Chapter 21Chapter 21Human Resource

Information Systems

MANAGEMENT INFORMATION SYSTEMS 7/ERaymond McLeod, Jr.

Copyright 1998 Prentice-Hall, Inc.

The HR manager is often a The HR manager is often a director who is not a director who is not a

member of the executive member of the executive committee.committee.

The importance of the human resourcefunction and the human

resources information system hasgrown over the last ten years

Recruiting Hiring Education& Training

Terminat-ion

BenefitAdministration

PotentialEmployees Employees Retired

Employees

Data Management

The Firm

Primary HR ActivitiesPrimary HR Activities

The HRISThe HRIS

The name HRMS (Human Resource Management System) is catching on in industry.

1990/91 HRSP Survey 1990/91 HRSP Survey (513 firms)(513 firms)

Mostly large companies 2,000 organizations represented in the U.S.,

Canada, and other countries More than one third of the respondents were

multinational

The HRIS UnitThe HRIS Unit

Usually a part of HR (73.5%). Can be in IS (8.4%) Size ranges from 0 to 260 employees Usually not subdivided (65.9%)

The Evolution of the HRISThe Evolution of the HRIS First, paper files were located in the Personnel

department. Then, punched card and magnetic media files were

located in IS. Government legislation in the 1960s and 70s

eventually called management's attention to the importance of HR data.

In the late 1970's the concept of an HRIS was born.

An HRIS ModelAn HRIS Model

The problem is the packaging of so many different applications

Accountinginformation

system

Human resourcesresearchsystem

Manufacturingintelligencesubsystem

Work forceplanning

subsystem

Work forcemanagementsubsystem

Benefitssubsystem

Internalsources

Environmentalsources

Inputsubsystems

Outputsubsystems

Users

Data Information

Environmentalreporting

subsystem

HRISDatabase

HRIS ModelHRIS Model

Recruitingsubsystem

CompensationSubsystem

Accounting Information Accounting Information SubsystemSubsystem

Two main types of data1. Personnel -- name, birth date, sex, marital

status, education, skills, etc.2.Accounting -- hourly rate or monthly salary,

taxes, insurance deductions, etc.

Human Resources Human Resources Research SubsystemResearch Subsystem

Examples: - Job analyses and evaluations- Succession studies- Grievance studies

This research can generate new data for the database (job analyses)

And it can use existing database contents (succession studies)

Human Resources Intelligence Human Resources Intelligence SubsystemSubsystem

HR has the responsibility for interfacing with the most environmental elements of any functional area.

Government -- stay current on legislation. File reports. Suppliers -- employment services Labor unions, local community, competitors -- sources of

employees Global community intelligence Financial community -- employee planning Competitor intelligence

Environmental Human Environmental Human Resources DatabasesResources Databases

Executive search firm databases University databases Employment agency databases Public access databases Corporate job banks

The HRIS DatabaseThe HRIS Database

Type of data:

1. Employee82.5% of the firms maintain only employee data

2. Nonemployee8% of the firmsmainly organizations external to the firm

Possible HRIS Database Possible HRIS Database LocationsLocations

Firm'scentral

computer

HRcomputer

Operatingdivision

computer

Outsideservicecenter

0

100

200

300

400

Firm'scentral

computer

HRcomputer

Operatingdivision

computer

Outsideservicecenter

342

174

52 32

Database LocationDatabase Location

Operating division -- decentralized Outside service center -- outsourcer Central computer is still the most popular

location HR computer in only 34% of the firms Some firms keep database in multiple

locations

Executives

Non HR

10 3 41 12 3 4 5

(2.78)

Managers

(3.09)

HRDirector(3.79)

Other HRManagers

(4.33)

Not at all Occasionally Monthly Weekly Daily

Users of the HRIS DatabaseUsers of the HRIS Database

PeriodicReports

DatabaseQueries

MathematicalModels

ExpertSystems

94.584.4

34.7

8.7

PeriodicReports

DatabaseQueries

MathematicalModels

ExpertSystems

Percentage of firms

reporting output types

Basic Forms of HRIS OutputBasic Forms of HRIS Output

SoftwareSoftware

Custom software is usually developed jointly by HR and IS

Some software is integrated into a core HRIS

Some is standalone

Work Force Planning Work Force Planning SubsystemSubsystem

Enable manager to identify future personnel needs

Organization charting Salary forecasting Job analysis/evaluation Planning Work force modeling

Number of Firms Using Number of Firms Using Work Force Planning ApplicationsWork Force Planning Applications

In BeingApplication name use developed _____________________________________________ Organization charting 238 58 Salary forecasting 237 47 Job analysis/evaluation 176 66 Planning 68 61 Work force modeling 66 29 _____________________________________________Totals 785 261 Percent applications in use: 75

Recruiting SubsystemRecruiting Subsystem

Applicant tracking

Internal search

Number of Firms Using Number of Firms Using Recruiting ApplicationsRecruiting Applications

In Being Application name use developed

____________________________________________Applicant tracking 235 98 Internal search 111 56 ____________________________________________Totals 346 154

Percent applications in use: 69

Work Force Management Work Force Management SubsystemSubsystem

Performance appraisal Training Position control -- ensuring that headcount does

not exceed budgeted limits. Relocation Skills/competency Succession Disciplinary

Number of Firms Using Number of Firms Using Work Force Management Work Force Management

ApplicationsApplications In Being Application name use developed

_____________________________________________Performance appraisal 244 60 Training 216 102 Position control 177 108 Relocation 121 33 Skills/competency 115 107 Succession 110 102 Disciplinary 63 39 _____________________________________________Totals 1046 551 Percent applications in use: 65

Compensation SubsystemCompensation Subsystem

Most systems in use

Merit increases Payroll Executive compensation Bonus incentives Attendance

Number of Firms UsingNumber of Firms UsingCompensation ApplicationsCompensation Applications

In Being Application name use developed ___________________________________________ Merit increases 404 36 Payroll 389 21 Executive compensation 273 39 Bonus incentives 230 31 Attendance 191 69

_____________________________________________Totals 1,487 196

Percent applications in use: 88

Benefits SubsystemBenefits Subsystem

Defined contribution Defined benefits Benefit statements Flexible benefits Stock purchase Claims processing

Number of Firms UsingNumber of Firms UsingBenefits ApplicationsBenefits Applications

In Being Application name use developed

_____________________________________________ Defined contribution 275 38 Defined benefits 270 47 Benefit statements 234 57 Flexible benefits 195 55 Stock purchase 149 16 Claims processing 88 11 _____________________________________________Totals 1211 224 Percent applications in use: 84

Environmental Reporting Environmental Reporting SubsystemSubsystem

Reporting firm’s personnel policies and practices to the government

EEO records EEO analysis Union increases Health records Toxic substance Grievances

Number of Firms UsingNumber of Firms UsingEnvironmental Reporting Environmental Reporting

ApplicationsApplications In Being

Application name use developed _____________________________________________EEO records 402 43 EEO analysis 352 47 Union increases 165 13 Health records 102 41 Toxic substance 80 32 Grievances 66 31 _____________________________________________Totals 1,167 207 Percent applications in use: 85

Executive Perception ofExecutive Perception ofHRIS ValueHRIS Value

HRIShas littlevalue

HRIS isvalued lessthan othersystems

HRIS isvalued on apar withother systems

HRIS isvalued higher thanother systems

HRIS isthe most highly valued

9

185

242

4

Top mgmtis unawareof HRIS

2531

Users of HRISUsers of HRIS

HR director X X X X X XOther executives X X X X X XCompensation/benefits manager X XHR planning manager XEmployee/labor relations manager X XEEO/AAP manager X X X X X XRecruiting & selection dvlpmnt mgr X XTraining manager XManager of accounting X XPayroll manager X XOther managers X X X X X X

Work Force

Planning

Recruiting

Work Force

Managem

ent

Com

pensation

Benefits

Env i ronm

entalR

eporti ng