HRIS-Wk08 PDF

HR ADMINISTRATION & HRIS HRMIS – Week 08 HRM Information System (TM-352) COURSE OUTLINE Pre-mid 1. The evolution of HRM and HRIS 2. Technology and its impact on HR and business professionals 3. System considerations in the design of an HRIS 4. The SDLC and HRIS needs analy...

HR ADMINISTRATION & HRIS HRMIS – Week 08 HRM Information System (TM-352) COURSE OUTLINE Pre-mid 1. The evolution of HRM and HRIS 2. Technology and its impact on HR and business professionals 3. System considerations in the design of an HRIS 4. The SDLC and HRIS needs analysis 5. System design and acquisition 6. Change management and system implementation 7. Cost justifying HRIS investments 8. HR administration and HRIS INTRODUCTION Approximately 65% to 75% of all HR activities are transactional HRM administration deals with the efficient performance of the transactional activities Record keeping Updating policy and informational materials for a self-service portal Generating and disseminating internal reports Complying with governmentally mandated external reporting Administering labor contracts 3 EMPLOYEE MASTER FILE Human resource information systems (HRIS) are vital tools in managing these increasingly complex transactional requirements. The employee master file is a record and repository for all relevant employee information; the employee database It must be created prior to any other modules for programs, such as recruiting and applicant tracking It is crucial that this file be carefully constructed so that the information is accurate and timely 4 HR ADMINISTRATION HRIS helps to improve the efficiency of HR administration Help improve data accuracy Reduce the need for multiple inputs Eliminate redundancies in data Reduce the opportunity for human input errors and associated corrections Reduce the costs Speed the process of building reports Enhance the reliability of reporting Improve service to internal customers Facilitate strategic goal achievement Can support differences in reporting mandated by global governmental jurisdictions Can support secure global distribution of data 5 HR ADMINISTRATIVE APPROACHES 4 administrative approaches are: The self-service portal is an electronic access point to an organization’s HRM information; access may be via the organization’s computers and intranet or remotely from other locations via the Internet. A shared-service center (SSC) is a technology-enabled HRM group focused on value creation by providing excellent service to internal customers while reducing costs through increased efficiency and continuous improvement. Human resources outsourcing (HRO) is the practice of contracting with vendors to perform HR services and activities. Offshoring is an extension of outsourcing that involves contracting with vendors outside a nation’s boundaries to effect additional cost savings or gain other benefits over domestic outsourcing alone. 6 THEORY AND HR ADMINISTRATION 1) Resource-based view of organizations describes them as bundles of resources Physical capital includes an organization’s technology, geographic locations, physical assets (e.g., plants, money), and access to raw material. Organizational capital includes its formal reporting structure, its coordinating, planning, and organizing systems, and its internal and external group relationships. Human capital includes the experience, capabilities, relationships, and insights of individual employees. Taken together, these resources are combined and managed to determine an organization’s opportunity to win sustainable competitive advantage in the marketplace. 7 THEORY AND HR ADMINISTRATION 2) Transaction cost theory Organizations can choose to purchase the goods and services they need in the competitive marketplace or make those goods and services internally Transaction costs are the expenses associated with an economic transaction, whether internal or external “Make or buy” economic choice facing rational economic actors 8 SELF SERVICE PORTALS Employee self-service (ESS) HR portals Electronic means for a company’s employees to access its HR services and information Provide a single sign-on capability for employees, who can individually complete transactions for their personal data Manager self-service (MSS) portals Specialized ESS portal designed to allow managers to view extensive information about their subordinates and perform many of their administrative tasks electronically MSS is not limited to HR functions and may also include budgeting and tracking, reporting, and staff policy and procedure development 9 SAMPLE EMPLOYEE SELF SERVICE FUNCTIONALITY 10 ADVANTAGES AND DISADVANTAGES OF SELF SERVICE PORTALS Benefits Disadvantages Improved speed and quality of service to May increase the possibility of security employees and managers breaches and the associated negative Simplified routine inquiries and changes. outcomes, like identity theft Enhance employee satisfaction by Can lead to misuse of such information by permitting employees to control when and others in the organization where such access activities occur, May feel their privacy is invaded when empowering employees, increasing their organizations fail to limit access to productivity, especially for those who personal data travel frequently, and offering privacy Unions may argue that employees are Help reduce the number of transactions “doing HR work” for HR employees and, correspondingly, overall HR costs 11 SHARED SERVICE CENTERS (SSC) Shared services is a collaborative strategy whereby [one or more] staff functions of a firm are concentrated in a semi-autonomous organization and managed like a business unit... to promote greater efficiency, value generation and improved service for internal customers View itself as an independent business unit offering products Control vs flexibility To demonstrate its value to the organization, SSCs should establish measures/metrics that demonstrate the following: Customer satisfaction levels Productivity Cost controls Quality 12 ADVANTAGES AND DISADVANTAGES OF SSC Advantages Focus on delivering timely, high-quality transactions; focus on customer satisfaction; encourage efficiency and standardization; facilitate development of measures of efficiency, quality, and customer responsiveness Disadvantages Costs overriding long-term quality; lack of synergy; power shifts between depts; depersonalization (technology replacing people touch) 13 OUTSOURCING AND HRIS Practice of contracting with vendors to perform one or more HR services & activities Outsourcing contracts should include specific pricing agreements, expected performance and associated measures and terms and conditions Ensuring that the organization is adequately protected from incompetent or unethical outsourcing providers. 14 REASONS TO OUTSOURCE HRIS Discrete HRO through niche third-party providers. This outsourcing involves having specialized external firms deal only with a particular HR function Multiprocess HRO, also known as comprehensive or blended services outsourcing, involves outsourcing to niche, third-party providers all of one or more related HR functions, for example, recruitment and selection or various retirement plans administration Total HRO is the third type of outsourcing approach and involves having all, or nearly all, HR functions handled by one or more external vendors. 15 EVALUATION OF OUTSOURCING Advantages Disadvantages Cost savings Loss of control Performance improvements Strategic benefits realized by very few Flexibility Loss of knowledge or internal expertise Focus on core activities Loss of jobs – insecurity Managing costs Backsourcing: To bring functionality back in-house Costs of mismanagement can be expensive, as firms pay to reorganize twice 16 OFFSHORING HR outsourcing with vendors outside the country Enabled by broadband and Internet technologies Fueled by global competition Primarily utilized to reduce costs and increase profits 17 TYPES OF OFFSHORING Offshore ownership Opening a new subsidiary in the foreign country Entering into a joint venture with an existing firm in that country Purchasing an existing firm Offshore outsourcing Traditional contractual relationship with an existing firm Offshore ownership is riskier than simple offshore outsourcing 18 THINGS TO CONSIDER BEFORE OFFSHORING Ready availability of necessary employee knowledge, skills, and abilities such as language Information and communication systems compatibility with HRIS Government regulations and legal employment requirements such as wage laws Political stability of the country for facility and employee security Cultural differences 19  REFERENCES Human Resource Information Systems 5th Edition, Chapter 6 2 0