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Hris cost benefit value analysis

26/11/2021 Client: muhammad11 Deadline: 2 Day

Running head: HRIS- PROJECT MANAGEMENT ROADMAP 1

HRIS- PROJECT MANAGEMENT ROADMAP 7

HRIS- Project Management Roadmap

February 24, 2018

HRIS- Project Management Roadmap

Project Management Process

A Human Resource Information System provides various functions that enhance an organization’s performance regarding its human resources. In the development of an HRIS system for Gladwell Grocery Stores, the project management process has to appear followed carefully. The steps explained below (Kerzner & Kerzner, 2017).

Project Definition

· Scope Statement Development - The aim of developing an HRIS system for Gladwell Grocery Store will be to enhance the organization’s performance management process.

· Selection of a Planning Team -The planning team must involve staff from HR, IT and the senior management of the store

Project Planning – It requires Identification of deliverables. The company must set goals for the HRIS system and create a work breakdown structure for the same. The following table shows needed deliverables for completion.

Deliverable

Person Responsible

Aligning HRIS with strategy

HR Manager

Approval of HRIS and timeline setting

Operations

Technical Advising

IT Manager

System Specific questions

Vendor

User training and feedback

Departmental Managers

Budget and Return on Investment benchmarking

Finance Manager

Project Implementation –This involves installing the HRIS system. AT this phase, staff receives training on how to use the system. The company will observe the order to see how it works. Feedback will be expected at this point so that any arising issues can resolve.

Project Management and Control – Projects receive management under specific controls like a budget and risk management plan. It will also involve people management to see whether they have integrated into the system (Kerzner & Kerzner, 2017). Tracking data and reviewing it and the deliverables discussed.

HRIS Cost Justification

HRIS COST-BENEFIT ANALYSIS MATRIX

Direct (Hard)

Indirect (Soft)

Benefits

Revenue Enhancement

Better performance management

Higher Staff Productivity

More customer acquisition-Revenue up by 20% to $600,000

Employees motivated

Cost Reduction

Reduced cost of performance reviews

Reduced performance management paperwork

(costs to reduce from $50,000 to $20,000)

Less time of performance reviews

Progressive performance management

Cost

New Implementation Costs ($140,000)

System Installation

Software Licenses

Training Admin

Bandwidth monthly fees

Productivity goes down during system installation

Under the benefits analysis in the table above, the organization will achieve better performance management hence more customer acquisition, and this will lead to higher sales for the grocery store. Employees will be able to take control of their performance thus helping them to focus on the customers and sell more, resulting in a positive effect on the bottom-line. There will be higher staff productivity due to employee motivation. The store will be able to realize more sales since employees are motivated to work and have an aim of doing their best for the organization.

Under the cost reduction bracket, the company will be able to reduce many costs associated with performance management as there will be less traveling through branches to carry out appraisals. There will also be less paperwork hence saving costs for the company. Due to the HRIS, there will be less time spent on performance management since everything will be automated and performance tracking daily.

There will be new implementation costs as a result of the HRIS. Some of these costs include the installation of the system and training of employees to use the same. Other costs will be the license for the software use which payout annually. Bandwidth fees must also be paid regularly to ensure the system operates well.

Cost-Benefit Analysis

Under the benefits, the customer base is expected to increase, and revenue supposed to go up by 20% hence making it $600,000/. There will be a cost reduction in transport and less paperwork, and this is expected to go down from $50,000 to $20,000.

The new implementation costs will be $140,000 but the organization will be growing and will collect more revenue. When looking at the prices against benefits, it is justifiable for the project to proceed since the costs recover as income increases.

HR Metrics

The performance metric will bring the most value to the HR performance function which will be supported by the HRIS (Ulrich & Dulebohn, 2015). The performance metric involves the following.

· Work quality

· Work quantity

· Work efficiency

· Organizational performance metrics

Work Quality Metric- The grocery store will be able to assess the employee performance by looking at factors such as management by objectives where the HRIS will break down the company goals into individual ones (Ulrich & Dulebohn, 2015). The HRIS system will also measure the number of errors and will have an input 360-degree feedback system that will enable employees to have a broader insight into their performance.

Work Quantity Metric- This will enable measuring of employee performance through quantity. The number of sales will determine the output of each employee and will automatically approach completion by the HRIS. Involving the number of calls handled and first call resolution. The quality of calls can also be measured.

Work Efficiency Metric – Considers the resources that have input times of time and money and the employee output. The HRIS will be able to calculate this and employees will be able to monitor their performance online.

Organizational Performance Metric – Calculations completed by looking at the revenue per employee. The HRIS system will be able to calculate the income each employee makes for the grocery store (Ulrich & Dulebohn, 2015). It also looks at factors such as human capital return on investment, the rate of absenteeism and the amount of overtime paid by each employee.

References

Chen, M. L. (2016). A Study of Critical Success Factors in HRIS Implementation: Analysis of Innovation Readiness.

Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Ulrich, D., & Dulebohn, J. H. (2015). Are we there yet? What's next for HR?. Human Resource Management Review, 25(2), 188-204.

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