a brief history and overview of technology in hr

Chapter 1

A Brief History and Overview of Technology in HR

HISTORICAL ERAS IN HRIS

• Pre–World War II

– Reactive, “caretaker” role– Recordkeeping – manual– “Scientific management” philosophy– Not major part of business– Few government regulations

Kavanagh, Human Resource Information Systems 4e. SAGE Publications, 2018. 2

POSTWAR: 1945–1960

• Importance of employee morale• HR part of operating costs, not in mainstream• Labor inions established• Job descriptions gain popularity• Payroll function among the first for automation• Job analysis, employee skills begin to be tracked• R & D in selection• Mainframe usage by defense industry in HR


SOCIAL ISSUES PERIOD: 1963–1980

• Social issues legislation impact HR• Protector of employees• Intro of IBM 360• Advent of MIS• Paperwork and reporting increases• HR now more in mainstream of operating

budget


COST-EFFECTIVENESS: 1980-1990

• HR cost justification activities• Increased role due to paperwork required in

legislation• Microcomputers and software advances• HRIS capabilities lower in cost• Increased emphasis on R&D• Utility analysis critical• Smaller companies can utilize HRIS


TECHNOLOGY ADVANCEMENT ERA (’90s–TODAY)

• Internet-enabled Web services• HRIS more commonplace • Business process re-engineering• HR balanced scorecard• Strategic HR management• HR becoming more visible as a “strategic business

partner”• Globalization of companies • Hardware–software tools in decision-making


THE EVOLUTION OF STRATEGIC HRM• Contingency perspective and fit• Resource-based view of the firm and social capital• HR system components and structure• Expanding the scope of HRM beyond the focal

organization • Achieving HR implementation and execution by

translating the rhetoric into practice,• Measuring the outcomes of SHRM by (e.g., balanced

scorecard approach)• Research methodological issues that stress the

importance of evidence-based management• Adoption and use of HR metrics • Application of “Six Sigma” processes to HRM


COMPETITIVE ADVANTAGE

Three Categories of Resources

• Physical

• Organizational

• Human Most Critical


ACTIVITIES OF HR

Transactional

Traditional

Transformational

Wright, McMahan, Snell, & Gerhart, 1998


HR ACTIVITIES & TIME SPENT

• Transactional (65–75%)– Benefits Administration, Recordkeeping, Employee

Services• Traditional (15–30%)

– Recruitment, Selection, Training, Performance Management, Compensation, Employee Relations

• Transformational (5–15%)– Knowledge Management, Strategic Redirection

and Renewal, Cultural Change, Management Development

– Added ValueWright, McMahan, Snell, & Gerhart, 1998


INTERFACE BETWEEN HR AND TECHNOLOGY

• IT as a tool, not a substitute for people• How might the changes in technology impact

the role and perceptions of HR departments and professionals?

• How might technology aid in the advancement of strategic HRM?


HRIS• Human Resources Information System (HRIS)

– Computerized system that provides current and accurate data for purposes of control and decision making

– Benefits• Store and retrieve large quantities of data• Combine and reconfigure data to create new information• Institutionalization of organizational knowledge• Easier communications• Lower administrative costs• Increased productivity and response times


HRIS DEFINITION

• Not just hardware–software• Includes people, forms, policies, procedures, and

data• Purpose – provide accurate and timely

“information” to the “clients” (or stakeholders) of HR

• Variety of users– Strategic– Tactical– Operational decisions


E-HRM & HRIS

• Electronic human resource management (E-HRM) – Information technology (e.g., Web) – central

component– Application and HR-function focused

• HRIS– Technology and processes (e.g., databases,

enterprise resources planning [ERP] architecture, smartphones, etc.) that support employee access to HR data and the move to E-HRM


BIGGEST ADVANTAGES OF HRIS

Reduced manual handling and paperwork Or

Enables greater impact of paperwork on business operation– Reports– Analysis– Negotiations– Communications


Why Do We Need an HRIS?• Providing a comprehensive information picture as a single,

integrated database; this enables organizations to provide structural connectivity across units and activities and to increase the speed of information transactions

• Increasing competitiveness by improving HR operations and management processes

• Collecting appropriate data and converting them to information and knowledge for improved timeliness and quality of decision making

• Producing a greater number and variety of accurate and real-time HR-related reports

• Streamlining and enhancing the efficiency and effectiveness of HR administrative functions

• Shifting the focus of HR from the processing of transactions to strategic HRM

• Reengineering HR processes and functions• Improving employee satisfaction by delivering HR services more

quicklyKavanagh, Human Resource Information Systems 4e.

SAGE Publications, 2018. 16

Harnessing the Potential of an HRISThe ability of any organization to gain effectiveness and

efficiencies from human resources technology depend on factors such as these:

• the size of the organization, with large firms generally reaping greater benefits;

• the amount of top-management support and commitment;• the availability of resources (time, money, and personnel);• the HR philosophy of the company, as well as its vision,

organizational culture, structure, and systems;• managerial competence in cross-functional decision making,

employee involvement, and coaching; and• the ability and motivation of employees in adopting change, such as

increased automation across and between functions (Ngai & Wat, 2004).


INFORMATION SYSTEMS PROVIDING SUPPORT FOR HRM (Table 1.1)


INFORMATION SYSTEMS PROVIDING SUPPORT FOR HRM (Table 1.1 Cont.)


SYSTEM DEVELOPMENT LIFE CYCLE (SDLC)

• Five General Phases(1) Planning(2) Analysis (3) Design(4) Implementation(5) Maintenance – Begins with planning and ends with continuous

evaluation


SuccessFactors Employee Home Screen

A MODEL OF ORGANIZATIONAL FUNCTIONING

• Organic model • HRIS is critical to the efficient operation of an

organization• Interrelatedness between the strategic

management system, the strategic HRM system, and the performance goals

• Business and HR are generated during the strategic planning process



• The HR goals drive the HR programs that provide management the tools for the efficient and effective use of employees

• The HRIS has become increasingly important in supporting the HR management system, as well as in strategic planning

• HR metrics and cost–benefit results (value added and return on investment [ROI]) are in continual interaction



• National culture impacts entire model through strong effects on external environment

• External environment influences internal functioning of organization

• Interaction between strategic management system and strategic HRM will improve the functioning of the organization


a brief history and overview of technology in hr

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