HUMAN RESOURCEINFORMATION SYSTEMS

Basics, Applications, and Future Directions

Michael J. KavanaghThe University at Albany

Mohan ThiteGriffith University, Australia

USAGELos Angeles • London • New Delhi • Singapore • Washington DC

Contents ;

Preface xvii

PART I: INTRODUCTION TO HUMAN RESOURCEMANAGEMENT AND HUMAN RESOURCEINFORMATION SYSTEMS

Chapter I. Evolution of Human Resource Managementand Human Resource Information Systems:The Role of Information Technology 3

MOHAN THITE AND MICHAEL J. KAVANAGH

Editors NoteChapter ObjectivesVignetteIntroductionHistorical Evolution of HRM and HRIS

Pre-WorldWarllPost-World War II (1945-1960)

. Social Issues Era (1963-1980)Cost-Effectiveness Era (1980 to the Early 1990s)Technological Advancement Era and Emergence of

Strategic HRM (1990 to Present)HR ActivitiesInterface Between HR and TechnologyA Primer on HRIS

WhatJs an HRIS?Why Do We Need HRIS?Different Types of HRISSystem Development Process for an HRIS

A Model of Organizational FunctioningCentral Themes of the BookOverview and Structure of the BookDiscussion Questions

344567789

101112131314151617181921

Case Study: Position Description and Specification for an HRIS Manager 21Manager—HRIS 21Case Study Questions 22

References 22

Chapter 2. Database Concepts and Applications in HRIS 25

JANET H. MARLER AND BARRY D. FLOYD

* Editors' Note 25Chapter Objectives 25Introduction 26Data, Information, and Knowledge 26Database Management Systems 27

Early DBMS 29Relational DBMS 30Data Sharing Between Different Functions 31Data Sharing Between Different Levels 31Data Sharing Across Locations 32

Key Relational Database Terminology 33Entities and Attributes 33Tables 33Relationships, Primary Keys, and Foreign Keys' 33Queries 34Forms 36Reports 36

Introduction to MS Access 36Designing an MS Access Database 37HR Database Application Using MS Access 38Other HR Databases 38

Data Warehouses, Business Intelligence, and Data Mining 41Summary ' 43Discussion Questions 43Case Study 44Notes 44References 44

Chapter 3. Systems Considerations in the Design of an HRIS:Planning for Implementation 45

MICHAEL D. BEDELL, MICHAEL CANNIFF, AND CHERYL WYRICK

Editors' Note 45Chapter Objectives 46Vignette 46Introduction 47HRIS Customers/Users: Data Importance 48

Employees 48Nonemployees 50Important Data 51

HRIS Architecture 51The HRIS "Dinosaur" 51Two-Tier Architecture (Client-Server) 52Three-Tier Architecture 53N-Tier Architecture With Enterprise Resource Planning 55Security 55

Best of Breed 57Recruitment 58Time Collection 58Payroll 59Benefits 59

System Implementation Process 59Planning 60Project Manager 61Steering Committee/Project Charter 61Implementation Team 62Project Scope 63Management Sponsorship 64Process Mapping 64Software Implementation 66Customization 67Change Management 67"Go Live/" 67Evaluation of Project 68Potential Pitfalls 68

Summary 69Discussion Questions 69Case Study: Vignette Revisited 70

New Information for the Case: Part 1 71New Information for the Case: Part 2 71New Information for the Case: Part 3 71New Information for the Case: Part 4 72

Technical Section 72Best-of-Breed Architecture 72Alliance Programs 73

Note 75References 75

PART II: DETERMINING HRIS NEEDS

Chapter 4. HRIS Needs Analysis 79

BRADLEY J. ALGE AND KAREN BRUNER UPRIGHT

Editors' Note 79Chapter Objectives 79Vignette 80

Introduction: HRIS Needs—Planning and Analysis 81System Development Life Cycle (SDLC) 81

Planning 83Needs: Long-Range Planning 83Needs: Short-Range Planning 85

The Big 3: The Global Positioning System of HRIS 86Analysis 89

Gap Analysis 94Discussion Questions 97Case Study: "Planning the Needs of Other Organizations" 97

Case Study Questions 98Note 98References 98

Chapter 5. System Design and Acquisition 99

RICHARD D. JOHNSON AND JAMES H. DULEBOHN

Editors' Note 99Chapter Objectives 100Vignette 100Introduction 101Design Considerations During the Systems Development Life Cycle iO2

Logical Design 103Two Ways to View an HRIS: Data Versus Process 103Logical Process Modeling With Data Flow Diagrams 104Creating and Using the DFD 106Physical Design 107

Working With Vendors 111Vendor Selection 113

Assessing System Feasibility 115Technical Feasibility 115Operational Feasibility 115Legal and Political Feasibility 116Economic Feasibility " 117

Summary 117Discussion Questions 118Case Study 118Notes 120References 120

Chapter 6. Cost Justifying HRIS Investments 121

KEVIN D. CARLSON AND MICHAEL J. KAVANAGH

Editors'Note 121Chapter Objectives 122Vignette 122

Introduction 123Justification Strategies for HRIS Investments 128Evolution of HRIS Justification 129Approaches to Investment Analyses Makes a Difference:

Some Guidelines 129HRIS Cost-Benefit Analysis 132

Identifying Sources of Value for Benefits and Costs 133Estimating the Timing of Benefits and Costs 137Estimating the Value of Indirect Benefits 137

Estimating Indirect Benefit Magnitude 138Mapping Indirect Benefits to Revenues and Costs 140Methods for Estimating the Value of Indirect Benefits 142

Avoiding Common Problems 145Packaging the Analysis for Decision Makers 147

The Role of Variance in Estimates 147Conclusion 148Summary 148Discussion Questions 149Case Study 150

Case Study Questions 150Notes , . 151References 151

PART III: HRIS IMPLEMENTATION

Chapter 7. Project Management Development and HRIS Acceptance 155

SALVATORE BELARDO, PETER OTTO, AND MICHAEL J. KAVANAGH

Editors'Note 155Chapter Objectives 156Vignette 156Introduction 157Project Management 159The IT Perspective 159

PM Literature 159PM Approaches and Tools 160General IT Factors Affecting PM Success 162

The HRM Perspective 163Identification of the Steering Committee and Project Charter 163Configuring the PM Team 164Identification of Available Resources and Constraints 165Controlling Project Creep 166Selection of Implementation Team 166Training and Documentation 166

Critical Success Factors 167Summary 168Discussion Questions 169Case Study: Implementing an HRIS 169

Case Study Questions 171Note 171References 171

Chapter 8. Change Management: Implementation,Integration, and Maintenance of the HRIS 173

ROMUALD A. STONE AND JOYCE MASON DAVIS

Editors'Note 173Chapter Objectives 174Vignette 174Introduction to the Management of Change 175

What Is Change Management? 175The Change Management Process: Some Terminology 176

Models of the Change Process 176Action-Research Model 177Lewin's Change Model 177Change Equation Formula ' 181Nadler's Congruence Model 181Kotter's Process of Leading Change 183

Why Do System Failures Occur? 185Leadership 186Planning 187Change Management 187Communication i 188Training j 191

Organizational and Individual Issues in HRIS Implementation 192Cultural Issues 192Process Reengineering 195Resistance to Change 195User Acceptance 197The Importance of HRIS Integration 200Practical Approaches to Implementation 200Postimplementation and Maintenance of the HRIS 200

Summary 201Discussion Questions 202Case Study: The Grant Corporation 202

Case Study Questions 205Note 205References , 205

PART IV: HRIS APPLICATIONS

Chapter 9. HR Administration and HRIS 21 I

LINDA C. ISENHOUR

Editors'Note 211Chapter Objectives 212Vignette 212Introduction to HR Administration in an HRIS Environment 213HRM Administration and Organizing Approaches 214

Service-Oriented Architecture and Extensible Markup Language 214Advantages of XML-Enhanced SOA 216Theory and HR Administration 217Self-Service Portals and HRIS 219Advantages of Self-Service Portals for HR Administration 220Disadvantages of Self-Service Portals for HR Administration 221Shared-Service Centers and HRIS 221Advantages of Shared-Service Centers for HR Administration 223Disadvantages of Shared-Service Centers for HR Managers 224

Outsourcing and HRIS 224Reasons to Pursue HR Outsourcing 225Advantages ofHR Outsourcing 227Disadvantages ofHR Outsourcing 228Offshoring and HRIS 229Types ofHR Offshoring 230

Summary of HR Administration Approaches 230Legal Compliance and HR Administration 231HR Administration and Equal Employment Opportunity 232

U.S. Civil Rights Act of 1964, Title VII, and the EEO-1 Report 232EEO-1 Report (Standard Form 100) r 233EEO-1 and HRIS 235Occupational Safety and Health Act Recordkeeping 236OSHA Form 300 (Log of Work-Related Injuries and Illnesses)

and HRIS 237HR Administration Approaches and Mandated

Governmental Reporting 238Privacy and Security in an HRIS 239Summary of Government-Mandated Reports and

Privacy Requirements 240HR Strategic Goal Achievement and the Balanced Scorecard 241

HRM and the Balanced Scorecard 242HR Scorecard and Balanced Scorecard Alignment 244

Discussion Questions 245Case Study: The Calleeta Corporation 245

Case Study Questions 247

Note 247References 247

Chapter 10. Job Analysis and HR Planning 251

HAZEL WILLIAMS

Editors NoteChapter ObjectivesVignetteTalent Management

An Inclusive or Exclusive Approach?High Performers and High PotentialsTalent DiversitySummary

Job Analysis: Keystone of HR PlanningIntroductionJob Analysis Approaches and TechniquesEstablishing and Maintaining Accurate Job Descriptions:

HRIS ApplicationsA Framework for Strategic HR Planning

Analysis and InvestigationForecastingPlanning and Resourcing

HRIS Utilization for Talent Management and HR Planning:The Current Status

Utilization of HRIS for Talent Management, Tracking, andHR Planning

Human Capital Metrics and AnalyticsSummaryDiscussion Questions jCase Study: Return to Opening Vignette

Case Study QuestionsNotesReferences

251252252253253254254255255255255

256259260265267

267

269271271272272273273273

Chapter I I. Recruitment and Selection in an Internet Context 277

KlMBERLY M . LUKASZEWSKI, DAVID N . DlCKTER, BRIAN D . LYONS,

AND JERARD F. KEHOE

Editors' Note 277Chapter Objectives 278Vignette 278Introduction 279Recruitment and Technology 280

The Impact of Online Recruitment on Recruitment Objectives 280Quantity, Quality, and Diversity of Applicants 285Attributes of the Recruiting Web Site 287

Summary of Online Recruitment 289Selection and Technology 289

What Are Selection Tests and Assessments,and Why Are They Used? 289

Why Is Assessment Important for HRIS? 291Technology Issues in Selection 293Applying HRIS to Selection and Assessment 297Demonstrating the HR's Value With HRIS Selection Applications 298

Summary of Selection 300Discussion Questions 301Case Study 301

Case Supplemental Material 302Case Study Questions 303

References 303

Chapter 12.Training and Development: Issuesand HRIS Applications 307

RALF BURBACH

Editors' NoteChapter ObjectivesVignetteIntroductionTraining and Development: Strategic Implications and Learning

OrganizationsSystems Model of Training and Development

Training Metrics and Cost-Benefit AnalysisHRIS Applications in Training

HRIS/Learning Applications: LMSHRIS T&D Applications: Implementation Issues

SummaryDiscussion QuestionsCase Study

Case Study QuestionsNotesReferences

Chapter 13. Performance Management, Compensation,Benefits, Payroll, and the HRIS

CHARLES H. FAY AND REN NARDONI

Editors' NoteChapter ObjectivesVignetteIntroduction to Performance, Rewards, and PayrollPerformance Management

Overview

307307308309

310312324326329330331332333334334334

338

338339339340341341

Typical Data InputsTypical ReportsData OutflowsDecision Support

CompensationOverviewTypical Data InputsTypical ReportsData OutflowsDecision Support

BenefitsOverviewTypical Data InputsTypical ReportsData OutflowsDecision Support

PayrollOverviewTypical Data InputsTypical ReportsData OutflowsDecision Support

SummaryDiscussion QuestionsCase Study: Grandview Global Financial Services, Inc.

Case Study QuestionsReferences

345345345346347347349350351351352352353353354354354354355356356356356357357359359

Chapter 14. International Human Resource Management 361MICHAEL J. KAVANAGH AND JOHN W. MICHEL

Editors' Note 361Chapter Objectives 362Vignette 362Introduction: Increasing Importance of International

Human Resource Management 363Types of International Business Operations 365Differences in HRM in MNEs 367Managing Different Types of Employees in MNEs 369

HR Programs in Global Organizations 371International Staffing 371Selecting Global Managers: Managing Expatriates 373Training and Development of Expatriates 378Performance Appraisal in MNEs 381Managing International Compensation 382

HRIS Applications in IHRM 385Introduction 385Organizational Structure for Effectiveness 385IHRM-HRIS Administrative Issues 386HRIS Applications in MNEs 387

Summary 387Discussion Questions 388Case Study 388

Case Study Questions 389Notes 389References 390

PART V: SPECIAL TOPICS IN HRIS

Chapter 15. Information Security and Privacy in HRIS 395

YUK KUEN WONG AND MOHAN THITE

Editors' Note 395Chapter Objectives 395Vignette 396Introduction 396Threats to Information Security 397Components of Information Security 398

Confidentiality 399Integrity 399Availability 400

Legal Requirements for Information Security 400Role of HR in Information Security 400Information Security Management for HRIS 401

Information Privacy 401Discussion Questions 405Case Study: Practical Applications of Information Privacy Plan 405

Scenario 1 406Scenario 2 406Scenario 3 406Case Study Questions 406

References 407

Chapter 16.The Future of HRIS: Emerging Trends in HRM and IT 409MICHAEL J. KAVANAGH AND MOHAN THITE

Editors' Note 409Chapter Objectives 409Future Trends in HRM 410

Future Trends in the Fields of IT/IS and HRIS 413Software as a Service (SAAS) 413Service-Oriented Architecture 413

. Web 2.0 414En terprise Portals 415

Future Trends in Workforce Technologies 415Summary 417Notes 417References 417

Appendix 419

Glossary 423

Name Index 442

Subject Index 450

About the Editors 462

About the Contributors 463