HO 343 -- Session 15:
Integrated HRIS Development
EK BUNCHUA
ek@alpha.tu.ac.th
Room # 528
Thammasat Business School
Today’s Lecture
1. Recap HRIS Concepts
2. HRIS Database
3. Internal Records
4. HR Intelligence
5. HR Research
6. HR DSS
7. Functional ISs Integration
1. Recap HRIS Concepts
AIS FNIS MKIS HRIS MFIS
• HRIS Definitions
• HRIS Challenges
• Purposes of HRIS
• A Model of HRIS
• HRIS Subsystems
• HRIS Applications Structure
Human Resource
Information System
... an integrated system designed
to provide information used in
HR decision making.
(Mathis & Jackson)
Human Resource
Information System
... a system for
• gathering and maintaining the data
that describes the HR,
• transforming the data into
information, and
• reporting the information to users.
(McLeod)
HRIS Challenges
Vertical integration


Horizontal integration
Other departments, managers,
employees are the main
customers of the HR services
HRIS must be integrated with
other functional information
systems, and must be linked
across the organizational
hierarchy to enable the
free flow of information
Purposes of HRIS


To improve the efficiency with
which data on employees and HR
activities is compiled
To provide HR information more
rapidly and more easily for use by
management in making decisions
(Mathis & Jackson)
A Model of HRIS
Internal
Records
System
HR
Intelligence
System
HR
Research
System
HR
Decision
Support
System
Data
base
• Recruiting
• Work force
management
& evaluation
• Compensation
• Benefits
etc.
(Adapted from McLeod)
HRIS Applications Structure

Stand-alone HRIS structure


Each application (subsystem) of HR
operates independently of each other
Core HRIS structure



The applications function as a unit
Sharing a common database
The outputs of one system provide the
inputs for another
2. HRIS Database
• Uses of HRIS Database
• Steps in Developing HRIS Database
Uses of HRIS Database

Operational


day-to-day support of the business
Analytical
analysis of historic and transaction
data
 to create or adjust HRM strategies,
as well as other business strategies

Steps in Developing HRIS Database
1. Define the database functions
What functions do I want this database to
perform?

Operational or Analytical?
Issues:




Quick response time and easy access?
Technical problem
Data analysis capabilities
IT people tend to focus on the operational of
systems
Steps in Developing HRIS Database
2. Define the information requirements
There are two approaches:
(1) Only a small amount of the employee data
captured will be used to make decisions

Identify and capture only key information
(2) Capture as much information as possible and
start looking for trends within the data


Data-mining approach
Create a large data warehouse which is used to
identify the meaningful trends
Steps in Developing HRIS Database
Which
approach to be determined?
Answer the following questions:





Have we prioritized the information required?
Is the information consistent with our HRM
strategy?
How easily can the information be updated?
What are the costs and benefits associated with
gathering information?
Should the database include prospective
employees?
Steps in Developing HRIS Database
3. Identify the information sources
Internal sources v.s. External sources
Issues:




How the information will be acquired and updated
on an ongoing basis?
Existing employees v.s. potential employees
Reliability
Steps in Developing HRIS Database
4. Select the database technology and
hardware platform



Depends on the intended uses of the database
Relational database is the preferred solution for the
vast majority of applications
The selection of hardware platform will depend on
the size of the database, and the number and
location of potential users.
Steps in Developing HRIS Database
5. Build applications to access and process
information


Specify application requirements
Element of the design
 Data flow
 Data store
 Processes
 Procedures
 Controls
 Roles
Steps in Developing HRIS Database
6. Populate the database


Major task when developing HRIS database
Poor-quality data is the primary reason for most of
HRIS failures
Issues



Much of the required information is already held in
paper or electronic format
Numbers of different locations where the data can
be found
Time consuming, require considerable resources
Steps in Developing HRIS Database
7. Maintain the database

Ongoing maintenance activity is required to keep
the information in the database up to date
The database is a living
breathing thing that requires
constant attention -- you can’t
just build it and say “that’s it”.
(Curtis)
3. Internal Records System
• Establishment of Internal Records
• Personnel Data Elements
• Accounting Data Elements
Establishment of Internal Records



Current employee-related data
Confidential data
 reference letters
 promotability assessments
 financial items
 medical benefits
Historical data
Personnel Data Elements
Non-financial in nature
 Relatively permanent
 Be created by HR at the time of
employment
 Be kept current as long as the
employees work for the firm
Examples:


employee name, sex, date of birth,
education, number of dependents, etc.
Accounting Data Elements
Primarily financial
 Tend to be more dynamic
Examples:


hourly rate, monthly salary, current
gross earnings, sales amount,
commission paid, year-to-date income
tax, etc.
4. HR Intelligence System
• HR Intelligence Concepts
• Sources of HR Intelligence
• Elements of HR Intelligence
HR Intelligence Concepts



HR Intelligence system gathers data
relating to human resource from the
firm’s environment
Informal reporting system
BPEST Analysis





Business (industry)
Politics
Economics
Social
Technology
Sources of HR Intelligence

Company’s own personnel
Executives
 Specialists and consultants
 Salespersons
 Other employees
Issue:
 Always busy people
 Fail to pass on important information
 Intelligence gatherers must be trained
and encouraged to report intelligence
back to the company

Sources of HR Intelligence

Company’s supply chain





Suppliers
Resellers
Customers
Partners
Competitors




Annual reports
Speeches and press releases
Advertisements and marketing
communications
Web sites
Sources of HR Intelligence

Publications and mass media




Syndicated services


Television news
Newspapers
Magazines and journals
Customized reports on demand
Electronic databases
Elements of HR Intelligence

Government intelligence


To assist the firm in complying with the
various employment laws
Labor union intelligence

To manage the labor contracts between
the unions and the firm
Elements of HR Intelligence

Financial community intelligence


To be used in personnel planning based
on economic data
Global community intelligence


To describe local resources such as
housing, education, and recreation
To be used in recruiting employees on an
regional, national, and international scale
Elements of HR Intelligence

Supplier intelligence

To enable the firm to perform its
recruiting and hiring functions
 Insurance companies
-- employee benefits
 University placement center and
employment agencies
-- source of new employees
Elements of HR Intelligence

Competitor intelligence


Another source of new employees
especially in highly specialized
knowledge and skills required industries
To gather information concerning their
personnel practices and individuals who
are potential recruits
5. HR Research System
• Uses of HR Research
• Types of Research
• Experiments and Pilot Projects
• Employee and Attitude Surveys
• Exit Interviews
• HR Audit
A Definition of RESEARCH
R = Recognition of information needs
E = Effective decision making
S = Systematic and objective
E = Exude/disseminate information
A = Analysis of information
R = Recommendations for action
C = Collection of information
H = Helpful to managers
(Malhotra)
Uses of HR Research




Monitoring current HR activities
Identifying HR problem areas and
possible solutions to those problems
Forecasting trends and their impact on
HR management
Evaluating the costs and benefits of
HR activities
Types of Research

Primary research


Research method in which data are
gathered firsthand for the specific
project conducted
Secondary research

Research method using data already
gathered by others and reported in
books, articles in professional
journals, or other sources
Experiments and Pilot Projects
To determine how factors respond when
changes are made in one or more variables,
or conditions
Major problem:


HR management is practiced in the real
world
Employee and Attitude Surveys


To give employees opportunities to voice
their opinions about specific HR activities
Can be used to:



diagnose specific problem areas
identify employee needs or preferences
reveal areas in which HR activities are well
received or are viewed negatively
Issues:


Anonymity
Support of top management
Exit Interviews
To focus on a variety of problems
 An interview in which those leaving the
organization are asked to identify the
reasons for their departure
Issues:



Most popular reason - an offer for more pay
elsewhere
Must be conducted by HR specialists rather
than supervisors some time after they have
left the organization
HR Audit
To assess HR effectiveness
 A formal research effort that evaluates the
current status of HR management in an
organization
Steps:




Determine the objectives to be achieved in
the HR area
Compare the actual status of HR activities
with the objectives
Review of all relevant HR documents
6. HR Decision Support System
• DSS Concepts
• Characteristics of DSS
• Identifying DSS Problem
• Components of DSS
• Stages of Decision Making
• Levels of DSS
• Approaches to Decision Analysis
DSS Concepts

A decision support system should:
 Assist
managers in making decisions to
solve semi-structured problems.
 Support the manager’s judgment rather
than try to replace it.
 Improve the manager’s decision-making
effectiveness rather than its efficiency.
Characteristics of DSS





DSS offer users flexibility, adaptability, and a
quick response
DSS allow users to initiate and control the input
and output
DSS operate with little or no assistance from
professional programmers
DSS provide support for decisions and problems
whose solutions cannot be specified in advance
DSS use sophisticated analysis and modeling
tools
Identifying DSS Problem





Problems should be identified by users
There must be a body of data to work with and analyze
The problem must be one for which no simple formula
provides a solution
There must be some systematic way of thinking about
the problem that a DSS can automate or assist
The problem must be important enough to engage the
time and energy of management groups ranging from
first line supervisors to senior management
Components of DSS
Financial
Accounting
Sales/MKT
Production
DSS
Database
Model
Base
DSS Software System
Manage DSS Database
Manage Model Base
Manage User Interface
User
Interface
Statistical
Forecasting
Operational
Planning
Stages of Decision Making
Intelligence
Is there a problem?
Design
What are the alternatives?
Choice
Which should you choose?
Implementation
Is the choice working?
Levels of DSS


Level 1:
Data Acquisition, Storage and Retrieval
Level 2:
Data Analysis


Finding and analyzing the relationships
between variables
Level 3:
Decision Analysis

Prioritization and choice among alternatives
Approaches to Decision Analysis




Checklists
Pro/con analysis
Weighting and scoring method
Management sciences models





Linear programming
Optimization models
Decision tree
Multiple regression
Analytic hierarchy process
7. Functional ISs Integration
• Development of Business
Information System
• Managerial Views of HRIS
• Value Chain Model
• System Concept
• HR Information Transfer
Development of
Business Information System
From local to national
to global business
From price
to non-price
competition
From buyer needs
to buyer wants
Managerial Views of HRIS






HRIS is the most highly valued
HRIS is valued higher than other
systems
HRIS is valued on a par with other
systems
HRIS is valued less than other
systems
HRIS has little value
Top management is unaware of HRIS
Support
Activities
Value Chain Model
Firm Infrastructure
Human Resource Management
Technical Development
Profit
Margin
Primary
Activities
Procurement
Inbound
Logistics
Outbound Marketing
Operations Logistics & Sales
Customer
Services
System Boundary
Organization
as a System
External
Internal
Each subsystem
can be viewed as
another system;
and consists of its
own subsystems
AC
FN
HR
B
MFG
A
D
Interact and
inter-linkage
among the
subsystems
to achieve
org. goal
Achieve
MK
C
Consists of
functional
Subsystems
Direct
System Concept
Each subsystem
has its dept. goal
ES
DSS
3. Organizational
Levels
OIS
(MIS)
DIS
AIS
FNIS
MKIS
HRIS
MFIS
MIS
KWS
TPS
OAS
1. Support Provided
EIS
I-OIS
2. Functional
Areas
WIS
PIS
HR Information Transfer
Vertical integration


Horizontal integration
Free flow of information

To provide the information to
those who need it in a format
that is useful to them
Communication affects the
management of people as much
as (or more than) any other
process over which management
is influence
Communication throughout the
organization is very important
Ready for EXAM?