Human resource information systems michael j kavanagh pdf

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Human Resource Information Systems

Fourth Edition

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Human Resource Information Systems

Fourth Edition

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Human Resource Information Systems

Fourth Edition

Editors

Michael J. Kavanagh University at Albany, State University of New York

Richard D. Johnson University at Albany, State University of New York

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Human Resource Information Systems

Fourth Edition

Editors

Michael J. Kavanagh University at Albany, State University of New York

Richard D. Johnson University at Albany, State University of New York

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Copyright © 2018 by SAGE Publications, Inc.

All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher.

Printed in the United States of America

Library of Congress Cataloging-in-Publication Data

Names: Kavanagh, Michael J., editor. | Johnson, Richard David, editor.

Title: Human resource information systems : basics, applications, and future directions / editors Michael J. Kavanagh, State University of New York, Albany, Richard D. Johnson, State University of New York, Albany.

Description: Fourth edition. | Los Angeles : SAGE, [2018] | Includes bibliographical references and index.

Identifiers: LCCN 2017008269 | ISBN 9781506351452 (pbk. : alk. paper)

Subjects: LCSH: Personnel management—Information technology. | Personnel management—Data processing.

Classification: LCC HF5549.5.D37 H86 2018 | DDC 658.300285—dc23 LC record available at https://lccn.loc.gov/2017008269

This book is printed on acid-free paper.

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BRIEF CONTENTS

Preface xxii

Acknowledgments xxvii

PART I • HUMAN RESOURCE INFORMATION SYSTEMS (HRIS): THE BACKBONE OF MODERN HR 1

Chapter 1 • A Brief History and Overview of Technology in HR 2

Chapter 2 • Database Concepts and Applications in HRIS 24

Chapter 3 • Systems Considerations in the Design of an HRIS: Planning for Implementations 45

PART II • MANAGING HRIS IMPLEMENTATIONS 67

Chapter 4 • The Systems Development Life Cycle and HRIS Needs Analysis 68

Chapter 5 • System Design and Acquisition 91

Chapter 6 • Change Management and Implementation 118

Chapter 7 • Cost Justifying HRIS Investments 148

PART III • ELECTRONIC HUMAN RESOURCE MANAGEMENT (eHRM) 181

Chapter 8 • HR Administration and HRIS 182

Chapter 9 • Talent Management 224

Chapter 10 • Recruitment and Selection in an Internet Context 257

Chapter 11 • Training and Development: Issues and HRIS Applications 289

Chapter 12 • Performance Management, Compensation, Benefits, Payroll, and HRIS 325

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PART IV • ADVANCED HRIS APPLICATION AND FUTURE TRENDS 357

Chapter 13 • HRIS and International HRM 358

Chapter 14 • HR Metrics and Workforce Analytics 387

Chapter 15 • HRIS Privacy and Security 422

Chapter 16 • HRIS and Social Media 444

Chapter 17 • The Future of HRIS: Emerging Trends in HRM and IT 463

Glossary 480

References 497

Author Index 528

Subject Index 538

About the Editors 557

About the Contributors 558

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DETAILED CONTENTS

Preface xxii

Acknowledgments xxvii

PART I • HUMAN RESOURCE INFORMATION SYSTEMS (HRIS): THE BACKBONE OF MODERN HR 1

Chapter 1 • A Brief History and Overview of Technology in HR 2 By Richard D. Johnson and Michael J. Kavanagh

Editors’ Note 2

Chapter Objectives 3

HRIS in Action 3

Introduction 6

HR Activities 6

Technology and Human Resources 7 What Is an HRIS? 7 eHRM and HRIS 8 The Value and Risks of HRIS 9 Types of HRIS 11

Evolution of HRM and HRIS 12 Pre–World War II 12 Post–World War II (1945–1960) 13 Social Issues Era (1963–1980) 15 Cost-Effectiveness Era (1980–Early 1990s) 15 ERPs and Strategic HRM (1990–2010) 16 “The Cloud” and Mobile Technologies (2010–Present) 17

HRIS Within the Broader Organization and Environment 18

Themes of the Book 19

Summary 20

Key Terms 20

Discussion Questions 21

Case Study: Position Description and Specification for an HRIS Administrator 21

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Chapter 2 • Database Concepts and Applications in HRIS 24 By Janet H. Marler and Barry D. Floyd

Editors’ Note 24

Chapter Objectives 25

Introduction 25

Data, Information, and Knowledge 26

Database Management Systems 27 Early DBMSs 29 Relational DBMSs 30 Data Sharing Between Different Functions 31 Data Sharing Between Different Levels 31 Data Sharing Across Locations 32

Key Relational Database Terminology 33 Entities and Attributes 33 Tables 33 Relationships, Primary Keys, and Foreign Keys 34 Queries 35 Forms 36 Reports 37

MS Access—An Illustrative Personal Database 37 Designing an MS Access Database 38 HR Database Application Using MS Access 39 Other HR Databases 39

Data Integration: Database Warehouses, Business Intelligence, and Data Mining 41

Big Data and NOSQL Databases 42

Summary 43

Key Terms 44

Discussion Questions 44

Case Study: Building an Application Database 44

Chapter 3 • Systems Considerations in the Design of an HRIS: Planning for Implementations 45

By Michael D. Bedell and Michael L. Canniff

Editors’ Note 45

Chapter Objectives 46

HRIS in Action 46

Introduction 47

HRIS Customers/Users: Data Importance 48 Employees 49 Nonemployees 51 Important Data 52

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HRIS Architecture 52 HRIS Evolution 52 Client-Server (Two-Tier) Architecture 53 Three-Tier and N-Tier Architecture 53 Cloud Computing—Back to the Future?! 56 Mobile Access 57 Security Challenges 57

Best of Breed 58 Talent Management 59 Time and Attendance 59 Payroll 60 Benefits 60

Planning for System Implementation 61

Summary 62

Key Terms 63

Discussion Questions 63

Case Study: Vignette Revisited 63 — INDUSTRY BRIEF 65

PART II • MANAGING HRIS IMPLEMENTATIONS 67

Chapter 4 • The Systems Development Life Cycle and HRIS Needs Analysis 68

By Lisa M. Plantamura and Richard D. Johnson

Editors’ Note 68

Chapter Objectives 69

HRIS in Action 69

Introduction 70

The Systems Development Life Cycle 71

Analysis 73

Needs Analysis 74 1. Needs Analysis Planning 75 2. Observation 77 3. Exploration 80 4. Evaluation 84 5. Reporting 85

Summary 87

Key Terms 87

Discussion Questions 88

Case Study: “Planning the Needs of Other Organizations” 88 — INDUSTRY BRIEF 89

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Chapter 5 • System Design and Acquisition 91 By Richard D. Johnson and James H. Dulebohn

Editors’ Note 91

Chapter Objectives 92

HRIS in Action 92

Introduction 93

Design Considerations During the Systems Development Life Cycle 94 Logical Design 95 Two Ways to View an HRIS: Data Versus Process 96 Logical Process Modeling With Data Flow Diagrams 97 Creating and Using the DFD 99 Physical Design 100

Working With Vendors 104 Vendor Selection 108

Assessing System Feasibility 109 Technical Feasibility 109 Operational Feasibility 110 Legal and Political Feasibility 112 Economic Feasibility 112

Summary 113

Key Terms 113

Discussion Questions 114

Case Study: Vignette Continued 114 — INDUSTRY BRIEF 116

Chapter 6 • Change Management and Implementation 118 By Richard D. Johnson and Michael J. Kavanagh

Editors’ Note 118

Chapter Objectives 119

HRIS in Action 119

Introduction 120 Change Management 121 The Change Management Process: Science and Art 122

Models of the Change Process 123 Overview of Organizational Change 123

Selected Change Models 124 Lewin’s Change Model 124 Change Equation Formula 127 Nadler’s Congruence Model 127 Kotter’s Process of Leading Change 129 Important Reminders Regarding Change Models 129

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Why Do System Failures Occur? 131 Leadership 131 Planning 133 Communication 133 Training 135

HRIS Implementation 136 Data Migration 136 Software Testing 137 System Conversion 137 Documentation 138 Training 139 Resistance to Change 139 User Acceptance 141

Critical Success Factors in HRIS Implementation 142

Summary 144

Key Terms 144

Discussion Questions 144

Case Study: The Grant Corporation 145

Chapter 7 • Cost Justifying HRIS Investments 148 By Kevin D. Carlson and Michael J. Kavanagh

Editors’ Note 148

Chapter Objectives 149

HRIS in Action 149

Introduction 150 Justification Strategies for HRIS Investments 152 Evolution of HRIS Justification 152 Approaches to Investment Analyses Make a Difference: Some Guidelines 153

HRIS Cost-Benefit Analysis 156 Identifying Sources of Value for Benefits and Costs 157 Direct Benefits 157 Indirect Benefits 158

Implementation Costs 161

Estimating the Value of Indirect Benefits 163

Estimating Indirect Benefit Magnitude 163 Direct Estimation 164 Benchmarking 164 Internal Assessment 165

Mapping Indirect Benefits to Revenues and Costs 166

Methods for Estimating the Value of Indirect Benefits 167 Average Employee Contribution 168

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Estimating the Timing of Benefits and Costs 171 The Role of Variance in Estimates 171

Avoiding Common Problems 172

Packaging the Analysis for Decision Makers 174

Summary 175

Key Terms 175

Discussion Questions 176

Case Study: Justifying an HRIS Investment at Investment Associates 176 — INDUSTRY BRIEF 178

PART III • ELECTRONIC HUMAN RESOURCE MANAGEMENT (eHRM) 181

Chapter 8 • HR Administration and HRIS 182 By Linda C. Isenhour

Editors’ Note 182

Chapter Objectives 183

HRIS in Action 183

Introduction 184

Technical Support for Job Analysis 184 Approaches and Techniques 185 HRIS Applications 186

The HRIS Environment and Other Aspects of HR Administration 187

HRM Administration and Organizing Approaches 187 Service-Oriented Architecture and eXtensible Markup Language 188 Advantages of XML-Enhanced SOA 189 Theory and HR Administration 191 Self-Service Portals and HRIS 193 Shared-Service Centers and HRIS 196 Outsourcing and HRIS 199 Offshoring and HRIS 203 Summary of HR Administration Approaches 205

Legal Compliance and HR Administration 205

HR Administration and Equal Employment Opportunity 207 U.S. Civil Rights Act of 1964, Title VII, and the EEO-1 Report 207 EEO-1 Report (Standard Form 100) 208 EEO-1 and HRIS 209 Occupational Safety and Health Act Record Keeping 211 OSHA Form 300 (Log of Work-Related Injuries and Illnesses) and HRIS 212 Technology, HR Administration, and Mandated Governmental Reporting 213 Summary of Government-Mandated Reports and Privacy Requirements 215

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HR Strategic Goal Achievement and the Balanced Scorecard 215 HRM and the Balanced Scorecard 217 HR Scorecard and Balanced Scorecard Alignment 218

Summary 219

Key Terms 220

Discussion Questions 220

Case Study: Talent Management at CalleetaCO 221

Chapter 9 • Talent Management 224 By Kevin M. Johns and Michael J. Kavanagh

Editors’ Note 224

Chapter Objectives 225

HRIS in Action 225

Introduction 227 Defining Talent Management 227 Importance of Talent Management 228 The Talent Management Life Cycle 228 Attributes for Talent 230

Job Analysis and Human Resource Planning: Part of TM 232 Job Analysis 232 Human Resource Planning (HRP) 232 Phase 1: Setting HRP Objectives 233 Phase 2: Planning HR Programs 235 Phase 3: Evaluation and Control 236 Workforce Management/Human Resource Planning With an HRIS 236 Long- and Short-Term Strategic Importance of Talent Management 236

Talent Management and Corporate Strategy 237

Anticipating Change and Creating an Adaptable Workforce 239

Talent Management and Corporate Culture 240

Talent Management and Information Systems 242 The Link Between Talent Management and Human Resource Information Systems 242 Talent Management Software Packages 245

Trends in Talent Management Software 247 Recruiting Top Talent Using Social Networking Sites (SNSs) 248 Using Information Systems to Set Goals and Evaluate Performance 249 Using Analytics for Talent Management 249 Workforce Analytics and Talent Management 250 Measuring the Success of Talent Management 251

Summary 252

Key Terms 253

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Discussion Questions 254

Case Study: Vignette Case Continued 254 — INDUSTRY BRIEF 255

Chapter 10 • Recruitment and Selection in an Internet Context 257 By Kimberly M. Lukaszewski, David N. Dickter, and Brian D. Lyons

Editors’ Note 257

Chapter Objectives 258

HRIS in Action 258

Introduction 260

Recruitment and Technology 260 The Impact of Online Recruitment on Recruitment Objectives 261 Attributes of the Recruiting Website 269 Recruitment Strategies and Social Networking 272 The Relationship of e-Recruiting and HRIS 272

Online Recruitment Guidelines 273

Selection and Technology 274 What Are Selection Tests and Assessments, and Why Are They Used? 274 Why Is Understanding Assessment Important for HRIS? 276 Technology Issues in Selection 276 Applying HRIS to Selection and Assessment 281 Demonstrating the HRM’s Value With HRIS Selection Applications 282

Summary 285

Key Terms 285

Discussion Questions 286

Case Study: Recruitment and Selection in a Global Organization 286

Chapter 11 • Training and Development: Issues and HRIS Applications 289

By Ralf Burbach and Steven Charlier

Editors’ Note 289

Chapter Objectives 290

HRIS in Action 290

Introduction 292

Training and Development: Strategic Implications and Learning Organizations 293 Systems Model of Training and Development 296

Training Metrics and Cost-Benefit Analysis 310

HRIS Applications in Training 312 HRIS/Learning Applications: Learning Management Systems 316 HRIS T&D Applications: Implementation Issues 319

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Summary 321

Key Terms 321

Discussion Questions 322

Case Study: Training and Development at Meddevco 322 — INDUSTRY BRIEF 323

Chapter 12 • Performance Management, Compensation, Benefits, Payroll, and HRIS 325

By Charles H. Fay and Renato E. Nardoni

Editors’ Note 325

Chapter Objectives 326

HRIS in Action 326

Introduction 328 The Meaning of Work 328

Performance Management 330 Overview 330 Typical Data Inputs 334 Typical Reports 336 Data Outflows 336 Decision Support 336

Compensation 338 Overview 338 Typical Data Inputs 341 Typical Reports 342 Data Outflows 342 Decision Support 342

Benefits 344 Overview 344 Typical Data Inputs 346 Typical Reports 347 Data Outflows 347 Decision Support 348

Payroll 350 Overview 350 Typical Data Inputs 350 Typical Reports 352 Data Outflows 352 Decision Support 352

Summary 352

Key Terms 353

Discussion Questions 354

Case Study: Grandview Global Financial Services, Inc. 354

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PART IV • ADVANCED HRIS APPLICATIONS AND FUTURE TRENDS 357

Chapter 13 • HRIS and International HRM 358 By Michael J. Kavanagh, Miguel R. Olivas-Luján, and John W. Michel

Editors’ Note 358

Chapter Objectives 359

HRIS in Action 359

Introduction 360 Types of International Business Operations 362 Going Global 364 Differences in HRM in MNEs 367 Key HR Management Issues in MNEs 368

HR Programs in Global Organizations 370 International Staffing 370 Selecting Global Managers: Managing Expatriates 370 Training and Development of Expatriates 374 Performance Appraisal in MNEs 377 Managing International Compensation 378

HRIS Applications in IHRM 381 Introduction 381 Organizational Structure for Effectiveness 381 IHRM–HRIS Administrative Issues 382 HRIS Applications in MNEs 383

Summary 384

Key Terms 384

Discussion Questions 385

Case Study: Global Issues in a Multinational Company 385

Chapter 14 • HR Metrics and Workforce Analytics 387 By Kevin D. Carlson and Michael J. Kavanagh

Editors’ Note 387

Chapter Objectives 388

HRIS in Action 388

Introduction 389

A Brief History of HR Metrics and Analytics 390

Limitations of Historical Metrics 396

Contemporary HR Metrics and Workforce Analytics 397 Understanding Workforce Analytics Practices 397 HR Metrics 397 Workforce Analytics 397

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HR Metrics, Workforce Analytics, and Organizational Effectiveness 399 A Common and Troublesome View 400 Maximizing the Impact of Workforce Analytics Efforts 400 Triage in Evaluating Workforce Analysis Opportunities 401

So Where Are the Best Workforce Analytics Opportunities Likely to Be Found? 402 HR Process Efficiency 402 Operational Effectiveness 402 Strategic Realignment 403 Starting With the End in Mind 403

An Example Analysis: The Case of Staffing 405 Evaluating Recruitment Effectiveness (D3) 407 Evaluating the Effectiveness of Job Offer Decisions (D4) 408 Evaluating Job Acceptance Performance (D5) 410 Assessing the Financial Impact of Staffing Decisions: Utility Analysis 412

Building a Workforce Analytics Function 413 Getting Started 413 Understanding Why 413 Putting HR Metrics and Analytics Data in Context 414 Reporting What We Find 415 HR Dashboards 416

Useful Things to Remember About HR Metrics and Analytics 417 Don’t “Do Metrics” 417 Bigger Is Not Always Better 417 HR Metrics and Analytics Is a Journey—Not a Destination 417 Be Willing to Learn 418 Avoid the Temptation to Measure Everything Aggressively 418 Workforce Analytics and the Future 418

Summary 419

Key Terms 419

Discussion Questions 420

Case Study: Regional Hospital 420

Chapter 15 • HRIS Privacy and Security 422 By Humayun Zafar and Dianna L. Stone

Editors’ Note 422

Chapter Objectives 423

HRIS in Action 423

Introduction 423

Employee Privacy 425 Unauthorized Access to Information 426 Unauthorized Disclosure of Information 427

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Data Accuracy Problems 427 Stigmatization Problems 428 Use of Data in Social Network Websites 429 Lack of Privacy Protection Policies 429

Components of Information Security 430 Brief Evolution of Security Models 430 Security Threats 432

Information Policy and Management 436 Fair Information Management Policies 436 Effective Information Security Policies 438 Contingency Planning 440

Summary 441

Key Terms 441

Discussion Questions 442

Case Study: Practical Applications of an Information Privacy Plan 442

Chapter 16 • HRIS and Social Media 444 By Stephanie Black

Editors’ Note 444

Chapter Objectives 445

Introduction 445

Global Usage of Social Media 446

Social Media and HR Practices 448 Organizational Recruitment and Selection 448 Training and Development 451 Internal Communication and Engagement 452

Concerns Over Social Media 453

Corporate Social Media Policies 453 Recruitment and Selection 454 Validity of SMWs in Selection 455 Privacy Concerns 456 Diversity Concerns 457 Federal and State Guidelines 458

Research-Based Tips for the Use of Social Media in HR 459

Summary 461

Key Terms 461

Discussion Questions 462

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Chapter 17 • The Future of HRIS: Emerging Trends in HRM and IT 463 By Richard D. Johnson and Michael J. Kavanagh

Editors’ Note 463