1. Copywrite C 1999 PMi www.pmihrm.com Chapter 5 Designing and Developing a New HRMS

2. Copywrite C 1999 PMi www.pmihrm.com Human Resources Management Systems: A Practical Approach n By Glenn M. Rampton, Ian J. Turnbull, J. Allen Doran ISBN 0-459-56370-X Carswell

3. Copywrite C 1999 PMi www.pmihrm.com Introduction n The design of any HRMS software system requires both functional and technical decisions n These decisions should be predicated on the uses to which the system will be put

4. Copywrite C 1999 PMi www.pmihrm.com Security n System security addresses concerns re: system control and privacy n System control addressed through audit trails n In provincial and federal jurisdictions privacy is a legislated right of persons whose personal data resides on an HRMS

5. Copywrite C 1999 PMi www.pmihrm.com Analysis of Business Process n To often systems are developed based on existing requirements n Automation of inefficient or unnecessary work flows may simply produce the wrong result more quickly

6. Copywrite C 1999 PMi www.pmihrm.com Business Process Reengineering Reengineering the Corporation, Hammer and Champy (1993) in their book Reengineering the Corporation, have argued that American corporations had to radically change the way they did business, or go out of business.

7. Copywrite C 1999 PMi www.pmihrm.com Phases in Process Reengineering n Analysis Phase – identify what tasks are being done – determine why those tasks are being done – analyze how they are being done – identify who is doing them n Problem-Solving Phase – determine what should be done and why it should – determine how tasks should be done – determine who should do the tasks, along with where and when they should be done

8. Copywrite C 1999 PMi www.pmihrm.com Conducting Reengineering n develop a strategy, scope, and for the re-engineering plan; n ensure that management at all levels are convinced of the value of project, and are committed to supporting it; n chart process flows, and analyse current high or low level tasks; n consider what supporting application software you will require; n conduct Value for Money Audits to ensure that you can justify your project in dollars and cents terms (see Chapter 3);

9. Copywrite C 1999 PMi www.pmihrm.com Conducting Reengineering (cont’d) n develop benchmarks for the projects to be used as standards to be met (or exceeded) by the project; n develop new effective and efficient tasks and processes; n prepare an implementation plan (see Chapter 6); n implement the plan; and, n develop a plan for maintaining the system.

10. Copywrite C 1999 PMi www.pmihrm.com Once one has decided that the human resources processes in the organization are the “right ones to automate” one can then turn one’s attention to designing the HRMS to automate the processes in the “right way”.

11. Copywrite C 1999 PMi www.pmihrm.com Steps in Designing a New HRMS n design a database with the capacity to handle the relevant populations. n label each field and each data element to create a complete data dictionary. n create tables of values which can be drawn on by data fields as appropriate. n establish data relationships, including all algorithms and routines, to optimize editing and validation of fields. n create menus and screens to assist users in navigating through the HRMS.

12. Copywrite C 1999 PMi www.pmihrm.com Steps in Designing a New HRMS (Con’t) n create operator messages that specify action options. n build in error-checking routines. n build in data security, including audit trails. n define standard reports. n include a tutorial module to assist new users.

13. Copywrite C 1999 PMi www.pmihrm.com Benchmarking

14. Copywrite C 1999 PMi www.pmihrm.com Measurement

15. Copywrite C 1999 PMi www.pmihrm.com Performance Measurement Principles The productivity and effectiveness of any function can be measured by some combination of cost, time, quantity, or quality indices: n A measurement system promotes productivity by focusing attention on the important issues, tasks, and objectives. n Professional and knowledge workers are best measured as a group. n Managers can be measured by the efficiency and effectiveness of the units they manage. n The ultimate measurement is not efficiency, but effectiveness.

16. Copywrite C 1999 PMi www.pmihrm.com Build or Buy? Not a simple question, but: Organizations must understand that the strategic advantage of good information systems comes, not from building some unique tool, but by ensuring that the tool has all the capabilities that the organization requires, and by using these capabilities well.

17. Copywrite C 1999 PMi www.pmihrm.com Screening and Selecting Software The traditional approach to software includes: n definition of user requirements. n development of a request for information (RFI) or request for proposal (RFP), which is then sent to appropriate software suppliers. n assessment of supplier responses, screening out systems or suppliers which do not match sufficient criteria. n demonstrations of short-listed products to see the "look and feel" and to confirm that stated capability does exist. n assessment of vendor and software reliability.

18. Copywrite C 1999 PMi www.pmihrm.com Definition of Requirements Requirements are generally defined in three ways: functional, system operations, and technical.

19. Copywrite C 1999 PMi www.pmihrm.com Attributes of User-Friendly Systems n easy to establish contact with software (sign-on process; security) n uses icons, menus, or both to guide user choices (no need to use code or learn mnemonics) n software easy to learn and use (windows, scrolling, and other features) n users are guided through various processes; help to correct mistakes is easily available; n all error messages are fully explanatory n the data dictionary is available on ‑ line n software has edit checks to verify syntax, semantics, and overall data integrity (e.g., n down loads/uploads to/from PC products such as word processors, spreadsheets n effective use of graphics.

20. Copywrite C 1999 PMi www.pmihrm.com Screening and Selecting Software (cont’d) n Development of an RFI/RFP n Assessment of Vendor Responses n Demonstrations n Supplier and Product Reliability

21. Copywrite C 1999 PMi www.pmihrm.com Development of an RFI/RFP

22. Copywrite C 1999 PMi www.pmihrm.com RFI/RFP (cont’d) Developing an RFI/RFP is a complex task. The RFI/RFP should be designed in a way which will facilitate comparative analysis of several software supplier's responses. Open ended questions invite open-ended answers which are very hard to compare. As much as possible, questions should be specific. One method of achieving this is to offer multiple choice responses followed by a "comments" section for the software supplier to elaborate as required, thus providing both comparative data and allowing for the explanation of variances

23. Copywrite C 1999 PMi www.pmihrm.com Assessment of Vendor Responses With a well designed RFI/RFP, the analysis of results should be easy, although often detailed and time- consuming. The purpose of the analysis is to weed out systems or suppliers which are unsuitable, leaving only the best options for further review.

24. Copywrite C 1999 PMi www.pmihrm.com Demonstrations Potential suppliers should be asked to provide demonstrations of their products. Demonstrations of a software product can be as short as one hour, or as long as a week or more. Many software selection processes include at least two phases; a short (one to three hours), general initial demonstration, followed by a more detailed and focused demonstration.

25. Copywrite C 1999 PMi www.pmihrm.com Supplier and Product Reliability Buying a software package, particularly an HRMS, should mean that you are buying not just the current software version, but future versions as well. This investment in a product and its supplier can be a marriage of five, ten, or even more years. It should only be made if the buyer is sure that the supplier and the product are reliable, i.e., that both are a good investment.

26. Copywrite C 1999 PMi www.pmihrm.com Question 1 Suppose you were given the responsibility for designing and developing a new HRMS in a financial institution with 15,000. employees headquartered in Winnipeg, Manitoba, but with branches across Canada. What are some of the global (high level) design issues which you feel should be considered? Are there some issues which you believe should take precedence over others? Discuss.

27. Copywrite C 1999 PMi www.pmihrm.com Question 2 List three methods by which an organization can verify vendor claims about an HRMS product. Which are most important, and why?

28. Copywrite C 1999 PMi www.pmihrm.com Question 3 Why is it important to examine what human resources business processes one in automating when one sets out to design and develop a new HRMS? Given that the “powers that be” agree to conduct a business process re-engineering (or engineering, if prefers) study of the organization’s Human Resources Function, who do you think should be involved in such a study. Who should lead it? Should it contain representatives from outside of Human Resources. What should be the role of Management Information Specialists?