WEEK 4

The Systems
Development Life
Cycle and HRIS
Needs Analysis
HUMAN RESOURCE
INFORMATION SYSTEM

Dr. Y. Johny Natu Prihanto

Objectives
• Define the systems development life cycle (SDLC)
• Explain how the analysis phase of the SDLC informs the needs analysis
process
• Describe the purpose of needs analysis and why it is important
• Outline the main stages of needs analysis
• Identify what is involved in an HRIS needs analysis, including the types
of activities performed
• List the typical participants involved in an HRIS needs analysis
• State the key deliverables of an HRIS needs analysis
Failing to Plan Is Planning to Fail
• Implementing the changes in the existing HRIS would have been the
obvious solution, but creating a one-time solution when it appeared
there would be little future need for a complicated implementation
was the right choice in this case.
• Careful, honest, and practical needs analysis made possible what had
been impractical due to cost concerns.
The Systems Development Life Cycle (SDLC)
• The systems
development life cycle
(SDLC) is a formal,
multistage process
through which
information systems are
implemented.
• Specific phases include
planning, analysis,
design, implementation,
and maintenance
SDLC phases:
A. Planning:
• The planning phase of the SDLC includes both long-range or strategic planning
and short-range operational planning.
• During the planning phase, HR will determine the existing technological and
system capabilities and develop a general plan for adapting, upgrading, or
changing these plans.
• In a sense, HR is conducting an analysis of their future human capital
strategies and assessing what may need to be done technologically to ensure
that these strategies may occur.
• As this phase is at a strategic level, the planning is very high level and not
detailed.
• At the end of this phase, an organization should have a general idea of the
issues it needs to address and may have developed a plan to move forward.
B. Analysis:
• An organization’s current capabilities are documented, new needs are identified, and
the scope of an HRIS is determined.
• The analysis phase of the SDLC encompasses steps such as reviewing the current
system processes, looking for opportunities for improvement, exploring and justifying
change, developing requirements for the new system (needs analysis), and
prioritizing those needs.
• At the end of this phase, a formal requirements definition report should be
completed and available for use in systems design or vendor evaluation.
C. Design:
• In the design phase, the blueprint for the new system and detailed specifications are
developed and finalized.
• The final vendor evaluation and selection often occurs during the design phase.
D. Implementation:
• During the implementation phase, the HRIS is built, tested, and readied for the actual rollout, or
“go live” stage—the point in the SDLC at which the old system is turned off and the new system is
put into operation.
• Two common approaches to switching from the old system to the new system, used by many
organizations, are to either pilot the new HRIS in one location before fully going live or to turn on
limited functions and then continue to add functionality.
• Key steps in implementation include coding or configuring modules, system testing, finalizing
procedures, converting old data for use in the new system, documentation, and training end users.
E. Maintenance:
• The maintenance phase, sometimes referred to as the “forgotten phase” (Smith, 2001), is the
phase in the life of an HRIS during which the primary objective is to prolong its useful life.
• Maintenance begins immediately when the new system goes live. Consequently, a crucial part of
maintenance is the evaluation of the HRIS.
• Does the HRIS meet the needs of all users as determined earlier in the SDLC? Has the system been
accepted by the users? Is the HRIS being used properly?
Maintenance serves four main purposes:
• Corrective Maintenance
• There will be times that despite the best efforts of designers and implementers, something in
the system doesn’t work properly and must be fixed (e.g., computer bugs, misinterpreted
designs, incorrectly specified designs, or identified needs ignored).
• Adaptive Maintenance
• The human resources environment is always changing and evolving.
• For example, new government regulations affecting HR practices, such as legislation addressing
racial and gender discrimination, can prompt new requirements or alter the old requirements
of the system.
• Perfective Maintenance
• The goal of perfective maintenance is to tweak or improve on the existing system.
• For example, a more efficient routine that speeds up processing times could be developed in
the maintenance phase.
• Preventative Maintenance
• Preventative maintenance focuses on the ongoing requirements of maintaining the hardware
and software than runs the HRIS.
• Such a maintenance action will prevent future system crashes due to inadequate hardware.
Analysis
• This phase is particularly important because, unless the requirements are
specified in detail, the organization cannot select the best vendor package or
design their own system effectively.
• Regardless of whether it is built or bought, HRIS software is expensive, so the
investment made should be in the best system that fits the organization’s needs.
• When an organization does not conduct a proper needs analysis, it may expend
considerable effort reworking the solution because it does not meet their needs.
• A proper needs analysis provides the organization with information focused on
the essential areas of HR and organizational functioning to be supported by the
HRIS.
• This information is then used to document the functional system requirements.
Needs Analysis
• The purpose of needs analysis is to
• collect and document information related to making changes connected to
current system performance issues;
• the introduction of a new system, application, task, or technology; or
• any opportunities perceived to benefit the organization.
• An effective needs analysis consists of five main stages:
1. Needs Analysis Planning
2. Observation
3. Exploration
4. Evaluation
5. Reporting
1. Needs Analysis Planning
• Organize the Needs Analysis Team
• The team must work with current systems users and associated constituents
and stakeholders to identify problems clearly, research possible ways of
addressing the problems, and report their findings to support a decision on
the most appropriate solutions.
• An information technology professional should be included.
• Finally, for large-scale projects, teams may wish to involve an external
consultant.
• In addition to this core project team, a task force of constituents from the
functional areas is needed to speak for the stakeholders.
• This group should include representatives from each area of HR, payroll, and
any other areas that may use the HRIS directly
• Determine Management’s Role
• Senior management sponsorship and a visible presence are critical to the success of the
project, and mutual respect and honesty will allow the team to acquire the information needed
to perform the analysis and make suitable recommendations.
• This group acts as a steering committee that will guide the team, resolve issues, and set
priorities.
• Define the Goals
• Goals give focus and provide a standard against which performance and achievement may be
measured.
• Goals help the needs analysis team focus on what it hopes to achieve, how it plans to work,
and the anticipated schedule, as well as how the completed needs analysis document will look.
• In addition to overall systems scope and processes, these goals may also include timing,
budget, staffing, and any other factors that could affect system selection, development,
implementation, and operations.
• Determine Tools and Techniques to Be Used
• It is important to note that, although these tools and techniques assist
analysts in examining every indicator, it is also important that the team verify
all data and consider each alternative objectively before making any
conclusions.
• In addition to identifying the tools and techniques to be used, it is also
important to establish performance standards and criteria to measure the
results of the process.
2. Observation
• During the observation stage, the needs analysis team observes the
current systems and processes, forming the basis for later
recommendations.
• At this point, the investigation is at a high level; more detailed data
will be gathered later, during the exploration stage.
• During observation, it is important for the analysts to interact with
employees at all levels in the areas that may be affected by the
changes.
• Trends may become apparent, which could be helpful later.
• Analyze the Current Situation
• Before embarking on the detailed exploration of any new system, analysts
must first develop a picture of present HR operations, including any problems
and issues in each area or function.
• As part of this activity, analysts must consider the existing processes and
current organizational results and compare these to the organization’s
expectations for what they anticipate in the future.
Example Preliminary Systems Review Document
• Define the Needs
• The objective of this activity is to determine how those within HR believe their
operations should occur, to evaluate industry best practices, and to begin
investigating what changes or updates to the system may be valuable to adopt.
• As part of this step, organizational policies, procedures, and standards must be
considered, along with any regulatory requirements.
• Identify Performance Gaps
• Comparing the current situation to the desired situation allows the organization
to identify and outline any performance gaps.
• These gaps, or areas of mismatch between the existing and required processes,
form the basis for developing the systems requirements that are documented
during the analysis and reporting stages.
• Classify the Data
• It is important to separate the data into categories by function, process, and
other groupings that makes sense for your environment.
• In addition, technical and process systems issues should be separated from
other organizational issues.
• Determine the Priorities
• The needs may be ranked based on scope, costbenefit analysis, time to
implement, and/or potential impact if ignored.
• Management will be interested in these assessments when reviewing the
results of the preliminary analysis.
• It is important to recognize that as needs are being identified, a process
should be put into place to prioritize them.
• Review With Management
• It is important to work with management to define the scope, agree on the
process, state the desired outcome(s), and establish shared responsibility for
the continuation of the project.
• The team should also ensure that management understands that the full
needs analysis takes time to design, develop, and accomplish.
3. Exploration
The exploration stage of the needs analysis process builds on the
analysis completed in the observation stage and involves gathering
additional and more detailed data regarding HR processes.
• Collect the Data
• These data also help the organization align their new system with key HR
objectives.
• It is important to keep in mind that the data collected during the needs
analysis may be used for other purposes after the system is developed and
implemented, so it pays to do a good job now.
• Interviews
• The goal of conducting interviews is to find representative employees who
can effectively communicate the key HR practices and processes to the
analysis team so that the team can develop a thorough understanding of
current HR operations.
• A variety of different interview types may be used when conducting a needs
analysis
Interview Guide
• Questionnaires
• Questionnaires are structured data-collection tools that must be designed
and implemented carefully in order to obtain usable results.
• In addition, from a statistical standpoint, it is important that the questions are
reliable and valid so that any analysis of the captured data can be trusted.
• As you would expect, it is important to design a professional-looking
document (or Web survey, if administering the questionnaire online), to use
clear instructions, and to focus on developing a document that is easy to use.
• It is important not only to ensure that respondents’ answers remain
confidential, but also that the respondents understand that their answers will
remain confidential.
• Observation
• Observation is most useful when trying to determine what employees do and in what order.
• Further, it can be used to identify potential causes of performance issues.
• Although observation has the advantage of minimizing interruption of routine functions,
observers must be skilled in observation and knowledgeable of the process itself.
• Focus Groups
• Focus groups consist of a small sample of people representing a larger population who
gather together to discuss a topic; in this case, the topic would relate to the HRIS.
• Participants are asked for their opinions and attitudes, and the results can help to shape
system requirements.
• Focus groups are important because they can provide the same depth of information as
interviews, but they have the added advantage of bringing people together, which can lead
to greater and more effective information sharing than if only individual interviews were
utilized.
Recommendations for effective focus groups
• Limit the size of the group to no more than 8 to 12 people.
• Allow sufficient time to cover the material, generally one to two hours, and keep
the meeting focused to make good use of everyone’s time.
• Consider having a moderator assist in this process.
• Before starting the focus group, explain the objectives clearly.
• Encourage group members to speak freely and ensure that everyone participates.
• An icebreaker exercise can be a great way of opening up group communication.
• Use a variety of group facilitation methods, such as brainstorming, prioritizing,
and consensus building to encourage and promote discussion on differences of
opinion and to clarify issues.
• Take notes and/or video or audio tape the session, so that nothing is lost.
• Thank participants for their time and ideas.
• It is critical to develop a concise problem statement that documents the
causes of the issues to be resolved and separate facts from opinions.
• A problem statement is a well-defined, succinct description of the
known symptoms and issues with current operations, their most likely
causes, and how the proposed system will address these problems.
• Problem statements include three components:
1. A vision statement describing the ideal set of processes and technologies that
will exist after the system is operational
2. An issue statement explaining the problem using specific issues
3. The method that will be used to solve the problem
4. Evaluation
• Several activities occur during the evaluation stage of needs analysis.
• Once the data have been collected, they must be reviewed and
assessed to create a clear picture of the current and desired
processes, data sources, and issues.
• Next, the data should be arranged in a format useful for the next
phase of the SDLC: design.
• Third, the data should be reviewed by the project team to gain
additional perspective and encourage suggestions, noting any
duplications or omissions.
5. Reporting
• The final report should include an overview of the current systems
and processes, along with a description of how a new system could
address the issues and weaknesses with which the function deals.
• This report should contain the formalized requirements definition, the
document that lists each of the prioritized requirements for the new
system.
• The requirement definition can include specifications geared toward
solving problems identified in the analysis as well as any that focus on
new functionality that HR requires in the new system.
• These requirements should be written in such a way that when the
new system is tested, each requirement can be verified as being met.
Sample Report Outline
Summary
• Organizations faced with the need to update, upgrade, or implement changes to HR processes and to
consider new software should follow a formalized, structured process to give them the best chance
of success.
• We briefly introduced this structured process: the systems development life cycle that helps
organizations better manage the design and implementation of new or upgraded systems.
• The analysis phase of the SDLC, particularly on the needs analysis portion of this phase.
• Needs analysis is designed to help the organization discover the disparity between the organization’s
present HR system(s) and desired HR systems.
• The chapter outlines an effective, formal, multistaged approach that starts with naming the project
team, reviewing current processes and systems, and determining future needs and priorities.
• The resulting requirements definition can provide the ongoing project team responsible for vendor
evaluation and/or system design with a clear picture of what the organization requires and when it
must be delivered.
• It establishes the structure for future phases of this project, as well as a framework for ongoing
operations.
• Needs analysis can, therefore, rightfully be viewed as one of the most critical to the success of the
entire project.