HR Administration and HRIS Module 06
HR Administration and HRIS
Module 06
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
Module 5 Objectives Understand the basic role of job analysis in human resources, and explain the role of HRIS
in supporting job analysis. Discuss the complexity of HR administration and the advantages of an HRIS over a “paper-
and-pencil” HR operation. Discuss the advantages of service-oriented architecture (SOA) of the HRIS. Discuss the advantages and disadvantages of each of the four structural approaches to HR
administration. Understand how legal compliance with government mandates is an important part of HIRS
functionality. Understand employee and manager self service systems.
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CHAPTER 10
HR Administration and HRIS
TRANSACTIONAL HR ACTIVITIES
Transactional Activities Make Up 65-75% Of All HR Activities.
Examples Of HR Administration Include:
Benefits Administration
Record Keeping
Employee Services.
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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INTRODUCTION TO HR ADMINISTRATION AND THE HRIS ENVIRONMENT
HRIS Employee Database (BEIM) Must Be Carefully Constructed
Record And Repository For All Relevant Employee Information
Must Be Created Prior To Other Modules For Programs
The Role Of HRIS Is To Enhance Efficiency - Reducing Costs) Effectiveness - Adding Value For ‘Internal’ Customer
Satisfaction
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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JOB ANALYSIS
Job Analysis The Process Of Systematically Obtaining Information
About Jobs By Determining The Duties, Tasks, Or Activities Of Jobs,.
Job Descriptions Define The Working Contract Between The Employee
And The Organization The “Heart” Of The HRM System Critically Important That They Be Accurate And
TimelyHR Department Should Capture And Store The Results Of The Job Analysis And Job Descriptions Within The HRIS
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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STEPS IN JOB ANALYSIS
1. Indentify Sources Of Information About The Job
2. Identify The Type Of Job Information Or Data
3. Determine The Methods Of Collecting The Job Data
Use Standardized Techniques To Do Job Analysis (e.g. Functional Job Analysis, The Position Analysis Questionnaire System, The Task Inventory Analysis, And The Critical Incident Method
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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HRIS APPLICATIONS IN JOB ANALYSIS
The Utilization Of Technology Has Dramatically Increased The Availability Of Information Supporting Job Analysis And The Convenience Of Conducting Job Analysis.
O*Net Database hr-guide.com Vendors Offer Stand-alone Products Or Components
Of A Larger Product Offering. Completing Job Analysis And Deriving Job Descriptions
Can Be Accomplished Through Online Survey Techniques.
Maintaining Accurate Job Descriptions Can Also Be Aided By An HRIS.
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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HR ADMINISTRATION & HRIS
Can Improve Efficiency Of HR Administration:
Can Improve Data Accuracy
Can Speed The Process Of Building Reports
Can Support Differences In Reporting Mandated By
Global Governmental Jurisdictions
Can Support Secure Global Distribution Of Data
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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ENABLING ARCHITECTURE
Service Oriented Architecture (SOA)
Collection Of Internal And External Services That Can Communicate With Each Other
Extensible Markup Language (XML)
Allows Data Sharing Across Different Information Systems Across The Internet
Improves Interface Technology Through Platform Independence And Protocols
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE
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SOA BUSINESS MODELING PROCESS Figure 10.1
SOURCE: Marks and Bell (2006, chap. 3).
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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ADVANTAGES OF XML-ENHANCED SOA
Improved Security
Enhanced Performance
Added Auditing & Change Capabilities
Enables Alternate Delivery Models
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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TYPICAL HRM ADMINISTRATION SERVICE DELIVERY ALTERNATIVES Figure 10.2
Self-service portal
Shared service center
Outsourcing Offshoring
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THEORY AND HR ADMINISTRATION
Resource-Based Theory
Physical, Organizational & Human Capital
Innovative Combinations Of Technology, Systems & Intellectual Capital Generate Competitive Advantage
Eg. Wal Mart’s Just-in-time Supply Chain Management
Transaction Cost Theory
Choose To Purchase Goods And Services They Need In The Competitive Marketplace Or Make Those Goods And Services Internally
Make Or Buy. Eg., Full-time Vs Temp Employees
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE
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SELF SERVICEC PORTALS AND HRIS
Employee Self-Service (ESS) HR Portals
Provide An Electronic Means For A Company’s Employees To Access Its HR Services And Information.
Manager Self-Service (MSS) Portals
Specialized ESS Portal Designed To Allow Managers To View Extensive Information About Their Subordinates And Perform Many Of Their Administrative Tasks Electronically.
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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COMMON SELF SERVICE APPLICATIONS
Employee Self-Service Distribution Of Pay Advice; Administration Of Leave;
Update Personal Details; Administer Training; Employee Surveys; Distribute Reports; Timesheet Entry
Manager Self-Service Complete Job Requisitions; View Resumes Of
Prospective Applicants; Performance Appraisals, View And Prepare Merit Increases, Viewing Subordinate Salary, Performance, And Training Histories
Non-Employee Self-Service Job Postings And Applications
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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CommunicationsBenefits Services Personal Data Development
Review company communications
Research and view plan rules and requirements
Update emergency contact, address, telephone information
Enroll in training courses
Access company policies or procedures
Enroll in cafeteria-style programs (medical, dental, insurance)
Correct errors in personal data (degree, graduation date)
View completed training
Access HR policy manuals and e-mail inquiry/help request
Add and/or delete dependents
Change W-4 withholding forms
Access e-learning internal/external courses
Complete employee surveys or 360o feedback data
Model retirement and/or access 401K savings investment records
View previous/current pay and performance information
View/apply for internal job vacancies
View/respond to personal information requests from HR
Model health plan alternatives’ costs (e.g., HMO, PPO)
Enter time reports, vacation/sick days, and travel expense reports
Complete employment tests for new jobs
SAMPLE EMPLOYEE SELF-SERVICE (ESS) FUNCTIONALITY Table 10.1
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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EVALUATION OF SELF SERVICE PORTALS
Advantages Improved Speed & Quality Of Service Reduced Enquiry Transactions &
Dependency On HR Which Reduce Costs
Disadvantages Security Breaches & Identity Theft Data Privacy Admin Staff Pushing Admin Work To Others
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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SHARED SERVICE CENTERS (SSCs) Shared Services
A Collaborative Strategy where Staff Functions Are Concentrated In A Semi-autonomous Organization And Managed Like A Business Unit To Promote Greater Efficiency, Value Generation And Improved Service For Internal Customers. (Goh et al. 2007, p. 252)
Flexibility Over Control
Services Covered: Finance, HR, IT, Purchasing, Real Estate Mgt., Legal, General Admin, Talent Mgt., Fleet Mgt.
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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SHARED SERVICE CENTERS To Demonstrate Its Value To The
Organization, SSCs Should Establish Measures/ Metrics That Demonstrate:
Customer Satisfaction Levels
Productivity
Cost Controls
Quality
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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FUNCTIONS IN SHARED SERVICES Figure 10.3
SOURCE: Powell (2004).
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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SHARED HR SERVICES
Internal HR Dept. As A Strategic Business Unit (SBU) Competes With Outside Providers For Providing These Services To Other Internal Departments
Costs
Quality
Value
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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EVALUATION OF SHARED SERVICES
Advantages: Focus On Delivering Timely, High Quality
Transactions; Focus On Customer Satisfaction; Encourage Efficiency And Standardization; Facilitate Development Of Measures Of Efficiency, Quality, And Customer Responsiveness
Disadvantages: Costs Overriding Long Term Quality; Lack Of
Synergy; Power Shifts Between Depts; Depersonalization (Technology Replacing People Touch)
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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OUTSOURCING AND HRIS
Practice Of Contracting With Vendors To Perform HR Services And Activities
Focus On Core Competencies – Core & Non-core Functions/ Processes
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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HR PROCESSES OUTSOURCED Figure 10.4.
SOURCE: EquaTerra (2007, p. 4).
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE
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TYPES OF HR OUTSOURCING Discrete/ Selective Outsourcing
Outsourcing Only Particular Function (Eg., Recruitment) Or Part Of A Function (Eg., Executive Recruitment)
Multi-process/ Blended Outsourcing Outsourcing All Of One Or More Related HR
Functions (E.G., Recruitment And Selection; Defined And 401K Retirement Plan Administration)
Total Outsourcing Having All, Or Nearly All, HR Functions
Handled By One Or More External Vendors 26Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource
Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
SOURCE: EquaTerra (2007, p. 4).
SELECTIVE VERSUS COMPREHENSIVE OUTSOURCINGFigure 10.5
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE
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EVALUATION OF OUTSOURCING
Advantages
Cost Savings
Performance
Improvements
Flexibility
Focus On Core
Activities
Disadvantages Loss Of Control
Strategic Benefits Realized By Very Few
Loss Of Knowledge or Internal Expertise
Loss Of Jobs – Insecurity
Managing Costs
Costs Of Mismanagement
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE
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OUTSOURCING
Backsourcing Bringing HR functionality back “in-house”
after originally outsourcing
Offshoring HR Outsourcing with Vendors Outside The
Country
Enabled By Broadband & Internet Technologies
Primarily Utilized To Reduce Costs And Increase Profits 29
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
SAGE Publications, Inc.
SOURCE: Hatch (2004, p. 14).
MOTIVATIONS FOR OFFSHORING Figure 10.6.
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE
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TYPES OF HR OFFSHORING
Offshore Ownership
Opening A Subsidiary
Joint Venture
Purchasing An Existing
Firm.
Offshore Outsourcing
Traditional Contractual Relationship With An Existing Firm
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE
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OFFSHORING
HR Managers Reported That Most Common Offshoring Includes: Manufacturing (43%) IT (29%) Computer Programming (22%), Customer Call Centers (29%), HR Functions (16%).
Esen, 2004
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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CONSIDERING OFFSHORE OWNERSHIP?
Higher Risk Associated With Offshore Ownership
Important to Consider Availability Of Employee Knowledge, Skills, And
Abilities Information And Communication Systems
Compatibility With HRIS Government Regulations And Legal Employment
Regulations Political Stability Of The Country And Employee
Security Cultural Differences 33
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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LEGAL COMPLIANCE U.S. Employment Laws Underpin The General
Principles Used In The Practice Of HRM. Compliance With Local, National, International
Labor Laws EEO, AA, Employment Awards/ Agreements, Health &
Safety HRIS Assists In:
Increasing Efficiency, Quality, And Cost Reduction In Fulfilling Reporting Requirements
Accurate, Timely Recordkeeping And Reporting Better Tools: Self Reporting; Electronic Report
Submission Enhancing Data Privacy & Security: ‘Need To
Know’ Basis34
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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HR ADMINISTRATION AND EQUAL EMPLOYMENT OPPORTUNITY
U.S. Civil Rights Act Of 1964, Title VII Provides EEO Requirements
Additional Requirements for Federal Contractors (with over $50K in business)
Affirmative Action Plan (AAP) Age Discrimination In Employment Act (ADEA) Americans With Disabilities Act (ADA
Equal Employment Opportunity Commission (EEOC)
Gathering Data Investigating Alleged Violations Bringing Legal Charges Against Employers Who Fail
To Comply35
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EEO/AFFIRMATIVE ACTION PLAN (AAP) ADMINISTRATIVE FUNCTIONSFigure 10.7
AA planning and program
monitoring
EEO/AAP legal support
EEO recordkeeping and reports
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EEO-1 REPORT (Standard Form 100)
Employers With 15 Or More Employees Must Keep Records Regarding Compliance With
Law Based Category (Professional, Technical, Managerial, Craft)
Sex Race/Ethnicity
Revised Reporting Instructions Include Designated Racial/Ethnic Categories Columns For Reporting Individuals Who Specify More
Than One Race/Ethnicity Employees “Self-identify” Rather Than Relying On
The Employer’s Visual Categorization (EEOC, 2006)
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EEO-1 CHANGES AND HRIS
Recent Changes to EEO-1 Reporting may cause organizations to need to update their systems
Track Race Separately From Ethnicity
Separate Codes For Asian And Native Hawaiian Or Other Pacific Islander
Modify Limitations On Reporting to Allow Reporting of More than One Race
Insure Queries Can Identify All Individuals In A Particular Category (E.G., American Indian), Even When Individuals Self-identify As Two Or More Race Categories
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SOURCE: U.S. EEOC (2006).EEO-1 REPORT Figure 10.8
39Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
OCCUPATIONAL SAFETY AND HEALTH ACT (OSHA) RECORD KEEPING
Developed To Establish That Employers Must Provide A Workplace Free Of Known Hazards Likely To Cause Death Or Serious Injury
Requirements For Businesses With 11 Or More Employees, OSHA
Compliance Officers Are Required To Arrive Unannounced For An OSHA Inspection
Required To Notify OSHA Within 8 Hours Of Any Accident Involving Fatality Or In-patient Hospitalization Of Three Or More Covered Employees
Complete An Annual OSHA Form 300
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OCCUPATIONAL HEALTH AND SAFETY ADMINISTRATIVE FUNCTIONS Figure 10.9.
Accident reporting and recordkeeping
Safety and Health training records
Workers’ Compensation
Claims
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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OSHA Form 300 Figure 10.10
SOURCE: U.S. Department of Labor (2004).
42Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource
Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.
IMPROVED GOVERNMENTAL REPORTING WITH TECHNOLOGY
HRIS Records Can Be Established at time of Employee Application
Simple Queries Can Secure Required Employee Data
Required Reporting Information Can Be Sent Quickly
Reduced Disruption of Operations HR Employees Can Handle The Complete Reporting
Function Changes In Mandated Reporting Requirements can
be Handled Mechanically By HR Electronic Reporting Ensures Timely Receipt Of
Reports43
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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PRIVACY AND SECURITY IN HRIS
The Underlying Principle For Database Security And Individual Privacy Is The ‘Need To Know’ Rule.
Privacy Act 1974
Fair Credit Reporting Act 1970
Family Education Rights and Privacy Act 1974
Electronic Communications Privacy Act 1986
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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HRM AND THE BALANCED SCORECARD
Balanced Scorecard Both a Management And Measurement System “Enables Organizations To Clarify Their Vision And
Strategy And Translate Them Into Action, . . . [Providing] Feedback Around Both The Internal Business Processes And External Outcomes To Continuously Improve Strategic Performance And Results” (Arveson, 1998).
Measures Reflect The Value-added Nature Of HRM In Leveraging Human Capital and are Linked To The Strategic Goals Reflected In A Firm’s Balanced Scorecard.
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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Figure 9.11. Balanced Scorecard Components
SOURCE: Arveson (1998).
Figure 10.11. Balanced Scorecard Components
46Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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SAMPLE HR-BALANCED SCORECARD LINKAGE Figure 10.12
LEARNING & GROWTH: HR Training to develop new employee skills
INTERNAL PROCESSES:Improved productivity
CUSTOMER On-time delivery Customer satisfaction
FINANCIAL:Return on Assets (Human Capital)
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
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ALIGNING THE HR SCORECARD & ORGANIZATION BALANCED SCORECARD
1. Specify The Business Strategy To Be Supported (E.G., Customer Retention)
2. Identify Leading (E.G., On-time Order Delivery) And Lagging (E.G., Customer Satisfaction Levels) Indicators
3. Identify Associated Internal Processes (E.G., Worker Productivity, Product Quality)
4. Identify HR Linkages (E.G., Training, Rewards)5. Specify The HR Strategy (E.G., Offer Enhanced Productivity
Training For Workers To Reduce Product Time-to-market And Insure On-time Order Delivery)
6. Measure: Worker Productivity Increase, On-time Deliveries, Customer Complaints To Demonstrate The Strategic Value Of HR Training in the “Learning” And “Growth” Balanced Scorecard Categories
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SAMPLE HR SCORECARD MEASURES LINKED TO FIRM BALANCED SCORECARD Figure 10.13
HR Functions To Support Learning & Growth Category (E.G., Employee Development)
Backup Talent Ratio—value CreationCompetency Development Expense Per Employee—cost ControlNo. Of “Special Projects” For Employee Development—value CreationNo. Of Employees With Development Plans—cost Control
HR Internal Efficiency Measures To Support Financial Category
HR Departmental Expense/$ Of Sales Revenue—cost ControlHR Sales Training Expense/$ Of Sales Revenue—value CreationHR Recruitment Expense/R&D Hires—cost ControlNo. Of Patents Per R&D Hires—value Creation
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Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012
SAGE Publications, Inc.