hrmis, kpis and accountability

HRMIS, KPIs and Accountability

www.sparc-nigeria.com

Contents

• Introduction to Information System• Information System and the HR Function• What is an HR Management Information

System (HR MIS)?• Why HR MIS?• HR MIS & KPI• Criteria for effective Performance Indicators• Conclusion


Introduction

• An information system is any combination of information technology and people's activities that support operations, management and decision making.

• In a very broad sense, the term information system is frequently used to refer to the interaction between people, processes, data and technology.

• In this sense, the term is used to refer not only to the information and communication technology (ICT) that an organisation uses, but also to the way in which people interact with this technology in support of business processes.


Information Systems

• Management Information System (MIS)• Decision Support System (DSS)• Executive Information System (EIS)• Transaction Processing System (TPS)• Enterprise Resource Planning (ERP)

Can be divided into 5 separate categories:


Information System

MIS: used to analyse operational activities in the organisation. Most management information systems specialise in particular aspects of the enterprise, or management substructure

DSS: are computer program applications used by middle management to compile information from a wide range of sources to support problem solving and decision making

EIS: is a reporting tool that provides quick access to summarised reports coming from all company levels and departments such as accounting, human resources and operations.

ERP: provide an organisation with integrated software modules and a unified database which enable efficient planning, managing, and controlling of all core business processes across multiple locations. Modules of ERP systems may include finance, accounting, marketing, human resources, production, inventory management and distribution


What is HR MIS?

• HR MIS is the management of data and application system(s) whose ultimate goal is to produce a check as well as store and provide information of the employee population, either individually or collectively, in part or in whole…

• … any system that supports any aspect of the HR function

• Put simply, it is the application of computers to employee-related record keeping and reporting, and management decision making


MIS & The HR Function

• Recruitment & Selection: e.g. Online application/recruiting• Employee Data Management & Administration (including Self-service)• Time and Attendance• Benefits Admin. e.g. Leave, loans and medicals• Performance Management (evaluation) & Performance Records• Compensation & Rewards• Capacity Development (L&D)

Human resources management systems encompass:


Why HR MIS?

• Finding information from the bulk of files is a really painful task; HR MIS will make your task easier and manageable

• Managing and using employee information is a tricky task, it is a good idea to infuse latest software and IT tool to manage the task and reduce the chances of error or redundancy

• Managing attendance of employees on a daily basis is cumbersome. With a good HR MIS software it becomes a lot easier to track the attendance record of the employees

• Analysing personnel usage within an organisation becomes easier

• It’s easy to track and manage training costs


Top Calculations for HR MIS

• Health care cost per employee• Pay and benefits as a percentage of operating expense• Time to fill job vacancies• Cost per new hire/recruitment• Return on training • Comparisons e.g. trend analysis such as IGR against

number of revenue collectors over 5-10 years


HR MIS in Action

• Citibank for instance (part of Citigroup) has a global database of information on all employees including their compensation, a skills inventory bank of more than 10,000 of its managers, and a compensation and benefits practices database for each of the 98 countries in which the company has employees

• IBM (like many other organisations) has a paperless online enrolment plan for all the employees and it saves 1.2 million per year on paper and printing


HR MIS in Action – Review

• What in your opinion is the present level of HR MIS in the state civil service?

• What impact will the introduction of integrated HR MIS in the state civil service have on the HR function and governance in general?


HR MIS and Key Performance Indicators

• The essence of an information system is to enable business managers make faster and better decisions

• To pull into the lead in global competition, HR practitioners must control labour costs, motivate employees to high quality, customer oriented performance and continuously search out new and better ways of achieving this, against the backdrop of culturally diverse employees and generally shrinking head counts

• The ongoing drive for simplicity creates the need to have linked systems that truly work together to create meaningful, usable data



Scorecard – is a small collection of measures that capture the most strategic elements needed to execute the unique business strategy and achieve its short and long term goals



• A performance indicator may be defined as “a particular value or characteristic used to measure output or outcome”

• Performance indicators could also be described as a means whereby management can, on a regular basis, oversee ongoing performance in a number of key areas

• KPIs are derived from the over-arching goals/ strategy of the organisation/ business unit or department


Criteria for Effective Performance Indicators

KPI must be….• Clearly stated• Relevant• Observable• Measurable• Achievable and/or exceedable• Consistent• Within employee’s control• Have traction, foot print or impact


Criteria for Effective Performance Indicators

In addition KPIs must be:• In compliance with the requirements of the overall strategic

goals set• State the assumptions and estimates on which they are base.• Based on adequate internal control systems to collect and

record information• Derived from and calculated using information from the

records• Published/reported to allow for comparisons• Audited for accuracy (not materially misstated)• Audited for completeness



Performance indicators are not performance targets.

Management may of course wish to set performance targets but KPI is the measurement of such targets. For example, meeting certain deadlines is a good target. KPI may be able to monitor on how many instances these targets were met.


• The first consideration in setting measures and metrics to be analysed for comparison to KPIs for the HR function should be the key people issues from the organisation’s scorecard or from the plans guiding the business

• The second consideration should be the HR measures – the key drivers that HR guides or controls that directly influence the key people measures described above. This includes key processes that HR designs and/or delivers e.g.

• Recruiting & Selection • Rewards & Recognition • Performance Management



Performance Management

• Performance management is a process by which an organisation involves its employees, as individuals and members of a group, in improving organisational effectiveness in the accomplishment of its mission and goals

• Performance management is a continuous and flexible process which involves managers and those whom they manage acting as partners within a framework that sets out how they can best work together to achieve the required results

• Performance management is a collaborative development process for the individuals and the organisation


Why do we Manage Performance?

• Ensures that relative contributions of individual roles are articulated to overall corporate goals (line of sight)

• Ensures awareness of individual job roles and functions• Ensures that there is an understanding of the level and

nature of performance expectation• Ensures timely and adequate feedback about performance• Ensures that there are opportunities for formal and informal

training and development


Why do we Manage Performance?

• Ensures consistently fair and objective performance assessment• To entrench a performance oriented culture• Competition in market place• Developmental rather than punitive


Step 1Clarify the Employee’s major responsibilities

(& what support from manager)

Step 4Diagnose & Coach

employee performance

Step 2Develop performance

standards

Step 3Give periodic

performance feedback

Step 5Review overallPerformance

KPIs’ & MeasuresDialogue, Competence & capability review

Performance Management Cycle


Online Performance Management

• Set and agree key performance indicators• Input agreed indicators• Periodic discussion and measurement of progress (feedback) on

KPIs• Cumulative performance result• Linked to improved personal and corporate goal attainment• Linked to personal development, reward and career progression• Strong system control on interference

Major Attributes:



HR MIS is therefore a veritable source of information required to measure HR performance against set KPIs that have been established based on strategic business goals, and on how HR performance affects overall business/firm performance.


Your HRMIS should therefore have the capacity to provide the information needed to compare KPI set standards against your present state and thus enable strategic planning towards goal attainment.

• Cost per employee• Absenteeism ratio• Timeline for recruitment into key positions• Employee service level (Responsiveness)

HRMIS and Key Performance Indicators


Conclusions

• As a company grows relying on manual HR systems to manage activities like state-wide (worldwide) safety, benefits, administration, payroll and succession planning becomes unwieldy

• As we have seen, more organisations are therefore automating and integrating their HR system into human resources information systems (HR MIS)

• Leading organisations, both public and private, use HR KPI to gain insight into the effectiveness and efficiency of their programmes, processes and people, and to make judgements about them

• These organisations decide on what indicators they will use to measure their progress towards strategic goals and objectives, they gather and analyse performance data, and then they use this data to improve their organisations, successfully translating strategy into action

hrmis, kpis and accountability

Documents

management information

employee information

management of data

hr mis kpicriteria

inventory management

management substructuredss

middle management

hr functionwhat