Introduction to HRIS MIS/Technical Review What is an HRIS/HRMS? Introduce the SDLC A couple of the goals/objectives you had hoped to accomplish which we will address in today’s class: 1. What is an Information System? 2. How/why are HRISs valuable?

Data vs Information Data - “Just the facts” >>raw facts Information - data that has been transformed into a more useful or meaningful form

Data vs Information Finance Justin Communications Pujah Ty Zlotnick Psychology Shah Alge Richardson

Data vs Information LastName FirstName Major Favorite_Teacher Richardson Ty Psychology Alge Alge Shah Pujah Finance Alge Zlotnick Justin Communications

How does data become information? Transformation Process Data Information Key point: an information system, a transformation process need not be automated. Manual processes can just as easily sort data into meaningful records. However, automation can greatly enhance the ease at which this can be accomplished The value of information and hence and information system is determined in part, by how long it takes a manager to make a decision. For example, determining how many students are in this class, organizing students into groups with complementary skills, determining how many students think Alge is the best instructor they have ever had.

What is a “System” A set of elements or components that are formed and interact to accomplish a goal (e.g. transform data into information)

What is an Information System? Processing Input Output Information System - Can be defined a number of different ways - set of interrelated components/elements that collect (input), manipulate and store (processing), and disseminate (output), data and information and feedback. - Processing can be done manually or automated w/computers. Payroll is a good example. Hours worked (input) must be converted to net pay. So processes calculate hours * pay = gross Feedback is output that is used to make adjusments to input or processing activities Feedback Loop

(Is paycheck accurate?) An HR Example Processing (Calc. Net pay) Input (hours worked) Output (cut paycheck) Here is a classic HR example: Processes: - Get hourly rate - Multiply hours by rate - If over 40 hours determine overtime pay - Deduct taxes and employee charges (parking, investment, benef) - Print paycheck Can be manual or automated Feedback Loop (Is paycheck accurate?)

Evolution of Information Systems Transaction Processing (e.g payroll) Management Information Systems (e.g. daily & monthly absenteeism summary) Decision Support Systems (e.g. How many employees should we hire?) Expert Systems Can you think of an example of HR expert systems; Person-Position fits

Any Computer-based Info Systems (HRIS included) Consists of... Hardware Software Databases Telecommunication Procedures People Hardware: Physical I/O and Processing devices Software: programs and instructions - tell computers what to do Databases: repository for information Telecom- enable orgs. To link computers effectively People: IS people, HR people, Users - Users are also key in providing input into the functional design; whereas IS develop the programs. People are most important component Procedures: policies & rules governing use of info system and dissemination of information/outputs produced

GIGO System is only as good/effective/accurate as the people that build it and provide input into it, and utilize the data from it. Hence, people are the most important resource. Example: Don’t ever assume that because info came from a computer it is always accurate You don’t know how many students I have who cite resources on the interent thinking that because it came from the internet it must be a reliable source (www.joespage.com). Who the heck is joe? You need coroboration and experience with the system to develop a working level of confidence. As will be seen, testing is critical to the success of any info system

What is a “Human Resource InformationSystem” The application of computers to employee-related record keeping and reporting, and management decision making How might HRIS be used to enhance management decision making?

History of HRIS 1950’s - virtually non-existent 1960’s - only a select few 1970’s - greater need 1980’s - HRIS a reality in many orgs 1990’s - Numerous vendors, specialties 1960’s pressures for social reform and increased regs. But only large companies could afford 1970’s: increased focus on regulatory needs; mainframe systems popular, online systems (IBM CICS), database, 30-50 vendors, but most HRIS systems customized 1980’s- HR more complex, PC/computing available to most 1990’s-Automation the norm, numerous vendors, expanded role of HR

HR Software sales Micro PC Growth of HRMS $80 $60 HR Software sales Micro PC Millions $40 $20 - 1983 1985 1986 1987 1989 1991

Typical HRIS Record Keeping Requirements Employee information Wage and salary data Review dates Benefits Education and training Attendance Performance data/appraisal results

Typical HRIS Reporting Reqs. Employee profiles/lists Summary reports on employee groups Historical trends in work-related info Person-position comparisons

HRIS Tracks... Medical Records Recruit/ Employ EEO/AAP Workers Comp Payroll Health & Safety People Benefits Jobs Positions HR Planning System is only as good/effective/accurate as the people that build it and provide input into it, and utilize the data from it. Hence, people are the most important resource. Example: Don’t ever assume that because info came from a computer it is always accurate You don’t know how many students I have who cite resources on the interent thinking that because it came from the internet it must be a reliable source (www.joespage.com). Who the heck is joe? You need coroboration and experience with the system to develop a working level of confidence. As will be seen, testing is critical to the success of any info system Emp. Relations T&D Pension Admin Comp.

Developing an HRIS: A host of decisions... Fix what we’ve got (Improve current systems) vs. new system? Make versus Buy? Scope? Goals/Objectives? Strategy

Developing an HRIS: System Development Life Cycle (SDLC) Planning Analysis Design Typical steps in the development of new or modifying and existing HRIS Notice the overlap, some work on next steps can begin while other phase completed. Phase containment--identify potential problems early in the development process. The earlier you identify, the much less costly it will be down the road. Eg. Payroll miscalculations due to improper systems test (either under or over paying)--either way costly to org. Ceriello book doesn’t identify Analysis as a step; it appears he lumps Analysis into the Planning phase. Planning: where are we, where we going, what do we need to do to get there Analysis:study exist systems/gaps; requirements; BPR Design:Design in greater detail specific functions; determine/design best system (new or modified) Implementation: Build, test and rollout system (coding/configure, convert data) Maintenance/evaluate: Implementation Maintenance

Phase Containment Identify and address any problems at their earliest possible step to avoid costly rework down the road “Pay a little now, or a lot later!!!” Does anybody have any examples of Systems Implementation Horror stories that might have been avoided had the problem been addressed early in the planning or analysis phase? What factors/pressures cause individuals to ignore problems: 1. Meet deadlines 2. No one will notice, system is so big. 3. Social loafing - system will crash, but no one can tie it to me; I don’t feel like doing all of the rework necessary (ironically, creates bigger rework later). Ex. Incompatible systems, interfaces; hard-coding stuff into programs. Y2K is perhaps one of the biggest lapses in phase containment ever. Even when people knew that Y2K was coming, still things being coded with the 2 digit date function. Example: creating an algorithm to calculate employee tenure based on

Why HRISs Sometimes Fail Unclear goals/objectives System solves the wrong problem Improper vendor/product selection Low user involvement Planning overlooks impact on clerical procedures Lack of HR/functional expertise in designing Underestimate conversion effort Management- unrealistic expectations Lack of overall plan for record mgt. Lack of flexibility and adaptability Misinterpret HR specifications Poor communication between HR/IS Inadequate testing Spend some time discussing with class - ask for their input, how does HRIS improve safety? Or in groups, come up with way or ways in which HRIS improves HR/ORG. pick from list and explain. - Safety: identify problem employees, blood type; what is cause of all these accidents - Quick access to data = better service - need less people to manage the manual processes/searches - Competitive Adv: Frees of HR people perhaps to devise a strategy to attract best people - Errors/accuracy: GIGO, but once carefully implemented it will be consistent in processing data (get it right up front) - Quality: track performance electronically, electronic diaries, easier to put together an accurate perf. Review and devel. Quality training - improved communication: sharing of data with employees/vice versa - Efficiciency/Productivity: able to screen more applicants; provide accurate timely feedback to employees; better compliance -opportunities: free up time - Better decision making: target training on aggregate weakness of employees, select best people, design an efficient competitive comp. Plan., more accurate forecast of to allocate costs I.e. recruiting; what is causing accidents - Control: better security measure prevent data/info from getting in wrong hands

Why are Carefully Developed Info Systems Important to HR? Better safety Better service Competitive Advantage Fewer Errors Greater Accuracy Higher Quality Products Improved Health Care Improved Communication Increased Efficiency Increased Productivity More efficient administration More opportunities Reduced labor requirements Reduced costs Superior managerial decision making Superior control Spend some time discussing with class - ask for their input, how does HRIS improve safety? Or in groups, come up with way or ways in which HRIS improves HR/ORG. pick from list and explain. - Safety: identify problem employees, blood type; what is cause of all these accidents - Quick access to data = better service - need less people to manage the manual processes/searches - Competitive Adv: Frees of HR people perhaps to devise a strategy to attract best people - Errors/accuracy: GIGO, but once carefully implemented it will be consistent in processing data (get it right up front) - Quality: track performance electronically, electronic diaries, easier to put together an accurate perf. Review and devel. Quality training - improved communication: sharing of data with employees/vice versa - Efficiciency/Productivity: able to screen more applicants; provide accurate timely feedback to employees; better compliance -opportunities: free up time - Better decision making: target training on aggregate weakness of employees, select best people, design an efficient competitive comp. Plan., more accurate forecast of to allocate costs I.e. recruiting; what is causing accidents - Control: better security measure prevent data/info from getting in wrong hands

Vendor Contacts PeopleSoft Oracle HR Applications Http://www.ihrim.org/market/onlineguide/alphabetical.htm PeopleSoft Oracle HR Applications Ascentis Software - HROffice Eric Systems Inc. Infinium Spectrum Break into your assigned groups. Spend a few minutes to get to know each other better---pick a team name --be creative. Then after announcing your team name, I’ll assign a software vendor. Call or email the vendor indicating you are master’s students in HR conducting a software evaluation as part of a class. You would like a demonstration version of the software the highlights usability and functionality.