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Human Resource Management Software (Case Study) NAME – SHWETA NARENDRA KARIA ADM NO. – DPGD/JL07/0085 1
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Page 1: Human resource management system

Human Resource Management Software(Case Study)

NAME – SHWETA NARENDRA KARIA

ADM NO. – DPGD/JL07/0085

SPECIALIZATION – HUMAN RESOURCE MANAGEMENT (HR)

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HUMAN RESOURCE

MANAGEMENT

SOFTWARE

Extensive research on HRMS OR HRIS

Executive summary

The case study Human resource management system (HRMS) or human resource information system covers entire picture of software which constitute attraction, selection, retention, development, and utilization of labor resource in order to achieve both individual and organizational objectives. Case study also cover bright picture of Human Resources Information Systems (HRIS) which is an integration of HRM and Information Systems (IS). Also the function & important

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uses of HRIS or Human resource Information system & how it helps the helps HR managers to perform HR functions in a more effective and systematic way by using technology. The case study covers uses from acquire, store, manipulate, analyze, retrieve, to distribute pertinent information regarding an organization's human resources. This project gives also clear indication uses of How to implement and how to take precaution while implementing HRMS in organization. It emphases on fact that amount of degree HRMS can facilitate on decision making. Project mainly covers components or important available Modules in the market in deeply. Also case study given real market information about top 5 players or system running in market. This case study ends with critical analysis as well the conclusion regard to project.

Table of Contents

1.Introduction 6

2.purpose 8

3.Advantages of HRMS 9

4.How to Select HRMS 11

5.Payroll module 15

6.training & learning management module

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7.Man power planning Module 19

8.Recruitment Module 22

9.Leave management Module 23

10. Performance Appraisal 25

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Module

11. 5 Steps to select HRMS 30

12. Security of HRMS 34

13. Top 5 Market Player or System

37

14. Implementation of HRMS 41

15. Impact of implementation 45

16. Barriers to succession of HRMS

57

17. Critical Analysis 58

18. Conclusion 59

19. Bibliography 60

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Meaning

What is Human resource Information System?

The Human Resource Information System (HRIS) is a software or online solution for the data entry, data tracking, and data information needs of the Human Resources, payroll, management, and accounting functions within a business. Normally packaged as a data base, hundreds of companies sell some form of HRIS and every HRIS has different capabilities. Pick your HRIS carefully based on the capabilities you need in your company.

OR

A Human Resource Management System (HRMS, EHRMS), Human Resource Information System (HRIS), HR Technology or also called HR modules, refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin on software that integrates information from different applications into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible

A Human Resource Information System is a systematic procedure for collecting, storing, maintaining, retrieving, and validating data needed by an organization about its human resources, personnel activities, and organization unit.

An HRIS need not be complex or even computerized. HRIS can be as informal as the payroll records and time cards of a small business, or as extensive and formal as the computerized human resource databases of major manufacturers, banks, and governments. HRIS can support long range planning, with information for labor force planning, and supply and demand forecasts; staffing with information on equal employment, separations, and applicant qualifications; and development with information on training program costs and trainee work performance. HRIS can also support compensation programs

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Typically, the better The Human Resource Information Systems (HRIS) provide overall:

Management of all employee information. Reporting and analysis of employee information. Company-related documents such as employee handbooks, emergency evacuation

procedures, and safety guidelines. Benefits administration including enrollment, status changes, and personal information

updating. Complete integration with payroll and other company financial software and accounting

systems. Applicant and resume management.

The HRIS that most effectively serves companies tracks:

attendance and PTO use, pay raises and history, pay grades and positions held, performance development plans, training received, disciplinary action received, personal employee information, and occasionally, management and key employee succession plans, high potential employee identification, and applicant tracking, interviewing, and selection.

An effective HRIS provides information on just about anything the company needs to track and analyze about employees, former employees, and applicants. Your company will need to select a Human Resources Information System and customize it to meet your needs.

With an appropriate HRIS, Human Resources staff enables employees to do their own benefits updates and address changes, thus freeing HR staff for more strategic functions. Additionally, data necessary for employee management, knowledge development, career growth and development, and equal treatment is facilitated. Finally, managers can access the information they need to legally, ethically, and effectively support the success of their reporting employees.

Human Resource Information Systems (HRIS): Providing Business with Rapid Data Access, Information Exchange and Strategic Advantage.

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Purpose

The function of Human Resources departments is generally administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Efficient and effective management of "Human Capital" has progressed to an increasingly imperative and complex process. The HR function consists of tracking existing employee data which traditionally includes personal histories, skills, capabilities, accomplishments and salary. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing specialized Human Resource Management Systems. Due HR executives rely on internal or external IT professionals to develop and maintain an integrated HRMS. Before the "client-server" architecture evolved in the late 1980s, many HR automation processes were relegated to mainframe computers that could handle large amounts of data transactions. In consequence of the high capital investment necessary to purchase or program proprietary software, these internally-developed HRMS were limited to organizations that possessed a large amount of capital. The advent of client-server, Application Service Provider, and Software as a Service or SaaS Human Resource Management Systems enabled take increasingly higher administrative control of such systems.

Human Resource Management Systems encompass:

1. Payroll 2. Leave management system3. Benefits Administration 4. Performance appraisal module5. Recruiting 6. Training/ Learning Management System (LMS)7. Performance Record

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ADVANTAGES OF HRIS

To make a human resource department more effective and efficient new technologies are now being introduced on a regular basis so make things much simpler and more modernized. One of the latest human resource technologies is the introduction of a Human Resources Information System (HRIS); this integrated system is designed to help provide information used in HR decision making such as administration, payroll, recruiting, training, and performance analysis.

Human Resource Information System (HRIS) merges human resource management with information technology to not only simplify the decision making process, but also aid in complex negotiations that fall under the human resource umbrella. The basic advantage of a Human Resource Information System (HRIS) is to not only computerize employee records and databases but to maintain an up to date account of the decisions that have been made or that need to be made as part of a human resource management plan.

The four principal areas of HR that are affected by the Human Resource Information System (HRIS) include; payroll, time and labor management, employee benefits and HR management. These four basic HR functionalities are not only made less problematic, but they are ensured a smooth running, without any hitch. A Human Resources Information System (HRIS) thus permits a user to see online a chronological history of an employee from his /her position data, to personal details, payroll records, and benefits information.

The advantage of a Human Resource Information System (HRIS) in payroll is that it automates the entire payroll process by gathering and updating employee payroll data on a regular basis. It also gathers information such as employee attendance, calculating various deductions and taxes on salaries, generating automatic periodic paychecks and handling employee tax reports. With updated information this system makes the job of the human resource department very easy and simple as everything is available on a 24x7 basis, and all the information is just a click away.

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In time and labor management a Human Resource Information System (HRIS) is advantageous because it lets human resource personnel apply new technologies to effectively gather and appraise employee time and work information. It lets an employee's information be easily tracked so that it can be assessed on a more scientific level whether an employee is performing to their full potential or not, and if there are any improvements that can be made to make an employee feel more secure.

Employee benefits are very crucial because they help to motivate an employee to work harder. By using a Human Resource Information System (HRIS) in employee benefits, the human resource department is able to keep better track of which benefits are being availed by which employee and how each employee is profiting from the benefits provided.

A Human Resource Information System (HRIS) also has advantages in HR management because it curtails time and cost consuming activities leading to a more efficient HR department. This system reduces the long HR paper trail that is often found in most HR divisions of companies and leads to more productive and conducive department on the whole.

Application of HRIS

HRIS can be applied in the following areas of HRM

HR planning Succession planning Work force planning Work force dynamics analysis Staffing Applicant recruitment and tracking Employee data base development Performance management Learning and development Compensation and benefits Pay roll Job evaluation Salary survey Salary planning International compensation Benefits management Develop innovative Org. Structure Develop IT

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How to select human resources software system or why to select –

Human Resources information technology is essential for companies to manage their benefits plans and their employee information. Benefits management technology is no longer a “nice to have,” but a necessity to help HR manage both a sea of information and the money spent on benefits plans, as HR faces limited resources and constantly changing data. But how do HR and other executives know they are selecting the best HR information technology to manage all of the details, and that the solution they select will stand the test of time?

Following are the key questions to ask and answer in the process of selecting Human Resources information technology.

What is the degree of flexibility and scalability that the HR information technology software provides? HR professionals should determine if the software can import data from multiple Excel spreadsheets, databases, and paper documents and the level with which it can interface with all kinds of systems and data.

The software should be able to take in and filter information from multiple sources. Ideally, this process should also be automated. Many online enrollment solutions require that data be manually manipulated before it can go to a carrier to update their systems. Automation of the update format, transmission schedule and delivery method can help to eliminate billing and eligibility issues.

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Will the software be able to accommodate HR’s company and benefits carriers’ rules? A truly capable enrollment engine will evaluate each enrollment activity and apply any necessary combination of rules, messages, prompts, and options specifically designed to meet the exact eligibility requirements desired. The software should accommodate any eligibility rules that the company and carriers have.

Will the HR information technology be able to grow and scale with the organization? HR should assess the technology’s ability to grow as the company brings on new employees, offices, benefits changes, and rules. HR should ask about the thresholds for each of these elements.

Is the HR information technology software able to integrate with other systems? Payroll and other functions often share much of the same information as benefits management. HR can obtain greater efficiencies when data and other employee information entered into one system can be shared with another system.

Who is responsible for implementing, or building, the solution? What level of training is involved? Some solutions require the client to be very involved with the initial implementation, which can be overwhelming for already busy HR administrators.

HR should have a clear understanding of the level of training and technical expertise that will be required and the amount of time expected. Questioning solution providers on this topic can provide insight into subtle areas that might initially appear simple, yet involve significant technological expertise. HR can then determine specific tasks that may be so cumbersome as to realistically impede completion, potentially reducing HR information technology value and ROI.

If training is involved, is there a charge? Costs of training should also be assessed - including time away and travel expenses for off-site travel. HR needs to become aware of all hard and soft costs involved in the HR information technology adoption.

Who will own the data? The answer to this question should be the Human Resources organization. Companies should be able to transport their data to any Application Service Provider (ASP). If the data resides on a carrier’s proprietary server, the company may sometimes be charged additional fees should it switch carriers.

What types of maintenance and upkeep are required? When software is installed on a company’s on-site workstations or servers, regular updates to that technology are often required and may be cumbersome to plan for and manage. Updates to HR information technology are often made automatically with software available online through an Application Service Provider (ASP) or Software as a Service (SaaS) model.

What security measures are built into the HR information technology? If the software is available online, through an ASP or SaaS model, the provider should offer daily backups, backup servers, and added protective layers. Additional systems and procedures should be in place to safeguard information from being lost or accessed by unauthorized personnel. HR, in consultation with other managers, should have exclusive authority to decide who will be allowed access to the HR information technology and to what degree.

Will employees be able to enroll in benefits plans and make changes in real-time to their personal data and plan choices? Employee access should be a given, considering the widespread, general access to computers; 70% of the population has Internet access at home. Employee self-service provides huge potential to save time and money. A good self-service system will guide employees smoothly through entering information about themselves and their dependents.

The system should clearly present the plans available and enable employees to make selections at their convenience, simplifying these actions throughout the process with

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wizards. Employees should also be able to add dependents and change information as necessary, 24 hours a day, seven days a week.

These are additional questions to answer as you assess your organization’s Human Resources information technology needs. Here is the first half of the questions.

Will the technology provide Human Resources with the authority to decide who will be allowed access and to what degree? Along the same vein of providing employee access, the technology should give HR the final say. HR should have the authority to approve all data before it is transmitted to carriers, and should also determine the extent to which employees and others have access.

What types of reporting capabilities are available from the HR information technology? Reporting technology should offer multiple views and formats (spreadsheet, PDF, html), big picture assessment and the ability to drill down to enhance decision-making. HR should be able to assess, at any time, enrollments in specific plans, outstanding actions, and changes in employee demographic information in relation to benefits and other employee data.

Does the software offer specific features to help HR save time? Depending on its own departmental needs, HR might want to inquire about the technology’s ability to process information in batches, manage notifications and billing for COBRA policies, provide self-billing and bill reconciliation tools, and specific reporting.

Does the software offer specific features to help HR communicate better with employees? Some programs give HR the flexibility to communicate with employees on a number of levels - via mass email, electronic "bulletin boards," and by specific filter criteria (such as location, department, insurance plans, enrollment status, retirement status, and others) through the HR information technology system. Having a number of means to communicate can further automate processes and help HR to better target messages.

Does the HR information technology system provide a means of checks and balances? In addition to enabling HR to approve transactions, many HR information technology systems also provide capabilities for HR to serve as the gatekeeper in auditing carrier billings to make sure they agree with the data in the system. This can:

--ensure the accuracy of carrier invoices,--save time and money,--assist in the timely delivery of employee enrollments, and--enhance confirmation of eligibility when employees go for care.

How will information be exchanged with carriers? And, who will be responsible for this interaction? Integration of the HR information technology system should be judged not only by the number of carriers with which the software has relationships, but by the type of connection that it enables. Ensuring successful interaction with carriers through a benefits management software requires many steps, including:

--gathering initial implementation data census;--setting up initial integration for the ongoing information exchange;--coordinating daily or weekly interaction to make sure data is received and accurately applied;--reviewing ongoing updates;--ensuring carrier requirements for enrollment are being met in compliance with regulators; and--fostering a proactive relationship with each carrier to improve the relationship of data

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exchange.

Knowing who is responsible for each task is essential to fully understanding a product offering. Each software provider will offer a different level of integration in providing some, to all, of the tasks outlined above. HR should look to work with vendors that demonstrate strong, ongoing, seamless relationships with the company’s selected carriers.

Many providers enable transmission of a generic ANSI 834 file, which may or may not be accepted by the carrier, a factor often influenced by the size of the group. Managers should look for providers that offer clean, validated transfers (ensuring the eligibility of the transaction), customized to each carrier’s needs to avoid issues. They should also look to providers that have a dedicated EDI (Electronic Data Interchange) department to interact with the carrier’s own, specific transfer language.

What level of customer service is provided? Is there an additional charge for service? HR should determine the level of access to “help” that is provided and what constitutes customer service - online help via a database, online chat, email support, conversations with a live person, or a combination thereof. Given the sensitivity of benefits and other HR information, managers should expect a response to inquiries within 24 hours from a direct contact that can help.

What is the cost of the HR information technology system and does it outweigh the benefits? HR should assess the complete cost of the HR information technology system, including all annual, monthly, and one-time charges, alongside the benefits provided. A slightly more expensive system may more than pay for the difference with features that enable employees to maintain their own records and offer greater convenience, time savings, and accuracy. These factors should be considered and weighed in selecting an HR information technology system.

The need for HR information technology systems is increasing. With HR staff finding a vast array of options in HR information technology systems, it is increasingly important to analyze and weigh all options available. Choosing an HR information technology system should be looked at as an investment that will grow with the department and company’s needs. These questions will lead you to the appropriate HR information technology system for your company

Payroll Module

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The Payroll module maintains all information on your employees. This includes keeping track of sick and vacation hours accumulated and used during the year. Each employee record includes a Human Resources information page where you may enter notes relating to job history and performance reviews.

The Payroll module allows for calculation of two additional local withholding taxes in conjunction with the Federal and State withholdings. Earned Income Credit calculations are also included as an option.

You may create an unlimited number of deductions and miscellaneous compensations to assign to employees. Deductions and miscellaneous compensation may be calculated as taxable or tax exempt.

Payroll module includes a Direct Deposit function. Direct Deposit requires the activation of an Electronic Transaction Network account. The interface for deposit transmittal to the Electronic Transaction Network is already included in the Payroll module.

The Payroll module contains the options listed below:

Maintain Employee Information Enter Time Cards Post Time Cards

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Calculate Pay Maintain Employee Deductions Maintain Miscellaneous Compensations Void Pay Check Electronic Transaction Network Interface Maintain Payroll Divisions Payroll Tax Tables Maintain Tax Codes Payroll Reports

Training & Learning management module

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The training module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a Learning Management System if a stand alone product, allows HR to track education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs, web based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same system. Sophisticated LMS allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics.

Many organizations have gone beyond the traditional functions and developed human resource management information systems, which support recruitment, selection, hiring, job placement, performance appraisals, employee benefit analysis, health, safety and security, while others integrate an outsourced Applicant Tracking System that encompasses a subset of the above.

A learning management system (LMS) is software for delivering, tracking and managing training/education. LMSs range from systems for managing training/educational records to software for distributing courses over the Internet and offering features for online collaboration. In many instances, corporate training departments purchase LMSs to automate record-keeping as well as the registration of employees for classroom and online courses. Student self-service (e.g., self-registration on instructor-led training), training workflow (e.g., user notification, manager approval, wait-list management), the provision of on-line learning (e.g., Computer-Based Training, read & understand), on-line assessment, management of continuous professional education (CPE), collaborative learning (e.g., application sharing, discussion threads), and

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training resource management (e.g., instructors, facilities, equipment), are dimensions to Learning Management Systems.

Most LMSs are web-based to facilitate access to learning content and administration. LMSs are used by regulated industries (e.g. financial services and biopharma) for compliance training. It is also used by educational institutions for enhance and support classroom teaching and offering courses to larger population of learner across the globe.

Some LMS providers include "performance management systems," which encompass employee appraisals, competency management, skills-gap analysis, succession planning, and multi-rater assessments (i.e., 360 degree reviews).

For the commercial market, some Learning and Performance Management Systems include recruitment and reward functionality.

LMSs are based on a variety of development platforms, like Java EE based architectures, Microsoft .NET, PHP, and usually employ the use of a database back-end. Some systems are commercially developed and have non-free software licenses or restrict access to their source code, Other systems are free and open-source and frequently used. Other than the most simple, basic functionality, LMSs cater to, and focus on, different educational, administrative, and deployment requirements.

MANPOWER PLANNING MODULE

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MANPOWER PLANNING…headcount analysis, turnover, organization charts

How many employees do we have to hire, train or promote this year? 

 The Manpower Planning module manages the employee inventory and handles a number of related issues, including:Maintaining an inventory of the number of required job positions by Branch, Department, and Section based on the organizations Manning objectives

 Calculating actual head count and determining variance between required and actual

 Providing interface to third-party applications such as OrgPlus and Visio for printing organization charts

 Calculating turnover for the current base period

 

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Projecting turnover for a future period using past results 

Including retirement projections to determine future vacancies  Integration with Succession Planning

While the Manpower Planning module provides quantitative forecasting, when combined with the Succession Planning module, they provide a forecasting tool that may be used to predict the number of people the organization will have to hire, train and promote in a given period. Succession Planning provides more qualitative features.  How many employees with appropriate qualifications (education, skills and training) will be available for promotion to management type jobs this year?  Who in our present work force is qualified today to be considered for an opening as a marketing manager? SUCCESSION PLANNING…providing adequately trained and qualified personnel at all levels Perhaps the greatest benefit of an integrated human resource and payroll system is the instant, on-demand access to information you need to make decisions quickly. By enabling authorized personnel to instantly lay their hands on detailed applicant and employee information, HRM helps your organization work smarter, faster, and more efficiently. For example, Succession Planning's capability helps you instantly scan your pool of applicants, as well as internal resources, to match qualifications to open positions. Not only does this make it easier to find the right candidate for the right position, you may also identify potential skill shortages in your workforce, enabling you to proactively train and hire for future skill requirements. The prime objective of Succession Planning is the provision of adequately trained and qualified personnel to meet the future staffing needs of the organization. Accomplishing this requires a quantitative and qualitative understanding of the past and planning for the future. The Manpower Planning and Succession Planning modules deliver in this regard. Job Requirement

One of the pre-requisites of Succession Planning is the maintenance of job position data. This requires entry of information on the education, skills and training requirements of each job position.  

Qualification Gap Analysis

This is a HR planning and development feature that may be used by the HR department or at the departmental level. The Dynamic Selection mechanism is first used to select the set of employees for whom the gap analysis will be done.

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 The Generate Gap function is then used to match the qualifications for each individual against the requirements for the substantive position to which the individual is assigned. Gap data may be displayed on the screen or extracted to a workfile. The Extract to Workfile feature exports the gap data to an Excel spreadsheet which then provides a printed copy of the results.  Information on employees who are qualified, over-qualified or under-qualified is then available. For under-qualified employees who require training, the integrated Training module may be accessed directly. Employees may then be listed for recommended training to address the identified qualification gaps.  Job Forecasting

Job Forecasting addresses the issues of assessing the potential of employees to fill future positions. It uses current qualifications data of the selected employees and matches against  the required qualifications for future positions.  The identified gaps determine the training that will be needed to enable employees to meet the required. Career Paths

Whether employees are promoted within relatively specialized career lines or be given broad exposure to a variety of jobs depends on both the organization's policy and individual choice.  It is a function of organizational needs and employee expectations. Within a given organization, its members come to anticipate a certain pattern of job progression based on what they have observed of the internal mobility of other employees. The system provides a facility to display various career paths based on the organization structure. Various career path options may be discussed with employees and graphically illustrated. Job Search

The Succession Planning module includes a Job Search feature. The vacant position is first selected.  The qualification search parameters are then specified and may include any combination of Education, Skills and Training. The system may also be directed to search among certain selected employees and/or applicants (from the applicants database). With the Search feature, the system searches the target databases and provides a short-list of candidates who meet the stated requirements. Recruitment may then be focused on the short listed candidates.  All the above and much more.

Recruitment Module

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The HR Recruitment Module is designed to help HR manage a core function within Human Resources. This module forces a new job request to go through a strict workflow before HR can finally begin trying to find candidates to fill the role. The main benefit for HR is that a job request must have certain information from the manager before being submitted, if the information is not good enough then it can be rejected and sent back to the requestor with comments as to why the information is not good enough. The system can also be set up to be a Mail In Database, if this is done then external applications can be received into the system and these can be monitored by HR. If successful then the applicant can be created as a Candidate in the system.

Job Requisitions Skill sets and Competencies for Vacancies Recruitment Channels, i.e. Press, Agencies Links to existing Website On-line application Fully automated Interview Process Correspondence, i.e. Offer Letters, Rejections, Terms & conditions Built in reports including Equal Opportunities Links to People and Training Module

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Leave Management System(LMS)

LMS is a comprehensive and flexible leave management system enabling you to enter and manage leave requests according to your rules. It is an integrated module of WorkTech Time that allows you to:

Capture Employee Leave Requests

Enter and cancel requests. View outstanding leave requests, including present status. View leaves balance, including current position and look-forward.

Send Notifications Automatically

Approval/rejection of leave request. Request beyond rule boundaries.

Track Leave Entitlements

View outstanding open leave requests (per shift, per employee, per crew, etc.). Manage leave taken vs. leave approved and leave time available

Have Staff Availability Information at Your Fingertips

Availability by crew Availability by individual Maintain multiple schemes and rules for different employee groups.

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User Function

Employee Enter a leave request

  Cancel a leave request

  Appeal a declined request

  View outstanding leave requests, including current status

  View leave balance, including current position and look forward

  View work schedule based on shift and holiday schedule.

  View personal details.

Supervisor View outstanding open leave requests per shift, per employee, per crew etc.

  Approve or deny leave employees' requests.

  View staff availability. i.e., view combined work schedules and leave requests.

  Manage leave taken vs. approved and available to be taken (per employee, crew, etc.)

  Delegate approval or denial of requests.

System Administrator Calculate leave balance, combining leave accrual rules, leave consumption rules and transactions from the hours entered in the system.

  Notify interested parties if rule boundaries (leave consumption rules) have been breached, or when changes in leave requests have been made, using dbNewsT, an optional add-on.

  Re-format look and feel of Web data entry and review pages to suit company requirements.

Appraisal modules

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KRA based

Options to define individual employee KRAs Self appraisal option for each employee Work flow based appraisal system

Appraisal & Key Result Areas

Business Challenge

Employee Performance Appraisals involve a lot of paperwork. Maintaining confidentiality of information is difficult. Collated historical data is unavailable for future reference Isolated information silos.

Benefits Security issues are addressed. Historical data is available for future reference. Centrally maintained work log. Easy movement of documents.

Integrated module.

Competency based appraisal

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The Competency Based Performance Management System

A system for effective performance Competencies or talents are the foundation for people to achieve superior performance in any job. Few organizations, based on research and experience, have a performanceManagement system that contains all the elements necessary for a highlyProductive and motivated workforce management starts with the identification of criticalPositions, agreement on the top hard and soft skills required for those positions and thenProvides the hiring, promotion, training and evaluation practices necessary to put theRight people in the right job.

Provide On-Going Feedback, Coaching, Evaluation, Recognition

Identify Core Positions within the Organization

Identify Key Soft Skills & Competencies for the Positions

Assess Current Skill/Competency Levels of Incumbents and Candidates with Feedback Mechanisms

Provide Training & Development in the Necessary Competencies

Conduct Behavioral Interviewing – the Best Predictors of Future Performance Reflect the Competencies Required in the Performance Appraisal

Establish Competency Performance Expectations for Incumbents

Option to define level / position/ function based competencies for managerial effectiveness

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Self appraisal option for each employee

Work flow based appraisal of managerial effectiveness

360 degree based appraisal

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In human resources or industrial/organizational psychology, 360-degree feedback, also known as "multi-rater feedback," "outsource feedback," or "multisource assessment," is feedback that comes from all around an employee. "360" refers to the 360 degrees in a circle, with an individual figuratively in the center of the circle. Feedback is provided by subordinates, peers, and supervisors. It also includes a self-assessment and, in some cases, feedback from external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with "upward feedback," where managers are given feedback by their direct reports, or a "traditional performance appraisal," where the employees are most often reviewed only by their managers.

The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. Results are also used by some organizations in making administrative decisions, such as pay or promotion. When this is the case, the 360 assessment is for evaluation purposes, and is sometimes called a "360-degree review." However, there is a great deal of controversy as to whether 360-degree feedback should be used exclusively for development purposes, or should be used for appraisal purposes as well (Waldman et al., 1998). There is also controversy regarding whether 360-degree feedback improves employee performance, and it has even been suggested that it may decrease shareholder value .

Configurable managerial attributes for evaluation

Options to define type of questions and rating for each attribute

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Option to define appraisal period and set of managers authorized for this evaluation Work flow based appraisal – both for internal and external appraisers

Five Steps to a Human Resources Software Technology   System

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Interested in a game plan for finding a Human Resources Software Technology system that fits your needs, budget, and company growth? These five steps will help you select a Human Resources Software Technology system.

1. Determine your Human Resources technology needs.

2. Find the Human Resources software system vendors who match your needs.

3. Set up Human Resources Software Technology system demonstrations.

4. Research your short list of potential Human Resources Software Technology systems.

5. Select your Human Resources Software Technology system and obtain approval.

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Determine Your Human Resources Technology Needs

Before you begin the process of setting up demonstrations and evaluating systems, you need to have a good idea of exactly what you need a system to do for you. This is the most important step of the Human Resources Software Technology system selection process. The more detailed you are with this step, the more likely you are to find a system that matches your unique needs.

Ask yourself the following questions to start the process of determining needs:

If you were going to create your own HR technology system, what capabilities would it have?

Exactly what reports would you need? What data do you need to track? Involve other departments such as payroll, training, and risk management to determine

their needs from the system. What capabilities would a system need to have to assist with meeting corporate HR

goals? Determine your desired type of platform. Will you host the software internally or have

the software company host it for you? How much are you are able to spend on a system at one time or per year?/li] Will you change your payroll system, as well, or will you need an interface between your

new HR system and your existing payroll product? Are there any other systems that will need to interface with the Human Resources

Software Technology system, such as time clocks or other HR systems?

Now that you have created a detailed needs list for your Human Resources Software Technology system, create an Excel vendor score sheet for the products you will review. Down the left side of the score sheet, list your HR system needs. Across the top add the HR technology vendor names. These systems will appear similar and you may forget which product offered which feature without this score sheet. This process will make the decision step much easier.

Find the Human Resources Software System Vendors who Match Your Needs

This step is not as easy as it might appear because of the proliferation of Human Resources Technology Software systems. If you are looking for hosted or subscription HR software applications with payroll: search using Google, Yahoo or another search engine. Then, look at a number of vendor websites. With each individual product website, you want to find a feature list to see how many of your basic needs it appears to meet. You also want to ask other HR professionals, in your industry, which systems they use and if they would recommend those systems.

There is an easier way. Search Google, Yahoo or another search engine for HRIS, HRMS or HR software comparison websites and you will find a number of sites dedicated to making this selection process easier. Check out several comparison sites, as these websites vary tremendously in capabilities and features.

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Using the score sheet described earlier, at this point, you should have a list of seven or eight unique vendors. Call each vendor to make sure that each meets your most important needs and budget range. With a single phone call you should be able to get a broad price range and learn whether they offer hosted Human Resources Technology Software systems, purchased Human Resources Technology Software systems or both options.

Set Up Human Resources Software Technology System Demonstrations

Now that you have a detailed list of needs, your spreadsheet, and a list of vendors, it’s time to set up the demos. Involve other staff from different departments where feasible.

With each demo, it’s important to realize you are the prospective customer, thus, you are in control of the demo. Make sure the person doing the demo shows you every capability you have outlined in your list of needs and on your spreadsheet. If you have a particular report you have to have, ensure the sales person shows you that exact report or shows you how that report is created.

Research Your Short List of Potential Human Resources Software Technology Systems

After the demos, you will likely have your decision narrowed down to two or three systems. At this point you want to research these companies. Your research should include checking references, determining how long the company has been in business, their financial standing and the number of Human Resources Software Technology system installations they currently have.

Select Your Human Resources Software Technology System and Obtain Approval

Your decision should be easy, at this point, based on all the work you put in at the front end of the Human Resources Software Technology system selection process. Between your needs, your spreadsheet results, your research, and the system prices, make your best decision.

Gaining management approval, however, might be tricky. Cost justifying an HR technology system is not the easiest process. You will have to sell the value and the benefit of a Human Resources Software Technology system. You’ll need to show how the system will help meet organizational goals.

Part of the reason you involved other departments in the needs assessment step is that a system that benefits multiple departments may show greater value than a system that benefits a single department. Additionally, their early involvement garnered you the support you need when you seek approval for your selected system. So will the spreadsheet you used to assess potential Human Resources Software Technology systems.

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Security for HR records - human resources

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A combination of written policy and effective use of your system's security features is needed to manage issues of data integrity and privacy.

Because employee records are increasingly maintained in computer files, the traditional recordkeeping policies and practices need to be reviewed and updated in light of these technological times. Often more complete than paper records, computer records are full of information that needs to be protected from inaccurate actions as well as from unwarranted use. Three areas, in particular, need to be re-examined: employee right to privacy, management information and legal restrictions.

Employee right to privacy. An electronic system makes it easier to produce lists, combine data and share information. These very qualifies can contribute to a breach of privacy. What constitutes confidential information should be defined in a company privacy policy. For example, some employees may prefer that their personal addresses and telephone numbers not be published on a list. Medical information, for instance, should always be carefully protected.

Management information. Businesses generally want to be close-mouthed about their affairs because of competition and actions management is considering. A primary goal of automation is the ability to produce better management information, but safeguards should exist to protect both the data and ability to produce reports.

Legal restrictions. The type of data that is considered confidential varies from state to state; the HR department should have a current list of the state requirements for employee record-keeping. Safeguards for data entry and use of the information can be handled by written policy and security.

SYSTEM SECURITY

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Security is a series of electronic "doors" a user must unlock to retrieve data and execute functions. The first line of protection is physical access to the computer. If you are on a network system, have the MIS staff describe log-on procedures and explain the level of protection provided.

Even a single-user computer needs to be protected: Use the lock on the hard drive, lock your office, and use a password. Even if you are the only user, set up a password that is not obvious to all (for instance, don't use your middle name) and change it on a regular basis. The password should be on file with the systems department or the controller.

Everyone should use a screen-saver program to prevent the casual browser from viewing the merit program or the new organization chart. Purchase a screen-saver program that allows the end user to set up keystrokes that bring back the screen rather than a program that responds to the touch of any key.

The second set of "doors" is within the HR system itself starting with passwords for log-in. All HRIS packages come with security. The question is how powerful is it? HRIS security features can range from simple to robust. HR applications such as applicant tracking and training will have less security because the information is generally not considered sensitive. Succession planning, on the other hand, is usually designed with powerful security because of the extreme confidentiality of the data.

Before developing security procedures, be sure you completely understand the capabilities of your system. Four questions will help you understand how the computer security works: 1. How does the system control access to records?

Answer example: Person can access all departments except for the Executive Office.

2. How does the system control access to specific data? Is there protection for all fields or only some fields?

Answer example: Only the HR manager is allowed to see salary data for level 12 and above.

3. How does the system control who can manipulate the data?

Answer example: Only the personnel assistant enters new hires, or, the HR director can see everything but change nothing.

4. How does security extend to reporting?

Example: If the training manager, who does not have access to executive salary data, runs a training report by job and pay level, what will result?

These questions get at the fundamental concepts behind system security--records, data and actions. Restricting access to groups of records can be done by company level, by department or by job group. If the system has such capability, it is possible to allow line managers access to their department's data.

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Some PC systems restrict access to screens, but not to the data items on the screen. Other vendors restrict access to some but not all data. What actions a user can take is described by the View Only or View and Update features. The term View Only is used to indicate a user who does not have the privilege of entering or changing records. The power to change a record should be only with someone who is fully trained on the system and in HR practices. Accessing and printing standard reports and creating custom reports is yet another set of security characteristics.

Whether electronic or paper, employee files deserve to be treated with great care. Establishing security and end-user privileges calls for a balance of incorporating HR policy, system knowledge and day-to-day operations. Following these steps should establish security and policy.

SUMMARY OF STEPS

1. Review privacy and confidentiality policy to ensure that it is current with how records are maintained. Brief all new staff on handling of employee information.

2. Ask how security works on the network or what you can do to protect a single-user system.

3. Learn how security works in the HR system. The vendor documentation is, of course, the place to start.

4. Examine how you want information to be used in your department and throughout the organization.

5. Make decisions about system security and privileges. The accompanying chart will help you to think through and record these decisions.

6. Work with your systems department, vendor and system administrator to maximize use of your system's security features.

7. Document both policies and data entry practices; safeguard any written record of IDs and security set-up.

5 Top HR Modules for ERP Systems

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A growing number of businesses are adopting ERP (enterprise resource planning) systems in order to give their department’s accurate and accessible shared data. HR isn't being left out of the loop. In fact, most major ERP vendors now offer their customers HR modules that help automate an array of tasks while generating crucial data for enterprise planning and optimization. Here's a look at five top solutions, based on features and usability:

1. Infor HCM (Human Capital Management):

Designed for use with Infor's ERP, Infor HCM is a Web-enabled offering that brings a variety of capabilities to the table — perhaps even more features than the average business needs. The module has support for multiple languages, currencies, tax definitions, benefits, security configurations and platforms. It consists of three basic components:

Resource Management: Features here include benefits administration, payroll, FSAs (flexible spending accounts) and compensation.

Work-Force Management: This component aims to help HR departments cost-effectively handle complex work-force management challenges. It includes scheduling, time and attendance, absence handling and performance support.

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Talent Management: This part of the module provides work-force development capabilities that are focused on recruitment, learning, employee performance and competency management. Succession-planning capabilities are also provided.

Verdict: This is a well-rounded, highly capable module that's suitable for just about any business. Infor HCM takes advantage of Web technology to provide an ERP HR module that can be instantly updated and easily scaled.

2. Sage Accpac HRMS (Human Resource Management System):

As a part of Sage Software Inc.'s Sage Pro ERP, Sage Accpac HRMS provides support for a variety of HR tasks, including benefits, training, recruiting and compliance. The module offers a

flexible design that lets users select their own database platform, including SQL or MSDE (Microsoft Desktop Engine).

Sage Accpac HRMS also includes powerful reporting and analysis tools that provide customized insight on almost any HR issue. Hundreds of standard report templates are included. An

integrated database is designed to feed a steady flow of information to managers and staff.

Verdict: This solution is a good choice that gives users a voice in its design and operation. It’s tailored for midsize manufacturing businesses.

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3. SAP ERP HCM:

SAP AG's highly regarded ERP offers SAP ERP HCM, a versatile and extremely scalable HR module. The solution is designed to give companies in virtually all industries a full selection of HR tools.

The software can automate virtually all fundamental, and most advanced, HR processes, including employee administration, payroll and reporting. The product supports compliance with both global and local regulations. Other features include talent management, performance measurements and real-time insight into just about any HR trend.

Verdict: SAP ERP Human Capital Management sets a goal to which other ERP HR module vendors can only aspire. On the other hand, the product is overkill for most SMBs (small- to medium-sized businesses). In any event, it's truly the Rolls-Royce of ERP HR modules.

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4. Oracle HRMS:

Oracle Corp.'s HRMS is designed to automate practically every HR-department function. The company described its mission as, "The complete recruit-to-retire process." A single integrated

data model aims to supply a fast, immediate and accurate view of HR-related activities, including recruiting, payroll, benefits, performance management, learning, compensation, time management

and real-time analytics.

Oracle's HR product is comparable in many ways to SAP's module in scope and breadth, although Oracle advocates would claim that their favorite software is more flexible and easier to use.

Verdict: Oracle HRMS is thorough and highly capable, but not suitable for smaller businesses.

5. Microsoft Axapta Human Resource Management III:

Compatible with the Microsoft Dynamics AX ERP and building on HR support provided by Axapta versions I and II, this module supplies features that support the career development of individual employees — a capability overlooked by many other HR modules.

The software aims to help businesses create professional development plans focused on employee's goals and skills. Features include a "competence framework" with a development process that incorporates personal interviews, training curriculums, skills matching, skill-gap analysis and other components. The software's various processes are collaborative and allow follow-up from employees and managers to improve dialogue between the two groups.

Verdict: Microsoft Corp. isn't exactly renowned for its innovative application software, but Microsoft Axapta Human Resource Management III is a pleasing exception to the rule.

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IMPLEMENTATION OF HRIS

After purchasing your new HRIS software it is now time to implement your new system. This step could either be a “Step Two” in the purchasing of a new HRIS system or it could be the monkey wrench in the process. Common misconceptions and unclear timelines can greatly damage and slow the implementation process. It is important that a clear step-by-step process be outlined, a sturdy timeline be in place and common issues that normally arise, be discussed and prevented before the HRIS is implemented.

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GENERAL TIMELINE FOR IMPLEMENTATION

A common misconception of implementing an HRIS is the time it takes to get your system up and running. This time includes installing the system, preparing and converting data, training users on how the system is used and trouble shooting to ensure users can be off and running after the system is installed. A typical install usually takes an average of six to eight weeks with a technician spending six to eight hours a day, one day a week. It is important that a timeline be established before the process begins and all involved in the process follows the timeline as closely as possible.

WHAT IS THE IMPLEMENTATION PROCESS?

a. Discovery:

In the discovery session, a project manager, consultant and your team drill-down on the information gathered during the Business Process Audit and discuss in detail your requirements, structure and the steps necessary to successfully integrate the solution into your environment. This is also the start of creating the timeline and assigning responsible parties for each step of the project. After the meeting, a finished timeline with dates is forwarded for your approval. It is important that these dates be carefully reviewed, as future changes can cause delays.

b. Installation:

Depending on the solution, installation is performed by your IT department, consultant or both. Some of the products may require skill sets that might require a consultant to do the installation.

c. Data Conversion:

Implementation of relevant HRMS data from your current systems. After core data is implemented, setup and configuration continues to complete this phase.

d. Review and Testing:

An important step in implementation is confirming that the information is accurate and business rules are working properly.

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e. Training:

Training sessions should begin with an overview of the system. Through the knowledge gained during setup and review, time is needed to refine the steps required to use the system to match your internal processes. Training should be focused on the core aspects that prompted the purchase. During this entire process, be sure that your consultant records their observations regarding the need for additional training and implementation assistance.

f. Going Live:

This is the day your investment begins to pay dividends.

g. Post Implementation Review:

Some time after the go-live, a review of how the system is being used is necessary. Often, valuable functions are not being used most effectively or not at all. At this point, be sure your consultant provides guidance and remedial training to ensure that you obtain the full value from your investment.

THINGS THAT CAN TYPICALY GO WRONG DURING AN INSTAL

Old system data is in an unstable format Old system data can not be found Unclear expectations Prep work has not been done or is incomplete

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HOW TO PREVENT ISSUES FROM ARISING

Have a clear timeline –

Realize it is going to take as much time to implement the system as it is going to take to prepare for implementation. Users and consultants should be working as a team to ensure the deadlines that were set before implementation are being met and followed.

Team effort-

Users should be reading the manual at each step of the implementation to ensure all questions are being answered before they become an issue. Data that needs to be transferred from the old system to the new should be accessible and ready for the consultant. In most cases, this data is entered into the new system by the users, so be aware that this can take some time.

Clear expectations –

Understand that the new system is not the old system. It is going to get some getting used to and some training for users to familiarize themselves with using the new system. The new system should not be used the way the old system was, this defeats the purpose of the new system.

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THE IMPACT OF IMPLEMENTING AN HRIS

Integrated HR Information Systems (HRIS) have a profound effect on firms that implement them.

Most often these firms are replacing several related systems, such as a personnel database, payroll

system and benefits system, with one HRIS that does it all. Many people focus on the improved

reporting and processing that will be realized from the new system, and those are the reasons

most firms choose to implement a HRIS. But what many people don’t focus on is that the new

HRIS will most likely affect the company much more deeply – it will challenge the operating

structure and principles of all the HR-related departments. An integrated HRIS results is a

drastically different environment than a cluster of related but separate systems. The core concept

of a centralized data store inherent with an HRIS demands integrated work processes for

consistently managing that store. The two attributes – centralized data storage and integrated

work processes – will affect the company in ways most managers don’t expect. EVALUATING

AND PREPARING FOR A HRIS Many companies go through a process of comparing and

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evaluating several HRIS packages using a team of analysts or managers from the various

departments affected – HR, Payroll, Benefits, Employee Relations, Training and so on. As this

team prepares its evaluation criteria and reviews HRIS features, much is learned about the goals

and values of the various departments. The HR department is looking for improved reporting of

employee data, Payroll is concerned with the system’s paycheck calculations and regulatory

reporting, while Benefits may be looking for a more streamlined enrollment process. As this team

drives deeper into the selection criteria, the members learn more about each other and may start to

see the emergence of some really messy business processes. It can be a bittersweet process.

The hiring process is a good example. As a person is recruited, hired and paid each department

may have its own specialized system and process for managing the employee data. As the HRIS

evaluation team discovers redundant processing and data storage, its members start to see ways to

make the process more efficient by aligning their part of the hiring process with the requirements

of the other departments. The team members are excited to find a better way to get the work done,

but scared by the ramifications of closer ties to other departments. They think:” If we improve the

efficiency of the process (have HR enter the W-4 at the time of hire), we won’t need as many

people in our department (we won’t need to key W-4s anymore), and we might lose control of

some piece of data that is critical to our business function (how do we know that HR will key the

W-4 correctly?)”. As the team evaluates an HRIS software package, it begins to get a better grasp

on what the entire company’s business processes are, and therefore what the company might

require in an HRIS.

The team will most likely find that none of the packages are an exact fit and that substantial

effort is required to modify or integrate the chosen HRIS. Or if not enough due diligence and

research have been done, the team may be facing this effort and not be aware of it. This gap in

planning will show itself later in the implementation phase when the project team realizes there

are not enough resources – time, people and money – to implement the HRIS. Perhaps the most

critical results of the HRIS evaluation process are that the evaluation team set correct

expectations for the project and gain executive management commitment. With correct, or at least

realistic expectations and an executive management team that seriously supports the team’s

efforts, an HRIS implementation project has a much greater chance to succeed.

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Most often the HRIS evaluation team members spend most of their efforts building selection

criteria and choosing an HRIS, instead of setting expectations and building executive support.

THE HRIS IMPLEMENTATION PROJECT Configuring the HRIS There are three primary

activities in an HRIS implementation – configuring the HRIS for the firm’s business processes

and policies, interfacing data with other systems and converting historical data into the

HRIS, and preparing the organization for the HRIS. An HRIS comes with built-in processes for

most HR activities, but firms will need to customize the system to process according to their

specific needs. For example, every HRIS supports the process of benefits open enrollment, but

the system does not come delivered with a firm’s specific benefit providers and eligibility rules.

Customizing the HRIS for this typically does not involve programming; the common activity is to

enter specific data into control tables that then direct how the HRIS operates. The customizing or

configuration tasks then become a process of understanding the firm’s business processes well

enough to encode that logic into the HRIS. This mapping of business processes and policies into

system control tables requires people who understand both the business process and the HRIS –

typically the existing IT support and HR business analysts. Due to the large amount of work, the

HRIS project team usually needs these analysts fully dedicated to the project, requiring the

”home” departments to fill the gaps in their absence. Having partially dedicated team members

may cause tension since the team members have to maintain responsibilities at the home

department while also fulfilling responsibilities on the project team. Either way, back-filling

resources becomes a big issue if not planned for during the evaluation stage. Firms may find that

the internal resource people assigned to the project do not have the skills or capabilities needed

for the job. Sometimes training can resolve this, but other times the people lack basic analytical

skills required for the implementation.

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One of the key requirements for a person to be successful on an HRIS implementation project is

that he/she have excellent analysis skills. The most analytical people in HR and IT should be

assigned to the project, or else the company should rely on external resources (i.e. contractors or

consultants). The project can get done this way – but the more an implementation team relies on

external resources the more difficult it will be for the company to become self-sufficient in

ongoing HRIS support, maintenance, and operations. Many HRIS implementations include, to

one degree or another, business process reengineering. As a firm documents, investigates, and

discovers its true business processes, it’s natural that the firms also take time to improve them, or

at least integrate the processes across departments. The integrated nature of most HRIS packages

drives this activity. When a process is reengineered or integrated, once-independent departments

become much more dependent on each other. That dependency can increase tensions on the

project team as representatives from those departments learn to trust others to do their part of the

process. Or, once the project team members become comfortable with the processes they have

designed, they may have a hard time selling those changes back to their departments. Most HRIS

packages don’t handle exception processing very well. As business processes are designed, the

project team customizes the HRIS around those processes. Users will most likely find that

exception cases require significant manual thought or labor to process – since the exception does

not fit into the business process as implemented in the HRIS. HRIS project team analysts will

walk a fine line between generalization of the process to fit exceptions vs. a more narrowed

implementation of the process to enforce data integrity and accurate application of HR policy.

This is a great time to enforce some standards and clean-up ”special deals” – but HR managers

and policymakers must be willing to support these efforts, and to help implement them. Finally,

as the project team analysts dig into the current business processes, they may find that the HR

users, and sometimes managers, don’t really understand or know the processes well. Users may

know what is done, but not why it is done. Knowing the why part is critical to getting the most

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out of your HRIS implementation. In most every HRIS there are two or three technical methods

of implementing any given requirement – knowing why something is done in a business process

helps ensure the project team analysts select the best method of implementing it in the HRIS.

Linking the HRIS with Other Systems Most HRIS project teams have a number of people

assigned to converting historical data from the existing HR databases into the HRIS, as well as

for interfacing the HRIS with other systems that rely on HR data. As this group starts mapping

historical data to the system for conversion, most often group members will find (particularly

when combining data from several existing systems to go into one HRIS) that the existing HR

data contains a significant amount of invalid, incomplete, or contradictory data.

As the HRIS was configured for, reengineered or streamlined business processes the existing

employee data may not fit well into the system. The HRIS will demand more complete and

accurate employee data. Making sense of these data conversion problems is a skill that falls to

HR analysts, not the programmers writing data-conversion routines. Conversion and interfacing

are not solely technical activities – user consultation and input are required. Many HRIS project

teams discover these requirements too late, thus increasing the demand for time from HR analysts

on the project team – time that the analysts most likely do not have. If the firm has a data

warehouse, the HRIS data will need to be mapped to it. If the data model in the warehouse is

based on the legacy HR database, the two data models may not be compatible. A lot of effort can

be spent mapping the HRIS to an existing data warehouse. Or if the HRIS vendor has its own data

warehouse application, the project team might be tempted to use it, but they’ll still have to

contend with converting existing historical HR data into the warehouse. Either way, HRIS project

teams spend more effort than planned on this issue – the details can get very tedious and time

consuming. Replacing HR systems involves any area of the company that reads or relies on

employee data. System implementation may highlight employee data privacy issues, or increase

the scope of interfacing once the project team realizes just how many systems read employee data

from the current HR-related databases. Preparing the Organization Many times it is easier for

project teams to focus on technical aspects of the implementation, which is ineffective. For

example, configuring the HRIS to correctly assign resident tax codes based on the employee’s

address is easier than getting HR, benefits, payroll, and recruiting to buy into and implement a

reengineered hiring process.

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The HRIS project team must track progress not only on the technical aspects of implementing

the HRIS, but also on the softer side of managing the organization as a whole to accept the

business processes that come with the HRIS. Companies typically underestimate this change-

management effort. From the very beginning there must be a focus on preparing the organization

and the employees for the HRIS.

A HRIS, with more integrated work processes, tends to pull related departments together. Some

firms recognize this as they go through the implementation process, and also implement a

organizational structure with the HRIS roll-out. For example, HR and Payroll may have reported

to separate areas of the company, and parts of HR business processes were scattered throughout

various departments. But as a HRIS is implemented, the previous organizations are transformed

to report to a single authority, and a shared-services group is established to perform the integrated

work processes that were once scattered. This is a common, but often unexpected, result of HRIS

implementations. During the implementation phase, firms should also be determining what their

support model will look like – what kind of organization will be required to support this HRIS?

Those who study this task in detail will realize they need cross-functional support teams –

containing programmers (ABAP), configuration experts, and business analysts – to successfully

support the HRIS. But this integrated support team does not fit well into the vertical departments

in most companies today.

Finding a way to implement this cross-functional team is a critical success factor for the HRIS’

ongoing operation. All of the items mentioned so far force HR managers to become involved in

what is usually perceived as an IT project. They may be accustomed to pushing responsibility for

such projects onto IT managers, but implementing an integrated HRIS requires HR manager

participation and active involvement in scoping, implementation, cutover, resourcing and

management. LIVING WITH THE HRIS Changes in the HR User Community An integrated

HRIS leads to more integrated reporting of employee data, which can lead to efforts that benefit

the company.

Better reporting of employee costs, skills and requirements, time-keeping and recording, etc. give

senior managers information that can be used to improve the application of HR policy or to cut

costs (i.e. reducing time-card fraud, highlighting wasteful compensation practices, etc.).

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Most integrated HRIS packages are very sophisticated in the functionality and processes they

offer. Compared to legacy, or screen-based/code-based systems, the HRIS requires a more

analytical user. The user cannot simply be trained to put certain codes into certain fields -- he/she

must know the business process and how it relates to the HRIS. In most companies, a certain

portion of users will be able to make this jump to” analytical” thinking; others will not. The

resulting shakeout has to happen, and it is most often painful – either for the employees

themselves or for the HRIS supports organization. If a more centralized, integrated HR

organization doesn’t surface during the implementation period, the organization will tend to

evolve in that direction. An integrated, centralized HRIS tends to pull user departments together.

Using integrated work processes across departments that do not operate under a common

authority will highlight data and process ownership issues.

These issues in turn get pushed up to HR managers or executive management. Eventually, these

managers resolve the issues by increasing the integration of the departments to match the

processes. Either way it happens – at implementation or via evolution -- this level of

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organizational change is always difficult. Supporting the HRIS IT support analysts may be

accustomed to, and only skilled for, flat-file processing techniques. Most HRIS packages rely on

relational data models, higher-level programming languages, and interactive data management –

presenting technical requirements for which some IT analysts may not be ready.

The HRIS may have proprietary languages or facilities, requiring IT skills. Often these skills will

be in high demand, driving a premium rate of pay. Internal resources may opt to leave the

company for the higher pay, or they may demand higher pay at the company. The higher pay

might be outside the HR guidelines for fair salary. The resulting dilemma can create retention

problems. HR users – the analysts in HR, payroll and benefits – must take a more active role in

ongoing support and system changes. Since business rules are often coded into the HRIS instead

of resting in manual processes, the business analysts are necessarily drawn into this activity.

Some firms may push this “business rule” knowledge to their IT support analysts, or rely on

consultants who help with the implementation.

Although either of those scenarios can work, HR business analysts and managers have the most

to lose if the HRIS does not process transactions correctly. Placing HR analysts in system support

and change roles will help ensure that the HRIS processes transactions correctly.

Some companies depend too much on consulting firms or contractors to perform an

implementation. Many times this happens because the firm can pay a consultant to do precisely

what the firm wants to do, which is often easier than getting internal resources to do the same

thing. It takes some of the pain out of change management. This can lead to a continued

dependence on external resources and might be acceptable for firms that have historically relied

on external resources. For others it may generate substantial internal conflict in the way of higher

IT budgets or continued presence of non-employees in the HRIS support organization.

RECOMMENDATIONS FOR SUCCESS given all the things that often do go wrong with HRIS

implementations, what can be done to ensure a smooth transition? There is no one solution, no

grand secret for avoiding all the problems.

As with most successful efforts, a successful HRIS implementation requires participation and

commitment from all areas of the firm. The first area from which to gain commitment is the

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firm’s executive management – the sponsors of the project. Given the level of change such a

project will create, there will be areas that resist the implementation.

Support from executive management is invaluable for making sure business processes are

implemented effectively, for funding the project, and for ensuring appropriate staffing on the

project team. Without this support, the payoff of the HRIS will most likely be compromised, and

will cause disruptions in employee service. The executive managers should appoint a steering

committee containing stakeholders from all areas affected by the HRIS (payroll, benefits, HR, IT,

employee relations, etc).

This group should contain members who can ensure that their line managers have the necessary

directives and responsibilities for making the HRIS operational. The steering committee should

take an active role in resolving broad issues and taking corrective actions if the project gets off

course. One of the most important roles of the steering committee is that of “winning the HR

managers.”

The steering committee needs to ensure that managers fully understand the impact of a HRIS

system, that they are involved in the implementation, and that they support the project with a

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positive attitude towards change. This will not only set an example and guideline for each

committee member’s department, but also prepare the ground for dealing with change-

management issues. The steering committee should be responsible for appointing a project

manager or project management team, as well as assuring that the project is appropriately staffed.

The project manager should carry out team-building exercises for employees who will have to

work together, since many people who will be assigned to the team may not have experience

operating in such an environment.

The HR analysts and the technical analysts must learn how to work together to solve issues

neither group can solve alone – such as data conversion and interfacing. HR analysts will become

more technical, and technical analysts will learn more about HR. The project planning process

needs to include not only the technical tasks but also the processes and deadlines for change

management tasks. The project manager can get an indication of these issues early in the project

by comparing the goals of the different stakeholders involved and identifying all the

inconsistencies. For those HR analysts who are placed on the HRIS project team, their managers

need to be fully aware of the analyst roles in the project.

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Managers need to review and possibly redefine the roles before, during and after the

implementation. job descriptions may need to be prepared and managers need to brief employees

about any changes and additional responsibilities. Managers also must start back-filling the

positions left by the analysts to ensure their departments still run smoothly and the analysts are

not torn between working in their departments vs. working on the HRIS project. Not every person

will be able to make the transition to a HRIS.

Certain employees – payroll clerks, benefits analysts, IT support, and even managers -- may not

want anything to do with the HRIS and the processes that come with it. Instead of forcing them to

make the transition, it is often wiser to place them outside the HRIS-related organization in roles

appropriate for their skills.

A transition plan needs to be constructed, and the steering committee must accept the fact that

there will be some turnover. Likewise, employees who have demonstrated their interest and

ability to work with the system and who have gained substantial knowledge of it should be

offered an active system-support role together with a promotion. This should motivate other

employees to follow their colleagues’ paths and will discourage internal system experts leaving

the company for a higher-paying consulting job.

Training – technical and non-technical – must be identified and performed to help people make

the transition to working with the HRIS and the organization model. The training need to go

beyond screen-prints and mouse-clicking sequences to an explanation of how the process fits into

the organization, its relationship to other processes, and the execution steps in the process.

Employees will have to know the why as well as the how of the process. Formalized cross-

functional support teams are essential to the steady operation of the HRIS. Firms can be

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successful by patching together an informal organization of HR analysts and IT analysts, but that

loose-knit framework may not hold up to the continued demands of HRIS support. A formalized,

co-located team of HR and IT analysts will be most effective. Many firms also find it useful to

preserve the steering committee past HRIS implementation and into the productive life of the

HRIS. The steering committee is an excellent group to monitor the ongoing quality of HRIS

operations, manage relationships with the HRIS vendor, and clear the path for later HRIS

upgrades or enhancements.

It may take years for a firm to adjust to a HRIS. As it does, most will see that their organizational

structure will tend to reflect the HRIS structure. This is natural – managers for years have

organized their departments to fit the way work is done, and the organizational culture often

reflects that structure. When the way that work is done changes – and an HRIS will engender that

change – it’s natural for the organization to change as well.

Barriers to the success of an HRIS:

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o Lack of management commitment

o Satisfaction with the status quo

o No or poorly done needs analysis

o Failure to include key people

o Failure to keep project team intact

o Politics / hidden agendas

o Failure to involve / consult significant groups

o Lack of communication

o Bad timing (time of year and duration

Critical Analysis

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Although almost all HR managers understand the importance of HRIS, the general perception is that the organization can do without its implantation. Hence only large companies have started using HRIS to complement its HR activities.

But HRIS would be very critical for organizations in the near future. This is because of a number of reasons.

Large amount of data and information to be processed. Project based work environment. Employee empowerment. Increase of knowledge workers & associated information. Learning organization

The primary reason for delay in HRIS implementation in organizations is because of the fear psychosis created by "technology" and "IT" in the minds of senior management. They may not be very tech savvy and fear being left out.

But trends are changing for the better as more and more organizations realize the importance of IT and technology. Major HRIS providers are concentrating on the small and middle range organizations as well as large organizations for their products. They are also coming up with very specific software modules, which would cater to any of their HR needs. SAP and Peoplesoft provide HR modules within their business intelligence software. Hence HRIS would soon be an integral part of HR activities in all organizatio

CONCLUSION

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Tracker and Manager Your Most Valuable Asset - Your Employees.

Utilizing a Web-based platform allows you to streamline the entire HR lifecycle from recruitment and training to payroll and benefits administration. Consolidating these processes into once system allows small and medium sized businesses to proactively manage HR operations and improve efficiency.

Most Web-based HRMS platforms offer much more than HR and employee benefits services. Look for a solution that offers a wide range of service offerings including payroll, talent management, applicant tracking, recruiting tools, pre-employment testing, background checks, labor law resources and skills training. Robust and user-friendly reporting tools are also critical.

While employee access to a wide range of HR lifecycle services is helpful in streamlining HR processes, it is extremely important to choose a Web-based HRMS platform that is easy to use. Employees are less likely to embrace these services if they are too complex. Keep it simple.

Regardless of industry or size, an HRMS platform can help small and medium sized businesses achieve unprecedented levels of efficiency and productivity and can offer your organization the tools and services to stay competitive. This provides you an edge by enabling you to focus on your core business.

The key to finding the right HRMS system is selecting an HR business solution that is secure, well-supported, and equipped to help you reach your goals. With a centralized Web-based HRMS platform to support your HR department, you have the ability to successfully track, manage, and control your most valuable asset, your employees.

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Bibliography

And special thanks to Mr. Gauttam hettangde (Chief Technology Officer) & Director of CBT Infotech.

Great Help from Mrs. Rita balachandran (Head of faculty NIS Academy)

Mr. Rajesh shukla (Project manager of CBT Infotech Ltd.)

http://www.hrgopher.com http://www.auxillium.com

http://www.hrms.com http://www.hrfiles.com

http://www.people-trak.com http://www.best-software.com http://www.hradvantage.com http://www.vpsoftware.com

http://www.cortdirections.com http://www.nuviewinc.com

http://www.payrollandhr.com http://www.spectrumhr.com/

http://www.absusa.com http://www.ascentis.com http://www.trak-it.com/

http://www.qqesttime.comGoogle.com & Wikipideia.com

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