HRM200 Lecture Notes - Lecture 3: Human Resource Management System, Workforce Management, Data Warehouse

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Ch 3: HRM AND TECHNOLOGY
THE STRATEGIC IMPORTANCE OF TECHNOLOGY IN HRM
- HR Technology: any technology that is used to attract, hire, retain and maintain talent,
support workforce administration, and optimize work-force management
- This technology can be found in different types of human resource information systems
(HRIS), can be used by various stakeholders, such as managers, employees, and HR
professional and can be accessed in different ways, such as via the company intranet
- Technology has made it easier and faster, to gather, collate, and deliver information and
to communicate with employees
- Has the potential to reduce administrative burden on the HR department members so
they are able to focus on more meaningful HR activities, such as providing line managers
with the appropriate decision-making tools that will enable managers to make more
effective HR-related decisions
- Research indicates that companies who use technology effectively to manage their HR
functions are more effective than those that do not
- 5 strong strategic relationships between HR and technology will enable HR to achieve
three key objectives:
o strategic alignment with business objectives
o Business intelligence- providing users with relevant data
o Effectiveness and efficiency-changing how HR work is performed by reducing
lead time and costs, and increasing service levels
- The expectations are high for HR
o Achievement of these objectives will require HR professionals to be very
effective at leveraging technology to reduce the time spent on administrative
and legal compliance work so that it can focus on delivering strategic services
o Demonstrating that HR is adding value to the bottom line continues to be a
major challenge for HR
o A Mercer survey suggested that over 60 percent of chief financial officers
continue to view HR as a cost center that focuses primarily on executing
administrative and compliance functions, and that only 15 percent of them
reported that HR was focused on strategic activities
THE STRATEGIC IMPORTANCE OF TECHNOLOGY IN HRM
- impact of technology has changed the traditional HR role
- changed in three major ways as a result of the technologically enabled environment:
o deceased transactional activities
o increased client/customer focus
o increased delivery of strategic services
- seven core competencies have emerged that are critical to the development of the HR
professional
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Decreased Transactional Activities
- Technology enables the reduction of the
administrative burden, resulting in lowering basic
transaction costs.
- Proactive HR professionals leverage technology to
improve the design and delivery of basic HR services
- In order to do so, HR professionals develop business
knowledge with respect to the key drivers of
organizational productivity and become cognizant of
costs associated with enhancing efficiencies and
effectiveness of the workforce.
- Reducing administrative and compliance activities
through automation is considered necessary if HR is
going to liberate itself from these day-to-day activities
- Selecting the appropriate technology and ensuring that it is deployed appropriately are
very important activities to ensure the organization can meet its goals
- A survey published by the Society of Human Resource Management indicated that
technical skills such as software and Internet Literacy, as well as database skills, are
considered most important for the HR specialist to develop
Increased Client/Customer Focus
- In organizations, HR deals with many internal customers, including managers,
employees, and all the other departments in the organization
o These customers expect HR to understand and respond to their requests
quickly, reduce bureaucracy, and provide information that is meaningful, useful,
and accurate
- In today's economic climate, there is a significant need for HR professionals to
understand the financial side of organizations, in particular how to help the organization
control its people costs.
- Managers expect HR to understand their key business issues and to provide relevant
and meaningful information to help them make better decisions
o For example, managers are responsible for creating and maintaining their
staffing budgets. Information about the number of employees who quit or were
terminated or the numbers of maternity and other planned leaves is important
to help the manager plan more effectively.
- Today's employees expect responsiveness, flexibility, and access to information 24/7
o To be effective, HR must understand how technology can best meet the needs
of their customers
o When these stakeholders become more comfortable with the fact that HR is
listening and cares about their needs, they will gain respect for HR and trust HR
o This trust will lead them to sharing their concerns to a greater degree and
trusting HR with their data requirements
- A significant partner of HR is the information technology (IT) department. The next
section will focus on how HR can develop a good working relationship with this critical
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group
HR and the IT Department: Developing Good Working Relationships
- If HR is going to gain credibility with the IT department,
- If HR is going to gain credibility with the IT department and work effectively, it must
demonstrate its knowledge of and respect for the IT discipline
- Specifically, it is important for HR to exhibit knowledge of different types of HR systems,
technology delivery methods, best practices of other organizations, and the types of
technology enhance1nents that set these organizations apart
o For example, when A T&T long distance services decided to implement an
HR/payroll system, HR met with several different vendors to explore the
functionalities of the different systems and worked with a team of IT
professionals to help them make an informed decision
- In order for HR to build this technological knowledge, they can seek out learning
opportunities such as trade shows, meetings with software vendors, formal courses in
IT, and reading material about technological trends and issues
- Not only will HR practitioners be able to speak the language of IT, but they will also gain
a greater understanding of the IT discipline and the challenges facing IT professional
HUMAN RESOURCES INFORMATION SYSTEMS (HRIS)
- There are over 140 human resources information systems being offered by over a
hundred vendors in the United States and Canada
o The costs of implementing such a system range from $1 000 to $12 million
o Licensing fees cost anywhere from three to eight times the cost of the software
licence for implementation costs
- Not all companies have the latest and greatest technology, nor do all companies need
the most advanced technology
o However, all companies do have HR-related information needs
o The information needs of a small company with 40 employees may only require
the use of a simple Microsoft Word or Microsoft Excel file to keep basic
employee data.
o A company with 3000 employees manages a greater volume of data, which can
be daunting without a more sophisticated tool to store and retrieve data
- Also referred to as human resources management system (HRMS), Human Resources
information system (HRIS): integrated systems used to gather, store, and analyze
iforatio regardig a orgaizatio’s hua resoures
o These systems consist of software applications that work in conjunction with an
electronic database
o HRIS enable HR professionals to collaborate with the organization to ensure
efficiency and effectiveness of the workforce, become more customer focused,
and align their activities to the business plan, thus contributing to the botton1
line
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