OHSU, SONY, NOVARTIS, AND OTHERS: STRATEGIC INFORMATION SYSTEMSIT’S HR’S TURN

I. BACKGROUND

Human Resource technical hitches are: reducing cost of hiring, retaining, and compensating employees and specially to optimize corporate talent pool. In recent years, HR departments have focused their technology efforts on driving down costs by automating or outsourcing nonstrategic, transaction-oriented processes such as benefits enrollment and payroll.

Large and mid-size organizations are increasingly turning to employee management applications- commonly called Human Capital Management (HCM) or Workforce Optimization Software- to automate HR processes that used to be done manually, on paper or by e-mail. Companies need to automate their systems so they can better identify employees they want to retain and then provide a career path for them.

II. PROBLEM STATEMENT

This case details different strategic information systems of human resources. Some of the problems to be discoursed are as follows: (1) what are some of the business benefits of the technologies described? (2) Whether the business value of these strategic HRM applications depends on the type of business a company is in, for instance, consulting, manufacturing, or professional services? Why or why not? (3) What are some of the challenges and obstacles in developing and implementing HRM systems? Are these unique to this type of system? What strategies would you recommend for companies to meet those challenges?

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III. ANALYSIS/EVALUATION

FUNCTIONS THAT CAN BE AUTOMATED WITH HCM

PERFORMANCE MANAGEMENT CAREER DEVELOPMENT SUCCESSION PLANNING

Employee performance management, career development, and succession planning are all functions that can be automated with HCM applications. Career development and succession planning applications have also become more important as baby boomers retire and organizations have to find qualified replacements. Succession planning isn’t just for CEOs and other top executives anymore. It’s starting to cascade down into the organization as collecting and associating of employee information become easier. Managers can associate key characteristics with specific jobs and analyze traits of successful employees. Employees themselves can use data to see their most likely career paths in an organization. Compensation Management, another function of HCM tools, enables organizations to create incentive programs, compensation to performance goals and analyze pay Packages and trends.

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HR APPLICATIONS CONTAINS VARIETY OF EMPLOYEE DATA INCLUDING:

SALARIES EXPERIENCE EDUCATION PERFORMANCE REVIEWS BENEFITS SELECTIONS

HR applications often contain a variety of employee data, including salaries, experience, education, and performance reviews and benefits selections. Analysis tools can enable HR managers to leverage those data for strategic decision against company benchmarks, forecast the skills that will be needed for future projects, analyze salary increases by geographic region or professional field, or predict trends in benefits selection and costs.

Individually, the various HCM tools are helpful, but to get the optimal value, they need to be integrated, with the data stored in common repository.

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(1) BUSINESS BENEFITS OF THE TECHNOLOGIES DESCRIBED

OHSU (Oregon Health & Science University)

ORACLE CORP.'S i-RECRUITMENT software (1.) Electronic order to hire an employee B (same way a factory manager uses ERP software to order parts for assembly line)

E N E F I T S

pay-off is significant (University is filling job openings 2 weeks faster than it once did and saving at least $1,500 per job)

(2.) Managers are enabled to request a new employee and process applications electronically.
The software handles most of the time-consuming administrative work, including routing requisition forms to the appropriate managers and posting the job on the Web-site.

(3.) OHSU has access to applicants only minutes after a job opening is posted o the university's Website, and it fills those jobs in just four weeks instead of 6 or more.

ORACLE'S MANAGER SELF-SERVICE module (for logging changes to employees status) Example: promotions or use of family leave; application for benefits

SONY COMPUTER ENTERTAINMENT AMERICA INC.

WORKFORCE LOGIC software to automate its process for hiring contract workers.
BENEFITS

Useful for ensuring that hiring managers understand and comply with the legal distinctions between contract and salaried employees.
HOW: Upon requisition of a contractor, they must answer a series of questions through WorkforceLogic interface, the application renders recommendation on whether position is best filled by a cntractor or by someone on the payroll.

TYCO INTL. LTD.

KENEXA'S CAREER TRACKER to track employee performance and promotions. (1.) Software , configured with Tyco's performance standards and rating system, can plot employee performance on a graph to identify the top B performance on a graph to identify top performers, both in terms of job E achievement and in meeting Tyco's leadership behavior standards. N E (2.) Using database of employee credentials and expertise, Tyco can F locate best people to fill key job opening and analyze what type of I training they'll need T S It can identify who they have and how they fit. (3.) Promotes people based on purely objective criteria. It brings some real science to the process and allows you to not only identify your top performers but also to know why they're top performers.

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BANNER HEALTH

KRONOS SCHEDULING APPLICATION (1.) Used to log hours worked and to plan schedules, to avoid formidable tasks of scheduling work shifts for 27,000 health care professionals in a wide range of specialties and at multiple locations. (2.) Integrating data about hours worked with future scheduling helps to ensure that employees aren't expected to work if they've just put in a lot of overtime.

BENEFITS

NOVARTIS AG

SABA SOFTWARE INC.'S LEARNING SUITE Administrative work has been reduced by 50%. It allowed administrators to be more efficient and take on other work.

(2) WHETHER THE BUSINESS VALUE OF THESE STRATEGIC HRM APPLICATIONS DEPENDS ON THE TYPE OF BUSINESS A COMPANY IS IN, FOR INSTANCE, CONSULTING, MANUFACTURING, OR PROFESSIONAL SERVICES? WHY OR WHY NOT? Yes, Business value of different HRM applications depends on individual type of business. It depends on the business type and the specific requirement of such company. For instance, the following hourly performance appraisal1, and employment application form2 below is incorporated in the HR system so that paper works are reduced and that a matrix can be used to suit the needs of the company. Be it noted that different companies have different needs and identifiable expectations from their workforce.

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http://www.entrepreneur.com/formnet/form/624 Ibid

BEN.

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(3) CHALLENGES AND OBSTACLES IN DEVELOPING AND IMPLEMENTING HRM SYSTEMS? Some of the challenges are as follows:  Running an ad in the internet may produce lots of applications and if no individual was hired, then that was a whole lot of administrative work that didn’t bear any fruit.  Changing HR system from transactional to strategic can take time and effort. (3-5 years for some companies)  It may lead to depersonalization of the employment relationship.  There may be some technical error which may lead to misapprehension.

IV.

RECOMMENDATION

Strategic information system, such as employee lifecycle management should support for HR business processes and managing organizational data. Note that the system is designed not simply for the HR team, but also for the benefit of individual employees, managers and business

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leaders in mind. HR and business leaders will have ready access to the data they need to make sound business decisions, and intuitive enough that employees and managers can keep their data current.

In addition to the program or strategic information system, Company must give employees self-service access to update critical information and create richer profiles to engage with others in the organization to get work done more easily and efficiently. Discussion groups and group workspaces allow valuable business insights to be shared as they happen and enable co-workers to virtually gather around a project to collaborate, share documents and perform tasks together. Managers can utilize the corporate data and benchmarks to gather the crucial information necessary for making key strategic business decisions, such as identifying and evaluating employee potential for promotions or transfers. Personal relation must be maintained and trainings must be advocated.

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