Human resources intelligence subsystem This subsystem has the responsibility for keeping current on environmental activities that are especially important to human resource activities (McLeod and Anctis, 1995). Data and information are gathered describing activities of the government, labour unions, suppliers, the local and financial communities, and even competitors (McLeod and Anctis, 1995). Employment firms function as suppliers, funnelling applicants to the firm. Applicants can also come from the local community and from competitors (McLeod and Anctis, 1995). The financial community provides data and information concerning the economic climate, which influences the human resource plans (McLeod and Anctis, 1995). Much of the intelligence data can be obtained from commercial databases (McLeod and Anctis, 1995). The HRIS database All of the data and information provided by the input subsystems is held in computer storage (McLeod and Anctis, 1995). The storage units can reside in IS, HR, or other locations (McLeod and Anctis, 1995). The data relates primarily to the firm’s employees, but also can describe the environmental elements with which HR interfaces (McLeod and Anctis, 1995). Database management system (DBMS) software performs the maintenance processes (McLeod and Anctis, 1995). HRIS Database consists of number of databases such as employee database, executive search firm databases, university databases, employment agency databases, public access databases, corporate job banks…etc. Output subsystems
The output subsystems consist of various types of software that transform data in the database into information outputs. The software can include report writers, mathematical models, office automation packages such as e-mail and desktop publishing, and applications of artificial intelligence such as expert systems. According to the model, the output subsystems represent the six groups of HRSP applications. 54
Workforce planning subsystem is one of the output subsystems in HRIS model, which enables the manager to identify future personal needs (Figure 2.6). It facilitates organisation charting, salary forecasting, job analysis or evaluation, planning and work force modelling. Recruiting output subsystem enables applicant tracking and internal search. Workforce Management output subsystem work on performance appraisal, training, position control that ensures headcount does not exceed budgeted limits, relocation, skills or competency measuring, succession planning and disciplinary. Compensation output subsystem works on merit increases, payroll, executive compensation, bonus incentives and attendance. Benefits output subsystem defined contribution, benefits and claims processing. Environmental reporting output subsystem work on reporting firm’s personnel policies and practices to the government. Reports like union increases, health records and toxic substance produce through this system. The model (Figure 2.6) provided a good framework of HRIS components. It followed the three main concepts of system: inputs, processes, and outputs addressing the wide variety of HRIS applications as well. According to McLeod and Anctis (1995), the HRIS has provided strong support in the compensation and benefits areas, but other activities that occur during employment demand greater attention. For example, little attention has been directed at activities relating to organizational exit, or termination. Many firms have neglected applications for workforce management and recruiting. They further emphasised, if HRIS resources were aimed at building strong planning systems, up-to-date HRIS databases, and responsive information output systems, then the HRIS would support management in each of its workforce-related activities. This direct management support would contribute to the firm’s strategic objectives, whatever they might be. As the HRIS does a better job of providing management with information about people and their jobs, it will solidify its position in the firm as a valued information system (McLeod and Anctis, 1995). 55
2.4.6. HRIS Model – McLeod and Schell
Data Information
Transaction processing system
Human resources research subsystem
Human resources intelligence subsystem
Internal sources
Environmental sources
Input subsystems
Output subsystems
Users
HRIS Database
Recruiting subsystem
Environmental reporting subsystem
Compensation Subsystem
Workforce management subsystem
Work force planning subsystem
Benefits subsystem
Figure 2.7: A model of a human resource information system Source: McLeod and Schell, 2007 McLeod and Schell slightly modified the Resource-Flow HRIS Model in 2007 (Figure 2.7). The data processing sub system was named as transaction processing sub system. 56
2.5. Human resource strategy
Thomas (1996) defined human resources strategy as a co-ordinated set of actions aimed at integrating an organisation’s culture, organisation, people and systems (Figure 2.8). He articulated human resources strategy as the cohesion and consistency of a distinctive pattern of behaviour. Its relationship to the corporate strategy determines its effectiveness and success.
Figure 2.8: HR strategy Source: Thomas, 1996
IT
Marketing
Finance
Sales
Production
R & D
Corporate strategy
Human resources mission statement
Human resources analysis
Environmental analysis
Organisation analysis
Human resources planning Generation of strategic options/choices Objectives
Culture
Organisation
People
Systems
Human resources functional action plan
Implementation
Review and evaluation
HR strategy aids the organisation to achieve strategic goal in the medium to long term. It should emanate clearly from corporate business strategy aligning with organisational other plans and strategies (Figure 2.8). 57
The human resources function in today’s organisation needs to think of itself as a business-operating unit, employing exactly the same marketing, technical and quantitative skills as those, which are employed, by other functions (Thomas, 1996).
Figure 2.9: Human resources strategy planning Source: Thomas, 1996 HR strategic plan is influenced by four dimensions: culture, organisation, people and systems (Figure 2.9). Organisation structure, job roles and reporting lines should integrate with employee skill levels, staff prospective and management capabilities. Culture, which is key aspect of the organisational, is belief, value, norms and style. Organisation culture – its measurement, monitoring and management – provides the potential to enhance organisational performance (Thomas, 1996). Systems can be manual as well as computerised processes used to carry out the tasks within the organisation. Human Resources Information Systems (HRIS) or Human Resources Management Systems (HRMS) play leading role in computerised HR Systems. Therefore, HR strategy plan should not only be inline with corporative business plan but also with organisational Information Systems strategic plan.
The structure job roles and reporting lines of the organisation
The process by which things get done in the organisation
The skill levels, staff potential and management capability of the organisation
The beliefs, values, norms and style of the organisation
Generation of strategic
– Options
– Choices
Organisation
Systems
People
Culture
HR policies and objectives 58
2.7. Conclusion
Organisations use Information Systems in all three levels of information management: strategic, tactical and operational. HRIS is one of the information systems out which transforms the role of the HR department incorporating records for employee resource, rewards, training, etc. Many studies cited HRIS benefits, such as improvements in accuracy, cost saving, timely and quick access to information through HR reports, decision-making and increased competitiveness. Lack of top management support, funds, HR knowledge of system designers and HR solutions, are the main factors keeping organisations away from HRIS. According to literature, human resource planning, recruiting, and training are less frequent users within personnel perhaps reflecting greater use of the system for routine reporting than for decision support. HRIS is classified in to two types according to their usage: ―unsophisticatedâ€- and ―sophisticatedâ€-. Payroll and benefits administration, employee absence records keeping electronically are listed as ―unsophisticatedâ€-. Use of IS in recruitment and selection, training and development, HR planning and performance appraisal, is classified as ―sophisticatedâ€-. Many researches were curious about the integration of HRIS with other emerging technologies such as MIS, ERP, eHR…etc. Due to the advent of Internet technology and the emerging concept of business intelligence HRM systems have changed to e-HRM systems. It is very hard to give a clear-cut view to distinguish eHR from HRIS since HRIS developed with most of the eHR features today. According to Alvarez-Suescun (2007), firm size or technical skills do not affect organisational sourcing decisions. The HRIS implementation sourcing decision may be influenced by previous experiences in the implementation of other systems and strategic contribution of the IS on the internal organization. According to some literature organisations gain competitive and strategic advantage if HRIS activities are undertaken internally.
HRIS facilitates training and development and recruitment and section processes of the organisations. The training and development function is essential for changing behaviour and culture and reinforcing the new behaviour and culture in an organisation. 59
The training process consists of four phases. The first phase is the training needs analysis (TNA). The second phase is the design phase. The third phase is the implementation phase and the training evaluation is the final phase. HRIS mainly facilitate TNA and training evaluation phase. Succession planning which is facilitated by HRIS helps to identify key players in the organisation and develop them for future demand. Recruitment represents one of the core staffing activities that need to be planned efficiently and effectively. Pattanayak (2000) identified four sub functions: determining the nature of the job to be filled, type of personal required, sources of recruitment and selection process. HRIS facilitates all four of those sub processes using its job analysis, skill inventory and E-recruitment features. In the Sri Lankan context, literature relevant to HRIS, training and development and recruitment and selection cannot be found. Especially, how HRIS contributes to HR panning through training and development and recruitment and selection is yet being studied. The systematic development of HRIS models is studied through the literature review. The first conceptual framework is the Hyde-Shafritz Model, which listed the modules as sixteen inputs and outputs presented in 1977 by Albert C. Hyde and Jay M. Shafritz. The Simon Input/Data Maintenance/Output Model was submitted in 1983 by Sidney H. Simon. It represented HRIS in terms of input, maintenance, and output functions. The Manzini-Gridley Hardware Network Model was presented in 1986 by Andrew Manzini and John D. Gridley. They viewed the HRIS in terms of interfaces with a corporate human resources database. The Fisher, Schoenfeldt, and Shaw Application Modules presented in 1990 by Cynthia D. Fisher, Lyle Schoenfeldt, and James B. Shaw identifying nine major application areas of the HRIS. The most recent and comprehensive model was a resource-flow HRIS model, which was presented by HRSP (Human Resource Systems Professionals) and McLeod and Anctis in 1995. Same model was presented with some miner changes by McLeod and Schell in 2007. This was more advanced than earlier models. There was some amount of focus to embed artific
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