E-HRM AND

KNOWLEDGE
MANAGEMENT
Chapter 14
Dr B.K. Majola
Learning Outcomes
• Distinguish between an HRIS, MIS, E-HRM and HR Metrics.

• Appreciate the value of a human resource information system (HRIS).

• Share surprising truths about adopting an HRIS.

• Recommend a systematic plan for selecting and implementing HRIS in an organisation.

• Discuss the modules of an integrated HRIS.

• Explain how HR metrics can be used for diagnostic and reporting purposes.

• Comment on employees’ privacy and the use of E-HRM.

 C

Human Resource Information System

(HRIS)
◦ HRIS is a computerised system use to collect, store, analyze, retrieve, and print
information about employees, their jobs and employee services.

◦ It is an IT system used to store and distribute HR-related information such as:

◦ Employee details: Personal information, qualifications, competencies, career
history, leave information
◦ Job details: Grade, pay, hours, responsibilities.

◦ E-HRM is the use of the HRIS to analyse HR information and make decisions.

◦ HR metrics are measurements used to track HR trends.

 Value/Benefits of HRIS
◦ Processes information faster
◦ Improves accuracy of information
◦ Supports strategic HRM
◦ Reduces admin burden
◦ Improves flexibility of information
◦ Improves services to employees
◦ Produces HR metrics
◦ Improves HR processes.

◦ Nature of an HRIS- part of the Management Information System (MIS)

Surprising Truths about HRIS
◦ It does not significantly improve productivity
◦ It will solve all HR problems
◦ It will eliminate jobs in HR department
◦ It is complex and expensive
◦ It takes a long time to implement
◦ It requires expensive and intensive training
◦ Customising it is very expensive
◦ It requires constant involvement from IT department
 Steps in Selecting and Implementing an HRIS

◦ Conduct a self-assessment and internal needs analysis: Determine the gap between what the org. has & what it needs
◦ Rank the requirements for the HRIS: in terms of how it can assist the org. to realise its mission, the costs, accuracy and modules.
◦ Identify potential solutions: Search for reputable software that can meet the organisational needs.
◦ Analyse and screen vendors: Meet with the vendors in order to assess the extent to which their software can meet your needs.
◦ Arrange for software demonstrations: Give the vendors typical org. & allow them to demonstrate how their software can address your
needs and to provide sample reports.
◦ Score the solutions: Use spreadsheet to score each vendor in terms of how they can address your prioritised needs.
◦ Make a decision and prepare a business case: Evaluate vendors proposals and consider factors such as costs, licence agreement,
training requirement before submitting to the management.
◦ Implement the system: Testing and activating the system, training relevant users, capture relevant data.
◦ Evaluate the effectiveness and effective use of the system: Check the value of reports, system’s response time, its integration with
payroll system.
Modules of integrated HRIS
• Include various HR activities:
 Employee data maintenance,
 Compensation Planning and Management,
 Organisational Structure,
 Payroll processing,
 HR planning,
 Recruitment and selection,
 Equity management ,
 Training and development,
 Succession planning,
 Performance management,
 Time and attendance,
 Employee relations,
 Health and Safety,
 Self-help desk.
Self-help desk
◦ The module enables employees to access or update information themselves
and allow HR to focus on other strategic issues.
◦ It can be used for:
◦ Personal information update
◦ Posting of organisational bulletin
◦ Accessing organisational policies
◦ Accessing financial benefits information
◦ Posting of new forms
◦ Posting Suggestions
◦ Socialisation
HRIS as Diagnostic and Reporting Tool
• Information from HRIS can be used as a diagnostic tool to achieve
organisational goals.
• HRIS assists the HR department to make calculative decisions to solve problems and
initiate change.

• It is also a tool to demonstrate the return on investment (ROI) of the HR department.

• Information can be used to manage:

o Equity status of organisation

o Nature and levels of absenteeism
o Labour turnover and retention
o Employee job satisfaction
HR Metrics in Staff Acquisition
• HR planning

 previous levels of supply and demand are used to estimate future ones

• Recruitment
 Comparison of different methods used to identify the most effective ones.

 Cost of recruitment can be determined by dividing overall recruitment costs by number of people
recruited.

 Average time taken to fill a position can be determined by dividing total days taken to fill position by
number of people hired.

 Use of psychometrics as a measuring tool to provide indication of candidates’ abilities and aptitude
require is quantitative (HR metrics).
HR Metrics in Employment Equity

• HRIS assists organisations to:

 Compile profile of workforce.
 Compile report on skills development.
 Analyse employment practices and policies.
 Compile Equity plan.
 Benchmark itself against others.
HR Metrics in Absenteeism Management
• Absence can be categorised into: sick, authorised and unexcused absence

• HRIS assists organisations to:

 Record absenteeism

 Determine the Gross Absence Rate (GAR) and Absence Frequency (AFR) for different
groups and different categories of absence

 Determine the cost of absenteeism

 Analyse the results

 Based interventions on the results

 Monitor implementation and results of interventions

Calculating Absenteeism
• The two HR metrics used to measure absenteeism are:
 GAR: indicates workdays lost
 AFR: indicates how disruptive absenteeism is
• GAR = Total number of days lost × 100
Average no. of employees x total workdays over period
• AFR = No of absence incidents over period
Average no. of employees employed over period
• Cost of Absenteeism include:
 Direct Cost: the absent employee’s salary/wage and medical benefits paid
when absent
 Indirect Cost: time spent to cover for the absent employees as well as loss of
production
Analysing Absenteeism
• GAR indicates number of workdays lost
• AFR indicates how disruptive absenteeism is
• Consider overall GAR of organisation
• Compare the GAR and AFR of various departments,
sections and groups
• Analyse trends to identify the problem
 HR Metrics in Labour Turnover & Retention
• Labour turnover refers to permanent withdrawal from the organisation.
• It can be controllable or uncontrollable.
• Controllable labour turnover includes voluntary resignation and dismissal.
• Uncontrollable labour turnover includes death, permanent illness, retirement
or retrenchment.
• HR metrics on labour turnover focusses only on controllable labour turnover.
Calculating Labour Turnover
• LTO = Voluntary Resignation + Dismissal

Average no. of employees for period

• MLOS = Median length of service

• %V = Voluntary resignation x 100

Voluntary + Dismissal

• The high %V indicates employees who left the organisation

voluntary

• The low %V indicates employees who were dismissed by the

 On-line Surveys
◦ HRIS is useful in conducting on-line surveys.

◦ On-line surveys on Organisational Climate, Employee Engagement, Job

Satisfaction, Organisational Citizenship Behaviour and value acculturation can
be conducted via organisational intranet.

◦ Information can be statistically analysed.

◦ HRIS provides context to interpret results, e.g. comparisons and benchmarking.

◦ Results can be communicated by using Pie charts, graphs, tables.

 Using an HR Dashboard to Drive Strategy
◦ HR dashboard is a visual and easy-to-understand graphical display of important HR information.

◦ HRIS assists to create HR dashboard.

◦ A dashboard displays crucial information.

◦ It shows trends and changes.

◦ It performs drill-down function (provides summary-detail links).

Characteristics of a ‘Good’ Dashboard

◦Specific to the end user.

◦Easy to understand.
◦Limited in colour.
◦Two dimensional.
◦Information provided in real time.
HRIS and Privacy Issues
◦ Control accessibility through the use of security codes and
passwords.
◦ Consider secured data collection method.
◦ Inform employees.
◦ Allow employees to inspect information.
◦ Separate sensitive information.
◦ Limit the use of personal information.
◦ Get consent to use personal information.
 Preparation for the next session

Read through Chapter 6 Nel

et al 10th Ed (2017). Human
Resources Management
QUESTIONS/COMME
NTS
THANK YOU