HR Administration and HRIS Module 06

HR Administration and HRIS Module 06

Module 5 Objectives Understand the basic role of job analysis in human resources, and explain the role of HRIS in supporting job analysis. Discuss the complexity of HR administration and the advantages of an HRIS over a “paperand-pencil” HR operation. Discuss the advantages of service-oriented architecture (SOA) of the HRIS. Discuss the advantages and disadvantages of each of the four structural approaches to HR administration. Understand how legal compliance with government mandates is an important part of HIRS functionality. Understand employee and manager self service systems. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 2

CHAPTER 10 HR Administration and HRIS

TRANSACTIONAL HR ACTIVITIES Transactional Activities Make Up 65-75% Of All HR Activities. Examples Of HR Administration Include: Benefits Administration Record Keeping Employee Services. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 4

INTRODUCTION TO HR ADMINISTRATION AND THE HRIS ENVIRONMENT HRIS Employee Database (BEIM) Must Be Carefully Constructed Record And Repository For All Relevant Employee Information Must Be Created Prior To Other Modules For Programs The Role Of HRIS Is To Enhance Efficiency - Reducing Costs) Effectiveness - Adding Value For ‘Internal’ Customer Satisfaction Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 5

JOB ANALYSIS Job Analysis The Process Of Systematically Obtaining Information About Jobs By Determining The Duties, Tasks, Or Activities Of Jobs,. Job Descriptions Define The Working Contract Between The Employee And The Organization The “Heart” Of The HRM System Critically Important That They Be Accurate And Timely HR Department Should Capture And Store The Results Of The Job Analysis And Job Descriptions Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Within The HRIS Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 6

STEPS IN JOB ANALYSIS 1. 2. 3. Indentify Sources Of Information About The Job Identify The Type Of Job Information Or Data Determine The Methods Of Collecting The Job Data Use Standardized Techniques To Do Job Analysis (e.g. Functional Job Analysis, The Position Analysis Questionnaire System, The Task Inventory Analysis, And The Critical Incident Method Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 7

HRIS APPLICATIONS IN JOB ANALYSIS The Utilization Of Technology Has Dramatically Increased The Availability Of Information Supporting Job Analysis And The Convenience Of Conducting Job Analysis. O*Net Database hr-guide.com Vendors Offer Stand-alone Products Or Components Of A Larger Product Offering. Completing Job Analysis And Deriving Job Descriptions Can Be Accomplished Through Online Survey Techniques. Maintaining Accurate Job Descriptions Can Also Be Aided By An HRIS. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 8

HR ADMINISTRATION & HRIS Can Improve Efficiency Of HR Administration: Can Improve Data Accuracy Can Speed The Process Of Building Reports Can Support Differences In Reporting Mandated By Global Governmental Jurisdictions Can Support Secure Global Distribution Of Data Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 9

ENABLING ARCHITECTURE Service Oriented Architecture (SOA) Collection Of Internal And External Services That Can Communicate With Each Other Extensible Markup Language (XML) Allows Data Sharing Across Different Information Systems Across The Internet Improves Interface Technology Through Platform Independence And Protocols Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 10

SOA BUSINESS MODELING PROCESS Figure 10.1 SOURCE: Marks and Bell (2006, chap. 3). Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 11

ADVANTAGES OF XML-ENHANCED SOA Improved Security Enhanced Performance Added Auditing & Change Capabilities Enables Alternate Delivery Models Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 12

TYPICAL HRM ADMINISTRATION SERVICE DELIVERY ALTERNATIVES Figure 10.2 Self-service portal Shared service center Outsourcing Offshoring Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 13

THEORY AND HR ADMINISTRATION Resource-Based Theory Physical, Organizational & Human Capital Innovative Combinations Of Technology, Systems & Intellectual Capital Generate Competitive Advantage Transaction Cost Theory Choose To Purchase Goods And Services They Need In The Competitive Marketplace Or Make Those Goods And Services Internally Make Or Buy. Eg., Full-time Eg. Wal Mart’s Just-in-time Vs Resource Temp Employees Michael J. Kavanagh, Thite, and Richard D. Johnson - Human Supply ChainMohan Management Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 14

SELF SERVICEC PORTALS AND HRIS Employee Self-Service (ESS) HR Portals Provide An Electronic Means For A Company’s Employees To Access Its HR Services And Information. Manager Self-Service (MSS) Portals Specialized ESS Portal Designed To Allow Managers To View Extensive Information About Their Subordinates And Perform Many Of Their Michael J.Administrative Kavanagh, Mohan Thite, and Richard Electronically. D. Johnson - Human Resource Tasks Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 15

COMMON SELF SERVICE APPLICATIONS Employee Self-Service Manager Self-Service Distribution Of Pay Advice; Administration Of Leave; Update Personal Details; Administer Training; Employee Surveys; Distribute Reports; Timesheet Entry Complete Job Requisitions; View Resumes Of Prospective Applicants; Performance Appraisals, View And Prepare Merit Increases, Viewing Subordinate Salary, Performance, And Training Histories Non-Employee Self-Service Job Postings And Applications Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 16

SAMPLE EMPLOYEE SELF-SERVICE (ESS) FUNCTIONALITY Table 10.1 Benefits Services Personal Data Development Review company communications Research and view plan rules and requirements Update emergency contact, address, telephone information Enroll in training courses Access company policies or procedures Enroll in cafeteria-style programs (medical, dental, insurance) Correct errors in personal data (degree, graduation date) View completed training Access HR policy manuals and e-mail inquiry/help request Add and/or delete dependents Change W-4 withholding forms Access e-learning internal/external courses Complete employee surveys or 360o feedback data Model retirement and/or access 401K savings investment records View previous/current pay and performance information View/apply for internal job vacancies View/respond to personal information requests from HR Model health plan alternatives’ costs (e.g., HMO, PPO) Enter time reports, vacation/sick days, and travel expense reports Complete employment tests for new jobs Communications Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 17

EVALUATION OF SELF SERVICE PORTALS Advantages Improved Speed & Quality Of Service Reduced Enquiry Transactions & Dependency On HR Which Reduce Costs Disadvantages Security Breaches & Identity Theft Data Privacy Admin Staff Pushing Admin Work To Others Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 18

SHARED SERVICE CENTERS (SSCs) Shared Services A Collaborative Strategy where Staff Functions Are Concentrated In A Semi-autonomous Organization And Managed Like A Business Unit To Promote Greater Efficiency, Value Generation And Improved Service For Internal Customers. (Goh et al. 2007, p. 252) Flexibility Over Control Services Covered: Finance, HR, IT, Purchasing, Real Estate Mgt., Legal, General Admin, Talent Mgt., Fleet Mgt. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 19

SHARED SERVICE CENTERS To Demonstrate Its Value To The Organization, SSCs Should Establish Measures/ Metrics That Demonstrate: Customer Satisfaction Levels Productivity Cost Controls Quality Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 20

FUNCTIONS IN SHARED SERVICES Figure 10.3 SOURCE: Powell (2004). Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 21

SHARED HR SERVICES Internal HR Dept. As A Strategic Business Unit (SBU) Competes With Outside Providers For Providing These Services To Other Internal Departments Costs Quality Value Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 22

EVALUATION OF SHARED SERVICES Advantages: Focus On Delivering Timely, High Quality Transactions; Focus On Customer Satisfaction; Encourage Efficiency And Standardization; Facilitate Development Of Measures Of Efficiency, Quality, And Customer Responsiveness Disadvantages: Costs Overriding Long Term Quality; Lack Of Synergy; Power Shifts Between Depts; Depersonalization (Technology Replacing Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 People Touch) SAGE Publications, Inc. 23

OUTSOURCING AND HRIS Practice Of Contracting With Vendors To Perform HR Services And Activities Focus On Core Competencies – Core & Non-core Functions/ Processes Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 24

HR PROCESSES OUTSOURCED Figure 10.4. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. SOURCE: EquaTerra (2007, p. 4). 25

TYPES OF HR OUTSOURCING Discrete/ Selective Outsourcing Multi-process/ Blended Outsourcing Outsourcing Only Particular Function (Eg., Recruitment) Or Part Of A Function (Eg., Executive Recruitment) Outsourcing All Of One Or More Related HR Functions (E.G., Recruitment And Selection; Defined And 401K Retirement Plan Administration) Total Outsourcing Having All, Or Nearly All, HR Functions Handled By One Or More External Vendors Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 26

SELECTIVE VERSUS COMPREHENSIVE OUTSOURCING Figure 10.5 Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. SOURCE: EquaTerra (2007, p. 4). 27

EVALUATION OF OUTSOURCING Disadvantages Advantages Cost Savings Performance Improvements Loss Of Control Strategic Benefits Realized By Very Few Loss Of Knowledge or Internal Expertise Loss Of Jobs – Insecurity Managing Costs Costs Of Mismanagement Flexibility Focus On Core Activities Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 28

OUTSOURCING Backsourcing Bringing HR functionality back “in-house” after originally outsourcing Offshoring HR Outsourcing with Vendors Outside The Country Enabled By Broadband & Internet Technologies Primarily Utilized To Reduce Costs And Increase Profits Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 29

MOTIVATIONS FOR OFFSHORING Figure 10.6. SOURCE: Hatch (2004, p. 14). Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 30

TYPES OF HR OFFSHORING Offshore Ownership Opening A Subsidiary Joint Venture Purchasing An Existing Offshore Outsourcing Traditional Contractual Relationship With An Existing Firm Firm. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 31

OFFSHORING HR Managers Reported That Most Common Offshoring Includes: Manufacturing (43%) IT (29%) Computer Programming (22%), Customer Call Centers (29%), HR Functions (16%). Esen, 2004 Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 32

CONSIDERING OFFSHORE OWNERSHIP? Higher Risk Associated With Offshore Ownership Important to Consider Availability Of Employee Knowledge, Skills, And Abilities Information And Communication Systems Compatibility With HRIS Government Regulations And Legal Employment Regulations Political Stability Of The Country And Employee Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Security Information Systems: Basics, Applications, and Future Directions, 2e 2012 Cultural SAGE Publications, Inc. Differences 33

LEGAL COMPLIANCE U.S. Employment Laws Underpin The General Principles Used In The Practice Of HRM. Compliance With Local, National, International Labor Laws EEO, AA, Employment Awards/ Agreements, Health & Safety HRIS Assists In: Increasing Efficiency, Quality, And Cost Reduction In Fulfilling Reporting Requirements Accurate, Timely Recordkeeping And Reporting Better Tools: Self Reporting; Electronic Report Submission Enhancing Data Privacy & Security: ‘Need To Know’ Basis Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 34

HR ADMINISTRATION AND EQUAL EMPLOYMENT OPPORTUNITY U.S. Civil Rights Act Of 1964, Title VII Additional Requirements for Federal Contractors (with over 50K in business) Provides EEO Requirements Affirmative Action Plan (AAP) Age Discrimination In Employment Act (ADEA) Americans With Disabilities Act (ADA Equal Employment Opportunity Commission (EEOC) Gathering Data Investigating Alleged Violations Bringing Legal Charges Against Employers Who Fail Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 To Comply SAGE Publications, Inc. 35

EEO/AFFIRMATIVE ACTION PLAN (AAP) ADMINISTRATIVE FUNCTIONS Figure 10.7 EEO recordkeeping and reports AA planning and program monitoring Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. EEO/AAP legal support 36

EEO-1 REPORT Employers With 15 Or More Employees Must Keep Records Regarding Compliance With (Standard Form 100) Law Based Category (Professional, Technical, Managerial, Craft) Sex Race/Ethnicity Revised Reporting Instructions Include Designated Racial/Ethnic Categories Columns For Reporting Individuals Who Specify More Than One Race/Ethnicity Employees “Self-identify” Rather Than Relying On The Employer’s Visual Categorization (EEOC, 2006) Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 37

EEO-1 CHANGES AND HRIS Recent Changes to EEO-1 Reporting may cause organizations to need to update their systems Track Race Separately From Ethnicity Separate Codes For Asian And Native Hawaiian Or Other Pacific Islander Modify Limitations On Reporting to Allow Reporting of More than One Race Insure Queries Can Identify All Individuals In A Particular Category (E.G., American Indian), Even When Individuals Self-identify As Two Or More Race Categories Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 38

EEO-1 REPORT Figure 10.8 SOURCE: U.S. EEOC (2006). Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 39

OCCUPATIONAL SAFETY AND HEALTH ACT (OSHA) RECORD KEEPING Developed To Establish That Employers Must Provide A Workplace Free Of Known Hazards Likely To Cause Death Or Serious Injury Requirements For Businesses With 11 Or More Employees, OSHA Compliance Officers Are Required To Arrive Unannounced For An OSHA Inspection Required To Notify OSHA Within 8 Hours Of Any Accident Involving Fatality Or In-patient Hospitalization Of Three Or More Covered Employees Complete An Annual OSHA Form 300 Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 40

OCCUPATIONAL HEALTH AND SAFETY ADMINISTRATIVE FUNCTIONS Figure 10.9. Accident reporting and recordkeeping Safety and Health training records Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. Workers’ Compensation Claims 41

SOURCE: U.S. Department of Labor (2004). OSHA Form 300 Figure 10.10 Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 42

IMPROVED GOVERNMENTAL REPORTING WITH TECHNOLOGY HRIS Records Can Be Established at time of Employee Application Simple Queries Can Secure Required Employee Data Required Reporting Information Can Be Sent Quickly Reduced Disruption of Operations HR Employees Can Handle The Complete Reporting Function Changes In Mandated Reporting Requirements can be Handled Mechanically By HR Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. Electronic Reporting Ensures Timely Receipt Of43

PRIVACY AND SECURITY IN HRIS The Underlying Principle For Database Security And Individual Privacy Is The ‘Need To Know’ Rule. Privacy Act 1974 Fair Credit Reporting Act 1970 Family Education Rights and Privacy Act 1974 Electronic Communications Privacy Act 1986 Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 44

HRM AND THE BALANCED SCORECARD Balanced Scorecard Both a Management And Measurement System “Enables Organizations To Clarify Their Vision And Strategy And Translate Them Into Action, . . . [Providing] Feedback Around Both The Internal Business Processes And External Outcomes To Continuously Improve Strategic Performance And Results” (Arveson, 1998). Measures Reflect The Value-added Nature Of HRM In Leveraging Human Capital and are Linked To The Strategic Goals Reflected In A Firm’s Balanced Scorecard. Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 45

Figure 10.11. Balanced Scorecard Components Figure 9.11. Balanced Scorecard Components SOURCE: Arveson (1998). Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 46

SAMPLE HR-BALANCED SCORECARD LINKAGE Figure 10.12 FINANCIAL: Return on Assets (Human Capital) CUSTOMER On-time delivery Customer satisfaction INTERNAL PROCESSES: Improved productivity LEARNING & GROWTH: HR Training to develop new employee skills Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 47

ALIGNING THE HR SCORECARD & ORGANIZATION BALANCED SCORECARD 1. 2. 3. 4. 5. 6. Specify The Business Strategy To Be Supported (E.G., Customer Retention) Identify Leading (E.G., On-time Order Delivery) And Lagging (E.G., Customer Satisfaction Levels) Indicators Identify Associated Internal Processes (E.G., Worker Productivity, Product Quality) Identify HR Linkages (E.G., Training, Rewards) Specify The HR Strategy (E.G., Offer Enhanced Productivity Training For Workers To Reduce Product Time-to-market And Insure On-time Order Delivery) Measure: Worker Productivity Increase, On-time Deliveries, Customer Complaints To Demonstrate The Strategic Value Of HR Training in the “Learning” And “Growth” Balanced Scorecard Categories Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 48

SAMPLE HR SCORECARD MEASURES LINKED TO FIRM BALANCED SCORECARD Figure 10.13 HR Functions To Support Learning & Growth Category (E.G., Employee Development) HR Internal Efficiency Measures To Support Financial Category Backup Talent Ratio—value Creation Competency Development Expense Per Employee—cost Control No. Of “Special Projects” For Employee Development—value Creation No. Of Employees With Development Plans—cost Control HR Departmental Expense/ Of Sales Revenue—cost Control HR Sales Training Expense/ Of Sales Revenue—value Creation HR Recruitment Expense/R&D Hires— cost Control No. Of Patents Per R&D Hires—value Creation Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e 2012 SAGE Publications, Inc. 49