Select HR information management
system
Overview
When an organisation identifies a need to select a HR information
management system a number of steps must be followed to ensure success.
The selection process must be based on the organisations HR requirements.
Selection criteria are drawn up and agreed against those requirements which
enables research into the most applicable HRMIS to meet those needs.
Key terms
Analysis
The process of objectively examining a set of information against a
predetermined set of criteria.
Cost benefit analysis
An analysis used for weighing the positive and negative impacts of a
particular policy, such as an IR policy, against each other. The impacts are
judged in terms of financial return or productivity.
HRMIS
Human Resource Management Information System; computer systems to
collect and analyse information to assist in the making of timely HR
management decisions, examples are databases, spreadsheets, information
networks. Also known as HRIMS, HRIS and HRMS.
Human Capital Management
This term is used to describe processes, procedures and software systems
used to manage people in the workplace.
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Research
The process of investigating and exploring a topic or area of concern in
order to reveal information for analysis.
Document the business case
The first step is to document the business case for evaluation and selection.
The business case is a document that states the organisations needs as
selection criteria.
The business case must be agreed within the organisation before evaluation
can begin.
The business case must contain the following types of content.
Objectives
What is your project to achieve? List the objectives of the project in terms of
what the project is to achieve. You must include how to measure the
achievements to judge the success of the project.
Describe the business objectives of the review and/or list the outputs that
will be produced by the review.
Scope
Qualify the objectives listed above in terms of the key activities and
business areas affected by this project. The business areas affected by this
project are also shown in the context diagram in the Context of proposed
system chapter.
List any activities and areas that are specifically excluded and describe any
constraints affecting the scope.
Background information
Explain why the project is being undertaken at this time and describe any
other activities, plans and policies relevant to the project.
Also, briefly describe the existing situation including any assumption, with
consideration given to both computerised and manual systems.
Pay particular attention to a comparison of the existing situation with future
business needs, including reference to the following aspects of the existing
situation:
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
shortcomings

features to be retained

features to be discarded.
Very briefly identify other options (including the option to do nothing)
which were considered in arriving at this proposal and the reasons for their
rejection. For example, where it is proposed to develop the solution inhouse, an alternative would have been to acquire a package.
Requirements
Requirements should be stated as:

Business requirements
The requirements in terms of organisational strategy, policies and
budget.

User requirements
The requirements in terms people using the system including line
managers and employee self-service functions.

Technical requirements
The requirements in terms of technical capacity of the organisation.

Performance requirements
The requirements in terms of performance expected from the software.
Resources required
Clearly and separately identify the requirements, so that each Manager
responsible for providing resources can readily access the commitments for
their area.
Selection criteria
For each product to be evaluated the selection criteria must be the same. A
sample of the types of selection criteria required is:

Product summary

Features/advantages

Limitations/disadvantages

Cost
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Research
The following set of criteria provides a sample of what may be required
when selecting a HRMIS. Your task is to write the descriptions of the
criteria in the space provided and add additional criteria you think are
important. Some descriptions have been completed to assist you in starting.
Table 1: Operational criteria (2 cols)
Criteria
Description
Simple and easy system
The system is simple and easy to use and aligns with
industry practice and terminology.
End User Accessibility
Capture data early and once
only
Streamlined system and
processes
Electronic communication
Administrative Framework
Table 2: Employment Management criteria (2 cols)
Criteria
Description
Employee self-service
Using the web, employees may view their payslips, yearto-date details and basic taxation information; and
maintain some of their own their personal information such
as residential and postal address and emergency contact
details
Recruitment
Leave Management
Time and attendance
Benefits Administration
Performance Management
Salary Packaging
Administer Training
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Table 3: Budgeting and planning criteria (2 cols)
Criteria
Description
Workforce Planning
The system will provide the capability to develop staffing
profiles by individual area and across the organisation
Position Management
Salary Planning
Reporting/Management
Workflow
Table 4: Vendor and software criteria (2 cols)
Criteria
Description
Service Level Agreement
The vendor provides a Service Level Agreement for
implementation, 24/7 support and product upgrades for 10
years.
Risk Management
The system implementation will be based on managed risk
planning rather than complete risk avoidance
Security
Legislative compliance
Audit
Records Management
Evaluate potential systems and
document results
When evaluating a potential system it is important to have a report structure
into which you can easily enter information and results.
Each product evaluated should have the same structure. As well as the
evaluation criteria listed above you should consider discussion of the
following for each product.

Tangible benefits
Describe and value any tangible benefits.
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
Intangible benefits
Describe any intangible benefits.

Risk management
State the familiarity of the technology involved in the project as familiar
or unfamiliar. The more familiar the technology the lower the
associated technological risk. State all risks, their likelihood of causing
delays or cost over-runs, and a strategy to minimise such risks.

Test Specifications and activities
Describe the testing strategy to be used. List specific resources required
for testing, including staff, hardware and applications that might be
rendered unavailable during testing activities.

Constraints
Constraints are requirements that impose limitations or boundaries
within which the system must operate. As such you must consider
requirements of time, cost, legal, government and departmental policy,
and specific technical requirements.

Other assumptions
List any other assumptions

Success measures
Describe the success measures by which the product review can be
assessed.
Cost benefit analysis
This is a critical analysis step. Where measurable benefits have been
identified for alternative products then you must undertake a cost benefit
analysis to support the comparison of these alternatives.
The costs to be shown are the total costs for the project, including those
costs which will be funded from budgets outside of the control of this
project.
Briefly summarise the costs and benefits (savings) of the proposed solution.
All costs are considered tangible (capable of being expressed as dollar
values). No costs are described as intangible.
Table 5: Costs (2 cols)
Costs
Purchase price
Initial setup cost
Implementation cost
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Running cost
Site license cost
Renewal of license
Enhancement cost
Consulting cost
Training Cost
Staffing cost
paper cost
forms & procedures
Table 6: Benefits (Savings as $ value) (2 cols)
Benefits
Staff reduction
Better throughput
Meeting Management Information needs
Response time
Productivity improvement
Summary
Selecting the correct HRMIS can greatly enhance an organisations selfknowledge and can add significantly to it's intellectual capital.
The selection process must be based on the organisations HR requirements.
Selection criteria are drawn up and agreed against those requirements which
enables research into the most applicable HRMIS to meet those needs.
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