Chapter 1

Evolution of Human Resource

Management and Human Resource
Information Systems: The Role of
Information Technology
 NEED FOR HRIS:
THE EXTERNAL ENVIRONMENT

 Government Regulations
 EEO -1 Report

 Employee Composition

 Increased Records and Reports

 Court Decisions

 New Laws

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 EXTERNAL ENVIRONMENT
 Technology
 Lans, Portals
 Labor Market
 Human Resources Planning
 External Environmental Scanning
 Societal Concerns
 Employee Information Requests
 Privacy Issues
 Pollution
 Community Awareness
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 EXTERNAL ENVIRONMENT
 Competition
 Compensation Management
 Labor Market Surveys
 Compensation Planning

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 HISTORICAL ERAS IN HRIS
 Pre-world War II

 Reactive, Caretaker Activity

 Record Keeping Manual
 Not Major Part Of Business

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 POSTWAR: 1945-1960

 Importance Of Employee Morale

 HR Part Of Operating Costs, Not In
Mainstream
 Payroll Automation
 R & D In Selection
 Mainframe Usage By Defense Industry In HR

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 SOCIAL ISSUES PERIOD: 1963-1980
 Social Issues Legislation Impact HR
 Protector Of Employees
 Intro Of IBM 360
 Advent Of MIS
 Paperwork & Reporting Increases
 HR Now More In Mainstream Of
Operating Budget

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 COST-EFFECTIVENESS: 1980-1990
 HR Cost Justify Activities
 Increased Role Due To Paperwork Required
In Legislation
 Microcomputers & Software Advances
 HRIS Capabilities Lower In Cost
 Increased Emphasis On R&D
 Utility Analysis Critical

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 TECHNOLOGY ADVANCEMENT ERA
(90S-TODAY)
 HRIS Commonplace- High Technology
(Internet)
 Microcomputer Capacity Increases
 HR Main Part Of Strategy Planning - Strategic
Partner
 Globalization Of Companies
 Hardware-software Tools In Decision-making

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 THE EVOLUTION OF STRATEGIC HRM
 Contingency Perspective And Fit
 Resource - Based View Of The Firm And Social Capital,
 HR System Components And Structure
 Expanding The Scope Of HRM Beyond The Focal Organization
 Achieving HR Implementation And Execution, By Translating
The Rhetoric Into Practice,
 Measuring The Outcomes Of SHRM By (E.G., Balanced
Scorecard Approach)
 Research Methodological Issues That Stress The Importance Of
Evidence Based Management
 Adoption And Use Of HR Metrics
 Application Of “Six Sigma" Processes To HRM.

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 COMPETITIVE ADVANTAGE
 Three Categories Of Resources:

 Physical

 Organizational

 Human Most Critical

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 ACTIVITIES OF HR

Transformational

Wright, McMahan, Snell, & Gerhart, 1998 Traditional

Transactional

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 HR ACTIVITIES & TIME SPENT
 Transactional (65-75%)
 Benefits Administration, Record Keeping,
Employee Services
 Traditional (15-30%)
 Recruitment, Selection, Training, Performance
Management, Compensation, Employee Relations
 Transformational (5-15%)
 Knowledge Management, Strategic Redirection
And Renewal, Cultural Change, Management
Development
 Added Value Wright, McMahan, Snell, & Gerhart, 1998

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 INTERFACE BETWEEN HR AND
TECHNOLOGY
 IT As A Tool Not A Substitute For
People
 How Might The Changes In Technology
Impact The Role And Perceptions Of HR
Departments And Professionals?
 How Might Technology Aid In The
Advancement Of Strategic HRM?

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 HRIS
Human resources information system (HRIS) is a computerized
system that provides current and accurate data for purposes of
control and decision making.
 Benefits:
 Store And Retrieve Of Large Quantities Of Data.
 Combine And Reconfigure Data To Create New
Information.
 Institutionalization Of Organizational Knowledge.
 Easier Communications.
 Lower Administrative Costs, Increase Productivity And
Response Times.

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 HRIS DEFINITION

 Not Just Hardware-software

 Includes People, Forms, Policies, Procedures, And
Data
 Purpose – Provide Service
 Variety Of Users
 Strategic

 Tactical

 Operational Decisions

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 E-HRM & HRIS

 Electronic Human Resource Management (E-hrm)

 Information Technology (E.G., Web)central

Component
 Application And Hr-function Focused

 HRIS
 Technology And Processes (E.G., Databases,

Enterprise Resources Planning (ERP) Architecture,

Smart Phones, Etc.) That Support Employee
Access To HR Data And The Move To E-hrm.

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 BIGGEST ADVANTAGES OF HRIS
Reduced Manual Handling And Paperwork
Or
Enables Greater Impact Of Paperwork On Business
Operation
 Reports
 Analysis
 Negotiations
 Communications

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 INFORMATION SYSTEMS PROVIDING
SUPPORT FOR HRM (Table 1.1)
Organizational Type of System Major Goal and HRM Example
Level Focus
Operational Transaction Processing Improved transaction speed Payroll processing
System and accuracy Time and attendance entry
Improved efficiency in the
processing of daily business
transactions
Automation of routine
transactions
Reduced transaction costs
Managerial Management Information Provides key data to Producing EE03 reports
System managers Calculating yield ratios for
Supports regular and recruiting
ongoing decisions Calculating per-capita merit
Provides defined and ad- increases
hoc reporting
Executive Executive Information Provides aggregate, high- Succession planning
System level data Aggregate data on
Helps managers with long- balanced scorecard
range planning
Supports strategic direction
and decisions

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 INFORMATION SYSTEMS PROVIDING
SUPPORT FOR HRM (Table 1.1 Cont.)
Organizational Type of System Major Goal and Focus HRM Example
Level
Boundary Spanning Decision Support Interactive and iterative managerial Staffing needs assessment
System decision-making Labor market analysis
Supports forecasting and “what-if” Employee skills assessment
analysis
Supports business simulations
Expert System Embed human knowledge into Résumé keyword searches
information systems
Automate decisions with technology
Office Automation Designing documents E-mail training room
Systems Scheduling shared resources scheduling
Communication
Collaboration Supports electronic communication Communication support for e-
Technologies and collaboration between learning
employees Online meetings and shared
Supports virtual teams documents
HR departmental wikis
Enterprise Resources Integration and centralization of Orangery
Planning System corporate data Oracle/PeopleSoft
Share data across functional Lawson HRM
boundaries SAP
Single data source and common
technology architecture

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 SYSTEM DEVELOPMENT LIFE CYCLE
(SDLC)
 Five General Phases:
(1) Planning
(2) Analysis
(3) Design
(4) Implementation
(5) Maintenance
 Begins With Planning And Ends With

Continuous Evaluation
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 A MODEL OF ORGANIZATIONAL
FUNCTIONING

 Organic model
 HRIS is critical to the efficient operation of an
organization
 Interrelatedness between the strategic
management system, the strategic HRM
system, and the performance goals, business
and HR are generated during the strategic
planning process.

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 A MODEL OF ORGANIZATIONAL
FUNCTIONING
 The HR Goals Drive The HR Programs That
Provide Management The Tools For The
Efficient And Effective Use Of Employees
 The HRIS Has Become Increasingly Important
In Supporting The HR Management System
As Well As In Strategic Planning
 HR Metrics And Cost-benefit Results (Value
Added And Return On Investment - ROI),
Are In Continual Interaction
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 A MODEL OF ORGANIZATIONAL
FUNCTIONING
 National Culture Impacts Entire Model
Through Strong Effects On External
Environment
 External Environment Influences Internal
Functioning Of Organization
 Interaction Between Strategic Management
System And Strategic HRM Will Improve The
Functioning Of The Organization

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