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Question: What Information System assists in planning? Answer: Introduction Human Resource Information System assist in planning the HR financial needs effectively. To achieve proper planning in costs and appropriate HR management, HR initiatives are taken into consideration effectively. There is mitigation of risks and the implementation of this software to manage the organizational needs of the HR department being tackled in Deloitte. Tough decisions are required when it comes to making decisions in technological initiatives. The purpose of this business case is to analyze the importance of cost-benefit analysis, Return on Investment and short/long term evaluation of the HRM initiative adopted. HRM Initiative In its planning costs and making proper HRM decisions proposal, Deloitte adopted the development of a Human Resource Information System initiative. HRIS is a software system in HR that involves crisscrossing information technology and human resources. This system makes it possible for all HR activities to take place electronically. It makes the management of employees as well as the data much easier. Human Resource Information System is used in various ways in the business. These ways include: tracking the performance of employees, used in planning salary, monitoring accounts in business, entry of information data and management of data. There are three types of the HR software systems; Human Resource Information System (HRIS) This software is created to meet the management needs of managing people, processes, and strategies in the business. This system has nine key features that define it; they include; training and employee development, recruiting employees, managing workflow procedures, management of overall human resources, employee self-management, administration benefits in enrollment, work reports, management of employee absenteeism and managing compensation approaches (KAVANAGH 2015). Human Resource Management System (HRMS) This system is involved in covering in the HRIS elements as well. However, HRMS includes a large part of the human resources, which is handling a large number of employees as well as managing all the functions needs of human resources. Its key features include; management of the payroll and administration of labor needs and time span in business. In some businesses (OREGON 2009). Human resource management system is used in managing schedules in business though this is not a core characteristics because it does not apply to all businesses. Human Capital Management (HCM) This software includes all other aspects of human resource information system but adds management of talent and general characteristics such as currency and lingual elements. The major components include; budgeting in business, financial analytics, management of salary, management of employees performance and planning on top management change of roles. Adopting the Human Resource Information System initiative for business has various benefits that it brings to the table for the organization. First, it enables employees data to, be entered once and in the case of any updates, only one place needs to change. This is very convenient for business as it enables processes in the business to be done very fast. Secondly, it involves putting all the business materials such as employee safety guidelines and handbooks in a location. This saves on costs for the business and enables proper management as well as an accessible track on this records (FERNANDEZ-SANCHEZ 2011). Lastly, this system enables self-service for both employees and employers. This saves on time as it is convenient for everyone. Few disadvantages, however, characterize this system. One of the disadvantages is the cost element, where the system incurs both acquisition and maintenance expenses in the business. Secondly, there is the security factor, where a lot of monitoring is required for protecting the data stored. This system can be categorized into two: cloud based systems and Software as a Service (SaaS) systems. The cloud based system uses the internet in assessing the data in the systems. This enables the system to be accessed from anywhere as long as there is an internet connection (WANG 2011). However, this system is characterized by high costs due to the use of internet each time. Its beneficial in that there is no need for upgrading and hosting servers. Software as a service involves the licensing of software to a user (DILLON 2014). In return, a third party licensee is in charge of performance, security management of the software in the servers. When using SaaS, the business does not require, installments and maintenance of the system soft wares. Deloitte adopts the SaaS system as it is very cheap to maintain and the company is not responsible for the servers maintenance. Cost- Benefit Analysis This is a technique used in a comparison of the worth and values a venture brings to the business with the cost associated with producing the scheme. Human resource managers use the cost- benefit analysis in the initial stages of a project to determine and recognize the value of a adopting a project. This analysis helps managers to make decisions if they want to go on with the project or not. There are various steps involved in the cost-benefit analysis (Anon., 2013). These processes include: Explore the costs It involves identifying all the costs, including hidden costs and future costs that may arise. This step is crucial in being able to determine all the costs accrued in the present and future. Look into the benefits It involves considering all the benefits and revenue that may come from the initiative or project undertaken. Here there is need to define the Return on Investment (VESTERGAARD, 2010). Whether it is revenue, efficiency, market or any other depending on the nature of the project. Cost savings identification This step involves determining the things that the business should drop if they adopt the initiative. Determining if the cost savings will increase or decrease the benefits of adopting the project at hand. A defined timeline A business needs to create a timeline in which it expects the revenues and costs. Mapping a schedule for costs and revenue is necessary because it helps in planning the impacts that arise from cost and income in the business activities and places a plan in case things change. Secondly, having a defined timeline usually assist in determining the expectations of all members of the organization. the assessment of non-tangible costs and benefits. There is need to evaluate if there are other advantages other than the sensible ones. For example, if the investment contributes to building a positive image of your brand. It is important in considering all the perspectives in costs and benefits to a business to be able to monitor productivity at all levels efficiently. In Deloitte, the Human Resource manager plans to purchase a Human Resource Information System for improved management of human resources and increasing employee satisfaction, and this analysis is used to look into the choices. The company wants to purchase a SaaS HR system, BambooHR in particular, through payments of per- employee, per -month plus a one-time implementation fee and installation fee (refer to Table 1.0). This is where the company pays a monthly fee for every employee whether they use it or not. The training cost of the employees to learn how to use this technology will cost $50 per session for three sessions. There is an estimation of increment of revenue by 50% with the new system in managing data. Employees productivity is also expected to go up by at least 5% per employee with the HRIS technology. Employees satisfaction is also supposed to rise by 10% thus reducing absenteeism. The following are the costs the business is likely to incur (refer to Table 1.0) and the benefits to be realized (refer to Table 2.0). In this case, the ratio of benefits to ratio is higher and worth implementing in the business. Return On Investment. Return on Investment is a profitability ratio too that examines the performance of an organization. ROI is achieved by dividing the net profit of business over the overall assets of the business (AGENCY 2012). In this case, to arrive at the ROI, it will involve calculating costs of human resources before and after the implementation of the Human Resource Information System in the business. The first step is to calculate all expenses incurred in the HRIS software technology implementation. These costs include those of the overall original purchase cost of application of the software as well as the installation of the same, the cost of hiring experts to train employees and the cost incurred during the training sessions. The other step involves tallying the benefits. The Human Resource Information System software ensures that the benefits of employees commence from their first day at work. Unlike human resources, where employees realize their benefits in the start of a new month. Therefore in calculating ROI, there is a division of the total fee of the month of the full figure of days in that month (OSTERMANN 2009). The result is then multiplied by the total figure of days that the employee had not begun working. This result is the business total savings realized by using the software. HRIS software has realized the benefit of reducing turnover in the business. In calculating the turnover savings accrued, analysis of turnover before this software is carried out. The result is then multiplied by the costs used in recruiting other employees. Then a subtraction of the turnover as per now in the business then multiplies by the fee accrued in replacing the workforce. The result is the business savings on recruitment in the organization. The other step is tallying the labor savings in the firm. This involves finding out the time span that employees took to do a task before the installation of the HRIS software. Noting down the time required to complete a task after the software implementation. This is followed by a subtraction of the time required after from the time taken before; the result is the total figures of the time saved. This time is then multiplied by the wages acquired by the employee who performs the duty, hourly (PHILLIPS 2012). The result is the savings on labor. Another step involves computing the absenteeism rate in the business. HRIS Software participates in tracking those employees who are absent in work and defines patterns in the way they report to work (GRIFFIN 2014). For instance, Deloitte examined the cost incurred through absenteeism daily to amount to $300. Tally up by multiplying the money lost in a day to the total figure of those who were absent without leave. Then multiply the same values after the installation of HRIS software technology. To get the savings accrued, the two figures are subtracted. The final step which is getting the Return on Investment figure is achieved through summing up all the savings calculated above then dividing the total by the implementation fee of the Human Resource Information System. The result is ROI in the business. Evaluation The evaluation process in HR business case is crucial. When a company decides to adopt an HR initiative, there must balance considerations in the short term and long term benefits of the initiative to the organization scheme. Human Resource Information Systems are among the most crucial tools in the business. Most companies are considering using the HRIS Software as compared to the standard ways of managing human resources (PARRY, 2010). This software technology has both short term and long term benefit which should be scrutinized before adopting this initiative into the business. HRIS Software has some short term benefits in the firm. These include; Reduction of overall costs In Deloitte, this software system has enabled the reduction in the expenses of managing HR data. HRIS Software has made it possible for recruiting, attendance and time tracking, training, management in performance, payroll and data management to be done under one integrated place enabling the reduction in the costs incurred in manual HRM (Anon., 2009). Increased productivity HRIS software has led to improved productivity in the organization. This is realized after the turnover is reduced since the implementation of the software. A lot of workloads is reduced for the employees, and they get to enjoy their work using the technology. This is because of the increased speed in work delivery in the organization A new integrated service delivery system. This initiative has provided the organization with a new integration of service delivery in managing human resources. These new improvements include self-service for employees, this, in turn, increases employee morale, and availability of payroll electronic devices such that employees do not have to queue in an office to ask for their pay but through this system, things get easier (CATES 2016). Reduced absenteeism HRIS software monitors the employees attendance to work, and the time they report to work. This has seen a significant change in the absenteeism that was before noted. More employees have improved in their attendance to work. This technology has long-term benefits to the organization as well. This benefits include; Acquisition of technology skills to professionals Through the implementation of this software. Professionals in the HR department undergo training to acquire the driving skills of this technology (HOUSE, 2008). This long-term benefit works to change the working skills of all employees in the business. Networking growth Human Resource Information System has enabled the growth of social networking within the organization. Employees can interact with other employees as well as the top management in the organization. This builds a relationship between employers and employees which are likely to improve on a lot of processes in HR department and work performance (MAYFIELD, 2009). Improved leadership management Through this software, there is a complete change in the administration system in the organization. Leaders decision-making strategies are influenced by this technology, and every leader must adhere to this (CALLEJO, 2009). This approach has seen turnover of the top leaders. This is beneficial in that bad leaders may leave the organization. Business case Summary The development of the Human Resource Information System initiative should be adopted by the organization since its benefits outweigh the cost incurred. The HR department in the organization has had the dire need to expand its access to data on employees, business executives, and new applicants to new job openings and regulatory bodies that govern the organization. This is the reason why every organization should adopt SaaS System to have a large integrated system for all its shareholders and expand all the services in HR. This system is ideal due to its cost savings benefits and the fact that it enabled informed decision-making processes in the business. Critical Reflective Analysis In writing a business case, it is hard to calculate the Return on Investment primarily involving the figures. It was a difficult task to come up with the exact numbers to calculate the ROI. I encountered problems in examining the risks involved if the initiative is not adopted, a section I was unable to include in the business case. I solved the difficulties encountered in calculating the ROI by doing extensive research and being able to come up with the best possible guide to arriving the ROI in the business. I learned a lot in the process especially on learning on the benefits of adopting the HRIS software in the organization. The benefits every group accrues when this software is implemented and the costs that are involved in purchasing the software. References AGENCY, ENAIS 2012, Introduction to return on security investment helping CERTs assessing the cost of (lack of) security, s.l.: s.n. ARNOLD, V 2009, Human resource information systems: basics, applications, and future directions.London, Prentice Hall. CALLEJO, M 2009, HRIS as Drivers to Introduce Total Quality in HRM, s.l.: s.n. CATES, S 2016, The Creation of a Professional Payroll Using Software. Administration and Payroll. DILLON, SV 2014, SaaS cloud computing in small and medium enterprises a comparison between Germany and New Zealand, Munster, Westf: Wilhelms-Univ., ERCIS. FERNANDEZ-SANCHEZ, JDJESACA 2011, Exploring the Relation between the Use of HRIS and their implementation in Spanish Firms. s.l.:s.n. GRIFFIN, R 2011, Complete training evaluation: the comprehensive guide to measuring return on investment. 18th ed. s.l.:s.n. HOUSE, D. D. V.-J. P. . D., 2008. Success Factors for the Global Implementation of ERP/HRMS Software. KAVANAGH, MTMJ 2015, Human resource information systems: basics, applications, and future directions.. 18th ed. s.l.:s.n. MAYFIELD, MM 2009, Increasing Tacit Knowledge Sharing with an HRIS, s.l.: s.n. OREGON, 2009, Human Resources Information System business case executive summary .. 18th ed. s.l.:s.n. OSTERMANN, HSS 2009, Benchmarking Human Resource Information Systems. s.l.:s.n. PARRY, E 2010, The Benefits of Using Technology in Human Resource Management. 18th ed. s.l.:s.n. PHILLIPS, J 2012, Return on Investment in Training and Performance Improvement Programs .. 18th ed. Hoboken: Taylor and Francis. VESTERGAARD, NW 2010, Cost-Benefit Analysis of the Greenland offshore shrimp fishery. Working paper, p. 98. Oxford publishers. WANG, L 2011, Cloud computing methodology, systems, and applications., Boca Raton, FL: CRC Press.
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