HO 343 -- Session 15: Integrated HRIS Development EK BUNCHUA [email protected] Room # 528 Thammasat...

HO 343 -- Session 15:HO 343 -- Session 15:

Integrated HRIS DevelopmentIntegrated HRIS Development

EK [email protected]

Room # 528Thammasat Business School

1. Recap HRIS Concepts1. Recap HRIS Concepts2. HRIS Database2. HRIS Database3. Internal Records3. Internal Records4. HR Intelligence4. HR Intelligence5. HR Research5. HR Research6. HR DSS6. HR DSS7. Functional ISs Integration7. Functional ISs Integration

Today’s Lecture

1. Recap HRIS Concepts1. Recap HRIS Concepts

• HRIS Definitions• HRIS Challenges• Purposes of HRIS• A Model of HRIS• HRIS Subsystems• HRIS Applications Structure

HRISFNISAIS MKIS MFIS

Human ResourceHuman ResourceInformation SystemInformation System

... an integrated system designed to provide information used in HR decision making.

(Mathis & Jackson)

Human ResourceHuman ResourceInformation SystemInformation System

... a system for

• gathering and maintaining the data that describes the HR,

• transforming the data into information, and

• reporting the information to users.

(McLeod)

Other departments, managers, employees are the main customers of the HR services

HRIS must be integrated with other functional information systems, and must be linked across the organizational hierarchy to enable the free flow of information

HRIS ChallengesHRIS Challenges

Horizontal integration

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Purposes of HRISPurposes of HRIS

To improve the efficiency with which data on employees and HR activities is compiled

To provide HR information more rapidly and more easily for use by management in making decisions

(Mathis & Jackson)

Database

InternalRecordsSystem

InternalRecordsSystem

HRIntelligence

System

HRIntelligence

System

HRResearchSystem

HRResearchSystem

HRDecisionSupportSystem

HRDecisionSupportSystem

• Recruiting• Work force management & evaluation• Compensation• Benefits etc.

A Model of HRISA Model of HRIS

(Adapted from McLeod)

HRIS Applications StructureHRIS Applications Structure

Stand-alone HRIS structure Each application (subsystem) of HR op

erates independently of each other Core HRIS structure

The applications function as a unit Sharing a common database The outputs of one system provide the i

nputs for another

2. HRIS Database2. HRIS Database

• Uses of HRIS Database• Steps in Developing HRIS Database

Uses of HRIS DatabaseUses of HRIS Database

Operational day-to-day support of the business

Analytical analysis of historic and transaction d

ata to create or adjust HRM strategies, a

s well as other business strategies

1. Define the database functions What functions do I want this database to p

erform? Operational or Analytical?

Issues: Quick response time and easy access? Technical problem Data analysis capabilities IT people tend to focus on the operational of syste

ms

Steps in Developing HRIS DatabaseSteps in Developing HRIS Database

2. Define the information requirements

There are two approaches:(1) Only a small amount of the employee data captur

ed will be used to make decisions Identify and capture only key information

(2) Capture as much information as possible and start looking for trends within the data Data-mining approach Create a large data warehouse which is used to iden

tify the meaningful trends


Which approach to be determined?

Answer the following questions: Have we prioritized the information required? Is the information consistent with our HRM strateg

y? How easily can the information be updated? What are the costs and benefits associated with gat

hering information? Should the database include prospective employees

?


3. Identify the information sources Internal sources v.s. External sources

Issues: How the information will be acquired and updated

on an ongoing basis? Existing employees v.s. potential employees Reliability


4. Select the database technology and hardware platform Depends on the intended uses of the database Relational database is the preferred solution for the

vast majority of applications The selection of hardware platform will depend on

the size of the database, and the number and location of potential users.


5. Build applications to access and process information Specify application requirements Element of the design

Data flow Data store Processes Procedures Controls Roles


6. Populate the database Major task when developing HRIS database Poor-quality data is the primary reason for most of

HRIS failures

Issues Much of the required information is already held in

paper or electronic format Numbers of different locations where the data can

be found Time consuming, require considerable resources


7. Maintain the database Ongoing maintenance activity is required to keep t

he information in the database up to date


The database is a living breathing thing that requires constant attention -- you can’t just build it and say “that’s it”.

(Curtis)

3. Internal Records System3. Internal Records System

• Establishment of Internal Records• Personnel Data Elements• Accounting Data Elements

Establishment of Internal RecordsEstablishment of Internal Records

Current employee-related data Confidential data

reference letters promotability assessments financial items medical benefits

Historical data

Personnel Data ElementsPersonnel Data Elements

Non-financial in nature Relatively permanent Be created by HR at the time of employ

ment Be kept current as long as the employee

s work for the firm

Examples: employee name, sex, date of birth, educ

ation, number of dependents, etc.

Accounting Data ElementsAccounting Data Elements

Primarily financial Tend to be more dynamic

Examples: hourly rate, monthly salary, current gro

ss earnings, sales amount, commission paid, year-to-date income tax, etc.

4. HR Intelligence System4. HR Intelligence System

• HR Intelligence Concepts• Sources of HR Intelligence• Elements of HR Intelligence

HR Intelligence ConceptsHR Intelligence Concepts

HR Intelligence system gathers data relating to human resource from the firm’s environment

Informal reporting system BPEST Analysis

Business (industry) Politics Economics Social Technology

Sources of HR IntelligenceSources of HR Intelligence

Company’s own personnel Executives Specialists and consultants Salespersons Other employees

Issue: Always busy people Fail to pass on important information Intelligence gatherers must be trained and

encouraged to report intelligence back to the company


Company’s supply chain Suppliers Resellers Customers Partners

Competitors Annual reports Speeches and press releases Advertisements and marketing commun

ications Web sites


Publications and mass media Television news Newspapers Magazines and journals

Syndicated services Customized reports on demand

Electronic databases

Elements of HR IntelligenceElements of HR Intelligence

Government intelligence To assist the firm in complying with the v

arious employment laws Labor union intelligence

To manage the labor contracts between the unions and the firm


Financial community intelligence To be used in personnel planning based o

n economic data Global community intelligence

To describe local resources such as housing, education, and recreation

To be used in recruiting employees on an regional, national, and international scale


Supplier intelligence To enable the firm to perform its recruitin

g and hiring functions Insurance companies

-- employee benefits University placement center and empl

oyment agencies -- source of new employees


Competitor intelligence Another source of new employees especi

ally in highly specialized knowledge and skills required industries

To gather information concerning their personnel practices and individuals who are potential recruits

5. HR Research System5. HR Research System

• Uses of HR Research• Types of Research• Experiments and Pilot Projects• Employee and Attitude Surveys• Exit Interviews• HR Audit

A Definition of A Definition of RESEARCHRESEARCH

R = Recognition of information needs

E = Effective decision making

S = Systematic and objective

E = Exude/disseminate information

A = Analysis of information

R = Recommendations for action

C = Collection of information

H = Helpful to managers

(Malhotra)

Uses of HR ResearchUses of HR Research

Monitoring current HR activities Identifying HR problem areas and pos

sible solutions to those problems Forecasting trends and their impact on

HR management Evaluating the costs and benefits of H

R activities

Types of ResearchTypes of Research

Primary research Research method in which data are g

athered firsthand for the specific project conducted

Secondary research Research method using data already g

athered by others and reported in books, articles in professional journals, or other sources

Experiments and Pilot ProjectsExperiments and Pilot Projects

To determine how factors respond when changes are made in one or more variables, or conditions

Major problem: HR management is practiced in the real worl

d

Employee and Attitude SurveysEmployee and Attitude Surveys

To give employees opportunities to voice their opinions about specific HR activities

Can be used to: diagnose specific problem areas identify employee needs or preferences reveal areas in which HR activities are well re

ceived or are viewed negatively

Issues: Anonymity Support of top management

Exit InterviewsExit Interviews

To focus on a variety of problems An interview in which those leaving the orga

nization are asked to identify the reasons for their departure

Issues: Most popular reason - an offer for more pay el

sewhere Must be conducted by HR specialists rather th

an supervisors some time after they have left the organization

HR AuditHR Audit

To assess HR effectiveness A formal research effort that evaluates the cur

rent status of HR management in an organization

Steps: Determine the objectives to be achieved in the

HR area Compare the actual status of HR activities wit

h the objectives Review of all relevant HR documents

6. HR Decision Support System6. HR Decision Support System

• DSS Concepts• Characteristics of DSS• Identifying DSS Problem• Components of DSS• Stages of Decision Making• Levels of DSS• Approaches to Decision Analysis

A decision support system should: Assist managers in making decisions to so

lve semi-structured problems. Support the manager’s judgment rather th

an try to replace it. Improve the manager’s decision-making e

ffectiveness rather than its efficiency.

DSS ConceptsDSS Concepts

DSS offer users flexibility, adaptability, and a quick response

DSS allow users to initiate and control the input and output

DSS operate with little or no assistance from professional programmers

DSS provide support for decisions and problems whose solutions cannot be specified in advance

DSS use sophisticated analysis and modeling tools

Characteristics of DSSCharacteristics of DSS

Problems should be identified by users There must be a body of data to work with and analyze The problem must be one for which no simple formula

provides a solution There must be some systematic way of thinking about t

he problem that a DSS can automate or assist The problem must be important enough to engage the ti

me and energy of management groups ranging from first line supervisors to senior management

Identifying DSS ProblemIdentifying DSS Problem

DSSDatabase

DSSDatabase

ModelBase

ModelBase

DSS Software SystemManage DSS Database

Manage Model BaseManage User Interface

DSS Software SystemManage DSS Database

Manage Model BaseManage User Interface

UserInterface

UserInterface

FinancialAccountingSales/MKTProduction

StatisticalForecastingOperationalPlanning

Components of DSSComponents of DSS

Stages of Decision MakingStages of Decision Making

IntelligenceIntelligence

DesignDesign

ChoiceChoice

ImplementationImplementation

Is there a problem?

What are the alternatives?

Which should you choose?

Is the choice working?

Level 1: Data Acquisition, Storage and Retrieval

Level 2: Data Analysis Finding and analyzing the relationships betw

een variables Level 3:

Decision Analysis Prioritization and choice among alternatives

Levels of DSSLevels of DSS

Approaches to Decision AnalysisApproaches to Decision Analysis

Checklists Pro/con analysis Weighting and scoring method Management sciences models

Linear programming Optimization models Decision tree Multiple regression

Analytic hierarchy process

7. Functional ISs Integration7. Functional ISs Integration

• Development of Business Information System• Managerial Views of HRIS• Value Chain Model• System Concept• HR Information Transfer

Development of Development of Business Information SystemBusiness Information System

From local to nationalto global business

From local to nationalto global business

From buyer needsto buyer wants

From buyer needsto buyer wants

From priceto non-pricecompetition

From priceto non-pricecompetition

Managerial Views of HRISManagerial Views of HRIS

HRIS is the most highly valued HRIS is valued higher than other syste

ms HRIS is valued on a par with other sys

tems HRIS is valued less than other system

s HRIS has little value Top management is unaware of HRIS

ProfitMargin

Value Chain ModelValue Chain Model

CustomerServices

Marketing& Sales

OutboundLogisticsOperations

InboundLogistics

Firm Infrastructure

Human Resource Management

Technical Development

Procurement

Pri

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ort

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System ConceptSystem ConceptOrganizationas a System

AC FN

HR MFG

MK

Consists offunctionalSubsystems

B

C

A

D

Interact andinter-linkageamong thesubsystemsto achieveorg. goal

Each subsystemhas its dept. goal

Dir

ect A

chieve

System Boundary

Internal

External

Each subsystemcan be viewed asanother system;and consists of itsown subsystems

AIS HRISFNIS MFISMKIS 2. Functional AAAAA

TPS

MIS

DSS

EIS

ES

KWS

OAS

WIS

DIS

OIS(MIS)

I-OIS

PIS

3. Organizational AAAAAA

1.S

upp

ort

Pro

vid

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HR Information TransferHR Information Transfer

To provide the information to those who need it in a format that is useful to them

Communication affects the management of people as much as (or more than) any other process over which management is influence

Communication throughout the organization is very importantHorizontal integration

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Free flow of information

Ready for EXAM?

HO 343 -- Session 15: Integrated HRIS Development EK BUNCHUA [email protected] Room # 528 Thammasat...

Documents

Transcript of HO 343 -- Session 15: Integrated HRIS Development EK BUNCHUA [email protected] Room # 528 Thammasat...