Human Resources Information System at ADNOC - Case Study Example

Human Resources Information System (HRIS) at ADNOC Name Unit Date Table of Contents Table of Contents 2 Introduction 3 HRIS 4 Description 4 History of HRIS at the company 5 Model being by the company 6 Services provided by HRIS 7 Data collection and monitoring 7 Record keeping 7 Payroll module 8 Administration of Benefits 8 Training module 9 Managing the performance 9 Self Service 9 HR activities supported by the HRIS 10 Employees’ administration 10 Recruitment 10 Training and development 11 Organization management and planning 11 Implementation process 11 Adoption phase 11 Implementation phase 12 Institutionalization phase 12 Staff reaction to the implementation of HRIS 12 Staff training during the implementation period and since 13 Benefits and pitfalls experience by the HR Department with the HRIS 14 Conclusion 15 References 16 Introduction Abu Dhabi National oil Company (ADNOC) is a government owned corporation located in the United Arabs Emirates. The company is one of the world largest oil companies due to its large access to the oil and gas reserves. The company was established in 1971 with an aim to operate in the field of oil and gas industry. Over the years, ADNOC has grown to expand their activities in the oil and gas sector. Presently, the company is estimated to produce a total of 2.7 million barrels of oil in each single day. ADNOC policies are overseen through the Supreme Petroleum council which is shared by the H.H Sheikh Khalifa Bin Zayed Al- Nahyan the ruler of the UAE. The company has 24 subsidiaries and more than 37,000 employees. ADNOC participates in both upstream and downstream activities which include transport, marketing, shipping and distribution. The company has been able to expand its operations in Africa, Australia, Middle East, Far East and Europe. Human resource management is vital in every company. ADNOC human resource management has been cited as well organized due to their flexibility, high quality and comprehensive services. The company human resource has been at par with the recent technological trends of human resource management (ADCO, 2014). This has been through the use of Human Resource Information System (HRIS). I was granted an interview with Abu Saleem who is the human resource assistant at ADNOC to discuss issues related to human resource information system implementation at the company. HRIS Description The human resource function started using HRIS during the 1990s to help in their daily work. The main aim was to use the system to help in planning, administration and decision making. Human resource information systems have been evolved to a more sophiscated system within the organization. Use of information technology has become imperative for organization human resource management. According to Mr. Saleem, it has the features which helps in supporting the decision making process and managing the human capital at the company. The system can help the organization to perform several duties using a simple storage and information communication in a computer (Julie, 2006). Modern HRIS is a vital component in every company. The system has the capability to meet the needs of the stakeholders of the company. History of HRIS at the company According to Mr. Saleem, ADNOC started using human resource information system in 1999. This was after the company management, human resource department and employee agreed on the system to be put in place. The human resource information system was first subjected to company employees’ awareness. The employees were enlightened on the system workability, how it was set to benefit them as well as the modules it had. During this time, the computer network was not as developed as it is today. The HRIS at the moment was at functional level. The main tasks that were carried by the system included data collection concerning the employees, evaluation of their experience, skills systematization, recruitment, employees’ selection and promotion (Julie, 2006). During the time of introduction, not all the employees in the company could perform operations. There were trained personnel mainly from the human resource department. The employees used the mainframe computers and separate computers to work on the system. As information technology progressed, there was a surge in the number of the employees from the company who could access the system according to the permissions that are set by the ADNOC human resource department. The falling prices of the computers made it possible for all the employees to be part of the system. The structure of the human resource information system also became more complex. One of the major issues that appeared at ADNOC at this time according to Mr. Saleem is data privacy and security. There was rampant rise in cyber crime which has continued up to now. This meant that the company had to look for ways in which the employees’ data could be safe (Julie, 2006). Mr. Saleem says that the company has followed the development of the HRIS system making adjustment as the system changes according to technology. He asserts that if the company fails to follows the trends in information technology, there is a danger of insufficient or ineffective system in place. The system if not monitored and adjusted according to the market may lead to errors in other systems. Model being by the company According to Mr. Saleem, the individual software for the human resource information systems differs depending on the company use. The software companies offer three types of HRIS models to the companies. The first type of module considers human resource management as a part of the ERP systems. The second group merges different modules to come up with an integral HRMS system for the business. The third group is a single function human resource information system. The third group is ideal for small companies that do not have a lot of functions to automate. ADNOC utilizes integral HRIS system which is the second group model. This combines different functions of the company and computerize them. According to Mr. Saleem, the company HRIS model can be explained using the resource flow HRIS model. The system does not only have output information but also looks at the data storage, processing and gathering (Dusmanescu & Aleksandra, 2011). The model combines all the previous models into a resource flow. According to the resource flow model, there are three subsystems involved which are data input, the HRIS database and the subsystems which makes the processed data to be available to the users. ADNOC pays attention to their human resource flow using the system. According to Mr. Saleem, the system has saved the company a lot of revenue through efficiency and time management. Services provided by HRIS ADNOC have benefited a lot from the services offered by the HRIS system. According to Mr. Saleem, the company has gained a lot since the system became operational (Julie, 2006). There has been a lot of application in the system through the human resource (HR) department. Data collection and monitoring ADNOC careers application uses online recruiting. According to Mr. Saleem, the application process allows the candidate to give personal details cornering the position they are applying for. The company human resource department has a task to collect and process the job applications that are made online. This is where the HRIS system came into use due to its accessibility to online content. The system has the capability to collect online data. After the company has collected the data, the HRIS module continues to process them into the next level. The process includes generating the labor market statistics, monitoring the interviews and putting the score based on the employees who has the mandate. The systems also keep the internal statistics concerning the employees, track their profiles and makes online remarks (Dusmanescu & Aleksandra, 2011). This saves the human resource department time and resources in carrying out the process. Record keeping The company has a responsibility to keep and maintain all the employees’ data. ADNOC uses the HRIS for the purpose of record keeping for the data for all the employees. For a company with a large number of employees, the system has saved a lot through efficiency. ADNOC data is stored according to set standardization. Mr. Saleem emphasized that this helps the company to easily manage and track the information they need about the employees. For example, if the company wants to promote a certain employee, they can check whether they are qualified due to standardization. The system has been effective due to standardization of data. The data involves employees’ contacts, wage history, work attendance, training, credentials and other personal data. ADNOC can easily track the workers record using the system (Dusmanescu & Aleksandra, 2011). Payroll module Before implementing the HRIS system, there were issues pertaining to employees salaries. The time of processing and errors usually occurred due to the large number of the employees. Through integrating to the system financial management of the company, the processing of the salary became effective and efficient. The financial management module has been able to attain a lot of assistance from the HRIS model. This is through gaining access to data such as working hours for the employees, absences and their performance. According to Mr. Saleem, the two systems work in synergy with each other (Dusmanescu & Aleksandra, 2011). Administration of Benefits The employees of ADNOC participate in various forms of benefits. The employees are made aware of what they are entitled to in terms of rights and benefits. The pension plans, insurance policies, and the company shares distribution are all managed through the system. The system provides monitoring of all the programs and makes it known in case there are any anomalies. This is the best method as the employees can fill forms and give their information about their preferences (Dusmanescu & Aleksandra, 2011). Training module The company uses the training and learning module to help in administering and tracking the employees training. Though the company can buy this module as a separate entity, ADNOC utilize the HRIS to provide the module functionality. The module has the capability to track the employees’ educational status, qualifications and skills. The module stores the materials that are essential for learning and development of the employees. ADNOC utilizes the system to test their employees online hence saving time and money (Julie, 2006). Managing the performance Monitoring the company and evaluating are important functions of the HRIS. The process offers insights on the areas where there is need for improvements and needs for system upgrade. The module has several features that enable it to monitor its performance. This gives the company management valuable information concerning the system (Dusmanescu & Aleksandra, 2011). Self Service This is a module that operates in the web environment that allows the HR professionals and the employees to manage the database. According to ADNOC, the employees have a privilege to check their data in a read only mode. The company manages this through provision of internet to its workers. ADNOC software solution to the issues enables the employee’s database, HR planning module and employee’s satisfaction surveys. The software has the highest level of utilization in the company. The decision was taken strategically to make sure that it has ease of use and functionality (Julie, 2006). HR activities supported by the HRIS HRIS supports several functions for the human resource department. These functions are employee administration, recruitment, time and attendance, training and development and organization administration. With the advancement of technology, the human resource tasks have been reduced as witnessed with the HRIS. Most of the tasks that are performed by the human resource managers have been reduced and made simpler (Yasemin, Serdar & Esin, 2012). Employees’ administration The HRIS system has data concerning the employee’s date of birth, time of hire, sex and contacts among other personal details. The human resource department benefits from the system capability to maintain and process this data. The data also involves the job title that the employee is assigned and remuneration (Shikha & Karishma, 2012). Recruitment This involves the HRIS subsystem that gives information cornering the positions available and the number; department and details whether the position is full time or part time. In some instances, the system provides a form in which the applicant can put the details and resumes. This helps in scanning the resumes to identify competencies and experience. This saves the human resource department time as the process is much faster. Initially, this process was hectic for the human resource department which led to cost and time constraints (Shikha & Karishma, 2012). Training and development The human resource had to make sure that there was training and development among the employees. This has been made easier through the use of HRIS. The system has a module where the employee’s skills, training, certificates and competencies can be found. The system provides information on career planning by giving information on the positions which a candidate can fit in. this is based on the employee skill and competencies (Yasemin, Serdar & Esin, 2012). Organization management and planning The HRIS have a module in which there is information concerning the organization structure and job positions descriptions. The module has the capability to link to several workers profiles. This helps in making the organizational management job easier for the human resource department. The planning task of the human resource department is of also made easier through use of HRIS (Shikha & Karishma, 2012). Implementation process ADNOC had to follow a process during their HRIS software implementation process. According to Mr. Saleem, the company followed the following process. HRIS have a three step implementation process. Adoption phase This involves the organization determining the type of software to purchase. This is done through a need analysis (Dusmanescu & Aleksandra, 2011). The analysis looks at what the system is expected to perform, the company background, management considerations, technical considerations, HR considerations and pricing. Implementation phase ADNOC had to select a project team during this phase. The team was made up of expertise from outside the company who were knowledgeable on the technical and change management. The group was expected to help in organization with the implementation of the software. Apart from the team of experts, there were other officials from the organization functional areas. They had to ensure that the system was implemented effectively as they were to use it. The data at this stage was converted from the old system and tested using the HRIS. The testers and users of the software had to give their feedback before giving the project a go ahead. In this phase, the system security was enhanced for the users (Julie, 2006). Institutionalization phase This is the final stage of implementation that was used at ADNOC. The users had to be trained on the system. The main aim was to enable the stakeholders to reap the benefits that are associated with the system. This process was vital due to fact that most people are very sensitive to change. Due to the complexity of the system, it took time before the employees were comfortable with it. In this stage, it is important to understand the difficulty that is experimented during change. The stakeholders should not underestimate the complexity that is associated with a system. According to Mr. Saleem, the difficulty is sometimes even experienced at the highest level of the organization (Yasemin, Serdar & Esin, 2012). Staff reaction to the implementation of HRIS When introducing a new system, the users may opt to accept or resist. This is based on their evaluation of the expected change and how it will affect them. According to ADNOC, HRIS introduction implementation was not easy at first. The management informed the employees through a meeting. At first, there was confusion as it was a new phenomenon to them. According to Mr. Saleem, the resistance was based on the interaction between the system characteristics and the expected social context relating to its use. Some of the company individuals associated the system as a threat to them. Negative expectations of the system made some of the workers reluctant to accept the new system. In order for the workers to accept the HRIS system, they have to be educated on the system benefits. The company called for the workers to be taken to a training workshop. They were given the insights on the system, the benefits and the expected efficiency from the new system (Dusmanescu & Aleksandra, 2011). The enlightenment leads to the workers changing their mind and supporting the HRIS system. The causes of resistance to new systems are related to status quo bias theory. In some instances, the employees want to maintain their status quo status. This is due to misperceptions, physiological decision making and psychological commitment of the workers. Some of the workers may perceive that the new system will eliminate the previous benefits that they enjoyed using the old system. There are also instances in which the employees want to feel that they are in control leading to resistance. According to ADNOC, the resistance was due to lack of appropriate knowledge on the system (Julie, 2006). Staff training during the implementation period and since According to Mr. Saleem, ADNOC utilized training sessions through giving the workers materials related to the system and training workshops. The company had to utilize all the training resources at their disposal during this time. The employees would be called for the training meetings which were carried once a week. During the meetings, the system developers could explain to them how the system works and give them materials. During this period, the workers could ask questions on the areas that they could not understand concerning the system. This method was very effective for ADNOC as the employees were able to appreciate the system. The management support for the system enabled the employees to accept it. The training reduced the perceived difficulty that the system was associated with. ADNOC was able to prove that having an organization support for the change helps to reduce the switching costs and time for implementation (Yasemin, Serdar & Esin, 2012). This is a process that continues as the technology advances and changes are effected in the software. Training does not stop since the technology is changing at a rapid rate. Benefits and pitfalls experience by the HR Department with the HRIS ADNOC administrative and the human resource department had become big due to company growth. The operations of the human resource departments could only be helped through the use of HRIS. The efficiency of the entire organization was improved to a great extent. The human resource department has benefited through having a single database for all the company employees. The database provides important information on the workers which enables the human resource department to manage the employees efficiently. The database can be updated in real time which is very important as ADNOC is a regionally diversified company (Dusmanescu & Aleksandra, 2011). The traditional system included a lot of paper work which had a higher chances of errors and much slower. There are fewer delays in the salary of the employees as the processing is done electronically making it fast. The employees’ service from HR have benefited through ease of access to their data using single software. The employee also saves a lot of time as they can make their requests online and avoid waiting in the traditional system. The employees are also able to make decisions as the system is interactive and also disseminates information to workers. For the company HR, there is increased efficiency in the process of making the decisions. The human resource department also benefits from transparency that is exhibited through the system. Using the system, it’s easy to control the budget and reduce the costs. The main pitfalls from the system are associated with data security and privacy. This is due to increase in cyber crime and other online scandals. The company has to ensure they have the tight security for the data. The human resource department has an obligation to ensure that they are able to maintain the large database without compromising the privacy and security. The human resource tasks have also been taken by the HRIS making the HR department to lose some of their initial objectives (Yasemin, Serdar & Esin, 2012). Conclusion ADNOC have been able to benefit through adoption of HRIS. This has been due to the services that the system provides. The services provided by the HRIS include record keeping, data collection and monitoring, payroll, administration and training among others. The system has also helped the company human resource duties such as recruitment, training and development, employees’ administration and organization management. Through this, the human resource deportment has saved a lot in time and efficiency. The company used the standard three step implementation process of the HRIS system. This helped the employees to be easily acquainted to the system. Though there was initial resistance, the system was adopted through creating awareness and training the employees. The system has benefited the company especially the human resource department though there are associated problems with security risks and data privacy. References Abu Dhabi Company for Onshore Oil Operations (ADCO), 2014, About us, Viewed 9 May 2014 http://www.adco.ae/en/adnocgroup/pages/aboutadnoc.aspx Dusmanescu D. & Aleksandra B. M., 2011, The role of information systems in human resource management, MPRA Paper No. 35286, Viewed 9 May 2014 http://mpra.ub.uni-muenchen.de/35286/ Julie B., 2006, ‘Human Resources Management and Technology,’ Human Resources Management in Perspective, Vol. 1, no2, pp. 50-76, Viewed 9 May 2014 http://catalogue.pearsoned.ca/assets/hip/ca/hip_ca_pearsonhighered/samplechapter/0132270870.pdf Shikha N. K., & Karishma G., 2012, ‘Human Resource Information System and its impact on Human Resource Planning: A perceptual analysis of Information Technology companies,’ Journal of Business and Management, Vol.3, no. 6, pp. 6-13. Viewed 9 May 2014 http://iosrjournals.org/iosr-jbm/papers/vol3-issue6/B0360613.pdf Yasemin B., Serdar B., & Esin E., 2012, The Importance Of Using Human Resources Information Systems (HRIS) and A Research On Determining The Success Of HRIS, managerment knowledge and learning international conference. Viewed 9 May 2014 http://www.issbs.si/press/ISBN/978-961-6813-10-5/papers/ML12_029.pdf Read More