Human Resources Management in
Canada
Fifteenth Canadian Edition
Chapter 3
Human Resources Management
and Technology
Copyright © 2023 Pearson Canada Inc.
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Learning Objectives
3.1 Explain trends in the nature of work and the relationship
these have with technology or automation.
3.2 Describe the impact that HR technology has on the role
of the HR professional and the resulting three major
changes to the role of HR.
3.3 Explain the key functions of an HR systems and their
strategic importance.
3.4 Describe the three-step process involved in selecting
and implementing an HR information system and the
benefits of online service applications.
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Where Are We Now …
Ellipsis
The purpose of this chapter is to provide you with the role
and impact of technology on HR.
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Trends in the Nature of Work (1 of 9)
Automation
• Reduces need for manual labour.
• Goal is to improve productivity, reduce costs, and manage
labour shortages.
• Results in job transformation.
• Automation varies per industry.
• Boom in service-based economy.
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Trends in the Nature of Work (2 of 9)
Automation
• Manufacturing moving to low-wage countries.
• Higher productivity from automation leads to producing
more with fewer employees.
• Just-in-time manufacturing links to immediate consumer
needs.
• Increase in Internet-based ordering reduces inventory
needs.
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Trends in the Nature of Work (3 of 9)
ICT (Information and Communication Technology)
• Computer and internet use is present in almost all sectors
of the Canadian economy.
• Transforming businesses:
– Positive impact on productivity.
– Increase workers’ flexibility and integration.
– Decrease in centralization.
– Provide up-to-date information for decisions making.
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Trends in the Nature of Work (4 of 9)
ICT (Information and Communication Technology)
• Negative aspects of ICT:
– Lack of interaction with coworkers.
– Caring for children/family.
– Need to do additional work.
– Technology access issues.
– Inadequate physical workspace
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Trends in the Nature of Work (5 of 9)
ICT (Information and Communication Technology)
• Negative aspects of ICT (continued):
– Interruptions reduce productivity.
– Waste of time on Internet.
– Lack of incentives and job dissatisfaction.
– Increased job stress.
– Complications working remotely
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Trends in the Nature of Work (6 of 9)
Knowledge Work and Human Capital
• Jobs now require more education and more skills
development prior to employment.
• This means more reliance on knowledge workers / human
capital.
• Human capital is the knowledge, education, training,
skills, and expertise of an organization’s workforce
– Most important skills:
▪ Critical thinking and problem solving.
▪ Information technology applications.
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Trends in the Nature of Work (7 of 9)
Collecting and Organizing HR Information
• HR managers collect data on matters such an turnover an
safety via human resources audits.
• HR audit is an analysis by which an organization
measures where it currently stands and determines what it
has to accomplish to improve its HR functions.
• Review HR functions and ensure the firm is adhering to
regulations, laws, and company policies.
• Benchmark their results to those of comparable
companies.
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Trends in the Nature of Work (8 of 9)
Collecting and Organizing HR Information
• Typical areas for audit:
– Job descriptions, recruitment, selection, orientation.
– Compliance with federal, provincial and local
legislation.
– Compensation, benefits, training and development.
– Documentation and record keeping.
– Termination and transition policies.
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Trends in the Nature of Work (9 of 9)
Talent Management Analytics
• Convert workforce data into actionable information:
– Analytics improve performance.
– Identify workforce trends.
– Human capital facts - indicate organization’s overall health.
– HR - which department/individual needs attention.
– Human capital investment analytics - employee satisfaction.
– Workforce forecasts - predict required headcounts.
– Talent value model - shows why employees stay or leave.
– Talent supply chain - shows how workforce needs adapt to
changes in the business environment.
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The Impact of HR Technology (1 of 8)
The Strategic Importance of Technology in HRM
• HR Technology is any technology that is used to attract,
hire, retain, and maintain talent; support workforce
administration; and optimize workforce.
• Resides in different types of human resource information
systems (HRIS).
• Used by various stakeholders and accessed in different
ways.
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The Impact of HR Technology (2 of 8)
The Strategic Importance of Technology in HRM
• HR system strength is determined by seven factors:
– Visibility
– Clarity
– Acceptability
– Administrative consistency
– Effectiveness of administration and design
– Internal consistency
– Intensity
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The Impact of HR Technology (3 of 8)
The Strategic Importance of Technology in HRM
• Use of technology will enable HR to achieve three key
objectives:
– Strategic alignment with business objectives.
– Business intelligence by providing users with relevant
data.
– Effectiveness and efficiency by reducing lead times,
costs, and service levels.
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The Impact of HR Technology (4 of 8)
The Impact of Technology on the Role of HRM
• Deceased transactional activities.
– Lowers basic costs.
• Increased client/customer focus.
– Internal customers expect HR to be responsive in
providing meaningful and timely data.
• Increased delivery of strategic services.
– Proactive use of technology to support firm’s strategy.
– HR is a business providing talent management.
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The Impact of HR Technology (5 of 8)
Respecting Employee Privacy
• Employer has right to prevent liability to the company:
– Eliminate time wasted on personal matters.
– Prevent abuse of company resources.
• Employees have right to:
– Control information about themselves.
– Freedom from interference in their personal life.
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The Impact of HR Technology (6 of 8)
Respecting Employee Privacy
• Personal Information Protection and Electronic
Documents Act (PIPEDA) is legislation that governs the
collection, use, and disclosure of personal information
across Canada, including employers’ collection and
dissemination of personal information about employees.
– Employers must get consent from employees when
information is collected.
– Electronic monitor of employees is permitted.
▪ Employers should have written policy.
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The Impact of HR Technology (7 of 8)
Respecting Employee Privacy
• Video Surveillance:
– Monitor productivity.
– Prevent employee theft and vandalism.
– Employees must be made aware.
– Not advised if reasonable alternatives exist.
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The Impact of HR Technology (8 of 8)
Respecting Employee Privacy
• Deceased transactional activities.
– Lowers basic costs.
• Increased client/customer focus.
– Internal customers expect HR to be responsive in
providing meaningful and timely data.
• Increased delivery of strategic services.
– Proactive use of technology to support firm’s strategy.
– HR is a business providing talent management.
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Human Resources Information
Systems (1 of 9)
• Human Resources Information System (HRIS) is an
integrated system used to gather, store, and analyze
information regarding an organization’s human resources.
• The purposes include gaining greater functionality,
consolidating disparate systems and increasing efficiency.
• Provide a repository of information/data.
• Much of the data now available to HR comes from a data
warehouse, which is a specialized type of database that
is optimized for reporting and analysis and is the raw
material for managers’ decision support.
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Human Resources Information
Systems (2 of 9)
Relationship between HRM and HRIS
• An HRIS is the composite of databases, computer
applications, hardware, and present data regarding
human resources.
• It is a transaction processor, editor, and record-keeper.
• Enhance decision-making through decision support
systems:
– Extract data that is relevant, useful, timely, and
accurate.
– Metrics (workforce analytics) are statistical
measures of the impact of HRM practices on the
performance of an organization’s human capital.
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Human Resources Information
Systems (3 of 9)
Figure 3.1 HRIS Users Based on HR Function
*Employee is only able to record and maintain data in the HRI S if it is web-enabled.
Source: Based on Julie Bulmash, 2009.
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Human Resources Information
Systems (4 of 9)
Strategic Alignment of Information Systems
• Strategy and strategy-based metrics:
– Benchmarking only provides one perspective on how a
company’s human resources management system is
performing.
– Strategy-based metrics are metrics that specifically
focus on measuring the activities that contribute to
achieving a company’s strategic aims.
– Data mining is algorithmic assessment of vast
amounts of employee data to identify correlations that
employers then use to improve their employee
selection and other practices.
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Human Resources Information
Systems (5 of 9)
Figure 3.2 HRIS Subsystems
Source: Based on Julie Bulmash, 2009.
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Human Resources Information
Systems (6 of 9)
Major Components of an HRIS
• HR Administration:
– Integrate individual HR tasks.
• Recruitment and Applicant Tracking:
– Assess recruitment effectiveness.
– Maintain an applicant tracking system (ATS).
– Use intelligent automated resume screening.
• Time and Attendance:
– Data on issues such as vacations, absenteeism.
– Program company policies into the system.
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Human Resources Information
Systems (7 of 9)
Major Components of an HRIS
• Training and Development/Knowledge Management:
– Online access to training courses.
– Use learning management systems (LMS) to
support employee training.
– Integrate with talent management systems.
• Pension Administration:
– Data required for retirement plans.
• Employment Equity Information:
– Report federally required information (if applicable).
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Human Resources Information
Systems (8 of 9)
Major Components of an HRIS
• Performance Evaluation:
– Computerized appraisal systems.
– Compile notes and merge with rating on performance
traits.
• Compensation and Benefits Administration:
– Pay grade, bonus, promotion information.
– Types of benefit plans.
• Organization Management
– Organizational structure and job descriptions.
– Personnel and position replacement charts.
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Human Resources Information
Systems (9 of 9)
Major Components of an HRIS
• Health and Safety:
– Safety committees and safety audits.
– Evidence-based safety and security-related metrics.
• Labour Relations:
– Union memberships, seniority lists, grievances, and
resolutions.
• Payroll Interface:
– Track employees’ work status, wage rate, dependents,
benefits, overtime, tax status.
– Direct deposits or issue paycheques.
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Selecting and Implementing an HRIS
(1 of 7)
Types of HRIS
• Enterprise-wide system/enterprise resource planning
(ERP) system is a system that supports enterprise-wide
or cross-functional requirements rather than a single
department within the organization.
• Stand-alone system is a self-contained system that does
not rely on other systems to operate.
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Selecting and Implementing an HRIS
(2 of 7)
Phase 1: Adoption—Determining the Need
• Determining the organization’s needs.
• Areas of consideration:
– Company background.
– Management considerations.
– Technical considerations.
– HR considerations.
– Cost considerations.
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Selecting and Implementing an HRIS
(3 of 7)
Phase 2: Implementation
• Establish project team for implementation:
– Project manager, subject matter experts from HR,
managers from across the organization.
– Change management expert.
• Testing and data conversion.
• Privacy and security considerations:
– Sensitive nature of data.
– Assess need for access.
– Set up security profiles.
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Selecting and Implementing an HRIS
(4 of 7)
Phase 3: Integration
• Train the users on the system.
• Goal is for stakeholders to use the system and reap the
benefits identified in the needs analysis.
• As with any change, people need to become comfortable.
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Selecting and Implementing an HRIS
(5 of 7)
Phase 3: Integration
• Electronic HR (e-HR) is a form of technology that enables HR
professionals to integrate an organization’s HR strategies,
processes, and human capital to improve overall HR service
delivery.
• HR portal is a single Internet access point for customized and
personalized HR services.
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Selecting and Implementing an HRIS
(6 of 7)
Phase 3: Integration
• Employee self-service (ESS):
– Employees access and manage their personal information
directly.
– Internet, intranet, and interactive voice response are used
to facilitate ESS.
– Reduces HR operational costs.
• Management self-service (MSS):
– Enables managers to access a range of information about
themselves and the employees who report to them and to
process HR-related paperwork that pertains to their staff.
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Selecting and Implementing an HRIS
(7 of 7)
Cautions Regarding e-HR
• The usefulness of this technology depends on:
– The content is beneficial and relevant.
– How easy the system is to navigate.
– System’s cultural fit with the organization.
– Traditional transactional HR activities are no longer
required:
▪ Redistribute administrative HR work.
▪ Provide HR time to focus on strategic activities that
add value to the bottom line.
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