Most Web-based HRMS platforms offer much more than HR and employee benefits services. applicant tracking. The key to finding the right HRMS system is selecting an HR business solution that is secure. an HRMS platform can help small and medium sized businesses achieve unprecedented levels of efficiency and productivity and can offer your organization the tools and services to stay competitive. This provides you an edge by enabling you to focus on your core business. background checks. you have the ability to successfully track. talent management. recruiting tools. Look for a solution that offers a wide range of service offerings including payroll. http://www.absusa.ascentis. Gauttam hettangde (Chief Technology Officer) & Director of CBT Infotech. Rajesh shukla (Project manager of CBT Infotech http://www.qqesttime.cortdirections.) & http://www.nuviewinc. • Great Help from • And special thanks to 60 .com/ http://www. Rita balachandran (Head of faculty NIS Academy) • Mr.

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