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CHAPTER 10

HR Administration and HRIS

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TRANSACTIONAL HR
ACTIVITIES
Transactional Activities Make Up 65-
75% Of All HR Activities.
Examples Of HR Administration Include:
Benefits Administration

Record Keeping

Employee Services.

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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INTRODUCTION TO HR
ADMINISTRATION AND THE HRIS
ENVIRONMENT
HRIS Employee Master File FILE (EMF)
Must Be Carefully Constructed
Record And Repository For All Relevant Employee
Information
Must Be Created Prior To Other Modules For Programs

The Role Of HRIS Is To Enhance


Efficiency - Reducing Costs
Effectiveness - Adding Value For Internal Customer
Satisfaction

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JOB ANALYSIS

Job Analysis
The Process Of Systematically Obtaining Information
About Jobs By Determining The Duties, Tasks, Or
Activities Of Jobs,.
Job Descriptions
Define The Working Contract Between The Employee
And The Organization
The Heart Of The HRM System
Critically Important That They Be Accurate And Timely
HR Department Should Capture And Store The Results
Of The Job Analysis And Job Descriptions Within The
HRIS
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STEPS IN JOB ANALYSIS

1. Indentify Sources Of Information About The Job

2. Identify The Type Of Job Information Or Data

3. Determine The Methods Of Collecting The Job


Data
Use Standardized Techniques To Do Job Analysis (e.g.
Functional Job Analysis, The Position Analysis
Questionnaire System, The Task Inventory Analysis, And
The Critical Incident Method

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HRIS APPLICATIONS IN JOB
ANALYSIS
The Utilization Of Technology Has Dramatically
Increased The Availability Of Information Supporting Job
Analysis And The Convenience Of Conducting Job
Analysis.
O*Net Database
hr-guide.com
Vendors Offer Stand-alone Products Or Components Of A
Larger Product Offering.
Completing Job Analysis And Deriving Job Descriptions
Can Be Accomplished Through Online Survey
Techniques.
Maintaining Accurate Job Descriptions Can Also Be
Aided By An HRIS.

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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HR ADMINISTRATION & HRIS
Can Improve Efficiency Of HR Administration:

Can Improve Data Accuracy

Can Speed The Process Of Building Reports

Can Support Differences In Reporting Mandated


By Global Governmental Jurisdictions

Can Support Secure Global Distribution Of Data

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ENABLING ARCHITECTURE

Service Oriented
Extensible Markup Language
Architecture (SOA)
(XML)

Collection Of Internal Allows Data Sharing Across


And External Services Different Information
That Can Communicate Systems Across The Internet
With Each Other Improves Interface
Technology Through Platform
Independence And Protocols

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SOA BUSINESS MODELING
PROCESS
Figure 10.1

SOURCE: Marks and Bell (2006, chap. 3).


Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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ADVANTAGES OF XML-
ENHANCED SOA
Improved Security

Enhanced Performance

Added Auditing & Change Capabilities

Enables Alternate Delivery Models

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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TYPICAL HRM ADMINISTRATION
SERVICE DELIVERY ALTERNATIVES
Figure 10.2

Self-service portal

Shared
service center

Outsourcing
Offshoring

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THEORY AND HR
ADMINISTRATION

Resource-Based Transaction Cost


Theory Theory
Physical, Organizational & Choose To Purchase Goods
Human Capital And Services They Need In
The Competitive
Innovative Combinations Of Marketplace Or Make Those
Technology, Systems & Goods And Services
Intellectual Capital Generate Internally
Competitive Advantage
Make Or Buy. Eg., Full-time
Eg. Wal Marts Just-in-time Vs Temp Employees
Supply Chain Management

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SELF SERVICEC PORTALS AND
HRIS
Employee Self-Service (ESS) HR Portals
Provide An Electronic Means For A Companys
Employees To Access Its HR Services And Information.

Manager Self-Service (MSS) Portals


Specialized ESS Portal Designed To Allow Managers To
View Extensive Information About Their Subordinates
And Perform Many Of Their Administrative Tasks
Electronically.

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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COMMON SELF SERVICE
APPLICATIONS
Employee Self-Service
Distribution Of Pay Advice; Administration Of Leave;
Update Personal Details; Administer Training;
Employee Surveys; Distribute Reports; Timesheet Entry
Manager Self-Service
Complete Job Requisitions; View Resumes Of
Prospective Applicants; Performance Appraisals, View
And Prepare Merit Increases, Viewing Subordinate
Salary, Performance, And Training Histories
Non-Employee Self-Service
Job Postings And Applications

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SAMPLE EMPLOYEE SELF-SERVICE
(ESS) FUNCTIONALITY (Table 10.1)
Communications Benefits Services Personal Data Development

Review company Research and view Update emergency Enroll in training


communications plan rules and contact, address, courses
requirements telephone information

Access company Enroll in cafeteria-style Correct errors in View completed


policies or programs (medical, personal data (degree, training
procedures dental, insurance) graduation date)

Access HR policy Add and/or delete Change W-4 Access e-


manuals and e-mail dependents withholding forms learning
inquiry/help request internal/external
courses

Complete employee Model retirement View previous/current View/apply for


surveys or 360o and/or access 401K pay and performance internal job
feedback data savings investment information vacancies
records

View/respond to Model health plan Enter time reports, Complete


personal information alternatives costs vacation/sick days, and employment
requests from HR (e.g., HMO, PPO) travel expense reports tests for new
jobs

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EVALUATION OF SELF SERVICE
PORTALS
Advantages
Improved Speed & Quality Of Service
Reduced Enquiry Transactions & Dependency On
HR Which Reduce Costs

Disadvantages
Security Breaches & Identity Theft
Data Privacy
Admin Staff Pushing Admin Work To Others

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SHARED SERVICE CENTERS
(SSCs)
Shared Services
A Collaborative Strategy where Staff Functions Are
Concentrated In A Semi-autonomous Organization And
Managed Like A Business Unit To Promote Greater
Efficiency, Value Generation And Improved Service For
Internal Customers. (Goh et al. 2007, p. 252)

Flexibility Over Control


Services Covered: Finance, HR, IT,
Purchasing, Real Estate Mgt., Legal,
General Admin, Talent Mgt., Fleet Mgt.

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SHARED SERVICE CENTERS

To Demonstrate Its Value To The


Organization, SSCs Should Establish
Measures/ Metrics That Demonstrate:
Customer Satisfaction Levels

Productivity

Cost Controls

Quality

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SHARED HR SERVICES

Internal HR Dept. As A Strategic


Business Unit (SBU) Competes With
Outside Providers For Providing These
Services To Other Internal Departments
Costs
Quality
Value

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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EVALUATION OF SHARED
SERVICES
Advantages:
Focus On Delivering Timely, High Quality
Transactions; Focus On Customer Satisfaction;
Encourage Efficiency And Standardization;
Facilitate Development Of Measures Of
Efficiency, Quality, And Customer
Responsiveness
Disadvantages:
Costs Overriding Long Term Quality; Lack Of
Synergy; Power Shifts Between Depts;
Depersonalization (Technology Replacing People
Touch)

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OUTSOURCING AND HRIS

Practice Of Contracting With Vendors


To Perform HR Services And Activities
Focus On Core Competencies Core &
Non-core Functions/ Processes

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HR PROCESSES OUTSOURCED
Figure 10.4.

SOURCE: EquaTerra (2007, p. 4).


Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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TYPES OF HR OUTSOURCING
Discrete/ Selective Outsourcing
Outsourcing Only Particular Function (Eg.,
Recruitment) Or Part Of A Function (Eg., Executive
Recruitment)
Multi-process/ Blended Outsourcing
Outsourcing All Of One Or More Related HR
Functions (E.G., Recruitment And Selection; Defined
And 401K Retirement Plan Administration)
Total Outsourcing
Having All, Or Nearly All, HR Functions Handled By
One Or More External Vendors

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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SELECTIVE VERSUS
COMPREHENSIVE
OUTSOURCING
Figure 10.5

SOURCE: EquaTerra (2007, p. 4).

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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EVALUATION OF
OUTSOURCING

Advantages Disadvantages
Cost Savings
Loss Of Control
Performance
Strategic Benefits Realized By
Improvements Very Few
Loss Of Knowledge or Internal
Flexibility Expertise
Focus On Core Activities Loss Of Jobs Insecurity
Managing Costs
Costs Of Mismanagement

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
Inc.
OUTSOURCING

Backsourcing
Bringing HR functionality back in-house after
originally outsourcing
Offshoring
HR Outsourcing with Vendors Outside The Country
Enabled By Broadband & Internet Technologies
Primarily Utilized To Reduce Costs And Increase
Profits

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
Inc.
MOTIVATIONS FOR
OFFSHORING
Figure 10.6

SOURCE: Hatch (2004, p. 14).

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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TYPES OF HR OFFSHORING

Offshore Ownership Offshore Outsourcing


Opening A Subsidiary Traditional Contractual
Relationship With An
Joint Venture
Existing Firm
Purchasing An Existing
Firm.

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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OFFSHORING

HR Managers Reported That Most


Common Offshoring Includes:
Manufacturing (43%)
IT (29%)
Computer Programming (22%),
Customer Call Centers (29%),
HR Functions (16%).

Esen, 2004

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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CONSIDERING OFFSHORE
OWNERSHIP?

Higher Risk Associated With Offshore


Ownership

Important to Consider
Availability Of Employee Knowledge, Skills, And Abilities
Information And Communication Systems Compatibility
With HRIS
Government Regulations And Legal Employment
Regulations
Political Stability Of The Country And Employee Security
Cultural Differences

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LEGAL COMPLIANCE
U.S. Employment Laws Underpin The General Principles
Used In The Practice Of HRM.
Compliance With Local, National, International Labor
Laws
EEO, AA, Employment Awards/ Agreements, Health & Safety
HRIS Assists In:
Increasing Efficiency, Quality, And Cost Reduction In Fulfilling
Reporting Requirements
Accurate, Timely Recordkeeping And Reporting
Better Tools: Self Reporting; Electronic Report Submission
Enhancing Data Privacy & Security: Need To Know Basis

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HR ADMINISTRATION AND EQUAL
EMPLOYMENT OPPORTUNITY
U.S. Civil Rights Act Of 1964, Title VII
Provides EEO Requirements
Additional Requirements for Federal Contractors
(with over $50K in business)
Affirmative Action Plan (AAP)
Age Discrimination In Employment Act (ADEA)
Americans With Disabilities Act (ADA
Equal Employment Opportunity Commission (EEOC)
Gathering Data
Investigating Alleged Violations
Bringing Legal Charges Against Employers Who Fail To Comply

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EEO-1 REPORT (Standard Form 100)
Employers With 15 Or More Employees Must
Keep Records Regarding Compliance With
Law Based Category (Professional, Technical, Managerial,
Craft)
Sex
Race/Ethnicity
Revised Reporting Instructions Include
Designated Racial/Ethnic Categories
Columns For Reporting Individuals Who Specify More Than
One Race/Ethnicity
Employees Self-identify Rather Than Relying On The
Employers Visual Categorization (EEOC, 2006)

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EEO-1 CHANGES AND HRIS
Recent Changes to EEO-1 Reporting may cause
organizations to need to update their systems
Track Race Separately From Ethnicity
Separate Codes For Asian And Native Hawaiian Or Other
Pacific Islander
Modify Limitations On Reporting to Allow Reporting of
More than One Race
Insure Queries Can Identify All Individuals In A Particular
Category (E.G., American Indian), Even When
Individuals Self-identify As Two Or More Race Categories

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EEO-1 REPORT Figure 10.7

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OCCUPATIONAL SAFETY AND
HEALTH ACT (OSHA) RECORD
KEEPING
Developed To Establish That Employers Must
Provide A Workplace Free Of Known Hazards
Likely To Cause Death Or Serious Injury
Requirements
For Businesses With 11 Or More Employees, OSHA
Compliance Officers Are Required To Arrive
Unannounced For An OSHA Inspection
Required To Notify OSHA Within 8 Hours Of Any
Accident Involving Fatality Or In-patient Hospitalization
Of Three Or More Covered Employees
Complete An Annual OSHA Form 300

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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OSHA Form 300 Figure 10.9
SOURCE: U.S. Department of Labor (2004).

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
Inc.
Family Medical and Leave Act
(FMLA)
Family and Medical Leave Act (FMLA)
The federal law specifies that its provisions apply to
private employers with 50 or more employees in at
least 20 weeks of the current or preceding year (U.S.
Department of Labor, 2007).
California law applies the provisions of the FMLA to all
employers with 50 or more employees.
In contrast, Oregon applies the provisions of the FMLA
to employers with 25 or more employees in at least 20
weeks of the year.
HR managers operating in both California and Oregon
would be required to provide annual reports
demonstrating that they have complied with both the
federal and the state laws that are applicable.

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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Americans with Disabilities
Act (ADA)
THE LAW: The Americans with Disabilities Act of 1990
(ADA) prohibits discrimination and ensures equal
opportunity for persons with disabilities in employment,
State and local government services, public
accommodations, commercial facilities, and
transportation. It also mandates the establishment of
TDD/telephone relay services. The current text of the
ADA includes changes made by the ADA Amendments
Act of 2008 (P.L. 110-325), which became effective on
January 1, 2009. The ADA was originally enacted in
public law format and later rearranged and published in
the United States Code. (for more information:
http://www.ada.gov/)

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
Inc.
IMPROVED GOVERNMENTAL
REPORTING WITH
TECHNOLOGY
HRIS Records Can Be Established at time of
Employee Application
Simple Queries Can Secure Required Employee Data
Required Reporting Information Can Be Sent Quickly
Reduced Disruption of Operations
HR Employees Can Handle The Complete Reporting
Function
Changes In Mandated Reporting Requirements can be
Handled Mechanically By HR
Electronic Reporting Ensures Timely Receipt Of
Reports

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
Inc.
HRM AND THE BALANCED
SCORECARD
Balanced Scorecard
Both a Management And Measurement System
Enables Organizations To Clarify Their Vision And
Strategy And Translate Them Into Action, . . . [Providing]
Feedback Around Both The Internal Business Processes
And External Outcomes To Continuously Improve
Strategic Performance And Results (Arveson, 1998).
Measures Reflect The Value-added Nature Of
HRM In Leveraging Human Capital and are
Linked To The Strategic Goals Reflected In A
Firms Balanced Scorecard.

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
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Balanced Scorecard
Components
Figure 10.10

SOURCE: Arveson (1998).

Kavanagh, Human Resource Information Systems, Third Edition 2015 SAGE Publications,
Inc.
SAMPLE HR-BALANCED
SCORECARD LINKAGE Figure 10.11
FINANCIAL:
Return on Assets (Human Capital)

CUSTOMER
On-time delivery Customer
satisfaction

INTERNAL PROCESSES:
Improved productivity

LEARNING & GROWTH:


HR Training to develop new employee skills

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ALIGNING THE HR SCORECARD &
ORGANIZATION BALANCED
SCORECARD
1. Specify The Business Strategy To Be Supported (E.G.,
Customer Retention)
2. Identify Leading (E.G., On-time Order Delivery) And
Lagging (E.G., Customer Satisfaction Levels) Indicators
3. Identify Associated Internal Processes (E.G., Worker
Productivity, Product Quality)
4. Identify HR Linkages (E.G., Training, Rewards)
5. Specify The HR Strategy (E.G., Offer Enhanced Productivity
Training For Workers To Reduce Product Time-to-market
And Insure On-time Order Delivery)
6. Measure: Worker Productivity Increase, On-time Deliveries,
Customer Complaints To Demonstrate The Strategic Value
Of HR Training in the Learning And Growth Balanced
Scorecard Categories
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SAMPLE HR SCORECARD
MEASURES LINKED TO FIRM
BALANCED SCORECARD Figure 10.12
HR Functions To Support Backup Talent Ratiovalue Creation
Learning & Growth Competency Development Expense Per
Category (E.G., Employee Employeecost Control
Development) No. Of Special Projects For Employee

Developmentvalue Creation
No. Of Employees With Development

Planscost Control
HR Internal Efficiency HR Departmental Expense/$ Of Sales
Measures To Support Revenuecost Control
Financial Category HR Sales Training Expense/$ Of Sales

Revenuevalue Creation
HR Recruitment Expense/R&D Hirescost

Control
No. Of Patents Per R&D Hiresvalue
Creation

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