HR Administration & HRIS Week 08
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Questions and Answers

What defines the concept of offshoring in relation to outsourcing?

  • Contracting with vendors outside a nation for cost savings. (correct)
  • Collaborating with domestic partners for better service delivery.
  • Utilizing in-house resources to fulfill HR services.
  • Contracting with local vendors to improve efficiency.

    • Which type of capital is characterized by an organization's technology and geographic locations?

  • Physical capital (correct)
  • Social capital
  • Human capital
  • Organizational capital

    • What do transaction costs refer to in the context of economic transactions?

  • Expenses associated with any economic transaction. (correct)
  • The financial loss from inefficient outsourcing.
  • Only the costs incurred in making goods internally.
  • The costs of negotiating contracts with vendors.

    • What is the primary purpose of employee self-service (ESS) HR portals?

    <p>To enable employees to access HR services independently.</p> Signup and view all the answers

    Which of the following is considered a disadvantage of self-service HR portals?

    <p>Potential for security breaches.</p> Signup and view all the answers

    Manager self-service (MSS) portals primarily serve what function?

    <p>To allow managers to view subordinate information and manage tasks.</p> Signup and view all the answers

    The resource-based view of organizations emphasizes what aspect as critical for gaining a competitive advantage?

    <p>The effective combination and management of all types of resources.</p> Signup and view all the answers

    Which option best illustrates the 'make or buy' decision in transaction cost theory?

    <p>Deciding whether to hire additional staff or outsource work.</p> Signup and view all the answers

    What is a primary advantage of implementing a Shared Service Center (SSC)?

    <p>Enhanced focus on delivering timely, high-quality transactions</p> Signup and view all the answers

    Which of the following is a potential disadvantage associated with Shared Service Centers (SSCs)?

    <p>Depersonalization due to technology replacing personal interaction</p> Signup and view all the answers

    What is a critical aspect that outsourcing contracts should include?

    <p>Pricing agreements, expected performance, and specific conditions</p> Signup and view all the answers

    How can organizations be protected from incompetent outsourcing providers?

    <p>Through comprehensive contracts with specific measures and terms</p> Signup and view all the answers

    Why might employees feel dissatisfied with limited access to their personal data within an organization?

    <p>They could feel their privacy is invaded</p> Signup and view all the answers

    What is a strategic purpose of creating Shared Services within an organization?

    <p>To better concentrate on efficiency, value generation, and internal service improvement</p> Signup and view all the answers

    Which of the following metrics is least likely to be used by Shared Service Centers to demonstrate their value?

    <p>Employee turnover rates</p> Signup and view all the answers

    In the context of outsourcing HR services, what is a main reason firms may choose to partner with niche providers?

    <p>Access to discrete, specialized Human Resource Outsourcing (HRO) capabilities</p> Signup and view all the answers

    What percentage of HR activities are considered transactional?

    <p>65% to 75%</p> Signup and view all the answers

    Which of the following is NOT a benefit of implementing HRIS in HR administration?

    <p>Increased need for manual data entry</p> Signup and view all the answers

    What is the primary function of the employee master file in an HRIS?

    <p>To serve as a repository for relevant employee information</p> Signup and view all the answers

    Which administrative approach involves electronic access to HRM information?

    <p>Self-service portal</p> Signup and view all the answers

    What is a shared-service center (SSC) primarily focused on?

    <p>Value creation through service enhancement</p> Signup and view all the answers

    What is a crucial requirement before creating modules like recruiting in HRIS?

    <p>Employee master file creation</p> Signup and view all the answers

    Which of the following aspects does HRIS enhance in relation to reporting?

    <p>Reliability of reporting</p> Signup and view all the answers

    Which statement about HRIS is correct in terms of global use?

    <p>HRIS can facilitate supportive differences in government-mandated reporting.</p> Signup and view all the answers

    What characterizes Total HRO in the context of HR outsourcing?

    <p>Outsourcing all HR functions to a single or few external vendors</p> Signup and view all the answers

    Which of the following is an advantage commonly associated with HR outsourcing?

    <p>Improved focus on core business activities</p> Signup and view all the answers

    What is a common disadvantage of outsourcing HR functions?

    <p>Possible loss of internal expertise and knowledge</p> Signup and view all the answers

    What is the main purpose of offshoring HR functions?

    <p>To reduce operational costs and increase profits</p> Signup and view all the answers

    Which of the following factors should be considered before offshoring HR functions?

    <p>Cultural differences and the political stability of the country</p> Signup and view all the answers

    Which statement is true regarding offshore ownership compared to offshore outsourcing?

    <p>Offshore ownership may involve establishing a new subsidiary</p> Signup and view all the answers

    What is a key challenge firms face when backsourcing?

    <p>Reorganizing systems and processes internally</p> Signup and view all the answers

    What best describes multiprocess HRO?

    <p>Utilizing external firms for one or more related HR functions</p> Signup and view all the answers

    Study Notes

    HR Administration & HRIS (Week 08)

    • HRM administration handles 65% to 75% of HR activities, which are transactional.
    • This involves record-keeping, updating policy materials for self-service portals, generating internal reports, and complying with external reporting mandates.
    • HRIS are vital in managing complex transactional requirements.
    • The employee master file is a crucial database for all employee information, required before other HR modules.
    • HRIS enhance HR administration efficiency by improving data accuracy, reducing multiple inputs and redundancies, minimizing human error, and lowering costs.
    • Speeding up report building and improving reporting reliability are key benefits.
    • HRIS improves service to internal customers and supports strategic goal achievement.
    • They also support global reporting requirements and secure data distribution.

    HR Administrative Approaches

    • Self-service portals are electronic access points to HR information via company devices or internet.
    • Shared Service Centres (SSC) are technology-enhanced HR groups focusing on delivering excellent service to internal customers while promoting cost efficiency and continuous improvement.
    • Human Resources Outsourcing (HRO) involves contracting with vendors to perform HR services.
    • Offshoring extends outsourcing by contracting with vendors outside a nation's borders for cost savings or other advantages.

    Theory and HR Administration

    • Resource-based view: Organizations are bundles of resources (physical, organizational, and human capital).
    • Physical capital includes technology, locations, assets (e.g., plants, money), and raw material access.
    • Organizational capital encompasses formal reporting structures, coordinating systems, and internal/external relationships.
    • Human capital includes employee experience, capabilities, relationships, and insights.
    • These resources help organizations achieve a sustainable competitive advantage.
    • Transaction cost theory: Organizations choose whether to purchase goods/services in the marketplace or produce them internally based on transaction costs. Internal or external costs associated with the transaction are evaluated.

    Self-Service Portals

    • Employee self-service (ESS) portals allow employees to access services and information electronically, with a single sign-on.
    • Manager self-service (MSS) portals provide comprehensive information about subordinates, enabling managers to perform administrative tasks electronically. These may include budgeting, reporting, policy, and procedure development.

    Sample Employee Self-Service Functionality

    • Provides functions for communications, benefits, personal data, and development.
    • Self service functionality includes reviewing company communications, accessing company policies and procedures; researching and viewing plans, enrolling in programs (medical, dental, insurance), adding/deleting dependents, retirement/investment info/records, updating personal data (contact, address, telephone, degree, graduation date and W-4), accessing and submitting timesheets; vacation, sick days, and travel expense reports; training courses; and internal/external job applications.

    Advantages and Disadvantages of Self-Service Portals

    • Advantages: Faster, higher-quality service to employees and managers, simplified routine inquiries, increased employee satisfaction, increased employee control over access activities, improved productivity, fewer transactions for HR employees, and lower HR costs.
    • Disadvantages: Increased security vulnerabilities, increased chances of misuse of information by others, concern over violation of personal privacy, and possible misperception of HR work burden.

    Shared Service Centers (SSC)

    • Shared services, a collaborative strategy focused on concentrating staff functions, promote greater efficiency and service to internal customers.
    • Viewing themselves as independent business units offering products, SSC's need to demonstrate value by establishing measures demonstrating customer satisfaction, productivity, cost controls, and quality.

    Advantages and Disadvantages of SSCs

    • Advantages: Timely, high-quality transactions; customer satisfaction improvements; efficiency and standardization; facilitating the development of quality measures, and responsiveness.
    • Disadvantages: Costs that overshadow long-term quality, lack of synergy, potential power shifts between departments, and depersonalization from technology.

    Outsourcing and HRIS

    • Outsourcing involves contracting with vendors to perform one or more HR services or activities.
    • Essential components of outsourcing contracts include specific pricing, performance expectations, associated measures, and terms/conditions.
    • Essential for organizations is to be protected against unethical or incompetent providers.

    Reasons to Outsource HRIS

    • Discrete HRO: specialized external firms dealing with individual HR functions.
    • Multiprocess HRO(Comprehensive/Blended): external providers handling multiple, related HR functions like recruitment, selection, and retirement plans.
    • Total HRO: external vendors managing all or nearly all HR functions.

    Evaluation of Outsourcing

    • Advantages: Cost-savings, improved performance, flexibility, and focused core activities.
    • Disadvantages: Loss of control, diminished strategic advantages, less internal expertise, potential job losses, management costs, and potential mismanagement costs.

    Offshoring

    • HR outsourcing with vendors outside the country, enabled by broadband and internet technology and fuelled by global competition.
    • Primarily used to reduce costs and increase profits.

    Types of Offshoring

    • Offshore ownership: establishing a subsidiary, joint venture, or acquiring an existing firm in a foreign country.
    • Offshore outsourcing: traditional contractual relationships with existing foreign firms. Ownership is riskier.

    Things to Consider Before Offshoring

    • Necessary employee knowledge, skills, and abilities (e.g., language)
    • Information and communication systems compatibility
    • Government regulations and legal employment requirements
    • Political stability and facility & employee security
    • Cultural differences

    References

    • Human Resource Information Systems (5th edition), Chapter 6

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    Description

    This quiz covers essential concepts of HR administration and the role of HRIS in enhancing HR activities. Topics include transaction management, record-keeping, report generation, and the significance of self-service portals for employee data. Understand how HRIS improves efficiency and supports strategic goals in HR management.

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