1. Appendix E Human Resources Information Systems MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall, Inc. E-1

2. Human Resources Information System (HRIS) n Handles specialized processing concerning firm’s personnel n HR Computerized processing done using human resources information system (HRIS) n Has become as valuable as other CBIS subsystems E-2

3. HR Function n Originally called personnel n Can be a department or functional area n HR director is often used to describe the person in charge E-3

4. Recruiting Hiring Education & Training Terminat- ion Benefit Administration Potential Employees Retired Employees Data Management The Firm Primary HR Activities E-4

5. The HRIS n The name HRMS (Human Resource Management System) is also catching on in industry n May not always be computer-based n Manages HR data and information E-5

6. The Evolution of the HRIS n First, paper files were located in the Personnel department. n Then, punched card and magnetic media files were located in IS. n Government legislation in the 1960s and 70s eventually called management's attention to the importance of HR data. n In the late 1970's the concept of an HRIS was born. E-6

7. Accounting information system Human resources research system Manufacturing intelligence subsystem Work force planning subsystem Work force management subsystem Benefits subsystem Internal sources Environmental sources Input subsystems Output subsystems Users Data Information Environmental reporting subsystem HRIS Database HRIS Model Recruiting subsystem Compensation Subsystem E-7

8. Accounting Information Subsystem n Two main types of data 1. Personnel -- name, birth date, sex, marital status, education, skills, etc. 2.Accounting -- hourly rate or monthly salary, taxes, insurance deductions, etc. E-8

9. Human Resources Research Subsystem n Examples: –Job analyses and evaluations –Succession studies –Grievance studies n This research can generate new data for the database (job analyses) n And it can use existing database contents (succession studies) E-9

10. Human Resources Intelligence Subsystem [cont.] n Government –Stay current on legislation –File reports. n Suppliers –Employment services n Labor unions, local community, competitors –Sources of employees E-10

11. Human Resources Intelligence Subsystem [cont.] n Global community intelligence n Financial community –Employee planning n Competitor intelligence E-11

12. The HRIS Database Type of data: 1. Employee 82.5% of the firms maintain only employee data 2. Nonemployee 8% of the firms mainly organizations external to the firm E-12

13. Possible HRIS Database Locations 342 174 52 32 E-13

14. Database Location n Operating division -- decentralized n Outside service center -- outsourced n Central computer is still the most popular location Some firms keep database in multiple locations E-14

15. Executives Non HR 1034112345 (2.78) Managers (3.09) HR Director (3.79) Other HR Managers (4.33) Not at allOccasionallyMonthlyWeeklyDaily Users of the HRIS Database E-15

16. Basic Forms of HRIS Output E-16

17. Software n Custom software is usually developed jointly by HR and IS n Some software is integrated into a core HRIS n Some is standalone E-17

18. Work Force Planning Subsystem Enable manager to identify future personnel needs n Organization charting n Salary forecasting n Job analysis/evaluation n Planning n Work force modeling E-18

19. In Being Application 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 Number of Firms Using Work Force Planning Applications Percent applications in use: 75 E-19

20. Recruiting Subsystem n Applicant tracking n Internal search n Tracking job applicants E-20

21. Number of Firms Using Recruiting Applications Application name In Being Use Developed ________________________________________ Applicant tracking 235 98 Internal search 111 56 ________________________________________ Totals 346 154 Percent applications in use: 69 E-21

22. Work Force Management Subsystem n Performance appraisal n Training n Position control -- ensuring that headcount does not exceed budgeted limits. n Relocation n Skills/competency n Succession n Disciplinary E-22

23. Number of Firms Using Work Force Management Applications 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 E-23

24. Compensation Subsystem Most systems in use –Merit increases –Payroll –Executive compensation –Bonus incentives –Attendance E-24

25. Number of Firms Using Compensation 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 E-25

26. Benefits Subsystem n Defined contribution n Defined benefits n Benefit statements n Flexible benefits n Stock purchase n Claims processing E-26

27. Number of Firms Using Benefits 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 E-27

28. Environmental Reporting Subsystem n Reports firm’s personnel policies and practices to the government –EEO records –EEO analysis –Union increases –Health records –Toxic substance –Grievances E-28

29. Number of Firms Using Environmental Reporting Applications 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 E-29

30. Executive Perception of HRIS Value HRIS has little value HRIS is valued less than other systems HRIS is valued on a par with other systems HRIS is valued higher than other systems HRIS is the most highly valued 9 185 242 4 Top mgmt is unaware of HRIS 25 31 E-30

31. Users of HRIS HR directorXXXXXX Other executivesXXXXXX Compensation/benefits managerXX HR planning managerX Employee/labor relations managerXX EEO/AAP managerXXXXXX Recruiting & selection dvlpmnt mgrXX Training managerX Manager of accountingXX Payroll managerXX Other managersXXXXXX Work Force Planning Recruiting Work Force Management Compensation Benefits Environmental Reporting E-31

32. Summary n HR function has four primary activities –Recruiting and hiring –Educating and training –Management employee-related data –Termination and benefit administration n HRIS helps managers manage the personnel resource n Two big influences on HRIS development –Government –Microchip E-32