Evolution of HRM and HRIS - Chapter 1

Chapter 1: Evolution of Human Resource Management and Human Resource Information Systems

• The changing role of human resources (HR) professionals is discussed.
• The impact of computer technology on the evolution of HRM and HRIS is covered.
• Three types of HR activities are described.
• The purpose and nature of an HRIS, and the differences in information systems functionality within an HRIS, are explained.
• The role of information from an HRIS in organizational decision-making is examined.

Need for HRIS: External Environment

• Government regulations are a driving force for HRIS implementation.
• The EEO-1 Report plays a critical role.
• Employee composition significantly impacts HRIS needs.
• Increased records and reports contribute to the need for HRIS.
• Court decisions influence HR policies and practices, necessitating an HRIS.
• New laws also influence the adoption and use of HRIS.

Pre-World War II HR

• HR departments were previously known as "Personnel function."
• HR activities were primarily focused on caretaker tasks, like maintaining records (Record Keeping Manual).
• Scientific management was the prevailing management philosophy.
• Government influences on HR were minimal at the time.
• Record-keeping is a fundamental function integrated into modern HRIS designs.

Post-War (1945-1960)

• Employee morale became critical during this period.
• Efforts to categorize workers based on occupational categories and job descriptions increased.
• Labor unions emerged and influenced HR practices, demanding systematic record-keeping and reporting to governmental agencies.
• Specialized divisions like recruitment, training, and government relations were established.

Social Issues Period (1963-1980)

• Social issues legislation significantly influenced HR.
• Legislation focused on protecting employees' rights and well-being.
• There was a strong need automate data collection, analysis, and report generation.
• Decreasing computer technology costs and increasing costs of employees played a key role in automating HR functions.
• Introduction of IBM 360 and the advent of Management Information Systems (MIS) played an imperative role in reducing operating costs.
• Personnel (HR) managers were pressured to justify the cost increases in staffing against productivity improvements.

Cost-Effectiveness (1980-1990s)

• Cost reduction through automation of processes remained a key driver.
• Increased use of HR Information Systems (HRIS) continued.
• HR activity cost justification became important.
• HR shifted from primarily transactional activities to traditional and transformational HR activities.

Technology Advancement Era (1990s-Present)

• Globalization, technological breakthroughs, and hyper-competition significantly impacted this era.
• Strategic HRM (RBV) emerged as a crucial concept.
• Use of metrics such as HR Balanced Scorecard (BSC), Return on Investment (ROI), and Human Resource Planning (HRP) became widespread.

Balanced Scorecard (BSC)

• The Balanced Scorecard (BSC) is a performance management and measurement tool.
• It was developed in the 1990s.
• The aim is to help managers achieve strategic goals.
• BSC measures performance in four perspectives: Learning and growth, Internal processes, Customers, and Financial.

Cost-Effectiveness Era (1980-1990s) and Technological Advancement Era (1990s-Present)

• Overall focus shifted from employee administration to employee development, and employee involvement became crucial.
• Transformational activities were emphasized.
• HRM focused on strategic HR activities.
• Strategic HRM utilized HR Balance Scorecards.

HRIS Definition and Purpose

• Computerized systems that acquire, store, manipulate, analyze, retrieve, and distribute HR information are the core of an HRIS.
• HRM and managerial decisions are facilitated through an HRIS.
• HRIS comprises people, policies, procedures, and data, transcending the software and hardware.
• Increased storage and retrieval of data and new information generation are vital benefits.
• HRIS leads to reduced administrative costs, improved productivity, and faster response times.

Examples of HR Data

• Examples of HR data include recruitment, training, payroll, benefit administration data.
• Other relevant data might include source-to-hire, time-to-fill statistics, cost per hire, conversion rates, candidate experience, and candidate retention data.

Questions (Review of Important Topics)

• HRIS is defined as a computerized system used to acquire, store, manipulate, analyze, retrieve, and distribute information about an organization's human resources to support HRM and managerial decisions.
• HRIS encompasses more than just computer hardware and software; It includes people, policies, procedures, and data.

HRIS Definition & Variety of Users

• HRIS is designed to provide accurate and timely information for decision-making.
• HRIS caters to different user groups, including strategic users focusing on long-term decisions (e.g., facility expansion) and operational users focused on day-to-day activities (e.g., timekeeping and attendance).
• Tactical users are also involved in evaluating and improving processes (e.g., training programs).

E-HRM and HRIS

• Electronic Human Resource Management (E-HRM) leverages technology to improve HR operations.
• HRIS improves and supports HR processes and improves delivery and effectiveness to both HR staff and employees.

Why Do We Need HRIS?

• HRIS offers a comprehensive, unified view of employee data.
• It enhances HR operations and management processes, leading to improved competitiveness.
• Converting data into actionable information empowers improved and timelier decision-making.
• HR-related reports are produced more accurately and frequently.
• Streamlined and enhanced efficiency and effectiveness in HR administrative functions.
• A shift in focus from transaction processing to strategic HRM.
• Reengineering HR processes and functions.
• Improved employee satisfaction through more timely and accurate HR services.

Factors Affecting HRIS Implementation

• Organization size. Larger organizations often benefit more from HRIS.
• Top management support and commitment.
• Availability of resources (time, money, personnel).
• Employee ability and motivation to adapt to changes and increased automation.

Information Systems Supporting HRM

• Operational: Transaction processing systems (payroll, time and attendance).
• Managerial: Management information systems (producing reports, supporting ongoing decisions).
• Executive: Executive information systems (supports long-range planning and strategic decisions).
• Boundary Spanning: Decision support systems (supports interactive decision-making). Expert systems (integrating human knowledge). Office automation systems (document design, scheduling). Collaboration technologies (communication and collaboration support). Enterprise resource planning (ERPs) integrate data across functions.

System Development Life Cycle (SDLC)

• The SDLC consists of planning, analysis, design, implementation, and maintenance phases.
• Continuous evaluation is an ongoing process.

Organizational Functioning Model

• The organic model highlights the critical role of HRIS in organizational operation.
• HRIS is strongly linked to the strategic management system and goals.

HR Goals, Programs, and Metrics

• HR goals drive HR programs for effective employee use.
• HRIS becomes increasingly important in supporting HR management and strategic planning.
• HR metrics, cost-benefit results, value-added, and return on investment (ROI) contribute to continuous interaction.

National Culture and Organizational Impacts

• National culture significantly impacts the entire organizational model through its influence on the external environment.
• The external environment influences internal organizational functioning.
• Strategic management and HRM interaction improves organizational functioning.

This quiz covers the transformation of Human Resource Management and Human Resource Information Systems. It explores the changing role of HR professionals, the influence of technology on HRM, and the importance of HRIS in organizational decisions. Additionally, it highlights external factors driving the need for HRIS.