Chapter 1

A Brief History and Overview of

Technology in HR
 HISTORICAL ERAS IN HRIS

• Pre–World War II

– Reactive, “caretaker” role

– Recordkeeping – manual
– “Scientific management” philosophy
– Not major part of business
– Few government regulations

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
2
 POSTWAR: 1945–1960

• Importance of employee morale

• HR part of operating costs, not in mainstream
• Labor inions established
• Job descriptions gain popularity
• Payroll function among the first for automation
• Job analysis, employee skills begin to be tracked
• R & D in selection
• Mainframe usage by defense industry in HR

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
3
 SOCIAL ISSUES PERIOD: 1963–1980

• Social issues legislation impact HR

• Protector of employees
• Intro of IBM 360
• Advent of MIS
• Paperwork and reporting increases
• HR now more in mainstream of operating
budget

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
4
 COST-EFFECTIVENESS: 1980-1990

• HR cost justification activities

• Increased role due to paperwork required in
legislation
• Microcomputers and software advances
• HRIS capabilities lower in cost
• Increased emphasis on R&D
• Utility analysis critical
• Smaller companies can utilize HRIS

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
5
 TECHNOLOGY ADVANCEMENT ERA
(’90s–TODAY)
• Internet-enabled Web services
• HRIS more commonplace
• Business process re-engineering
• HR balanced scorecard
• Strategic HR management
• HR becoming more visible as a “strategic business
partner”
• Globalization of companies
• Hardware–software tools in decision-making
Kavanagh, Human Resource Information Systems 4e.
SAGE Publications, 2018.
6
THE EVOLUTION OF STRATEGIC HRM
• Contingency perspective and fit
• Resource-based view of the firm and social capital
• HR system components and structure
• Expanding the scope of HRM beyond the focal
organization
• Achieving HR implementation and execution by
translating the rhetoric into practice,
• Measuring the outcomes of SHRM by (e.g., balanced
scorecard approach)
• Research methodological issues that stress the
importance of evidence-based management
• Adoption and use of HR metrics
• Application of “Six Sigma” processes to HRM

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
7
 COMPETITIVE ADVANTAGE

Three Categories of Resources

• Physical

• Organizational

• Human Most Critical

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
8
 ACTIVITIES OF HR

Transformational

Traditional

Transactional

Wright, McMahan, Snell, & Gerhart, 1998

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
9
 HR ACTIVITIES & TIME SPENT
• Transactional (65–75%)
– Benefits Administration, Recordkeeping, Employee
Services
• Traditional (15–30%)
– Recruitment, Selection, Training, Performance
Management, Compensation, Employee Relations
• Transformational (5–15%)
– Knowledge Management, Strategic Redirection
and Renewal, Cultural Change, Management
Development
– Added Value
Wright, McMahan, Snell, & Gerhart, 1998

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
10
 INTERFACE BETWEEN HR AND
TECHNOLOGY
• IT as a tool, not a substitute for people
• How might the changes in technology impact
the role and perceptions of HR departments
and professionals?
• How might technology aid in the
advancement of strategic HRM?

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
11
 HRIS
• Human Resources Information System (HRIS)
– Computerized system that provides current and
accurate data for purposes of control and decision
making
– Benefits
• Store and retrieve large quantities of data
• Combine and reconfigure data to create new information
• Institutionalization of organizational knowledge
• Easier communications
• Lower administrative costs
• Increased productivity and response times

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
12
 HRIS DEFINITION
• Not just hardware–software
• Includes people, forms, policies, procedures, and
data
• Purpose – provide accurate and timely
“information” to the “clients” (or stakeholders) of
HR
• Variety of users
– Strategic
– Tactical
– Operational decisions

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
13
 E-HRM & HRIS
• Electronic human resource management (E-
HRM)
– Information technology (e.g., Web) – central
component
– Application and HR-function focused
• HRIS
– Technology and processes (e.g., databases,
enterprise resources planning [ERP]
architecture, smartphones, etc.) that support
employee access to HR data and the move to
E-HRM
Kavanagh, Human Resource Information Systems 4e.
SAGE Publications, 2018.
14
 BIGGEST ADVANTAGES OF HRIS

Reduced manual handling and paperwork

Or
Enables greater impact of paperwork on business
operation
– Reports
– Analysis
– Negotiations
– Communications

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
15
 Why Do We Need an HRIS?
• Providing a comprehensive information picture as a single,
integrated database; this enables organizations to provide
structural connectivity across units and activities and to
increase the speed of information transactions
• Increasing competitiveness by improving HR operations and
management processes
• Collecting appropriate data and converting them to information
and knowledge for improved timeliness and quality of decision
making
• Producing a greater number and variety of accurate and real-
time HR-related reports
• Streamlining and enhancing the efficiency and effectiveness of
HR administrative functions
• Shifting the focus of HR from the processing of transactions to
strategic HRM
• Reengineering HR processes and functions
• Improving employee satisfaction by delivering HR services more
quickly
Kavanagh, Human Resource Information Systems 4e.
SAGE Publications, 2018.
16
 Harnessing the Potential of an HRIS
The ability of any organization to gain effectiveness and
efficiencies from human resources technology depend on
factors such as these:
• the size of the organization, with large firms generally reaping
greater benefits;
• the amount of top-management support and commitment;
• the availability of resources (time, money, and personnel);
• the HR philosophy of the company, as well as its vision,
organizational culture, structure, and systems;
• managerial competence in cross-functional decision making,
employee involvement, and coaching; and
• the ability and motivation of employees in adopting change, such as
increased automation across and between functions (Ngai & Wat,
2004).
Kavanagh, Human Resource Information Systems 4e.
SAGE Publications, 2018.
17
INFORMATION SYSTEMS PROVIDING
SUPPORT FOR HRM (Table 1.1)

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
18
INFORMATION SYSTEMS PROVIDING
SUPPORT FOR HRM (Table 1.1 Cont.)

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
19
SYSTEM DEVELOPMENT LIFE CYCLE (SDLC)

• Five General Phases

(1) Planning
(2) Analysis
(3) Design
(4) Implementation
(5) Maintenance
– Begins with planning and ends with continuous
evaluation

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
20
SuccessFactors Employee Home Screen
 A MODEL OF ORGANIZATIONAL
FUNCTIONING
• Organic model
• HRIS is critical to the efficient operation of an
organization
• Interrelatedness between the strategic
management system, the strategic HRM
system, and the performance goals
• Business and HR are generated during the
strategic planning process

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
22
 A MODEL OF ORGANIZATIONAL
FUNCTIONING
• The HR goals drive the HR programs that provide
management the tools for the efficient and effective
use of employees
• The HRIS has become increasingly important in
supporting the HR management system, as well as in
strategic planning
• HR metrics and cost–benefit results (value added
and return on investment [ROI]) are in continual
interaction

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
23
 A MODEL OF ORGANIZATIONAL
FUNCTIONING
• National culture impacts entire model through
strong effects on external environment
• External environment influences internal functioning
of organization
• Interaction between strategic management system
and strategic HRM will improve the functioning of
the organization

Kavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018.
24