Select HR Information Management System

Select HR information management system

Overview

When an organisation identifies a need to select a HR information management system a number of steps must be followed to ensure success.

The selection process must be based on the organisations HR requirements. Selection criteria are drawn up and agreed against those requirements which enables research into the most applicable HRMIS to meet those needs.

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Key terms

Analysis

The process of objectively examining a set of information against a predetermined set of criteria.

Cost benefit analysis

An analysis used for weighing the positive and negative impacts of a particular policy, such as an IR policy, against each other. The impacts are judged in terms of financial return or productivity.

HRMIS

Human Resource Management Information System; computer systems to collect and analyse information to assist in the making of timely HR management decisions, examples are databases, spreadsheets, information networks. Also known as HRIMS, HRIS and HRMS.

Human Capital Management

This term is used to describe processes, procedures and software systems used to manage people in the workplace.

Research

The process of investigating and exploring a topic or area of concern in order to reveal information for analysis.

Document the business case

The first step is to document the business case for evaluation and selection. The business case is a document that states the organisations needs as selection criteria.

The business case must be agreed within the organisation before evaluation can begin.

The business case must contain the following types of content.

Objectives

What is your project to achieve? List the objectives of the project in terms of what the project is to achieve. You must include how to measure the achievements to judge the success of the project.

Describe the business objectives of the review and/or list the outputs that will be produced by the review.

Scope

Qualify the objectives listed above in terms of the key activities and business areas affected by this project. The business areas affected by this project are also shown in the context diagram in the Context of proposed system chapter.

List any activities and areas that are specifically excluded and describe any constraints affecting the scope.

Background information

Explain why the project is being undertaken at this time and describe any other activities, plans and policies relevant to the project.

Also, briefly describe the existing situation including any assumption, with consideration given to both computerised and manual systems.

Pay particular attention to a comparison of the existing situation with future business needs, including reference to the following aspects of the existing situation:

• shortcomings
• features to be retained
• features to be discarded.

Very briefly identify other options (including the option to do nothing) which were considered in arriving at this proposal and the reasons for their rejection. For example, where it is proposed to develop the solution in-house, an alternative would have been to acquire a package.

Requirements

Requirements should be stated as:

• Business requirements

The requirements in terms of organisational strategy, policies and budget.

• User requirements

The requirements in terms people using the system including line managers and employee self-service functions.

• Technical requirements

The requirements in terms of technical capacity of the organisation.

• Performance requirements

The requirements in terms of performance expected from the software.

Resources required

Clearly and separately identify the requirements, so that each Manager responsible for providing resources can readily access the commitments for their area.

Selection criteria

For each product to be evaluated the selection criteria must be the same. A sample of the types of selection criteria required is:

• Product summary
• Features/advantages
• Limitations/disadvantages
• Cost

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Research

The following set of criteria provides a sample of what may be required when selecting a HRMIS. Your task is to write the descriptions of the criteria in the space provided and add additional criteria you think are important. Some descriptions have been completed to assist you in starting.

Table 1: Operational criteria (2 cols)

Criteria / Description
Simple and easy system / The system is simple and easy to use and aligns with industry practice and terminology.
End User Accessibility
Capture data early and once only
Streamlined system and processes
Electronic communication
Administrative Framework

Table 2: Employment Management criteria (2 cols)

Criteria / Description
Employee self-service / Using the web, employees may view their payslips, year-to-date details and basic taxation information; and maintain some of their own their personal information such as residential and postal address and emergency contact details
Recruitment
Leave Management
Time and attendance
Benefits Administration
Performance Management
Salary Packaging
Administer Training

Table 3: Budgeting and planning criteria (2 cols)

Criteria / Description
Workforce Planning / The system will provide the capability to develop staffing profiles by individual area and across the organisation
Position Management
Salary Planning
Reporting/Management
Workflow

Table 4: Vendor and software criteria (2 cols)

Criteria / Description
Service Level Agreement / The vendor provides a Service Level Agreement for implementation, 24/7 support and product upgrades for 10 years.
Risk Management / The system implementation will be based on managed risk planning rather than complete risk avoidance
Security
Legislative compliance
Audit
Records Management

Evaluate potential systems and document results

When evaluating a potential system it is important to have a report structure into which you can easily enter information and results.

Each product evaluated should have the same structure. As well as the evaluation criteria listed above you should consider discussion of the following for each product.

• Tangible benefits

Describe and value any tangible benefits.

• Intangible benefits

Describe any intangible benefits.

• Risk management

State the familiarity of the technology involved in the project as familiar or unfamiliar. The more familiar the technology the lower the associated technological risk. State all risks, their likelihood of causing delays or cost over-runs, and a strategy to minimise such risks.

• Test Specifications and activities

Describe the testing strategy to be used. List specific resources required for testing, including staff, hardware and applications that might be rendered unavailable during testing activities.

• Constraints

Constraints are requirements that impose limitations or boundaries within which the system must operate. As such you must consider requirements of time, cost, legal, government and departmental policy, and specific technical requirements.

• Other assumptions

List any other assumptions

• Success measures

Describe the success measures by which the product review can be assessed.

Cost benefit analysis

This is a critical analysis step. Where measurable benefits have been identified for alternative products then you must undertake a cost benefit analysis to support the comparison of these alternatives.

The costs to be shown are the total costs for the project, including those costs which will be funded from budgets outside of the control of this project.

Briefly summarise the costs and benefits (savings) of the proposed solution. All costs are considered tangible (capable of being expressed as dollar values). No costs are described as intangible.

Table 5: Costs (2 cols)

Costs
Purchase price
Initial setup cost
Implementation cost
Running cost
Site license cost
Renewal of license
Enhancement cost
Consulting cost
Training Cost
Staffing cost
paper cost
forms & procedures

Table 6: Benefits (Savings as $ value) (2 cols)

Benefits
Staff reduction
Better throughput
Meeting Management Information needs
Response time
Productivity improvement

Summary

Selecting the correct HRMIS can greatly enhance an organisations self-knowledge and can add significantly to it's intellectual capital.

The selection process must be based on the organisations HR requirements. Selection criteria are drawn up and agreed against those requirements which enables research into the most applicable HRMIS to meet those needs.

Select HR information management system: Worksheet1

2002_329_036 July 2003