HRIS PLANNINGBSMH3093 HUMAN RESOURCE INFORMATION SYSTEM

Steps in Computerizing HR functions

Phase 1: System

planning

Phase 2: System design

Phase 3: System

development / Vendor

selection

Phase 4: System

implementation

Phase 5: System

maintenance and evaluation

Steps in the planning process

1

•Establishing the project team

2

•Defining system requirements

3

•Performing a feasibility analysis

4

•Obtaining support for the HRIS

Establishing the project team

1. Project leader2. Project team

The role of project team•Responsible for system planning, design,

and implementation.•Acts as a liaison with any consultants

involved in HRIS design and development.

Project leader•Successful HRIS development requires a

full-time project manager.

•2 choices1. Outside consultant – an HRIS expert2. An individual from the HR department

WHO WOULD YOU CHOOSE?

Characteristics of the HRIS project leader:

•Fulltime responsibility on the project•Reports to the HR department•Have well-developed project management

and communication skills, and work comfortably with top management

•Have thorough understanding of the HR department’s operations

•Have thorough knowledge of every HR area

Team members

•Each member should receives a project assignment appropriate to his or her background, skills and experience.

•The scope of the proposed HRMS plays a key role in determining the size of the project team

•For large projects, team members may include representative from key HR functions, finance, and IS, as well as HRIS consultants.

Steering Committee•Management level•Consists of HR manager, IS manager and

other central decision makers in the organization (i.e. top management, finance, strategic planning, and line functions of the organization

•They meet periodically to 1. resolve high-level policy issues, 2. review the feasibility of the proposed

HRIS,3. monitor project progress

PLANNING AND DESIGN ISSUES

Major issue in developing HRIS

• Quality information• Functionality• Input & processing capabilities

• Output capabilities• User appropriateness

Major issue

Criteria for Quality information

•Differences between data and information

•Reliable information

•Timely information

•Comprehensive information

•Readable information

•Significant and relevant information

Major issue

Functionality Input & processing capability

•Modularity•Utility functions

•Integration and interfacing

•Speed•Efficiency•Information retrieval

•Database size and format

Major issue

Output capabilities

User appropriateness

•Printing and report design

•Security•Distribution needs

•User sophistication•Coding•documentation

DEFINING SYSTEM REQUIREMENTS

Techniques for requirements definitions

Techniques for requirements definitions

Evaluating current system

Evaluating another HRIS

User interviews and surveys

Business system analysis

Scenario analysis

Prototyping

PERFORMING THE FEASIBILITY ANALYSIS

Feasibility Analysis

Technical Evaluation

Administrative

Evaluation

Economic Evaluation

Technical evaluation•Considers the functional and technological

aspects of the system.•The purpose:

▫reviewing the existing system and vendor market to determine the extent to which current and commercial software can fulfill defined requirements;

▫evaluating the ease of performing internal and external adaptation of such software to meet the organization’s additional requirement; and

▫addressing conflicts between standard software and the organization’s culture.

Technical evaluation•Based on the findings of the evaluation,

the project team usually determines specific technological approaches to meet the organization’s HRIS requirements.▫manual versus automated approaches, ▫separate versus integrated or interfaced

systems, ▫making or buying a system, and ▫the products of several different HRIS

vendors.

Administrative evaluation

•investigates the impact of corporate culture, organizational structure, management support, business cycles, competing priorities and resource availability on: ▫staffing, ▫training, ▫scheduling, and ▫other procedural aspects of the project.

Economic evaluation

Provides a cost-benefits value analysis. It begins with establishing the costs, benefits, and values of the existing systems. Then, it measures the costs, benefits, and values of the proposed system against those of the existing systems.

Costs Benefits

Intangible benefits

Cost avoidance

Direct savings

Operating costs

Implementation costs

Acquisition & development costs

Economic evaluation

•3 broad categories of costs:▫Acquisition and development costs –

hardware, software, salaries for project team, and consultant fees

▫Implementation costs – conversions, training, staff salaries, and design and printing form

▫Operating costs – ongoing staff salaries, training, outside services, forms, maintenance, and upgrades

Economic evaluation

•3 broad categories of HRIS benefits:▫Direct savings – reduction in staff, facility,

space, outside services, and consumables (such as papers and ribbons)

▫Cost avoidance – current system inflation, maintenance of unauthorized systems, additional staff, hardware maintenance, and potential lawsuits

▫Intangible benefits – productivity improvements, better information and decision making, greater accuracy, more timely response, higher reliability, and increased flexibility

OBTAINING USER SUPPORT

USER SUPPORT• To make management

understand and appreciate the intangible advantages of the proposed HRIS

• Everyone should understand that the feasibility study report provides estimates of time and costs but not guarantees.

IMPORTANCE AND CHALLENGES OF HRIS PLANNING PROCESS

The importance of planning• the overall system requirements and

strategies need to be developed• decisions must be made on whether:

▫ there is a need for new applications or just an upgrade to the existing ones

▫ the planned systems should be developed internally or acquired from a vendor

▫ the system should be integrated with other systems or be one stand-alone system

▫ the users need to acquire extensive computer experience or none at all

▫ the users have access to computer support or they have to function in relative isolation

The challenges of planning•The process is becoming increasingly

complex as most of the technology associated with HRIS is new▫HRIS are also becoming more diversified in

terms of size, application domain, and underlying technology. Hence, planning for the best technologies that match HR and business’s needs presents a great challenge

▫Planners cannot make accurate prediction regarding the amount of time required, the budget, and other resources because they are in a state of ignorance when setting out the project plan.

Problems that could result in project delays

• Unexpected employee turnover, particularly on the HRIS project team

• Lack of vital information concerning the project• Poor communication between IS staff and users• Project team members do not adequately

understand HRIS requirements and computer technology

• Changing demands; redefinition of goals and priorities

• New security and privacy issues• New government regulations

QUESTIONS??????