SECOND EDITION

Basics, Applications, and Future Directions

EDITORS

Michael J. KavanaghUniversity at Albany—State University of New York

Mohan ThiteGriffith University, Australia

Richard D. JohnsonUniversity at Albany—State University of New York

(DSAGELos Angeles | London | New Delhi

Singapore | Washington DC

CONTENTS

Preface xix

Part I: Introduction to Human Resource Managementand Human Resource Information Systems 1

1. Evolution of Human Resource Managementand Human Resource Information Systems:The Role of Information Technology 2Mohan Thite, Michael J. Kavanagh, and Richard D. Johnson

Editors' Note 2Chapter Objectives 3HRIS in Action 3Introduction 5Historical Evolution of HRM and HRIS 6

Pre-World War II 8Post-World War II (1945-1960) 8Social Issues Era (1963-1980) 10Cost-Effectiveness Era (1980 to the Early 1990s) 11Technological Advancement Era and the Emergence of

Strategic HRM (1990 to Present) 12HR Activities 15Interface Between HR and Technology 16A Primer on HRIS 17

What Is an HRIS? 17e-HRM and HRIS 18Why Do We Need HRIS? 18Different Types of HRIS 20System Development Process for an HRIS 20

A Model of Organizational Functioning 23Themes of the Book 25Overview and Structure of the Book 25

Summary 28Key Terms 28Discussion Questions 29Case Study: Position Description and Specification

for an HRIS Administrator 30HRIS Administrator 30Position Summary 30Primary Function 30Essential Duties and Responsibilities 30Requirements 31Qualifications 32Case Study Questions 32

Note 32References 32

2. Database Concepts and Applicationsin Human Resource Information Systems 35Janet H. Marler and Barry D. Floyd

Editors' Note 35Chapter Objectives 35Introduction 36Data, Information, and Knowledge 36Database Management Systems 37

Early DBMS 39Relational DBMS 40Data Sharing Between Different Functions 42Data Sharing Between Different Levels 42Data Sharing Across Locations 43

Key Relational Database Terminology 44Entities and Attributes 44Tables 45Relationships, Primary Keys, and Foreign Keys 46Queries 46Forms , 48Reports 48

Introduction to MS Access 49Designing an MS Access Database 50HR Database Application Using MS Access 51Other HR Databases 51

Data Warehouses, Business Intelligence, and Data Mining 53Summary 54Key Terms 55Discussion Questions 55

Case Study - 56Applications Exercise 56Notes 56References 57

3. Systems Considerations in the Design of a Human ResourceInformation System: Planning for Implementation 58Michael D. Bedell, Michael L. Canniff and Cheryl R. Wyrick

Editors'Note 58Chapter Objectives 59HRIS in Action 59Introduction 60HRIS Customers/Users: Data Importance 61

Employees 61Nonemployees 64Important Data 65

HRIS Architecture 65The HRIS "Dinosaur" 65Client-Server (Two-Tier) Architecture 66Three-Tier Architecture 67N-Tier Architecture With Enterprise Resource Planning 69Cloud Computing—Back to the Future!? 70Security 71

Best of Breed 73Recruitment 75Time Collection 75Payroll • 76

Benefits 76Planning for System Implementation 77

Project Manager 78Steering Committee/Project Charter 79Implementation Team 80Project Scope 81Management Sponsorship 82Process Mapping 82Software Implementation 83Customization 85Change Management 86"Go Live!" 86Project Evaluation 87Potential Pitfalls 87

Summary 88Key Terms ' 88

Discussion Questions 89Case Study: Vignette Revisited 90

New Information for the Case: Part 1 91New Information for the Case: Part 2 91New Information for the Case: Part 3 92New Information for the Case: Part 4 92Case Study Questions 92

References .. 93

Part II: Determining Human Resource Information Systems Needs 95

4. Human Resource Information Systems Needs Analysis 96Bradley J. Alge and Karen Bruner Upright

Editors' Note 96Chapter Objectives 96HRIS in Action 97Introduction: HRIS Needs—Planning and Analysis 98

System Development Life Cycle (SDLC) 98Planning 101

Needs: Long-Range Planning .101Needs: Short-Range Planning 104

The Big 3: The Global Positioning System of HRIS 105Analysis 108

Gap Analysis 115Summary 118Key Terms 118Discussion Questions 118Case Study: "Planning the Needs of Other Organizations" 119

Ca.se Study Questions 120Note 120References 121

5. System Design and Acquisition 122Richard D. Johnson and James H. Dulebohn

Editors' Note 122Chapter Objectives 123HRIS in Action 123Introduction 124Design Considerations During the Systems Development Life Cycle 125

Logical Design 126Two Ways to View an HRIS: Data Versus Process 127Logical Process Modeling With Data Flow Diagrams 128Creating and Using the DFD 130Physical Design 133

Working With Vendors 137Vendor Selection 140

Assessing System Feasibility 141Technical Feasibility 141Operational Feasibility 142Legal and Political Feasibility 143Economic Feasibility 144

Summary 145Key Terms 145Discussion Questions „_ 146Case Study 146

Case Study Questions 148Notes 148References 148

6. Human Resources Metrics and Workforce Analytics 150Kevin D. Carlson and Michael J. Kavanagh

Editors'Note 150Chapter Objectives 151HRIS in Action 151Introduction 152A Brief History of HR Metrics and Analytics 153Contemporary HR Metrics and Workforce Analytics 155The Main Objective of HR Metrics and Workforce Analytics 156Using HR Metrics and Workforce*Analytics 157

Reporting 158Dashboards 158Benchmarking 158Data Mining „ 159Predictive Analyses 159Operational Experiments 159Workforce Modeling 160

Better Problem Solving and Decision Making 160A Common and Troublesome View 160Opportunity Domains ofHR Expertise 161

HR Process Efficiency 163Organizational Effectiveness 163Strategic Realignment 163

Measurement, Metrics, and Analytics Basics 164Getting Started 164The Role of "Why?" 165Putting HR Metrics and Analytics Data in Context 166Reporting What We Find 167

Useful Things to Remember About HR Metrics and Analytics 168Don't "Do Metrics" . 168Bigger Is Not A Iways Better 168

HR Metrics and Analytics Is a Journey—Not a Destination 169Be Willing to Learn 169Avoid the Temptation to Measure Everything Aggressively 169HR Metrics and the Future 169

Summary 170Key Terms 171Discussion Questions 171Case Study ^ 172

Case Study Questions 172Notes 173References 173

7. Cost Justifying Human Resource InformationSystems Investments 175Kevin D. Carlson and Michael J. Kavanagh

Editors'Note 175Chapter Objectives 176HRIS in Action 176Introduction 177

Justification Strategies for HRIS Investments 178Evolution of HRIS Justification 179Approaches to Investment Analyses Make a Difference: Some Guidelines 180

HRIS Cost-Benefit Analysis 183Identifying Sources of Value for Benefits and Costs 184

Estimating the Timing of Benefits and Costs 190Estimating the Value of Indirect Benefits 190

Estimating Indirect Benefit Magnitude 191Mapping Indirect Benefits to Revenues and Costs 194Methods for Estimating the Value of Indirect Benefits 196

Avoiding Common Problems 198Packaging the Analysis for Decision Makers 201

The Role of Variance in Estimates 201Conclusion 202Summary 203Key Terms 204Discussion Questions 204Case Study 205

Case Study Questions 206Notes 207References 207

Part III: Human Resource Information SystemsImplementation and Acceptance 209

8. Project Management and Human Resource Management Advicefor Human Resource Information Systems Implementation 210Salvatore M. Belardo and Michael J. Kavanagh

Editors'Note 210Chapter Obj ectives 211HRIS in Action .„ 211Introduction 213Proj ect Management Cooperation 214The IT Perspective 215

Project Management Processes 215Project Management Approaches and Tools 217General IT Factors Affecting PM Success 220

The Human Resource Management Perspective 221Identification of the Steering Committee and Project Charter 222Configuring the PM Team 224Identification of Available Resources and Constraints 225Controlling Project Creep 225Selection of the Implementation Team 226Training and Documentation 226Critical Success Factors for IT and HRM Issues 227

Summary 229Key Terms 230Discussion Questions 231Case Study: Implementing an HRIS 231

Case Study Questions / 233Notes 233References 233

9. Change Management: Implementation, Integration, andMaintenance of the Human Resource Information System 236Romuald A. Stone

Editors' Note 236Chapter Objectives 236HRIS in Action 237Introduction to the Management of Change 238

What Is Change Management? 238The Change Management Process: Some Terminology 239

Models of the Change Process 240Action-Research Model 240Lewin's Change Model 241Change Equation Formula 245Nadler 's Congruence Model 245Kotter s Process of Leading Change 248

Why Do System Failures Occur? 251Leadership 251Planning"" 253Change Management 253Communication 255Training 257

Organizational and Individual Issues in HRIS Implementation 259Cultural Issues 259Process Reengineering 262Resistance to Change 263User Acceptance 265The Importance of HRIS Integration 268Practical Approaches to Implementation 268Post-implementation 269Maintenance of the HRIS 270

Summary 271Key Terms 271Discussion Questions 272Case Study: The Grant Corporation 273

Case Study Questions 275Note 276References 276

Part IV: Human Resource Information Systems Applications 281

10. Human Resources Administration and HumanResource Information Systems 282Linda C. Isenhour

Editors' Note 282Chapter Objectives 283HRIS in Action 283Introduction 284Job Analysis 284

Approaches and Techniques 285HRIS Applications 286

The HRIS Environment and Other Aspects of HR Administration 287HRM Administration and Organizing Approaches 288

Service-Oriented Architecture and extensible Markup Language 288Advantages of XML-Enhanced SOA ' 290

Theory and HR Administration 292Self-Service Portals and HRIS 294Shared-Service Centers and HRIS 298Outsourcing and HRIS 3 02Offshoring and HRIS 307Summary ofHR Administration Approaches 310

Legal Compliance and HR Administration 310HR Administration and Equal Employment Opportunity 312

U.S. Civil Rights"Act of 1964, Title VII, and the EEO-1 Report 312££0-7 Report (Standard Form 100) 313EEO-1 and HRIS 314Occupational Safety and Health Act Record Keeping 316OSHA Form 300 (Log of Work-Related Injuries and

Illnesses) and HRIS 317Technology, HR Administration, and Mandated

Governmental ReportingPrivacy and Security in an HRISSummary of Government-Mandated Reports and

Privacy RequirementsHR Strategic Goal Achievement and the Balanced Scorecard

HRM and the Balanced ScorecardHR Scorecard and Balanced Scorecard Alignment

SummaryKey TermsDiscussion QuestionsCase Study: The Calleeta Corporation

Case Study Questions ,NoteReferences

11. Talent ManagementKevin M. Johns and Michael J. Kavanagh

Editors' NoteChapter ObjectivesHRIS in ActionIntroduction

Defining Talent ManagementImportance of Talent ManagementThe Talent Management Life CycleAttributes for Talent

Job Analysis and Human Resource Planning: Part of TMJob AnalysisHuman Resource Planning (HRP)

319320

322322323326327328328329331331332

336

336337

• 337338339339340341343343343

Long- and Short-Term Strategic Importance of Talent Management 347

Talent Management and Corporate Strategy 348Anticipating Change and Creating an Adaptable Workforce 351Talent Management and Corporate Culture 353Talent Management and Information Systems 354

The Link Between Talent Management and HumanResource Information Systems 354

Recruiting Top Talent Using Social Networks 357Using Information Systems to Set Goals

and Evaluate Performance 359Using Analytics for Talent Management 359Workforce Analytics and Talent Management 360Measuring the Success of Talent Management 362

Summary 363Key Terms 364Discussion Questions 364Case Study: Vignette Case Continued 365

Case Study Questions 366Note 366References 366

12. Recruitment and Selection in an Internet Context 368Kimberly M. Lukaszewski, David N. Dickter,Brian D. Lyons, and Jerard F. Kehoe

Editors' Note 368Chapter Objectives 368HRIS in Action 369Introduction 370Recruitment and Technology 370

The Impact of Online Recruitment onRecruitment Objectives 372

Attributes of the Recruiting Web Site 380Recruitment Strategies and Social Networking 383

Online Recruitment Guidelines 384Selection and Technology 385

What Are Selection Tests and Assessments, andWhy Are They Used? 385

Why Is Assessment Important for HRIS? 387Technology Issues in Selection 390Applying HRIS to Selection and Assessment 394Demonstrating the HRM's Value With HRIS

Selection Applications 396Summary 399Key Terms 400Discussion Questions . 401

Case StudyCase Supplemental MaterialCase Study Questions

References

13. Training and Development: Issues and HumanResource Information Systems ApplicationsRalfBurbach

Editors' NoteChapter ObjectivesHRIS in ActionIntroductionTraining and Development: Strategic Implications and

Learning OrganizationsSystems Model of Training and Development

Training Metrics and Cost-Benefit AnalysisHRIS Applications in Training

HRIS/Learning Applications: Learning Management SystemsHRIS T&D Applications: Implementation Issues

SummaryKey TermsDiscussion QuestionsCase Study

Case Study QuestionsPractical Exercise

NotesReferences

401402403403

407

407407408409

411413427430433436437438439439440441441441

14. Performance Management, Compensation, Benefits,Payroll, and the Human Resource Information System 445Charles H. Fay and Renato E. Nardoni

Editors' Note 445Chapter Objectives 446HRIS in Action 446Introduction 447Performance Management 448

Overview 448Typical Data Inputs 454Typical Reports 454Data Outflows 455Decision Support 455

Compensation 457Overview 457Typical Data Inputs 460

Typical Reports 461Data Outflows 461Decision Support 462

Benefits 464Overview 464Typical Data Inputs 466Typical Reports 466Data Outflows 468Decision Support 468

Payroll 470Overview 470Typical Data Inputs Al 1Typical Reports Al 1Data Outflows AllDecision Support 473

Summary 473Key Terms 474Discussion Questions 474Case Study: Grandview Global Financial Services, Inc. 475

Case Study Questions AllReferences 477

15. Human Resource Information Systems and InternationalHuman Resource Management 480Michael J. Kavanagh and John W. Michel

Editors' Note 480Chapter Objectives 481HRIS in Action 481Introduction: Increasing Importance of International

Human Resource Management (IHRM) 482Types of International Business Operations 484Going Global 485Differences in HRM in MNEs 489Managing Different Types of Employees in MNEs 490

HR Programs in Global Organizations 493International Staffing 493Selecting Global Managers: Managing Expatriates 494Training and Development of Expatriates 498Performance Appraisal in MNEs 502Managing International Compensation 504

HRIS Applications in IHRM 507Introduction 507Organizational Structure for Effectiveness • 507

IHRM-HRIS Administrative Issues 508HRIS Applications in MNEs 510

Summary 511Key Terms 511Discussion Questions 512Case Study 513

Case Study Questions 514Notes 514References "" 514

Part V: Special Topics in Human Resource Information Systems 517

16. Information Security and Privacy in HumanResource Information Systems 518Yuk Kuen Wong and Mohan Thite

Editors'Note 518Chapter Objectives 518HRIS in Action 519Introduction 520Components of Information Security 521

Confidentiality 522Integrity 523Availability 523

Legal Requirements for Information Security 523Threats to Information Security 524Role of HR in Information Security 525Information Security Management for HRIS 526

Information Privacy 527Summary ' 530Key Terms 530Discussion Questions 531Case Study: Practical Applications of an Information Privacy Plan 531

Scenario 1 532Scenario 2 532Scenario 3 533Case Study Questions 533

References 533

17. The Future of Human Resource InformationSystems: Emerging Trends in Human ResourceManagement and Information Technology 536Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson

Editors' Note 536Chapter Objectives 536,

Introduction 537Future Trends in HRM 538

SHRMExpert Panels 539Future Trends and Challenges 541

Future Trends in IT/IS and HRIS 544Software as a Service (SaaS) and the Cloud 545Service-Oriented Architecture 545Web 2.0 546Social Networking 547Enterprise Portals 548Open Source Software 548

Future Trends in Workforce Technologies 549Summary 553Key Terms 553Notes 554References 554

Appendix: Additional Resources 557Internet Resources 557Additional Readings 559

Glossary 564

Author Index 587

Subject Index 595

About the Editors 614

About the Contributors 616