e-HRM and HRIS

Presented By:-
Lavanya Mehrotra-2010111
Merwin James-2010119
Mohit Agarwal-2010120
Naman Bohare-2010125
Naman Garg-2010126
Navdeep Singh-2010128
Pratyush Singh-2010150
 WHAT IS HRIS??
• HRM is a process of bringing people and
organisation together so that the goals of each are
met.

• IS refers to a system of persons, data records and

activities that process the data and information in
an organization, and it includes the organization's
manual and automated processes.
HR INFORMATION SYSTEMS

Human Resources Information System (HRIS) –

A database system that contains all relevant HR
information and provides facilities for
maintaining
and accessing these data.

We are currently in the “third generation” of

HRIS.
 HRIS is “the system used to
acquire,
store,
manipulate ,
analyze,
retrieve and
distribute
information regarding an organization's Human
Resources.”
WHY DO WE NEED HRIS?

• Costly and Time consuming (Manual

transfer )
• Inconsistency , Duplicate Data Entry
• Fragmentation
• Difficult to analyze
WHY DO WE NEED HRIS?
• There are several advantages to firms in using HRIS. They
include the following:
• Providing a comprehensive information picture as a single,
comprehensive database; this enables organizations to provide
structural connectivity across units and activities and increase the
speed of information transactions .

• Increasing competitiveness by improving HR operations and

improving management processes

• Collecting appropriate data and converting them to information

and knowledge for improved timeliness and quality of decision
making
• Producing a greater number and variety of accurate and
real-time HR-related reports

• Streamlining and enhancing the efficiency and

effectiveness of HR administrative functions
•
• Shifting the focus of HR from the processing of
transactions to strategic HRM

• Reengineering HR processes and functions

• Improving employee satisfaction by delivering HR

services more quickly and accurately to them
BENEFITS OF HRIS
• HRIS can process, store and retrieve enormous
quantities of data in an economical way.

• Records can be updated quickly. (Multiple

places)

• Reduces fragmentation and duplication of data

• Information can be readily manipulated, merged

etc.
EARLIER...SEPARATE COMPUTER SYSTEMS:

PAYROLL
EMPLOYEE SKILL INVENTORIES
EQUAL EMPLOYMENT OPPORTUNITY FILE

BUT NOW…HRIS IS ALSO USED FOR:

TRACKING EMPLOYEE TRAINING AND

DEVELOPMENT ACTIVITIES
PERFORMANCE APPRAISAL
EMPLOYEE BENEFIT
ALMOST EVERY AREA OF HRM.
COMPONENTS OF HRIS

• A computerized data-base management system

• Screens for inputting data

• Programs for cross-checking data and transaction

accuracy.

• Modules for performing specific functions

• Query Programs
IMPORTANT USES OF A HRIS

•HR Planning and analysis

• Organization Charts.
• Staffing Needs.
•Turnover analysis.
• Absenteeism analysis.
• Job posting.
• Internal Job Matching.
• Job Analysis.
HRIS SOFTWARE SELECTION
1. Improve your HRIS software knowledge
2. Determine your Needs
3. Create a detailed HRIS software needs and
requirements spreadsheet.
4. How much can you spend?
5. Pick a handful of HRIS software systems to evaluate
6. Research the short list
7. Determine the implementation scope
8. Make the decision
9. Getting approval
The ability of firms to harness the potential of HRIS
depends on a variety of factors, such as

• The size of the organization, with large firms generally reaping

greater benefits;
• The amount of top management support and commitment;
• The availability of resources (time, money, and personnel);
• The 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.
 HRIS: THE WAY TO GAIN COMPETITIVE
ADVANTAGE

• PEOPLE, most valuable asset –

competitive advantage.
• HRIS – manages PEOPLE efficiently
and effectively.
• HRIS – gaining competitive
advantage.
DIFFERENT TYPES OF HRIS:-

• Electronic Data Processing (EDP)

• Management Information Systems

(MIS)

• Decision Support Systems (DSS)

 EDP
Its basic characteristics include:
• A focus on data, storage, processing, and
flows at the operational level
• Efficient transaction processing
• Scheduled and optimized computer runs
• Integrated files for related jobs
• Summary reports for management
 MIS
The characteristics of MIS include:
• An information focus, aimed at middle
managers
• Structured information flows
• Integration of EDP jobs by business
function (production MIS, marketing MIS
)
• Inquiry and report generation (usually
with a data base)
 DSS
• DSS are focused still higher in the organization,
with an emphasis on the following
characteristics:
• Decision focused, aimed at top managers and
executive decision makers
• Emphasis on flexibility, adaptability, and quick
response
• User initiated and controlled
• Support for the personal decision-making styles of
individual managers
 HRIS: KEY MESSAGE

“By automating Human Resource

practices, HRIS saves time and money,
effectively re-allocates work processes
and thus provides competitive
advantage and adds strategic value to
the organization.”
CASE STUDY ON HRIS
 HR SERVICE DELIVERY THROUGH INFORMATION SYSTEMS
HRIS IMPLEMENTATION AND USE AT IBM
 In order to plan for HR service delivery in an on-demand
world, the HR Information systems is critical in
providing the edge to managerial decision making. As
HR professionals we need to gear up to be able to
accommodate their requests for HR Intelligence. Most
professionals would argue that in today’s times all
organizations have HR systems, processes, workflows
and that Information technology is an integral part of
how HR is run. While that is largely true, as we progress
towards more evolved HR service, we need to constantly
look back on the return on investment not only in terms
of cost, but also in terms of long-term value to the
organization.
WHAT KIND OF SERVICE DELIVERY FROM HR IS BEING
LOOKED AT BY IBM TODAY?
 HR is expected to be everything to everybody
 Employee Information is not only for managing
employees but more importantly for tracking and
creating Business Intelligence around this key
resource in terms of costs, productivity and branding.
 HR auditing and metrics have become norms for
large organizations where standardization of
processes and systems is increasingly encouraged.
 THE HR INFORMATION SYSTEMS CONTINUUM OF MATURITY :
CHARACTERISTICS
(Source: IBM Business Consulting Services)
 The scope of activities, processes, workflows and tools used could be HRIS
Development and Maintenance, Workflow Management, Organizational & people
profiling, employee self-service, HR website management etc. The typical
characteristics of HR systems would be:
 Level 1: Innocence
• No HR management software applications used.
• Most personnel administration tasks are performed manually.
• No customization to local conditions of employment and legal requirements.
• No HR Website available or accessible to staff.
 Level 2: Awareness
• Limited use of systems to support HR functions.
• Attempts made to implement limited software applications to alleviate work pressures.
• Limited functional modules are applied on a trial and error basis with some level of
customization.
• Basic technology configuration and specific software applications available.
• HR Website is available and accessible.
 Level 3: Understanding
• Software applications are used in the main areas of personnel administration.
• Functional modules include the main areas of personnel administration, i.e. payment, employee record keeping &
benefits/pension administration.
• Application & customization accommodate basic requirement levels.
• Databases are not integrated & only rigid reporting is available.
• System design is fragmented with frequent technology restrictions.
• Limited consideration is given to access & security.
• User friendliness is restricted by rigid operating procedures.
 Level 4: Competence
• HR system integrated into business processes.
• Unified databases are based on business strategy.
• Extended reporting facilities available.
• Modules accommodate all cultural & legal requirements.
• System includes modules for main areas of personnel administration & HR Management.
• System is based on functional architecture with limited restrictions to technology configurations.
• Acceptable security levels with planned access to all levels of employees according to business requirements.
Level 5: Excellence
• Global HR best practices applied in a predictive system that formulates business strategies.
• Flexible reporting is available & integration with expert applications is allowed.
• System fully accommodates requirements for current applicable legislative and statutory rules
• HRMS systems would includes the following modules:
♦ Applicant tracking & Recruitment
♦ Workforce planning & Succession planning
♦ Position management & Performance management
♦ Employee relations Management
 THE RETURN ON INVESTMENT LOGIC
 The IBM top management sought cost case justifications for making people or technology
investment. HR professionals like their business counterparts need to be prepared to provide that
‘dollar value’ to their investment proposals. The typical investments needed from a cost perspective
would come from hardware and software - Servers, Network setup, Internet connectivity
architecture, product licenses and software installation costs.

Some of the justifications that HR professionals could use to showcase dollar savings:
 • Expected savings in Process cost and Information dissemination Cost (e.g. time taken to
complete a simple address change in employee self service portal versus a manual process). This is
a simple calculation of labor cost versus time, which is significantly reduced when looking at
automation of HR processes and systems.

 • Expected Savings in Paper cost reduction – elimination of paper based forms and formats.

 • Manpower Productivity Savings – Employees and managers would save time and effort when
getting quicker access to information and other decision making tools either through core HRMS
systems or through employee portals

 • Manpower reduction savings: Automating critical process flows would also eliminate the need
of too many transactional ‘hands’ needed for processing
 CRITICAL SUCCESS FACTORS FOR HRIS IMPLEMENTATION: THE DOUBLE
EDGED SWORDS
 Like all projects, an HR technology intervention requires dedicated top management support,
aggressive middle management execution and strong lowest level communications. But more
importantly HR professional seeking to make the technology interventions a success need to focus
on these critical success factors:
 Trained manpower - The people who man the systems are critical. They need to be trained well
in systems and the HR conceptual aspects from policy and process interpretation perspective.
Systems do not run themselves – it’s the drivers of the systems that need to be well trained to
leverage the complete advantage of a highly networked HR organization.

 Discipline of Data entry: Standardization in terms of recording information is critical. It is

therefore important that managers and Business starts using common nomenclature, codes and input
mechanisms. Education of all stakeholders is important so that information is interpreted uniformly
by all. There have been consistent failures of very well designed systems and processes when data
recording discipline has not been enforced with equal vigor.

 Process & Policy Discipline: Systems designed on codes will not support adhoc decision
making. One of the pitfalls of a system designed process flow is that users tend to find it too rigid
and stop using the workflow. It defeats the purpose of the design and lends to loss of credibility in
the system.

 Flexibility of system designs– for scalability to enhance increased transactional load, upgrades
in technology, allowing for incremental changes related to policy and process changes and transition
to future systems.
BUT……………………………………
The effectiveness of HR systems,
however well designed depends largely
on the overall managerial belief and
commitment in its value proposition.
And ultimately it is still about
implementation.
e-HRM
INTRODUCTION
 The process and transmission of digitalized HR
information is called Electronic Human Resource
Management.
 Information Technology is changing the way HR
department is handle record keeping and
information sharing.
 Employees can gain information through Self-
Service.
EARLIER
NOW
WHAT IS DEMANDED FROM HRM???
 Strategy Focused

 Flexible

 Efficient

 Client Oriented
GOALS OF E-HRM
 Improving the strategic orientation of HRM.

 Cost reduction/efficiency gains.

 Client service improvement/facilitating

management and employees.
TYPES--
 Operational
Payroll, Employee Personal Data, etc
 Relational
Training, Recruitment, Performance
Management, etc
 Transformational
Knowledge Management, Strategic Re-
orientation, etc
 Clan
Clan
approach
approach
E-HRM MODEL
Market
Market
approach
approach Initial
Initial HRM
HRM
Cost strategy
Cost
effectiveness
strategy and
and Improving
Improving HR’s
HR’s strategic
strategic role
role
effectiveness Bureaucratic
Bureaucratic policy
approach
approach
policy
Congruence
Congruence Improving
Improving client-service
client-service
Internal agents:
Competence
Competence Top & line
Improving
Improving efficiency/administrative
efficiency/administrative
e-HRM
e-HRM management, e-HRM
e-HRM processes
processes
outcomes
outcomes Employees, goals
goals
Commitment
Commitment workers
council.

Environment
Environment
Operational
Operational
e-HRM
e-HRM type
type •• competition
competition
•• technological
technological development
development
Relational
Relational •• labour
labour market
market
•• societal
societal developments
developments
Transformational
•• governmental
governmental regulation
regulation
Transformational
BENEFITS
HR
Business Employees
Division
Multiple
Multiple Improved
Improved HR
HR
physical
physical Reduce
Reduce Cost
Cost Services
Services
presence
presence

Quick
Quick and
and
Focus
Focus on
on Immediate
Immediate
Quickly
Quickly React
React Strategic
Strategic Issue
Issue access
access to
to
information
information

HR
HR Services
Services
Information
Information is
is Increase
Increase more
more effective
effective
easily
easily collected
collected Efficiency
Efficiency and efficient
and efficient
CASE STUDY ON E-HRM
E-HRM CASE IMPLEMENTATION
 Seattle Mariners is a member of the American
Major League Baseball. The Seattle Mariners
played their first game against the California
Angels in 1977. SAFECO Field has been home to
the Mariners since 1999.
 The Mariners’ payroll department had been using
an outsourced payroll solution for several years.
The third-party vendor did everything regarding
payroll except print the paychecks.
ISSUE AT SEATTLE MARINERS
 One of the major disadvantages of the outsourced
solution was that the payroll department had to
have its payroll submitted to the vendor company
at least four days prior to pay day. Because the
team often has last-minute personnel moves and
player changes, they were frequently voiding and
reissuing checks.
ISSUES @ SEATTLE MARINERS (CONTD.)
 “Our payroll process is complicated, so there were
many things we had to consider. For example, we have
to pay state taxes to each city where we play games.”

 In addition to the complex state tax regulations, the

Mariners’ employee count increases by more than
600% during the in-season months, from
approximately 300 employees during the off-season,
to nearly 1,800 employees throughout baseball season.
THE SOLUTION
 The payroll department found Abra Payroll from Sage Software,
the industry-leading solution for in-house payroll management,
to be the best choice. The team also implemented Abra HR, a
powerful tool to manage critical employee information, and the
second module making up Sage Abra HRMS.
 Abra HR helped make the lives of the employees of Seattle
Mariners, much easier,” explained Ginger Oldham, payroll
manager for the Mariners. It allowed to keep track of paid-
timeoff amounts, benefits, upto $401,000 in deductions and
more with the system.” Abra HR also helps the Mariners track
and prepare reports to ensure government compliance.
THE BENEFITS
 Benefited from more efficient and cost- effective
payroll solution.
 Expanded ability to manage complicated payroll
process and critical HR functions.
 The Payroll Department also gained control of
their own processes. It literally helped them gain
dollars to spend on other things, and not having to
depend on a third-party vendor - both of these are
win-win situations.
THE BENEFITS IN DETAIL
 Using Abra Payroll, Oldham and her team can create special
payroll runs, evaluate data, reconcile payrolls and quarter-ends
with online analysis, generate cost accounting and labour
distribution reports, secure sensitive payroll information, and
prepare payroll taxes—things they couldn’t do as easily with
their outsourced payroll solution. In addition, it costs less. “Abra
Payroll definitely saves us a lot of money on payroll processing,”
says Oldham. “It also helps us keep everything straight, from
minor league trades, to all the tax liabilities that go with being a
professional sports team. We save time by not having to void and
reissue checks. I can’t imagine being without Sage Abra HRMS.”
DHANYAWAAD
KOI SAWAAL??