Human Resource Management Software

(Case Study)

NAME – SHWETA NARENDRA KARIA

ADM NO. – DPGD/JL07/0085

SPECIALIZATION – HUMAN RESOURCE MANAGEMENT (HR)

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 HUMAN
RESOURCE
MANAGEMENT
SOFTWARE

Extensive research on HRMS OR HRIS

Executive summary

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The case study Human resource management system (HRMS) or
human resource information system covers entire picture of software
which constitute attraction, selection, retention, development, and
utilization of labor resource in order to achieve both individual and
organizational objectives. Case study also cover bright picture of
Human Resources Information Systems (HRIS) which is an integration
of HRM and Information Systems (IS). Also the function & important
uses of HRIS or Human resource Information system & how it helps
the helps HR managers to perform HR functions in a more effective
and systematic way by using technology. The case study covers uses
from acquire, store, manipulate, analyze, retrieve, to distribute
pertinent information regarding an organization's human resources.
This project gives also clear indication uses of How to implement and
how to take precaution while implementing HRMS in organization. It
emphases on fact that amount of degree HRMS can facilitate on
decision making. Project mainly covers components or important
available Modules in the market in deeply. Also case study given real
market information about top 5 players or system running in market.
This case study ends with critical analysis as well the conclusion regard
to project.

Table of Contents
1.Introduction 6
2.purpose 8

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3.Advantages of HRMS 9
4.How to Select HRMS 11
5.Payroll module 15
6.training & learning management
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module
7.Man power planning Module 19
8.Recruitment Module 22
9.Leave management Module 23
10. Performance Appraisal
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Module
11. 5 Steps to select HRMS 30
12. Security of HRMS 34
13. Top 5 Market Player or
37
System
14. Implementation of HRMS 41
15. Impact of implementation 45
16. Barriers to succession of
57
HRMS
17. Critical Analysis 58
18. Conclusion 59
19. Bibliography 60

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 Meaning
What is Human resource Information System?

The Human Resource Information System (HRIS) is a software or online solution for the data
entry, data tracking, and data information needs of the Human Resources, payroll, management,
and accounting functions within a business. Normally packaged as a data base, hundreds of
companies sell some form of HRIS and every HRIS has different capabilities. Pick your HRIS
carefully based on the capabilities you need in your company.

OR

A Human Resource Management System (HRMS, EHRMS), Human Resource Information

System (HRIS), HR Technology or also called HR modules, refers to the systems and processes
at the intersection between human resource management (HRM) and information technology. It
merges HRM as a discipline and in particular its basic HR activities and processes with the
information technology field, whereas the programming of data processing systems evolved into
standardized routines and packages of enterprise resource planning (ERP) software. On the
whole, these ERP systems have their origin on software that integrates information from different

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applications into one universal database. The linkage of its financial and human resource modules
through one database is the most important distinction to the individually and proprietary
developed predecessors, which makes this software application both rigid and flexible

A Human Resource Information System is a systematic procedure for collecting, storing,

maintaining, retrieving, and validating data needed by an organization about its human resources,
personnel activities, and organization unit.

An HRIS need not be complex or even computerized. HRIS can be as informal as the payroll
records and time cards of a small business, or as extensive and formal as the computerized human
resource databases of major manufacturers, banks, and governments. HRIS can support long
range planning, with information for labor force planning, and supply and demand forecasts;
staffing with information on equal employment, separations, and applicant qualifications; and
development with information on training program costs and trainee work performance. HRIS
can also support compensation programs

Typically, the better The Human Resource Information Systems (HRIS) provide overall:

• Management of all employee information.

• Reporting and analysis of employee information.
• Company-related documents such as employee handbooks, emergency evacuation
procedures, and safety guidelines.
• Benefits administration including enrollment, status changes, and personal information
updating.
• Complete integration with payroll and other company financial software and accounting
systems.
• Applicant and resume management.

The HRIS that most effectively serves companies tracks:

• attendance and PTO use,

• pay raises and history,
• pay grades and positions held,
• performance development plans,
• training received,
• disciplinary action received,
• personal employee information, and occasionally,
• management and key employee succession plans,
• high potential employee identification, and
• applicant tracking, interviewing, and selection.

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An effective HRIS provides information on just about anything the company needs to track and
analyze about employees, former employees, and applicants. Your company will need to select a
Human Resources Information System and customize it to meet your needs.

With an appropriate HRIS, Human Resources staff enables employees to do their own benefits
updates and address changes, thus freeing HR staff for more strategic functions. Additionally,
data necessary for employee management, knowledge development, career growth and
development, and equal treatment is facilitated. Finally, managers can access the information they
need to legally, ethically, and effectively support the success of their reporting employees.

Human Resource Information Systems (HRIS): Providing Business with Rapid Data
Access, Information Exchange and Strategic Advantage.

Purpose

The function of Human Resources departments is generally administrative and common to all
organizations. Organizations may have formalized selection, evaluation, and payroll processes.
Efficient and effective management of "Human Capital" has progressed to an increasingly
imperative and complex process. The HR function consists of tracking existing employee data
which traditionally includes personal histories, skills, capabilities, accomplishments and salary.
To reduce the manual workload of these administrative activities, organizations began to
electronically automate many of these processes by introducing specialized Human Resource
Management Systems. Due HR executives rely on internal or external IT professionals to develop
and maintain an integrated HRMS. Before the "client-server" architecture evolved in the late
1980s, many HR automation processes were relegated to mainframe computers that could handle
large amounts of data transactions. In consequence of the high capital investment necessary to
purchase or program proprietary software, these internally-developed HRMS were limited to
organizations that possessed a large amount of capital. The advent of client-server, Application
Service Provider, and Software as a Service or SaaS Human Resource Management Systems
enabled take increasingly higher administrative control of such systems.

Human Resource Management Systems encompass:

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 1. Payroll
2. Leave management system
3. Benefits Administration
4. Performance appraisal module
5. Recruiting
6. Training/ Learning Management System (LMS)
7. Performance Record

ADVANTAGES OF HRIS

To make a human resource department more effective and efficient new technologies are now
being introduced on a regular basis so make things much simpler and more modernized. One of
the latest human resource technologies is the introduction of a Human Resources Information

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System (HRIS); this integrated system is designed to help provide information used in HR
decision making such as administration, payroll, recruiting, training, and performance analysis.

Human Resource Information System (HRIS) merges human resource management with
information technology to not only simplify the decision making process, but also aid in complex
negotiations that fall under the human resource umbrella. The basic advantage of a Human
Resource Information System (HRIS) is to not only computerize employee records and databases
but to maintain an up to date account of the decisions that have been made or that need to be
made as part of a human resource management plan.

The four principal areas of HR that are affected by the Human Resource Information System
(HRIS) include; payroll, time and labor management, employee benefits and HR management.
These four basic HR functionalities are not only made less problematic, but they are ensured a
smooth running, without any hitch. A Human Resources Information System (HRIS) thus permits
a user to see online a chronological history of an employee from his /her position data, to
personal details, payroll records, and benefits information.

The advantage of a Human Resource Information System (HRIS) in payroll is that it automates
the entire payroll process by gathering and updating employee payroll data on a regular basis. It
also gathers information such as employee attendance, calculating various deductions and taxes
on salaries, generating automatic periodic paychecks and handling employee tax reports. With
updated information this system makes the job of the human resource department very easy and
simple as everything is available on a 24x7 basis, and all the information is just a click away.

In time and labor management a Human Resource Information System (HRIS) is advantageous
because it lets human resource personnel apply new technologies to effectively gather and
appraise employee time and work information. It lets an employee's information be easily tracked
so that it can be assessed on a more scientific level whether an employee is performing to their
full potential or not, and if there are any improvements that can be made to make an employee
feel more secure.

Employee benefits are very crucial because they help to motivate an employee to work harder. By
using a Human Resource Information System (HRIS) in employee benefits, the human resource
department is able to keep better track of which benefits are being availed by which employee
and how each employee is profiting from the benefits provided.

A Human Resource Information System (HRIS) also has advantages in HR management because
it curtails time and cost consuming activities leading to a more efficient HR department. This
system reduces the long HR paper trail that is often found in most HR divisions of companies and
leads to more productive and conducive department on the whole.

Application of HRIS

HRIS can be applied in the following areas of HRM

• HR planning
• Succession planning
• Work force planning
• Work force dynamics analysis

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 • Staffing
• Applicant recruitment and tracking
• Employee data base development
• Performance management
• Learning and development
• Compensation and benefits
• Pay roll
• Job evaluation
• Salary survey
• Salary planning
• International compensation
• Benefits management
• Develop innovative Org. Structure
• Develop IT

How to select human resources software system or

why to select –

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Human Resources information technology is essential for companies to manage their benefits
plans and their employee information. Benefits management technology is no longer a “nice to
have,” but a necessity to help HR manage both a sea of information and the money spent on
benefits plans, as HR faces limited resources and constantly changing data. But how do HR and
other executives know they are selecting the best HR information technology to manage all of the
details, and that the solution they select will stand the test of time?

Following are the key questions to ask and answer in the process of selecting Human Resources
information technology.

• What is the degree of flexibility and scalability that the HR information technology
software provides? HR professionals should determine if the software can import data from
multiple Excel spreadsheets, databases, and paper documents and the level with which it can
interface with all kinds of systems and data.

The software should be able to take in and filter information from multiple sources. Ideally,
this process should also be automated. Many online enrollment solutions require that data be
manually manipulated before it can go to a carrier to update their systems. Automation of
the update format, transmission schedule and delivery method can help to eliminate billing
and eligibility issues.

• Will the software be able to accommodate HR’s company and benefits carriers’ rules? A
truly capable enrollment engine will evaluate each enrollment activity and apply any
necessary combination of rules, messages, prompts, and options specifically designed to
meet the exact eligibility requirements desired. The software should accommodate any
eligibility rules that the company and carriers have.

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• Will the HR information technology be able to grow and scale with the organization? HR
should assess the technology’s ability to grow as the company brings on new employees,
offices, benefits changes, and rules. HR should ask about the thresholds for each of these
elements.

• Is the HR information technology software able to integrate with other systems? Payroll
and other functions often share much of the same information as benefits management. HR
can obtain greater efficiencies when data and other employee information entered into one
system can be shared with another system.

• Who is responsible for implementing, or building, the solution? What level of training is
involved? Some solutions require the client to be very involved with the initial
implementation, which can be overwhelming for already busy HR administrators.

HR should have a clear understanding of the level of training and technical expertise that
will be required and the amount of time expected. Questioning solution providers on this
topic can provide insight into subtle areas that might initially appear simple, yet involve
significant technological expertise. HR can then determine specific tasks that may be so
cumbersome as to realistically impede completion, potentially reducing HR information
technology value and ROI.

• If training is involved, is there a charge? Costs of training should also be assessed -

including time away and travel expenses for off-site travel. HR needs to become aware of all
hard and soft costs involved in the HR information technology adoption.

• Who will own the data? The answer to this question should be the Human Resources
organization. Companies should be able to transport their data to any Application Service
Provider (ASP). If the data resides on a carrier’s proprietary server, the company may
sometimes be charged additional fees should it switch carriers.

• What types of maintenance and upkeep are required? When software is installed on a
company’s on-site workstations or servers, regular updates to that technology are often
required and may be cumbersome to plan for and manage. Updates to HR information
technology are often made automatically with software available online through an
Application Service Provider (ASP) or Software as a Service (SaaS) model.

• What security measures are built into the HR information technology? If the software is
available online, through an ASP or SaaS model, the provider should offer daily backups,
backup servers, and added protective layers. Additional systems and procedures should be in
place to safeguard information from being lost or accessed by unauthorized personnel. HR,
in consultation with other managers, should have exclusive authority to decide who will be
allowed access to the HR information technology and to what degree.

• Will employees be able to enroll in benefits plans and make changes in real-time to their
personal data and plan choices? Employee access should be a given, considering the
widespread, general access to computers; 70% of the population has Internet access at home.
Employee self-service provides huge potential to save time and money. A good self-service
system will guide employees smoothly through entering information about themselves and
their dependents.

The system should clearly present the plans available and enable employees to make

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 selections at their convenience, simplifying these actions throughout the process with
wizards. Employees should also be able to add dependents and change information as
necessary, 24 hours a day, seven days a week.

These are additional questions to answer as you assess your organization’s Human Resources
information technology needs. Here is the first half of the questions.

• Will the technology provide Human Resources with the authority to decide who will be
allowed access and to what degree? Along the same vein of providing employee access, the
technology should give HR the final say. HR should have the authority to approve all data
before it is transmitted to carriers, and should also determine the extent to which employees
and others have access.

• What types of reporting capabilities are available from the HR information technology?
Reporting technology should offer multiple views and formats (spreadsheet, PDF, html), big
picture assessment and the ability to drill down to enhance decision-making. HR should be
able to assess, at any time, enrollments in specific plans, outstanding actions, and changes in
employee demographic information in relation to benefits and other employee data.

• Does the software offer specific features to help HR save time? Depending on its own
departmental needs, HR might want to inquire about the technology’s ability to process
information in batches, manage notifications and billing for COBRA policies, provide self-
billing and bill reconciliation tools, and specific reporting.

• Does the software offer specific features to help HR communicate better with employees?
Some programs give HR the flexibility to communicate with employees on a number of
levels - via mass email, electronic "bulletin boards," and by specific filter criteria (such as
location, department, insurance plans, enrollment status, retirement status, and others)
through the HR information technology system. Having a number of means to communicate
can further automate processes and help HR to better target messages.

• Does the HR information technology system provide a means of checks and balances? In
addition to enabling HR to approve transactions, many HR information technology systems
also provide capabilities for HR to serve as the gatekeeper in auditing carrier billings to
make sure they agree with the data in the system. This can:

--ensure the accuracy of carrier invoices,

--save time and money,
--assist in the timely delivery of employee enrollments, and
--enhance confirmation of eligibility when employees go for care.

• How will information be exchanged with carriers? And, who will be responsible for this
interaction? Integration of the HR information technology system should be judged not only
by the number of carriers with which the software has relationships, but by the type of
connection that it enables. Ensuring successful interaction with carriers through a benefits
management software requires many steps, including:

--gathering initial implementation data census;

--setting up initial integration for the ongoing information exchange;
--coordinating daily or weekly interaction to make sure data is received and accurately

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 applied;
--reviewing ongoing updates;
--ensuring carrier requirements for enrollment are being met in compliance with regulators;
and
--fostering a proactive relationship with each carrier to improve the relationship of data
exchange.

Knowing who is responsible for each task is essential to fully understanding a product
offering. Each software provider will offer a different level of integration in providing some,
to all, of the tasks outlined above. HR should look to work with vendors that demonstrate
strong, ongoing, seamless relationships with the company’s selected carriers.

Many providers enable transmission of a generic ANSI 834 file, which may or may not be
accepted by the carrier, a factor often influenced by the size of the group. Managers should
look for providers that offer clean, validated transfers (ensuring the eligibility of the
transaction), customized to each carrier’s needs to avoid issues. They should also look to
providers that have a dedicated EDI (Electronic Data Interchange) department to interact
with the carrier’s own, specific transfer language.

• What level of customer service is provided? Is there an additional charge for service? HR
should determine the level of access to “help” that is provided and what constitutes customer
service - online help via a database, online chat, email support, conversations with a live
person, or a combination thereof. Given the sensitivity of benefits and other HR information,
managers should expect a response to inquiries within 24 hours from a direct contact that
can help.

• What is the cost of the HR information technology system and does it outweigh the
benefits? HR should assess the complete cost of the HR information technology system,
including all annual, monthly, and one-time charges, alongside the benefits provided. A
slightly more expensive system may more than pay for the difference with features that
enable employees to maintain their own records and offer greater convenience, time savings,
and accuracy. These factors should be considered and weighed in selecting an HR
information technology system.

The need for HR information technology systems is increasing. With HR staff finding a vast
array of options in HR information technology systems, it is increasingly important to analyze
and weigh all options available. Choosing an HR information technology system should be
looked at as an investment that will grow with the department and company’s needs. These
questions will lead you to the appropriate HR information technology system for your company

Payroll Module

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The Payroll module maintains all information on your employees. This includes keeping track of
sick and vacation hours accumulated and used during the year. Each employee record includes a
Human Resources information page where you may enter notes relating to job history and
performance reviews.

The Payroll module allows for calculation of two additional local withholding taxes in
conjunction with the Federal and State withholdings. Earned Income Credit calculations are also
included as an option.

You may create an unlimited number of deductions and miscellaneous compensations to assign to
employees. Deductions and miscellaneous compensation may be calculated as taxable or tax
exempt.

Payroll module includes a Direct Deposit function. Direct Deposit requires the activation of an
Electronic Transaction Network account. The interface for deposit transmittal to the Electronic
Transaction Network is already included in the Payroll module.

The Payroll module contains the options listed below:

• Maintain Employee Information

• Enter Time Cards
• Post Time Cards

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• Calculate Pay
• Maintain Employee Deductions
• Maintain Miscellaneous Compensations
• Void Pay Check
• Electronic Transaction Network Interface
• Maintain Payroll Divisions
• Payroll Tax Tables
• Maintain Tax Codes
• Payroll Reports

Training & Learning management module

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The training module provides a system for organizations to administer and track employee
training and development efforts. The system, normally called a Learning Management System if
a stand alone product, allows HR to track education, qualifications and skills of the employees, as
well as outlining what training courses, books, CDs, web based learning or materials are available
to develop which skills. Courses can then be offered in date specific sessions, with delegates and
training resources being mapped and managed within the same system. Sophisticated LMS allow
managers to approve training, budgets and calendars alongside performance management and
appraisal metrics.

Many organizations have gone beyond the traditional functions and developed human resource
management information systems, which support recruitment, selection, hiring, job placement,
performance appraisals, employee benefit analysis, health, safety and security, while others
integrate an outsourced Applicant Tracking System that encompasses a subset of the above.

A learning management system (LMS) is software for delivering, tracking and managing
training/education. LMSs range from systems for managing training/educational records to
software for distributing courses over the Internet and offering features for online collaboration.
In many instances, corporate training departments purchase LMSs to automate record-keeping as
well as the registration of employees for classroom and online courses. Student self-service (e.g.,
self-registration on instructor-led training), training workflow (e.g., user notification, manager
approval, wait-list management), the provision of on-line learning (e.g., Computer-Based
Training, read & understand), on-line assessment, management of continuous professional
education (CPE), collaborative learning (e.g., application sharing, discussion threads), and

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training resource management (e.g., instructors, facilities, equipment), are dimensions to
Learning Management Systems.

Most LMSs are web-based to facilitate access to learning content and administration. LMSs are
used by regulated industries (e.g. financial services and biopharma) for compliance training. It is
also used by educational institutions for enhance and support classroom teaching and offering
courses to larger population of learner across the globe.

Some LMS providers include "performance management systems," which encompass employee
appraisals, competency management, skills-gap analysis, succession planning, and multi-rater
assessments (i.e., 360 degree reviews).

For the commercial market, some Learning and Performance Management Systems include
recruitment and reward functionality.

LMSs are based on a variety of development platforms, like Java EE based architectures,
Microsoft .NET, PHP, and usually employ the use of a database back-end. Some systems are
commercially developed and have non-free software licenses or restrict access to their source
code, Other systems are free and open-source and frequently used. Other than the most simple,
basic functionality, LMSs cater to, and focus on, different educational, administrative, and
deployment requirements.

MANPOWER PLANNING MODULE

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MANPOWER PLANNING…headcount analysis, turnover, organization charts

How many employees do we have to hire, train or promote this year?

The Manpower Planning module manages the employee inventory and handles a number of
related issues, including:
Maintaining an inventory of the number of required job positions by Branch, Department, and
Section based on the organizations
Manning objectives

Calculating actual head count and determining variance between required and actual

Providing interface to third-party applications such as OrgPlus and Visio for printing
organization charts

Calculating turnover for the current base period

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 Projecting turnover for a future period using past results

Including retirement projections to determine future vacancies

Integration with Succession Planning

While the Manpower Planning module provides quantitative forecasting, when combined with
the Succession Planning module, they provide a forecasting tool that may be used to predict the
number of people the organization will have to hire, train and promote in a given period.
Succession Planning provides more qualitative features.

How many employees with appropriate qualifications (education, skills and training) will be
available for promotion to management type jobs this year? Who in our present work force is
qualified today to be considered for an opening as a marketing manager?

SUCCESSION PLANNING…providing adequately trained and qualified personnel at all

levels

Perhaps the greatest benefit of an integrated human resource and payroll system is the instant, on-
demand access to information you need to make decisions quickly. By enabling authorized
personnel to instantly lay their hands on detailed applicant and employee information, HRM
helps your organization work smarter, faster, and more efficiently.

For example, Succession Planning's capability helps you instantly scan your pool of applicants, as
well as internal resources, to match qualifications to open positions. Not only does this make it
easier to find the right candidate for the right position, you may also identify potential skill
shortages in your workforce, enabling you to proactively train and hire for future skill
requirements.

The prime objective of Succession Planning is the provision of adequately trained and qualified
personnel to meet the future staffing needs of the organization. Accomplishing this requires a
quantitative and qualitative understanding of the past and planning for the future. The Manpower
Planning and Succession Planning modules deliver in this regard.

Job Requirement

One of the pre-requisites of Succession Planning is the maintenance of job position data. This
requires entry of information on the education, skills and training requirements of each job
position.

Qualification Gap Analysis

This is a HR planning and development feature that may be used by the HR department or at the
departmental level. The Dynamic Selection mechanism is first used to select the set of employees
for whom the gap analysis will be done.

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The Generate Gap function is then used to match the qualifications for each individual against the
requirements for the substantive position to which the individual is assigned. Gap data may be
displayed on the screen or extracted to a workfile. The Extract to Workfile feature exports the gap
data to an Excel spreadsheet which then provides a printed copy of the results.

Information on employees who are qualified, over-qualified or under-qualified is then available.

For under-qualified employees who require training, the integrated Training module may be
accessed directly. Employees may then be listed for recommended training to address the
identified qualification gaps.

Job Forecasting

Job Forecasting addresses the issues of assessing the potential of employees to fill future
positions. It uses current qualifications data of the selected employees and matches against the
required qualifications for future positions. The identified gaps determine the training that will be
needed to enable employees to meet the required.

Career Paths

Whether employees are promoted within relatively specialized career lines or be given broad
exposure to a variety of jobs depends on both the organization's policy and individual choice. It
is a function of organizational needs and employee expectations.

Within a given organization, its members come to anticipate a certain pattern of job progression
based on what they have observed of the internal mobility of other employees. The system
provides a facility to display various career paths based on the organization structure. Various
career path options may be discussed with employees and graphically illustrated.

Job Search

The Succession Planning module includes a Job Search feature. The vacant position is first
selected. The qualification search parameters are then specified and may include any
combination of Education, Skills and Training.

The system may also be directed to search among certain selected employees and/or applicants
(from the applicants database).

With the Search feature, the system searches the target databases and provides a short-list of
candidates who meet the stated requirements. Recruitment may then be focused on the short listed
candidates.

All the above and much more.

Recruitment Module

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The HR Recruitment Module is designed to help HR manage a core function within Human
Resources. This module forces a new job request to go through a strict workflow before HR can
finally begin trying to find candidates to fill the role. The main benefit for HR is that a job request
must have certain information from the manager before being submitted, if the information is not
good enough then it can be rejected and sent back to the requestor with comments as to why the
information is not good enough. The system can also be set up to be a Mail In Database, if this is
done then external applications can be received into the system and these can be monitored by
HR. If successful then the applicant can be created as a Candidate in the system.

• Job Requisitions
• Skill sets and Competencies for Vacancies
• Recruitment Channels, i.e. Press, Agencies
• Links to existing Website
• On-line application
• Fully automated Interview Process
• Correspondence, i.e. Offer Letters, Rejections, Terms & conditions
• Built in reports including Equal Opportunities
• Links to People and Training Module

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 Leave Management System(LMS)

LMS is a comprehensive and flexible leave management system enabling you to enter and
manage leave requests according to your rules. It is an integrated module of WorkTech Time
that allows you to:

Capture Employee Leave Requests

• Enter and cancel requests.

• View outstanding leave requests, including present status.
• View leaves balance, including current position and look-forward.

Send Notifications Automatically

• Approval/rejection of leave request.

• Request beyond rule boundaries.

Track Leave Entitlements

• View outstanding open leave requests (per shift, per employee, per crew, etc.).
• Manage leave taken vs. leave approved and leave time available

Have Staff Availability Information at Your Fingertips

• Availability by crew
• Availability by individual
• Maintain multiple schemes and rules for different employee groups.

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User Function

Employee Enter a leave request

Cancel a leave request
Appeal a declined request
View outstanding leave requests, including current status
View leave balance, including current position and look forward
View work schedule based on shift and holiday schedule.
View personal details.
Supervisor View outstanding open leave requests per shift, per employee, per crew etc.
Approve or deny leave employees' requests.
View staff availability. i.e., view combined work schedules and leave requests.
Manage leave taken vs. approved and available to be taken (per employee, crew, etc.)
Delegate approval or denial of requests.
System Administrator Calculate leave balance, combining leave accrual rules, leave consumption rules and
transactions from the hours entered in the system.
Notify interested parties if rule boundaries (leave consumption rules) have been
breached, or when changes in leave requests have been made, using dbNewsT, an
optional add-on.
Re-format look and feel of Web data entry and review pages to suit company
requirements.

Appraisal modules

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 KRA based
 Options to define individual employee KRAs
 Self appraisal option for each employee
 Work flow based appraisal system

Appraisal & Key Result Areas

Business Challenge

• Employee Performance Appraisals involve a lot of paperwork.

• Maintaining confidentiality of information is difficult.
• Collated historical data is unavailable for future reference
• Isolated information silos.

Benefits

• Security issues are addressed.

• Historical data is available for future reference.
• Centrally maintained work log.
• Easy movement of documents.

• Integrated module.

Competency based appraisal

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The Competency Based Performance Management System

A system for effective performance Competencies or talents are the foundation for people to
achieve superior performance in any job. Few organizations, based on research and experience,
have a performance
Management system that contains all the elements necessary for a highly
Productive and motivated workforce management starts with the identification of critical
Positions, agreement on the top hard and soft skills required for those positions and then
Provides the hiring, promotion, training and evaluation practices necessary to put the
Right people in the right job.

• Provide On-Going Feedback, Coaching, Evaluation, Recognition

• Identify Core Positions within the Organization

• Identify Key Soft Skills & Competencies for the Positions

• Assess Current Skill/Competency Levels of Incumbents and Candidates with Feedback

Mechanisms

• Provide Training & Development in the Necessary Competencies

• Conduct Behavioral Interviewing – the Best Predictors of Future Performance

• Reflect the Competencies Required in the Performance Appraisal

• Establish Competency Performance Expectations for Incumbents

• Option to define level / position/ function based competencies for managerial

effectiveness

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• Self appraisal option for each employee

• Work flow based appraisal of managerial effectiveness

360 degree based appraisal

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In human resources or industrial/organizational psychology, 360-degree feedback, also known as
"multi-rater feedback," "outsource feedback," or "multisource assessment," is feedback that
comes from all around an employee. "360" refers to the 360 degrees in a circle, with an
individual figuratively in the center of the circle. Feedback is provided by subordinates, peers,
and supervisors. It also includes a self-assessment and, in some cases, feedback from external
sources such as customers and suppliers or other interested stakeholders. It may be contrasted
with "upward feedback," where managers are given feedback by their direct reports, or a
"traditional performance appraisal," where the employees are most often reviewed only by their
managers.

The results from 360-degree feedback are often used by the person receiving the feedback to plan
their training and development. Results are also used by some organizations in making
administrative decisions, such as pay or promotion. When this is the case, the 360 assessment is
for evaluation purposes, and is sometimes called a "360-degree review." However, there is a great
deal of controversy as to whether 360-degree feedback should be used exclusively for
development purposes, or should be used for appraisal purposes as well (Waldman et al., 1998).
There is also controversy regarding whether 360-degree feedback improves employee
performance, and it has even been suggested that it may decrease shareholder value .

• Configurable managerial attributes for evaluation

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• Options to define type of questions and rating for each attribute

• Option to define appraisal period and set of managers authorized for this evaluation
• Work flow based appraisal – both for internal and external appraisers

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 Five Steps to a Human Resources Software
Technology System

Interested in a game plan for finding a Human Resources Software Technology system that fits
your needs, budget, and company growth? These five steps will help you select a Human
Resources Software Technology system.

1. Determine your Human Resources technology needs.

2. Find the Human Resources software system vendors who match your needs.

3. Set up Human Resources Software Technology system demonstrations.

4. Research your short list of potential Human Resources Software Technology systems.

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 5. Select your Human Resources Software Technology system and obtain approval.

• Determine Your Human Resources Technology Needs

Before you begin the process of setting up demonstrations and evaluating systems, you need to
have a good idea of exactly what you need a system to do for you. This is the most important step
of the Human Resources Software Technology system selection process. The more detailed you
are with this step, the more likely you are to find a system that matches your unique needs.

Ask yourself the following questions to start the process of determining needs:

• If you were going to create your own HR technology system, what capabilities would it
have?
• Exactly what reports would you need?
• What data do you need to track?
• Involve other departments such as payroll, training, and risk management to determine
their needs from the system.
• What capabilities would a system need to have to assist with meeting corporate HR
goals?
• Determine your desired type of platform. Will you host the software internally or have
the software company host it for you?
• How much are you are able to spend on a system at one time or per year?/li]
• Will you change your payroll system, as well, or will you need an interface between your
new HR system and your existing payroll product?
• Are there any other systems that will need to interface with the Human Resources
Software Technology system, such as time clocks or other HR systems?

Now that you have created a detailed needs list for your Human Resources Software Technology
system, create an Excel vendor score sheet for the products you will review. Down the left side of
the score sheet, list your HR system needs. Across the top add the HR technology vendor names.
These systems will appear similar and you may forget which product offered which feature
without this score sheet. This process will make the decision step much easier.

• Find the Human Resources Software System Vendors who Match Your Needs

This step is not as easy as it might appear because of the proliferation of Human Resources
Technology Software systems. If you are looking for hosted or subscription HR software
applications with payroll: search using Google, Yahoo or another search engine. Then, look at a
number of vendor websites. With each individual product website, you want to find a feature list
to see how many of your basic needs it appears to meet. You also want to ask other HR
professionals, in your industry, which systems they use and if they would recommend those
systems.

There is an easier way. Search Google, Yahoo or another search engine for HRIS, HRMS or HR
software comparison websites and you will find a number of sites dedicated to making this

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selection process easier. Check out several comparison sites, as these websites vary tremendously
in capabilities and features.

Using the score sheet described earlier, at this point, you should have a list of seven or eight
unique vendors. Call each vendor to make sure that each meets your most important needs and
budget range. With a single phone call you should be able to get a broad price range and learn
whether they offer hosted Human Resources Technology Software systems, purchased Human
Resources Technology Software systems or both options.

• Set Up Human Resources Software Technology System Demonstrations

Now that you have a detailed list of needs, your spreadsheet, and a list of vendors, it’s time to set
up the demos. Involve other staff from different departments where feasible.

With each demo, it’s important to realize you are the prospective customer, thus, you are in
control of the demo. Make sure the person doing the demo shows you every capability you have
outlined in your list of needs and on your spreadsheet. If you have a particular report you have to
have, ensure the sales person shows you that exact report or shows you how that report is created.

• Research Your Short List of Potential Human Resources Software Technology

Systems

After the demos, you will likely have your decision narrowed down to two or three systems. At
this point you want to research these companies. Your research should include checking
references, determining how long the company has been in business, their financial standing and
the number of Human Resources Software Technology system installations they currently have.

• Select Your Human Resources Software Technology System and Obtain Approval

Your decision should be easy, at this point, based on all the work you put in at the front end of the
Human Resources Software Technology system selection process. Between your needs, your
spreadsheet results, your research, and the system prices, make your best decision.

Gaining management approval, however, might be tricky. Cost justifying an HR technology

system is not the easiest process. You will have to sell the value and the benefit of a Human
Resources Software Technology system. You’ll need to show how the system will help meet
organizational goals.

Part of the reason you involved other departments in the needs assessment step is that a system
that benefits multiple departments may show greater value than a system that benefits a single
department. Additionally, their early involvement garnered you the support you need when you

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seek approval for your selected system. So will the spreadsheet you used to assess potential
Human Resources Software Technology systems.

Security for HR records - human resources

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A combination of written policy and effective use of your system's security features is needed to
manage issues of data integrity and privacy.

Because employee records are increasingly maintained in computer files, the traditional
recordkeeping policies and practices need to be reviewed and updated in light of these
technological times. Often more complete than paper records, computer records are full of
information that needs to be protected from inaccurate actions as well as from unwarranted use.
Three areas, in particular, need to be re-examined: employee right to privacy, management
information and legal restrictions.

Employee right to privacy. An electronic system makes it easier to produce lists, combine data
and share information. These very qualifies can contribute to a breach of privacy. What
constitutes confidential information should be defined in a company privacy policy. For example,
some employees may prefer that their personal addresses and telephone numbers not be published
on a list. Medical information, for instance, should always be carefully protected.

Management information. Businesses generally want to be close-mouthed about their affairs

because of competition and actions management is considering. A primary goal of automation is
the ability to produce better management information, but safeguards should exist to protect both
the data and ability to produce reports.

Legal restrictions. The type of data that is considered confidential varies from state to state; the
HR department should have a current list of the state requirements for employee record-keeping.
Safeguards for data entry and use of the information can be handled by written policy and
security.

SYSTEM SECURITY

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Security is a series of electronic "doors" a user must unlock to retrieve data and execute
functions. The first line of protection is physical access to the computer. If you are on a network
system, have the MIS staff describe log-on procedures and explain the level of protection
provided.

Even a single-user computer needs to be protected: Use the lock on the hard drive, lock your
office, and use a password. Even if you are the only user, set up a password that is not obvious to
all (for instance, don't use your middle name) and change it on a regular basis. The password
should be on file with the systems department or the controller.

Everyone should use a screen-saver program to prevent the casual browser from viewing the
merit program or the new organization chart. Purchase a screen-saver program that allows the end
user to set up keystrokes that bring back the screen rather than a program that responds to the
touch of any key.

The second set of "doors" is within the HR system itself starting with passwords for log-in. All
HRIS packages come with security. The question is how powerful is it? HRIS security features
can range from simple to robust. HR applications such as applicant tracking and training will
have less security because the information is generally not considered sensitive. Succession
planning, on the other hand, is usually designed with powerful security because of the extreme
confidentiality of the data.

Before developing security procedures, be sure you completely understand the capabilities of
your system. Four questions will help you understand how the computer security works: 1. How
does the system control access to records?

Answer example: Person can access all departments except for the Executive Office.

2. How does the system control access to specific data? Is there protection for all fields or only
some fields?

Answer example: Only the HR manager is allowed to see salary data for level 12 and above.

3. How does the system control who can manipulate the data?

Answer example: Only the personnel assistant enters new hires, or, the HR director can see
everything but change nothing.

4. How does security extend to reporting?

Example: If the training manager, who does not have access to executive salary data, runs a
training report by job and pay level, what will result?

These questions get at the fundamental concepts behind system security--records, data and
actions. Restricting access to groups of records can be done by company level, by department or
by job group. If the system has such capability, it is possible to allow line managers access to
their department's data.

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Some PC systems restrict access to screens, but not to the data items on the screen. Other vendors
restrict access to some but not all data. What actions a user can take is described by the View
Only or View and Update features. The term View Only is used to indicate a user who does not
have the privilege of entering or changing records. The power to change a record should be only
with someone who is fully trained on the system and in HR practices. Accessing and printing
standard reports and creating custom reports is yet another set of security characteristics.

Whether electronic or paper, employee files deserve to be treated with great care. Establishing
security and end-user privileges calls for a balance of incorporating HR policy, system
knowledge and day-to-day operations. Following these steps should establish security and policy.

SUMMARY OF STEPS

1. Review privacy and confidentiality policy to ensure that it is current with how records are
maintained. Brief all new staff on handling of employee information.

2. Ask how security works on the network or what you can do to protect a single-user system.

3. Learn how security works in the HR system. The vendor documentation is, of course, the place
to start.

4. Examine how you want information to be used in your department and throughout the
organization.

5. Make decisions about system security and privileges. The accompanying chart will help you to
think through and record these decisions.

6. Work with your systems department, vendor and system administrator to maximize use of your
system's security features.

7. Document both policies and data entry practices; safeguard any written record of IDs
and security set-up.

5 Top HR Modules for ERP Systems

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A growing number of businesses are adopting ERP (enterprise resource planning) systems in
order to give their department’s accurate and accessible shared data. HR isn't being left out of the
loop. In fact, most major ERP vendors now offer their customers HR modules that help automate
an array of tasks while generating crucial data for enterprise planning and optimization. Here's a
look at five top solutions, based on features and usability:

1. Infor HCM (Human Capital Management):

Designed for use with

Infor's ERP, Infor HCM is a
Web-enabled offering that
brings a variety of
capabilities to the table —
perhaps even more features
than the average business
needs. The module has
support for multiple
languages, currencies, tax definitions, benefits, security configurations and platforms. It consists
of three basic components:

• Resource Management: Features here include benefits administration, payroll, FSAs

(flexible spending accounts) and compensation.
• Work-Force Management: This component aims to help HR departments cost-
effectively handle complex work-force management challenges. It includes scheduling,
time and attendance, absence handling and performance support.
• Talent Management: This part of the module provides work-force development
capabilities that are focused on recruitment, learning, employee performance and
competency management. Succession-planning capabilities are also provided.

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Verdict: This is a well-rounded, highly capable module that's suitable for just about any business.
Infor HCM takes advantage of Web technology to provide an ERP HR module that can be
instantly updated and easily scaled.

2. Sage Accpac HRMS (Human Resource Management System):

As a part of Sage Software Inc.'s Sage Pro ERP, Sage Accpac HRMS provides support for a
variety of HR tasks, including benefits, training, recruiting and compliance. The module offers a
flexible design that lets users select their own database platform, including SQL or MSDE
(Microsoft Desktop Engine).

Sage Accpac HRMS also includes powerful reporting and analysis tools that provide customized
insight on almost any HR issue. Hundreds of standard report templates are included. An
integrated database is designed to feed a steady flow of information to managers and staff.

Verdict: This solution is a good choice that gives users a voice in its design and operation. It’s
tailored for midsize manufacturing businesses.

3. SAP ERP HCM:

38
SAP AG's highly regarded ERP offers SAP ERP HCM, a versatile and extremely scalable HR
module. The solution is designed to give companies in virtually all industries a full selection of
HR tools.

The software can automate virtually all fundamental, and most advanced, HR processes,
including employee administration, payroll and reporting. The product supports compliance with
both global and local regulations. Other features include talent management, performance
measurements and real-time insight into just about any HR trend.

Verdict: SAP ERP Human Capital Management sets a goal to which other ERP HR module
vendors can only aspire. On the other hand, the product is overkill for most SMBs (small- to
medium-sized businesses). In any event, it's truly the Rolls-Royce of ERP HR modules.

4. Oracle HRMS:

39
 Oracle Corp.'s HRMS is designed to automate practically every HR-department function. The
company described its mission as, "The complete recruit-to-retire process." A single integrated
data model aims to supply a fast, immediate and accurate view of HR-related activities, including
recruiting, payroll, benefits, performance management, learning, compensation, time
management and real-time analytics.

Oracle's HR product is comparable in many ways to SAP's module in scope and breadth, although
Oracle advocates would claim that their favorite software is more flexible and easier to use.

Verdict: Oracle HRMS is thorough and highly capable, but not suitable for smaller businesses.

5. Microsoft Axapta Human Resource Management III:

Compatible with the Microsoft Dynamics AX ERP and building on HR support provided by
Axapta versions I and II, this module supplies features that support the career development of
individual employees — a capability overlooked by many other HR modules.

The software aims to help businesses create professional development plans focused on
employee's goals and skills. Features include a "competence framework" with a development
process that incorporates personal interviews, training curriculums, skills matching, skill-gap
analysis and other components. The software's various processes are collaborative and allow
follow-up from employees and managers to improve dialogue between the two groups.

Verdict: Microsoft Corp. isn't exactly renowned for its innovative application software, but
Microsoft Axapta Human Resource Management III is a pleasing exception to the rule.

IMPLEMENTATION OF HRIS

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After purchasing your new HRIS software it is now time to implement your new system. This
step could either be a “Step Two” in the purchasing of a new HRIS system or it could be the
monkey wrench in the process. Common misconceptions and unclear timelines can greatly
damage and slow the implementation process. It is important that a clear step-by-step process be
outlined, a sturdy timeline be in place and common issues that normally arise, be discussed and
prevented before the HRIS is implemented.

GENERAL TIMELINE FOR IMPLEMENTATION

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A common misconception of implementing an HRIS is the time it takes to get your system up and
running. This time includes installing the system, preparing and converting data, training users on
how the system is used and trouble shooting to ensure users can be off and running after the
system is installed. A typical install usually takes an average of six to eight weeks with a
technician spending six to eight hours a day, one day a week. It is important that a timeline be
established before the process begins and all involved in the process follows the timeline as
closely as possible.

WHAT IS THE IMPLEMENTATION PROCESS?

a. Discovery:

In the discovery session, a project manager, consultant and your team drill-down on the
information gathered during the Business Process Audit and discuss in detail your
requirements, structure and the steps necessary to successfully integrate the solution into your
environment. This is also the start of creating the timeline and assigning responsible parties
for each step of the project. After the meeting, a finished timeline with dates is forwarded for
your approval. It is important that these dates be carefully reviewed, as future changes can
cause delays.

b. Installation:

Depending on the solution, installation is performed by your IT department, consultant or

both. Some of the products may require skill sets that might require a consultant to do the
installation.

c. Data Conversion:

Implementation of relevant HRMS data from your current systems. After core data is
implemented, setup and configuration continues to complete this phase.

d. Review and Testing:

An important step in implementation is confirming that the information is accurate and

business rules are working properly.

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 e. Training:

Training sessions should begin with an overview of the system. Through the knowledge
gained during setup and review, time is needed to refine the steps required to use the system
to match your internal processes. Training should be focused on the core aspects that
prompted the purchase. During this entire process, be sure that your consultant records their
observations regarding the need for additional training and implementation assistance.

f. Going Live:

This is the day your investment begins to pay dividends.

g. Post Implementation Review:

Some time after the go-live, a review of how the system is being used is
necessary. Often, valuable functions are not being used most effectively or not at all. At this
point, be sure your consultant provides guidance and remedial training to ensure that you
obtain the full value from your investment.

THINGS THAT CAN TYPICALY GO WRONG DURING AN INSTAL

• Old system data is in an unstable format

• Old system data can not be found
• Unclear expectations
• Prep work has not been done or is incomplete

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 HOW TO PREVENT ISSUES FROM ARISING

Have a clear timeline –

Realize it is going to take as much time to implement the system as it is going to take to prepare
for implementation. Users and consultants should be working as a team to ensure the deadlines
that were set before implementation are being met and followed.

Team effort-

Users should be reading the manual at each step of the implementation to ensure all questions are
being answered before they become an issue. Data that needs to be transferred from the old
system to the new should be accessible and ready for the consultant. In most cases, this data is
entered into the new system by the users, so be aware that this can take some time.

Clear expectations –

Understand that the new system is not the old system. It is going to get some getting used to and
some training for users to familiarize themselves with using the new system. The new system
should not be used the way the old system was, this defeats the purpose of the new system.

44
 THE IMPACT OF IMPLEMENTING AN HRIS

Integrated HR Information Systems (HRIS) have a profound effect on firms that implement them.
Most often these firms are replacing several related systems, such as a personnel database, payroll
system and benefits system, with one HRIS that does it all. Many people focus on the improved
reporting and processing that will be realized from the new system, and those are the reasons
most firms choose to implement a HRIS. But what many people don’t focus on is that the new
HRIS will most likely affect the company much more deeply – it will challenge the operating
structure and principles of all the HR-related departments. An integrated HRIS results is a
drastically different environment than a cluster of related but separate systems. The core concept
of a centralized data store inherent with an HRIS demands integrated work processes for
consistently managing that store. The two attributes – centralized data storage and integrated
work processes – will affect the company in ways most managers don’t expect. EVALUATING

45
AND PREPARING FOR A HRIS Many companies go through a process of comparing and
evaluating several HRIS packages using a team of analysts or managers from the various
departments affected – HR, Payroll, Benefits, Employee Relations, Training and so on. As this
team prepares its evaluation criteria and reviews HRIS features, much is learned about the goals
and values of the various departments. The HR department is looking for improved reporting of
employee data, Payroll is concerned with the system’s paycheck calculations and regulatory
reporting, while Benefits may be looking for a more streamlined enrollment process. As this team
drives deeper into the selection criteria, the members learn more about each other and may start to
see the emergence of some really messy business processes. It can be a bittersweet process.

The hiring process is a good example. As a person is recruited, hired and paid each department
may have its own specialized system and process for managing the employee data. As the HRIS
evaluation team discovers redundant processing and data storage, its members start to see ways to
make the process more efficient by aligning their part of the hiring process with the requirements
of the other departments. The team members are excited to find a better way to get the work done,
but scared by the ramifications of closer ties to other departments. They think:” If we improve the
efficiency of the process (have HR enter the W-4 at the time of hire), we won’t need as many
people in our department (we won’t need to key W-4s anymore), and we might lose control of
some piece of data that is critical to our business function (how do we know that HR will key the
W-4 correctly?)”. As the team evaluates an HRIS software package, it begins to get a better grasp
on what the entire company’s business processes are, and therefore what the company might
require in an HRIS.

The team will most likely find that none of the packages are an exact fit and that substantial
effort is required to modify or integrate the chosen HRIS. Or if not enough due diligence and
research have been done, the team may be facing this effort and not be aware of it. This gap in
planning will show itself later in the implementation phase when the project team realizes there
are not enough resources – time, people and money – to implement the HRIS. Perhaps the most
critical results of the HRIS evaluation process are that the evaluation team set correct
expectations for the project and gain executive management commitment. With correct, or at least
realistic expectations and an executive management team that seriously supports the team’s
efforts, an HRIS implementation project has a much greater chance to succeed.

46
Most often the HRIS evaluation team members spend most of their efforts building selection
criteria and choosing an HRIS, instead of setting expectations and building executive support.

THE HRIS IMPLEMENTATION PROJECT Configuring the HRIS There are three primary
activities in an HRIS implementation – configuring the HRIS for the firm’s business processes
and policies, interfacing data with other systems and converting historical data into the
HRIS, and preparing the organization for the HRIS. An HRIS comes with built-in processes for
most HR activities, but firms will need to customize the system to process according to their
specific needs. For example, every HRIS supports the process of benefits open enrollment, but
the system does not come delivered with a firm’s specific benefit providers and eligibility rules.
Customizing the HRIS for this typically does not involve programming; the common activity is to
enter specific data into control tables that then direct how the HRIS operates. The customizing or
configuration tasks then become a process of understanding the firm’s business processes well
enough to encode that logic into the HRIS. This mapping of business processes and policies into
system control tables requires people who understand both the business process and the HRIS –
typically the existing IT support and HR business analysts. Due to the large amount of work, the
HRIS project team usually needs these analysts fully dedicated to the project, requiring the
”home” departments to fill the gaps in their absence. Having partially dedicated team members
may cause tension since the team members have to maintain responsibilities at the home
department while also fulfilling responsibilities on the project team. Either way, back-filling
resources becomes a big issue if not planned for during the evaluation stage. Firms may find that
the internal resource people assigned to the project do not have the skills or capabilities needed
for the job. Sometimes training can resolve this, but other times the people lack basic analytical
skills required for the implementation.

47
One of the key requirements for a person to be successful on an HRIS implementation project is
that he/she have excellent analysis skills. The most analytical people in HR and IT should be
assigned to the project, or else the company should rely on external resources (i.e. contractors or
consultants). The project can get done this way – but the more an implementation team relies on
external resources the more difficult it will be for the company to become self-sufficient in
ongoing HRIS support, maintenance, and operations. Many HRIS implementations include, to
one degree or another, business process reengineering. As a firm documents, investigates, and
discovers its true business processes, it’s natural that the firms also take time to improve them, or
at least integrate the processes across departments. The integrated nature of most HRIS packages
drives this activity. When a process is reengineered or integrated, once-independent departments
become much more dependent on each other. That dependency can increase tensions on the
project team as representatives from those departments learn to trust others to do their part of the
process. Or, once the project team members become comfortable with the processes they have
designed, they may have a hard time selling those changes back to their departments. Most HRIS
packages don’t handle exception processing very well. As business processes are designed, the
project team customizes the HRIS around those processes. Users will most likely find that
exception cases require significant manual thought or labor to process – since the exception does
not fit into the business process as implemented in the HRIS. HRIS project team analysts will
walk a fine line between generalization of the process to fit exceptions vs. a more narrowed
implementation of the process to enforce data integrity and accurate application of HR policy.

This is a great time to enforce some standards and clean-up ”special deals” – but HR managers
and policymakers must be willing to support these efforts, and to help implement them. Finally,
as the project team analysts dig into the current business processes, they may find that the HR
users, and sometimes managers, don’t really understand or know the processes well. Users may
know what is done, but not why it is done. Knowing the why part is critical to getting the most

48
out of your HRIS implementation. In most every HRIS there are two or three technical methods
of implementing any given requirement – knowing why something is done in a business process
helps ensure the project team analysts select the best method of implementing it in the HRIS.
Linking the HRIS with Other Systems Most HRIS project teams have a number of people
assigned to converting historical data from the existing HR databases into the HRIS, as well as
for interfacing the HRIS with other systems that rely on HR data. As this group starts mapping
historical data to the system for conversion, most often group members will find (particularly
when combining data from several existing systems to go into one HRIS) that the existing HR
data contains a significant amount of invalid, incomplete, or contradictory data.

As the HRIS was configured for, reengineered or streamlined business processes the existing
employee data may not fit well into the system. The HRIS will demand more complete and
accurate employee data. Making sense of these data conversion problems is a skill that falls to
HR analysts, not the programmers writing data-conversion routines. Conversion and interfacing
are not solely technical activities – user consultation and input are required. Many HRIS project
teams discover these requirements too late, thus increasing the demand for time from HR analysts
on the project team – time that the analysts most likely do not have. If the firm has a data
warehouse, the HRIS data will need to be mapped to it. If the data model in the warehouse is
based on the legacy HR database, the two data models may not be compatible. A lot of effort can
be spent mapping the HRIS to an existing data warehouse. Or if the HRIS vendor has its own data
warehouse application, the project team might be tempted to use it, but they’ll still have to
contend with converting existing historical HR data into the warehouse. Either way, HRIS project
teams spend more effort than planned on this issue – the details can get very tedious and time
consuming. Replacing HR systems involves any area of the company that reads or relies on
employee data. System implementation may highlight employee data privacy issues, or increase
the scope of interfacing once the project team realizes just how many systems read employee data
from the current HR-related databases. Preparing the Organization Many times it is easier for
project teams to focus on technical aspects of the implementation, which is ineffective. For
example, configuring the HRIS to correctly assign resident tax codes based on the employee’s
address is easier than getting HR, benefits, payroll, and recruiting to buy into and implement a
reengineered hiring process.

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The HRIS project team must track progress not only on the technical aspects of implementing
the HRIS, but also on the softer side of managing the organization as a whole to accept the
business processes that come with the HRIS. Companies typically underestimate this change-
management effort. From the very beginning there must be a focus on preparing the organization
and the employees for the HRIS.

A HRIS, with more integrated work processes, tends to pull related departments together. Some
firms recognize this as they go through the implementation process, and also implement a
organizational structure with the HRIS roll-out. For example, HR and Payroll may have reported
to separate areas of the company, and parts of HR business processes were scattered throughout
various departments. But as a HRIS is implemented, the previous organizations are transformed
to report to a single authority, and a shared-services group is established to perform the integrated
work processes that were once scattered. This is a common, but often unexpected, result of HRIS
implementations. During the implementation phase, firms should also be determining what their
support model will look like – what kind of organization will be required to support this HRIS?
Those who study this task in detail will realize they need cross-functional support teams –
containing programmers (ABAP), configuration experts, and business analysts – to successfully
support the HRIS. But this integrated support team does not fit well into the vertical departments
in most companies today.

Finding a way to implement this cross-functional team is a critical success factor for the HRIS’
ongoing operation. All of the items mentioned so far force HR managers to become involved in
what is usually perceived as an IT project. They may be accustomed to pushing responsibility for
such projects onto IT managers, but implementing an integrated HRIS requires HR manager
participation and active involvement in scoping, implementation, cutover, resourcing and
management. LIVING WITH THE HRIS Changes in the HR User Community An integrated
HRIS leads to more integrated reporting of employee data, which can lead to efforts that benefit
the company.

Better reporting of employee costs, skills and requirements, time-keeping and recording, etc. give
senior managers information that can be used to improve the application of HR policy or to cut
costs (i.e. reducing time-card fraud, highlighting wasteful compensation practices, etc.).

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Most integrated HRIS packages are very sophisticated in the functionality and processes they
offer. Compared to legacy, or screen-based/code-based systems, the HRIS requires a more
analytical user. The user cannot simply be trained to put certain codes into certain fields -- he/she
must know the business process and how it relates to the HRIS. In most companies, a certain
portion of users will be able to make this jump to” analytical” thinking; others will not. The
resulting shakeout has to happen, and it is most often painful – either for the employees
themselves or for the HRIS supports organization. If a more centralized, integrated HR
organization doesn’t surface during the implementation period, the organization will tend to
evolve in that direction. An integrated, centralized HRIS tends to pull user departments together.
Using integrated work processes across departments that do not operate under a common
authority will highlight data and process ownership issues.

These issues in turn get pushed up to HR managers or executive management. Eventually, these
managers resolve the issues by increasing the integration of the departments to match the
processes. Either way it happens – at implementation or via evolution -- this level of

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organizational change is always difficult. Supporting the HRIS IT support analysts may be
accustomed to, and only skilled for, flat-file processing techniques. Most HRIS packages rely on
relational data models, higher-level programming languages, and interactive data management –
presenting technical requirements for which some IT analysts may not be ready.

The HRIS may have proprietary languages or facilities, requiring IT skills. Often these skills will
be in high demand, driving a premium rate of pay. Internal resources may opt to leave the
company for the higher pay, or they may demand higher pay at the company. The higher pay
might be outside the HR guidelines for fair salary. The resulting dilemma can create retention
problems. HR users – the analysts in HR, payroll and benefits – must take a more active role in
ongoing support and system changes. Since business rules are often coded into the HRIS instead
of resting in manual processes, the business analysts are necessarily drawn into this activity.
Some firms may push this “business rule” knowledge to their IT support analysts, or rely on
consultants who help with the implementation.

Although either of those scenarios can work, HR business analysts and managers have the most
to lose if the HRIS does not process transactions correctly. Placing HR analysts in system support
and change roles will help ensure that the HRIS processes transactions correctly.

Some companies depend too much on consulting firms or contractors to perform an

implementation. Many times this happens because the firm can pay a consultant to do precisely
what the firm wants to do, which is often easier than getting internal resources to do the same
thing. It takes some of the pain out of change management. This can lead to a continued
dependence on external resources and might be acceptable for firms that have historically relied
on external resources. For others it may generate substantial internal conflict in the way of higher
IT budgets or continued presence of non-employees in the HRIS support organization.
RECOMMENDATIONS FOR SUCCESS given all the things that often do go wrong with HRIS
implementations, what can be done to ensure a smooth transition? There is no one solution, no
grand secret for avoiding all the problems.

As with most successful efforts, a successful HRIS implementation requires participation and
commitment from all areas of the firm. The first area from which to gain commitment is the

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firm’s executive management – the sponsors of the project. Given the level of change such a
project will create, there will be areas that resist the implementation.

Support from executive management is invaluable for making sure business processes are
implemented effectively, for funding the project, and for ensuring appropriate staffing on the
project team. Without this support, the payoff of the HRIS will most likely be compromised, and
will cause disruptions in employee service. The executive managers should appoint a steering
committee containing stakeholders from all areas affected by the HRIS (payroll, benefits, HR, IT,
employee relations, etc).

This group should contain members who can ensure that their line managers have the necessary
directives and responsibilities for making the HRIS operational. The steering committee should
take an active role in resolving broad issues and taking corrective actions if the project gets off
course. One of the most important roles of the steering committee is that of “winning the HR
managers.”

The steering committee needs to ensure that managers fully understand the impact of a HRIS
system, that they are involved in the implementation, and that they support the project with a

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positive attitude towards change. This will not only set an example and guideline for each
committee member’s department, but also prepare the ground for dealing with change-
management issues. The steering committee should be responsible for appointing a project
manager or project management team, as well as assuring that the project is appropriately staffed.
The project manager should carry out team-building exercises for employees who will have to
work together, since many people who will be assigned to the team may not have experience
operating in such an environment.

The HR analysts and the technical analysts must learn how to work together to solve issues
neither group can solve alone – such as data conversion and interfacing. HR analysts will become
more technical, and technical analysts will learn more about HR. The project planning process
needs to include not only the technical tasks but also the processes and deadlines for change
management tasks. The project manager can get an indication of these issues early in the project
by comparing the goals of the different stakeholders involved and identifying all the
inconsistencies. For those HR analysts who are placed on the HRIS project team, their managers
need to be fully aware of the analyst roles in the project.

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Managers need to review and possibly redefine the roles before, during and after the
implementation. job descriptions may need to be prepared and managers need to brief employees
about any changes and additional responsibilities. Managers also must start back-filling the
positions left by the analysts to ensure their departments still run smoothly and the analysts are
not torn between working in their departments vs. working on the HRIS project. Not every person
will be able to make the transition to a HRIS.

Certain employees – payroll clerks, benefits analysts, IT support, and even managers -- may not
want anything to do with the HRIS and the processes that come with it. Instead of forcing them to
make the transition, it is often wiser to place them outside the HRIS-related organization in roles
appropriate for their skills.

A transition plan needs to be constructed, and the steering committee must accept the fact that
there will be some turnover. Likewise, employees who have demonstrated their interest and
ability to work with the system and who have gained substantial knowledge of it should be
offered an active system-support role together with a promotion. This should motivate other
employees to follow their colleagues’ paths and will discourage internal system experts leaving
the company for a higher-paying consulting job.

Training – technical and non-technical – must be identified and performed to help people make
the transition to working with the HRIS and the organization model. The training need to go
beyond screen-prints and mouse-clicking sequences to an explanation of how the process fits into
the organization, its relationship to other processes, and the execution steps in the process.
Employees will have to know the why as well as the how of the process. Formalized cross-
functional support teams are essential to the steady operation of the HRIS. Firms can be

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successful by patching together an informal organization of HR analysts and IT analysts, but that
loose-knit framework may not hold up to the continued demands of HRIS support. A formalized,
co-located team of HR and IT analysts will be most effective. Many firms also find it useful to
preserve the steering committee past HRIS implementation and into the productive life of the
HRIS. The steering committee is an excellent group to monitor the ongoing quality of HRIS
operations, manage relationships with the HRIS vendor, and clear the path for later HRIS
upgrades or enhancements.

It may take years for a firm to adjust to a HRIS. As it does, most will see that their organizational
structure will tend to reflect the HRIS structure. This is natural – managers for years have
organized their departments to fit the way work is done, and the organizational culture often
reflects that structure. When the way that work is done changes – and an HRIS will engender that
change – it’s natural for the organization to change as well.

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Barriers to the success of an
HRIS:

o Lack of management commitment

o Satisfaction with the status quo

o No or poorly done needs analysis

o Failure to include key people

o Failure to keep project team intact

o Politics / hidden agendas

o Failure to involve / consult significant groups

o Lack of communication

o Bad timing (time of year and duration

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 Critical Analysis

Although almost all HR managers understand the importance of HRIS, the general
perception is that the organization can do without its implantation. Hence only large
companies have started using HRIS to complement its HR activities.

But HRIS would be very critical for organizations in the near future. This is because
of a number of reasons.

• Large amount of data and information to be processed.

• Project based work environment.
• Employee empowerment.
• Increase of knowledge workers & associated information.
• Learning organization

The primary reason for delay in HRIS implementation in organizations is because of

the fear psychosis created by "technology" and "IT" in the minds of senior
management. They may not be very tech savvy and fear being left out.

But trends are changing for the better as more and more organizations realize the
importance of IT and technology. Major HRIS providers are concentrating on the small
and middle range organizations as well as large organizations for their products. They are
also coming up with very specific software modules, which would cater to any of their
HR needs. SAP and Peoplesoft provide HR modules within their business intelligence
software. Hence HRIS would soon be an integral part of HR activities in all organizatio

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 CONCLUSION

Tracker and Manager Your Most Valuable Asset - Your Employees.

Utilizing a Web-based platform allows you to streamline the entire HR lifecycle from recruitment
and training to payroll and benefits administration. Consolidating these processes into once
system allows small and medium sized businesses to proactively manage HR operations and
improve efficiency.

Most Web-based HRMS platforms offer much more than HR and employee benefits services.
Look for a solution that offers a wide range of service offerings including payroll, talent
management, applicant tracking, recruiting tools, pre-employment testing, background checks,
labor law resources and skills training. Robust and user-friendly reporting tools are also critical.

While employee access to a wide range of HR lifecycle services is helpful in streamlining HR

processes, it is extremely important to choose a Web-based HRMS platform that is easy to use.
Employees are less likely to embrace these services if they are too complex. Keep it simple.

Regardless of industry or size, an HRMS platform can help small and medium sized businesses
achieve unprecedented levels of efficiency and productivity and can offer your organization the
tools and services to stay competitive. This provides you an edge by enabling you to focus on
your core business.

The key to finding the right HRMS system is selecting an HR business solution that is secure,
well-supported, and equipped to help you reach your goals. With a centralized Web-based HRMS
platform to support your HR department, you have the ability to successfully track, manage, and
control your most valuable asset, your employees.

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 Bibliography

• And special thanks to Mr. Gauttam hettangde

(Chief Technology Officer) & Director of CBT
Infotech.

• Great Help from Mrs. Rita balachandran (Head of

faculty NIS Academy)

• Mr. Rajesh shukla (Project manager of CBT

Infotech Ltd.)

http://www.hrgopher.com
http://www.auxillium.com
http://www.hrms.com
http://www.hrfiles.com
http://www.people-trak.com
http://www.best-software.com
http://www.hradvantage.com
http://www.vpsoftware.com
http://www.cortdirections.com
http://www.nuviewinc.com
http://www.payrollandhr.com
http://www.spectrumhr.com/
http://www.absusa.com
http://www.ascentis.com
http://www.trak-it.com/
http://www.qqesttime.com
Google.com & Wikipideia.com

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