hr administration and hris module 05. module 5 objectives understand the basic role of job analysis...

HR Administration and HRIS

Module 05

Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

Module 5 Objectives Understand the basic role of job analysis in human resources, and explain the role of HRIS

in supporting job analysis. Discuss the complexity of HR administration and the advantages of an HRIS over a “paper-

and-pencil” HR operation. Discuss the advantages of service-oriented architecture (SOA) of the HRIS. Discuss the advantages and disadvantages of each of the four structural approaches to HR

administration. Understand how legal compliance with government mandates is an important part of HIRS

functionality. Understand employee and manager self service systems.

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CHAPTER 10

HR Administration and HRIS

TRANSACTIONAL HR ACTIVITIES

Transactional Activities Make Up 65-75% Of All HR Activities.

Examples Of HR Administration Include:

Benefits Administration

Record Keeping

Employee Services.

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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012

SAGE Publications, Inc.

INTRODUCTION TO HR ADMINISTRATION AND THE HRIS ENVIRONMENT

HRIS Employee Database (BEIM) Must Be Carefully Constructed

Record And Repository For All Relevant Employee Information

Must Be Created Prior To Other Modules For Programs

The Role Of HRIS Is To Enhance Efficiency - Reducing Costs) Effectiveness - Adding Value For ‘Internal’ Customer

Satisfaction

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JOB ANALYSIS

Job Analysis The Process Of Systematically Obtaining Information

About Jobs By Determining The Duties, Tasks, Or Activities Of Jobs,.

Job Descriptions Define The Working Contract Between The Employee

And The Organization The “Heart” Of The HRM System Critically Important That They Be Accurate And

TimelyHR Department Should Capture And Store The Results Of The Job Analysis And Job Descriptions Within The HRIS

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STEPS IN JOB ANALYSIS

1. Indentify Sources Of Information About The Job

2. Identify The Type Of Job Information Or Data

3. Determine The Methods Of Collecting The Job Data

Use Standardized Techniques To Do Job Analysis (e.g. Functional Job Analysis, The Position Analysis Questionnaire System, The Task Inventory Analysis, And The Critical Incident Method

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HRIS APPLICATIONS IN JOB ANALYSIS

The Utilization Of Technology Has Dramatically Increased The Availability Of Information Supporting Job Analysis And The Convenience Of Conducting Job Analysis.

O*Net Database hr-guide.com Vendors Offer Stand-alone Products Or Components

Of A Larger Product Offering. Completing Job Analysis And Deriving Job Descriptions

Can Be Accomplished Through Online Survey Techniques.

Maintaining Accurate Job Descriptions Can Also Be Aided By An HRIS.

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HR ADMINISTRATION & HRIS

Can Improve Efficiency Of HR Administration:

Can Improve Data Accuracy

Can Speed The Process Of Building Reports

Can Support Differences In Reporting Mandated By

Global Governmental Jurisdictions

Can Support Secure Global Distribution Of Data

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ENABLING ARCHITECTURE

Service Oriented Architecture (SOA)

Collection Of Internal And External Services That Can Communicate With Each Other

Extensible Markup Language (XML)

Allows Data Sharing Across Different Information Systems Across The Internet

Improves Interface Technology Through Platform Independence And Protocols

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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE

Publications, Inc.

SOA BUSINESS MODELING PROCESS Figure 10.1

SOURCE: Marks and Bell (2006, chap. 3).

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ADVANTAGES OF XML-ENHANCED SOA

Improved Security

Enhanced Performance

Added Auditing & Change Capabilities

Enables Alternate Delivery Models

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TYPICAL HRM ADMINISTRATION SERVICE DELIVERY ALTERNATIVES Figure 10.2

Self-service portal

Shared service center

Outsourcing Offshoring

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THEORY AND HR ADMINISTRATION

Resource-Based Theory

Physical, Organizational & Human Capital

Innovative Combinations Of Technology, Systems & Intellectual Capital Generate Competitive Advantage

Eg. Wal Mart’s Just-in-time Supply Chain Management

Transaction Cost Theory

Choose To Purchase Goods And Services They Need In The Competitive Marketplace Or Make Those Goods And Services Internally

Make Or Buy. Eg., Full-time Vs Temp Employees

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Publications, Inc.

SELF SERVICEC PORTALS AND HRIS

Employee Self-Service (ESS) HR Portals

Provide An Electronic Means For A Company’s Employees To Access Its HR Services And Information.

Manager Self-Service (MSS) Portals

Specialized ESS Portal Designed To Allow Managers To View Extensive Information About Their Subordinates And Perform Many Of Their Administrative Tasks Electronically.

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COMMON SELF SERVICE APPLICATIONS

Employee Self-Service Distribution Of Pay Advice; Administration Of Leave;

Update Personal Details; Administer Training; Employee Surveys; Distribute Reports; Timesheet Entry

Manager Self-Service Complete Job Requisitions; View Resumes Of

Prospective Applicants; Performance Appraisals, View And Prepare Merit Increases, Viewing Subordinate Salary, Performance, And Training Histories

Non-Employee Self-Service Job Postings And Applications

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CommunicationsBenefits Services Personal Data Development

Review company communications

Research and view plan rules and requirements

Update emergency contact, address, telephone information

Enroll in training courses

Access company policies or procedures

Enroll in cafeteria-style programs (medical, dental, insurance)

Correct errors in personal data (degree, graduation date)

View completed training

Access HR policy manuals and e-mail inquiry/help request

Add and/or delete dependents

Change W-4 withholding forms

Access e-learning internal/external courses

Complete employee surveys or 360o feedback data

Model retirement and/or access 401K savings investment records

View previous/current pay and performance information

View/apply for internal job vacancies

View/respond to personal information requests from HR

Model health plan alternatives’ costs (e.g., HMO, PPO)

Enter time reports, vacation/sick days, and travel expense reports

Complete employment tests for new jobs

SAMPLE EMPLOYEE SELF-SERVICE (ESS) FUNCTIONALITY Table 10.1

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EVALUATION OF SELF SERVICE PORTALS

Advantages Improved Speed & Quality Of Service Reduced Enquiry Transactions &

Dependency On HR Which Reduce Costs

Disadvantages Security Breaches & Identity Theft Data Privacy Admin Staff Pushing Admin Work To Others

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SHARED SERVICE CENTERS (SSCs) Shared Services

A Collaborative Strategy where Staff Functions Are Concentrated In A Semi-autonomous Organization And Managed Like A Business Unit To Promote Greater Efficiency, Value Generation And Improved Service For Internal Customers. (Goh et al. 2007, p. 252)

Flexibility Over Control

Services Covered: Finance, HR, IT, Purchasing, Real Estate Mgt., Legal, General Admin, Talent Mgt., Fleet Mgt.

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SHARED SERVICE CENTERS To Demonstrate Its Value To The

Organization, SSCs Should Establish Measures/ Metrics That Demonstrate:

Customer Satisfaction Levels

Productivity

Cost Controls

Quality

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FUNCTIONS IN SHARED SERVICES Figure 10.3

SOURCE: Powell (2004).

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SHARED HR SERVICES

Internal HR Dept. As A Strategic Business Unit (SBU) Competes With Outside Providers For Providing These Services To Other Internal Departments

Costs

Quality

Value

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EVALUATION OF SHARED SERVICES

Advantages: Focus On Delivering Timely, High Quality

Transactions; Focus On Customer Satisfaction; Encourage Efficiency And Standardization; Facilitate Development Of Measures Of Efficiency, Quality, And Customer Responsiveness

Disadvantages: Costs Overriding Long Term Quality; Lack Of

Synergy; Power Shifts Between Depts; Depersonalization (Technology Replacing People Touch)

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OUTSOURCING AND HRIS

Practice Of Contracting With Vendors To Perform HR Services And Activities

Focus On Core Competencies – Core & Non-core Functions/ Processes

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HR PROCESSES OUTSOURCED Figure 10.4.

SOURCE: EquaTerra (2007, p. 4).

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Publications, Inc.

TYPES OF HR OUTSOURCING Discrete/ Selective Outsourcing

Outsourcing Only Particular Function (Eg., Recruitment) Or Part Of A Function (Eg., Executive Recruitment)

Multi-process/ Blended Outsourcing Outsourcing All Of One Or More Related HR

Functions (E.G., Recruitment And Selection; Defined And 401K Retirement Plan Administration)

Total Outsourcing Having All, Or Nearly All, HR Functions

Handled By One Or More External Vendors 26Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource

Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

SOURCE: EquaTerra (2007, p. 4).

SELECTIVE VERSUS COMPREHENSIVE OUTSOURCINGFigure 10.5

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Publications, Inc.

EVALUATION OF OUTSOURCING

Advantages

Cost Savings

Performance

Improvements

Flexibility

Focus On Core

Activities

Disadvantages Loss Of Control

Strategic Benefits Realized By Very Few

Loss Of Knowledge or Internal Expertise

Loss Of Jobs – Insecurity

Managing Costs

Costs Of Mismanagement

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Publications, Inc.

OUTSOURCING

Backsourcing Bringing HR functionality back “in-house”

after originally outsourcing

Offshoring HR Outsourcing with Vendors Outside The

Country

Enabled By Broadband & Internet Technologies

Primarily Utilized To Reduce Costs And Increase Profits 29



SOURCE: Hatch (2004, p. 14).

MOTIVATIONS FOR OFFSHORING Figure 10.6.

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Publications, Inc.

TYPES OF HR OFFSHORING

Offshore Ownership

Opening A Subsidiary

Joint Venture

Purchasing An Existing

Firm.

Offshore Outsourcing

Traditional Contractual Relationship With An Existing Firm

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Publications, Inc.

OFFSHORING

HR Managers Reported That Most Common Offshoring Includes: Manufacturing (43%) IT (29%) Computer Programming (22%), Customer Call Centers (29%), HR Functions (16%).

Esen, 2004

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CONSIDERING OFFSHORE OWNERSHIP?

Higher Risk Associated With Offshore Ownership

Important to Consider Availability Of Employee Knowledge, Skills, And

Abilities Information And Communication Systems

Compatibility With HRIS Government Regulations And Legal Employment

Regulations Political Stability Of The Country And Employee

Security Cultural Differences 33



LEGAL COMPLIANCE U.S. Employment Laws Underpin The General

Principles Used In The Practice Of HRM. Compliance With Local, National, International

Labor Laws EEO, AA, Employment Awards/ Agreements, Health &

Safety HRIS Assists In:

Increasing Efficiency, Quality, And Cost Reduction In Fulfilling Reporting Requirements

Accurate, Timely Recordkeeping And Reporting Better Tools: Self Reporting; Electronic Report

Submission Enhancing Data Privacy & Security: ‘Need To

Know’ Basis34



HR ADMINISTRATION AND EQUAL EMPLOYMENT OPPORTUNITY

U.S. Civil Rights Act Of 1964, Title VII Provides EEO Requirements

Additional Requirements for Federal Contractors (with over $50K in business)

Affirmative Action Plan (AAP) Age Discrimination In Employment Act (ADEA) Americans With Disabilities Act (ADA

Equal Employment Opportunity Commission (EEOC)

Gathering Data Investigating Alleged Violations Bringing Legal Charges Against Employers Who Fail

To Comply35



EEO/AFFIRMATIVE ACTION PLAN (AAP) ADMINISTRATIVE FUNCTIONSFigure 10.7

AA planning and program

monitoring

EEO/AAP legal support

EEO recordkeeping and reports

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Publications, Inc.

EEO-1 REPORT (Standard Form 100)

Employers With 15 Or More Employees Must Keep Records Regarding Compliance With

Law Based Category (Professional, Technical, Managerial, Craft)

Sex Race/Ethnicity

Revised Reporting Instructions Include Designated Racial/Ethnic Categories Columns For Reporting Individuals Who Specify More

Than One Race/Ethnicity Employees “Self-identify” Rather Than Relying On

The Employer’s Visual Categorization (EEOC, 2006)

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EEO-1 CHANGES AND HRIS

Recent Changes to EEO-1 Reporting may cause organizations to need to update their systems

Track Race Separately From Ethnicity

Separate Codes For Asian And Native Hawaiian Or Other Pacific Islander

Modify Limitations On Reporting to Allow Reporting of More than One Race

Insure Queries Can Identify All Individuals In A Particular Category (E.G., American Indian), Even When Individuals Self-identify As Two Or More Race Categories

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SOURCE: U.S. EEOC (2006).EEO-1 REPORT Figure 10.8

39Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

OCCUPATIONAL SAFETY AND HEALTH ACT (OSHA) RECORD KEEPING

Developed To Establish That Employers Must Provide A Workplace Free Of Known Hazards Likely To Cause Death Or Serious Injury

Requirements For Businesses With 11 Or More Employees, OSHA

Compliance Officers Are Required To Arrive Unannounced For An OSHA Inspection

Required To Notify OSHA Within 8 Hours Of Any Accident Involving Fatality Or In-patient Hospitalization Of Three Or More Covered Employees

Complete An Annual OSHA Form 300

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OCCUPATIONAL HEALTH AND SAFETY ADMINISTRATIVE FUNCTIONS Figure 10.9.

Accident reporting and recordkeeping

Safety and Health training records

Workers’ Compensation

Claims

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OSHA Form 300 Figure 10.10

SOURCE: U.S. Department of Labor (2004).

42Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource

Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

IMPROVED GOVERNMENTAL REPORTING WITH TECHNOLOGY

HRIS Records Can Be Established at time of Employee Application

Simple Queries Can Secure Required Employee Data

Required Reporting Information Can Be Sent Quickly

Reduced Disruption of Operations HR Employees Can Handle The Complete Reporting

Function Changes In Mandated Reporting Requirements can

be Handled Mechanically By HR Electronic Reporting Ensures Timely Receipt Of

Reports43



PRIVACY AND SECURITY IN HRIS

The Underlying Principle For Database Security And Individual Privacy Is The ‘Need To Know’ Rule.

Privacy Act 1974

Fair Credit Reporting Act 1970

Family Education Rights and Privacy Act 1974

Electronic Communications Privacy Act 1986

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HRM AND THE BALANCED SCORECARD

Balanced Scorecard Both a Management And Measurement System “Enables Organizations To Clarify Their Vision And

Strategy And Translate Them Into Action, . . . [Providing] Feedback Around Both The Internal Business Processes And External Outcomes To Continuously Improve Strategic Performance And Results” (Arveson, 1998).

Measures Reflect The Value-added Nature Of HRM In Leveraging Human Capital and are Linked To The Strategic Goals Reflected In A Firm’s Balanced Scorecard.

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Figure 9.11. Balanced Scorecard Components

SOURCE: Arveson (1998).

Figure 10.11. Balanced Scorecard Components

46Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012


SAMPLE HR-BALANCED SCORECARD LINKAGE Figure 10.12

LEARNING & GROWTH: HR Training to develop new employee skills

INTERNAL PROCESSES:Improved productivity

CUSTOMER On-time delivery Customer satisfaction

FINANCIAL:Return on Assets (Human Capital)

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ALIGNING THE HR SCORECARD & ORGANIZATION BALANCED SCORECARD

1. Specify The Business Strategy To Be Supported (E.G., Customer Retention)

2. Identify Leading (E.G., On-time Order Delivery) And Lagging (E.G., Customer Satisfaction Levels) Indicators

3. Identify Associated Internal Processes (E.G., Worker Productivity, Product Quality)

4. Identify HR Linkages (E.G., Training, Rewards)5. Specify The HR Strategy (E.G., Offer Enhanced Productivity

Training For Workers To Reduce Product Time-to-market And Insure On-time Order Delivery)

6. Measure: Worker Productivity Increase, On-time Deliveries, Customer Complaints To Demonstrate The Strategic Value Of HR Training in the “Learning” And “Growth” Balanced Scorecard Categories

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SAMPLE HR SCORECARD MEASURES LINKED TO FIRM BALANCED SCORECARD Figure 10.13

HR Functions To Support Learning & Growth Category (E.G., Employee Development)

Backup Talent Ratio—value CreationCompetency Development Expense Per Employee—cost ControlNo. Of “Special Projects” For Employee Development—value CreationNo. Of Employees With Development Plans—cost Control

HR Internal Efficiency Measures To Support Financial Category

HR Departmental Expense/$ Of Sales Revenue—cost ControlHR Sales Training Expense/$ Of Sales Revenue—value CreationHR Recruitment Expense/R&D Hires—cost ControlNo. Of Patents Per R&D Hires—value Creation

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hr administration and hris module 05. module 5 objectives understand the basic role of job analysis...

Documents

job analysis job analysis

functional job analysis

hris slide

type of job information

job descriptions

basic role of job analysis

hris applications

role of hris