Human Resource Information Systems in the Abu Dhabi National Oil Company - Case Study Example

HIRS - ADNOC Name Class Unit Table of Contents Table of Contents 2 1. Introduction: 3 2. HRIS in the Company 4 3. Implementation process: 5 3.1 Introduction 5 3.2 Feasibility study 5 3.3 Selecting the project team 5 3.4 Coming up with requirements 5 3.5 Vendor analysis 6 3.6 Package contract negotiation 6 3.7 Training 6 3.8 Tailoring the system 6 3.9 Collecting data 7 3.10 Testing 7 3.11 Maintenance 7 3.12 Evaluation 7 4. Organizational policies and activities supported by the HRIS: 7 4.1 Data collection and activities 8 4.2 Payroll module 8 4.3 Administration 8 4.4 Training 9 4.5 Performance management 9 4.6 Self service 9 4.7 HRIS and ADNOC performance 9 5. Staff reaction to the implementation of HRIS: 10 6. Staff training during the implementation period and after 10 7. Conclusion 11 8. References 11 1. Introduction: Abu Dhabi National oil Company (ADNOC) was established in 1971 and is located in Abu Dhabi. The company operates in the oil and gas sector and is a government owned corporation. The company has a capability to oversee production of more than 2.7 million barrels of oil and gas daily and is among the top ten companies in the oil and gas sector (ADCO, 2014). The company has been able to expand its activities through use of subsidiaries. The company has 24 subsidiaries which have employed more than 37,000 workers. Through its subsidiaries, the organisation has been able to operate in both upstream and downstream activities. Abu Dhabi National oil Company (ADNOC) has its operations in Middle East, Europe, Far East and Africa. ADNOC have been able to realise the importance of the human resources. This has led to change the human resource approach through implementation of Human Resource Information System (HRIS) (Boussemma, 2013). I was able to get an interview with Mr. Bader Al Dhaheri who is the company assistant human resource manager who explained the company adoption of HRIS and its implementation at ADNOC. 2. HRIS in the Company ADNOC started using HRIS in 1999 after long consultations with the stakeholders. Prior to that, the organisation relied on human resource management though there was little emphasis on information technology. Human Resource Management (HRM) was utilised to meet all goals. The management had a great task in planning, recruiting, selection and training of the human resources. According to Mr. Bader Al Dhaheri, the company HR department was in some cases overwhelmed. There were other task apart from mentioned activities which included performance appraisal, ensuring good labour relations and handling complaints and grievances. The company saw the need for effective HRM which would enable the firm to run more effectively. The firm was being faced by increasing expectations from the human resource management. Due to these pressures, ADNOC had to change the human resource management process in place and introduce information systems (IS) to support it. According to Mr. Bader Al Dhaheri the company carried out research and proved that use of HRIS was able to enhance professionals’ performance and also helped in firm internal consultancy activities. The organisation was able to see that HRIS helped the HR professionals in the organisation and made them a strategic partner. HRIS was then proposed in 1998 and after consultations, it was implemented in1999. According to Mr. Bader Al Dhaheri, the company was able to gain a lot from the implementation of the process. At the moment, HRIS system at ADNOC has been running as expected with minimal issues. 3. Implementation process: According to Mr. Bader Al Dhaheri, the implementation of HRIS is supposed to be carried out as a project. The process is supposed to start with the acknowledgment of the stage in which planning and implementation process are currently in. the process used at ADNOC involved seven steps (Yasemin, Serdar & Esin, 2012). 3.1 Introduction This was the first step in implementation of the HRIS. ADNOC had to agree on the information which was to be included in the system database before system was put in place. The process at ADNOC involved collecting the agreed business information for HRIS and the process continued until the database was fully configured (Shikha & Karishma, 2012). 3.2 Feasibility study In this step, the feasibility of the system in the organisation is accessed. This involves looking at several areas which includes; the software to be used, future benefits, cost estimate, value addition and calculation of return on investment (ROI). This helps the business to come up with an informed decision which is based on facts and figures (Shikha & Karishma, 2012). 3.3 Selecting the project team In order to implement HRIS, there is need for a project team that will deal with budgeting, establishing timeline and coming up with quality delivery. The efforts of the team are a key determinant of the project success. The members of the team are supposed to be selected from the IT and HR departments. There is also need to ensure that organisation management is involved in the team to ensure that they are able to support ideas (Dusmanescu & Aleksandra, 2011). 3.4 Coming up with requirements During this scope, HRIS scope is defined. This involves giving the processes that will be used in the software. This will be based on the organisation plan and their ability. This step is very essential to be carried out before communication with the software vendor. The company HR policies and processes are defined and analysed at this stage. This helps to eliminate ambiguity when incorporating the software (Dusmanescu & Aleksandra, 2011). 3.5 Vendor analysis This is a step that helps in coming up with the right software developer. The organisation is supposed to look at the vendor track record and goodwill. The organisation shares their requirements with the software developer which enables elimination of ambiguity. After giving the vendor all the requirements, the vendor is able to come up with the cost and timeline for the project completion. The specification for the software is then documented to make sure there is no future ambiguity (Yasemin, Serdar & Esin, 2012). 3.6 Package contract negotiation After the vendor giving their final offer, cost and quality factors are used in making final decision on the order to be followed. The organisation signs the contract with the developer of the system. This lead to commencement of the development work which ensures that there is timely delivery (Yasemin, Serdar & Esin, 2012). 3.7 Training After the contract has been signed, the organisation starts to train members of the project. At the end of the implementation process, managers from other departments are trained on the way in which they can submit and request information from HRIS system (Shikha & Karishma, 2012). 3.8 Tailoring the system This occurs after the system requirements and specifications have been carried out. The step involves design of HRIS system. The process is shared with the organization to ensure that they can give their inputs on areas to be improved (Shikha & Karishma, 2012). 3.9 Collecting data This is the stage where the data that is needed in the system is collected. The organisation is supposed to use a team of HR which collects data for the software needs. The process also involves data validation (Julie, 2006). 3.10 Testing After the system has been developed and data entered, testing is needed. This stage involves user acceptable. This step involves determining whether the software have the capability to deliver the required information (Yasemin, Serdar & Esin, 2012). If the system testing proves it is okay, it is delivered to the organisation. The system is then installed in the user’s PC. The software is then run in parallel with the existing system to ensure that in case of malfunction, the organisation processes will not be hampered. For ADNOC, they had to run a full process cycle (Dusmanescu & Aleksandra, 2011). 3.11 Maintenance After the software is installed, regular maintenance is needed. This is mostly done through a contract with the software development company. 3.12 Evaluation This is the last step in implementation. The software is evaluated after running for a specific time. The organisation determines the value that the software has added to the organisation since implementation (Julie, 2006). 4. Organizational policies and activities supported by the HRIS: According to Mr. Bader Al Dhaheri, ADNOC have been able to benefit a lot from services offered HRIS. Since the system became operational, the organisation has gained a lot through activities and services supported. The human resource department have applied the system in the following activities and policies (Shikha & Karishma, 2012). 4.1 Data collection and activities According to Mr. Bader Al Dhaheri, the organisation have benefited a lot from data collection and monitoring. The organisation have uses online applications to potential employees. The organisation places their job offer in the career section of their website where the employees have to upload their curriculum vitas. The human resource department have a task of gathering all information posted online by job applicants. HRIS plays a very vital role in processing job applications (Yasemin, Serdar & Esin, 2012). The system is used to collect online data where the system module is used for further processing of data. According to Mr. Bader Al Dhaheri, the system have the capability to look at the current trends in the labour market, help in monitoring and scheduling interviews and give scores on certain aspects. ADNOC HRIS system has the capability to ensure that the employees’ track records, profiles and their statistics are in the database. The system has thus helped ADNOC to save time and resources (Dusmanescu & Aleksandra, 2011). 4.2 Payroll module HRIS have helped ADNOC in processing salaries. The organisation has a large number of employees which in some cases led to delays and errors in processing their salaries before implementing HRIS. HRIS have made processing salaries more easy and efficient at ADNOC. Mr. Bader Al Dhaheri claims that the system allows the organisation to access data on the employee performance, overtime hours, and data on absenteeism and their hours worked (Dusmanescu & Aleksandra, 2011). 4.3 Administration HRIS system has made it possible for the organisation employees to easily know their rights and benefits. The organisation has been able to manage all the systems online such as the employee’s pension plans, insurance policies and share management. The employees are able to interact with the administration and give their inputs about what they would like to be changed or any anomaly (Julie, 2006). 4.4 Training HRIS have a module made specifically for training the employees. ADNOC incorporated the training module separately and is used to track the employee skills and qualifications. The organisation module is used to store materials that are vital to enhance employees learning and development. The employees are trained online using the system which helps in saving time and resources. There is also training which is carried out offline but uses materials from the module (Yasemin, Serdar & Esin, 2012). 4.5 Performance management HRIS have helped the organisation in monitoring and evaluating. The organisation is able to look into the areas which they feel there is need for improvement. This has been used by ADNOC to upgrade their system. The system has the capability to gain all information which helps the organisation to have insight on areas to improve (Julie, 2006). 4.6 Self service According to Mr. Bader Al Dhaheri, the HRIS system used by ADNOC allows the employees as well as the professionals to manage the database (Yasemin, Serdar & Esin, 2012). The employees can access their data through a read only mode provided by the module. All the employees have access to the system though use of internet which is provided freely in the organisation (Julie, 2006). 4.7 HRIS and ADNOC performance According to Mr. Bader Al Dhaheri, the organisation performance has been able to improve a lot since the implementation of the system. The organisation has been able to meet its objectives more easily through enhanced training, payroll system, recruitment and ease of administration. ADNOC have recorded increase in efficiency of their processes since the information is easily accessed (Shikha & Karishma, 2012). 5. Staff reaction to the implementation of HRIS: ADNOC introduction of HRIS was implemented with support from the staff. According to Mr. Bader Al Dhaheri, there was low resistance to the implementation of the new system. The management involved all the stakeholders before implementing the new system. The resistance that was experienced at first was based on need for staff retraining and some of the staff perceiving the system as a threat (Julie, 2006). The organisation started by educating the employees on the importance of the system so that they could reduce the resistance. When the employees were able to learn on the benefits of the new system, they were able to fully support it. Mr. Bader Al Dhaheri relates the initial resistance to the status quo. Some of the employees may have wanted to maintain the status quo due to misinterpretations and their level of psychological commitment. Lack of appropriate knowledge on the system had contributed to the initial resistance. The need of some of the employees to feel in control may also have contributed to their resistance (Shikha & Karishma, 2012). 6. Staff training during the implementation period and after Mr. Bader Al Dhaheri asserted that training used by ADNOC was based on workshops and also providing workers with materials related to the system usage and features. The training workshops took a period of two weeks where the software developers would explain more on the system. The employees had a chance to ask questions on areas in which they felt ambiguity existed. The system enabled the employees to have a firsthand experience on the system and also to interact with the developers. The training also helped the management to minimize staff resistance to the program. System training helped the employees to gain understanding of the system and prepared them for the implementation. The main disadvantage experienced during the training is the large number of employees who had to be trained which affected coordination making some of the employees to be left behind in training. According to Mr. Bader Al Dhaheri, training at ADNOC is a continuous process since the system keeps on changing and incorporating new modules (Dusmanescu & Aleksandra, 2011). 7. Conclusion As seen in this case, HRIS is an essential tool in any organisation. ADNOC have been able to manage the employees more effectively and gain a competitive edge. The organisation claims that HRIS have been an investment rather than cost. The organisation management commitment to the systems and offering of training enabled the organisation to reduce resistance. HRIS have enabled ADNOC to make effective decisions. There is also reduction in paper usage and surveys are conducted without usage of papers. Communication have also been enhanced by the between the employees and management. HRIS have enabled the organisation to store, retrieve and report information more easily. After implementing the system ADNOC was able to enjoy fast analysis of information. This shows that implementation of HRIS system at ADNOC have been a success. 8. References Abu Dhabi Company for Onshore Oil Operations (ADCO). (2014). About us, Viewed 12th December 2014, http://www.adco.ae/en/adnocgroup/pages/aboutadnoc.aspx Boussemma, M. (2013). ADNOC and it’s group of companies, Abu Dhabi National Oil Company (ADNOC), Viewed 12th December 2014 https://sdi.abudhabi.ae/Sites/SDI/Content/EN/PDF/stakeholders- adnoc,property%3Dpdf,bereich%3Dsdi,sprache%3Den,rwb%3Dtrue.pdf Dusmanescu D. & Aleksandra B. M., (2011). The role of information systems in human resource management, MPRA Paper No. 35286, Viewed 12th December 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 12th December 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 12th December 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 12th December 2014, http://www.issbs.si/press/ISBN/978-961-6813-10-5/papers/ML12_029.pdf Read More