HR Information System Application in HR Functions - Case Study Example

HR Technology Case Scenario Presented DeVry Case Scenario: HR Information System Application in HR functions Introduction Business operations in the modern world have become more complex and executing them requires adoption of technology to enhance efficiency and cost effectiveness. Indeed, to remain competitive and profitable most organizations are forced to complement their human resource (HR) with technology application systems. In a business setup, various human resource functions need to executed on a daily basis where more precision is needed for businesses with more than one branch. Such HR functions include; planning, recruitment, selection, hiring, orientation, training, team building, performance evaluation and improvement, payroll and rewarding (Tanke, 2000). Normally, HR function involves executing the stated functions in order to achieve an organization’s set goals and objectives as well as providing a guide and support on all issues affecting its employees (Armstrong, 2006). One such business faced with a challenge of executing its HR functions in a seamless, efficient and cost effective manner is Castle Family Restaurant which operates eight restaurants in Northern California. The organization has 300 – 340 employees where 60% are on part-time and 40% on full time and where the operations manager, Jay Morgan doubles as the HR manager. To reduce operations costs associated with travelling to the various branches and time involved, the business requires a Human Resource Information System (HRIS) to execute scheduling, recruitment, hiring, payroll management and respond to employees and customer queries. The move is timely since HRIS will help Mr. Morgan to work from a central location, effect simultaneous decisions, save on gasoline costs, monitor and improve performance. The other advantage of HRIS is that it helps to integrate HR functions for the various branches. The assignment therefore, evaluates the various HRIS application systems, the vendors and recommendations on the most appropriate HRIS from the best vendor. Types of HRIS systems HRIS helps to gather, organize, store and retrieve data for ease of decision making and effective employee relations. It also helps to increase employees’ productivity by providing necessary capacity and support required to carry out various functions (Kleynhans, 2010). Numerous HRIS exist in the market ranging from the transaction processing systems to the more integrated systems with intranets and web HR portals that allow the performance of all HR functions including financial resource utilization. Rainer and Cegielski (2011) identified three main types of HRIS that include transaction processing systems (TPSs); functional area information systems (FAIS) and Enterprise resource processing systems (ERPS). Transaction processing systems allows middle and lower level managers and staff to collect, store, process and monitor transactional data from all business transactions. Such information is kept in the database to facilitate decision making in other functions and such a system must therefore avoid errors and downtimes. TPS has a standard process regardless of the industry, where data is first entered into a computer by people or using a device. The data is then processed using batch processing or online processing. This system makes inventory management easier, possible to identify peak and off-peak period. For Morgan such a system would help to determine the number of part-time employees and when they are needed. FAIS provides lower and middle level managers with information along the functional areas which they use to plan and control their operations. The system provides information in a variety of reports relating from marketing, staffing, payroll among others. Normally, the information is discrete though complete for each functional area. One shortcoming of this information system is that it does not allow for full integration and therefore not suitable for use by top level managers who need to made decisions across the board. Enterprise Resource Planning (ERP) systems integrates all the business processes from planning, management to use of organization’s resources all effected under a common software platform. Each business process is designed to produce a specific outcome. In short, ERP is designed to completely integrate all the functional areas of a business and allow seamless flow of information across the areas. The use of this system has gained prominence among most business due to their suitability for use by both the lower and top cadre managers for decision making. Organizations can have customized ERPS to suit their unique business operation or acquire commercially available ERP software that are often standardized. The latter is more common with most organization where several software vendors exist in the market. The ERP software is recommended to Castle Family Restaurants given its ability to integrate business processes for all the eight branches where each data captured helps to realize a certain outcome. In addition, the software allows intranet and web communication unlike other software discussed. Finally, this is the only software that allows the top level managers like jay Morgan to access the information across the branches and functional areas for ease of decision making. To cut on cost and increase efficiency, Morgan will be able to process and analyze the information captured from a central office. Lead times, downtimes, peak times will be established and therefore plan effectively on recruitment, placement and payroll processing. HRIS Vendor Choice Various HRIS vendors are available in the market and include; SAP, Oracle and Peoplesoft. Among these, SAP and Oracle are the major HRIS software vendors where research has shown that Oracle as a vendor and its software is superior to SAP offering. In terms of comparison, both companies offer a wide range of business solutions including business application software, human resource management, database and technology, cloud, mobile solutions. Both companies have human resource management software with varying specifications. For example, SAP has the Core HR and Payroll software that enables business to automate core HR and payroll processes and consolidate data from different branches on a single platform. It also simplifies and standardizes payroll processes and ensures a compliance with local laws and regulations. In addition, the soft helps to increase employees’ productivity by minimizing disruptions and downtime. It’s unique is that it allows role based access to HR data for employees and managers (SAP, 2012). In contrast, Oracle has the JD Edwards EnterpriseOne HCM software. The software just like SAP “streamlines processes by providing tightly integrated recruiting, HR, time, accounting and payroll function.” Its suitability is that the soft ware is designed to reduce administrative costs supported with a web-based employee and manager self service functionality. The software is also automated to monitor staff performance and career development and increase productivity. As opposed to SAP software, Oracles offers full range HR compliance for US and Canada employment insurance compliance. In addition, it has additional payroll compliance features like FLSA, federal and state tax compliance and reporting features that are absent in SAP software. Oracle’s customer support service and physical presence is wider than SAP thus quick problem solving (Oracle, 2012). From a business point of view Oracle software offers more benefits on a single platform for enhanced productivity at reduced cost. Conclusion Technology adoption in HR functions has increased over the years especially where organizations are more focused on reducing costs, lead times in decision making and improving efficiency. Where companies operate more than one branch it makes business sense to streamline their operation and operate in a seamless fashion. This can only happen through adoption of HRIS that allow managers to plan and manage a large workforce scattered over time and space. Several HRIS soft wares are in the market where key considerations have to be made when deciding which to take. These includes; compatibility, web-based, analytics and reporting and compliance to laws and regulations. Therefore, the choice should be more focused on internal processes and conditions than general suitability. References Armstrong, M. (2006). A handbook of human resource management practice, 10th ed. London: Kogan Page Limited Cegielski, C.G. & Rainer, R.K. (2011). Introduction to information systems: Enabling and transforming business, 3rd ed. New Jersey, NJ: John Wiley and Sons Publishers. Kleynhans, R. (2006). Human resource management: Fresh perspectives. Cape Town: Pearson Prentice Hill Tanke, M.L. (2000). Human resources management for hospitality industry, 2nd ed. New York, NY: Delmar Thompson Learning Publishers Oracle (2012). JD Edwards enterpriseone human capital management solution. Accessed on November 19, 2012. Retrieved from www.oracle.com/us/products/application/jd-edwards-enterpriseone/human-capital-management/overview SAP (2012). Streamline and automate your core HR and payroll processes with our leading-edge software. Retrieved on November 19, 2012 from www.sap.com/lines-of-business/hr/core-hr-and-payroll/index.epx Read More