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Deliverable 5 - Hypothesis Tests for Two Samples
Competency
Formulate and evaluate hypothesis tests for population
parameters based on sample statistics using both Critical
Regions and P-Values, and be able to state results in a non-
technical way that can be understood by consumers of the data
instead of statisticians.
Dealing with Two Populations
Inferential statistics involves forming conclusions about a
population parameter. We do so by constructing confidence
intervals and testing claims about a population mean and other
statistics. Typically, these methods deal with a sample from one
population. We can extend the methods to situations involving
two populations (and there are many such applications). This
deliverable looks at two scenarios.
Concept being Studied
Your focus is on hypothesis tests and confidence intervals for
two populations using two samples, some of which are
independent and some of which are dependent. These concepts
are an extension of hypothesis testing and confidence intervals
which use statistics from one sample to make conclusions about
population parameters. What to Submit
Your research, calculations, and analysis should be presented on
the spreadsheet
provided.
Tomywife,Barbara,andmysonsSean,Colin,andTimothy,
andespeciallytomygranddaughter,Isabella–M.J.K.
Tomywife,Kelley,andmydaughtersRachelandKatherine–R.D.J.
Copyright©2015bySAGEPublications,Inc.
Allrightsreserved.Nopartof
thisbookmaybereproducedorutilizedinanyformorbyanymeans,ele
ctronicormechanical, including
photocopying,recording,orbyanyinformationstorageandretrievals
ystem,withoutpermissioninwritingfromthepublisher.
PrintedintheUnitedStatesofAmerica
LibraryofCongressCataloging-in-PublicationData
Humanresourceinformationsystems:basics,applications,andfutur
edirections/[editedby]MichaelJ.Kavanagh,StateUniversityofNew
YorkatAlbany,MohanThite,GriffithUniversity,RichardD.Johnson
,StateUniversityofNewYorkatAlbany.—Thirdedition.
pagescm
Includesbibliographicalreferencesandindex.
ISBN978-1-4833-0693-3(pbk.:alk.paper)
1.Personnelmanagement—
Informationtechnology.2.Personnelmanagement—
Dataprocessing.I.Kavanagh,MichaelJ.II.Thite,Mohan.
III.Johnson,RichardD.
HF5549.5.D37H862015
658.300285—dc232013029735
Thisbookisprintedonacid-freepaper.
141516171810987654321
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Contents
Preface
PARTI:INTRODUCTIONTOHUMANRESOURCEINFORMATI
ONSYSTEMS
(HRIS):ASYSTEMSPERSPECTIVE
1.EvolutionofHumanResourceManagementandHumanResourceIn
formationSystems:The
RoleofInformationTechnology
MichaelJ.KavanaghandRichardD.Johnson
Editors’Note
ChapterObjecties
HRISinAction
Introduction
HistoricalEvolutionofHRMandHRIS
Pre–WorldWarII
Post–WorldWarII(1945–1960)
SocialIssuesEra(1963–1980)
Cost-EffectivenessEra(1980totheEarly1990s)
TechnologicalAdvancementEraandtheEmergenceofStrategicHR
M(1990toPresent)
HRActivities
InterfaceBetweenHRandTechnology
APrimeronHRIS
WhatIsanHRIS?
e-HRMandHRIS
WhyDoWeNeedHRIS?
DifferentTypesofHRIS
SystemDevelopmentProcessforanHRIS
AModelofOrganizationalFunctioning
ThemesoftheBook
Summary
KeyTerms
DiscussionQuestions
CaseStudy:PositionDescriptionandSpecificationforanHRISAdmi
nistrator
HRISAdministrator
PositionSummary
PrimaryFunction
EssentialDutiesandResponsibilities
Requirements
Qualifications
CaseStudyQuestions
Note
References
2.DatabaseConceptsandApplicationsinHumanResourceInformati
onSystems
JanetH.MarlerandBarryD.Floyd
Editors’Note
ChapterObjectives
Introduction
Data,Information,andKnowledge
DatabaseManagementSystems
EarlyDBMSs
RelationalDBMSs
DataSharingBetweenDifferentFunctions
DataSharingBetweenDifferentLevels
DataSharingAcrossLocations
KeyRelationalDatabaseTerminology
EntitiesandAttributes
Tables
Relationships,PrimaryKeys,andForeignKeys
Queries
Forms
Reports
IntroductiontoMSAccess
DesigninganMSAccessDatabase
HRDatabaseApplicationUsingMSAccess
OtherHRDatabases
DataIntegration:DataWarehouses,BusinessIntelligence,andData
Mining
Summary
KeyTerms
DiscussionQuestions
CaseStudy
Notes
References
3.SystemsConsiderationsintheDesignofaHumanResourceInforma
tionSystem:Planningfor
Implementation
MichaelD.BedellandMichaelL.Canniff
Editors’Note
ChapterObjectives
HRISinAction
Introduction
HRISCustomers/Users:DataImportance
Employees
Nonemployees
ImportantData
HRISArchitecture
TheHRIS“Dinosaur”
Client-Server(Two-Tier)Architecture
Three-TierArchitecture
N-TierArchitectureWithEnterpriseResourcePlanning
CloudComputing—BacktotheFuture!?
SecurityChallenges
BestofBreed
Recruitment
TimeCollection
Payroll
Benefits
PlanningforSystemImplementation
Summary
KeyTerms
DiscussionQuestions
CaseStudy:VignetteRevisited
NewInformationfortheCase:Part1
NewInformationfortheCase:Part2
NewInformationfortheCase:Part3
NewInformationfortheCase:Part4
CaseStudyQuestions
References
4.TheSystemsDevelopmentLifeCycleandHRISNeedsAnalysis
LisaM.PlantamuraandRichardD.Johnson
Editors’Note
ChapterObjectives
HRISinAction
Introduction
TheSystemsDevelopmentLifeCycle(SDLC)
Analysis
NeedsAnalysis
1.NeedsAnalysisPlanning
2.Observation
3.Exploration
4.Evaluation
5.Reporting
Summary
KeyTerms
DiscussionQuestions
CaseStudy:“PlanningtheNeedsofOtherOrganizations”
CaseStudyQuestions
Note
References
RecommendedReadings
5.SystemDesignandAcquisition
RichardD.JohnsonandJamesH.Dulebohn
Editors’Note
ChapterObjectives
HRISinAction
Introduction
DesignConsiderationsDuringtheSystemsDevelopmentLifeCycle
LogicalDesign
TwoWaystoViewanHRIS:DataVersusProcess
LogicalProcessModelingWithDataFlowDiagrams
CreatingandUsingtheDFD
PhysicalDesign
WorkingWithVendors
VendorSelection
AssessingSystemFeasibility
TechnicalFeasibility
OperationalFeasibility
LegalandPoliticalFeasibility
EconomicFeasibility
Summary
KeyTerms
DiscussionQuestions
CaseStudy
CaseStudyQuestions
Notes
References
6.ProjectManagementandHumanResourceManagementAdvicefor
HumanResource
InformationSystemsImplementation
MichaelJ.Kavanagh
Editors’Note
ChapterObjectives
HRISinAction
Introduction
ProjectManagementCooperation
TheITPerspective
ProjectManagementProcesses
ProjectManagementApproachesandTools
GeneralITFactorsAffectingPMSuccess
TheHumanResourceManagementPerspective
IdentificationoftheSteeringCommitteeandProjectCharter
ConfiguringthePMTeam
IdentificationofAvailableResourcesandConstraints
ControllingProjectCreep
SelectionoftheImplementationTeam
SoftwareImplementation
TrainingandDocumentation
CriticalSuccessFactorsforITandHRMIssues
Summary
KeyTerms
DiscussionQuestions
CaseStudy:ImplementinganHRIS
CaseStudyQuestions
Note
References
PARTII:HRISEFFECTIVENESSMEASURESANDHRMADVICE
FORHRIS
IMPLEMENTATION
7.HRMetricsandWorkforceAnalytics
KevinD.CarlsonandMichaelJ.Kavanagh
Editors’Note
ChapterObjectives
HRISinAction
Introduction
ABriefHistoryofHRMetricsandAnalytics
LimitationsofTraditionalHRMetrics
ContemporaryHRMetricsandWorkforceAnalytics
UsingHRMetricsandWorkforceAnalytics
HRMetrics,WorkforceAnalytics,andOrganizationalEffectiveness
ACommonandTroublesomeView
BetterProblemSolvingandDecisionMaking
OpportunityDomainsofHRExpertise
HRProcessEfficiency
OrganizationalEffectiveness
StrategicRealignment
Measurement,Metrics,andAnalyticsBasics
GettingStarted
TheRoleof“Why?”
PuttingHRMetricsandAnalyticsDatainContext
ReportingWhatWeFind
HRDashboards
Infographs
UsefulThingstoRememberAboutHRMetricsandAnalytics
Don’t“DoMetrics”
BiggerIsNotAlwaysBetter
HRMetricsandAnalyticsIsaJourney—NotaDestination
BeWillingtoLearn
AvoidtheTemptationtoMeasureEverythingAggressively
HRMetricsandtheFuture
Summary
KeyTerms
DiscussionQuestions
CaseStudy
CaseStudyQuestions
Notes
References
8.CostJustifyingHRISInvestments
KevinD.CarlsonandMichaelJ.Kavanagh
Editors’Note
ChapterObjectives
HRISinAction
AlternateHRISinAction
Introduction
JustificationStrategiesforHRISInvestments
EvolutionofHRISJustification
ApproachestoInvestmentAnalysesMakeaDifference:SomeGuideli
nes
HRISCost-BenefitAnalysis
IdentifyingSourcesofValueforBenefitsandCosts
DirectBenefits
IndirectBenefits
ImplementationCosts
EstimatingtheValueofIndirectBenefits
EstimatingIndirectBenefitMagnitude
DirectEstimation
Benchmarking
InternalAssessment
MappingIndirectBenefitstoRevenuesandCosts
MethodsforEstimatingtheValueofIndirectBenefits
AverageEmployeeContribution
EstimatingtheTimingofBenefitsandCosts
TheRoleofVarianceinEstimates
AvoidingCommonProblems
PackagingtheAnalysisforDecisionMakers
Conclusion
Summary
KeyTerms
DiscussionQuestions
CaseStudy
CaseStudyQuestions
Notes
References
9.ChangeManagement:Implementation,Integration,andMaintena
nceoftheHumanResource
InformationSystem
RomualdA.StoneandRichardD.Johnson
Editors’Note
ChapterObjectives
HRISinAction
IntroductiontotheManagementofChange
OrganizationalDevelopment
ChangeManagement
TheChangeManagementProcess:ScienceandArt
ModelsoftheChangeProcess
OverviewofOrganizationalChange
SelectedChangeModels
Action-ResearchModel
Lewin’sChangeModel
ChangeEquationFormula
Kotter’sProcessofLeadingChange
ImportantRemindersRegardingChangeModels
WhyDoSystemFailuresOccur?
Leadership
Planning
ChangeManagement
Communication
Training
OrganizationalandIndividualIssuesinHRISImplementation
CulturalIssues
ResistancetoChange
UserAcceptance
Summary
KeyTerms
DiscussionQuestions
CaseStudy:TheGrantCorporation
CaseStudyQuestions
Note
References
PARTIII:HUMANRESOURCEINFORMATIONSYSTEMSAPPLI
CATIONS
10.HRAdministrationandHumanResourceInformationSystems
LindaC.Isenhour
Editors’Note
ChapterObjectives
HRISinAction
Introduction
TechnologySupportforJobAnalysis
ApproachesandTechniques
HRISApplications
TheHRISEnvironmentandOtherAspectsofHRAdministration
HRMAdministrationandOrganizingApproaches
Service-OrientedArchitectureandeXtensibleMarkupLanguage
AdvantagesofXML-EnhancedSOA
TheoryandHRAdministration
Self-ServicePortalsandHRIS
Shared-ServiceCentersandHRIS
OutsourcingandHRIS
OffshoringandHRIS
SummaryofHRAdministrationApproaches
LegalComplianceandHRAdministration
HRAdministrationandEqualEmploymentOpportunity
U.S.CivilRightsActof1964,TitleVII,andtheEEO-1Report
EEO-1Report(StandardForm100)
EEO-1andHRIS
OccupationalSafetyandHealthActRecordKeeping
OSHAForm300(LogofWork-
RelatedInjuriesandIllnesses)andHRIS
Technology,HRAdministration,andMandatedGovernmentalRepor
ting
SummaryofGovernment-
MandatedReportsandPrivacyRequirements
HRStrategicGoalAchievementandtheBalancedScorecard
HRMandtheBalancedScorecard
HRScorecardandBalancedScorecardAlignment
Summary
KeyTerms
DiscussionQuestions
CaseStudy:TheCalleetaCorporation
CaseStudyQuestions
Note
References
11.TalentManagement
KevinM.JohnsandMichaelJ.Kavanagh
Editors’Note
ChapterObjectives
HRISinAction
Introduction
DefiningTalentManagement
ImportanceofTalentManagement
TheTalentManagementLifeCycle
AttributesforTalent
JobAnalysisandHumanResourcePlanning:PartofTM
JobAnalysis
HumanResourcePlanning(HRP)
WorkforceManagement/HumanResourcePlanningwithanHRIS
Long-andShort-TermStrategicImportanceofTalentManagement
TalentManagementandCorporateStrategy
AnticipatingChangeandCreatinganAdaptableWorkforce
TalentManagementandCorporateCulture
TalentManagementandInformationSystems
TheLinkBetweenTalentManagementandHumanResourceInformat
ionSystems
RecruitingTopTalentUsingSocialNetworkingSites(SNSs)
UsingInformationSystemstoSetGoalsandEvaluatePerformance
UsingAnalyticsforTalentManagement
WorkforceAnalyticsandTalentManagement
MeasuringtheSuccessofTalentManagement
Summary
KeyTerms
DiscussionQuestions
CaseStudy:VignetteCaseContinued
CaseStudyQuestions
Note
References
12.RecruitmentandSelectioninanInternetContext
KimberlyM.Lukaszewski,DavidN.Dickter,BrianD.Lyons,andJera
rdF.Kehoe
Editors’Note
ChapterObjectives
HRISinAction
Introduction
RecruitmentandTechnology
TheImpactofOnlineRecruitmentonRecruitmentObjectives
AttributesoftheRecruitingWebSite
RecruitmentStrategiesandSocialNetworking
TheRelationshipofe-RecruitingandHRIS
OnlineRecruitmentGuidelines
SelectionandTechnology
WhatAreSelectionTestsandAssessments,andWhyAreTheyUsed?
WhyIsAssessmentImportantforHRIS?
TechnologyIssuesinSelection
ApplyingHRIStoSelectionandAssessment
DemonstratingtheHRM’sValueWithHRISSelectionApplications
Summary
KeyTerms
DiscussionQuestions
CaseStudy
CaseSupplementalMaterial
CaseStudyQuestions
References
13.TrainingandDevelopment:IssuesandHumanResourceInformati
onSystemsApplications
RalfBurbach
Editors’Note
ChapterObjectives
HRISinAction
Introduction
TrainingandDevelopment:StrategicImplicationsandLearningOrg
anizations
SystemsModelofTrainingandDevelopment
TrainingMetricsandCost-BenefitAnalysis
HRISApplicationsinTraining
HRIS/LearningApplications:LearningManagementSystems
HRIST&DApplications:ImplementationIssues
Summary
KeyTerms
DiscussionQuestions
CaseStudy
CaseStudyQuestions
PracticalExercise
Notes
References
14.PerformanceManagement,Compensation,Benefits,Payroll,and
theHumanResource
InformationSystem
CharlesH.FayandRenatoE.Nardoni
Editors’Note
ChapterObjectives
HRISinAction
Introduction
TheMeaningofWork
PerformanceManagement
Overview
TypicalDataInputs
TypicalReports
DataOutflows
DecisionSupport
Compensation
Overview
TypicalDataInputs
TypicalReports
DataOutflows
DecisionSupport
Benefits
Overview
TypicalDataInputs
TypicalReports
DataOutflows
DecisionSupport
Payroll
Overview
TypicalDataInputs
TypicalReports
DataOutflows
DecisionSupport
Summary
KeyTerms
DiscussionQuestions
CaseStudy:GrandviewGlobalFinancialServices,Inc.
CaseStudyQuestions
References
15.HumanResourceInformationSystemsandInternationalHumanR
esourceManagement
MichaelJ.KavanaghandJohnW.Michel
Editors’Note
ChapterObjectives
HRISinAction
Introduction:IncreasingImportanceofInternationalHumanResour
ceManagement(IHRM)
TypesofInternationalBusinessOperations
GoingGlobal
DifferencesinHRMinMNEs
ManagingDifferentTypesofEmployeesinMNEs
HRProgramsinGlobalOrganizations
InternationalStaffing
SelectingGlobalManagers:ManagingExpatriates
TrainingandDevelopmentofExpatriates
PerformanceAppraisalinMNEs
ManagingInternationalCompensation
HRISApplicationsinIHRM
Introduction
OrganizationalStructureforEffectiveness
IHRM-HRISAdministrativeIssues
HRISApplicationsinMNEs
Summary
KeyTerms
DiscussionQuestions
CaseStudy
CaseStudyQuestions
Notes
References
PARTIV:SPECIALTOPICSINHUMANRESOURCEINFORMATI
ONSYSTEMS
16.HRISPrivacyandSecurity
HumayunZafarandDiannaL.Stone
Editors’Note
ChapterObjectives
HRISinAction
Introduction
EmployeePrivacy
UnauthorizedAccesstoInformation
UnauthorizedDisclosureofInformation
DataAccuracyProblems
StigmatizationProblems
UseofDatainSocialNetworkWebsites
LackofPrivacyProtectionPolicies
ComponentsofInformationSecurity
BriefEvolutionofSecurityModels
SecurityThreats
InformationPolicyandManagement
FairInformationManagementPolicies
EffectiveInformationSecurityPolicies
Summary
KeyTerms
DiscussionQuestions
CaseStudy:PracticalApplicationsofanInformationPrivacyPlan
Scenario1
Scenario2
Scenario3
CaseStudyQuestions
References
17.TheFutureofHumanResourceInformationSystems:EmergingTr
endsinHRMandIT
RichardD.JohnsonandMichaelJ.Kavanagh
Editors’Note
ChapterObjectives
Introduction
FutureTrendsinHRM
HealthCareQuestions
BusinessIntelligence
DemographicWorkforceChanges
GrowingComplexityofLegalCompliance
VirtualizationofWork
FutureTrendsinHRIS
BringYourOwnDevice
SoftwareasaService(SaaS)andtheCloud
Web2.0
SocialNetworking
EnterprisePortals
Open-SourceSoftware
AnEvolvingIndustry
EvolvingHRISTechnologyStrategy
HRISMovestoSmallBusinesses
FutureTrendsinWorkforceTechnologies
Summary
KeyTerms
Notes
References
Appendix:AdditionalResources
InternetResources
AdditionalReadings
Glossary
AuthorIndex
SubjectIndex
AbouttheEditors
AbouttheContributors
PREFACE
ThisthirdeditionofHumanResourceInformationSystems:Basics,A
pplications,andFuture
Directionsiswrittenwithtwogoalsinmind.First,wewishtocontinuet
oimprovethecontentandthe
usefulnessofthecontentforfacultyandstudents.Second,technology
andhumanresourcemanagement
(HRM)arecontinuallyevolvingsothebookmustcontinuetoevolveal
ongwiththesechanges.Although
therehavebeenseveralbooksonHRISpublished,mostauthorshavefo
cusedonlyononeaspector
dimensionoftheHRISfield,forexample,one-HR,Web-
basedHR,orHRISinaglobalcontext.
ThegrowingimportanceofHRISisevidencedbytherecognitionofhu
manresourcemanagement(HRM)
practitioners,academics,andmanagersthatinformationtechnology(
IT)hasbecomeacriticalaspectof
developingandusingHRMprogramstobettermanagethehumancapit
alofanorganization.Thus,a
comprehensiveeducationintheHRMfieldrequirestheknowledgean
dskillsfordeveloping,
implementing,andmaintainingahumanresourceinformationsystem
.Despitethisrecognition,ithasbeen
personallyfrustratingfortheeditorsandchapterauthorstohavetouse
severalbooksandreadingsin
teachinganHRIScourse,becausetherewasnotacurrentorcomprehen
sivetextbookfortheacademic
market.Manyofthebooksintheareaarenowover10yearsold,anddon
otreflectthecurrentstateof
eitherhumanresourcesorHRIS.Asaresult,facultyhavehadtorelyonr
eadings,partsofHRMandIT
textbooks,andhavehadtodevelopmuchoftheirclassroommaterialso
ntheirowntocovertheentire
fieldofHRISintheircourses.Afterthefirsteditionwaspublished,wer
eceivedverycomplimentary
commentsfromfacultywhousedthebookaswellasinformalcommuni
cationswithfacultyintheHRIS
field.Asnoted,thisthirdeditionofHumanResourceInformationSyst
ems:Basics,Applications,and
FutureDirectionsiswrittenwithtwogoalsinmind.First,wewishtoco
ntinuetoimprovethecontent
andtheusefulnessofthebookforfacultyandstudents.Thus,thesearet
hereasonswhywepublishedthe
previouseditionsofthisbook,andremaintheprimaryreasonsforthep
ublicationofthisthirdedition.
Intheprefacetothefirsteditionofthisbook,wenotethatKavanaghetal
.(1990)statedthat“amongthe
mostsignificantchangesinthefieldofhumanresourcesmanagementi
nthepastdecadehasbeentheuse
ofcomputerstodevelopwhathavebecomeknownashumanresourcein
formationsystems(HRIS)”(p.
v).WealsoarguedthattheintroductionofcomputersandIS/ITconcept
stothefieldofHRMduringthe
1980sandearly1990swasarevolutionarychange.Thatis,HRMpaper
systemsinfilecabinetswere
beingreplacedbytheuseofmainframes,PCs,andHRMsoftwaretoco
mputerizetheHRMsystems.To
keepupwiththesetechnologicalchangesintheHRMfunction,compa
nieswereforcedtoadapt,even
thoughitwasquiteexpensive,inordertoremaincompetitiveintheirm
arkets.However,itisour
contentionthatadvancesinHRandITaswellasHRISsincetheearly19
90shavebeenevolutionary,that
is,therehavebeenconstantimprovementsintheHRISfieldinthelast2
0–25years.Fromstand-alone
applicationsonaPC,thefieldofHRISnowhasseentheimplementatio
nofenterpriseresourceplanning
(ERP)configurationsinHRMwithextensiveuseofmanagerandempl
oyeeself-portals.Today’ssystems
areoftenweb-
basedandconnectextensivelywithsocialnetworkingsites.Addition
ally,international
firmshavebeguntousethepowerofanHRIStoexpandtheirbusinesses
becauseofthespeedand
accuracyofanHRIS.
Alongwiththesechangesintechnologyarevolutionhascometothepra
cticeofhumanresources.TheHR
departmentinadoptingthisnewtechnologyhasbecomeamoreimport
antresourceinthemanagementof
organizations.ThechangedroleofHRMhasevolvedtothepointthatH
RMmanagersandprofessionals
arenowseenasstrategicpartners,andsophisticationintheuseofcomp
utertechnologytoimprovethe
deliveryofHRprogramsandactivitiestomanagementhasgrownimm
ensely.Mostcritically,these
changeshavemeantthattherehavebeensignificantadvancesintheuse
ofpeopleresourcesinmanagerial
decisions.Theseadvancesareduetothefactthatpeopleresourcescanb
eaccessedmorerapidlynow
thanin1990,andwithahigherdegreeofaccuracy.ThismarriageofHR
withIT/ISinthedevelopment
andimprovementofanHRIShasincreasedtheabilityofmanagementt
ousepeopleknowledgetomake
betterdecisionsonthehumancapitaloftheirfirmstogainacompetitiv
eadvantageinthemarketplace.
WhatthesechangesmeanforthenewlearnerwithabackgroundinHR
MorIT,whoistryingto
understandtheHRISfield,isthatitisnotsufficienttobeginone’sstudy
withtheimprovedproductsand
processesthathaveoccurredrecently.Forexample,itwouldnotbewis
eorfruitfultobeginone’sstudy
oftheHRISfieldwithafocusonnewtechnologiessuchasservice-
orientedarchitecture(SOA),
enterpriseportals,N-
tierarchitectures,cloudcomputing,ortheuseofWeb2.0inHRM.This
wouldbe
likestartingwithChapter17ofthisbookandthenproceedingbackwar
dthroughthebook.Unfortunately,
manypeopledo,infact,focusonlearningthetechnologicaladvancesi
nHRISwithoutunderstandingthe
basicsfirst.Instead,tobestunderstandhowtoeffectivelyimplementa
nduseanHRIS,itisimportantto
understandtheevolutionalchangestotechnologyandhowthesechan
geshavetransformedHRpractices
(e.g.howHRMmovedfromusingpaperrecordsinfilecabinetstotheco
mputerizationoftheHR
function).Onlyafterunderstandingthesechangeswillthelearnerbea
bletoeffectivelyunderstandhow
advancesintechnologycanhelptheirorganizationmanagetheirHRfu
nctionmoreeffectively.
NewAspectsoftheThirdEdition
First,twochapters(4and16)havebeencompletelyrewrittenbynewau
thors,bothofwhomhave
extensiveknowledgeobtainedbyteaching,researching,andpractici
nginthefieldofHRIS.Inadditionto
addingnewauthors,Sageaskedseveralfacultymemberswhohadadop
tedandusedthepreviousedition
toprovideevaluationsoftheentirebookaswellasofeachchapter.Thei
rrecommendationswerevery
usefulandledustomakeanumberofchanges.
Intermsofthecontentofthisthirdedition,therearenowfourmainparts
ofthebook.Somechaptersfrom
thepreviouseditionweremovedandothersreplacedtomeetthesubjec
tcontentofoneofthefourparts.
Forexample,Chapter8wasmovedtobecomeChapter6becauseitfitbe
tterwiththefirstfivechapters
thanitdidwithChapters7,8,and9.Thedecisiontocreatefournewparts
wasbasedonfeedbackfrom
theanonymousfacultyreviewersaswellasonourpersonaljudgmentt
hatoneofthemajorusesofan
HRISwastofocusbetteronprovidingaccurateandtimelyinformation
formanagerialdecisions,both
strategicandoperational.Eachpartnowfocusesononespecificpartof
HRIS.Asaresult,thefourparts
ofthebookarenow:PartI,IntroductiontoHumanResourceInformatio
nSystems(HRIS):ASystems
Perspective,whichincludesChapters1–
6;PartII,HRISEffectivenessMeasuresandHRMAdvicefor
HRISImplementation,whichcontainsChapter7,8,and9;PartIII:Hu
manResourceInformationSystems
Applications,whichconsistsofChapters10–
15;andPartIV:SpecialTopicsinHumanResource
InformationSystems,whichconsistsofChapters16and17.
Inadditiontocreatingafour-
partbook,wemademajorrevisionstoChapters4,7,8,11,16,and17.
Againtheserevisionswerebasedonfeedbackfromtheanonymousrev
iewersofthepreviousedition,
whichconsistedoffacultyteachinganHRIScourse.Thesechangesrep
resentmoregeneralrevisions
throughoutthethirdedition;thatis,weupdatedthechapterssotheypre
sentasurveyofcurrentknowledge
andpracticeinIT,HRM,andHRIS.Weretainedourfeature,“HRISinA
ction,”whichfacultyindicated
theirstudentsenjoyed.Againbasedonpositivefeedbackfromfaculty,
newfiguresandtableswereadded
toalmosteverychapter.Webelievethatapicturecombinedwithtextco
ntentimprovestheteachingand
learningprocess.Manyofthenewfiguresarescreenshotsfromavariet
yofHRISsoftwarepackages
currentlyinuse.
Newcaseswereaddedtoanumberofthechapters,andwesignificantly
expandedthechapterdiscussion
questions.Wedidthesethingstoimprovethetextasalearningandteac
hingtool—wewantedthetextand
eachchapterwithinittopresentacompletelearningexperience.Thus,
wealsocontinuedtheconsistent
structureacrossallchaptersthatwasintroducedinthepreviousedition
.Chapterscontain,inthe
followingorder:(1)aneditors’note,(2)chapterobjectives,(3)chapte
rcontent,(4)chaptersummary,(5)
alistofkeyterms,(6)chapterdiscussionquestions,and(7)acasewiths
tudentdiscussionquestions.
Thisinternalconsistencyforeachchapterwasestablishedbyemphasi
zingthesamechapterlearning
pointsforthechapterobjectives,chaptersummary,keyterms,andcha
pterdiscussionquestions.Wefelt
thatthiswithin-
chapterconsistencywouldaidthelearningprocessofthestudentsand
aidthefacultyin
identifyingtheimportantcontentofeachchapter.Forthestudent,thek
eytermsareaguide,intheviewof
theeditors,totheimportantaspectsofthechapter,buttheyarenotaglos
sary.Norareallthekeyterms
listedintheglossaryintheappendix,whichhasbeenexpandedandimp
rovedtoincludeadditional
technicalterms.Likewisethewebsitesandadditionalreadingsinthea
ppendixhavebeenexpanded
becauseofrecentchangesinthefield.Indeterminingtomakethesecha
ngesinthebook,thecoeditors
workedtomakethethirdeditionatextbooktheywouldpersonallybeco
mfortableusingtoteachtheir
HRIScourses.
ThirdEditionSummary
Insummary,inthisthirdedition,wehavedescribedthemajoradvances
inthefieldofHRISandthe
relationofHRIStomanagerialdecisionmakingwhile,atthesametime
,exploringthebasicconceptsof
developing,implementing,andmaintaininganHRIS.Thebookrepres
entstheintersectionofthebest
thinkingandconceptsfromthetwofieldsofHRMandIT.Itwastheearl
yintersectionofthesetwofields
thatchangedtheroleofHRinorganizationsfromrecordkeepertostrat
egicpartner.Afterintroducingthe
basicconceptsofanHRIScombinedwithnewapproachestotheoperat
ionofHRMintheorganization,
wethenproceedtothemoreadvanced,andevolutionary,technicalcha
nges.Thebasicphilosophyofthis
bookisthattheintegrationorharmonizationoftechnologywithpeopl
emanagementinanHRISwill
createadistinctcompetitiveadvantagefororganizations.Wehopetha
tyou,thereader,gainthis
understandingandthatyouenjoythisbook.
CompanionWebsite
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availableatwww.sagepub.com/kavanagh3e.
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nalarticlesandwebresourcesat
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Acknowledgments
Manyindividualscontributedinavarietyofwaystoprovideassistanc
einthecompletionofthisbook,
andwewouldliketothankthem.Firstofall,wewouldliketothankallth
eauthorswhocontributed
chapters.Weknowhowdifficultitistowriteachapterforaneditedboo
k,particularlywhentheeditors
havedefinedthephilosophyandapproachtobeused.Inaddition,speci
althanksgotothoseindividuals
whoprovidedinvaluableinsightsthroughtheirevaluationsoftheediti
onofthisbookanditschapters:Dr.
MesutAkdere,UniversityofWisconsin-
Milwaukee;Dr.YvonneBarry,JohnTylerCommunityCollege;
GeryMarkova,W.FrankBartonSchoolofBusiness,WichitaStateUni
versity;MarcS.Miller,Adjunctat
NYU-Poly—
NYCandLongIslandUniversity;FrankJ.Mueller,MSM,MS,Oaklan
dCityUniversity;Jan
MasonRauk,MBA,UniversityofIdaho;andM.ShaneTomblin,Mars
hallUniversity,Collegeof
Business.
Again,wewouldliketothankDiannaStoneoftheUniversityofTexasa
tSanAntonioforhersupportfor
thecreationofthisbook,herassistanceinhelpingfindauthorstowritec
hapters,andherwillingnessto
coauthorChapter16,“HRISPrivacyandSecurity.”Ourthanksgototh
eprofessionalsintheInternational
AssociationforHumanResourceInformationManagement(IHRIM)
andtheSocietyforHumanResource
Management(SHRM)whopatientlylistenedandrespondedtoouride
asregardingthisbook.Wewould
alsoliketothankKatieGuarinofortheunderstandingexhibitedinheri
nteractionswithusaswellasher
suggestionsforresolvingtechnicalissuesweencounteredinwritingt
hebook.Also,thankstoPatricia
Quinlinforherguidanceandpatienceduringthislongprocess.Finally
,wewouldliketothankTerriLee
PaulsenandStephaniePalerminiforcorrectingourgrammarasneede
dandfindingthosemistypedwords
andgrammaticalerrorsthatweredonebygremlins.
Inparticular,wewouldliketothankourfamilies,whoprovidedthewar
mthandsupportweneededwhen
frustrationandwriter’sblockcreptin!
MichaelJ.KavanaghandRichardD.Johnson
http://www.sagepub.com/kavanagh3e
Introductionto
HumanResource
InformationSystems
(HRIS)
ASystemsPerspective
EvolutionofHumanResource
ManagementandHumanResource
InformationSystems
TheRoleofInformationTechnology
MichaelJ.KavanaghandRichardD.Johnson
EDITORS’NOTE
The purpose of this chapter is to provide an introduction to the
fields of human resource
management(HRM)andinformationtechnology(IT),andthecombin
ationofthesetwofieldsinto
humanresource informationsystems(HRIS).Thehistoryof the
fieldofHRMand the impactof
computertechnologyonHRMwillbecovered,aswellas
theadventofusingahumanresource
informationsystemandthesubsequenteffectsonbothHRandITprofe
ssionals.Thedifferenttypes
ofHRactivitieswillbediscussedaswellasthedifferenttypesofinform
ationsystemsusedinHRIS.
AcentralfocusofthischapteristheuseofdatafromtheHRISinsupport
ofmanagerialdecision
making.Thedevelopmentof the fieldofHRIShashadasignificant
impactontheemergenceof
strategichumanresourcemanagement(strategicHRM),asisdiscusse
dinthischapter.Thisfirst
chapterwilllaythegroundworkfortheremainderofthisbook,and,con
sequently,itisimportantto
understandthoroughly
theconceptsandideaspresented.Thischaptercontainsdefinitions
fora
numberoftermsincommonuseintheHRM,IT,andHRISfields.(Notet
hataglossarydefining
thesetermsisalsoprovidedatthebackofthisbook.)Thecentralthemes
ofthisbookintermsofthe
development,implementation,anduseofanHRISwillalsobediscuss
ed.Thechapteralsopresents
amodeloforganizationalfunctioningthatprovidesanoverviewofan
HRISembeddedwithinan
organizationalandglobalbusinessenvironment,withaspecificemph
asisonitsrelationshiptoHR
managementandthestrategicplanningofanorganization.Abriefover
viewofthemajorsectionsof
thebookwillbepresentedhereaswell;onediscussinghoweachchapte
risanintegralpartofthe
entirefieldofHRIS.Finally,youshouldnotethatthe“KeyTerms”use
dinthischapterareinbold
andcontainedinasectionafterthechapter“Summary.”Thepatternofs
ectionsforthischapter
willbeconsistentforallchaptersofthisbook.
CHAPTERObjectives
Aftercompletingthischapter,youshouldbeableto
•DescribethehistoricalevolutionofHRM,includingthechangingrol
eofthehumanresources
(HR)professional
•Discusstheimpactofthedevelopmentofcomputertechnologyonthe
evolutionofHRMand
HRIS
•DescribethethreetypesofHRactivities
•ExplainthepurposeandnatureofanHRISaswellasthedifferencesbe
tweenthetypesof
informationsystemsfunctionalityinanHRIS
•DiscusshowtheinformationfromanHRIScanassistindecisionmaki
nginorganizations
•DiscusshowthedevelopmentsinHRIShaveledtoHRMbecomingast
rategicpartnerin
organizationsandtotheemergenceofthefieldofstrategichumanreso
urcemanagement(strategic
HRM)
•BeabletodefineSixSigma,balancedscorecard,andthecontingency
perspectiveandfitmodel
ofHRM
•Describethedifferencesbetweene-HRMandHRIS
•UnderstandhowHRMandHRISfitwithinacomprehensivemodelof
organizationalfunctioning
inglobalbusinessenvironments
HRISINACTION
SituationDescription
ToillustratetheimportanceanduseofHRISincontemporaryHRdepar
tments,thisvignetteexamines
thetypicalmemorandathatmayappearinthein-
boxofHRprofessionalsandmanagers.Assumeyou
are the HR director of a medium-size organization that
primarily maintains and uses manual HR
recordsandsystems.Thismorning,yourin-
boxcontainsthefollowingmemosthatrequireaction
today.
Memo1:Anotefromthelegaldepartmentindicatesthatsomefemalest
affmembershavefiledan
employment discrimination complaint with the local government
agency responsible for the
enforcementofequalopportunityemployment.Thefemalestaffmem
bersallegethat,forthepast10
years,theyhavebeenpassedoverforpromotionbecausetheyarewome
n.Inordertorespondtothis
allegation,thelegaldepartmentrequireshistoricaldataonthepromoti
onsofbothmalesandfemales
for the past 10 years for all jobs in the company broken down
by department. It also needs the
trainingrecordsforallmanagers involved
inpersonnelactions,suchaspromotions, toascertain
whetherornottheyhavereceivedtraininginequalemploymentprovis
ions,especiallyintermsof
unfairgenderdiscrimination.
Memo 2: The second item is a complaint from employees
working in a remote location of the
company,about150milesaway.Theemployeesarecomplainingthatt
heirpayslipsarenotreaching
themontimeandthattheyarefindingitdifficulttogettimelyandaccura
teinformationonthemost
recentleaveandbenefitspoliciesofthecompany.
Memo3:Aletterfromthemarketingmanagerstatesthathehasnotrecei
vedanyupdatedinformation
on thestatusofhis request,made threemonthsago, to
recruitanewsalesperson.Thefailure to
recruitandhireanewsalespersonhashadanegativeeffectontheoveral
lsalesofthecompany’s
productsoverthepastquarter.
Memo4:AletterfromtheHRprofessionalinchargeofthesouthwestre
gionalofficesaysthatsheis
swamped with HR administrative work, particularly personnel
transactions on employees. As a
result,shehasnotbeenabletomeetemployeesinherregiontodescribe
andbegintoimplementthe
recentEmployeeEngagementInitiativeasrequiredbycorporatehead
quarters.
Memo5:Anotefromoneoftheproductionmanagersindicatesthatheh
asreceivedaresignation
letterfromahighlyregardedproductionengineer.Sheisresigningbec
auseshehasnotreceivedthe
training on new technology that she was promised when hired.
She notes that most of the other
productionengineershaveattendedthistrainingprogramandhaveha
dverypositivereactionstoit.
Memo6:AstronglywordednotefromthedirectoroffinanceaskstheH
Rdepartmenttojustifythe
increasing costs associated with its operation. The note
indicates that the HR director needs to
developabusinessplanfortheoveralloperationoftheHRdepartmentt
oincludebusinessplansfor
alloftheHRprograms,suchasrecruitingandtraining.Further,thefina
ncedirectorindicatesthat
unless the business cases can demonstrate a positive cost-
benefit ratio, the budget for the HR
departmentwillbereduced,whichwillleadtoreductionsintheHRdep
artmentprofessionalstaff.
As the HR director, your first thought may be to resign since
searching for the information
requiredbythesememosinthemanualrecordsonemployeeswillrequi
reseveraldaysifnotweeks
to complete. However, you have just returned from a
professional conference sponsored by the
SocietyforHumanResourcesManagement(SHRM)andrememberho
wanHRISmaybewhatyou
need!Asthischapterandtheonesthatfollowwillillustrate,anHRISen
ablesanHRdepartmentto
streamline its activities and the demands placed on it by
automating the HR data and processes
necessaryforthemanagementofthehumancapitaloftheorganization
.Thisautomationhelpsdevelop
thecapabilitiestoproduceinformationandreportsontherequestscont
ainedinthememosinthe
vignette,andthesereportswillfacilitateefficientandeffectivemanag
erialdecisionmaking.While
anHRIScannotmakethejudgmentcallsintermsofwhomtorecruitorp
romote,itcancertainly
facilitatebetterinputting,integration,anduseofemployeedata,whic
hwillreducetheadministrative
burdenofkeepingdetailedrecordsandshouldaidandenhancedecisio
nsaboutstrategicdirections.
NeedforanHRISinDecisionSituations
If you read the above memos again, you will recognize that each
one has a request for HRM
informationthatwillbeusedinadecisionsituation.Theinformationre
questedinMemo1willhelp
thelegaldepartmentdeterminethecompany’spotentialliabilityinaw
orkplacegenderdiscrimination
situation.Thisinformationmayhelptodeterminewhetherthecompan
yshoulddecidetorectifythe
situationintermsofaninformalsettlementwiththefemalestaffmemb
ersortodefendthecompany’s
promotionproceduresasvalid—
incourtifnecessary.TheinformationrequiredinMemo2mayhelp
theHRdepartmentdecidetochangeitspayrollproceduresaswellas
itsdistributionofbenefits
informationtoremotecompanylocations.Theinformationneededtor
espondtoMemo3willimpact
decisions by the HR department to change recruitment and
selection programs. Obviously, the
responsetoMemo4wouldgreatlysupporttheneedfortheacquisitiono
fanHRIS.Theinformation
requiredtoanswerMemo5mayhelpindecisionsregardingtherevisio
nofrecruitingandtraining
procedures,especiallyfornewengineers.Theinformationthatwould
beprovidedinresponseto
Memo6willhelpdecide thefutureof
theHRdepartment.Asyougothroughthisbook, lookat
informationonthecapabilitiesofvarioushumanresourceinformatio
nsystems,tryingtofindanHRIS
thatwouldallowyou(astheHRdirector)torespondtoeachofthesixme
mosinoneday.
Introduction
Leadingmanagementthinkerssuggestthat“itisnottechnology,butth
eartofhuman-andhumane-
management”thatisthecontinuingchallengeforexecutivesinthe21s
tcentury(Drucker,Dyson,Handy,
Saffo,&Senge,1997).Similarly,SmithandKelly(1997)believethat“
futureeconomicandstrategic
advantagewillrestwiththeorganizationsthatcanmosteffectivelyattr
act,developandretainadiverse
groupofthebestandthebrightesthumantalentinthemarketplace”(p.2
00).
Tomaintainacompetitiveadvantageinthemarketplace,firmsneedto
balancetheresourcesavailableto
thefirmtoachievethedesiredresultsofprofitabilityandsurvival.The
resourcesthatareavailabletothe
firmfallintothreegeneralcategories:physical,organizational,andh
uman.Indiscussinghowtogaina
competitiveadvantageintheglobalmarket,Porter(1990)notesthatm
anagementofthehumanresources
intheglobaleconomyisthemostcriticalofthethree.Theideaoftreatin
ghumanresourcesasameansof
gainingacompetitiveadvantageinboththedomesticandtheglobalma
rketplacehasbeenechoedbyother
authorsaswell.AsGreer(1995)states,
Inagrowingnumberoforganizationshumanresourcesarenowviewed
asasourceof
competitiveadvantage.Thereisgreaterrecognitionthatdistinctivec
ompetenciesare
obtainedthroughhighlydevelopedemployeeskills,distinctiveorgan
izationalcultures,
managementprocesses,andsystems.Thisisincontrasttothetradition
alemphasison
transferableresourcessuchasequipment.…Increasingly,itisbeingr
ecognizedthat
competitiveadvantagecanbeobtainedwithahighqualityworkforcet
hatenables
organizationstocompeteonthebasisofmarketresponsiveness,produ
ctandservice
quality,differentiatedproducts,andtechnologicalinnovation.(p.10
5)
Theeffectivemanagementofhumanresourcesinafirmtogainacompe
titiveadvantagerequirestimely
andaccurateinformationoncurrentemployeesandpotentialemploye
esinthelabormarket.Withthe
evolutionofcomputertechnology,meetingthisinformationrequirem
enthasbeengreatlyenhancedthrough
thecreationofHRIS.Abasicassumptionbehindthisbookisthattheeff
ectivemanagementofemployee
informationfordecisionmakerswillbethecriticalprocessthathelpsa
firmmaximizetheuseofits
humanresourcesandmaintaincompetitivenessinitsmarket.
Thefirstpurposeofthisbookistoprovideinformationonthedevelopm
ent,implementation,and
maintenanceofanHRIS.Thesecondpurposeistodemonstratehowan
HRIScanbeusedtosupport
HRMfunctions,suchasinselectingandtrainingemployees,tomaketh
emmoreefficientandeffective.
ThefinalpurposeistoemphasizehowanHRIScanprovidetimelyanda
ccurateemployeeinformation
toassistdecisionmakersatboththestrategicandoperationallevelsina
norganization.Asa
consequence,thequalityofemployeeinformationwillhaveastrongef
fectontheoveralleffectivenessof
theorganization.
HistoricalEvolutionofHRMandHRIS
OnecananalyzethehistoricaltrendsoftheHRfunctionfromdifferent
viewpoints:theevolutionofHRM
(humanresourcemanagement)asaprofessionalandscientificdiscipl
ine,asanaidtomanagement,asa
politicalandeconomicconflictbetweenmanagementandemployees,
andasagrowingmovementof
employeeinvolvementinfluencedbydevelopmentsinindustrial,org
anizational,andsocialpsychology.
Thehistoricalanalysisthatfollowswilldemonstratethegrowingimp
ortanceofemployeesfrombeing
justoneofthereplaceablepartsinorganizationsinthe20thcenturyind
ustrialeconomytobeingakey
sourceofsustainablecompetitiveadvantageinthe21stcenturyknowl
edgeeconomy.
SincethisisabookonHRIS,wewillexaminethedevelopmentofthefie
ldsofbothhumanresourcesand
informationtechnologyintermsoftheirevolutionsincetheearly20th
century.Thismeansexaminingthe
evolutionofHRMintertwinedwithdevelopmentsinITanddescribing
howIThasplayedanincreasing
roleintheHRMfunction.Thishistoricalanalysiswillshowhowtherol
eofHRMinthefirmhaschanged
overtimefromprimarilybeingconcernedwithroutinetransactionala
ndtraditionalHRactivitiesto
dealingwithcomplextransformationalones.Transactionalactivities
aretheroutinebookkeepingtasks—
forexample,changinganemployee’shomeaddressorhealthcareprov
ider.TraditionalHRactivitiesare
focusedonHRprogramslikeselection,compensation,andperforman
ceappraisal.However,
transformationalHRactivitiesarethoseactionsofanorganizationtha
t“addvalue”totheconsumption
ofthefirm’sproductorservice.AnexampleofatransformationalHRa
ctivitywouldbeatraining
programforretailclerkstoimprovecustomerservicebehavior,which
hasbeenidentifiedasastrategic
goalfortheorganization.Thus,transformationalactivitiesincreaset
hestrategicimportanceandvisibility
oftheHRfunctioninthefirm.Thisgeneralchangeovertimeisillustrat
edinFigure1.1andwillbecome
evidentaswetracethehistoricalevolutionofHRMintermsoffivebroa
dphasesofthehistorical
developmentofindustryintheUnitedStates.Formoreinformationont
hishistoricaldevelopment,you
shouldconsultKavanagh,Gueutal,andTannenbaum(1990)orWalke
r(1982).
Pre–WorldWarII
Intheearly20thcenturyandpriortoWorldWarII,thepersonnelfuncti
on(theprecursorofhuman
resourcesmanagement)wasprimarilyinvolvedinclericalrecordkee
pingofemployeeinformation;in
otherwords,itfulfilleda“caretaker”function.Duringthisperiod,the
prevailingmanagement
philosophywascalledscientificmanagement.Thecentralthrustofsci
entificmanagementwasto
maximizeemployeeproductivity.Itwasthoughtthattherewasonebes
twaytodoanywork,andthisbest
waywasdeterminedthroughtimeandmotionstudiesthatinvestigated
themostefficientuseofhuman
capabilitiesintheproductionprocess.Then,theworkcouldbedivided
intopieces,andthenumberof
taskstobecompletedbyaworkerduringanaverageworkdaycouldbec
omputed.Thesefindingsformed
thebasisofpiece-
ratepaysystems,whichwereseenasthemostefficientwaytomotivate
employeesat
thattime.
Figure1.1HistoricalEvolutionofHRMandHRIS
Atthispointinhistory,therewereveryfewgovernmentinfluencesine
mploymentrelations;consequently,
employmentterms,practices,andconditionswerelefttotheownersof
thefirm.Asaresult,abusessuch
aschildlaborandunsafeworkingconditionswerecommon.Someemp
loyerssetuplaborwelfareand
administrationdepartmentstolookaftertheinterestsofworkersbyma
intainingrecordsonhealthand
safetyaswellasrecordinghoursworkedandpayroll.Itisinterestingto
notethatrecordkeepingisoneof
themajorfunctionsbuiltintothedesignofanHRIStoday;however,the
resimplywasnocomputer
technologytoautomatetherecordsatthistimeinhistory.Ofcourse,pa
perrecordswerekept,andwecan
stillseepaperrecordHRsystemsinmanysmallerfirmstoday.
Post–WorldWarII(1945–1960)
Themobilizationandutilizationoflaborduringthewarhadagreatimp
actonthedevelopmentofthe
personnelfunction.Managersrealizedthatemployeeproductivityan
dmotivationhadasignificantimpact
ontheprofitabilityofthefirm.Thehumanrelationsmovementafterthe
waremphasizedthatemployees
weremotivatednotjustbymoneybutalsobysocialandpsychologicalf
actors,suchasreceiving
recognitionforworkaccomplishedorfortheachievementofworknor
ms.
Duetotheneedfortheclassificationoflargenumbersofindividualsin
militaryserviceduringthewar,
systematiceffortsbegantoclassifyworkersaroundoccupationalcate
goriesinordertoimprove
recruitmentandselectionprocedures.Thecentralaspectoftheseclass
ificationsystemswasthejob
description,whichlistedthetasks,duties,andresponsibilitiesofanyi
ndividualwhoheldthejobin
question.Thesejobdescriptionclassificationsystemscouldalsobeus
edtodesignappropriate
compensationprograms,evaluateindividualemployeeperformance
,andprovideabasisfortermination.
Becauseoftheabusiveworkerpracticespriortothewar,employeessta
rtedformingtradeunions,which
playedanimportantroleinbargainingforbetteremploymenttermsan
dconditions.Thereweresignificant
numbersofemploymentlawsenactedintheUnitedStatesthatallowed
theestablishmentoflaborunions
anddefinedtheirscopeinrelationshipwithmanagement.Thus,perso
nneldepartmentshadtoassume
considerablymorerecordkeepingandreportingtogovernmentalage
ncies.Becauseofthesetrends,the
personneldepartmenthadtoestablishspecialistdivisions,suchasrec
ruitment,laborrelations,training
andbenefits,andgovernmentrelations.
Withitschangingandexpandingrole,thetypicalpersonneldepartmen
tstartedkeepingincreasing
numbersandtypesofemployeerecords,andcomputertechnologybeg
antoemergeasapossiblewayto
storeandretrieveemployeeinformation.Insomecasesinthedefensei
ndustry,jobanalysisand
classificationdatawereinputtedintocomputerstobetterunderstand,
plan,anduseemployeeskills
againstneeds.Forexample,theU.S.AirForceconductedathoroughan
dsystematicjobanalysisand
classificationthroughitsAirForceHumanResourcesLaboratory(AF
HRL),whichresultedina
comprehensiveoccupationalstructure.TheAFHRLcollecteddatafr
omthousandsinjobswithintheAir
Force,and,throughtheuseofacomputersoftwareprogramcalledtheC
omprehensiveOccupational
DataAnalysisProgram(CODAP),itwasabletoestablishmoreaccurat
elyajobdescription
classificationsystemforAirForcejobs.
Personneldepartmentsoutsidethedefenseindustrywerenotusingco
mputersatthistime.Computers
werebeingusedforbillingandinventorycontrol,buttherewasverylitt
leusefortheminthepersonnel
functionexceptforpayroll.Thepayrollfunctionwasthefirsttobeauto
mated.Largefirmsbegan
harvestingthebenefitsofnewcomputertechnologytokeeptrackofem
ployeecompensation,butthis
functionwasusuallyoutsourcedtovendorssinceitwasstillextremely
expensiveforafirmtoacquireor
developthenecessarysoftwareforthepayrollfunction.Itwassimpler
tooutsourcethisfunction.Itis
importanttorealizethatcomputertechnologywasjustbeginningtobe
usedatthistime,anditwas
complexandcostly.Withincreasinglegislationonemploymentrelati
onsandemployeeunionization,
industrialrelationsbecameoneofthemainfociofthepersonneldepart
ment.Union-management
bargainingoveremploymentcontractsdominatedtheactivityofthed
epartment,andthesenegotiations
werenotcomputerbased.Recordkeepingwasstilldonemanuallydesp
itethegrowinguseof
computerizeddataprocessinginotherdepartments,suchasaccountsa
ndmaterialsmanagement.What
resultedwasaninitialreluctanceamongpersonneldepartmentstoacq
uireandusecomputertechnology
fortheirprograms.Thishadalong-
termeffectinmanyfirmswhenitcametoadoptingadvancementsin
computertechnology,eventhoughthistechnologygotcheaperandeas
iertouse.
SocialIssuesEra(1963–1980)
Thisperiodwitnessedanunprecedentedincreaseintheamountoflabo
rlegislationintheUnitedStates,
legislationthatgovernedvariouspartsoftheemploymentrelationshi
p,suchastheprohibitionof
discriminatorypractices,thepromotionofoccupationalhealthandsa
fety,theprovisionofretirement
benefits,andtaxregulation.Asaresult,thepersonneldepartmentwas
burdenedwiththeadditional
responsibilityoflegislativecompliancethatrequiredcollection,anal
ysis,andreportingofvoluminous
datatostatutoryauthorities.Forexample,todemonstratethattherewa
snounfairdiscriminationin
employmentpractices,apersonneldepartmenthadtodiligentlycolle
ct,analyze,andstoredatapertaining
toallemploymentfunctions,suchasrecruitment,training,compensat
ion,andbenefits.Toavoidthethreat
ofpunitivedamagesfornoncompliance,ithadtoensurethatthedatawe
recomprehensive,accurate,and
uptodate,whichmadeitessentialtoautomatethedatacollection,anal
ysis,andreportgeneration
process.Asyougothroughthechaptersofthisbook,thesevaryinglaws
andgovernmentguidelineswill
becoveredwithinthespecificHRtopics.
Itwasaboutthistimethatpersonneldepartmentswerebeginningtobec
alledhumanresources
departmentsandthefieldofhumanresourcemanagementwasborn.Th
eincreasingneedtobein
compliancewithnumerousemployeeprotectionlawsorsuffersignifi
cantmonetarypenaltiesmadesenior
managersawareoftheimportanceoftheHRMfunction.Inotherwords
,effectiveandcorrectpracticesin
HRMwerestartingtoaffectthe“bottomline”ofthefirms,sotherewasa
significantgrowthofHR
departments,andcomputertechnologyhadadvancedtothepointwher
eitwasbeginningtobeused.Asa
result,therewasanincreasingdemandforHRdepartmentstoadoptco
mputertechnologytoprocess
employeeinformationmoreeffectivelyandefficiently.Thistrendres
ultedinanexplosioninthenumber
ofvendorswhocouldassistHRdepartmentsinautomatingtheirprogra
msintermsofbothhardwareand
software.
Simultaneously,computertechnologywasevolvinganddeliveringb
etterproductivityatlowercosts.
Thesetechnologydevelopmentsandincreasedvendoractivityledtot
hedevelopmentofacomprehensive
managementinformationsystem(MIS)forHRM.Thedecreasingcost
sofcomputertechnologyversus
theincreasingcostsofemployeecompensationandbenefitsmadethea
cquisitionofcomputer-basedHR
systems(HRIS)anecessarybusinessdecision.However,thepersonn
eldepartmentswerestillslowin
adoptingcomputertechnology,eventhoughitwasinexpensiverelativ
etothepoweritcoulddeliverfor
thestorageandretrievalofemployeeinformationinMISreports.So,th
emajorissueatthistimeinthe
historicaldevelopmentofHRISwasnottheneedfororcapabilitiesoft
echnologybuthowtobest
implementit.
Anotherfactorwastheboomingeconomyinmostindustrializedcount
ries.Asaresult,employeetrade
unionssuccessfullybargainedforbetteremploymentterms,suchashe
althcareandretirementbenefits.
Consequently,laborcostsincreased,whichputpressureonpersonnel
managerstojustifycostincreases
againstproductivityimprovements.Withtheincreasedemphasisone
mployeeparticipationand
empowerment,theroleofpersonnelfunctiontransformedfroma“prot
ector”ratherthana“caretaker”
focus,shiftingthefocusawayfrommaintenancetodevelopmentofem
ployees.Thus,thebreadthand
depthofHRMfunctionsexpanded,bringingabouttheneedforstrategi
cthinkingandbetterdeliveryofHR
services.
Cost-EffectivenessEra(1980totheEarly1990s)
WithincreasingcompetitionfromemergingEuropeanandAsianecon
omies,U.S.andothermultinational
firmsincreasedtheirfocusoncostreductionthroughautomationando
therproductivityimprovement
measures.AsregardsHRM,theincreasedadministrativeburdeninten
sifiedtheneedtofulfillagrowing
numberoflegislativerequirements,whiletheoverallfunctionalfocus
shiftedfromemployee
administrationtoemployeedevelopmentandinvolvement.Toimpro
veeffectivenessandefficiencyin
servicedeliverythroughcostreductionandvalue-
addedservices,theHRdepartmentscameunder
pressuretoharnesstechnologythatwasbecomingcheaperandmorepo
werful.
Inaddition,therewasagrowingrealizationwithinmanagementthatpe
oplecostswereaverysignificant
partofacompany’sbudget.Somecompaniesestimatedthatpersonnel
costswereashighas80%oftheir
operatingcosts.Asaresult,therewasagrowingdemandontheHRMfu
nctiontocostjustifytheir
employeeprogramsandservices.Inoneofthefirstbookstoaddressthi
sgrowingneedtocostjustifythe
HRMfunction,Cascio(1984)indicatesthatthelanguageofbusinessis
dollarsandcents,andHR
managersneedtorealizethisfact.Inalatereditionofhisbook,Cascio(
1991)quotesJacquesFitz-enz
(1980),whomoreaccuratelystatestheneedforthoseresponsibleforh
umanresourcemanagementtocost
justifytheirfunction:
Fewhumanresourcemanagers—eventhemostenergetic—
takethetimetoanalyzethe
returnonthecorporation’spersonneldollar.Wefeelwearen’tvaluedi
nourown
organizations,thatwecan’tgettheresourcesweneed.Wecomplainth
atmanagement
won’tbuyourproposalsandwonderwhyouradviceissooftenignored
untilthecrisis
stage.Butthehumanresourcesmanagerseldomstandsbacktolookatt
hetotal
businessandask:WhyamIatthebottomlookingup?Theanswerispain
fully
apparent.Wedon’tactlikebusinessmanagers—
likeentrepreneurswhosebusiness
happenstobepeople.(Fitz-enz,1980,p.41)
Evensmallandmediumfirmscouldaffordcomputer-
basedHRsystemsthatwererunbyincreasingly
user-friendlymicrocomputersandcouldbeshowntobecost-
effective.Theprevailingmanagement
thinkingregardingtheuseofcomputersinHRwasnotthattheirusewou
ldresultinareductioninthe
numberofemployeesneededinHRdepartmentsbutthatemployeeacti
vitiesandtimecouldbeshifted
fromtransactionalrecordkeepingtomoretransformationalactivities
thatwouldaddvaluetothe
organization.ThischangeinthefunctionofHRMcouldthenbeclearly
measuredintermsofcost-benefit
ratiostothebottomlineofthecompany.
TechnologicalAdvancementEraandtheEmergenceofStrategic
HRM(1990toPresent)
Theeconomiclandscapeunderwentradicalchangesthroughoutthe19
90swithincreasingglobalization,
technologicalbreakthroughs(particularlyInternet-
enabledWebservices),andhypercompetition.
Businessprocessreengineeringexercisesbecamemorecommonandf
requent,resultinginseveral
initiatives,suchastherightsizingofemployeenumbers,reducingthel
ayersofmanagement,reducingthe
bureaucracyoforganizationalstructures,creatingautonomousworkt
eams,andoutsourcing.These
changestobothhumanresourcesandthesystemssupportingHRaresu
mmarizedinFigure1.1.
Firmstodayrealizethatinnovativeandcreativeemployeeswhoholdt
hekeytoorganizationalknowledge
provideasustainablecompetitiveadvantagebecause,unlikeotherres
ources,intellectualcapitalis
difficultforcompetitorstoimitate.Accordingly,thepeoplemanagem
entfunctionhasbecomestrategicin
itsimportanceandoutlookandisgearedtoattract,retain,andengageta
lent.Thesedevelopmentshaveled
tothecreationoftheHRbalancedscorecard(Becker,Huselid,&Ulric
h,2001;Huselid,Becker,&
Beatty,2005),aswellastoaddedemphasisonthereturnoninvestment(
ROI)oftheHRfunctionand
itsprograms(Cascio,2000;Fitz-enz,2000,2002).
TheincreaseduseoftechnologyandthechangedfocusoftheHRMfunc
tion,whichshiftedtoadding
valuetotheorganization’sproductorservice,ledtotheemergenceoft
heHRdepartmentasastrategic
partner.Withthegrowingimportanceandrecognitionofpeopleandpe
oplemanagementincontemporary
organizations,strategichumanresourcemanagement(strategicHR
M)hasbecomecriticallyimportantin
managementthinkingandpractice.StrategicHRMderivesitstheoreti
calsignificancefromtheresources-
basedviewofthefirmthattreatshumancapitalasastrategicassetanda
competitiveadvantagein
improvingorganizationalperformance(Becker&Huselid,2006).
Reflectingtheresource-
basedview,BeckerandHuselid(2006)stresstheimportanceofHRsys
temsand
structure—
thatis,the“systems,practices,competencies,andemployeeperforma
ncebehaviorsthat
reflectthedevelopmentandmanagementofthefirm’sstrategichuman
capital”—fororganizational
performance(p.899).ContextisacrucialelementinstrategicHRM,an
d,therefore,researchers
increasinglyemphasizethe“best-
fit”approachtostrategicHRMasopposedtothe“best-practice”
approachtostrategicHRM.ThesuccessofstrategicHRMiscontingen
tonseveralfactors,suchas
nationalandorganizationalculture,size,industrytype,occupational
category,andbusinessstrategy.
Accordingly,BeckerandHuselid(2006)arguethat“itisthefitbetwee
ntheHRarchitectureandthe
strategiccapabilitiesandbusinessprocessesthatimplementstrategyt
hatisthebasisofHR’scontribution
tocompetitiveadvantage”(p.899).
AgoodexampleoftheimportanceofHRandtheinformationprovided
byanHRIScanbefoundinthe
humanresourcesplanning(HRP)function,whichwillbecoveredingr
eaterdetailinChapter11.HRP
isprimarilyconcernedwithforecastingtheneedforadditionalemploy
eesinthefutureandthe
availabilityofthoseemployeeseitherinsideorexternaltothecompan
y.Imagine,forexample,thata
companyisconsideringastrategicdecisiontoexpandbyestablishing
aproductionfacilityinanew
location.UsingtheinformationrecordedandanalyzedintheHRIS,H
RPcanprovideestimatesofwhether
ornotthereareenoughpeopleavailablewiththenecessaryskillsinthe
externallabormarketofthenew
locationtostaffthenewfacility.Determiningtheavailabilityofpoten
tialemployeesinthelabormarket
maybecriticaltothestrategicdecisiontobuildthenewfacility,andthi
s,ofcourse,couldinvolve
millionsorbillionsofdollars.
IntracingtheevolutionofstrategicHRM,M.L.Lengnick-
Hall,C.A.Lengnick-Hall,Andrade,andDrake
(2009)identifysevenkeythemes:
•HRcontingencyperspectiveandfit:HRstrategiesaredependentonb
usinessstrategies
(costreduction,qualityimprovement,andinnovation)andbusinesss
ettings(manufacturing,
services,publicsector,andnotforprofit,aswellasfirmsize)
•Shiftinfocusfrommanagingpeopletocreatingstrategiccontributio
ns,signifyingthe
resource-basedviewofthefirmandsocialcapital
•HRsystemcomponentsandstructure,focusingonHRsystemarchite
ctureandbundlesof
high-performanceworkpractices
•ExpandingthescopeofHRMbeyondthefocalorganizationtoinclude
customers,suppliers,
andcompetitors,bothlocallyandinternationally
•AchievingHRimplementationandexecutionbytranslatingtherheto
ricintopractice
•MeasuringtheoutcomesofStrategicHRMbyvariousmeans,suchast
heHRbalanced
scorecardapproach
•Researchmethodologicalissuesthatstresstheimportanceofevidenc
e-basedmanagement
AnothercriticalcharacteristicofStrategicHRMistheadoptionandus
eofHRmetrics(Cascio,2000;
Lawler&Mohrman,2003).Mostfunctionaldepartmentsofanorganiz
ationhaveutilizedmetricsfor
decadesduetothenatureoftheirbusinesstransactions.Forexample,t
hemarketingdepartmenthasset
salesgoalsandtheeffectivenessmetricthatisusedisthepercentageof
salesrelativetothegoal.But,for
HR,thefocusonthemeasurementofthecosteffectivenessofprograms
isrelativelyrecent.Despitethe
recentutilizationofmetrics,theirusecontinuestogrowandhasdeepe
nedasorganizationsseekto
competeglobally.
KaplanandNorton(1996)firstpopularizedtheconceptofthebalance
dscorecardthatgoesbeyond
traditionalfinancialmeasurestoassessfirmperformancetoincludec
ustomer,internalprocess,and
learningperspectives.Incorporatingtheprinciplesofthebalancedsc
orecardapproach,Beatty,Huselid,
andSchneier(2003)developedtheHRbalancedscorecardthatseekst
oachievethekeyHRdeliverables
(workforcemindset,technicalknowledge,andworkforcebehavior)b
yaligning,integrating,and
differentiatingtheHRsystems.Inaddition,Lawler,Levenson,andBo
udreau(2004)emphasizethatthree
typesofmetricsareimportanttoevaluatetheHRfunction.Thefirsttyp
eisefficiencymetricsfor
administrativetaskssuchas“timetofill”jobs.Thesecondtypeiseffec
tivenessmetricsforHRpractices
suchasthecosttofillajobvacancy.Thethirdtypeisimpactmetricsfor
HRprogramsandpracticesthat
focusontheoverallobjectiveofdevelopingandoptimizingworkforce
capabilitiesandcompetencies.
Forexample,anorganizationcouldassessthecostperhirecomparingc
urrent-yearcostrelativetothe
costsinpreviousyearsorafteramajorchangetorecruitmentpractices.
HRmetricscombinedwithIT
knowledgeandapplicationshasgivenorganizationsasignificanttool
toutilizethehumancapitalintheir
organizations.
ThemostrecentdevelopmentrelatedtotheroleofHRMinStrategicHR
Mhasbeentheapplicationof
HRIS-
enabledSixSigmaprocessestoHRM.MostprofessionalsassociateSi
xSigmawithGeneral
Electric,asthecompanywasthefirstmajoruseroftheSixSigmaappro
ach.Ingeneral,SixSigmarefers
tostreamliningoperationsthroughbusinessprocessreengineeringan
dhasbeenstructuredaroundfivekey
processes—
define,measure,analyze,improve,andcontrol(DMAIC).TheDMAI
Capproachusesan
assortmentofstatisticaltoolstoreengineerbusinessprocesses,impro
vedecisionmaking,andimprove
customerservice.SixSigmawillbediscussedintermsofprojectmana
gementinChapter6.
Aswewillseeintheensuingchapters,informationtechnologyisakeye
nablerofStrategicHRM(Haines
&Lafleur,2008).However,indeterminingthestrategicfitbetweente
chnologyandHR,itisnotthe
strategypersethatleadstocompetitiveadvantagebutratherhowwelli
tis“implemented,”takinginto
accounttheenvironmentalrealitiesthatcanbeuniquetoeachorganiza
tionand,indeed,betweenunitsand
functionsoftheorganization.AcriticalaspectofanHRISinsupportin
gtheimplementationofstrategic
plansisusingittomakedecisionsaboutemployees,humancapitalpro
grams,andinitiatives.Allofthese
HRMdecisionsareaidedbytheabilityoftheHRIStogeneratereports,f
orexample,thenumberofnew
employeesneededforaspecificjob.Thus,inthesectionentitled“APri
meronHRIS”laterinthis
chapter,youwillnotethegenerationofreportstobeakeybenefitofanH
RIS.HRMreportsarecentralto
decisionsinvolvingthehumancapitalofanorganization,andtheyena
blethetranslationofstrategicplans
tooperationaldecisions.Asyougothroughthechaptersinthisbook,yo
uwillseehowreportsareusedin
avarietyofHRMprogramsandactivities.
HRActivities
TypicalHRprogramsinvolvethingssuchasrecordkeeping,recruitin
g,selection,training,employee
relations,andcompensation.However,alltheseprogramsinvolvemu
ltipleactivities,andtheseHR
activitiescanbeclassifiedintothreebroadcategories:transactional,t
raditional,andtransformational
(Wright,McMahan,Snell,&Gerhart,1998).Transactionalactivities
involveday-to-daytransactionsthat
havetodealmostlywithrecordkeeping—
forexample,enteringpayrollinformation,trackingemployee
statuschanges,andtheadministrationofemployeebenefits.Traditio
nalactivitiesinvolveHRprograms
suchasplanning,recruiting,selection,training,compensation,andp
erformancemanagement.These
activitiescanhavestrategicvaluefortheorganizationiftheirresultsor
outcomesareconsistentwiththe
strategicgoalsoftheorganization.Transformationalactivitiesareth
oseactivitiesthataddvaluetothe
organization—
forexample,culturalororganizationalchange,structuralrealignmen
t,strategicredirection,
andincreasinginnovation.
Wrightetal.(1998)estimatedthatmostHRdepartmentsspendapproxi
mately65%to75%oftheirtime
ontransactionalactivities,15%to30%ontraditionalactivities,and5
%to15%ontransformational
activities.Oneofthemajorpurposesofthedesign,development,andi
mplementationofanHRISisto
reducetheamountoftimeHRemployeeshavetospendontransactiona
lactivities,allowingthestaffto
spendmoretimeontraditionalandtransformationalactivities.Thisn
otionofusingtechnologytoimprove
transactionalactivitiesandaccomplishthemmoreefficientlyisthece
ntralthemeofthisbookand
providesoneoftheprimaryjustificationsforacomputer-
basedsystem.Inlaterchaptersthatdiscuss
variousHRprogramssuchasselectionandtraining,wewillseehowac
omputer-basedsystemcanaidin
bothtraditionalandtransformationalactivitiestomakethemconsiste
ntwiththestrategicgoalsofthe
organization.
IntermsofthebroadrolesofHR,Ulrich(1998)identifiesfourmainrole
s,namely,strategicbusiness
partner,administrativeexpert,employeechampion,andchangeagent
.Ulrich,Younger,andBrockbank
(2008)stressthat,inthe21stcentury,theHRorganizationshouldfunct
ionasabusinesswithinabusiness,
shiftingitsfocusfromactivitiestooutcomesandcapabilitiesanditsstr
ucturesothatitmirrorsthatofthe
business.
InterfaceBetweenHRandTechnology
Technology-
drivenautomation(IT)andtheredesignofworkprocessescertainlyhe
lpreducecostsand
cycletimesaswellasimprovequality.Informationsystems(IS)canfu
rtherhelpdecisionmakerstomake
andimplementstrategicdecisions.However,ITisonlyatoolandcano
nlycomplement,notsubstitutefor,
thepeoplewhouseit.Often,organizationsmistakeITasamessageand
notthemessenger,sotheydivert
time,effort,andmoneyawayfromalong-
terminvestmentinpeopletodevelopinganddeploying
informationtechnologies(Thite,2004).Infact,thecriticalsuccessfa
ctorsininformationsystemsproject
implementationareoftennontechnicalandduemoretopolitical,socia
l,andmanagerialissuesratherthan
technicalissues(Martinsons&Chong,1999).Thistopiciscoveredind
etailinChapters8and9.
WiththeincreasinguseofinformationtechnologiesinHRplanningan
ddelivery,thewaypeoplein
organizationslookatthenatureandroleofHRitselfmaychange(Roeh
lingetal.,2005).WithHRdata
andreportsnowreadilyavailableontheirdesktops,willmanagersinte
ractlesswiththeHRdepartment
andseeitasbeinglessimportant?Ifthatisso,howwillitaffecttheattitu
deofHRprofessionalstoward
theirjobsandprofession?Willtheyresisttheadoptionoftechnologyif
theyperceivethatthistechnology
lessenstheirstatus?
Intraditionalorganizationswithsilomentalities,turfwarsbetweenop
erationaldepartmentsandfunctions
actingasindependententitiesarecommon.Therefore,topmanageme
ntneedstobemindfulof
organizationalpoliticsinmanagingchange.Thisawarenesscanbepar
ticularlyimportantwhen
developingandimplementinganHRIS.Throughmostofitsevolution,
HRMhashadanadministrative
andcaretakerfocusinitsdelivery,and,eventoday,thisadministrative
andcaretakerfocusisimportant.
But,withtechnologysignificantlydecreasingthetimerequiredforad
ministrativetasks,HRdepartments
willbegintoallocateresourcestomorecomplex,strategic,andtransfo
rmativeactivities.Throughthese
changes,theroleofHRMisredefinedandtransformedthroughvalue-
added,strategicinitiativesand
interventions.ThisalsomeansthatHRprofessionalswillneedtolearn
newskillsandrethinkthewaythe
HRdepartmentisorganizedanddeliversitsservices.Withtheimprove
djobskillsofHRprofessionals,
technologywillbeseenasHR’s“partnerinprogress.”Whilehavingan
advanced,full-fledgedsystem
willnotautomaticallymakeHRastrategicbusinesspartner,thissyste
mactsasabuildingblockandan
effectiveaidintheprocess(Lawler&Mohrman,2003).
APrimeronHRIS
WhatIsanHRIS?
AfterreviewingthemanydefinitionsofanHRIS,wedefineitasasyste
musedtoacquire,store,
manipulate,analyze,retrieve,anddistributeinformationregardinga
norganization’shumanresourcesto
supportHRMandmanagerialdecisions.AnHRISisnotsimplycomput
erhardwareandassociatedHR-
relatedsoftware.Itrequirescooperationamongdepartmentsforitsbe
stuse.Thatis,itincludeshardware
andsoftware;italsoincludespeople,forms,policiesandprocedures,a
nddata.
Itisimportanttonotethatacompanythatdoesnothaveacomputerizeds
ystemstillhasahumanresource
informationsystem,butthesystemexistsonpaper(e.g.,storedinfiles
orfolders).Thepapersystemsthat
mostcompaniesusedbeforethedevelopmentofcomputertechnology
werestillcomparablewithan
HRIS,butthemanagementofemployeeinformationwasnotdoneasqu
icklyasinacomputerizedsystem,
nordiditprovidethewealthofdatathattoday’sHRISprovides.Ifthese
companieshadnothadpaper
systems,thedevelopmentandimplementationofcomputerizedsyste
mswouldhavebeenextremely
difficult.Forthepurposeofthisbook,however,wewillusethetermHR
IStorefertoacomputerized
systemdesignedtomanagethecompany’sHR.
TheprimarypurposeoftheHRISistoprovideservice,intheformofacc
urateandtimelyinformation,
tothe“clients”ofthesystem.Thereareavarietyofpotentialclients,as
HRinformationmaybeusedfor
strategic,tactical,andoperationaldecisionmaking(e.g.,planningfor
neededemployeesinamerger);to
avoidlitigation(e.g.,identifyingdiscriminationproblemsinhiring);
toevaluateprograms,policies,or
practices(e.g.,evaluatingtheeffectivenessofatrainingprogram);an
dtosupportdailyoperations(e.g.,
helpingmanagersmonitortheworktimeandattendanceoftheiremplo
yees).Alltheseusesmeanthat
thereisamandatoryrequirementthatdataandreportsbeaccurateandti
melyandthattheclientcan
understandhowtousetheinformation.
BecauseofthecomplexityanddataintensivenessoftheHRMfunction
,itisoneofthelastmanagement
functionstobetargetedforautomation(Bussler&Davis,2001/2002).
Thisfactdoesnotmeanthatan
HRISisnotimportant;itjustindicatesthedifficultyofdevelopingandi
mplementingitcomparedwith
otherbusinessfunctions—
forexample,thebillingandaccountingsystems.Poweredbyinformat
ion
systemsandtheInternet,almosteveryprocessineveryfunctionofHR
Mhasbeencomputerizedtoday.A
sampleemployeehomescreenforanHRISisshowninFigure1.2
Figure1.2SuccessFactorsEmployeeHomeScreen
Source:©SuccessFactors,Inc.Allrightsreserved.
Thesystemsandprocessfocushelpsorganizationskeepthecustomerp
erspectiveinmind,sincequalityis
primarilydefinedandoperationalizedintermsoftotalcustomersatisf
action(Evans,2005).Today’s
competitiveenvironmentrequiresorganizationstointegratetheactiv
itiesofeachfunctionaldepartment
whilekeepingthecustomerinmind.AneffectiveHRIShelpsbyprovid
ingthetechnologytogenerate
accurateandtimelyemployeeinformationtofulfillthisobjective.
e-HRMandHRIS
Confusioncanariseconcerningthedistinctionbetweene-
HRMandHRIS.Electronichumanresource
management,ore-
HRM,reflectsaphilosophyforthedeliveryofHR;itusesinformationt
echnology,
particularlytheWeb,asthecentralcomponentofdeliveringefficienta
ndeffectiveHRservices.This
philosophycanbebestseenthroughthewordsofGueutalandStone(20
05):“Thingswilllookabit
differenthere.NolongerwillyoudealwithanHRprofessional.…The
HRportalwilltakecareofyou”
(p.xv).Essentially,technologybecomesthenervecenterfordissemin
ating,connecting,andconducting
humanresources(Strohmeier,2007).Organizationsembracingane-
HRMapproachdon’tsimplyutilize
technologyinthesupportofhumanresourcesbutinsteadseetechnolo
gyasenablingtheHRfunctiontobe
donedifferentlybymodifying“informationflows,socialinteraction
patterns,andcommunication
processes”(Stone&Lukaszewski,2009,p.136).
Conversely,asconceptualizedinthisbook,anHRIScomprisesthetec
hnologyandprocessesunderlying
thisnewwayofconductinghumanresourcemanagement.AnHRIScan
includetechnologiessuchas
databases,smallfunctionalsystemsfocusedonasingleHRapplicatio
n(e.g.,performancemanagement),
oralarge-
scale,integratedenterpriseresourceplanning(ERP)architectureand
Web-based
applications.Intoday’senvironment,itcanevenbedevicessuchassm
artphonesandsocialnetworking
toolsthatenableemployeestoaccessHRdataremotelyortoconnectwi
thothersintheorganization.
Anotherwayoflookingatthedifferencesbetweene-
HRMandHRISisthate-HRMtendstobemore
focusedonhowHRfunctionalityisdelivered(e.g.,e-
recruitmentande-training),andanHRISismore
focusedonthesystemsandtechnologyunderlyingthedesignandacqu
isitionofsystemssupportingthe
movetoe-HRM.
WhyDoWeNeedHRIS?
UsingHRISgivesfirmsseveraladvantages(Beckers&Bsat,2002).Th
eyinclude
•providingacomprehensiveinformationpictureasasingle,integrate
ddatabase;thisenables
organizationstoprovidestructuralconnectivityacrossunitsandactiv
itiesandtoincreasethe
speedofinformationtransactions(C.A.Lengnick-Hall&Lengnick-
Hall,2006);
•increasingcompetitivenessbyimprovingHRoperationsandmanage
mentprocesses;
•collectingappropriatedataandconvertingthemtoinformationandk
nowledgeforimproved
timelinessandqualityofdecisionmaking;
•producingagreaternumberandvarietyofaccurateandreal-timeHR-
relatedreports;
•streamliningandenhancingtheefficiencyandeffectivenessofHRad
ministrativefunctions;
•shiftingthefocusofHRfromtheprocessingoftransactionstostrategi
cHRM;
•reengineeringHRprocessesandfunctions;and
•improvingemployeesatisfactionbydeliveringHRservicesmorequi
cklyandaccurately.
TheabilityoffirmstoharnessthepotentialofHRISdependsonavariet
yoffactors,suchas
•thesizeoftheorganization,withlargefirmsgenerallyreapinggreater
benefits;
•theamountoftopmanagementsupportandcommitment;
•theavailabilityofresources(time,money,andpersonnel);
•theHRphilosophyofthecompanyaswellasitsvision,organizational
culture,structure,and
systems;
•managerialcompetenceincross-
functionaldecisionmaking,employeeinvolvement,and
coaching;and
•theabilityandmotivationofemployeesinadoptingchange,suchasin
creasedautomation
acrossandbetweenfunctions(Ngai&Wat,2004).
InassessingthebenefitsandimpactofanHRIStoanorganization,typi
calaccountingmethodsdonot
workwiththeHRMfunction(Beckeretal.,2001;Cascio,2000;Fitz-
enz,2000,2002;Huselidetal.,
2005;Thite,2004;Ulrich&Smallwood,2005).Whilethereareseveral
tangiblebenefitsinimplementing
anHRIS,suchaspayrollefficienciesandareductioninlaborcostsduet
oautomation,thereareseveral
intangibleorhiddenbenefitsaswell(Roberts,1999).Theyincludeem
ployeesatisfactionwith
streamlinedandefficientHRprocessesandfreeingupHRfromroutine
,administrativematterstofocus
onstrategicgoals.
Furthermore,HRpracticescanhelporganizationsuntangletherigidit
yandinertiaassociatedwiththe
mechanistic,routinenatureofenterpriseresourceplanning(ERP).E
RPsoftwareapplicationsareasetof
integrateddatabaseapplicationsormodulesthatcarryoutthemostco
mmonbusinessfunctions,including
HR,generalledger,accountspayable,accountsreceivable,orderman
agement,inventorycontrol,and
customerrelationshipmanagement.Obviously,HRM’semphasison
knowledgemanagement,human
capitalstewardship,andrelationshipbuildingcanprovideconsidera
bleassistanceintheimplementation
anduseofERPs(C.A.Lengnick-Hall&Lengnick-
Hall,2006).Therefore,activeengagementofHR
professionalsintheintroductionandongoingfunctioningofanERPis
importantsothatorganizationscan
realizethestrategicbenefitsassociatedwiththesesystems(Dery&W
ailes,2005).
DifferentTypesofHRIS
Althoughtherearemultipletypologiesfortheclassificationofcompu
ter-basedsystems,wearegoingto
definethemostbasictypesofsystemsthataremostreadilyappliedtoth
eHRcontextandforusewithin
anHRIS.Althoughtherearemanywaysofcategorizinginformationsy
stems,oneofthemostcommon
waysofdoingthisistofocusonwhatleveloforganizationalprocessing
thesystemsupports:daily
operations,managerialfunctioning,executive-
levelprocessesandstrategies,andthosethatspan
organizationallevels.Table1.1catalogsthemajortypesofinformatio
nsystems,liststheirmajorfocus
andgoals,andprovidesexamplesofhowtheycanbeusedtosupporthu
manresources.
AsseeninTable1.1,specificcomputer-
basedsystemshavebeencreatedtosupportHRMatdifferent
organizationallevelswithapplicationsforHRM.Althoughlarge,glo
balorganizationshavelikely
implementedmost,ifnotall,ofthesetypesofsystems,itwouldbeunus
ualforsmalltomidsized
organizationstohavetheresourcestodoso.Despitethis,mostorganiz
ationswouldhavesomeofthese
systemsinplaceandwoulddependonthemtosupportoperationsandde
cisionmaking.Asyougothrough
thisbook,thesesystemsandtheirHRexampleswillbediscussed,andy
oushouldreferbacktothistable
asneeded.
SystemDevelopmentProcessforanHRIS
Accordingtoengineeringandinformationprocessingliterature,thef
ormaldesignofanyinformation
processingsystemissupposedtofollowasetofstepslabeledthesyste
msdevelopmentlifecycle
(SDLC).However,asSpragueandCarlson(1982)andotherwriters(A
ktas,1987;Davis,1983)have
noted,thetraditionalSDLCissomewhatdifficulttouseasoriginallys
pecified.Butthereisagreement
thattheSDLChasfivegeneralphases:(1)planning,(2)analysis,(3)de
sign,(4)implementation,and(5)
maintenance.Aswillbeseen,particularlyinPartsIandIIofthisbook,t
herearemultiplereferencesto
theSDLCanditsphases.
Kavanaghetal.(1990),applyingthemainconceptsandphasesofthetr
aditionalSDLCtotheHRM
function,recommendthefollowingsystemdevelopmentprocessfora
nHRIS:“TheHRISdevelopment
processreferstothestepstakenfromthetimeacompanyconsiderscom
puterizingitshumanresources
functionsthroughtheanalysis,design,development,implementatio
n,maintenance,evaluation,and
improvementofthesystem”(pp.92–
93).Thissystemdevelopmentprocessisquitesimilartotheone
proposedbyWalker(1982).Heindicatesthatdevelopmentofaneffect
iveHRISshouldfollowseven
stages:“ProposaltoManagement,NeedsAnalysis,SystemSpecificat
ions,SystemDesign,System
Development,InstallationandConversion,andEvaluation”(p.38).
Table1.1InformationSystemsProvidingSupportforHRM
Althoughthisbookwillcoverallthephasesinthedevelopmentandimp
lementationofanHRIS,thereare
twocriticalpointstobeemphasizedfromthesedescriptionsofthephas
esorstagesofsystem
development.One,thesystemdevelopmentprocessbeginswhenthec
ompanyfirstbeginstoconsider
computerizingitsHRfunctions.Itisimportanttodocumentthisbegin
ningoftheprocesssothatitcanbe
consideredwhenthesystemisbeingevaluatedandmaintained.These
condcriticalpointisthe
importanceoftheevaluationand,asneeded,theimprovementofthesy
stem.Thisevaluationmustbe
continuousandoccurnotonlyafterthesystemhasbeenimplementedb
utalsoateverystageofthe
development.Thequalityoftheseevaluationsofthesystemwilldepen
dheavilyonthedocumentationof
thestagesoftheentiresystemdevelopmentprocess.Thedocumentati
onoftheplanninganddevelopment
ofasystemisoneofthemostimportantdeterminantsofsuccessfulsyst
emimplementation,aswellasof
continuedsystemimprovement.
AModelofOrganizationalFunctioning
Asstatedinthepreviousparagraph,thedocumentationandevaluation
ofHRISdevelopmentand
implementationarecriticalsinceweenvisiontheeffectivefunctionin
gofanyorganizationasdependent
ontheeffectivemanagementofitsemployees.Theuseofcomputertec
hnologytoimprovethemanagement
ofemployeesiscenteredonthecreationandmaintenanceofanHRIS.F
igure1.3depictsanoverviewof
anHRISwithintheorganizationalandaglobalbusinessenvironment.
ThisfigureshowsatitscentertheHumanResourcesenvironmentandt
hemajorcomponentsofthat
environment(e.g.,HRPrograms).Thenextlayerinthefigurerepresen
tstheorganizationalenvironment
anditscomponents.Outsidetheorganizationalenvironmentistheglo
balbusinessenvironment,which
directlyinfluencestheorganizationalenvironmentandindirectlyaff
ectstheHRenvironment.Eachof
theselayersmutuallyinfluenceseachotherandtogethercanimpactth
edevelopmentandimplementation
oftheHRIS.Forexample,differinglaborlawsacrosscountriesmeant
hatdifferentHRpoliciesmaybe
implementedandmayaffectthetypeofdatacollectedbytheHRISandr
eportedtoregulatoryagenciesin
differentcompanies.Thefigurealsoindicatestheinterrelatednessbet
weenthestrategicmanagement
system;thestrategicHRMsystem;andtheperformance,business,and
HRgoalsthataregeneratedduring
thestrategicplanningprocess.Aswillbeemphasizedthroughoutthis
book,thealignmentbetweenthe
globalbusinessenvironment,thestrategicmanagementsystem,thest
rategicHRmanagementsystem,the
businessgoals,theHRgoals,andtheHRprogramsiscriticaltotheorga
nization’smaintenanceofits
competitivenessinthemarket(Evans&Davis,2005;Huselid,Jackso
n,&Schuler,1997).
Figure1.3OverviewofanHRISEmbeddedinOrganizationalandGlob
alBusiness
Environments
Thereareseveralaspectsofthismodelthatarecritical.First,thismode
lisaframeworktousein
reading,organizing,andunderstandingtheinformationgiveninthisb
ook.Second,thisisasystemsmodel;
thatis,itisorganicandcanchangeovertime,astheenvironmentchang
es(e.g.,theincreasingfocuson
unfairdiscriminationinsocietyandintheworkforcewillaffecttheHR
environmentandwill,inturn,
affecttheorganizationalandglobalbusinessenvironments).Third,th
emodeliscenteredontheuseofan
HRISascriticaltotheefficientoperationoftheorganization.Notethat
iftheHRISwereremovedit
wouldstillrepresentamodeloforganizationalfunctioning.However,
itisourcontentionthatan
organizationoperatingwithoutanHRISatitscorewouldnotbeabletoc
ompeteaseffectively.Thecosts
ofmanagingHRdatawouldjustbetooexpensiveinrelationtoitscomp
etitors.Fourth,theHRISandthe
HRprogramevaluationresults,intermsofHRmetricsandcost-
benefitresults(valueaddedandreturnon
investment—
ROI),areincontinualinteraction.Thisemphasisisconsistentwithcur
rentthinkinginthe
HRMfield(Cascio,2000;Fitz-
enz,2000,2002)andhasgeneratedtheHRworkforcescorecard
(Beckeretal.,2001;Huselidetal.,2005).Finally,itisimportanttonote
thatthesuccessfuldesign,
development,andimplementationofanHRISdependequallyonITan
donHRknowledge,whichisthe
basicphilosophyofthisentirebook.
ThemesoftheBook
TheoverallthemeofthisbookisthattheHRandITfunctionsoperatese
paratelyandtogetherinanHRIS
andarefocusedonprovidingaccurateandtimelyinformationformana
gerialdecisions,bothstrategicand
operational.Thereareotherthemesthatareemphasizedinthisbook,w
hichcanalsobeseeninFigure
1.3.Thesethemesarethemajorfactorsthatinfluencetheeffectiveoper
ationoftheorganizationthrough
theirimpactonmanagerialdecisions.Inaddition,theydirectlyaffectt
hesuccessofboththeHRM
programsandtheuseoftheHRIS.Thesefactorsareasfollows:
1.Theeffectivealignmentbetweenthestrategyofthefirm,theHRstrat
egy,andHRprograms,
2.TheimportanceoftyingHRMprogramstoITapplicationsanddatab
ases,
3.TheimportanceoflegalconsiderationsinallHRprogramsandfuncti
ons,
4.TheneedforacooperativerelationshipbetweenHRandITprofessio
nals,and
5.ThecriticalneedforthecreationanduseofHRmetricstoguidedecisi
onmakingand
evaluatethecost-effectivenessoftheHRstrategyandprograms.
Allthechaptersofthisbookwillcontainsomereferencetosomeorallof
thesefactors,andtheireffects
willbediscussedindetailineachchapter.
SUMMARY
Theprimarypurposeofthischapterwastointroducetheacademicand
practitionerfieldofhuman
resourceinformationsystems(HRIS),emphasizingthatanHRISisatt
heintersectionofITandHRM.
TheevolutionofthefieldofHRIS,fromitsinitialroleofarecordkeeper
concernedwithonly
transactionalHRactivities,suchaschangingaddressesonemployeer
ecords,tooneofbecominga
strategicpartnerwascoveredindetail.Thisevolutiondemonstratedth
at,asITimprovedovertime,so
didHRM,andtheseimprovementsmadetheirmarriageintoHRISthat
mucheasier.Theadvancesin
thefieldofHRISalsoledtoareductioninthepercentageoftimethatHR
professionalsspenton
routinetransactionalandtraditionalactivitiesandanincreaseinthepe
rcentageoftimespenton
transformationalones.Theincreaseintimespentontransformational
activitiesimprovesthe“value
added”byHRMprogramstothestrategicplanofanorganization.
AbasicprimeronHRISwaspresented,andthedifferenttypesofhuman
resourceinformationsystems
werediscussed,showinghowthedifferenttypesareneededfordecisio
nmakingatdifferentlevelsin
theorganization.ThedistinctionbetweenHRISande-
HRMwasexplainedtohelpthereaderavoid
confusingthesetermswhentheyappearintheremainderofthebook.In
addition,thechapterdiscussed
thedevelopmentofHRISandhowithashelpedenableHRMtobecome
astrategicpartnerin
organizations,whichthenledtotheemergenceofstrategicHRMasafi
eldofstudy.Variousstrategic
approacheswerediscussed,suchasHRinacontingencymodel,theHR
balancedscorecard,andthe
useofSixSigmainHR.
Amodeloforganizationalfunctioninginorganizationalandglobalbu
sinessenvironmentswascovered.
ThismodeliscenteredonanHRISandfocusesonhowthefeedbackfro
mresultsgeneratedbyanHRIS
caninfluencetheoperationoftheentireorganization.Thecentralthe
mesofthisbookwereemphasized,
andthereaderwasalertedtothefactthatthesethemeswilloccurthroug
houtthechaptersofthebook.
Finally,anoverviewofthestructureofthebookwasprovidedtodemon
stratetheconnectionsbetween
thechaptersofthebook.
KEYTERMS
“best-fit”approachtostrategicHRM
“best-practice”approachtostrategicHRM
“caretaker”functions
ComprehensiveOccupationalDataAnalysisProgram(CODAP)
cost-benefitratio
enterpriseresourceplanning(ERP)architecture
establishmentoflaborunions
HRbalancedscorecard
HRcontingencyperspective
HRmetrics
HRworkforcescorecard
humancapital
humanresourcemanagement(HRM)
humanresourcesplanning(HRP)
informationtechnology(IT)
Internet-enabledWebservices
jobanalysis
jobdescription
legislativecompliance
managementinformationsystem(MIS)
modeloforganizationalfunctioning
returnoninvestment(ROI)
scientificmanagement
SixSigma
strategicHRM—strategichumanresourcemanagement
systemsdevelopmentlifecycle(SDLC)
timelyandaccurateemployeeinformation
traditionalHRactivities
transactionalHRactivities
transformationalHRactivities
DISCUSSIONQUESTIONS
1.WhatarethefactorsthatchangedtheprimaryroleofHRMfromacare
takerofrecordstoa
strategicpartner?
2.DescribethehistoricalevolutionofHRMandHRISintermsofthech
angingroleofHRMandthe
influenceofcomputertechnologyonHRM.
3.Whatisrequiredfortheeffectivemanagementofhumanresourcesin
afirmtogainacompetitive
advantageinthemarketplace?
4.DescribetheemergenceofstrategicHRMandtheinfluenceofcomp
utertechnology.Whataresome
oftheapproachesusedinHRMtofacilitatetheuseofStrategicHRMin
afirm’sbusinessstrategy?
5.Howdoestechnologyhelpdelivertransactional,traditional,andtra
nsformationalHRactivities
moreefficientlyandeffectively?
6.JustifytheneedforanHRIS.
7.Describeanddifferentiatethemajortypesofinformationsystems.
8.Usingtheorganizationalmodelpresentedinthischapter,explainwh
yandhowtheglobalbusiness
environmentandorganizationalenvironmentinfluencethenaturean
dimportanceoftheHRIS
function.
CASESTUDY:POSITION
DESCRIPTIONANDSPECIFICATION
FORANHRISADMINISTRATOR
Onewaytoassessthenatureandimportanceofaparticularfunctionorp
ositioninanorganizationisto
examinethejobdescriptionandjobspecificationsforthisposition,ast
heytelluswhatactivities,
duties,andtasksareinvolvedinthejobaswellaswhatknowledge,skill
s,andabilities(KSA)are
requiredtoperformthejob.Thefollowingisanactualadvertisementfo
ranHRISadministrator.A
largecorporationplacedthisadinthe“JobCentral”sectionoftheInter
netsitefortheInternational
AssociationforHumanResourcesInformationManagement1(http://
www.ihrim.org).
HRISAdministrator
JobLevel:Senior(5+Years),Fulltime
Reportsto:SeniorDirectorofHumanResourcesOperations
PositionSummary
http://www.ihrim.org
MOMIRI,LLCisanAlabamaNativeOwnedCorporation,providings
haredservicestotheMOMIRI
familyofcompaniesandplanningandincubatingthenextgenerationo
fcompaniesservingfederaland
commercialcustomers.MOMIRIcompaniesoffercoreexpertiseintel
ecommunications,information
technology,productdevelopment,majorprogrammanagement,open
sourcesoftware,construction
management,facilityoperations,andoperationssupport.MOMIRIc
ompaniesrealizethatquality
personnelarethekeytooursuccess.Anexcellentbenefitspackage,pro
fessionalworkingenvironment,
andoutstandingleadersareallkeystoretainingtopprofessionals.
PrimaryFunction
TheincumbentwillserveasakeymemberoftheHRSupportServicesd
epartmentandprovide
professionalhumanresourcessupportinspecificfunctionsordiscipli
nestomanagementandstafffor
theMOMIRIfamilyofcompanies.Thispositionisviewedasgoingtoa
midlevelprofessionalwho
assistsmanagementandstaffwithHRprogramsatthetacticalleveland
performsallessentialduties
andresponsibilitiesatthedirectionoftheManagerofHROperations.
EssentialDutiesandResponsibilities
•Providestechnicalassistancetosenior-
levelHRstaffandmanagementonseveralHRprogramsto
includeemployeerelations,compensation,EEOcompliance,compa
nypoliciesandprocedures,
disabilityprograms(STD,LTD,FMLA,ADA),federalandstateempl
oymentlaws,andpersonnel
actionsasneeded.
•SupportsandmaintainstheHumanResourcesInformationSystem(
HRIS)inadditiontoothersystems
supportedbythemanagementofenterpriseapplications.
•Servesastechnicalpoint-of-
contactforassignedfunctionalareasandassistssubjectmatterexperts
withensuringdataintegrity,testingofsystemchanges,reportwriting
andanalyzingdataflowsfor
processimprovementopportunities.
•SupportsHRISandotherenterprisesystems’upgrades,patches,testi
ngandothertechnicalprojects
asassigned.
•Recommendsprocess/customerserviceimprovements,innovatives
olutions,policychangesand/or
majorvariationsfromestablishedpolicy.
•Servesaskeysystemsliaisonwithotherdepartmentsandprocessstak
eholders(e.g.,Payroll).
•Writes,maintains,andsupportsavarietyofreportsorqueriesutilizin
gappropriatereportingtools.
Assistsindevelopmentofstandardreportsforongoingcustomerneed
s.
•MaintainsdataintegrityinATS,HRIS,andotherenterprisesystemsb
yrunningqueriesandanalyzing
andfullyauditingdataacrossallHRdepartments.
•Conductsnewhirein-
processingtoincludesystemstrainingfornewemployeesandenterin
gnew
employeeinformationinCostpoint.
•Conductsterminationout-
processingtoincludeenteringemployeeseparationinformationin
Costpointandreportingattritiondata.
•Developsuserprocedures,guidelines,anddocumentationforHR-
relatedsystems.Trainssystem
usersonnewprocesses/functionality.
•ProvidesHRtoolsandresourcesformanagementandstafftoaccompl
ishtheirgoalsandobjectives.
•Processespersonnelactions(hires,terminations,pay&titlechanges
,promotions,employmentstatus,
etc.)toincludeenteringdataintoHRIS.
•AssistswithspecialHR-
relatedprojectsandprovidestrainingtootherstaffmembersasrequire
d.
•Performsotherdutiesasassigned.
Requirements
SpecializedKnowledgeandSkills
•Experienceworkingwithamultiple-siteworkforce.
•Workingknowledgeoffederalandstateemploymentlawsandrelated
acts.
•Advancedtoexpertlevelcomputerskills.
•Excellentverbalandwrittencommunicationandpresentationskills.
•Greatinterpersonalskills.
•Strongtime-managementandprioritizationskills.
Qualifications
•Bachelor’sdegreeinHRand/orequivalentprofessionalexperience.
•3–
5yearsoftechnicalHRISexperienceinprofessionalHRenvironment.
•Self-directed,highlyresponsive,anddetailoriented.
•Abilitytomaintainabsoluteconfidentialityinallbusinessmatters.
•Governmentcontractingexperienceisaplus.
CaseStudyQuestions
1.HowdoesthispositionhelptheHRfunctionbecomeastrategicpartn
eroftheorganization?
2.Fromthepositiondescription,identifythetraditional,transactiona
l,andtransformationalHR
activitiesthatthispositionisinvolvedwith.
3.Usingthekeyresponsibilitiesidentifiedforthisposition,explainw
hyandhowtheHRISfunction
playsapivotalroleintheorganizationalmodelasdescribedinthischap
ter.
STUDENTSTUDYSITE
VisittheStudentStudySiteathttp://www.sagepub.com/kavanagh3e
foradditionallearningtoolssuch
asaccesstoSAGEjournalarticlesandrelatedwebresources.
NOTE
1.Thenameofthecompanyintheadvertisementhasbeenchanged.
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DatabaseConceptsandApplicationsin
HumanResourceInformationSystems
JanetH.MarlerandBarryD.Floyd
EDITORS’NOTE
AsmentionedinthebookoverviewinChapter1,thischapterisfocused
onunderstandingdatabases
andtheapplicationsofITtothedevelopmentanduseofanHRIS.Altho
ughthischaptermaybea
reviewforsomestudents,thematerialinitiscriticaltounderstandingt
heremainingchaptersof
the book. As such, students may want to refer to this chapter as
they are studying subsequent
chapters.Thisintroductorychapterisalsoanexcellentexampleofthe
contributionofITtothefield
ofHRMinbuildinganHRIS.
CHAPTERObjectives
Aftercompletingthischapter,youshouldbeableto
•Discussthedifferencebetweendata,information,andknowledge
•Identifyproblemswithearlydatabasestructures
•Understandwhatarelationaldatabaseisandwhyitisbetterthanolder
databasestructures
•Discussthreetypesofdatasharingandwhytheyareimportant
•Knowwheredatainadatabasearestored
•Knowthedifferentwaysinwhichdatacanbedeliveredtotheenduser
•Knowwhataqueryisanddiscussthreedifferenttypesofqueries
•Discusshowqueriesareusedtosupportdecisionmaking
•DiscussthekeystepsinvolvedindesigningasimpledatabaseinMicro
soft(MS)Access
•KnowwhatthetopHRdatabasesare
•IdentifykeydatafieldsinanHRdatabase
•Understandthedifferencebetweenoperationaldatabasesandadata
warehouse
•DiscusshowbusinessintelligencesoftwarecansupportHRdecision
making
Introduction
Whetheranorganizationpurchases,leases,ordevelopsitsHRIS,thed
ataandtheinformationitproduces
arestoredandretrievedthroughadatabase.Today’sHRIShaveastheir
foundationelectronicdatabases
thatworkinconjunctionwithbusinessapplicationstotransformdatai
ntoinformationthatisessentialfor
businessoperationsandfordecisionmaking.Manybelievethatmanag
ingelectronicdatabasesand
turningdataintoaccessibleandactionableinformationisacompetenc
ynecessarytosucceedintoday’s
marketplace.Indeed,dataareproduced,stored,updated,andsharedb
yHRemployeesandmanagersona
dailybasis.Thisprocessissopervasivethatitoftengoesunnoticed.Ye
t,theeffectivecollection,storage,
integration,anduseofdataareessentialforanybusiness,andthemosts
uccessfulorganizationsare
mastersofthisprocess!
Inthischapter,weprovideaninsightintohowcommerciallydelivered
HRISdatabaseswork.Wedefine
keyrelationaldatabaseterminology,describehowadatabaseisstruct
ured,andshowhowtodevelopa
basicdatabaseusingMSAccess,abasicdatabasemanagementsystem
(DBMS),asanexample.We
discusshowDBMSsprovidethecapabilitytointegrateHRdataandtol
inkthisdatawithotherdata
essentialtotheoperationsofabusiness.Weclosebyprovidingexampl
esofHRISbuiltonMSAccessto
provideabasicunderstandingoflarger,morecomplexcommerciallyd
evelopedHRISdatabases.
Data,Information,andKnowledge
Dataarethelifebloodofanorganization.Theproductionandmaintena
nceofdataarecriticaltothe
smoothoperationofeverypartoftheorganization.Datarepresentthe“
facts”oftransactionsthatoccuron
adailybasis.Atransactioncanbethoughtofasaneventofconsequence
,suchashiringanewemployee
foraparticularpositionforaspecifiedsalary.Theorganizationattemp
tstocapturethedata(facts)
associatedwitheachofthesetransactions,suchasthedatehired,thena
meofthepersonhired,thetitleof
theposition,thelocationwherethenewhirewillwork,andsoon,andth
enstorethesedataforfutureuse.
Information,ontheotherhand,istheinterpretationofthesedata.Anint
erpretationofdataalwayshas
somegoalandcontextsuchasmakingahiringdecisionforaparticulard
epartmentorunderstandingthe
performanceofanemployeetomakeapromotiondecision.Notethatso
metimesthedatathemselvescan
beinformativewithoutanyadditionaltransformation(e.g.,thesalary
rangeofthejob).Butothertimes,
wemustdoadditionalwork(e.g.,calculatingtotalsorpresentingtheda
tainsomeorder)toturnthedata
intoinformationtoanswerimportantquestionssuchas“Whatisourful
l-timeemployeeheadcountin
CorporateSales?”or“Whichemployeeshouldbepromoted?”
Knowledgeisinformationthathasbeengivenmeaning(Whitehill,19
97).Knowledgeisdifferentfrom
dataandinformation.Morethanwhatandwhy,knowledgeisaboutho
w.Knowledge,therefore,consists
oftheproceduresonefollowstousedataandinformationtomakedecis
ionsandconductbusiness.In
manyinstances,suchproceduralknowledgeismostlyhidden,residin
ginthemindsofindividualsand
groupsintheorganization.Forexample,inHRIS,factsaboutage,gend
er,andeducationarethedata.
Informationcreatedfromthesedataincludesaverageage,genderratio
,andnumberandtypesofgraduates
atthebusinessunitlevel.SuchdataandinformationhelpHRmanagers
planrecruitment,scheduletraining
programstobridgeskillgaps,andidentifywhethertheremaybeemplo
yeediscrimination.Knowledge
representshowHRmanagerscanexecutetherecruitmentplan,decide
whichtrainingprogramsarebestto
bridgeskillgaps,ordeterminewhattodoifemployeediscriminatione
xists.IntheHRfunction,data
aboutemployeesandjobsarethefoundationofmostoftheinformation
thatiscriticaltoanalyzingand
makingHRdecisions.Knowledge,ontheotherhand,constitutesknow
ingwhatinformationisneeded
fromadatabaseandhowtouseittoachieveHRobjectives.
DatabaseManagementSystems
ADBMSisasetofsoftwareapplications(i.e.,computerprograms)co
mbinedwithadatabase.ADBMS
electronicallyallowsorganizationstoeffectivelymanagedata.Mana
gingdatameans
•identifyingthedataneededtocreateinformationthatisnecessarytom
akeHRdecisions,
•definingthecharacteristicsofthatdata(e.g.,numberdatavs.charact
erdata),
•organizingthosedatainamannerthatpromotesintegration,dataqual
ityandaccessibility,and
finally
•restrictingaccesstothedatatotherightpersonnel.
Byperformingthesefunctionseffectively,aDBMSturnsdataintoano
rganizationalresource.
Adatabaseisasetoforganizeddata.Importantly,itisapermanent,self
-descriptivestoreofinterrelated
dataitemsthatcanbeprocessedbyoneormorebusinessapplications.S
elf-descriptivemeansthatthe
databaseknowsaboutthecharacteristicsofthedata(e.g.,thelengthof
anemployee’slastnamecanbeno
greaterthan30characters)orthatapaycheckcanonlybeassociatedwit
honeemployee.Interrelated
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Deliverable 5 - Hypothesis Tests for Two SamplesCompetencyForm.docx
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Deliverable 5 - Hypothesis Tests for Two SamplesCompetencyForm.docx
Deliverable 5 - Hypothesis Tests for Two SamplesCompetencyForm.docx
Deliverable 5 - Hypothesis Tests for Two SamplesCompetencyForm.docx
Deliverable 5 - Hypothesis Tests for Two SamplesCompetencyForm.docx
Deliverable 5 - Hypothesis Tests for Two SamplesCompetencyForm.docx
Deliverable 5 - Hypothesis Tests for Two SamplesCompetencyForm.docx
Deliverable 5 - Hypothesis Tests for Two SamplesCompetencyForm.docx
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Deliverable 5 - Hypothesis Tests for Two SamplesCompetencyForm.docx
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Deliverable 5 - Hypothesis Tests for Two SamplesCompetencyForm.docx
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