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Introduction
Evolution of Human Resource
Management and Human Resource
Information Systems: The Role of
Information Technology
1
HRM – An Introduction
 Human Resources is an organizational function that deals
with issues such as recruitment and selection, training,
appraisal, compensation and performance management of
the employee.
 Human beings are also considered to be resources
because it is the ability of humans that helps to change
the gifts of nature into valuable resources. While taking
into account human beings as resources, the following
things have to be kept in mind:
 The size of the population
 The quality
 "The people that staff and operate an organization"; as
contrasted with the financial and material resources of an
organization.
2
ACTIVITIES OF HR
Transactional
Traditional
Transformational
Wright, McMahan, Snell, & Gerhart, 1998
3
HR ACTIVITIES & TIME SPENT
 Transactional (65-75%)
 Benefits Administration, Record Keeping,
Employee Services
 Traditional (15-30%)
 Recruitment, Selection, Training, Performance
Management, Compensation, Employee Relations
 Transformational (5-15%)
 Knowledge Management, Strategic Redirection
And Renewal, Cultural Change, Management
Development
 Added Value
4
NEED FOR HRIS:
THE EXTERNAL ENVIRONMENT
 Government Regulations
 EEO
 Employee Composition
 Increased Records and Reports
 Court Decisions
 New Laws
5
EXTERNAL ENVIRONMENT
 Technology
 Lans, Portals
 Labor Market
 Human Resources Planning
 External Environmental Scanning
 Societal Concerns
 Employee Information Requests
 Privacy Issues
 Community Awareness
6
EXTERNAL ENVIRONMENT
 Competition
 Compensation Management
 Labor Market Surveys
 Compensation Planning
7
HISTORICAL ERAS IN HRIS
 Pre-world War II
 Reactive, Caretaker Activity
 Record Keeping Manual
 Not Major Part Of Business
8
POSTWAR: 1945-1960
 Importance Of Employee Morale
 HR Part Of Operating Costs, Not In Mainstream
 Payroll Automation
 R & D In Selection
 Mainframe Usage By Defense Industry In HR
9
SOCIAL ISSUES PERIOD: 1963-1980
 Social Issues Legislation Impact HR
 Protector Of Employees
 Advent Of MIS
 Paperwork & Reporting Increases
 HR Now More In Mainstream Of Operating
Budget
10
COST-EFFECTIVENESS: 1980-1990
 HR Cost Justify Activities
 Increased Role Due To Paperwork Required In
Legislation
 Microcomputers & Software Advances
 HRIS Capabilities Lower In Cost
 Increased Emphasis On R&D
 Utility Analysis Critical
11
TECHNOLOGY ADVANCEMENT ERA
(90S-TODAY)
 HRIS Commonplace- High Technology (Internet)
 Microcomputer Capacity Increases
 HR Main Part Of Strategy Planning - Strategic
Partner
 Globalization Of Companies
12
THE EVOLUTION OF STRATEGIC HRM
 Contingency Perspective And Fit
 Resource - Based View Of The Firm And Social Capital,
 HR System Components And Structure
 Expanding The Scope Of HRM Beyond The Focal Organization
 Achieving HR Implementation And Execution, By Translating The
Rhetoric Into Practice,
 Measuring The Outcomes Of SHRM By (E.G., Balanced Scorecard
Approach)
 Research Methodological Issues That Stress The Importance Of
Evidence Based Management
 Adoption And Use Of HR Metrics
 Application Of “Six Sigma" Processes To HRM.
13
INTERFACE BETWEEN HR AND
TECHNOLOGY
 IT As A Tool Not A Substitute For People
 How Might The Changes In Technology
Impact The Role And Perceptions Of HR
Departments And Professionals?
 How Might Technology Aid In The
Advancement Of Strategic HRM?
14
HRIS - Introduction
 Human Resource Information System (HRIS) is a systematic
way of storing data and information for each individual
employee to aid planning, decision making, and submitting
of returns and reports to the external agencies.
 It merges HRM as a discipline and in particular its basic HR
activities and processes with the information technology
field.
 It can be used to maintain details such as employee
profiles, absence reports, salary admin. and various kinds of
reports.
15
HRIS is a method by which an organization collects,
analyses and reports information about people
and jobs. It is basically a data based system that
offers important information about employees in a
central and accessible location. The data should
be easily retrievable to be used to facilitate
decision making processes. This also includes data
security and personal privacy which is both an
ethical and moral issue.
16
HRIS
 Human Resources Information System (HRIS)
 Computerized System That Provides Current And
Accurate Data For Purposes Of Control And Decision
Making.
 Benefits:
 Store And Retrieve Of Large Quantities Of Data.
 Combine And Reconfigure Data To Create New Information.
 Institutionalization Of Organizational Knowledge.
 Easier Communications.
 Lower Administrative Costs, Increase Productivity And Response
Times.
17
HRIS DEFINITION
 Not Just Hardware-software
 Includes People, Forms, Policies, Procedures, And
Data
 Purpose – Provide Service
 Variety Of Users
 Strategic
 Tactical
 Operational Decisions
18
HRIS - HR Records – HR Accounting – HR
Audit –- Maintaining International
Employees
19
1. HRIS can process, store and retrieve enormous volumes of
data in economical way
2. The records can be updated quickly.
3. The accuracy is high
4. HRIS can reduce fragmentation and duplication of data.
5. Information/ data can be easily manipulated, merged and
disaggregated in response to special and complex demands
and presented promptly.
Benefits
20
A computerised HRIS is designed to monitor, control
and influence movement of people from their joining
to leaving the organization. It consist of :
1. Recruitment information
2. Personnel administration information
3. Manpower Planning Information
4. Training information
5. Health and safety information
6. Appraisal information
7. Payroll information.
8. Personnel research information.
21
Human resource Accounting is the process of developing
financial assessments for people within the
organisation and society and the monitoring of these
assessment through time. It deals with the economic
results of investments in people. It involves:
1. Measurement and valuation of human resources
2. 2. communicating the relevant information to the
management and external users.
HR Accounting
22
HR accounting is defined as measurement and reporting of the
cost and value of people as organizational resource. Ti
involves accounting for investment in people and their
replacement cost as well as accounting for the economic
values of people to the organization.
Is HR an asset? The objections are:
1. People are not owned like other physical properties
2. There is no assurance of future benefits from human
resource.
3. It cannot be recognized by tax law.
23
1. HRA provides useful information to take decisions
to chose between recruitment and promotion,
transfer and retention etc.
2. It highlights strength and weaknesses of
employees
3. Evaluate effectiveness of HR policies and
practices.
4. In mergers and acquisition
5. Helps to control HR cost.
Advantages
24
Audit is defined as the examination and evaluation of
policies, procedures and practices in all phases of a
business to achieve the most effective
administration of the organization.
The HR audit may be defined as the analysis and
evaluation of the personnel policies, procedures and
practices to determine the effectiveness of HRM in
an organization. It is a periodic review to measure
the effectiveness of HRM and to determine the steps
required for more effective utilization of human
resources.
HR Audit
25
The HR audit includes audit of various processes like
 Recruitment & Selection
 job analysis
 Training
 management development
 promotions and transfers
 labor relations,
 employee benefits
 wage and salary
 Administration
 collective bargaining
 industrial relations
 communication
etc.. The areas like performance appraisal, employee mobility and
grievances are also included in its scope.
HR audit includes audit of various processes
26
Specifically HR audit covers following areas:-
1. Audit of HR functions
2. Audit of managerial compliance
3. Audit of HR climate
4. Audit of corporate strategies
The Audit of Human Resource Function:
This involves audit of all HR activities. For each activity,
the auditors must take following steps:-
a. Determine the objective of each activity.
b. Identify who is responsible for its performance
c. Review the performance.
d. Develop an action plan to correct deviations, if any,
between results and goals.
e. Follow up the action plan.
27
- I
- dentification of contribution of HR to the organization.
- Improves professional image of HR deptt.
- Clarification of HR deptt’s, duties and responsibilities.
- Stimulation of uniformity of HR policies and practices
- Finding critical personnel problems.
- Insuring timely compliance with legal requirements.
- Reduction of HR costs through more effective personnel
procedures.
- A thorough review of the department’s information
system.
Benefits of Human Resource Audit
28
BIGGEST ADVANTAGES OF HRIS
Reduced Manual Handling And Paperwork
Or
Enables Greater Impact Of Paperwork On Business
Operation
 Reports
 Analysis
 Negotiations
 Communications
29
HRIS – Why it is needed?
 Storing information and data for each individual
employee.
 Providing a basis for planning, decision making,
controlling and other human resource functions.
 Meeting daily transactional requirement such as
marking absent and present and granting leave.
 Supplying data and submitting returns to
government and other statutory agencies.
30
HRIS – Why it is needed?
 Building organizational capabilities
 Job design and organizational structure
 Increasing size of workforce
 Technological advances
 Computerized information system
 Changes in legal environment
31
HRIS – Appl. & Utilities
 Personnel administration - It will encompass
information about each employee, such as name
address, personal details etc.
 Salary administration - Salary review procedure are
important function of HRM, a good HRIS system must
be able to perform what if analysis and present the
reports Of changes.
 Leave and absence recording — Essentially be able to
provide comprehensive method of controlling
leave/absences.
 Skill inventory - It is also used to store record of
acquired skills and monitor the skill database both 32
HRIS – Appl. & Utilities
 Performance appraisal — The system should record individual
employee performance, appraisal data, such as due date of
appraisal, scores etc.
 Human resource planning — HRIS should record details of the
organisational requirements in terms of positions
 Recruitment — Record details of recruitment activities such as
cost and method of recruitment and time to fill the position etc.
 Career planning - System must be able to provide with
succession plans reports to identify which employee have been
earmarked for which position.
 Collective bargaining — A computer terminal can be positioned
in the conference room linked to database. This will expedite
negotiations by readily providing up to date data based on facts
and figures and not feelings and fictions.
33
SYSTEM DEVELOPMENT LIFE CYCLE
(SDLC)
 Five General Phases:
(1) Planning
(2) Analysis
(3) Design
(4) Implementation
(5) Maintenance
 Begins With Planning And Ends With
Continuous Evaluation
34

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Introduction 1.ppt

  • 1. Introduction Evolution of Human Resource Management and Human Resource Information Systems: The Role of Information Technology 1
  • 2. HRM – An Introduction  Human Resources is an organizational function that deals with issues such as recruitment and selection, training, appraisal, compensation and performance management of the employee.  Human beings are also considered to be resources because it is the ability of humans that helps to change the gifts of nature into valuable resources. While taking into account human beings as resources, the following things have to be kept in mind:  The size of the population  The quality  "The people that staff and operate an organization"; as contrasted with the financial and material resources of an organization. 2
  • 4. HR ACTIVITIES & TIME SPENT  Transactional (65-75%)  Benefits Administration, Record Keeping, Employee Services  Traditional (15-30%)  Recruitment, Selection, Training, Performance Management, Compensation, Employee Relations  Transformational (5-15%)  Knowledge Management, Strategic Redirection And Renewal, Cultural Change, Management Development  Added Value 4
  • 5. NEED FOR HRIS: THE EXTERNAL ENVIRONMENT  Government Regulations  EEO  Employee Composition  Increased Records and Reports  Court Decisions  New Laws 5
  • 6. EXTERNAL ENVIRONMENT  Technology  Lans, Portals  Labor Market  Human Resources Planning  External Environmental Scanning  Societal Concerns  Employee Information Requests  Privacy Issues  Community Awareness 6
  • 7. EXTERNAL ENVIRONMENT  Competition  Compensation Management  Labor Market Surveys  Compensation Planning 7
  • 8. HISTORICAL ERAS IN HRIS  Pre-world War II  Reactive, Caretaker Activity  Record Keeping Manual  Not Major Part Of Business 8
  • 9. POSTWAR: 1945-1960  Importance Of Employee Morale  HR Part Of Operating Costs, Not In Mainstream  Payroll Automation  R & D In Selection  Mainframe Usage By Defense Industry In HR 9
  • 10. SOCIAL ISSUES PERIOD: 1963-1980  Social Issues Legislation Impact HR  Protector Of Employees  Advent Of MIS  Paperwork & Reporting Increases  HR Now More In Mainstream Of Operating Budget 10
  • 11. COST-EFFECTIVENESS: 1980-1990  HR Cost Justify Activities  Increased Role Due To Paperwork Required In Legislation  Microcomputers & Software Advances  HRIS Capabilities Lower In Cost  Increased Emphasis On R&D  Utility Analysis Critical 11
  • 12. TECHNOLOGY ADVANCEMENT ERA (90S-TODAY)  HRIS Commonplace- High Technology (Internet)  Microcomputer Capacity Increases  HR Main Part Of Strategy Planning - Strategic Partner  Globalization Of Companies 12
  • 13. THE EVOLUTION OF STRATEGIC HRM  Contingency Perspective And Fit  Resource - Based View Of The Firm And Social Capital,  HR System Components And Structure  Expanding The Scope Of HRM Beyond The Focal Organization  Achieving HR Implementation And Execution, By Translating The Rhetoric Into Practice,  Measuring The Outcomes Of SHRM By (E.G., Balanced Scorecard Approach)  Research Methodological Issues That Stress The Importance Of Evidence Based Management  Adoption And Use Of HR Metrics  Application Of “Six Sigma" Processes To HRM. 13
  • 14. INTERFACE BETWEEN HR AND TECHNOLOGY  IT As A Tool Not A Substitute For People  How Might The Changes In Technology Impact The Role And Perceptions Of HR Departments And Professionals?  How Might Technology Aid In The Advancement Of Strategic HRM? 14
  • 15. HRIS - Introduction  Human Resource Information System (HRIS) is a systematic way of storing data and information for each individual employee to aid planning, decision making, and submitting of returns and reports to the external agencies.  It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field.  It can be used to maintain details such as employee profiles, absence reports, salary admin. and various kinds of reports. 15
  • 16. HRIS is a method by which an organization collects, analyses and reports information about people and jobs. It is basically a data based system that offers important information about employees in a central and accessible location. The data should be easily retrievable to be used to facilitate decision making processes. This also includes data security and personal privacy which is both an ethical and moral issue. 16
  • 17. HRIS  Human Resources Information System (HRIS)  Computerized System That Provides Current And Accurate Data For Purposes Of Control And Decision Making.  Benefits:  Store And Retrieve Of Large Quantities Of Data.  Combine And Reconfigure Data To Create New Information.  Institutionalization Of Organizational Knowledge.  Easier Communications.  Lower Administrative Costs, Increase Productivity And Response Times. 17
  • 18. HRIS DEFINITION  Not Just Hardware-software  Includes People, Forms, Policies, Procedures, And Data  Purpose – Provide Service  Variety Of Users  Strategic  Tactical  Operational Decisions 18
  • 19. HRIS - HR Records – HR Accounting – HR Audit –- Maintaining International Employees 19
  • 20. 1. HRIS can process, store and retrieve enormous volumes of data in economical way 2. The records can be updated quickly. 3. The accuracy is high 4. HRIS can reduce fragmentation and duplication of data. 5. Information/ data can be easily manipulated, merged and disaggregated in response to special and complex demands and presented promptly. Benefits 20
  • 21. A computerised HRIS is designed to monitor, control and influence movement of people from their joining to leaving the organization. It consist of : 1. Recruitment information 2. Personnel administration information 3. Manpower Planning Information 4. Training information 5. Health and safety information 6. Appraisal information 7. Payroll information. 8. Personnel research information. 21
  • 22. Human resource Accounting is the process of developing financial assessments for people within the organisation and society and the monitoring of these assessment through time. It deals with the economic results of investments in people. It involves: 1. Measurement and valuation of human resources 2. 2. communicating the relevant information to the management and external users. HR Accounting 22
  • 23. HR accounting is defined as measurement and reporting of the cost and value of people as organizational resource. Ti involves accounting for investment in people and their replacement cost as well as accounting for the economic values of people to the organization. Is HR an asset? The objections are: 1. People are not owned like other physical properties 2. There is no assurance of future benefits from human resource. 3. It cannot be recognized by tax law. 23
  • 24. 1. HRA provides useful information to take decisions to chose between recruitment and promotion, transfer and retention etc. 2. It highlights strength and weaknesses of employees 3. Evaluate effectiveness of HR policies and practices. 4. In mergers and acquisition 5. Helps to control HR cost. Advantages 24
  • 25. Audit is defined as the examination and evaluation of policies, procedures and practices in all phases of a business to achieve the most effective administration of the organization. The HR audit may be defined as the analysis and evaluation of the personnel policies, procedures and practices to determine the effectiveness of HRM in an organization. It is a periodic review to measure the effectiveness of HRM and to determine the steps required for more effective utilization of human resources. HR Audit 25
  • 26. The HR audit includes audit of various processes like  Recruitment & Selection  job analysis  Training  management development  promotions and transfers  labor relations,  employee benefits  wage and salary  Administration  collective bargaining  industrial relations  communication etc.. The areas like performance appraisal, employee mobility and grievances are also included in its scope. HR audit includes audit of various processes 26
  • 27. Specifically HR audit covers following areas:- 1. Audit of HR functions 2. Audit of managerial compliance 3. Audit of HR climate 4. Audit of corporate strategies The Audit of Human Resource Function: This involves audit of all HR activities. For each activity, the auditors must take following steps:- a. Determine the objective of each activity. b. Identify who is responsible for its performance c. Review the performance. d. Develop an action plan to correct deviations, if any, between results and goals. e. Follow up the action plan. 27
  • 28. - I - dentification of contribution of HR to the organization. - Improves professional image of HR deptt. - Clarification of HR deptt’s, duties and responsibilities. - Stimulation of uniformity of HR policies and practices - Finding critical personnel problems. - Insuring timely compliance with legal requirements. - Reduction of HR costs through more effective personnel procedures. - A thorough review of the department’s information system. Benefits of Human Resource Audit 28
  • 29. BIGGEST ADVANTAGES OF HRIS Reduced Manual Handling And Paperwork Or Enables Greater Impact Of Paperwork On Business Operation  Reports  Analysis  Negotiations  Communications 29
  • 30. HRIS – Why it is needed?  Storing information and data for each individual employee.  Providing a basis for planning, decision making, controlling and other human resource functions.  Meeting daily transactional requirement such as marking absent and present and granting leave.  Supplying data and submitting returns to government and other statutory agencies. 30
  • 31. HRIS – Why it is needed?  Building organizational capabilities  Job design and organizational structure  Increasing size of workforce  Technological advances  Computerized information system  Changes in legal environment 31
  • 32. HRIS – Appl. & Utilities  Personnel administration - It will encompass information about each employee, such as name address, personal details etc.  Salary administration - Salary review procedure are important function of HRM, a good HRIS system must be able to perform what if analysis and present the reports Of changes.  Leave and absence recording — Essentially be able to provide comprehensive method of controlling leave/absences.  Skill inventory - It is also used to store record of acquired skills and monitor the skill database both 32
  • 33. HRIS – Appl. & Utilities  Performance appraisal — The system should record individual employee performance, appraisal data, such as due date of appraisal, scores etc.  Human resource planning — HRIS should record details of the organisational requirements in terms of positions  Recruitment — Record details of recruitment activities such as cost and method of recruitment and time to fill the position etc.  Career planning - System must be able to provide with succession plans reports to identify which employee have been earmarked for which position.  Collective bargaining — A computer terminal can be positioned in the conference room linked to database. This will expedite negotiations by readily providing up to date data based on facts and figures and not feelings and fictions. 33
  • 34. SYSTEM DEVELOPMENT LIFE CYCLE (SDLC)  Five General Phases: (1) Planning (2) Analysis (3) Design (4) Implementation (5) Maintenance  Begins With Planning And Ends With Continuous Evaluation 34