Page 1
15476
1
Putting the HR into the HRIS: A study of the implementation of Human
Resource Information Systems
Abstract
An estimated 90% of HR departments in organisations use some form of technology to manage
their data and processes. While these systems have gained traction over the last 10 years there is
significant evidence to suggest that most organisations have not moved beyond traditional and
transactional systems that automate existing HR processes, and that the promise of more
sophisticated analytics with strategic value has not materialised. This paper follows three large
organisations, using an interpretive case study approach, and investigates how they selected,
designed and implemented updated HR systems. Our findings suggest that when a system is
designed to engage with the complexity of people management, organisations experience additional
challenges from those identified in other functional or integrated IS implementations, Thus the HR
system typically becomes stalled at an impasse making it difficult to move beyond the automation –
transactional phase to the more strategic transformational phase. By taking a social constructivist
perspective we posit that there are four main challenges for management to consider when
implementing an HRIS: (1) maintaining both HR and organisational attention in a function that is
often attributed limited salience;(2) addressing the complexities associated with people management
particularly across global and multi-functional businesses; (3) meeting the challenges associated
with the creation and application of relevant HR metrics; (4) and managing user acceptance when
there is typically a perceived and realised loss of functionality experienced when people
management processes become automated.
Keywords Human Resource Information Systems, Human Resources, IS implementation, Social
Construction of Technology Technology in Practice, Interpretive case study research, HR metrics
Page 2
15476
2
1. Introduction
Since the 1970s there has been a significant increase in the number of organisations gathering,
storing and analysing human resources data using Human Resource Information Systems (HRISs)
(Ball, 2001; Barron, Chhabra, Hanscome, & Henson, 2004; Hussain, Wallace, & Cornelius, 2007;
Ngai & Wat, 2006). More recently enterprise systems have enabled a more integrated approach to
HRIS’s and thus the potential for these systems to impact on the capacity for Human Resources
(HR) to play a more strategic role in the organisation (Becker, Huselid, & Ulrich, 2001; Hewitt
Associates, 2007; Huselid, 1995; E. Lawler & Mohrman, 2003; Sheehan, Holland, & De Cieri,
2006; Tansley, Newell, & Williams, 2001). Specifically, a body of work has emerged suggesting
that through its capacity to deliver accurate and timely metrics, an HRIS has the potential to assist
the HR function in developing business strategy and thus enhance an organisation’s performance
(Gueutal, 2003; E. E. Lawler, Levenson, & Boudreau, 2004; Lengnick-Hall & Moritz, 2003;
Strohmeier, 2009; Voermans & Van Veldhoven, 2007). Additionally there is potential for the
technology to re-engineer the delivery of HR services to gain efficiencies and a higher quality of
HR delivery. Models such as shared services and outsourcing require sophisticated systems to make
processes seamless and to facilitate accurate data exchange. However, empirical evidence suggests
that most organisations barely get beyond the automation of HR support functions and thus the
capacity for HRIS to enhance the strategic activities of the HR function are largely unrealised
(Tansley & Watson, 2009). We suggest that the implementation challenges of these HR systems are
largely underestimated by organisations and thus the ability to use the advanced functionality of the
systems is restricted as users grapple with the automation of more fundamental processes.
The study discussed in this paper was initiated after a preliminary survey (by the authors) of
the use of HRISs in 138 Australian Listed companies .The survey found that although 50% (n=69)
of the participant organisations were found to have an HRIS, the extent to which they were being
used in a strategic manner varied and for the most part the claimed potential of the information
Page 3
15476
3
systems was not being realised. For example, while 91% of organisations with an HRIS used the
systems in order to process and record leave, only 34% used them in relation to staff planning. In
order to gain further insights into these results, the present study explores the consequences of
HRISs on the HR function in detail at three large Australian organisations using a qualitative case
study approach (Yin, 2003). Specifically, the project examines whether the claimed potential of the
HRIS to enhance the HR function’s contribution to the development of business strategy was being
realised and the factors that might be associated with the capacity of the HR function to use an
HRIS in this way.
We suggest that the potential of HRISs to deliver the promised strategic competencies
remains largely unrealised due, in part, to the complexity of transitioning to more integrated
systems from standalone administrative and compliance focussed systems. Specifically, we found
that the selection, implementation and use of HRISs are being hindered by four main challenges: (1)
maintaining organisational attention: (2) addressing the complexities associated with people
management: (3) the challenges for HR to effectively identify and apply HR metrics: and (4)
managing user acceptance of the under-estimated changes associated with the transition.
The paper is organised as follows: the following section reviews the HRIS literature paying
particular attention to previous studies which recognise challenges associated with the selection,
implementation and use of an HRIS. In section 3 we discuss social construction of technology
(SCOT) as a theoretical lens to analyse this topic. Section 4 presents our case study methodology
and profiles the three case study organisations. The fifth section focuses on the results of the study
and discusses the challenges identified as important to the management of HRISs .and finally we
provide some practical insights relevant for management and highlight areas for further analysis.
2. The Selection, Implementation and Use of HRISs
The current generation of HRISs automate and devolve routine administrative and compliance
functions traditionally performed by corporate HR departments which can change the nature of HR
Page 4
15476
4
by facilitating, amongst other things, the outsourcing of HR (Barron, Chhabra, Hanscome, &
Henson, 2004; Morley, Gunnigle, O'Sullivan, & Collings, 2006; H. Ruël, T. Bondarouk, & J.
Looise, 2004), the outsourcing of other functions (Valverde, Ryan, & Soler, 2006), or the creation
of Human Resource Shared Service Centres (Farndale, Paauwe, & Hoeksema, 2009). In doing so,
HRISs not only make it possible for organisations to significantly reduce the costs associated with
HR delivery, but also to reassess the need for retaining internal HR capabilities. However, HRISs
also provide HR professionals with opportunities to enhance their contribution to the strategic
direction of the firm. First, by automating and devolving many routine HR tasks to line
management (Morley, Gunnigle, O'Sullivan, & Collings, 2006) an HRIS can provide HR
professionals with the time needed to direct their attention towards more business critical and
strategic level tasks, such as leadership development and talent management (E. Lawler &
Mohrman, 2003). Second, an HRIS provides an opportunity for HR to play a more strategic role, by
enabling the generation of real time metrics on HR issues, including activities such as workforce
planning and skills profiles, which can provide valuable reports to support strategic decision making
(Farndale, Paauwe, & Hoeksema, 2009; Hendrickson, 2003; E. E. Lawler, Levenson, & Boudreau,
2004). The use of an HRIS for strategic activities such as these may also enable organisations to use
their HRIS for the ‘modernization’ of HR departments (T. V. Bondarouk & Ruël, 2009) and for the
implementation of ‘transformational’ HR practices (T. Bondarouk, Ruël, & van der Heijden, 2009;
H. Ruël, T. Bondarouk, & J. Looise, 2004). While there is a reasonably extensive literature on the
implementation and characteristics of HRISs (see Florkowski & Olivas-Lujan, 2006; Strohmeier,
2007), there has been relatively little research published on the implementation and consequences of
these systems on the HR function. As such this paper aims to build on existing literature that
suggests there are different consequences of HRISs for HR across organisations by extending our
analysis to consider and reflect upon explanations for this variation.
One of the first major studies of HRISs in the US (DeSanctis, 1986) noted that the majority
of HRISs used modules for payroll, benefits administration and EEO reporting, rather than modules
Page 5
15476
5
for HR planning and the generation of performance metrics. Consistent with this, the study noted
that HRISs were more commonly used for standard reporting and ‘administration’ than for the more
strategic functions of HR planning, policy evaluation or productivity analysis. Other early surveys
suggested that HRISs were used predominantly to automate routine tasks and “to replace filing
cabinets” (Martinsons, 1994). Ball (2001) reported similar results for small and medium sized
enterprises in the UK and concluded that HR had missed the strategic opportunity provided by
HRISs. More recent research shows greater use of HRISs in support of strategic decision making by
HR (Hussain, Wallace, & Cornelius, 2007). However, the extent to which an HRIS is used in a
strategic fashion differs across organisations, with the vast majority of organisations continuing to
use an HRIS simply to replace manual processing and to reduce costs (Bee & Bee, 2002; Brown,
2002; Haines & Lafleur, 2008; Strohmeier, 2007).
The research literature concerning the perceived benefits of HRISs also tends to reinforce
the impression that administrative efficiencies, rather than enhanced strategic HRM tend to be the
primary advantages of HRISs. The literature review provided by Ngai and Wat (2006) concluded
that the key benefits of HRISs are normally thought to be improved data accuracy, more timely
information access and lower costs. Indeed previous papers have corroborated these conclusions
empirically (Hendrickson, 2003; Kavanagh, Gueutal, & Tannenbaum, 1990; Kovach & Cathcart,
1999). Nevertheless, studies continue to advocate HRISs for their capacity to enhance the HR
function’s strategic contribution (Kavanagh & Thite, 2009; Ruta, 2009; Strohmeier, 2009; Towers
Perrin, 2008).
Empirical research to date, suggests that while an HRIS may well have the potential to
enhance HR’s strategic role, it is more commonly used to improve administrative and transactional
efficiency of HR processes. The reasons why some organisations may be more adept at realising
this strategic potential remains unclear, however, the limited research on HRISs and decades of
research on the implementation of IT systems in organisations generally point to the possibility that
human, social and organisational factors are likely to be relevant. The barriers to the successful
Page 6
15476
6
implementation of HRISs identified by, for example, Kovach and Cathcart (1999) and Ngai and
Wat (2006) include a range of organisational factors: insufficient budget, lack of top management
support, lack of support for HR users and coordination problems. A recent study by Burbach and
Royale (2010) which focuses on the integration of talent management practices with an HRIS at a
case study organisation supports these observations. These authors conclude that the success of this
project was contingent on a combination of factors, including stakeholder involvement and senior
management support. In contrast to focusing on organisational factors, others have emphasised the
relevance of social factors. Wilson-Evered and Hartel’s (2009) study of line managers and HR use
of an HRIS in five hospital districts identified organisational climate and culture as central to the
success of HRIS implementations and stressed the need for system implementers to consult and
understand the ‘needs, concerns and opinions’ of staff groups. This finding underscores their
general point that the ‘human element’ is the most critical determinant of the success of an
information system. (2009:375).
3. Theoretical Perspective
Recent debates about technology and organisations have highlighted the importance of
social context and sought to develop frameworks which acknowledge both the material and social
character of technologies (Dery, Hall, & Wailes, 2006). Accordingly, theories which can be
considered as ‘social constructionist’ can play an important role in the study of technology as they
explicitly recognise that technologies, such as HRIS, cannot be evaluated and analysed without
having an explicit understanding of the context in which individuals and groups comprehend,
interpret, use and engage with the technology (Grint & Woolgar, 1997; Orlikowski & Barley, 2001;
H. Ruël, T. Bondarouk, & J. K. Looise, 2004; Williams & Edge, 1996).
For the purposes of this study, social constructionist views offer insights into the
implementation and use of HRISs in a number of ways and, as such .we draw on literature that
highlights the social construction of technology (SCOT) and the use of ‘technologies-in-practice’
Page 7
15476
7
(Orlikowski, 2000). The SCOT approach challenges the idea that technologies and technological
artefacts have a pre-defined and fixed meaning and in its place argues that the process, design and
selection of technologies are open and can be subjected to contestation (Pinch & Bijker, 1984;
Strohmeier, 2009). This means that a technology such as an HRIS is subject to differing, and
competing, meanings among the various ‘social groups’ who have an interest in its use. For
example, senior management may envisage that an HRIS upgrade or implementation will lead to
the technology being used in ways that enhance the HR function’s ability to contribute to strategic
decision-making. However, other groups within the organisation may have competing
interpretations of the technology in terms of its importance and its capabilities and these may come
to influence the way in which it is implemented and used (Dery, Hall, & Wailes, 2006; Strohmeier,
2009; Thomas, 1994).
The ‘technologies-in-practice’ approach contends that the technology itself cannot be
separated from the social relations that condition or structure its use. Orlikowski (2000) conceives
of technologies-in-practice as the structures that are enacted by users as they use the technology in
recurrent ways. The important implication of this idea for the purposes of this research is the
realisation that when individuals use the HRIS the associated social practices that develop through
this practice serve to shape the value attributed to the technology. Hence the process of using a
technology involves users interacting with ‘facilities’ (such as the properties of the technology
artefact), ‘norms’ (such as the protocols of using the technology), and ‘interpretative schemes’
(such as the skills, knowledge and the assumptions about the technology held by users) (Dery, Hall,
& Wailes, 2006).
Both of these approaches are important and useful as they recognise that when considering
relationships and experiences with technology, it is essential that social factors and previous
experiences be considered. Therefore the opinions of respondents can only be understood in the
context of individuals and groups comprehending, interpreting, using and engaging with the
technologies (Dery, Hall, & Wailes, 2006).
Page 8
15476
8
4. Methodology
The findings described in this paper form part of a larger longitudinal research project funded by the
Australian Research Council (ARC). All three case organisations discussed in this paper are
members of the project’s industry partner, the Australian Senior Human Resources Round-table
(ASHRR) and were selected on this basis. In 2008 when the project commenced, each organisation
had an HRIS in place and was in the process of either replacing or upgrading their existing system.
While the motivation for the upgrade or implementation varied, all of the organisations viewed this
as an opportunity to extend the strategic contribution of their HRIS. At the start of the study each
organisation had a standalone HRIS (e.g. CHRIS) in place and were, for differing reasons,
upgrading to more integrated systems..
Our study is both qualitative and longitudinal and our data collection phase has involved us
taking an exploratory, comparative, collective case study approach (Stake, 1994), whereby all three
organisations have been studied simultaneously. This approach has enabled us to develop greater
levels of understanding about the management of HRISs within and across organisations (Yin,
2003). Specifically, and as we undertook to address our research questions, our research design
provided us with the opportunity to gather an array of data (see table 1) pertaining to the plans and
activities of each organisation in relation to their HRIS implementations and to examine the way
meaning was created regarding the implementation and use of the HRIS (Creswell, 2009).
Table 1: Overview of Data
Organisation # Interviews Secondary Data HRIS Observation
BuildOrg 17 Annual reports, organisational reports and
presentations on HRIS implementation,
technical and operational manuals, HRIS
generated reports, public information on
the HRIS provided by software vendor.
Observation of HRIS in use within
HR area only.
Observation of hardware supplied
to HR and employees for HRIS
delivery.
ManuOrg 18 Staff brochures and posters, annual reports,
technical and operational manuals, HRIS
generated reports, public information on
the HRIS provided by software vendor.
Observation of HRIS in use with
users in HR and other areas of the
organisation.
Page 9
15476
9
TechOrg 5 Press articles, annual reports, technical and
operational manuals, public information on
the HRIS provided by software vendor.
Observation of hardware supplied
to HR and employees for HRIS
delivery.
In-depth and exploratory data were collected over a three year period, commencing in early
2008. Overall a total of 40 semi-structured interviews, lasting between one to two hours were
conducted. Interview data was triangulated by site visits and an array of secondary data through
consideration of sources that were deemed informative and relevant (Neuman, 2000). Prior to data
collection, we recognised that our interviewees would use and view their respective organisation’s
HRIS in different ways (Strohmeier, 2009) and therefore we conducted site visits and consultations
with a range of stakeholders in order to identify consistencies and divergences of opinion.
Interviewees were selected on the basis of their involvement with the selection, planning and
implementation of the HRIS at their organization, or their ability to provide an informed evaluation
of the consequences of the HRIS post-implementation. The interviewees thus included: the HR
Director or equivalent, the IT director or equivalent, senior management, , IT and HR
executives,,,and line managers. Interviews were conducted by at least two investigators, recorded
both manually and electronically with digital recordings subsequently transcribed.
During our site visits were able to observe the functionality and operation of the HRIS by
observing the technology being used by HR executives. Furthermore in two of the organisations,
we were able to observe a number of “end-users” of HRISs – those who perform tasks that in some
way require them to use the system (Calisir & Calisir, 2004). These end-users were reliant on the
software in some operational sense, regardless of their seniority within the organisation. In some
cases users were entering data, while in others they were reliant on the system in order to generate
data to make or inform operational decisions. At least two researchers observed the activities and
engaged with operators to clarify actions and inputs. These observations were recorded using
manual notes and were then discussed at length by the researchers to look for any contestations of
meaning. Such observation enabled the researchers to better understand the functionality and the
use of the technology.
Page 10
15476
10
Finally the interviewees were invited to attend annual participant workshops where the ideas
developed in the research were discussed and contested by all participants in semi-structured
forums. This enabled the data to be validated and ideas to be further developed in association with
the industry partners. All three organisations were represented at these workshops together with
associated consultants and the funding body. Discussions were recorded, transcribed and manual
notes taken and compared by all of the researchers.
Organisational and HRIS contextual data are summarized in Table 2. Each organisation has
been given an assumed name. TechOrg is a private organisation involved in the Information,
Communications and Technology industry. Over the last three years, TechOrg has undertaken to
upgrade its SAP HRIS module as part of its overall ERP upgrade and system development.
BuildOrg is a large construction company which is also privately owned. Its workforce comprises
both permanent and contracted employees. The organisation was previously operating an HRIS that
was considered outdated and sought to upgrade the existing system to primarily manage past and
current employees. ManuOrg is a global manufacturing organization with a range of business units
specializing in a wide range of activities all concerned with the extraction and processing of raw
materials across a diverse range of industries.. The current HRIS was implemented 23 years ago
with an increasingly modified CHRIS system that, at the time of this study, was being replaced by
an SAP HRIS module.
Table 2: Summary of Organisations
Organisation # of
employees
Ownership
structure
Industry Legacy
HRIS
Upgrading /
replacing
Reason(s) for change
BuildOrg Over 1400
(varies)
Private Construction Tailored
Preceda
9.1 by
CHRIS.
Upgrade to
CHRIS
Preceda 11.
Other HR
focused
systems to
remain.
Desire to enhance ability to
comply with industry and
legislative requirements.
Minimise risk of litigation.
Page 11
15476
11
ManuOrg 6700 Private Manufacturing Highly
customised
proprietary
system
based on
CHRIS
source
code.
Replace
legacy HRIS
system with
SAP HRIS
module.
Seeking to integrate HRIS
with organisations SAP
ERP.
Enhance knowledge
management.
TechOrg 400 Private
Owned by
MNC
based in
Europe.
Information
and
Communication
Technology
Services
SAP Upgrade to
new version
of SAP
HRIS
module.
Seeking expansion and
upgrade of established SAP
ERP system across
organisation.
5. Findings
Despite the HR director of all three organisations stating that the implementation or upgrade of their
HRIS had been undertaken to enhance the strategic contribution of the HR function (Beatty, 2001;
Ulrich, 1997; Walker, 2001), the data suggested that progress towards achieving this aim was
hindered by technological, managerial and organisational challenges. These challenges were
specific to the implementation and use of an HRIS in that they reflected the complex nature of the
management of people, the role of HR in the organisation, the allocation of resources to the HRIS,
and technological issues related to the management of HR practice. Specifically, the data across all
three organisations indicated that each of them had experienced one or more of four challenges
(which are summarised in Table 3). The challenges were:
The relative salience attached to the replacement or upgrade of the HRIS.
The complexity of the HRIS upgrade or replacement and consequences for the behaviour and
processes of the organisation.
HR recognising and developing metrics and business analytics that were critical to the strategic
objectives of the organisations
Barriers to user acceptance of the upgraded or replacement HRIS and recognition of the
importance of change management in helping overcome these.
Page 12
15476
12
Despite the significance of these challenges, it is important to note that during the period of
data collection we discovered that each of the organisations was dealing with other organisational
issues simultaneously including changes of ownership, changes in organisational structure and/ or
changes in government policy and regulation. We sought to take these changes into account as we
report and discuss the study results as they added to the complexity of using and implementing an
effective HRIS. They also serve to emphasise that the evaluation of any HRIS implementation must
be cognisant of the broader organisational context in which the technological change is introduced.
Each organisation is analysed and data compared across all cases in the context of each identified
theme.
Page 13
15476
13
Table 3: Organisational Context and the Challenges to Replacing or Upgrading an HRIS
Organisation Organisational Context Salience Complexity HR Metrics Change Management
BuildOrg Requirement to manage an increase in
the size of the contracted workforce
as a result of a significant growth in
the number of infrastructure projects.
Lack of sustained support and commitment from
organisations executive team.
HRIS project reprioritised after acknowledgment of the
need to manage contract based workforce.
HRIS project reprioritised to become part of a risk
mitigation strategy.
Complexity of functionality underestimated.
Additional system customisation required to
integrate with existing processes.
Additional time and financial resources
required to complete data migration.
Traditional HR metrics such as
turnover, sick leave etc used to
benchmark HR practices
A series of sophisticated Occupational
Health and safety metrics analysed and
reported to meet organisational
strategic objectives.
Ownership of new HRIS required.
Timely and tailored education and
training required to ensure user
acceptance.
User acceptance essential to minimise
potential unintended uses and
workarounds.
ManuOrg Imminent retirement of HR Manager
with knowledge of the proprietary
system.
Reorganisation of organisation creating
an urgent need for a new enterprise
wide IT system able to cope with the
new structure.
Strategic imperatives focussed on
creating a series of standalone
businesses with standardised systems
for centralised control but with
opportunities for demerger to potential
buyers
Retirement of HRIS manager providing opportunity to
consider alternative options to the current standalone
system.
HRIS system providing the catalyst for restructuring of
HR to meet corporate strategic objectives
Risk mitigation strategy used to drive IS changes and
ownership of the HRIS
The need to introduce and launch payroll
module complicated by the inconsistent
HR practices undertaken by different
functions and businesses in the Group.
Existing data from legacy system not
compatible with new HRIS.
Significant time and financial resources
required to rewrite source codes and data
migration.
Replaced and relocated entire payroll team
from Brisbane to Sydney.
Sought to recruit for SAP skills at the
expense of organisational knowledge.
HR metrics used on an adhoc basis in
accordance with the specific needs of
each business unit
Deisre for more sophistacted use of
strategic HR analytics but currently
focussed on transactional activities and
compliance reporting
Lack of support from senior
management which hindered
implementation.
Management of employee expectations
and experiences as new HRIS
represented a significant break with the
past.
Employees fearful and/or resistant to
change and hence limited user
acceptance.
Change management processes
perceived to be limited in their ability
to proactively deal with resistance to
change.
Limited communication with wider
workforce regarding the importance of
the HRIS project.
TechOrg Acquired by Australian company
which required the redesign of
business processes and organisational
structure in line with requirements of
new owner.
HRIS project not recognised as a priority by the
organisation.
HRIS project less salient than comparative financial and
engineering IT system projects.
HRIS project reprioritised during organisational
restructure.
Original HRIS project required amendment
due to changes in ownership structure.
Priorities and direction of the organisation
undergoing significant changes
simultaneously.
Required to adopt a HRIS that was
compatible with new owner.
Design phase of HRIS undertaken twice.
Data in legacy system potentially inaccurate
or outdated.
HR metrics used on an adhoc basis in
accordance with the specific needs of
each business unit
Need for more sophisticated HR
metrics overridden by more functional
and compliance based requirements
Need to ensure user acceptance seen as
less of a challenge.
Obtain user buy-in regarding certain
functionalities of the system.
Underestimated impact of changes in
employee remuneration which resulted
in employee resistance.
Page 14
15476
14
5.1 Creating and Maintaining a High Degree of Salience
Our cases demonstrate the importance of attaching a high degree of salience to the
replacement or upgrade of an HRIS. The challenge was to create and sustain such salience. The
experiences of all three organisations suggested that they enjoyed mixed fortunes in this respect and
that their ability to attach a relatively high degree of salience to their HRIS project had significant
impact on the ultimate strategic capabilities of the HRIS.
TechOrg constantly faced challenges in maintaining momentum and senior management
commitment to enhance their existing SAP system, include an upgrade of the HRIS module. The
project, which was run and owned by the Human Resource department, was not internally
recognised as being a high organisational priority. Thus attempts to progress and complete it had,
over the last three years, been overtaken by what were perceived as other more pressing projects
such as financial and engineering management systems upgrades:
The core will always be financial management systems and the things that allow our
engineers and our program managers to run the calls, take the customer complaints, send
them to the technician. We will certainly come a distant third to that… So if we come third
then we will do something, but we don’t know whether we’re coming third yet do we? (HR
Director, TechOrg).
The diminution of salience attached to the HRIS upgrade at TechOrg was further
compounded when, in late 2008 the organisation was de-merged by their parent MNC and acquired
by an Australia company. All existing business processes therefore needed to be changed to ensure
separation from the parent company. As a result, their HR Director commented in May 2009 that
“…The project (now) has been stopped pretty much…”
BuildOrg had a series of attempts at implementing an integrated HRIS from the late 1990’s.
However, a lack of senior management commitment resulted in inadequate funding, a divided
perspective on the requirements of the system, and priority being assigned to more pressing
operational requirements.
Page 15
15476
15
In 2007, the most recent attempt to improve the HRIS at BuildOrg gained traction with
senior management. The increase in salience was driven, in part, by changes to the composition of
the workforce that resulted in considerable increases in contract labour, and also by the need to
address and fulfil new government regulatory requirements. Their existing HRIS was unable to
cope with these increased demands and so approval was given for an upgrade, rather than a
replacement, of the existing stand alone Preceda system.
Because there’s been an awful lot of water under the bridge to get to this point. We’ve had –
this is the third go at actually having a crack at getting Preceda as the HR system and getting
the organisational structure in. Now there was one completely failed attempt. One almost
got there but then failed and now this is the (final) go at it. (IT team member, BuildOrg).
ManuOrg had a longer history of HR systems than the other two organisations and first
introduced a proprietry system (CHRIS) in the 1970’s. A range of progressive changes and add-ons
to the legacy system, combined with the in-house maintenance of the system, had produced an
HRIS that while highly valued by HR and business unit management, was complex and highly
dependent on proprietary IS knowledge. Although the HRIS had been accorded reasonable salience
with HR management and had attracted sufficient resources over the past 30 years, the HR Director
acknowledged that the need to standardise IT systems across all operating companies had
strengthened arguments in favour of a new HRIS from within both the HR function and the senior
management team. With the retirement of the HRIS manager the risks associated with proprietry
knowledge became more transparent and consequently ManuOrg embarked on a migration to SAP,
the re-positioning of HRIS management under the IT department, and the re-organisation of the HR
activities. During this process the focus of management shifted from HR functionality to the HR
structural reforms required to meet broader organisational strategic priorities.
Thus in all three cases the degree to which the HRIS maintained the organisational attention
of management appeared to depend on the perceived role for HR in the strategic objectives of the
organisation. The role of the HRIS in both compliance and risk management appeared to dominate
Page 16
15476
16
the management discourse in each of the cases and thus the salience of the HRIS was dependent on
the perceived contribution of the technology to these critical management issues rather than HR
functionality itself. Distinct from other functions in the organisation, management attention on the
HRIS tended to ebb and flow depending on broader organisational and industry issues rather than
specific HR concerns.
5.2 Addressing the Complexity of an HRIS
The complexity of an HRIS and its associated functionality appears to have been underestimated at
all three organisations as a consequence of both technological and managerial factors (Hannon, Jelf,
& Brandes, 1996). One of the first decisions that organisations must make when replacing or
upgrading an HRIS is whether to adopt a ‘vanilla’ system configured according to a limited range of
operating options, or whether to customize the software by manipulating code to create a system to
meet unique organisational requirements.. The former option typically requires significant changes
to HR and organisational practices in order to adapt to the requirements of the software, while the
latter option typically carries high maintenance and development costs and the risk of a a
dependence on proprietary IT knowledge. In each of the organisations studied proprietary systems
were replaced by configured vanilla systems resulting in significant change management
challenges.
ManuOrg had long maintained a number of legacy add-ons and proprietary upgrades to their
CHRIS system. Thus the adoption of an SAP HRIS module offered opportunities for increased
integration and standardization. The implementation initially focussed on Payroll. The HR Manager
argued that: “There are too many interdependent processes and we really have to make the entire
change of payroll for Australia and New Zealand at the one time”. However, meeting this initial
objective proved to be more difficult than expected with each division of the organisation requiring
distinct functionality to meet vastly different employment conditions and remuneration
requirements. . Aligning these processes with the new SAP HRIS was complicated and the change
Page 17
15476
17
management issues of transitioning payroll staff, who were very comfortable with the existing
HRIS system, was more challenging than anticipated. There was also considerable compatibility
issues associated with the migration of data from the proprietary legacy system to the new vanilla
SAP system. Consequently, the modification of existing data and associated codes in preparation
for the migration took longer and proved to be more costly than originally anticipated. During an
interview conducted with the three most senior members of the HR team, they reflected upon the
degree that challenges associated presented with one stating:
So you combine all those facts together and I think you probably do come up with teething
problems. Some of those have been molars rather than baby teeth, and we continue to work
through those.
Eventually ManuOrg took the dramatic step of closing their existing payroll department (located in
a separate State from Head Office), making all staff redundant and re-establishing the new payroll
department in Head Office. While new payroll recruits were SAP trained and experienced, they had
no organisational experience with ManuOrg. HR Management considered that SAP expertise was
of more value to the organisation as they transitioned to the new technological platform.
I think whether you go with an SAP versus business knowledge, its like anything, it’s like
when you recruit for any role. Do you go with someone who has got subject matter
expertise, which one can you learn the quickest to actually get you over the line. (HR
Director)
The complexity of the new HRIS at ManuOrg was also believed to have affected the value
that could be extracted from the system in the short term. While it was anticipated that SAP would
deliver a standardised, efficient source of real-time data that would assist line and senior managers
across all divisions and functions in planning and decision making, the HR Manager recognised that
in the short term the provision of strategic HR metrics would take second place to the more urgent
requirements for transactional functionality.
Similar to ManuOrg, the nature of the structure and work at BuildOrg was complex and
diverse with a wide range of employment contract further complicated by a significant reliance on
contract workers. The organisational structure was based more on projects and individuals than on
Page 18
15476
18
positions, thus many of the reporting functions associated with integrated HRIS systems were
deemed less germane or even superfluous for the organisation. Thus BuildOrg faced difficulty in
trying to establish one central system which could be considered as a ‘single source of truth’ from a
series of legacy systems which, while functionally effective, did not interface. This resulted in
significant challenges for the compatibility and integration of data, mainintaining functionality for a
range of diverse business units, and meeting the wide range and numerous compliance and
regulatory requirements..
Thus some of the critical HR functionality was often shelved due to the complexity of
dealing with it in a vanilla system. . The issue of leave management was a good example of this
complexity in BuildOrg and finally proved to be so problematic in the upgrade process that the
organisation decided not to utilize this function initially. The Corporate HR Advisor remarked this
was why: “we’ve decided to not go forward with the [leave submissions] online; that’s a little bit in
the too hard basket at the moment as to how it’s going to work”. Furthermore, and as the Payroll
Manager observed, a number of other functions of the HRIS required considerable adjustment in
order to meet organisational requirements before the system went live: “You need a lot of tweaking
at that point and we won’t be spot-on when we get it there; it’ll be close. That tweaking will take a
while; it’ll take months and months”. This “tweaking” was a process of configuration that
consumed significantly more time and financial resources than anticipated, stalling the further
development of the HRIS at more functional levels.
Similar levels of complexity were associated with the implementation of a new system at
TechOrg. However, in this organisation the complexity experienced was enhanced by the changes
in ownership which prompted the organisation to consider a number of new principles and
uncertainties as they upgraded to a new version of SAP HRIS. One may have expected that the
change in ownership would have resulted in the ability to implement a simpler and more effective
HRIS, without the constraints of having to use the global SAP standard. However, the opportunity
for simplicity was not realised. Severing TechOrg’s HRIS from that of their previous parent
Page 19
15476
19
company, combined with the need for it to service only TechOrg’s local operations and, if
necessary, be able to interface with its new Australian owner’s HRIS, added to the project’s
complexity. The organisation was thus forced to start afresh and completely redesign the HRIS - a
more time consuming process than the original project due to reduced IT resources and SAP in-
house expertise. When asked to reflect upon this change the HR Director referred to the role of the
previous ownership structure on their HRIS:
Because I think one of the big things that project reveals was just how lucky we were with it
being on a global organisation in terms of the amount of people and resources that gave us
and obviously the dollar value as well. Whereas now we have to run and manage and
maintain everything on our own and so that’s I guess what changes all of it.
It was literally, I mean I can honestly say I really under - completely underestimated the
impact that would have as did the whole senior management team.
The complexities of the HRIS reflected the challenges of managing HR in each of the organisations
studied. Changes to corporate ownership, structures, compliance requirements and diverse
workforce characteristics further compounded the challenges of implementing a system that met
both local operational requirements, and the need for corporate reporting and meaningful metrics.
Typically the challenges were such that functions were either compromised, deleted or IT
departments incurred unanticipated costs of customisation that stalled the HRIS at a functional
level. All three organisations worked to manage the multiple exceptions required of vanilla systems,
or addressed the necessary changes to HR practice required to meet the parameters of the software.
5.3 HR recognising and developing metrics and business analytics that were critical to the
strategic objectives of the organisations
Each of cases had HR functions that were largely transactional in their focus and while they all
expressed a desire to move to more strategic HR practices, and in fact had justified the upgrade of
the HRIS with this in mind, all were relatively unsophisticated in their use of HR metrics and
business analytics . It would appear that this was significant, particularly when the upgrade was to
an integrated system such as SAP that is dependent on data modelling frameworks for more
Page 20
15476
20
sophisticated analysis and predictive capabilities. ManuOrg had a range of reporting functions but
the ability for the legacy system to generate more strategic data was limited by the lack of
integration with the SAP system used in other areas of the business. The HR Director described the
HR function as “largely transactional” and “ while most people were very happy with the CHRIS
system that drove that functionality, others were getting increasingly frustrated by the lack of
integration with other systems”. Thus the opportunities to apply HR metrics to strategic thinking
around people management was not supported by the legacy HRIS. The complexities of the new
SAP system had stalled the system at a functional level and more advanced analytics were yet to be
explored. BuildOrg by contrast had a highly sophisticated Organisational Health and Safety system
that had proven very effective at gathering and disseminating valuable data . A range of analytic
tools were used in both historic and predictive capacities to enable wide-ranging changes in
practices that had driven considerable bottom line strategic benefits to the organisation. Despite the
effectiveness of these IT capabilites, the rest of the HR systems remained at transactional levels due
largely to a lack of compliance and problematic development of integrated functionality.
The degree to which each of the organisations or functions was naturally driven by metrics
appeared to have significant influence over the application of more advanced strategic functionality
of the HRIS. This was typically impacted by the degree of integration of the system and thus the
ability to gather data from a “single source of truth” in an accurate and timely manner. Where the
HRIS was more functionally driven , this impeded the use of more complex and strategic analytical
functions.
5.4 Barriers to the Acceptance of an HRIS and the Importance of Change Management
The third challenge which hindered the ability of our organisations to realise the potential of their
HRISs arose from barriers associated with the acceptance of the new or upgraded HRIS among key
end-users of the system and the importance attached to managing the change processes associated
with its implementation. Further, obtaining organisational ‘buy-in’ regarding the strategic
Page 21
15476
21
contribution of the HRIS had, in some cases, been hindered by scepticism, a lack of understanding,
insufficient management commitment, and fears that existing modes of work would be changed and
result in, for example, job loss or altered leave entitlements and shift arrangements.
A lack of organisation and management buy-in around the move to a new HRIS was a
significant challenge for ManuOrg. They were moving from a system that most people in the
organisation valued for over 21 years and that provided a very useful set of HR management tools.
The HR Manager felt that the change management required to implement the new system lacked
support from senior managers which hampered the implementation: “I’m not sure that it’s got the
necessary buy-in from the business leaders that we’re going to need to have.” This problem was
reinforced later in the same interview:
[…] from talking with the business heads, concept-wise, no one is saying this is a load of
rubbish, but I don’t think they’ve quite got their heads into the space and are saying, ‘Yes,
we’re 100% behind that.
Wider acceptance of the system and its changes at ManuOrg were seen to differ between those that
were associated with the project, versus existing employees who were comfortable with the
organisation’s previous legacy HRIS, or alternatively fearful of new technology. For most
employees the changes to information access and approval processes within SAP were significant
and for the most part more cumbersome and less intuitive that then CHRIS system. The HR
Director was concerned that due to the speed of implementation the change management process
itself was not being managed in a way that sufficiently prepared employees for the pending
changes. He noted, for example, that there were no plans to conduct wider testing of the new HRIS
system and that there had been insufficient organisation-wide communication of the rationale
behind its selection and implementation. He went on to suggest that this would be likely to affect
user acceptance:
The biggest issue I believe is going to be the change management… Most [ManuOrg]
employees are going to notice that and more than notice. They’re going to see a significant
change in the way that they supply information, get information, gain approvals.
Page 22
15476
22
It’s a big challenge for us at the moment to try and get people in the business into this online
environment. Some people really love it, other people really hate it. There’s like that sort of
– and there’s nothing really in between at the moment - lack of understanding of the change
needed but also an explicit concern for the need to manage change.
BuildOrg’s faced similar challenges but with the added challenges of a legacy of
problematic HRIS implementations and upgrades. The resources allocated to the maintenance of the
legacy HRIS system had waxed and waned throughout the life of the system and ownership of and
responsibility for the system had been transferred back and forth among IT, HR and Payroll. As the
IT Manager noted: “We’ve had a lot of problems actually trying to get people to take ownership of
the systems and maintain them”. This had resulted in the potential for information generated by the
legacy system to be inaccurate or outdated. Drawing on these past experiences, together with the
complexities of a more flexible workforce had resulted in the organisation delaying the
implementation of the new HRIS. According to the HR Director, training and education was
essential to an effective implementation and it needed to be timely:
It’s about educating and marketing, I think at the induction piece, the new joiners they get
some sort of training on how to use it and then when we roll out self service and I was
talking to [Manager X] about this the other day and said anything we do it has to have a
really good marketing push so that people take notice and then quickly follow it up with the
training.
The organisation also realised that training in the new HRIS needed to be ‘hands on’ in order to
secure user acceptance and avoid the proliferation of ‘work-arounds’ that had compromised the
effectiveness of the legacy system.
Acceptance of the HRIS also presented problems for TechOrg, however user resistance was
not as significant as evidenced in the other organisations due to the composition and location of
their workforce. Employees largely worked in distributed teams located in client organisations for
the duration of their projects and were working in a high- tech environment and thus comfortable
with a more virtual relationship with the organisation and with using the HRIS to manage most of
their HR requirements. Despite the HR department struggling to ensure that the new HRIS project
retained salience in the organisation, the lack of organisational buy-in tended to surround specific
Page 23
15476
23
functions rather than the HRIS system as a whole. The HR Director spoke of limited success with
the time sheeting function and the need to incorporate additional flexibility to meet the increasingly
complex customer requirements, which had implications for their employees in different work sites.
Change was constant in this organisation, so, together with the technical nature of most roles in the
organisation, this seemed to create a more receptive environment for the new system.
The last 12 months, probably a bit more, 18 months, actually coming up to two years now,
has just been phenomenal in terms of change and the amount of change. Being an IT
services company you go through massive amounts of change anyway (HR Director,
TechOrg).
However, despite this environment, recent changes around pay cycles generated significant
unanticipated management resistance signalling that changes to the HRIS, particularly those that
directly impacted on employees’ pay, required TechOrg to pay significantly more attention to
change management processes. The HR Director admitted that the impact of the changes to the pay
cycle on employees had been underestimated:
So we have moved from fortnightly to monthly pay recently…Well interesting. You know
it’s not one - given everything else that we’ve been through I don’t think we really thought it
would be as big as it was, let’s just put it that way and it turned out to be bigger than Ben
Hur. It was a very interesting time and very interesting feedback and once again just
surprised me because you know out of everything that we’ve gone through in the past year I
thought that would like, oh yeah, whatever. But no.
The change management processes around each of our case studies required the organisation to
focus on specific issues relevant to current embedded practice, past experiences, levels of comfort
with change and technical competencies. In each of the cases the recognition of the degree of
change and the management of those processes fell short of what was required. However, it would
appear that familiarity with technology played a significant role across all cases and that this is
particularly significant in the implementation of HRIS’s where issues have previously been
addressed with more “people” contact or with systems that are more user friendly. Problems with
HR functionality such as payroll, leave or rostering have a personal impact on employees and thus
Page 24
15476
24
have more extreme consequences when they go wrong. Thus change management would appear to
be more critical to HR systems and the impact of problems more severe.
5. Discussion and Conclusions
Those such as Bondarouk et al. (2009) and Farndale et al (2009) have observed that organisations
are becoming increasingly adept at using HRISs and that a correspondingly more strategic role for
HR may be emerging. The initial findings from our three organisations find very little support for
these claims. Rather, they suggest that although new or upgraded HRIS systems are being used to
automate and devolve routine administrative and compliance functions traditionally performed by
the HR function, the potential for this technology to be used in ways that contribute to the strategic
direction of the organisation and HR is not being realised. In this respect, our findings complement
the findings of several previous studies regarding the impact of the introduction of information
technology on the HR function (Kinnie & Arthurs, 1996; Tansley, Newell, & Williams, 2001).
Specifically, our results contribute to, and extend, this literature illustrating that the ability to move
beyond using HRISs as a transaction engine, and to use it in ways that enhance HR’s role as
strategic partner, is being hindered by four main challenges that are specific to the HR function.; (1)
difficulties for HR to maintain the focus of senior management in the context of broader , and often
more pressing , operational demands; (2) the complexities associated with the management of
people particularly across diverse and global business units; (3) the variation of technological and
metrics based skills in HR itself; and (4) user acceptance of systematised approaches to people
related issues.
By applying a social constructivist lens we were able to examine each of these challenges in the
context of these three cases to understand more about the implementation and use of HRIS’s. The
interaction between the actors and the technology established practices that attributed different
meaning to the technology in different environments (Orlikowski, 2001). Quattrone and Hopper
(2006) in their study on SAP accounting systems, however would also argue that IT systems “are
Page 25
15476
25
not stable black-boxed technological artifacts” (p242) but rather both the actors and the technology
itself have agency. This was particularly evident in our cases as HR and line management wrestled
with the boundaries imposed by the technology and the redefining of existing practices. Orlikowski
(2000) noted that while the practices that resulted from the implementation of IT systems were
constructed based on the interaction of the user and the technology the “physical properties of
artifacts ensure that there are always boundary conditions on how we use them”.(p409). The more
standardised processes found in vendor-supplied HRIS’s proved to be particularly challenging in all
of our cases as users began interacting with the systems. Existing practices, shared understanding of
the role of the HRIS and the variable focus of management attention impacted the users individual
and shared understanding of the systems in use. ManuOrg and BuildOrg , in particular, experienced
the added challenges of new systems that imposed more restrictions on HR capabilities and thus , at
least initially, provided users with less functionality than they had using the previous system. In
both cases the organisations responded by either eliminating the problematic functions of the new
system and adopting add-on specialist systems or, in the case of ManuOrg, addressed the changing
requirement for HR skills prioritising SAP technology skills over business skills. Thus the
interaction between users and the technological artifact shaped and developed the artifact itself
(Orlikowski, 2000; Orlikowski and Iacono,2001). This dualism in development of the HRIS as
changing practices were shaped and in turn shaped the technology was complex and time
consuming and thus had implications for the degree to which the HRIS delivered the anticipated
strategic capabilities.
While management in all cases recognised the potential value in investing in HR systems this was
not typically based around operational enhancements as evidenced in It implementations in other
areas of the business such as sales or finance, but rather broader organisational requirements for
standardisation and, more particularly risk and compliance concerns. Thus all three organisations
were found to have experienced, either at some point prior to or during the implementation of their
HRIS, relatively low levels of salience attached to the development of the HRIS due to management
Page 26
15476
26
attention being diverted to what were perceived to be more immediate and pressing operational
issues. This in turn resulted in the allocation of insufficient resources to the HRIS upgrade or
replacement, rushed decisions with insufficient critique and attention to meet deadlines, and
underestimation of the change management requirements to effectively implement the new system.
The combination of these factors hindered the implementation of the HRIS, stalling it at a
transactional level..
The complexities and uncertainties surrounding HR functions appeared to have been often
underestimated, which can be attributed to both technological and managerial factors. There are
challenges for HR and management to manage the tension between the need to adapt practice so
that it matches the functionality of the HRIS, versus customizing the technology to fit the existing,
often-complicated practices involved in people management (Ruël et al, 2004). Associated with this
challenge is the decision of where to locate the management of the HRIS i.e. within the IT function
or as an HR technology group within HR. The organisations offered varied responses to this
challenge, but in all three organisations the design and management of the system had significant
implications for the capacity of the HRIS to deliver strategic value.
There was little evidence in our case studies of a sophisticated use of HR metrics for
decision making. While each of the cases expressed a desire to generate more strategic thinking
around HR practices they was little clarity around how that might look in the context of their
organisations. The need for and the value of metrics, however, was more clearly articulated and yet
remained problematic generally across the cases. Tansley and Watson (2000) refer to a process of
strategic exchange in their work on the strategic development of the HRIS and argue that the
process of mutual creation is likely to lead to the development of more strategic HR systems. In all
cases the initial design and implementation of the HR system was focussed on transactional
activities such as payroll, leave management and compliance, with little discussion around the need
for HR metrics and reporting for strategic decision-making other then the potential capabilites
Page 27
15476
27
embedded in the system itself. These capabilities thus typically remained dormant opportunities
while more pressing operational issues were addressed.
The final challenge which hindered the three organisations’ ability to realise the potential of
their HRISs, arose from barriers associated with the acceptance of the new or upgraded HRIS
among key end-users and the importance attached to managing the change processes associated
with its implementation and introduction. Ruta (2009) describes the need for organisations to ensure
that when implementing any form of technology associated with the HR function they adopt a top-
down strategy in co-existence with a bottom-up approach. This practice was not universally
apparent at our organisations. The ability to gain organisational ‘buy-in’ for the HRIS had, in some
cases, been hampered by insufficient senior management commitment. It had also been hampered
by an inability to use the change process as a means to address user scepticism and lack of
understanding about the new technology, and in particular, about the integration of the resulting
new capabilities into the overall organisational context. In fact, in some cases, HR functionality had
been lost with the transition to the new system, resulting in significant resistance as users reacted to
the reduced capabilities with little understanding of the broader implications of the system and the
potential strategic benefits.
The HRIS promises to deliver strategic capabilities through both technologically enhanced
reporting and analytics, and by enhancing the opportunities for changes to practice in HR. Firstly,
the automation of the transactional and compliance functions of HR has the potential to liberate HR
executives from the administrative load to focus on structural and behavioural aspects of the human
resources to add value. Secondly, the reporting, analytic and predictive capabilities of the
technology are designed to facilitate more informed decision-making and input into critical HR
activities. Our findings confirm that HRIS implementations are often difficult owing in part to the
complexity of the various HR functions which contemporary HRISs typically attempt to
accommodate and integrate, including employee details, payroll, leave administration, training data,
health and safety and performance management information. Decisions to undertake ‘vanilla’
Page 28
15476
28
implementations of HRIS applications inevitably require the systemisation of HR processes and
practices that are, by necessity, nuanced. Alternatively, extensive customisation of HRIS
applications adds to implementation and maintenance costs and complexity. At the same time,
however, and in line with a social constructionist approach to the study of technology, each of the
challenges illustrates that how and when a technology is used is also determined by the social
context within which it is adopted (Orlikowski & Barley, 2001). In sum, only through an
appreciation of both the material and the social can a more informed understanding of the problems
that surround HRIS implementation and operation be obtained. In this respect, our findings are in
contrast to more technological deterministic views of earlier studies of HRISs that suggest that it is
simply the technology itself which has implications for the changing role of HR (Strohmeier, 2009).
In line with Orlikowski (2000) observations, it can be seen then that our study shows how
the social context that frame HRIS implementations played an important role in shaping user
perceptions and behaviour. The tools and instruments provided by the HRIS still need to be
operationalised by many stakeholders within the organisation, including HR, employees and line
managers (T. Bondarouk, Ruël, & van der Heijden, 2009). From a technologies-in-practice
perspective (Dery et al, 2006) user interactions with the ‘facilities’, ‘norms’, and ‘interpretative
schemes’ associated with an HRIS are affected not only by its technological complexity, but also by
problems concerning the management of, and commitment to, its implementation and operation.
The social context in which technology is introduced leads to considerations of how various
social groups, or key actors involved in the implementation and use of this technology bring to bear
their own interests and thus interpretations of the technology and what it does. Our paper highlights
the significance of these behaviours. The design, selection and use of HRISs were shown to be
subject to contestation as a range of meanings are attached to the technology that either undermine
or highlight its perceived value and significance, and thus impact on the extent to which it is to be
used in a strategic or more administrative fashion.
Page 29
15476
29
In addition to underlining the value of recognising both the material characteristics of the
technology as well as the social context of its implementation and use, this study emphasises the
relevance of organisational context to understanding HRIS implementations. To elaborate, in our
case study organisations changes in ownership, organisational strategy and structure, workforce size
and composition created delay and uncertainty in the development of HRISs in some cases, while in
others changes related to increased government regulation and compliance issues gave added
impetus to these projects. This leads us to argue that changes that are seemingly not directly
associated with the technological and social factors that are believed to determine HRIS
implementations are, in fact, highly significant and are especially relevant to the challenges we had
identified. These organisational changes invariably impact on the salience of HRIS projects, often
add to the complexity of the HRIS and also heighten user concerns about the technology thereby
accentuating the need for highly effective change management strategies. In sum, changes in the
broader organisational context can add impetus to, divert attention from, or even derail an HRIS
implementation and in so doing undermine any capacity of the HR function to use the HRIS in
order to develop a more strategic role.
In conclusion, our findings suggest some of the reasons for the failure of HRISs to realise
their strategic potential for HR and organisations more generally. In our cases at least, these reasons
include difficulties with maintaining the salience of HRIS implementations in the context of broader
organisational change, the complexity of operationalising HR functions and processes in the forms
required by new or upgraded HRIS applications, the understanding and use of HR metrics, and the
failure to adequately manage user resistance according to an effective change management process.
We suggest that unless organisations are able to recognise these four sets of potential challenges,
the potential of HRISs to enhance the strategic role of the HR function is likely to remain
unrealised.
Role of the Funding Source
Page 30
15476
30
This research is funded by an Australian Research Council (ARC) Linkage Grant (LP0882247) in
collaboration with the Australian Senior Human Resources Roundtable (ASHRR). The ARC selects
research using a competitive application process that ensure that the outcomes will contribute to
issues that are listed as of importance to the National interests. This funding was a Linkage Grant
which required the applicant(s) to collaborate in cash and kind with an industry partner(s) to match
the ARC funding for the project. In this case the research was conducted in collaboration with the
ASHRR , an organisation that represents the interests of senior human resource manager in
Australia. Members are all HR Directors or equivalent and most major organisations in Australia
are represented. For the purposes of this research, ASHRR provided the project with a cash
contribution over the three years of the project, access to three member organisations to conduct the
research and the opportunity to report and receive feedback from their members at regular intervals
as the research unfolded. Neither ASHRR nor the ARC had any further involvement in the
collection, analysis or publication of the research and none of the researchers have any involvement
with either organisation other than for the purposes of this project.
References
Ball, K. S. (2001). The use of human resource information systems: a survey. Personnel Review,
30(5/6), 677-693.
Barron, M., Chhabra, D., Hanscome, R., & Henson, R. (2004). Exclusive Panel Discussion: Tips
and Trends in HRIS. HR Focus, 81(5), 6-7.
Beatty, B. D. (2001). A Framework for Transforming Your HR Function. In A. J. Walker & T.
Perrin (Eds.), Web-Based Human Resources: the technologies and trends that are
transforming HR (pp. 150-172). New York: McGraw-Hill.
Becker, B. E., Huselid, M. A., & Ulrich, D. (2001). The HR scorecard: linking people, strategy, and
performance Boston: Harvard Business School Press
Bee, F., & Bee, R. (2002). Managing Information and Statistics London: Chartered Institute of
Personnel and Development
Bondarouk, T., Ruël, H., & van der Heijden, B. (2009). e-HRM effectiveness in a public sector
organization: a multi-stakeholder perspective. International Journal of Human Resource
Management, 20(3), 578-590.
Bondarouk, T. V., & Ruël, H. J. M. (2009). Electronic Human Resource Management: challenges in
the digital era. International Journal of Human Resource Management, 20(3), 505-514.
Boudreau,
Brown, D. (2002). eHR - victim of unrealistic expectations. Canadian HR Reporter, 15(5), 1.
Burbach, R., & Royle, T. (2010). Talent on demand?: Talent management in the German and Irish
subsidiaries of a US multinational corporation. Personnel Review, 39(4), 414-431.
Page 31
15476
31
Calisir, F., & Calisir, F. (2004). The relation of interface usability characteristics, perceived
usefulness, and perceived easy of use to end-user satisfaction with enterprise resource
planning (ERP) systems Computers in Human Behavior 20(4), 505-515.
Creswell, J. W. (2009). Research Design: Qualitative, Quantitative, and Mixed Method
Approaches: Sage Publications
Dery, K., Hall, R., & Wailes, N. (2006). ERPs as 'technologies-in-practice': social construction,
materiality and the role of organisational factors. New Technology, Work and Employment,
21(3), 229-241.
DeSanctis, G. (1986). Human Resource Information Systems: A Current Assessment. MIS
Quarterly, 10(1), 15-27.
Farndale, E., Paauwe, J., & Hoeksema, L. (2009). In-sourcing HR: shared service centres in the
Netherlands. International Journal of Human Resource Management, 20(3), 544-561.
Florkowski, G. W., & Olivas-Lujan, M. R. (2006). The diffusion of human-resource information-
technology innovations in US and non-US firms. Personnel Review, 35(6), 684-710.
Grant, D., Dery, K., Hall, R., & Wailes, N. (2007). Human Resource Information Systems Usage in
Australian Firms: a survey Mimeo: University of Sydney
Grint, K., & Woolgar, S. (1997). The Machine at Work: Technology, Work and Organisation
Cambridge: Polity Press.
Gueutal, H. G. (2003). The Brave New World of E-HR. Advances in Human Performance and
Cognitive Engineering Research 3, 13-36.
Haines, V. Y., & Lafleur, G. (2008). Information technology usage and human resource roles and
effectiveness. Human Resource Management, 47(3), 525-540.
Hannon, J., Jelf, G., & Brandes, D. (1996). Human resource information systems: operational issues
and strategic considerations in a global environment. International Journal of Human
Resource Management, 7(1), 245-269.
Hendrickson, A. R. (2003). Human Resource Information Systems: Backbone Technology of
Contemporary Human Resources. Journal of Labor Research, 24(3), 381-394.
Hewitt Associates. (2007). 2nd European HR Barometer: Trends and Perspectives on the Human
Resource Function in Europe 2006/07 [Electronic Version].
Huselid, M. A. (1995). The Impact of Human Resource Management Practices on Turnover,
Productivity, and Corporate Financial Performance Academy of Management Journal,
38(3), 635-672.
Hussain, Z., Wallace, J., & Cornelius, N. E. (2007). The use and impact of human resource
information systems on human resource management professionals. Information &
Management, 44(1), 74-89.
Kavanagh, M. J., Gueutal, H. G., & Tannenbaum, S. I. (1990). Human resource information
systems: development and application. Boston, Mass: PWS-Kent Publications Co.
Kavanagh, M. J., & Thite, M. (2009). The Future of HRIS: Emerging Trends in HRM and IT. In M.
J. Kavanagh & M. Thite (Eds.), Human Resource Information Systems: Basics,
Applications, and Future Directions (pp. 409-418). California: SAGE Publications Inc.
Kinnie, N. J., & Arthurs, A. J. (1996). Personnel specialists' advanced use of information
technology. Personnel Review, 25(3), 3- 19.
Kovach, K. A., & Cathcart, J. C. E. (1999). Human Resource Information Systems (HRIS):
Providing Business with Rapid Data Access, Information Exchange and Strategic
Advantage. Public Personnel Management, 28(2), 275.
Lawler, E., & Mohrman, S. (2003). HR as a Strategic Partner: What Does It Take to Make It
Happen? Human Resource Planning, 26(3), 15-29.
Lawler, E. E., Levenson, A., & Boudreau, J. W. (2004). HR Metrics and Analytics: Use and Impact.
Human Resource Planning, 27(4), 27-35.
Lengnick-Hall, M., & Moritz, S. (2003). The Impact of e-HR on the Human Resource Management
Function. Journal of Labor Research, 24(3), 365-379.
Page 32
15476
32
Martinsons, M. G. (1994). Benchmarking human resource information systems in Canada and Hong
Kong. Information & Management, 26(6), 305-316.
Morley, M. J., Gunnigle, P., O'Sullivan, M., & Collings, D. G. (2006). New directions in the roles
and responsibilities of the HRM function. Personnel Review, 35(6), 609-617.
Neuman, W. L. (2000). Social Research Methods: Qualitative and Quantitative Approaches (4th
ed.). Boston: Allyn and Bacon
Ngai, E. W. T., & Wat, F. K. T. (2006). Human resource information systems: a review and
empirical analysis. Personnel Review, 35(3), 297-314.
Orlikowski, W. J. (2000). Using Technology and Constituting Structures: A Practice Lens for
Studying Technology in Organizations. Organization Science, 11(4), 404-428.
Orlikowski, W. J., & Barley, S. R. (2001). Technology and Institutions: What Can Research on
Information Technology and Research On Organizations learn From Each Other? . MIS
Quarterly, 25(2), 145-165.
Pinch, T. J., & Bijker, W. E. (1984). The Social Construction of Facts and Artefacts: or How the
Sociology of Science and the Sociology of Technology might Benefit Each Other. Social
Studies of Science (Sage), 14(3), 399-441.
Ruël, H., Bondarouk, T., & Looise, J. (2004). E-HRM: Innovation or Irritation. An Explorative
Empirical Study in Five Large Companies on Web-based HRM Management Revue, 15(3),
364-380.
Ruël, H., Bondarouk, T., & Looise, J. K. (2004). E-HRM: Innovation or Irritation? An Exploration
of Web-Based Human Resource Management in Large Companies Utrecht: Lemma
Publishers
Ruta, C. D. (2009). HR portal alignment for the creation and development of intellectual capital.
International Journal of Human Resource Management, 20(3), 562-577.
Sheehan, C., Holland, P., & De Cieri, H. (2006). Current Developments in HRM in Australian
Organisations Asia Pacific Journal of Human Resources, 44(2), 132- 152.
Stake. (1994). Case Studies In N. Denzin & Y. Lincoln (Eds.), Handbook of Qualitative Research
Thousand Oaks Sage Publications
Strohmeier, S. (2007). Research in e-HRM: Review and implications Human Resource
Management Review, 17, 19-37.
Strohmeier, S. (2009). Concepts of e-HRM consequences: a categorisation, review and suggestion.
International Journal of Human Resource Management, 20(3), 528-543.
Tansley, C., Newell, S., & Williams, H. (2001). Effecting HRM-style practices through an
integrated human resource information system: An e-greenfield site? Personnel Review,
30(3), 351- 370.
Thomas, R. J. (1994). What machines can't do: politics and technology in the industrial enterprise
Berkeley: University of California Press.
Towers Perrin. (2008). Staying Ahead of Change: Evolving Realities and Expectations in HR
Outsourcing. Study of HRO Effectiveness [Electronic Version].
Ulrich, D. (1997). Human resource champions: the next agenda for adding value and delivering
results Boston: Harvard Business School Press.
Valverde, M., Ryan, G., & Soler, C. (2006). Distributing HRM responsibilities: a classification of
organisations. Personnel Review, 35(6), 618-636.
Voermans, M., & Van Veldhoven, M. (2007). Attitude towards E-HRM: an empirical study at
Philips. Personnel Review, 36(6), 887-902.
Walker, A. J. (2001). How the web and other key trends are changing human resources. In A. J.
Walker & T. Perrin (Eds.), Web-based human resources: the technologies and trends that
are transforming HR (pp. xiii-xxviii). New York: McGraw-Hill.
Williams, R., & Edge, D. (1996). The Social Shaping of Technology. Policy Research, 25(1), 865-
899.
Page 33
15476
33
Wilson-Evered, E., & Hartel, C. E. J. (2009). Measuring attitudes to HRIS implementation: A field
study to inform implementation methodology. Asia Pacific Journal of Human Resources,
47(3), 374-384.
Yin, R. (2003). Case Study Research: Design and Methods (3rd ed.). Thousand Oaks: Sage.