HUMAN RESOURCE INFORMATION MANAGEMENT

SYSTEM

DEFINITIONA computerized skills inventory

for: •Acquiring•Storing•Analyzing and•Controlling the flow of

information throughout an organization.

DEFINITIONThe collection of information's on aspects of work life as diverse as:

• Salary• Payroll• Compensation• Leave• Accidents• Superannuation• Employee Benefits

DEFINITION

•The systems and processes at the intersection between Human Resource Management (HRM) and Information Technology

PURPOSE•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

ACTIVITIES IN HRIMS

• Payroll• Work Time• Benefits Administration• HR management Information system• Recruiting• Training/Learning Management System• Performance Record

HRIMS MODULESThe payroll module automates the pay process by gathering data on:

•Employee time and attendance•Calculating various deductions

and taxes•Generating periodic pay cheques

and employee tax reports

HRIMS MODULES•The work time system module gathers standardized time and work related efforts.

•The module provides broad flexibility in data collection methods, labor distribution capabilities and data analysis features.

The administration module provides a system for organizations to administer and track employee participation in benefits programs, typically encompasses:

• Insurance•Compensation•Profit sharing and retirement

HRIMS MODULES

The HR management module covers from application to retirement. The system records:

• Basic demographics and Address Data,

• Selection• Training and Development, • Capabilities and Skills Management• Compensation Planning Records • and Other related activities

HRIMS MODULES

• Talent Management systems encompass:

• Analyzing personnel usage within an organization

• Identifying potential applicants• Recruiting through company-facing

listings• Recruiting through online recruiting

sites or publications that market to both recruiters and applicants.

• Online recruiting

HRIMS MODULES

HRIMS MODULES• The training module • The system, normally called a

Learning Management System it 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.

HRIMS MODULES• 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.

Benefits of HRIMS• HRM functions and can greatly increase

efficiency and response times of various traditionally labor – and time-intensive human resource activities.

• Its applications are, therefore, almost endless.

• The system contains a program for tracking applicants, a skills inventory, a career planning program and employee service programs such as an electronic bulletin board.

FEATURES OF HRIMSThe specific benefits of HRIMS include:• Improved planning and program

development using decision support software

• Faster information processing and improved response times

• Decreased administrative and HR costs

• Accuracy of information• Enhanced communication at all levels

FEATURES OF HRIMS

• Others forms of HRIMS were essentially relational databases in which information on such aspects as the financial investments in training could be corrected by employee gender of the number of sick days taken could be tied to specific age groups or job clusters.

FEATURES OF HRIMS

• HRIMS allow such correlations but also assist ‘synthesis analysis and consolidation” of such data an invaluable tool for strategic HR planning. As one author reflects, increasingly HRIMS are becoming databases of which decision support systems can be established

HRIMS’s in use• Bell Helicopter Company applies its HRIS to

helps secure a multi-billion-dollar government contract. The presence of an integrated HRIS convinced a Navy review team that Bell could acquire the necessary technical staff for meeting contract due dates by avoiding a supply and demand gap. This capacity was viewed as critical for the Navy’s Project.

• Merck and Company, Inc. determined that a typical applicant had to fill in his or her social security number on at least 22 different occasions during the application process. Eliminating this kind of unnecessary redundancy saved the company considerable money.

HRIMS’s in use• MCI Telecommunications uses SMARTSEARCH an

automated resume tracking system, to identify qualified applicants quickly and accurately.

• The University of Michigan uses an HRIS to manage the pay benefits and pensions of current and former faculty and administrators. Each of these companies is convinced that its HRIS has improved with the use of such systems.

In contrast to these relatively specializes HRIS’s computer technology has also made is possible for organizations to integrate multiple HR needs into a single system.

• Apple Computer System allows employees to enroll in benefits programs directly from their personal computers. Line managers can process traditional employee transactions such as pay increases, and they can use learning modules that instruct them in skill improvement programs such as conducting legal performance analysis.

• Chevron has also moved toward general systems. The company had over 200 different HR systems, most of which couldn’t communicate with one another. Now there is one system with data on all Chevron employees worldwide. The company estimates that it has saved nearly 2,000$ per employee by removing these redundancies. And with over 50,000 employees, the saving have been substantial.

HRIMS’s in use

• Phillips Petroleum installed an EIS in order to support its managers and increase their span of control. The company estimates that its system was able to saves 100 $ million by decentralizing decision making and delivering needed information directly to the manager.

HRIMS’s in use

PROBLEMS IN HRIMS

• Unlawful access to employees’ personnel records can lead to their identity being used by thieves for fraudulent reasons.

• One of the major concerns is that an HRIS makes it easier for someone from within or outside of the organization to invade the privacy of employees.

• The friendlier the system the easier it can be prone to unauthorized access to personnel files to occur.

EMPLOYEES PRIVACY IDENTITY THEFT

• It occurs when someone uses another person’s name, address, social security number or other identifying information without the persons knowledge with the intent to commit fraud or other crimes.

• Identity thieves often turn to unsuspecting organizations for this represents one stop shopping for electronically stored personnel files, payroll and tax records and benefits information.

IDENTITY THEFT

• Identity theft is fast becoming a major national problem. According to the federal trade commission (FTC), which monitors the issue, the number of complaints from victims of identify theft

• In the United States has increased from 1,380 in 1999 to a projected 210,000 in 2003. even though identity theft is a felony under the federal Identity Theft and Assumption Deterrence Act of 1998 over 3,000 complaints are being receive eacg week at the FTC’s Identity Theft Clearinghouse, a help desk, databank and law enforecement aid. Progections indicate that complaints about identity theft will continue to escalate.

Statistics of Identity Theft

Statistics of Identity Theft

• The costs of identity theft to the employee are numerous: it is estimated that a victim of identity theft will need to spend on average 175 hours researching and tracking the crime 23 months correcting credit reports and 800 $ in out of pocket expenses to restore their financial health and standing

• Although it is impossible for an organization to guarantee that information about employees will not be seen or used inappropriately by unauthorized persons, several safeguards can help to minimize the risks to privacy in an HRIS

• Employee’s rights should be carefully guarded when an organization develops an HRIS. By their very nature.

• HRIMSs create the potential for significant amounts of private information about employees being disseminated. Because there is potential for abuse, organizations should carefully evaluates their policies regarding access to HRIS data.

• An organization must also determine how much information legally and ethically, it wishes to disclose to the employee In question.

• Currently there is no federal legislation guaranteeing employees the right to inspect and amend data in an HRIS. Many states have passed such legislation, however.

HRIMS

HRIMS• Finally, an organization should determine

how much control its employees should have over the release of personal information.

• Research has found that the release of information from an HRIS is perceived to be the greatest threat to privacy when employees don’t retain the right to authorize the release. Thus the organization must attempt to strike a balance between employees privacy and having a user-friendly easily accessible HRISs