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MANAGEMENT INFORMATION SYSTEMS 7/E

Raymond McLeod, Jr.

Chapter 21
Human Resource
Information Systems

Copyright 1998 Prentice-Hall, Inc.


The HR manager is often a
director who is not a member of
the executive committee.

The importance of the human resource


function and the human
resources information system has
grown over the last ten years
Primary HR Activities
Hiring Education Terminat- Benefit
Recruiting Administration
& Training ion

The Firm

Potential
Employees Employees Retired
Employees

Data Management
The HRIS

■ The name HRMS (Human Resource


Management System) is catching on in
industry.
1990/91 HRSP Survey
(513 firms)

■ Mostly large companies


■ 2,000 organizations represented in the U.S.,
Canada, and other countries
■ More than one third of the respondents were
multinational
The HRIS Unit

■ Usually a part of HR (73.5%).


■ Can be in IS (8.4%)
■ Size ranges from 0 to 260 employees
■ Usually not subdivided (65.9%)
The Evolution of the HRIS

■ First, paper files were located in the Personnel


department.
■ Then, punched card and magnetic media files were
located in IS.
■ Government legislation in the 1960s and 70s
eventually called management's attention to the
importance of HR data.
■ In the late 1970's the concept of an HRIS was born.
An HRIS Model

■ The problem is the packaging of so many


different applications
Output
HRIS Model subsystems
Input Work force Data Information
subsystems planning
subsystem
Accounting
information
Recruiting
system
subsystem
Internal
sources
Human Work force
resources management Users
research HRIS subsystem
system Database
Environmental Compensation
sources
Subsystem
Manufacturing
intelligence Benefits
subsystem subsystem

Environmental
reporting
subsystem
Accounting Information
Subsystem

Two main types of data


1. Personnel -- name, birth date, sex, marital
status, education, skills, etc.
2.Accounting -- hourly rate or monthly salary,
taxes, insurance deductions, etc.
Human Resources Research
Subsystem
■ Examples:
- Job analyses and evaluations
- Succession studies
- Grievance studies
■ This research can generate new data for the
database (job analyses)
■ And it can use existing database contents
(succession studies)
Human Resources Intelligence Subsystem
HR has the responsibility for interfacing with the most
environmental elements of any functional area.
■ Government -- stay current on legislation. File reports.
■ Suppliers -- employment services
■ Labor unions, local community, competitors -- sources of
employees
■ Global community intelligence
■ Financial community -- employee planning
■ Competitor intelligence
Environmental Human Resources
Databases
■ Executive search firm databases
■ University databases
■ Employment agency databases
■ Public access databases
■ Corporate job banks
The HRIS Database

Type of data:

1. Employee
82.5% of the firms maintain only employee data
2. Nonemployee
8% of the firms
mainly organizations external to the firm
Possible HRIS Database
Locations

400 342
300
200 174
100 52 32
0
Firm's HR Operating Outside
central computer division service
computer computer center
Database Location

■ Operating division -- decentralized


■ Outside service center -- outsourcer
■ Central computer is still the most popular
location
■ HR computer in only 34% of the firms
● Some firms keep database in multiple
locations
Users of the HRIS Database

Non HR HR Other HR
Executives Managers Director Managers
(2.78) (3.09) (3.79) (4.33)

01 21 3 43 45
Not at all Occasionally Monthly Weekly Daily
Basic Forms of HRIS Output

94.5
Percentage 84.4
of firms
reporting
output types

34.7

8.7

Periodic Database Mathematical Expert


Reports Queries Models Systems
Software

■ Custom software is usually developed


jointly by HR and IS
■ Some software is integrated into a core
HRIS
■ Some is standalone
Work Force Planning Subsystem

Enable manager to identify future personnel


needs
■ Organization charting
■ Salary forecasting
■ Job analysis/evaluation
■ Planning
■ Work force modeling
Number of Firms Using
Work Force Planning Applications
In Being
Application name use developed

_____________________________________________
Organization charting 238 58
Salary forecasting 237 47
Job analysis/evaluation 176 66
Planning 68 61
Work force modeling 66 29
_____________________________________________
Totals 785 261
Percent applications in use: 75
Recruiting Subsystem

■ Applicant tracking

■ Internal search
Number of Firms Using
Recruiting Applications
In Being
Application name use developed
____________________________________________
Applicant tracking 235 98
Internal search 111 56
____________________________________________
Totals 346 154

Percent applications in use: 69


Work Force Management
Subsystem

■ Performance appraisal
■ Training
■ Position control -- ensuring that headcount does
not exceed budgeted limits.
■ Relocation
■ Skills/competency
■ Succession
■ Disciplinary
Number of Firms Using Work
Force Management Applications
In Being
Application name use developed
_____________________________________________
Performance appraisal 244 60
Training 216 102
Position control 177 108
Relocation 121 33
Skills/competency 115 107
Succession 110 102
Disciplinary 63 39
_____________________________________________
Totals 1046 551

Percent applications in use: 65


Compensation Subsystem

Most systems in use

■ Merit increases
■ Payroll
■ Executive compensation
■ Bonus incentives
■ Attendance
Number of Firms Using
Compensation Applications
In Being
Application name use developed
___________________________________________
Merit increases 404 36
Payroll 389 21
Executive compensation 273 39
Bonus incentives 230 31
Attendance 191 69
_____________________________________________
Totals 1,487 196

Percent applications in use: 88


Benefits Subsystem

■ Defined contribution
■ Defined benefits
■ Benefit statements
■ Flexible benefits
■ Stock purchase
■ Claims processing
Number of Firms Using
Benefits Applications
In Being
Application name use developed
_____________________________________________
Defined contribution 275 38
Defined benefits 270 47
Benefit statements 234 57
Flexible benefits 195 55
Stock purchase 149 16
Claims processing 88 11
_____________________________________________
Totals 1211 224

Percent applications in use: 84


Environmental Reporting
Subsystem
Reporting firm’s personnel policies and
practices to the government
■ EEO records
■ EEO analysis
■ Union increases
■ Health records
■ Toxic substance
■ Grievances
Number of Firms Using
Environmental Reporting Applications
In Being
Application name use developed
_____________________________________________
EEO records 402 43
EEO analysis 352 47
Union increases 165 13
Health records 102 41
Toxic substance 80 32
Grievances 66 31
_____________________________________________
Totals 1,167 207

Percent applications in use: 85


Executive Perception of
HRIS Value

242

185

31 25
9 4
Top mgmt HRIS HRIS is HRIS is HRIS is HRIS is
is unaware has little valued less valued on a valued the most
of HRIS value than other par with higher than highly valued
systems other other
Users of HRIS

Compensation

Environmental
Management
Work Force

Reporting
Planning
Work Force

Recruiting

Benefits
HR director X X X X X X
Other executives X X X X X X
Compensation/benefits manager X X
HR planning manager X
Employee/labor relations manager X X
EEO/AAP manager X X X X X X
Recruiting & selection dvlpmnt mgr X X
Training manager X
Manager of accounting X X
Payroll manager X X
Other managers X X X X X X

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