24.02.2024 г.

Chapter 6 System
Design and
Acquisition for
HRIS
 SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) AND
HRIS DESIGN
Planning

Analysis

Design

Implementation

• SDLC Provides A Structured Maintenance

Approach To Design Of The HRIS

Figure 4.1

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications,
and Future Directions, 2e © 2012 SAGE Publications, Inc.
 Chapter Objectives

• Understand the differences between data and process views of a system

• Understand the purpose and components of a data flow diagram (DFD)
• Understand the hierarchy of DFDs and the concept of DFD balancing
• Understand the three choices organizations face when moving into physical design
• Understand the purpose of a request for proposal (RFP) and what information should be included in it
• Understand the various criteria used to evaluate vendor proposals
• Describe the various types of feasibility and their purpose in evaluating potential solutions
 DESIGN CONSIDERATIONS

• Logical Design
• Translation Of Business Requirements Into Improved Business Processes,

• Physical Design
• Determining The Most Effective Means Of Translating Business Processes Into A
Physical System That Includes Hardware And Software

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics,
Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
Introduction to Logical Design
Definition: Logical design involves translating business requirements into enhanced business
processes.

Focus: No technological implementation at this stage.

• Example: Larson Property Management's need for acquiring new employees.
• Key Steps: Identification, approval, analysis, posting, recruiting, tracking, selection, placement,
and record keeping.
Importance of Logical Design in HR

Benefits:
• Aligns business requirements with processes.
• Enhances efficiency and effectiveness.
• Sets the foundation for technological implementation.
Business Processes
Streamlining Employee Acquisition Processes

• Job Identification and Approval:

• Process description: Identifying and approving new job positions.
• Link to HR program: HR planning.
• Job Analysis:
• Process description: Analyzing the requirements of identified jobs.
• Link to HR program: Job analysis.
• Recruitment and Posting:
• Process description: Posting positions and recruiting from the labor market.
• Link to HR program: Recruiting.
• Applicant Tracking:
• Process description: Tracking applicants through the recruiting process.
• Link to HR program: Applicant tracking.
Selection and Onboarding

• Selection Process:
• Process description: Using selection tools, such as interviews, to choose the best-fit applicants.
• Link to HR program: Selection.
• Placement:
• Process description: Bringing new hires on board and placing them in their respective jobs.
• Link to HR program: Placement.
• Record Keeping:
• Process description: Maintaining records associated with the entire acquisition process.
• Link to HR program: Record keeping.
• Conclusion:
• Summarize the logical design focusing on enhanced efficiency in employee acquisition.
• Emphasize the alignment of processes with HR programs for better organizational outcomes.
 DATA FLOW DIAGRAM (DFD)

• Graphical Representation Of Key Business Activities/Processes

Conducted By The Organization.

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics,
Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
examples of how DFDs can be used in
HRIS :
• Recruiting: A DFD can be used to map the flow of data from the time a job opening is created to
the time a new employee is hired. This can help to identify bottlenecks in the recruiting process
and opportunities for improvement.
• Payroll: A DFD can be used to map the flow of data from the time an employee's time is clocked
in to the time their paycheck is issued. This can help to ensure that payroll is accurate and
efficient.
• Performance management: A DFD can be used to map the flow of data from the time a
performance goal is set to the time feedback is provided to the employee. This can help to ensure
that performance management is fair and effective.
• By using DFDs, HRIS professionals can gain a better understanding of how their systems
work and identify areas for improvement. This can lead to more efficient, effective, and user-
friendly HR processes.

2/21/2024
 SYMBOLS OF THE DFD
Symbol Meaning Example
Figure 5.1

Entity Employee

Data Flow Employee Pay

5.1
Process Print
Employee
Paycheck

Data Store D1 Time Card

DFD: CONTEXT LEVEL DIAGRAM

Figure 5.2
Management

Hiring/Placement Decision Reports

0
Application Confirmation
Applicant Application Reports
Tracking
Application Decision
System

Hiring Decisions
Human
Applicants Application Resources
Department

Michael J. Kavanagh, Mohan Thite, and Richard D. Jo

hnson - Human Resource Information Systems: Basics,
 PHYSICAL DESIGN

• Major Activities
• Determine If Value In Moving Forward with Implementation of New System
• Determine Hardware And Software Options And Requirements
• Determine Where To Obtain Hardware And Software
• Develop Implementation Schedule
• Work With Potential Vendors And Select Software, If Obtained Externally

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics,
Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
 THREE CHOICES IN PHYSICAL DESIGN

1. Do Nothing
2. Make Changes To HR Processes Without New/ Upgraded
Technology (Which Is Only A Tool Not A Solution)
3. Implement Changes With New Or Upgraded Technology:
• Build In-house
ost common • Buy It (Commercial Off The Shelf [COTS])
• Outsource Development

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics,
Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
Option 1: Do Nothing

• May seem counterintuitive

• Important organizational or environmental reasons
• Public lawsuit
• Target software vendor revising software product
Change Business Processes Only

make changes to only the HR business processes without implementing

new or upgraded technology.
• Address proposed business process changes
• Use current HRIS technology
• Good companies view technology as a solution, great companies see technology
as a tool
Implement Changes with New Technology

• Build it
• Buy it
• Outsource it
Buy It

• Control all aspects of development

• Write software to meet 100% of business requirements
• Increased flexibility and creative solutions
Disadvantages of Building It
• More expensive than off-the-shelf solution
• Unique application, higher testing and developmental risk
• Requires technical, functional, and project management skills
• Integration challenges with other core modules
 Buy It
• Well tested and proven
• Purchased and implemented in a short period
• Most business operations are fairly generic
Disadvantages of Buying It
• May not meet all specific needs (70% is typical)
• Customization vs. vanilla approach
• Increased costs or reduced competitive advantage
• Redoing customization with future upgrades
Outsource It
• Vast resources, experiences, and technical skills
• Risk of exposing confidential information
• May not lead to reduced time and expense
2/21/2024
 WORKING WITH VENDORS
• Request For Proposal (RFP)
• Document That Solicits Proposals And Bids For Proposed Work From
Potential Consultants Or Vendors
• RFP Recommendations
• Focus On The Business Requirements
• Be Specific
• Keep It Simple
• Work Closely With HR & IT Staff

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics,
Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
 WORKING WITH VENDORS

• Vendor Selection Considerations

• Functionality

• IT Architecture And Integration

• Price

• Vendor Longevity And Viability

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics,
Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
Choosing the Right Functionality

• Prioritize functionality based on needs: Focus on systems that meet

90%+ of your current requirements, but also consider future growth
potential.
• Balance customization vs. growth: While minimal customization is
desirable, avoid overly rigid systems that hinder future expansion.
• Evaluate future compatibility: Ensure the chosen system can adapt
to your evolving needs and integrate with emerging technologies.
IT Architecture and Integration
Considerations
• Evaluate system type: Standalone, networked, web-enabled, cloud-
based, etc., and choose based on your needs and infrastructure.
• Assess technical compatibility: Ensure the system aligns with your existing IT
platform (e.g., UNIX, Windows) and database requirements.
• Prioritize seamless integration: Choose a system that readily integrates with
your broader IT architecture (operations, manufacturing, sales) for improved data
flow and efficiency.
• Consider remote access and cloud benefits: Explore cloud-based systems for
potential cost savings, rapid implementation, and seamless updates.
• Evaluate multi-vendor integration: If considering multiple functional HR
systems, assess their ability to integrate without additional middleware.
Understanding the Total Cost of
Ownership (TCO)
• Look beyond price tag: While price is important, prioritize
functionality alignment over immediate cost savings.
• Consider hidden costs: Factor in
customization, training, licensing, upgrades, and ongoing maintenance
expenses.
• Perform a cost-benefit analysis: Evaluate the long-term value
proposition of each system considering costs.
• Explore cloud benefits: Cloud systems may offer lower TCO due to
reduced hardware expenditures, faster implementation, and automatic
updates.
Selecting a Reliable and Sustainable
Vendor
• Assess vendor longevity and track record: Look for established
vendors with a history of client satisfaction and timely updates.
• Evaluate responsiveness and support: Consider the vendor's
commitment to ongoing support, upgrades, and client communication.
 ASSESSING SYSTEM FEASIBILITY

• Technical
• Focuses On Current Technological Capabilities Of The Organization And
The Technological Capabilities Required For The Implementation Of The
Proposed System

• Operational
• Focuses On How Well The Proposed System Fits In With The Current And
Future Organizational Environment

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics,
Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
Technical Feasibility
Typical questions asked as part of the
assessment of operational feasibility
• 1. How well does the system fit within our organizational context? Will
• this make us better?
• 2. How much will our organization change because of the new business
• and technical changes?
• 3. How long will this take to do, and does the schedule fit our business’s
• needs?
• 4. If we have to squeeze, what might we be able to eliminate?
• 5. Do we have or can we get the personnel to do this?
• 6. Can people use the system?
• 7. What kind of training do we need?
 ASSESSING SYSTEM FEASIBILITY

• Legal
• Focuses On Adhering To Existing Laws And Regulations
• Political
• Focuses On The Political Environment In Of The Organization In Which The
HRIS Is Being Implemented
• Economic
• Focuses On the Costs and Benefits of the New System

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics,
Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
Legal and Political Feasibility
• Legal and political issues also play a very important role in assessing
the feasibility of an HRIS.
• The best-designed and best-implemented system can end up causing
major headaches for the organization if it violates existing laws and
regulations.
• Political feasibility focuses on the political environment of the
organization in which the HRIS is being implemented.
• Issues such as power redistribution involving loss of individual or
department control can have major political implications that can
affect the effectiveness of the implementation.
Economic Feasibility
• The final aspect of a feasibility assessment is evaluating
economic feasibility. The goal of an economic feasibility analysis is to
determine whether the costs of developing, implementing, and running
the system are worth the benefits derived from its use

• To do this, an analyst would identify the appropriate costs and benefits

of the HRIS and assign precise values to each.