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Systems Acceptance:A Case Study of a

Human Resources System

By

Dr. Bob Travica

Updated June 2006

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Outline

• Purpose of Study

• The HR System

• Models of ERP Acceptance

• Study Methods

• Findings

• Summary

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Purpose of Study

• Purpose: Understand conditions for increasing acceptance of a human resources system.

- Diagnosis of the acceptance issues- Recommendation for increasing acceptance

• Organization: A mid-sized Canadian company (henceforth, “the company”).

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• Records time, expenses, and other dynamic employee information. • Delivers reports for management decision making. • Allows employees to access their information any time.

The HR system

• A goal: Reduce administrative costs by having employees enter their data and managers perform online approvals (query employee data and record decisions online) – self service. • A frequent system in mid/large size organizations in Canada.

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Databases w/Personal Info

Employee,Manager

- Organizes data - Generates reports- Creates data warehouse for analysis supporting decision making.

The system

ERP (Middleware)

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Phases1. Chartering (Planning)2. Project (Development, Implementation)3. Shakedown (Go Live to Achieving System’s Routine Use or Shutdown)4. Onward & Upward (Normal routine use, payoffs)

Shakedown Problems- Maintenance of old processes- Poor software ease of use - Users’ skills stalled after training- Low usage of system

Shakedown Performance Metrics

- Systems downtime- Response time- Job quality/stress

Shakedown Success Conditions- Well-configured and integrated system- Redesigned business processes- Trained users- Resources to address problems - Action to fix problems

ERP System Development

- Markus & Tanis (2000): Four-Phase Enterprise Systems Experience Cycle

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Study MethodsResearch Model of Users’ Acceptance

of the System

SYSTEM ACCEPTANCE

IT, Information,New ways of working

SYSTEMDESIGN

ORGANIZATIONALISSUES,

CHALLENGES,PROBLEMS

ACCEPTANCE DRIVERSON THE USERS’ SIDE

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Study Methods

1) Interview:• Partly combined with observation of system use• 33 persons interviewed, including 4 focus groups, 22 hours• Cross-sectional (units, geography, hierarchy)• Different sampling methods

• Qualitative inquiry: semi-structured interviewing to learn about perceptions, opinions, assessments, ideas…

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2) Survey of professionals, managers, and clerks:• Electronic, anonymous• Random sample of 38% of all system users• Response rate 61% (excellent)• 7 scale-based questions, 1 open-ended, 2 support

3) Company documents, access to the system

Three Study Methods

• Data analyzed by using qualitative content analysis and correlation analysis.

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Findings

• Eight months into the “shakedown phase”:- User Satisfaction b/w 64%-76% for key functions of the system- Routine Use achieved by 58% of users- System assessed as easy to use by 53%.

• Ease of Use (“user friendliness”) identified as a key problem. Related to:

- System’s Acceptance (r*=0.3) - Satisfaction (0.7)- Usefulness of managers’ online approvals (0.5).

* r = Coefficient of Correlation

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• All users appreciate better information, but system not easy to use -- user interface issues.

• Particular Challenge: Parallel change of work processes and the system.

Findings

• Culture unprepared for the system, an adjustment much needed.

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Findings

ACCEPTANCE DRIVERSUsers’ Assessments of System

Benefits & Costs

Users’ Sense Making of SystemTerms | Grapevine |

Systems Comparisons

Users’ Perception of Support:Training | Helps | Maintenance

Process Adoption Readiness:Management Change

Culture Adjustment Readiness:Core Beliefs & Behaviors

IT Culture Management Culture

Self Service Paper vs. Electronic Beliefs &

Behaviors IT Development Pace Business vs. Technology Focus

SYSTEM ACCEPTANCETechnology AcceptanceInformation AcceptanceProcesses Acceptance

Culture Adjustment

SYSTEMDESIGN:

System’s Complexity &

Lack of Familiarity

IT Maturity

Configuration vs.Customization

Implications ofSAP Strategy

OTHERORGANIZATIONAL

ISSUES:

Human Resources Function --

OrganizationResponsibilities

Roles

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• Culture Adjustment:

• Paper vs. Electronic Beliefs/Behaviors: - Unclear costs of paper trail and benefits of electronic. - Goal of “paperless administration” may need re-evaluation.

• Management Culture: Managers’ IT-related skills & attitudes toward using IT may need scrutinizing.

• Self Service: No prior experience and needs special attention.

• IT Culture: Place of electronic IT in development programs not prominent enough. An inclination toward criticizing.

Findings

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• IT Development Pace: - Perceived too fast by a number of employees- Are applications rounded up before new ones are released?

• Business vs. Technology Focus: Consider expanding interfaces between technology users (workers, managers) and developers (IS function).

Findings

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Summary

• Study of HR System’s acceptance in a mid-sized company used interviews multiple methods.

• System’s acceptance pull: Better information.

• The system’s acceptance parameters found to be: 53-76%

• System’s acceptance push back: - Difficult user interface - Process change - A lack of cultural readiness.

• Concerted effort from top management down needed in order to cope with the push back.

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