JUSTIFICATION OF AN HRIS - DOC by xiw67167

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									                                     JUSTIFICATION OF AN HRIS


       Purpose of cost justification of an HRIS is to help put individual capital requirements into a larger
        business perspective
       Cost justification provides a measuring stick to determine if a particular investment is worth the expense
        to the organization
       Payroll applications are usually cost justified by comparing cost to either using a service bureau (eg.
        bank) or a manual payroll system
       The underlying assumption is that payroll-processing requirements exist, therefore what is the best
        automation alternative
       Unlike payroll, HRIS is not essential to day-to-day operations
       Lacking the tangible cost benefit model used for payroll two techniques are used to justify an HRIS

Cost Avoidance: elimination of future spending

       Avoid or minimize costs associated with recruiting-succession planning/applicant tracking
       Legislative compliance- failure to comply (fines, contract losses)
       Reduction of benefit administration fees
       Avoid/postpone staff increases, overtime and temporary employee costs
       Eliminate duplication of work (staff lists, organizational charts)-central source
       Reduction in turnover/training costs-increased morale of staff
       Improve the performance of a measured activity and reduce time and cost required to complete an
        activity

Value Added: qualifies rather than quantifies the benefits gained from the HRIS

       Faster access to information not available before and more meaningful information
       Increasing requests from senior management for information
       Reduction of Human Resources administrative workload
       Better tools equate to better productivity
       Perform "What If” modeling- forecasting ability
       Better employee communications
       Better decision-making
       Competitive advantage
       Ad hoc reporting

The most important thing to consider when developing your cost justification is to relate the justification to the
business strategy or mission. "A proposal that is founded on the needs of the business will have a better chance of
being funded than one that simply focuses on technical requirements. This is also one of the first places to begin
gathering critical management support Demonstrating an understanding of the business needs and how the HR
function fits into the larger picture of the organization will help gain support and, most important, will lead to a
system that provides maximum pay offs to the company."




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CORE POINTS TO STRESS

        Identify the key role of the HR function and what will be required in the future
        List the reasons to automate
        Discuss success stories of other organizations (competitors)
        Identify the tools- either manual or computerized, currently available
        Describe the future resources needed to perform HR functions (eg. EE/PE)
        Outline a 3 to 5 year project plan
        Discuss requirements for connectivity to other hardware systems in the company (eg. payroll,
         accounting)
        Discuss single versus multi-user requirements

BUILDING YOUR BUSINESS CASE

        Discuss and demonstrate how HRIS integrates into the corporate plan
        Quantify benefits including intangibles- remember senior management is distant from HRIS functions
        Do not focus on record keeping or administration, look at human asset management and bottom-line
         contributions
        Discuss the impact of an HRIS on corporate culture- in particular line management
        Isolate where the company has been hurt and demonstrate solutions
        Identify fallback position for potential failure
        Feature the big picture and down play details
        Do not talk techie
        Do not forget your presentation skill basics

TYPES OF HRISs

1.       EDP LEVEL- ELECTRONIC DATA PROCESSING

        Automation of routine information
        Focus on data, storage, processing and flows at the operational level
        Often a mainframe system managed by MIS
        Most common - payroll and basic personnel information

2.       MIS LEVEL- MANAGEMENT INFORMATION SYSTEM

        Emphasis on integration and planning of the information system
        Defined as having and information focus aimed at middle managers
        Most common- EE/PE, time and attendance, turnover

3.       DSS LEVEL - DECISION SUPPORT SYSTEMS

        Focus on decisions made at the higher level by senior management and executives
        Interactive system capable of analysis and able to forecast (what if)
        Most common - succession planning

A proper HRIS should be a summary of all 3 types of HRIS




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HRIS FUNCTIONS:
RECORD KEEPING (EDP)

       An employee data base to support payroll processing and administrative HR reporting requirements
       Enrolment data for benefit programs
       The record keeping requirements are the most fundamental requirements satisfied by an HRIS.

MANAGEMENT INFORMATION (MIS)

       Move from record keeping to focus on HR management (eg. wage administration, job descriptions,
        career planning, etc)

MANAGEMENT CONTROLS (MIS)

       Financial, organization and incentive systems
       HRIS used to define and monitor organizational controls and support the incentive systems

DECISION SUPPORT TOOLS                 (DSS)

       Compile, analyze, quantify differences in alternatives and present the information in a manner which
        facilitates decision making

HRIS MODULES

MODULE:

       Is directed to one specific function of HR
       Has its own input forms or screens
       Uses some internal transformations to the data
       Has some reports or analyses that are particular to that user group or function
       May have some data elements that are unique to that user or function

BASIC EMPLOYEE INFORMATION MODULE

       Basic employee information (eg. ID number, name, SIN, address)
       It is the core of the system and often the first module developed as the information in this module is used
        in other modules
       When the user creates a new employee the system often moves the user to the next            related
        screen - SCREEN LINKING

BENEFIT MODULE
PENSION ADMINISTRATION MODULE
APPLICANT TRACKING MODULE
SUCCESSION PLANNING MODULE
TRAINING MODULE
PAY EQUITY/EMPLOYMENT EQUITY MODULE
PAYROLL MODULE

Integrated system is when the module or system that is being linked is part of the same system (HRIS) versus
and Interfaced system when the module or system that is being linked is part of another system. (eg. In-house
payroll linked to HRIS -interfaced or Payroll and HRIS are the same software system - Integrated)

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The three most prevalently computerized HR functions are Payroll, Basic Employee Information and
Employment Equity/Pay Equity (most administrative areas)

THE FUTURE HR DEPARTMENT

The HRIS could transform the Human Resource function:

FROM                                                              TO
Reactive                                                          Proactive
Assistant To                                                      Strategic Partner
Administration                                                    Policy Maker
Autocratic                                                        Participative




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