01.Evolution of HRM & HRIS, The Role Of IT

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Evolution of Human h

Resource Management F].g
and Human Resource
lnformation Systems

The Role of lnformation Technology

Michael J. Kav anagh and Nchard D. J ohnson

EDITORS'NOTE

The purpose of this chapter is to provide an introduction to the t'ields o/ human resource man-
agement (HRM) and information technology (IT), and the combination of these two fields
into human resource inJormation systems (HRfS) The history of the t'ield of HRM and the impact
oJ computer technologt on HRM willbe coyered, as well as the advent of using ahuman resource
inJormation system and the subsequent eJJects on both HR and IT proJessionals. The diJJerent
types of HR activities witlbe discussed as well as the dit't'erent types oJ inJormation systems used
in-HRIS. A central Jocus of this chapter is the use of data t'rom the HRIS in support of managerial
decision making. The det,elopment of the Jteld of HRIS has had a signiJicant impact on the emer-
gence oJ strategic human resource ffianagement (strategic HRM), as is discussed in this chapter.
This first chapter wilt lay the groundworh t'or the remainder oJ this booh, and, consequently, it
is irnportant to understand thoroughly the concepts and ideas presented. This chapter contalns
det'initions Jor a number oJ terms in common use in the HRM, IT, and HRIS Jields. Note that a
glossary deflning these terms is also provided at the bach of this booh.) The central themes of this
booh in terms of the development, implementation, and use of an HRIS will also be discussed.
The chapter also presents a model of organizational functioning that provides an overview
oJ an HRIS embedded within an organizational and global business environment, with a specific
emphasis on its relationship to HR management and the strategic planning oJ an organization. A
brieJ overview oJ the major sections of the booh will be presented here as well; one discussinghow
each chapter is an integrat part of the entire field of HRIS. Finally, you should note that the "Key
Terms" used in tltis chapter are in bold and contained in a section at'ter the chapter "Summary."
The pattern oJ sections t'or this chapter willbe consistent t'or all chapters of this boolz.

Part I I lntroduction to Human Resource lnformation Systems (HRIS)

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eaA,t7?r1!1/Q >3_/2yfr"

agency responsible for the enforcement of equal opportunity employment' The
female staff members allege that, for the past 10 years, they have been passed

over for promotion because they are women, ln order to respond to this allegation,

the legal department requires historical data on the promotions of both males
and females for the past 10 years for all jobs in the company broken down by
department. lt also needs the training records for all managers involved in person-
nel actions, such as promotions, to ascertain whether or not they have received

training in equal employment provisions, especially in terms of unfair gender dis-

crimination.

Memo 2:Thesecond item is a complaint from employees working in a remote location
of the company, about 150 miles away. The employees are complaining that their

pay slips are not reaching them on time and that they are finding it difficult to get

timely and accurate information on the most recent leave and benefits policies of the

company.

Memo & A letter from the marketing manager states that he has not received any

updated information on the status of his request, made three months ago, to recruit a
new salesperson. The failure to recruit and hire a new salesperson has had a negative
effect on the overall sales of the company's products over the past quarter.

Memo4;A letter from the HR professional in charge of the southwest regional office
says that she is swamped with HR administrative work, particularly personnel trans-
actions on employees. As a result, she has not been able to meet employees in her
region to describe and begin to implement the recent Employee Engagement lnitia-
tive as required by corporate headquarters.

Memo 5; A note from one of the production managers indicates that he has received
a resignation letter from a highly regarded production engineer. She is resigning
because she has not received the training on new technology that she was promised
when hired. She notes that most of the other production engineers have attended this
training program and have had very positive reactions to it.

Memo & A strongly worded note from the director of finance asks the HR depart-
ment to justify the increasing costs associated with its operation. The note
indicates that the HR director needs to develop a business plan for the overall
operation of the HR department to include business plans for all of the HR pro-

grams, such as recruiting and training. Further, the finance director indicates that
unless the business cases can demonstrate a positive cost-benefit ratio, the budget

for the HR department will be reduced, which will lead to reductions in the HR

department professional staff .

As the HR director, your first thought may be to resign since searching for the
information required by these memos in the manual records on employees will

4 Part I I lntroduction to Human Resource lnformation Systems (HRIS)

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that "future economic and strategic advantage will rest with the organizations that can most

effectively attract, develop and retain a diverse group of the best and the brightest human
talent in the market place" (p. 200).

To maintain a competitive advanLage in the marketplace, firms need to balance the resources
avallable to the firm to achieve the desired results of profitability and survival. The resources
that are available to the firm fall into three general categories: physical, organizational,
and human. ln discussing how to gain a competitive advantage in the global market,
Porter (1990) noies that management of the human resources in the global economy is
the most critical of the three. The idea of treating human resources as a means of gaining a
competitive advantage in both the domestic and the global marketplace has been echoed by
other authors as well. As Greer (1995) states,

In a growing number of organizations human resources are now viewed
as a source of competitive advantage. There is greater recognition that
distinctive comperencies are obtained through highly developed employee
skills, distinctive organizational cultures, management processes, and
systems. This is in contrast to the traditional emphasis on transferable
resources such as equipment. . . . Increasingly, it is being recognizedthat
competitive advantage can be obtained with a high quality work force that
enables organizations to compete on the basis of market responsiveness,
product and service quality, differentiated products, and technological
innovation. (p. I05)

The effective management of human resources in a firm to gain a competitive advantage
requires timely and accurate int'ormation on current employees and potential employees in
the labor market. With the evolution of computer technology, meeting this information
requirement has been greatly enhanced through the creation of HRIS. A basic assumption
behind this book is that the effective management of employee information for decision
makers will be the critical process that helps a firm maximize the use of its human resources
and maintain competitiveness in its market.

The first purpose of this book is to provide information on the detelopment,
implementation, andmaintenance of an HRIS. The second purpose is to demonsLratehow
an HRIS cqnbe used to support HRM functions, such as in selecting and training employees,
to make them more efficient and effective. The final purpose is to emphasize how an
HRIS can provide timely and accurate employee information to assist decision makers
at both the strategic and operational levels in an organizalion. As a consequence, the
quality of employee information will have a strong effect on the overall elfectiveness of the
organization.

6 Part I I lntroduction to Human Resource lnformation Systems (HRIS)

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1.1Figure Historical Evolution ol HRM and HRIS

Early Systems Emerging Systems
Mid-20th Century 21st Century

HR Role HR Role

Employee Advocate Strategic Management Partner
Maintain Accurate Employee Records Evidence-Based HR
LegalCompliance HR Data Supports Strategic Decision-Making
React to Organizational Change External Focus: Serve "Customers"
lnternal Focus: Serve Employees LegalCompliance

System C h aracte r i stic s Sysfem C h aracteristics

lnflexible Flexible
Mobile
I Web-Deployed
lntegrated with Organizational System
I "lslands of Technology" Real-time Processing
Focused on lnformation Sharing
I

I Batch Processing

I

I Focused on Employee Record-Keeping

through time and motion studies that investigated the most effi.cient use of human
capabilities in the production process. Then, the work could be divided into pieces, and
the number of tasks to be completed by a worker during aL average workday could be
computed. These findings formed the basis of piece-rate pay systems, which were seen as the
most efficient way to motivate employees at that time.

At this point in history, there were very few government influences in employment
relations; consequently, employment terms, practices, and conditions were lelt to
ihe owners of the firm. As a result, abuses such as child labor and unsafe working
conditions were common. Some employers set up labor welfare and administration
departments to look after the interests of workers by maintaining records on health and
safety as well as recording hours worked and payroll. It is interesting to note that record
keeping is one o[ the major functions built into the design of an HRIS today; however,
there simply was no computer technology to automate the records at this time in history.
Of course, paper records were kept, and we can still see paper record HR systems in
many smaller fi.rms today.

I Paft I I lntroduction to Human Resource lnformation Systems (HRIS)

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tnq ,(auoru dq tsnl ]ou patp^uoui ara,t saadoldura tEqt pazrsuqdrua JE.^ aql rau€ tuaula^ou

suorlelal ueurnr{ aqf rulg aqt jo dtlliqetgord aqt uo trBdrur tuurgru8rs E per{ uoue^rtotu

pue dtlul:npord aadoldru? teql pazrTear sra8uueN uortf,unJ lauuosrad aqr;o ruarudola^ap
eqt uo ttrEdtur tear8 B pur{ lE.&\ aqt Suunp loqel Jo uouuzrlun pue uouzzlTlqoru aqf

technology to keep track of employee compensation, but this function was usually
outsourced to vendors since it was still extremely expensive for a firm to acquire or
develop the necessary software for the payroll function. It was simpler to outsource this
function. It is important to realize that computer technology was just beginning to be used
at this time, and it was complex and costly. With increasing legislation on employment
relations and employee unionization, industrial relations became one of the main foci of
the personnel department. Union-management bargaining over employment contracts
dominated the activity of the department, and these negotiations were not computer
based. Record keeping was still done manually despite the growing use of computerized
data processing in other depailments, such as accounts and materials management.
What resulted was an initial reluctance among personnel departments to acquire and use
computer technology for their programs. This had a long-term effect in many firms when
it came to adopting advancements in computer technology, even though this technology

got cheaper and easier to use.

Social lssues Era (1963-198O)

This period witnessed an unprecedented increase in the amount of labor legislation in the
United States, legislation that governed various parts of the employment relationship, such
as the prohibition of discriminatory practices, the promotion of occupational health and
safety, the provision of retirement benefits, and tax regulation. As a result, the personnel
deparrment was burdened with the additional responsibility of legislative compliance
that required coilection, analysis, and reporting of voluminous data to statutory
authorities. For example, to demonstrate that there was no unfair discriminatlon in
employment practices, a personnel depailment had to diligently co11ect, analyze, and store
data pertainingto all employment functions, such as recruitment, training, compensation,
and benefits. To avoid the threat o[ punitive damages for noncompliance, it had to ensure
that the data were comprehensive, accurate, and up to date, which made it essential to
automate the data collection, analysis, and report generation process. As you go through
the chaprers of this book, these varying laws and government guidelines will be covered
within the speciflc HR topics.

It was about this time that personnel departments were beginning to be called human
resources departments and the field of human resource management was born. The
increasing need to be in compliance with numerous employee protection laws or suffer
significant monetary penalties made senior managers aware of the importance of the HRM
function. In other words, effective and correct practices in HRM were stafting to affect
the "bottom line" of the firms, so thele was a significant growth of HR departments, and
computer technology had advanced to the point where it was beginning to be used. As a
result, there was an increasing demand for HR departments to adopt computer technology
to process employee information more effectively and efficiently This trend resulted in an

I10 Part I lntroduction to Human Resource lnformation Systems (HRIS)

tt JueLuoBeuen acrnoseu ueurnH +o uotlnlo^= ! t ra+dev3

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accurately states the need for those responsible for human resource management to cost
justify their function:

Few human resource managers-even the most energetic-take the time
to analyze the return on the corporation's personnel dollar. We feel we
aren't valued in our own organizations, that we cant get the resources
we need. We complain that management won't buy our proposals and
wonder why our aduce is so often ignored until the crisis stage. But the
human resources manager seldom stands back to look at the totai business
and ask: Why am I at the bottom looking up? The answer is painfully
apparent. We don't act like business managers-iike entrepreneurs whose

business happens to be people. (Fitz-enz,I9B0, p. 4I)

Even small and medium firms could afford computer-based HR systems that were run by
increasingly user-friendly microcomputers and could be shown to be cost-effective. The
prevailing management thinking regarding the use of computers in HR was not that their
use wouid result in a reduction in the number of empioyees needed in HR departments
but that employee activities and time could be shifted from transactional record keeping to
more transformational activities that would add value to the organization. This change in the
function of HRM could then be clearly measured in terms of cost-benefit ratios to the bottom
line of the company.

Technological Advancement Era and the
Emergence of Strategic HRM (199O to Present)

The economic landscape underwent radical changes throughout the 1990s with increasing
globalization, technological breakthroughs (particularly Internet-enabled Web services),
and hlper competition. Business process reengineering exercises became more common
and frequent, resulting in several initiatives, such as the rightsizing of employee numbers,
reducing the layers of management, reducing the bureaucracy of. organizational structures,
creating autonomous work teams, and outsourcing. These changes to both human resources
and the systems supporting HR are summarized in Figure 1.1.

Firms today reaTize that innovative and creative employees who hold the key to
organizational knowledge provide a sustainable competitive advantage because, unlike other
resources, intellectual capitai is difficult for competitors to imitate. Accordingly, the people
management function has become strategic in its importance and outlook and is geared to
attract, retain, and engage talent. These developments have led to the creation of the HR

balanced scorecard (Becker, Huselid, 6s Ulrich, 2001; Huselid, Becker, & Beatty, 2005),

I12 Part I Introduction to Human Resource lnformation Systems (HRIS)

€l fueLueSeuel^ ecJnosau ueurnH Jo uorlnlon= T Jaldeqc

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' (zooz' oooz' zuz-zrlJ : 0002' olrs?J) sruerSord
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settings (manufacturing, services, public sector, and not for profit, as well as
firm slze)

Shift in focus from managing people to creating stlategic contributions,
signifying the resource-based view of the firm and social capital

HR system components and structure, focusing on HR system architecture and
bundles of high-perforrnance work practices

Expanding the scope of HRM beyond the focal organization to include
customers, suppliers, and competitors, both Iocally and internationally

Achieving HR implementation and execution by tlanslating the rhetoric into
practice

. Measuring the outcomes of Strategic HRM by various means, such as the HR

balanced scorecard approach

o Research methodological issues that stress the importance of evidence-based

management

Another critical characteristic of Strategic HRM is the adoption and use of HR metrics
(Cascio, 2000; Lawler & Mohrman, 2003). Most functional departments of an organization
have utilized metrics for decades due to the nature of their business transactions. For
example, the marketing department has set sales goals and the effeciiveness metric that is
used is the percentage of sales relative to the goal. But, for HR, the focus on the measurement
of the cost effectiveness of programs is relatively recent. Despite the recent utilization of
metrics, their use continues to grow and has deepened as organizations seek to compete
globally

Kaplan and Norron (1996) first popularizedthe concept of thebalancedscorecard that goes
beyond traditional financial measures to assess firm performance to include customer,
internal process, and learning perspectives. Incorporating the principles of the balanced
scorecard approach, Beatty, Huselid, and Schneier (2003) developed the HR balanced
scorecard rhat seeks to achieve the key HR deliverables (workforce mindset, technical
knowledge, and workforce behavior) by aligning, integrating, and differentiating the HR
systems. In addition, Lawler, Levenson, and Boudreau (2004) emphasize that three t)?es
of metrics are important to evaluate the HR function. The first type is elficiency metics fot
administrative tasks such as "time to fill" jobs. The second tlpe is et'fectiveness metncs for
HR pracrices such as the cost to fill a job vacancy. The third tlpe is irnpact metics for HR
programs and practices that focus on the overall objective of developing and optimizing
workforce capabilities and competencies. For example, an otganization could assess the cost
per hire comparing current-year cost relative to the costs in previous years or after a major

I14 Part I lntroduction to Human Resource lnformation Systems (HRIS)

9t tueuioBPuet^ ocrnoseu uelxnH +o uorlnlo^= I roldeqc

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aqt puz 'sa8ueq: sntets aadoldura Suupe:t 'uorlEruro;ul 11or,(ed Sutratua 'aldruzxa ro;

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IEuourESuE{ '(SOOt
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activities that add value to the organization-for example, cultural or organizational change,
structural realignment, strategic redirection, and increasing innovation.

Wright et al. (1998) estimated that most HR departments spend approximately 65ok to 75ok
of their time on transactional activities, L5o/o to 30olo on traditional activities, and 5ok to
l5olo on transformational activities. One of the major purposes of the design, development,
and implementation of an HRIS is to reduce the amount of time HR employees have to
spend on transactional activities, allowing the staff to spend more time on traditional
and transformationai activities. This notion of using technology to improve transactional
activities and accomplish them more efficiently is the central theme of this book and
prolrdes one of the primary justifications for a computer-based system. In later chapters that
discuss various HR programs such as selection and training, we will see how a computer-
based system can aid in both traditional and transformational aciivities to make them
consistent with the strategic goals of the organization.

In terms of the broad roles of HR, Ulrich (1998) identifies four main roles, namely, strategic
business partnel, administrative expelt, employee champion, and change agent. U1rich,
Younger, and Brockbank (2008) stress that, in the 21st century, the HR organization should
function as a business within a business, shifting its focus from activities to outcomes and
capabilities and its structure so that it mirrors that of the business.

lnterface Between HR and Technology

Technology-driven automation (IT) and the redesign of work processes certainly help reduce
costs and cycle times as well as improve quality Information systems (IS) can further help
decision makers to make and implement strategic decisions. However, IT is oniy a tool
and can only complement, not substitute [or, the people who use it. Often, organizations
mistake IT as a message and not the messenger, so they divert time, effort, and money
away from a long-term investment in people to developing and deploying information
technologies (Thite, 2004).In fact, the critical success factors in information systems project
implementation are often nontechnical and due more to political, social, and managerial

issues rather than technical issues (Martinsons & Chong, 1999). This topic is covered in

detail in Chapters B and 9.

With the increasing use o[ information technologies in HR planning and delivery the way
people in organizations look at the nature and role of HR itself may change (Roehling et a1.,
2005). Wirh HR data and reports now readily available on their desktops, will managers
interact less with the HR department and see it as being less important? If that is so, how wiil
it affect the attitude of HR professionals toward their jobs and profession? Will they resist the
adoption of technology if they perceive that this technology lessens their stalus?

16 eart f I lntroduction to Human Resource lnformation Systems (HRIS)

Ll lueLueBeuel^ ecrnoseu ueulnH +o uollnlo^= | f .refdeUo

Sur4uur uorsn?p luuoiturado pue 'iEJrlf,El 'rrBalurls roJ pasn aq deur uoIlELuloJuI UH sE

'stu?Ilf, lertuatod;o dtaue,t E aIE alaql uralsds aql Jo ,,sluJllf,,, aql ol 'uoqawto{ut iprttll
puD )j\tnnD Jo ruroJ aqt ur 'al.tras apr,rord ot s} SIdH aqt;o asodrnd druulrd aq1

611 s,,{ueduroc aqt a8uueru ot pau8rsap rua1s,{s pazr:alnduol

E oi laJ?l ot SIUH rul?t aqt asn IlL{\ a,ra, 'ra,ta,troq 'Iooq slql 3o asodrnd ar{l roJ llnluJlp

dlarua;xa uaaq a^Eq plno^\ surals.{s pazrratnduror Jo uouetuarualdurr puu tuaurdols^ap aql

'suatsds raded puq tou pErl sarusdluoo asaql JI sapltord gpg s,depot IEI{I EtEp Jo r{l1ea.tr

aql apr.rord lI prp rou 'uralsds pazualndulol E ur sE dlprnb sB auop tou sE,\\ uolteurloJul
aadoidrua yo tuaura8euuru aqt tnq 'SIUH uE qtr.{\ alqu:edruor llits ?la^\ dSolouqrat ralndruoc

;o ruaurdola^ap aqt aroJaq pasn salueduroJ lsour teqt srualsds raded aq1 '(sl3plo1 lo salu
ur palols ''3'a):adud uo stslx? uralsds aqt lnq'ruatsds uoitururo;ul alJnosal uuurm{ E szll

lyts ruatsds pazr:atnduof, B a^Er{ lou saop leql .(uEduol E tuql alou ol luutrodul st 11

'EtEp pue 'sarnpaco;d pue satrqod 'srulo1 'aldoad

sapnlJur osle tr larr.r,r4os puE are,r\pler{ sapnpur tl 'sI terlf asn tsaq stl lo; sluauuedap

Suorus uoqeladoof, sa:rnbar 1l 'aleA{}os patpl?l-dH patulf,ossu puz ale,{\pteq ralndruoo

dldurs iou si SIUH uV suorsrJap leua8euuru pue NdH troddns ot sal.lnosar uEulnq

quorlezruuslo ue Surp-rz8er uortuurloJur alnqulsrp pue '?^alltar 'az[1eue'a]Eindlueul 'alols

'a;rnbce ot pasn ruatsds E sE tr auuap a.{\ 'SIUH uB Jo suoltlugap duuru aqt 8uI.^ ehal l?IV

i"i;'.':i -!:S'--:.;.:''-'
= "iI::=,1-i:=i:; :::=

sluH uo rerulrd v

'(t002 'uerurlo141 19 lal.\\B-l) ssarord aqt ur plB a^uf,3;Ja uE pue >1:o1q Sutplnq B sE slre ruals.(s

slqt 'JauUEd ssaulsnq lSatels E dH aletu dllecrtuuotnu lou IIL{\ urals.(s pa8pag-11q 'p?luEApE
uu Sulreq a1r{16 ,, ssarSo:d ut rautred,, tUff sE uaas aq 1lp^ {Solouqoal 'qeuolssa;ord 611;o

s1p4s qol pa,tordrur aqt q]IA saf,I^-Ias sll sla^I1ap pue paauuBto sl luauluedap UH aql ,(e.u aqt
>lurqlal pue sllr{s ,{Aau uJual ot paau 11L/( sleuorss4ord 6g lEqt supaur oslE sII{I suoltual.I?tul

pue saAItEItIut :t8atels 'pappe-anle^ qBno.rqt pauuoJsuerl puu pauuapar sI NdH Jo zlol ar{l
'saBuuqc asaqt q8no.rqf 'sarlrlrlJe aArlEruroJSuEI pue 'c€atzrls 'xalduo: ?roru ol salrnose-I

atvJolle ot ur8aq I1L{\ sluauruudrp UU 's>1set aAuEISruruIpE ro; palnbar auE ar{t Sutsearcap
dpuucgru8rs dSolouqcat qtl^\ 'tng tuEuodrur sI snf,o1 la{EtalEl pue alIteltslulrupE stqt {epol

u?Aa 'pue ',fta,tr1ap stl uI snloJ -IaIEtalEJ puu a.\IlEllsIuIuIpE uE perl sELI NdH 'uollnlo^?
slr Jo lsour q8norql 'SIUH uE Sunuaualdrul pur Surdolalap uaq.{\ tuetrodrur ,{1-relnriuud

aq uEf, ssauafe,^aE srql a8ueqr Sur8uuzlu ur sf,ltuod leuouezruz8ro Jo lnJpulul aq ot spe3u

tuarua8BueLu dol 'aroJarar{I uolurlroJ alE sartrlua lu?puadapul sB SurlcB suolltunJ pup

sluaurlrrdap leuorturado uaa.&laq srE,\\Jrnl 'sartrleluaur olIS r{ll-\\ suottBztuB8ro IEuoItIpBll uI

(e.g., planning for needed employees in a merger); to avoid litigation (e.g., identifying
discrimination problems in hiring); to evaluate programs, policies, or practices (e.g.,
evaluating the effectiveness of a training program); and to suppofi daily operations (e.g.,
helping managers monitor the work time and attendance of their employees). All these uses
mean that there is a mandatory requirement that data and reports be accurate and timely and
that the client can understand how to use the information.

Because of the complexity and data intensiveness of the HRM function, it is one of the iast
management functions to be targeted for automation (Bussler & Davis, 2001/2002). This fact
does nor mean rhat an HRIS is not important; it just indicates the difficulty of developing
and implementing it compared wlth other business functions-for example, the billing and
accounting systems. Powered by information systems and the Internet, almost every process
in every function of HRM has been computerized today. A sample employee home screen for
an HRIS is shown in Figure 1.2

The systems and process focus helps organizations keep the customer perspective in mind,
since quality is primarily defined and operationalized in terms of total customer satisfaction
(Evans, 2005). Today's competitive environment requires organizations to integrate the

1.2Figure SuccessFactors Employee Home Screen

suere**factcprs"
tu*i)ffi

w6qTi olkklhls

edfelf&ihr6edetu.sddM!nbtue31hdrto

Source: O SuccessFactors, lnc. All rights reserved.

18 Part I I lntroduction to Human Resource lnformation Systems (HRIS)

6t luorus8euen eornosou ueLUnH Jo uorlnio^= | f rerdeUC

isassacord

luarua8eueu puu suoltElado XU Sut,to.rdurr dq ssaua,utttadruoc SursBartur .

:(9OOZ '11eg->lcruBua-I ry I1BH

-4cru8ua1 V J) suouJzsuur] uolleruroJul Jo paads aqt esuarf,ul ot pur s?IlIAIllE

puB slrun sso.r:e dlurlcauuoJ leJnlJnrts apltord ol suolrezluEBro salquua srqt

:asEqelep palzrBatur 'a18urs e sB arnlctd uollururoJul a.ttsuaqarduor e Sutpl,ro:d .

apnpur drqf (ZOOZ 'tesg ry sraq:ag) sa8etuz.tpz lzra^as srurg sa.tf 5169 Sursn

d".s$NH ##*gru *$& *ff ,ti*gq

NUH-3 ot a^ou aql
Surtroddns suratsds;o uoursrnbce puz u8rsap aqt Surr(papun dSolouq:at pue sruatsds ar{l uo

pasnloJ a,rolu sr SIUH uB pue '(Suturull-a pue tualutlnrler-a ' 8 a) pala^ITap sl,{ttluuott:un1
uH -{\oq uo p?snJoJ aroru aq ol spuel NUH-a lEql sI sIuH puB NUH-a ua?.{\laq salualaJJlp
aqi lu 3ur4oo1 1o du.tt laqtouv uouBzrue8ro aql ur slaqlo ritt,tt tJauuof, o1 ro dlaloual BtEp
dH ssaJlE ot saa(oldtua ?lqeua leql slool 8urryo.r,rlau le1Jos puu sauoqdtrzrus sE qf,ns saf,Il?p

aq uela uEf, lI 'tuaruuorr,\ua qdepot uI suorlertTddv pasuq-qaL1 puE arnlJalIqJJE (dUA)
Euruuuld aJrnosar asudralua pater8atur 'a1zrs-a3:e1 E lo '(tuaua8rueru arueuro;.rad ' 3 a)
uope:rtdde gg a18urs E uo p?snloJ suralsds lBuouJun; Ileurs 'sasEqutep sB qJns safiolouqcal
apnlJul uel SIUH uy 'iueuraBeueur arJnoser uEunq 8uE:npuoc go du,tt,\\au slqt Surdpapun

sassacord puu dSolouqlal aqt sasudruoo SIUH uE '>Iooq slqt ut pazrlentdaf,uol sE i(1asra,luo3

'(qgt d '6002 'r>ls.ttazsr>lnl ry auots) ,,sassero;d uollErlunluurof, pue

'suraled uortlelalul IEIJos 's,4trog uolteruro;ul,, 8ur.lrpour dq,(puaragrp auop ?q ol uollf,unJ
UH ai{t Surlqeua su dBolouq:at eas ppalsur tnq selrnosar uuurnq;o uoddns aql ur {8o1ouq:at

azliun dlduns t,uop qceo;ddr 65g-a uz 8ur:erqrua suottuzrueSro (/002 '"rararuqort5)
sarJnosal uuunq Surtrnpuor pue 'Surlcauuor 'Surleurruasslp JoJ lalual a^l?u aLIl s?urof,eq

dSolouqral {11euuasstr 'i,tx d1 .nod;o arEr alst grm puod UH eql ' ' 'lEuoISS3Jord 5g

uB qtr,ltr leap nod p.tr ra8uol oN ar3q tuara;Jlp tlq E >looi 1p.,r,r s8urq1,, :(8002) auols puE
Iutnan, Jo spro,^a aqt q8norqt uaas tsaq aq uel dqdosopqd slqf sarl^ras UH 2^IlraJJa pue
tuarf,UJa 8uua.ulap 3o tuauoduo: Ieluaf, aqt sE 'qa1\ aqt dl.relncrrred dSolouqcal uoltztulo;ul
sasn lr :UH lo d.ra,tqap aql roJ dqdosopqd E stJaual 'NEH-a ro 'tuaura8euelu aJrnosar uEuInLI

f,ruolJal3 SI5H pue I,^[UH-a uaa.^a]?q uouJuusrp aqt Surue:uof, asr-Ie uBf, uolsn1uoJ

ffi$HH p{r* L'$trH-*

'alttcalqo slqr IIUlnl ot uonEurloJul
aadoldtua dlauu puu etelnJf,E aturaua8 ot dSolouqrat aqt Surpr.to;d dq sdlaq 5169
a^itleJJa uV 'purur uI laruotsnJ aqt Surdaa4 allq,tt tuaut-Iudap luuortcun; qlea Jo S?I1iAI1trE

. collecting appropdate data andconverting them to information and knowledge

for improved timeliness and quality of decision making;

. producin ga greater number and variety of accurate and real-time HR-related

reports;

o streamlining and enhancing the efficiency and effectiveness of HR administrative

functions;

o shifting the focus of HR from the processing of iransactions to strategic HRM;
. reengineering HR processes and functions; and
o improving employee satisfaction by delivering HR services more quickly and

accurately.

The ability of firms to harness the potential of HRIS depends on a variety of factors, such as

r the slze of the organization, with large firms generally reaping greater benefits;
o the amount of top management support and commitment;
o the availability of resources (time, money, and personnel);
o rhe HR philosophy of the company as well as its vision, organizational culture,

structure, and systems;

. managerial competence in cross-functional decision making, employee

involvement, and coaching; and

. the ability and motivation of employees in adopting change, such as increased

automation across and between functions (Ngai & Wat, 2004)'

In assessing the benefits and impact of an HRIS to an organizaLion, tlpical accounting
methods do not work with the HRM function (Becker et al., 2001; Cascio, 2000;Fitz-enz,
2OOO,}OO2;Huselid etal.,2OO5;Thite, 2004;Ulrich & Smallwood, 2005). while there
are several tangible benefits in implementing an HRIS, such as payroll efficiencies and a
reduction rn labor costs due to automation, there are several intangible or hidden benefits as
well (Roberts, 1999). They include employee satisfaction with streamiined and efficient HR
processes and freeing up HR from routine, administrative matters to focus on strategic goals.

Furthermore, HR practices can help organizations untangle the rigidity and inertia
associated with the mechanistic, routine nature of enterprise resource planning (ERP).
ERP software applications are a set of integrated database appiications or modules that
carry out the most common business functions, including HR, general ledger, accounts
payable, accounts receivable, order management, inventory control, and customer

20 IPart I lntroduction to Human Resource lnformation Systems (HRIS)

re [ffi,I=lueure=eue^E5m6s=E-uEur", | r rerdeuc

'luaurdola,tap 'u8rsap 'srslpur aqt q8norqr suouJunJ saJJnoseJ uerum{ slr Surzuatndruoc

sJaprsuoJ lueduroo E aurrl aql uorJ ua>1ut sdats aql ot sraJeJ ssacord ruaurdolaaap SIEH aql,

:SIEH uE ro; ssaoo;d tuaurdola,r.ap uratsls 8ur.tro11o; ar{t puaruruof,al 'uorlf,unJ I,\IEH ar{l

ot flCS lruourpel aqt So saseqd pue sldacuor ulzur aqr Surdldde '(066I) '1e n qBeue,vy

'saseqd str puu flCS eqr ot sa3uareJar aldrrlnur aru araqt '>Iooq srql Jo I1 pue I surd ur
ll"rulnoruud 'uaes aq IIFA sV 'aruuualumu (E) pue 'uouetuatualdq (l) 'u8rsap (€) 'srs{€ue (Z)
'8uruue1d (1) :sasuqd praua8 a U sur{ flCS aqr tuqt tuauraar8e sr eraql ing 'pagrcads llzur8uo

sE asn or rlmuJrp rEq.^aa1uos sl f-ICS lEuoErpErr arlr 'parou anuq (9961 'su,uq i2961 'sEliv)

sralulv\ raqto pur (Z86I) uospzJ puz an8erdg sE 'rala^\oH (f'IAS) apdr a;q tuaurdola,rap

,(uszu;roalusd8rssaapqtIEpuerllaoqJeal rs{tda'alJsn3tuoJtaatsrlBS^u\roslsloaJcoor1d pasoddns sr uatsds Surssacord uouerruoJul
uoEzrruoJur puu Suuaaur8ua ot Surpro:cy

slHH uE rot ssaaoJd +uauldol€Aeo rua+sl(s

papaau sE elqel srqt ot {JEq raJar plnoqs nol puu 'passnrsrp aq 11yy\ salduruxa dH ]raql
pue suratsls asaqt ')iooq srqr q8norqt oB nod sy '8ur4eur uorsrJap pue suonerado uoddns ol

rueqt uo puadap plno.^a pue acqd ur suratsds asar{t Jo auros aABq plno,4 . suonuzruu8ro tsour

'qql atrdsac 'os op ol saJrnoseJ ar{t a^Er{ ol suou€zruESro pazrspur ot IIEurs toJ lEnsnun aq
plno,/yr 1r 'suralsls;o sad& es?r{l Jo 'lle tou JI 'lsoru paiuaualdul d1a4rt aAEr{ suorluzrueS.ro
pqo13 'a8rq q8noqqy 'NUH roJ suortucrlddu qlua sla^al lvuouezruv?to tuaraJJrp tE IAI6H
uoddns ot p?lEaJJ uaaq aABr{ suratsds pasuq-ratndruoc cgrcads'I'I elqeJ ur uaas sV

'salrnosar uurum{ uoddns ot pesn aq uEf, daqr ,,t,toq;o saldurexa sapu.ord puz 'qeo8 puu

snoog -rolzur Jraq] stsll 'suralsds uorlzruroJur;o saddl roluur aq] sSolutuo I'I alquJ. 'sla^al

leuo\eztueS,ro uuds igr{l asoqt puu 'sar8ater]s puu sassacord lelel-alunf,exa 'SuruoEoun]
lurra8uueru'suoEerado dliup :siroddns uratsds aqt Surssacotdleuofivztuu8ro;o 1arra1

lzr{.{\ uo sn3oJ ol sr srqt Surop;o sduzrr uounuoJ lsoru eql Jo ?uo 'suralsls uorluruJoJui
Sutzuo?aiet;o sdult t{uew am araqt q8noqry 'SIEH uE urr{lr,,ta ?sn JoJ puz txatuof, dH
aql ot paqddv,{ypeat lsour ?rB teqt sruatsds;o saddr rrszq tsoru aqt augap ot Suro8 are a,4a
'sruatsds pasuq-ratnduol Jo uouz3grssulJ ar{t loJ sarSolod& aldrtlnur ere aleqt q8noqrly

slHH tCI sad4t +uaraJ.J.rfi

(Eooz 'salle,\\ ry d-ragl sur:ls(s

?sarll qlr,{\ palultrossu stuauaq crBaterts arll azrlual uEJ suorlrzrue8ro luqt os lurlrodrul sI dda
uu;o Suruortrun; Suro8uo pue uortlnpo-rtul aql ur slEuorssa3ord UH Jo tuarua8uBua a,utop

'aroJaraql (SOOZ '11u9-4rru8ua-I N IIEH-IrruBua-1 V f) sddE Jo ?sn puE uouEluaualdrur

aqt uI ?f,uEtsISSE alqElaplsuo: apr,tord uer Surplnq drqsuouular pue 'drqspre,trats letrdu:
uEulnq 'luauta8uurru a8pa1.,nou1 uo srseqdura s,l^{UH dlsnor,tqg luarua8suuur drqsuortvlar

1.1Table lnformation Systems Providing Support for HRM

0rganizational Type of System Major Goals and Focus HRM Examples
Level Transaction
Operational Processing lmproved transaction speed Payroll processing
System and accuracy
Managerial Time and attendance
Management lmproved efficiency in the entry
Executive lnformation processing of daily business
System transactions Online creation and
Boundary dissemination of
Spanning Executive Automation of routine application forms
lnformation transactions
System
Reduced transaction costs
Decision
Support Provides key data to Producing EE03
System managers reports

Supports regular and Calculating yield
ongoing decisions ratios for recruiting

Provides defined and ad- Calculating per-
hoc reporting capita merit
increases

Provides aggregate, high- Succession planning
level data
Aggregate data on
Helps managers with long- balanced scorecard
range planning

Su pports strategic d i rection
and decisions

lnteractive and iterative Staffing needs

managerial decision making assessment

Supports forecasting and Labor market
"what-if" analysis analysis

Supports business Employee skills
simulations assessment

Part I I lntroduction to Human Resource lnformation Systems (HRIS)

EZ JUOLueSeuelA ecrnoseu ueLunH J;o uorJnlon= |
I

saseqd arlt Jo suoudutrsap asarl.l Luo{ pJzrsErldura :q ot sturod ynllu) or\t ?.rE alaqt 'SIUH
uE lo uoltEtuarualdut pue tuarudolJ,\ap aql ur sasuqd aql IIE la;\oJ 1r,{\ {ooq srqt q8noqty

(8t d) .,uournle^E puE 'uorS-rJAuol puE uouullElsul

'tuarudol?^ag ruats.{5 'u8rsag rua1s.(5 'suortp:Ur:ads Luatsds 'srsdluuy spaaN 'tuarua8eurl4l

ot 1(e2s8od6oI)r4r.,J{:lsEaABe\ tsdquJp^aasso^d\oorldloJ?upolnoaqqst S1UH a^nla3;? uE Jo tuarudola,rap tEqt salelrpur aH
ot relllurs atrnb sr ssa:ord tuaurdola,rap
ruatsds srql

(gO-ZO ddl ,.uratsds alil Jo luJrul,rordurr pup 'luortrnlE,\a 'aluuu?tururu 'uortgtuarualdrur

dVS arnlcalrqsre LUOIS^S
tAUH uosMel {8olouqca1 uoLUur03
pue o3Jnos elep alSurs 3uruue16
secrnosau
elep asUdraJUf

alerod.ros jo uorlezr P]luoc
I
pue uorlPrSolul

sluor.Jnf,op pareqs stx?o] lPnUrA suoddnS sarSolour-.l3al
pue sSurlaaur ourluo uorlPJoq elloS
sea{o1d ula
Sururee;-a ro+ Uoddns uaoMlaq uorleroqslloc sLUals^s
uollmlunLuLuos uorlPurolnv
pue uorlP3runLUuroS
, ' Eurlnpeqes cruollcalo sUoddns a3!il0

urooJ-Fu !u ler] r€Lu-l uorlscrunuuloc Luals^s ]iadxl

f saSlnosol
pa;eL.ls Eurlnpeqcg
saqsle0s
proM^aI ournsaU sluaurnJop SuruBrse6

: {Bo1ouqce1

qlm^ suolsl3ap aleLuolnv

sujals,4s uoqeujolur olur
aBpollaou)j usLunLl poq LUf

or stages of system development. One, the system development process beglns whenthe
company first begins to consider computerizing its HR functions. It is importanLto document
this beginning of the process so that it can be considered when the system is being evaluated
and. maintained. The second critical point is the importance of the evaluation and, as needed,
the improvement of the system. This evaluation must be continuous and occur not only after
the system has been implemented but also at every stage of the development. The quality of
these evaluations of the system will depend heavily on the documentation of the stages of the
entire system development process. The documentation of the planning and development of
a system is one of the most impoftant determinants of successful system implementation, as
well as of continued system improvement.

A Model of Organizational Functioning

As stated in the previous paragraph, the documentation and evaluation of HRIS
development and implementation are critical since we envision the effective functioning
of any organization as dependent on the effective management of its employees. The use
of computer technology to improve the management of employees is centered on the
creation and maintenance of an HRIS. Figure 1.3 depicts an overyiew of an HRIS within the
organizational and a giobal business environment'

This figure shows at its center the Human Resources environment and the major
components of that environment (e.g., HR Programs). The next layel in the figure
represents the organizational environment and its components. Outside the organizational
environment is the giobal business environment, which directly influences the organizational
environment and indirectly affects the HR environment. Each ol these layers mutually
influences each other and together can impact the development and implementation of the
HRIS. For example, differing labor laws across countries mean that different HR policies

may be implemented and may affect the tlpe of data collected by the HRIS and reported
to regulatory agencies in different companies. The figure also indicates the interrelaiedness

between the strategic management system; the strategic HRM system; and the performance,
business, and HR goals that are generated during the strategic planning process. As will be
emphasized throughout this book, the alignment between the global business environment,
the strategic management system, the strategic HR management system, the business
goals, the HR goals, and the HR programs is critical to the organization's maintenance of its

competitiveness in the market (Evans & Davis, 2005; Huselid, Jackson, & Schuler, ).997).

There are several aspects of this model that are critical. First, this model is a framework
to use in reading, organizing, and understanding the information given in this book.
Second, this is a systems model; that is, it is organic and can change ovel time, as the

24 Part | | lntroduction to Human Resource lnformation Systems (HRIS)

9e JueuroBeue6l ecrnosou ueurnH ,Lo uorJnlo^= | t rafdeU3

'{oocl ?lr}ua srr{t Jo {qdosopqd rrseq

3qt sr rlrrq,u 'a7ptylotttl UH uo 7LLD II uo {11nnba puadap SI6H uE Jo uouetuarualdrur puv

'tuarudola,rap'u8rsap 1r'fsarrns aql tErll alou ot luulrodur sr tr i(11uur4 (EgOZ ''IE ra
pllasng:I002'18 ta r?WaB) prurarors arroJ{ro.^&UH arp parcraua8 sELI pu€

Q.OOZ '.000Z'zua-zrlj:0002'or)sul) plall NdH arlt u1 3ur>1urqt tuarrnr LItl^\ tualsrsuol

sr srsuqdua srql uortJElatur lEnurluor ur a-ru'(Iog-tuarulsoAUr uo u-rnlal pue pappE

anle^) stlnsal tr;Juaq-tsof, puE slrllaru UH Jo slulat u1 'stlnsal uortznlr^3 urrrSord 611
arll puE SIdH ar{r 'qunoJ slolrladruoJ stl ot uouElar ui alrsuadxa oot aq tsnI plnoa
EtEp uH SutBBuBru Jo stsof, aq1 ,(1a,tura1ga sB atadruol ot alqu 3q lou plno.{\ 3roJ
st1 lE SIUH uE lnolltr.tt SurtB"rado uortBzruB8ro uE turlt uortualuoJ lno sr lr '-ra,ra,rto11

Suruorlrunl leuortuzrueSlo Jo 1?poru r tuasarda; Ilrts plno.\\ l1 pa^oLlrar arar\ SIUH aql
Jl ler{l JloN uortezruB8ro ?r1t Jo uorterado tuarcrgJa aLIt ot IElnIlJ sE SIUH uE Jo asn

arll uo paJalual sr lapou Jrll 'plrql (stuauruo-nlua ssaursnq 1uqo13 puE IEuouEZtuBS;o
ar{} trsJJE'ulnl uf i11,r\ puE tuauruo-lr,\ua dH aql traJlr llut arlo]>llo,\\ 3r1l u1 puE

,(l:rros ur uorlEurrurJlsrp lrE]un uo snfo] Surspallur aql ' 3 a) sa8uuqr luJruuo-rr'ru3

#[email protected].

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luauuo4AuS ssautsng leqole

slusuru0rAul sseursng

leqol3 pue leuorlezrueEro ur psppaqul sluH ue l0 rt^erile^0 l

Themes of the Book

The overall theme of this book is that the HR and IT functions operate separately and
together in an HRIS and are focused on prol,rding accurate and timely information for
managerial decisions, both strategic and operational. There are other themes that are
emphasized in this book, which can also be seen in Figure 1.3. These themes are the major
factors that influence the effective operation of the organtzalion through their impact on
managerial decisions. In addition, they directly affect the success of both the HRM programs
and the use of the HRIS. These factors are as follows:

1. The effective alignment between the strategy of the finn, the HR strategr, and

HR programs,

2. The importance of tying HRM programs to IT applications and databases,

3. The importance of legai considerations in all HR programs and functions,

4. Theneed for a cooperative relationship between HR and IT professionals, and

5. The criticai need for the creation and use of HR metrlcs to guide decision

making and evaluate the cost-effectiveness ol the HR strategy and programs.

A11 the chapters of this book will contain some reference to some or all of these factors, and
their effects will be discussed in detail in each chapter.

{o SUMMARY time, so did HRM, and these improvements
made their marriage into HRIS that much
€=_-r The primary purpose ol this chapter was easier. The advances in the field of HRIS
to introduce the academic and practitioner also led to a reduction in the percentage
field of human resource information of time that HR professionals spent on
systems (HRIS), emphasizing that an HRIS routine transactional and traditional
is at the intersection of IT and HRM. The activities and an increase in the percentage
evolution of the field of HRIS, from its of time spent on transformational ones. The
initial role o[ a record keeper concerned increase in time spent on transformational
with only transactional HR activities, such activities improves the "value added" by
as changing addresses on employee records, HRM programs to the strategic plan of an
to one of becoming a strategic partner
was covered in detail. This evolution organization.
demonstrated that, as lT improved over

26 Part I I lntroduction to Human Resource lnformation Systems (HRIS)

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traditional HR transactional HR transformational HR
activities 7
activities 7 activities 7

DISCUSSION QUESTIONS

L What are the factors that changed the use of Strategic HRM in a firm's business

primary roie of HRM from a caretaker of strategy?
records to a strategic partner?
5. How does technology help deliver
2. Describe the historical evolution of transactional, traditional, and
HRM and HRIS in terms of the t ransformational HR activities more
efficiently and effectively?
changing role of HRM and the
influence of computer technology on 6. Justify the need for an HRIS.
HRM.
7. Describe and differentiate the maior
3 What is required for the effective types of information systems.

management of human resources in a 8. Using the organizational model
firm to gain a competitive advantage in presented in this chapter, explain why
the marketplace? and how the global business
environment and organi zational
'1. Describe the emergence of strategic environment influence the nature and
HRM and the lnfluence of comPuter importance of the HRIS function.
technology What are some of the
approaches used in HRM to facilitate the

CASE STUDY POSITION
DESCRIPTION AND SPECIFICATION
FOR AN HRIS ADMINISTRATOR

One way to assess the nature and importance of a particular function or position in an
organization is to examine the job description and job specifications for this position, as they
tell us what activities, duties, and tasks are involved in the job as well as what knowledge,
ski}|s, and abilities (KSA) are required to perform the job. The lollowing is an aclual
adver[isemen[ for an HRIS administrator. A large corporadon placed this ad in the 'Job
Central" section of the Internet site for the lnternational Association for Human Resources
lnformation Managementl (http ://www. ihrim. org).

HRIS Administrator

Job Level: Senior (5+ Years), Full time
Reports to: Senior Director of Human Resources Operations

IPart I Introduction to Human Resource lnformation Systems (HRIS)

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A;euung uorlrsod

o Maintains data integrity in AfS, HRIS, and other enterprise systems by running queries

and analyzing and fully auditing data across all HR departments.

. Conducts new hire in-processing to include systems training for new employees and

entering new employee information in Costpoint.

o Conducts termination out-processing to include entering employee separation

information in Costpoint and reporting attntion data.

o Develops user procedures, guidelines, and documentation for HR-related systems. Tiains

system users on new processes/functionality.

o Provides HR tools and resources for management and staff to accomplish their goals and

objectives.

o Processes personnel actions (hires, terminations, pay & title changes, promotions,

employment status, etc.) to include entering data into HRIS.

o Assisrs with special HR-related projects and provides training to other staff members as

required.

. Performs other duties as assigned.

Requirements

Specialized Knowledge and Skills

. Experience working with a multiple-site workforce.
o Working knowledge of federal and state employment laws and related acts.
o Advanced to expefi level computer skills.
r Excellent verbal and written communication and presentation skills.
o Great interpersonal skills.
o StronB time-management and prioritization skills.

Qualifications

. Bachelor's degree in HR and./or equivalent professional experience.
o 3-5 years of technical HRIS experience in professional HR environment.
. Self-directed, highly responsive, and detail oriented.
. Ability to maintain absolute confidentiality in all business matters.
o Government contracting experience is a plus.

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suorlseno r(pnts asec

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32 part I I lntroduction to Human Resource lnformation Systems (HRIS)

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