Chapter 1 Evolution of Human Resource Management and Human Resource Information Systems: The Role of Information Technology

NEED FOR HRIS: THE EXTERNAL ENVIRONMENT Government Regulations EEO -1 Report Employee Composition Increased Records and Reports Court Decisions New Laws Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

EXTERNAL ENVIRONMENT Technology Labor Market Societal Concerns Lans, Portals Labor Market Human Resources Planning External Environmental Scanning Societal Concerns Employee Information Requests Privacy Issues Pollution Community Awareness Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

EXTERNAL ENVIRONMENT Competition Compensation Management Labor Market Surveys Compensation Planning Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

HISTORICAL ERAS IN HRIS Pre-world War II Reactive, Caretaker Activity Record Keeping Manual Not Major Part Of Business Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

POSTWAR: 1945-1960 Importance Of Employee Morale HR Part Of Operating Costs, Not In Mainstream Payroll Automation R & D In Selection Mainframe Usage By Defense Industry In HR Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

SOCIAL ISSUES PERIOD: 1963-1980 Social Issues Legislation Impact HR Protector Of Employees Intro Of IBM 360 Advent Of MIS Paperwork & Reporting Increases HR Now More In Mainstream Of Operating Budget Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

COST-EFFECTIVENESS: 1980-1990 HR Cost Justify Activities Increased Role Due To Paperwork Required In Legislation Microcomputers & Software Advances HRIS Capabilities Lower In Cost Increased Emphasis On R&D Utility Analysis Critical Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

TECHNOLOGY ADVANCEMENT ERA (90S-TODAY) HRIS Commonplace- High Technology (Internet) Microcomputer Capacity Increases HR Main Part Of Strategy Planning - Strategic Partner Globalization Of Companies Hardware-software Tools In Decision-making Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

THE EVOLUTION OF STRATEGIC HRM Contingency Perspective And Fit Resource - Based View Of The Firm And Social Capital, HR System Components And Structure Expanding The Scope Of HRM Beyond The Focal Organization Achieving HR Implementation And Execution, By Translating The Rhetoric Into Practice, Measuring The Outcomes Of SHRM By (E.G., Balanced Scorecard Approach) Research Methodological Issues That Stress The Importance Of Evidence Based Management Adoption And Use Of HR Metrics Application Of “Six Sigma" Processes To HRM. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

COMPETITIVE ADVANTAGE Three Categories Of Resources: Physical Organizational Human Most Critical Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

ACTIVITIES OF HR Transformational Traditional Transactional Wright, McMahan, Snell, & Gerhart, 1998 Transactional Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

HR ACTIVITIES & TIME SPENT Transactional (65-75%) Benefits Administration, Record Keeping, Employee Services Traditional (15-30%) Recruitment, Selection, Training, Performance Management, Compensation, Employee Relations Transformational (5-15%) Knowledge Management, Strategic Redirection And Renewal, Cultural Change, Management Development Added Value Wright, McMahan, Snell, & Gerhart, 1998 Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

INTERFACE BETWEEN HR AND TECHNOLOGY IT As A Tool Not A Substitute For People How Might The Changes In Technology Impact The Role And Perceptions Of HR Departments And Professionals? How Might Technology Aid In The Advancement Of Strategic HRM? Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

HRIS Human Resources Information System (HRIS) Computerized System That Provides Current And Accurate Data For Purposes Of Control And Decision Making. Benefits: Store And Retrieve Of Large Quantities Of Data. Combine And Reconfigure Data To Create New Information. Institutionalization Of Organizational Knowledge. Easier Communications. Lower Administrative Costs, Increase Productivity And Response Times. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

HRIS DEFINITION Not Just Hardware-software Includes People, Forms, Policies, Procedures, And Data Purpose – Provide Service Variety Of Users Strategic Tactical Operational Decisions Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

E-HRM & HRIS Electronic Human Resource Management (E-hrm) Information Technology (E.G., Web)central Component Application And Hr-function Focused HRIS Technology And Processes (E.G., Databases, Enterprise Resources Planning (ERP) Architecture, Smart Phones, Etc.) That Support Employee Access To HR Data And The Move To E-hrm. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

BIGGEST ADVANTAGES OF HRIS Reduced Manual Handling And Paperwork Or Enables Greater Impact Of Paperwork On Business Operation Reports Analysis Negotiations Communications Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

INFORMATION SYSTEMS PROVIDING SUPPORT FOR HRM (Table 1.1) Organizational Level Type of System Major Goal and Focus HRM Example Operational Transaction Processing System Improved transaction speed and accuracy Improved efficiency in the processing of daily business transactions Automation of routine transactions Reduced transaction costs Payroll processing Time and attendance entry Managerial Management Information System Provides key data to managers Supports regular and ongoing decisions Provides defined and ad-hoc reporting Producing EE03 reports Calculating yield ratios for recruiting Calculating per-capita merit increases Executive Executive Information System Provides aggregate, high-level data Helps managers with long-range planning Supports strategic direction and decisions Succession planning Aggregate data on balanced scorecard Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

INFORMATION SYSTEMS PROVIDING SUPPORT FOR HRM (Table 1.1 Cont.) Organizational Level Type of System Major Goal and Focus HRM Example Boundary Spanning Decision Support System Interactive and iterative managerial decision-making Supports forecasting and “what-if” analysis Supports business simulations Staffing needs assessment Labor market analysis Employee skills assessment Expert System Embed human knowledge into information systems Automate decisions with technology Résumé keyword searches Office Automation Systems Designing documents Scheduling shared resources Communication E-mail training room scheduling Collaboration Technologies Supports electronic communication and collaboration between employees Supports virtual teams Communication support for e-learning Online meetings and shared documents HR departmental wikis Enterprise Resources Planning System Integration and centralization of corporate data Share data across functional boundaries Single data source and common technology architecture Orangery Oracle/PeopleSoft Lawson HRM SAP Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

SYSTEM DEVELOPMENT LIFE CYCLE (SDLC) Five General Phases: (1) Planning (2) Analysis (3) Design (4) Implementation (5) Maintenance Begins With Planning And Ends With Continuous Evaluation Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

A MODEL OF ORGANIZATIONAL FUNCTIONING Organic model HRIS is critical to the efficient operation of an organization Interrelatedness between the strategic management system, the strategic HRM system, and the performance goals, business and HR are generated during the strategic planning process. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

A MODEL OF ORGANIZATIONAL FUNCTIONING The HR Goals Drive The HR Programs That Provide Management The Tools For The Efficient And Effective Use Of Employees The HRIS Has Become Increasingly Important In Supporting The HR Management System As Well As In Strategic Planning HR Metrics And Cost-benefit Results (Value Added And Return On Investment - ROI), Are In Continual Interaction Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

A MODEL OF ORGANIZATIONAL FUNCTIONING National Culture Impacts Entire Model Through Strong Effects On External Environment External Environment Influences Internal Functioning Of Organization Interaction Between Strategic Management System And Strategic HRM Will Improve The Functioning Of The Organization Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.