Dr. Bob TravicaHR System Study1 of 15 Systems Acceptance: A Case Study of a Human Resources System By Dr. Bob Travica Updated June 2006

Dr. Bob TravicaHR System Study2 of 15 Outline Purpose of Study The HR System Models of ERP Acceptance Study Methods Findings Summary

Dr. Bob TravicaHR System Study3 of 15 Purpose of Study Purpose: Understand conditions for increasing acceptance of a human resources system. - Diagnosis of the acceptance issues - Recommendation for increasing acceptance Organization: A mid-sized Canadian company (henceforth, “the company”).

Dr. Bob TravicaHR System Study4 of 15 Records time, expenses, and other dynamic employee information. Delivers reports for management decision making. Allows employees to access their information any time. The HR system A goal: Reduce administrative costs by having employees enter their data and managers perform online approvals (query employee data and record decisions online) – self service. A frequent system in mid/large size organizations in Canada.

Dr. Bob TravicaHR System Study5 of 15 Databases w/ Personal Info Employee, Manager - Organizes data - Generates reports - Creates data warehouse for analysis supporting decision making. The system ERP (Middleware)

Dr. Bob TravicaHR System Study6 of 15 Phases 1. Chartering (Planning) 2. Project (Development, Implementation) 3. Shakedown (Go Live to Achieving System’s Routine Use or Shutdown) 4. Onward & Upward (Normal routine use, payoffs) Shakedown Problems - Maintenance of old processes - Poor software ease of use - Users’ skills stalled after training - Low usage of system Shakedown Performance Metrics - Systems downtime - Response time - Job quality/stress Shakedown Success Conditions - Well-configured and integrated system - Redesigned business processes - Trained users - Resources to address problems - Action to fix problems ERP System Development - Markus & Tanis (2000): Four-Phase Enterprise Systems Experience Cycle

Dr. Bob TravicaHR System Study7 of 15 Study Methods Research Model of Users’ Acceptance of the System SYSTEM ACCEPTANCE IT, Information, New ways of working SYSTEM DESIGN ORGANIZATIONAL ISSUES, CHALLENGES, PROBLEMS ACCEPTANCE DRIVERS ON THE USERS’ SIDE

Dr. Bob TravicaHR System Study8 of 15 Study Methods 1) Interview: Partly combined with observation of system use 33 persons interviewed, including 4 focus groups, 22 hours Cross-sectional (units, geography, hierarchy) Different sampling methods Qualitative inquiry: semi-structured interviewing to learn about perceptions, opinions, assessments, ideas…

Dr. Bob TravicaHR System Study9 of 15 2) Survey of professionals, managers, and clerks: Electronic, anonymous Random sample of 38% of all system users Response rate 61% (excellent) 7 scale-based questions, 1 open-ended, 2 support 3) Company documents, access to the system Three Study Methods Data analyzed by using qualitative content analysis and correlation analysis.

Dr. Bob TravicaHR System Study10 of 15 Findings Eight months into the “shakedown phase”: - User Satisfaction b/w 64%-76% for key functions of the system - Routine Use achieved by 58% of users - System assessed as easy to use by 53%. Ease of Use (“user friendliness”) identified as a key problem. Related to: - System’s Acceptance (r*=0.3) - Satisfaction (0.7) - Usefulness of managers’ online approvals (0.5). * r = Coefficient of Correlation

Dr. Bob TravicaHR System Study11 of 15 All users appreciate better information, but system not easy to use -- user interface issues. Particular Challenge: Parallel change of work processes and the system. Findings Culture unprepared for the system, an adjustment much needed.

Dr. Bob Travica12 of 15 Findings ACCEPTANCE DRIVERS Users’ Assessments of System Benefits & Costs Users’ Sense Making of System Terms | Grapevine | Systems Comparisons Users’ Perception of Support: Training | Helps | Maintenance Process Adoption Readiness: Management Change Culture Adjustment Readiness: Core Beliefs & Behaviors IT Culture Management Culture Self Service Paper vs. Electronic Beliefs & Behaviors IT Development Pace Business vs. Technology Focus SYSTEM ACCEPTANCE Technology Acceptance Information Acceptance Processes Acceptance Culture Adjustment SYSTEM DESIGN: System’s Complexity & Lack of Familiarity IT Maturity Configuration vs. Customization Implications of SAP Strategy OTHER ORGANIZATIONAL ISSUES: Human Resources Function -- Organization Responsibilities Roles

Dr. Bob TravicaHR System Study13 of 15 Culture Adjustment: Paper vs. Electronic Beliefs/Behaviors: - Unclear costs of paper trail and benefits of electronic. - Goal of “paperless administration” may need re-evaluation. Management Culture: Managers’ IT-related skills & attitudes toward using IT may need scrutinizing. Self Service: No prior experience and needs special attention. IT Culture: Place of electronic IT in development programs not prominent enough. An inclination toward criticizing. Findings

Dr. Bob TravicaHR System Study14 of 15 IT Development Pace: - Perceived too fast by a number of employees - Are applications rounded up before new ones are released? Business vs. Technology Focus: Consider expanding interfaces between technology users (workers, managers) and developers (IS function). Findings

Dr. Bob TravicaHR System Study15 of 15 Summary Study of HR System’s acceptance in a mid-sized company used interviews multiple methods. System’s acceptance pull: Better information. The system’s acceptance parameters found to be: 53-76% System’s acceptance push back: - Difficult user interface - Process change - A lack of cultural readiness. Concerted effort from top management down needed in order to cope with the push