Decision on the New System - Essay Example

07 July 2008 Decision on the New System The role of a business organization's workforce can never be overstated. Management of this resource can be made more efficient through the installation of an information technology system which will enable the managers to track all the concerns, activities, processes, and issues regarding this function. The Human Resource Management Systems (HRMS) is an application which aid companies in realizing this goal as it offers administrative support that is essential in maintaining employee records including personal history, skills, capabilities, accomplishments and salary.

Specifically, HRMS encompass payroll, work time, administration of benefits, HR management system which covers the course from the employees' application to retirement, recruiting, and training. In consideration of how this new system will be installed in the business organization, it is imperative that it consider the cost and benefits of developing in-house versus outsourcing. In order to do so, we will look at the processes that the company will need to undertake in each alternative. For a decision to outsource, the company will simply search for a reliable company in the market which can supply it with an already existing system.

The demand for HRMS has already generated manufacturers which gained expertise in building this system. In recognition of the differing needs of companies, these manufacturers also offer customizable systems to suit the preferences of their clients. Thus, it is possible for the company to find a supplier which will make possible the design of an HRMS which is specifically tailored for its needs. Haag and Cummings outline the major processes of software development within a company which include: project planning; feasibility study, and initiation stage; recruitments gathering and systems analysis; systems design; building; testing; installation, implementation or deployment; and maintenance.

With the long process and stages that the development and implementation will undergo, the company will spend time and money. This is hard especially if the company lacks the expertise in establishing this system.For a generic system like HRMS which handles mostly administrative functions, it is recommended that a company opt to outsource this system. Looking at the processes of developing a system and looking at the number of manufacturers, it is deemed to be less costly to outsource. It will save the company of the time and effort enabling it to focus on its core competence.

The system can be installed immediately after purchase and the manufacturer will conduct the trainings. It can also be customized according to the organization's requirements and will be maintained by the manufacturer. As HRMS are often generic, it is really more logical to outsource. More specific systems can be developed in-house especially if there are needs which manufacturers cannot meet.ReferencesHaag, S. & Cummings, M. 2007, Management Information Systems for the Information Age, Academic Internet Publishers Incorporated