HRIS

Designing HRIS

Attique Ahmad
Introduction

• The design of any HRMS software system

requires both functional and technical
decisions
• These decisions should be predicated on the
uses to which the system will be put
Security Concerns

• System security addresses concerns are:

• System control and privacy
• System control addressed through audit trails
• In provincial and federal jurisdictions privacy is
a legislated right of persons whose personal
data resides on an HRMS
Analysis of Business Processes

• Too often systems are developed based

on existing requirements
• Automation of inefficient or unnecessary
work flows may simply produce the
wrong result more quickly
Business Processes

• How organization accomplishes its assigned

tasks
• EXAMPLE Payroll check writing (salaried)
Confirm that employee still working
Check rate of pay, withholding (taxes, insurance, retirement)
Check for any bonuses
Report taxable income to IRS
Send proper amount to Insurer
Send proper amount to IRS (Federal, Local, City)
Send proper amount to Retirement Fund
Write check for proper amount
Payroll Example

• Manual approach an obvious example of a

process meriting automation
– Structured
– Computer faster, more accurate
• Initial automation may involve independent
files
– Different files for employment, different retirement
funds, different tax agencies
– BPR can focus on better ways to store data, use
relational database capabilities for efficiency,
accuracy
Process Change Management
Al-Mashari (2001)

Strategic Planning

Change Management Continuous Process

Management

Project Management Technology Management

•Fragmented Process change •Integrated

through Software
•Functional-based •Process-oriented
•Inefficient •Standardized
•Costly •Customer-focused
•Slow •Competency-centered
Process Change Management

• Change Management
– Commitment, people, communication, interactions
• Project Management
– Team formation, progress measurement
• Strategic Management
– Process redesign, measurement, continuous improvement
• Continuous Process Management
– Performance gap analysis, change justification
• Technology Management
– Software selection, technical analysis & design, installation
BPR and phases

• Analysis Phase
– identify what tasks are being done
– determine why those tasks are being done
– analyze how they are being done
– identify who is doing them
• Problem-Solving Phase
– determine what should be done and why it should
– determine how tasks should be done
– determine who should do the tasks, along with
where and when they should be done
Conducting Reengineering

• Develop a strategy, scope for the re-

engineering plan
• ensure that management at all levels are
convinced of the value of project, and are
committed to supporting it;
• Chart process flows, and analyse current high
or low level tasks;
• Consider what supporting application software
you will require;
• Conduct Value for Money Audits to ensure that
you can justify your project in dollars and cents
terms
Conducting Reengineering (Cont….)

• Develop benchmarks for the projects to be

used as standards to be met (or exceeded) by
the project
• Develop new effective and efficient tasks and
processes;
• Prepare an implementation plan;
• Implement the plan; and,
• Develop a plan for maintaining the system.
Risks in BPR

• Advocates report failure rates of 50% to 70%

• Sutcliffe [1999] reviewed difficulties
– Employee resistance to change
– Inadequate attention to employee concerns
– Inappropriate staffing
– Inadequate tools
– Mismatch of strategies & goals
– Lack of oversight
– Failure of leadership commitment
Impact on ERP

• If poor BPR is conducted, or if vendor

system adopted without consideration of
organizational requirements:
– Will discard processes in which organization
has developed competitive advantage
– Even when BPR beneficial, there will be a
transition period where employee
performance degrades while learning new
system
Benchmarking

• Compare an organization’s methods

with peer groups
– Identify what practices lead to superior
performance
– Usually part of BPR
BPR Options

• Clean Slate
– Reengineer everything from scratch
• Technology Enabled
(constrained reengineering; concurrent
transformation)
– First select system (vendor)
– Second reengineer
 Comparison: Clean Slate vs.
Technology Enabled
Clean Slate advantages Technology Enabled advantages

Not constrained by tool Focus on ERP best practices

Not limited by best practices Tools help structure reengineering

database
Retain competitive advantages Tools focus reengineering

Not subject to vendor changes Process bounded, thus easier

May be only way to implement Know design is feasible

advanced technology
May have unique features where Greater likelihood that cost, time
best practices inappropriate objectives met
Korea Telecom 2007 Software
Olson: ERP3 available
BPR Outcome

• Once one has decided that the human

resources processes in the
organization are the “right ones to
automate” one can then turn one’s
attention to designing the HRIS to
automate the processes in the “right
way”.
Steps in Designing

• design a database with the capacity to handle the

relevant populations
• label each field and each data element to create a
complete data dictionary.
• create tables of values which can be drawn on by
data fields as appropriate.
• establish data relationships, including all algorithms
and routines, to optimize editing and validation of
fields.
• create menus and screens to assist users in
navigating through the HRIS.
Steps in Designing

• create operator messages that specify action

options.
• build in error-checking routines.
• build in data security, including audit trails.
• define standard reports.
• include a tutorial module to assist new users.
Input Design Considerations

• Components in the input subsystem are

responsible for bringing both data and
instructions into the information system
• Data entry options - data input method used
affects
– Asset safeguarding
– data integrity
– System effectiveness
– system efficiency
 A
Sample
Data
Entry
Screen
• Input origination controls (authorization)
• Good source document design - important to achieve
– Asset safeguarding
– Data integrity
– System effectiveness
– System efficiency
• Quality screen design is important to minimizing input
errors.
• Use of check digit
• Batching of Data
 Incorrect Data
Error File
reminders

Input
Validation
Valid Data

Error List Data Validation Process

Output Design Considerations

• Used to determine provision of content

of data to the users, the way the data
will be formatted and presented and the
ways of routing the data to the users.
• Violation of data privacy resulting in
litigation
• Goodwill of the organization at risk
• Initiation of other fraudulent problems
Batch Outputs

• Used to ensure accurate, complete and timely output.

Controls are:
– Securing storage of any special stationary
– Ensuring authorized access to output programs
– Ensuring no changes in contents of output during
spooling
– Timely collection of reports ensuring no loss
– Reviewing reports
– Correct and timely distribution
– Retention of output/print files
– Proper shredding
Online Outputs

• Ensuring correct security

• Ensuring data integrity
• Ensuring correct distribution
• Ensuring deletion
Implementation

• Consulting
• Planning
• Procedures
• Deployment
• Conversion
• Testing
• Hands on Training
• Maintenance
What Constitutes the Right HRIS
Consultant?

• HRMS consultant
– Any professional who offers human resource and
IS advice to clients for a fee
• Inexperienced users face these issues
– Cannot find a consultant they can afford
– Engage an unqualified consultant
– Fail to get proper references
– Use a consultant the wrong way
– Do not define the terms of engagement
– Do not get value for their money
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When to Use a Consultant

• Hire a consultant when the organization needs

– Specialized experience, skill, or other expertise
– Independent, unbiased, and objective options
– Someone to help deal with potential or
organizational problems
– Limited internal staff must remain available for
other projects
– Specialized staff training

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Types of Consultants

• A consultant to serve as project leader

• Technical expertise
• Additional staff resources
• A consultant as a training instructor
• Operational vs. advisory
• Process vs. functional
• Academic vs. commercial
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Types of Consultants (cont’d)

• Operational consultant
– Executing the task
– Act as an extension of the client’s staff
• Advisory consultant
– Teaching clients how to perform the work
and manage the system
– Inform and support in-house management
– Enables management to make the decision

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Types of Consultants (cont’d)

• Process consultant
– A generalist or planner
– Provide useful guidance in organizing the
project or intervening in conflict resolution
• Functional consultant
– Familiar with the practical aspects
– Help planning, developing, and
implementation
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Types of Consultants (cont’d)

• Academic consultant
– When theory or context is as important as
practice or content
• Commercial consultant
– Have hands-on experience
– Industry specific

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Evaluating Potential Consultants

• Selecting the right consultant

– Technical and human resource knowledge
– Experience with similar projects
– Effective communication skills
– Independence, not tied to any vendor
– Sufficient staff resources
– Accessibility
– Good references
– Affordability
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 The Consulting Process

CONSULTANT

Marketing and Request for Initial Personal

Analysis of Needs/ Development of
Business Services/ Request Contact/ Face-to-
Problem Definition Specific Proposal
Development for Proposal Face Meeting

Provision of
SATISFIED Reporting and Contract/ Letter of Modification and
Services/
CLIENT Project Review Agreement Negotiation
Deliverables

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