evolution of human resource management and human...

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

Chapter 1

Evolution of Human Resource Management and Human Resource

Information Systems: The Role of Information Technology


HISTORICAL ERAS IN HRIS

• Pre-world War II

– Reactive, “Caretaker” role

– Record Keeping – Manual

– “Scientific Management” Philosophy

– Not Major Part Of Business

– Few Government regulations


POSTWAR: 1945-1960

• Importance Of Employee Morale

• HR Part Of Operating Costs, Not In Mainstream

• Labor Unions established

• Job descriptions gain popularity

• Payroll Function among the first for automation

• Job Analysis, employee skills begin to be tracked

• R & D In Selection

• Mainframe Usage By Defense Industry In HR


SOCIAL ISSUES PERIOD: 1963-1980

• Social Issues Legislation Impact HR

• Protector Of Employees

• Intro Of IBM 360

• Advent Of MIS

• Paperwork & Reporting Increases

• HR Now More In Mainstream Of Operating Budget


COST-EFFECTIVENESS: 1980-1990

• HR Cost Justification Activities

• Increased Role Due To Paperwork Required In Legislation

• Microcomputers & Software Advances

• HRIS Capabilities Lower In Cost

• Increased Emphasis On R&D

• Utility Analysis Critical

• Smaller companies can utilize HRIS


TECHNOLOGY ADVANCEMENT ERA (90S-TODAY)

• Internet enabled Web Services

• HRIS more commonplace

• Business Process Re-engineering

• HR Balanced Scorecard

• Strategic HR Management

• HR becoming more visible as a “strategic business Partner”

• Globalization Of Companies

• Hardware-software Tools In Decision-making


THE EVOLUTION OF STRATEGIC HRM

• Contingency Perspective And Fit • Resource - Based View Of The Firm And Social Capital, • HR System Components And Structure • Expanding The Scope Of HRM Beyond The Focal

Organization • Achieving HR Implementation And Execution, By

Translating The Rhetoric Into Practice, • Measuring The Outcomes Of SHRM By (E.G., Balanced

Scorecard Approach) • Research Methodological Issues That Stress The

Importance Of Evidence Based Management • Adoption And Use Of HR Metrics • Application Of “Six Sigma" Processes To HRM.


COMPETITIVE ADVANTAGE

Three Categories Of Resources:

• Physical

• Organizational

• Human Most Critical


ACTIVITIES OF HR

Transactional

Traditional

Transformational

Wright, McMahan, Snell, & Gerhart, 1998


HR ACTIVITIES & TIME SPENT

• Transactional (65-75%) – Benefits Administration, Record Keeping,

Employee Services

• Traditional (15-30%) – Recruitment, Selection, Training, Performance

Management, Compensation, Employee Relations

• Transformational (5-15%) – Knowledge Management, Strategic Redirection

And Renewal, Cultural Change, Management Development

– Added Value Wright, McMahan, Snell, & Gerhart, 1998


INTERFACE BETWEEN HR AND

TECHNOLOGY

• IT As A Tool Not A Substitute For People

• How Might The Changes In Technology Impact The Role And Perceptions Of HR Departments And Professionals?

• How Might Technology Aid In The Advancement Of Strategic HRM?


HRIS

• Human Resources Information System (HRIS) – Computerized System That Provides Current And

Accurate Data For Purposes Of Control And Decision Making.

– Benefits: • Store And Retrieve Of Large Quantities Of Data.

• Combine And Reconfigure Data To Create New Information.

• Institutionalization Of Organizational Knowledge.

• Easier Communications.

• Lower Administrative Costs, Increase Productivity And Response Times.


HRIS DEFINITION

• Not Just Hardware-software

• Includes People, Forms, Policies, Procedures, And Data

• Purpose – Provide Accurate and timely “information” to the “clients” (or stakeholders) of HR

• Variety Of Users

– Strategic

– Tactical

– Operational Decisions


E-HRM & HRIS

• Electronic Human Resource Management (E-hrm)

– Information Technology (E.G., Web)central Component

– Application And HR-function Focused

• HRIS

– Technology And Processes (E.G., Databases, Enterprise Resources Planning (ERP) Architecture, Smart Phones, Etc.) That Support Employee Access To HR Data And The Move To E-HRM.


BIGGEST ADVANTAGES OF HRIS

Reduced Manual Handling And Paperwork

Or

Enables Greater Impact Of Paperwork On Business Operation

– Reports

– Analysis

– Negotiations

– Communications


Why Do we need an HRIS? • Providing a comprehensive information picture as a single,

integrated database; this enables organizations to provide structural connectivity across units and activities and to increase the speed of information transactions

• Increasing competitiveness by improving HR operations and management processes

• Collecting appropriate data and converting them to information and knowledge for improved timeliness and quality of decision making

• Producing a greater number and variety of accurate and real-time HR-related reports

• Streamlining and enhancing the efficiency and effectiveness of HR administrative functions

• Shifting the focus of HR from the processing of transactions to strategic HRM

• Reengineering HR processes and functions • Improving employee satisfaction by delivering HR services more

quickly and


Harnessing the potential of an HRIS The ability of any organization to gain effectiveness and

efficiencies from Human Resources Technology depend on such factors as:

• the size of the organization, with large firms generally reaping greater benefits;

• the amount of top management support and commitment;

• the availability of resources (time, money, and personnel);

• the HR philosophy of the company as well as its vision, organizational culture, structure, and systems;

• managerial competence in cross-functional decision making, employee involvement, and coaching; and

• the ability and motivation of employees in adopting change, such as increased automation across and between functions (Ngai & Wat, 2004).


INFORMATION SYSTEMS PROVIDING SUPPORT FOR HRM (Table 1.1)

Organizational Level

Type of System Major Goal and Focus

HRM Example

Operational Transaction Processing System

Improved transaction speed and accuracy Improved efficiency in the processing of daily business transactions Automation of routine transactions Reduced transaction costs

Payroll processing Time and attendance entry

Managerial Management Information System

Provides key data to managers Supports regular and ongoing decisions Provides defined and ad-hoc reporting

Producing EE03 reports Calculating yield ratios for recruiting Calculating per-capita merit increases

Executive Executive Information System

Provides aggregate, high-level data Helps managers with long-range planning Supports strategic direction and decisions

Succession planning Aggregate data on balanced scorecard


INFORMATION SYSTEMS PROVIDING SUPPORT FOR HRM (Table 1.1 Cont.)

Organizational Level

Type of System Major Goal and Focus HRM Example

Boundary Spanning Decision Support System

Interactive and iterative managerial decision-making Supports forecasting and “what-if” analysis Supports business simulations

Staffing needs assessment Labor market analysis Employee skills assessment

Expert System Embed human knowledge into information systems Automate decisions with technology

Résumé keyword searches

Office Automation Systems

Designing documents Scheduling shared resources Communication

E-mail training room scheduling

Collaboration Technologies

Supports electronic communication and collaboration between employees Supports virtual teams

Communication support for e-learning Online meetings and shared documents HR departmental wikis

Enterprise Resources Planning System

Integration and centralization of corporate data Share data across functional boundaries Single data source and common technology architecture

Orangery Oracle/PeopleSoft Lawson HRM SAP


SYSTEM DEVELOPMENT LIFE CYCLE (SDLC)

• Five General Phases:

(1) Planning

(2) Analysis

(3) Design

(4) Implementation

(5) Maintenance

– Begins With Planning And Ends With Continuous Evaluation


SuccessFactors Employee Home Screen (Figure 1.2)


A MODEL OF ORGANIZATIONAL

FUNCTIONING

• Organic model

• HRIS is critical to the efficient operation of an organization

• Interrelatedness between the strategic management system, the strategic HRM system, and the performance goals, business and HR are generated during the strategic planning process.


A MODEL OF ORGANIZATIONAL

FUNCTIONING

• The HR Goals Drive The HR Programs That Provide Management The Tools For The Efficient And Effective Use Of Employees

• The HRIS Has Become Increasingly Important In Supporting The HR Management System As Well As In Strategic Planning

• HR Metrics And Cost-benefit Results (Value Added And Return On Investment - ROI), Are In Continual Interaction


A MODEL OF ORGANIZATIONAL FUNCTIONING

• National Culture Impacts Entire Model Through Strong Effects On External Environment

• External Environment Influences Internal Functioning Of Organization

• Interaction Between Strategic Management System And Strategic HRM Will Improve The Functioning Of The Organization

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