Human Resource Information Systems (HRIS) : Not Just a Tool, It’s a Strategic Weapon!

RIRI SATRIACEO – Value Alignment Advisory

http://about.me/ririsatria

http://strategy4management.wordpress.com

http://www.facebook.com/ririsatria.va2

http://twitter.com/ririsatria

http://www.linkedin.com/in/ririsatria

ririsatria@va2indonesia.com or ririsatria@gmail.com

http://www.facebook.com/ValueAlignment

My name is RIRI SATRIAPresident Director / CEO – Value Alignment Advisory (VA2) – since 2012Consultant – strategic management and organization development - since 1996Education background in computer science (UI), strategy (PPM) and HR management (IPB).Lecturer – Master of Information Technology – University of Indonesia – since 2004Lecturer – Master of Management – PPM School of Management – since 2000Chairman – Alumni Association, Faculty of Computer Science, Univ. Indonesia – since 2011Previously worked at KPMG Indonesia and PPM Management.… Literature and arts enthusiast … Active blogger and social media enthusiast …

•Customer Loyalty• Employee Loyalty• Investor Loyalty

The Loyalty Effect (Fred Reichheld)

Why Financial Management is Strategic to Organizations?

… because it gives strategic information to the CEO to make strategic decisions ..

What Makes HR Management become Strategic to Organizations?

… if it could give strategic information to the CEO to make strategic decisions ..

… but what strategic information of HR?

Human Resource is the Highest Critical Success Factor for Business Performance

BRILLIANT BUSINESS

STRATEGIST AND RISK ANALYST

UNUSUAL HIGH QUALITY

PRODUCES

CREATIVITY AND BUSINESS

INNOVATIONS

UNUSUAL SERVICE EXCELLENCE

SPECIAL SKILLSHIGH

PRODUCTIVITY

The Shifting of Human Resource Management Model in Organizations or Corporations

Personnel Management Model.

……… - end of 1970s.

Only for administrative things in personnel management.

Human Resource Development (HRD) Model.

1980s – mid 1990s.

People is not just a production component. We should develop the capacity / competency of the people.

Human Capital (HC) Model.

Mid 1990s – now.

People is the strategic asset. So any expense on people is not a cost, it’s an investment. People is the heart of organizations / corporations.

The Shifting of HR Management Model

Technology and business changes drive need for HR Management change.

The Roles of Human Resource Management Professionals (Dave Ulrich)

The Shifting of Information Systems Model in Organizations or Corporations

Electronic Data Processing (EDP) Model.

1940s – mid 1970s.

Only for data processing, not more than that.

Management Information Systems (MIS) Model.

Mid 1970s – mid 1990s.

The role of information technology is to support managerial activities such as decision making process.

Strategic Information Systems (SIS) Model.

Mid 1990s – now.

The role of information technology is develop competitive advantages of the organizations or corporations.

Big data and business analytics.

The Shifting of HRIS Model

First Generation HRIS Model, known as personnel administration and data processing (example : payroll applications)

1970s – 1980s.

Second HRIS Model for managerial decision making (specially in HR management).

Mostly not integrated to business strategy systems.

Mid 1970s – mid 2000s.

Third HRIS Model, Enterprise (Strategic) HRIS, also named Human Capital Information Systems (HCIS)

Integrated systems for all HR management activities and business strategy systems. It is also empowering people to develop their capacity and social capital. Use big data and business analytics.

Mid 2000s – now.

Big Data and Business Analytics

Business Analytics (SAP Model)

The Strategic Human Resource Information Systems Model

COMPETITIVE ADVANTAGES OF THE ORGANIZATION /

CORPORATION

STRATEGIC HUMAN RESOURCE MANAGEMENT (S-HRM) or

HUMAN CAPITAL (HC)

STRATEGIC INFORMATION SYSTEMS (SIS)

STRATEGIC HUMAN RESOURCE INFORMATION SYSTEMS (S-HRIS) or HUMAN CAPITAL

INFORMATION SYSTEMS (HCIS)

Example• Business strategy :

• Leading in innovative products with short time to market.

• Human Resource Management Strategy :• Create a leading creative team with high competence in creativity and

product simulation.

• Information Systems Strategy :• Main strategic information systems in-house and outsource the support

applications.

• HRIS Roles :• Provide information about the competency and product of creative team. • Provide the learning management systems for creativity.• Built social capital with other creative workers community.

Second Generation HRIS Core Modules

• Personnel Information Systems.• Organization Structure Management.• Recruitment Management.• Training and Development Management.• Personnel Posting and Career Management.• Performance Management.• Leave Management.• Report Management.

Companies in Indonesia mostly using this second

generation HRIS ..

Example : Netis HRIS Architecture

Third Generation HRIS / Enterprise-HRIS or HCIS Core Modules

• All old HRIS core modules.

• Learning Management Systems (not just training and development). We are talking about Knowledge Management and Learning Organization.

• Performance Management (that linked to business strategy and activities, competency management, not just an ordinary key performance indicators management).

• Investment Analysis of HRM activities (that linked to financial and accounting information systems).

• Social Capital Development (empowering employee and enggagement satisfaction management to gain competitive advantage)

Closing Remarks• Now, we have the Third HRIS Model, the Strategic or Enterprise-HRIS that also

named as Human Capital Information Systems (HCIS) is not just a tool for managing people. It is a strategic weapon to develop competitive advantages and improve business improvements.

• The Third HRIS Model combined the concepts of Strategic HR Management or Human Capital with Strategic Information Systems (SAS).

• The Third HRIS Model has strategic modules : Learning Management Systems, Performance Management, Investment Analysis, and Social Capital Development. The modules are integrated to business strategy and activity modules.

• The Third HRIS Model also adopt big data and business analytics model.

• It is not the technology that lead the HR Management practices, but the technology should follow the HR Management strategy and practices.

PT. Solusi Inovasi DayagunaMenara Rajawali level 7-1, Jl. DR. Ide Anak Agung Gde AgungKawasan Mega Kuningan, Jakarta Selatan 12950, IndonesiaTelepon : +62 21 29552660 ; Fax : +62 21 29552661

http://about.me/ririsatria

http://strategy4management.wordpress.com

http://www.facebook.com/ririsatria.va2

http://twitter.com/ririsatria

http://www.linkedin.com/in/ririsatria

ririsatria@va2indonesia.com or ririsatria@gmail.com

http://www.facebook.com/ValueAlignment