Chapter 3: Human Resource Management and Technology Flashcards
ICT
Information and communication technology
Automation reduces the need for ______________
Manual Labour
From 2003 to 2013, goods-producing industries experienced ____% percent job loss (with growth concentrated in Alberta), while services-producing industries experienced almost ____% job growth.
1.1%
18%
According to the Department of Finance Canada, ______,_________,________ has been the main source of job creation since 2008
high skilled, high wage, and private sector employment
What accounts for the shift?
First, more manufacturing jobs have moved to low-wage countries for global competition
Furthermore, higher productivity enables manufacturers to produce more with fewer workers
Canada spends about ____ percent of its GDP on ICT, which triples the world average.
6
ICT increases ________ and the ________ between various functional areas
workers’ flexibility
degree of integration
ICT decreases the degree of _______ in the organization, resulting in a _______ of organizational structures.
centralization
flattening
Is all use of technology in the workplace positive:?
No
Employees can receive interruptions every day from instant messages, texts, emails, phone, and Skype, which can be distracting for some employees, thereby reducing productivity and resulting in longer hours of work
A survey conducted by salary.com found that _____ percent of respondents admitted to wasting time at work daily
64
Respondents of the survey identified that they wasted time due to a lack of incentive, job dissatisfaction, or sheer boredom
work–life balance
given that technology has blurred the lines between personal and professional space. Employees may be expected to work remotely, respond to emails immediately outside of regular working hours, or have no clarity as to what regular working hours might be.
Human capital
refers to the knowledge, skills, and abilities of a firm’s workers.
Human resource managers now list “_____________” and “_______________” as the two skills most likely to increase in importance over the next few years
critical thinking/problem solving
information technology application
Where are the IT clusters in Canada today?
There are four major clusters (Greater Toronto Area, Montréal, Ottawa, Vancouver metropolitan regions) and some smaller ones (Hamilton, Calgary, Québec City, Edmonton, Saskatchewan, Regina, and Victoria)
When new employees are hired, they are required to provide information such as
first and last name, address, emergency contacts, banking information, beneficiary information for pension and benefits, marital status, and social insurance number on a variety of HR and employment-related forms.
HR by the Numbers: Technology-Enabled Delivery of HR
10%
of companies in a 32 countries, 1 025 companies surveyed identify that they use mobile HR applications
59%
of the 1 025 companies surveyed offer an HR portal to employees
106 000
additional workers were projected to be required in the Information and Communications Technology (ICT) sector from 2011 to 2016, according to the Information Technology Association of Canada
40%
of research and development (R&D) spending by Canada’s business sector is spent on activities associated with ICT
4%
forecasted an increase in ICT spending in Canada annually
75%
of the ICT workforce is male
HR technology
any technology that is used to attract, hire, retain and maintain talent, support workforce administration, and optimize workforce management
HRIS
human resource information systems
ETV
Employee Television Network
A strong strategic relationship between HR and technology will enable HR to achieve three key objectives:
1) strategic alignment with business objectives
2) business intelligence provides users with relevant data
3) effectiveness and efficiency changes how HR work is performed by reducing lead times and costs, and increasing service levels
A Mercer survey suggested that more than _____- percent of Chief Financial Officers continue to view HR as a cost centre that primarily executes administrative and compliance functions, and only 15 percent of CFO believed that HR was focused on strategic activities
60
How has technology changed / impacted the HR role?
- enabled HR to decrease its involvement in transactional (administrative) activities
- increase its focus on how to improve its delivery of strategic services.
HR plays an active role in the establishment and execution of overall strategy
through identifying, forecasting, and facilitating organizational responses to an ever-changing internal workforce and often volatile external pressures.
As a result of the technologically enabled environment, the traditional HR role has changed in three major ways:
(1) decreased transactional activities,
(2) increased client/customer focus,
(3) increased delivery of strategic services.
(1) decreased transactional activities,
Technology enables the reduction of the administrative burden, resulting in lowering basic transaction costs.
Selecting the appropriate technology and ensuring that it is deployed appropriately are very important activities to ensure the organization can meet its goals
What skills are most important for an HR specialist to develop?
1) Technical skills such as software and Internet literacy
2) Database skills
(2) increased client/customer focus,
In organizations, HR deals with many internal customers, including managers, employees, and all the other departments in the organization.
Customers expect HR to understand and respond to their requests quickly, reduce bureaucracy, and provide information that is meaningful, useful, and accurate
(3) increased delivery of strategic services.
HR fulfilled traditional roles, such as policy drafting, adaption, and implementation, as well as employees’ administrative needs
Today, HR professionals are increasingly involved in both formulating and implementing organizational strategy
HR and the IT Department: Developing Good Working Relationships
it is important for HR to exhibit knowledge of different types of HR systems, technology delivery methods, best practices of other organizations, and the types of technology enhancements that set these organizations apart
There are more than _____ human resources information systems being offered by over a hundred vendors in the United States and Canada
140
The costs of implementing a human resources information systems (HRIS) system range from _______ to ______
$1000 to $12 million
The information needs of a small company with ____ employees may only require the use of a simple Microsoft Word or Microsoft Excel file to keep basic employee data.
40
human resources information systems (HRIS) definition
(HRIS) integrated systems used to gather, store, and analyze information regarding an organization’s human resources
These systems consist of software applications that work in conjunction with an electronic database
data warehouse
A specialized type of database that is optimized for reporting and analysis and is the raw material for manager’s decision support
An HRIS is the composite of
databases, computer applications, hardware, and software necessary to collect, record, store, manage, deliver, manipulate, and present data regarding human resources
Its primary function is to provide information to its clients, such as employees, managers, payroll staff, and HR professionals.
systems
refers not just to the technical hardware and software.
From an HR perspective, “systems” is about the people, policies, procedures, and data required to manage the HR function.
The Relationship between HRM and HRIS
An HRIS must allow for the assimilation and integration of HR policies and procedures in addition to operating the computer hardware and software applications
Metrics, also known as workforce analytics
statistical measures of the impact of HRM practices on the performance of an organization’s human capital
An example of a metric
is the cost of the HR department per employee, calculated as the total cost of the HR department for a given period of time divided by the total number of employees employed during that time
Metrics can help managers
identify opportunities to improve performance and control costs
An example in the area of health and safety is obtaining HRIS data on
the number of accidents and injuries and also on the causes of these injuries
Information from the system can help organizations align more effectively with their strategic plans
For example, if an organization’s plan was to enter into a new market and it required a certain number and type of employees, the data from the system can provide the manager with a barometer as to whether the organization is moving toward the goal and the manager can leverage the information on the skills employees possess to help the organization effectively obtain the goal.
Benchmarking
Shows how your human resource management system’s performance compares to the competition
However, it may not reveal the extent to which your firm’s HR practices are supporting its strategic goals.
Strategy-based metrics
Metrics that specifically focus on measuring the activities that contribute to achieving a company’s strategic aims
Thus, for a hotel, the strategic HR metrics might include
100 percent employee testing, 80 percent guest returns, incentive pay as a percent of total salaries, and sales up 50 percent.
Data mining
the set of activities used to find new, hidden, or unexpected patterns in data
Data mining sifts through huge amounts of employee data to identify correlations that employers use to improve their employee selection and other practices
generic subsystems that comprise an HRIS:
administration, recruitment, time and attendance, training and development, pension administration, employment equity, performance evaluation, compensation and benefit administration, organization management, health and safety, labour relations, and payroll
HR Administration
The day-to-day details of maintaining and updating employee records take an enormous amount of time
One study found that ____ percent of HR employees’ time was devoted to transactional tasks, such as checking leave balances, maintaining address records, and monitoring employee benefits distributions
71
Recruitment and Applicant Tracking
Metrics here might include quality of new hires and which recruitment sources produce the most new hires
applicant tracking system (ATS)
Online systems that help employers attract, gather, screen, compile, and manage applicants
ATS vendors include:
Authoria, PeopleFilter, Wonderlic, eContinuum, and PeopleClick
analyzing recruitment effectiveness using ATS software involves two basic steps:
1) First, the employer (and vendor) decides how to measure the performance of new hires
2) Second, the applicant tracking system then enables the employer to track the recruitment sources that correlate with superior hires
Intelligent automated résumé screening
online applicant tracking software to identify likely candidates based on résumé key words or phrases (such as “chemical engineer”)
Time and Attendance
Things such as vacation entitlement can be found in an HRIS - which would require the hire date, leaves of absence (paid or not), termination date, and other relevant events
Other data that can be found with respect to time and attendance include information on absenteeism (the number of days an employee was absent), leaves of absence, whether these leaves were sabbatical or personal, parental leaves, and the dates the employee started and ended the leave.
Training and Development/Knowledge Management
Employers use Internet-based learning to deliver almost all the types of training
Learning portal
A section of an employer’s website that offers employees online access to training courses
e-learning companies
SkillSoft, Plateau Systems, and Employment Law Learning Technologies.
Learning management systems (LMS)
special software tools that support Internet training by helping employers identify training needs, and to schedule, deliver, assess, and manage the online training itself
Examples: Blackboard and WebCT
Pension Administration
For organizations that sponsor retirement plans for their employees, information necessary to produce annual pension statements will be recorded
-Includes date of plan entry, normal retirement date, employee elections regarding contributions, and the annual company contribution
Employment Equity Information
Federally regulated organizations are responsible for annual reporting of their employment equity information to the government.
For example, organizations that are subject to employment equity legislation are required to file an annual repor
Some HRIS software interfaces directly with the Workplace Equity Information Management System (WEIMS) provided by the _____
government
Performance Evaluation
Employers increasingly use computerized or Internet-based appraisal systems.
These enable managers to compile computerized notes on subordinates during the year, and then to merge these with ratings for the employee on several performance traits
Compensation and Benefits Administration
The HRIS includes information regarding the company’s compensation and benefits plans and its policies relating to these plans.
For example, information can include the pay increase associated with a promotion, data regarding pay grades and ranges for each position, the bonus structure, and which positions are entitled to a bonus
Organization Management
This subsystem identifies the organizational structure and stores job descriptions for each position in the structure
It may also have a field to enter the National Occupational Classification (NOC) codes
personnel inventory and development record form
compiles qualifications information on each employee
The information includes education, company-sponsored courses taken, career and development interests, languages, desired assignments, and skills.
Personnel replacement charts
Company records showing present performance and promotability of inside candidates for the most important positions
position replacement card
A card prepared for each position in a company to show possible replacement candidates and their qualifications
Health and Safety
Managers should routinely inspect for problems using safety audit/checklists as aids
Also, investigate all accidents and “near misses.”
Set up employee safety committees to evaluate safety adequacy, conduct and monitor safety audits, and suggest ways for improving safety.
Evidence-based safety and security-related metrics to audit include
injury and illness rates, workers’ compensation cost per employee, at-risk behaviour reduction, and safety training exercises
To ensure that the audit results in improvements
trend the audit data
track the corrective actions (through to completion)
Labour Relations
Information such as union membership, seniority lists, grievances, and resolutions can be found in this subsystem.
Payroll Interface
Payroll administration is one of the first functions most employers computerize or outsource, and for good reaso
HR audit
an analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR function
Human resource managers often collect data on matters such as employee turnover and safety via _________
human resource audits
The HR audit generally involves
reviewing the company’s human resource functions (recruiting, testing, training, etc.), usually using a checklist, as well as ensuring that the firm is adhering to regulations, laws, and company policies.
In conducting the HR audit, managers often ________ their results to those of comparable companies
benchmark
Typical areas audited include
1) roles and headcount (including job descriptions, and employees categorized by exempt or nonexempt and full- or part-time)
2) compliance with federal, provincial, and local employment-related legislation
3) recruitment and selection (including use of selection tools, background checks, etc.)
4) compensation (policies, incentives, survey procedures, etc.)
5) employee relations (union agreements, performance management, disciplinary procedures, employee recognition)
6) mandated benefits (Pension plans, unemployment insurance, workers’ compensation, etc.)
7) group benefits (insurance, time off, flexible benefits, etc.)
8) payroll (such as legal compliance)
9) documentation and record keeping; for example, whether files contain information including résumés and applications, offer letters, job descriptions, performance evaluations, benefit enrollment forms, payroll change notices, and documentation related to personnel actions such as employee handbook acknowledgments176
training and development (new employee orientation, workforce development, technical and safety, career planning, etc.)
10) employee communications (employee handbook, newsletter, and recognition programs)
11) termination and transition policies and practices.
Talent Management Analytics
Managers use special workforce (or talent) analytics software tools to convert their workforce data into actionable information
Analytics improves performance.
Employers are using talent analytics to answer six types of talent management questions:
1) Human capital facts
2) Analytical HR
3) Human capital investment analysis
4) Workforce forecasts
5) Talent value model
6) Talent supply chain
1) Human capital facts
For example, “What are the key indicators of my organization’s overall health?”
2) Analytical HR
For example, “Which units, departments, or individuals need attention?”
3) Human capital investment analysis
For example, “Which actions have the greatest impact on my business?”
4) Workforce forecasts
Dow Chemical uses a computerized model. This predicts future required headcount for each business unit based on predictions for things, such as sales trends.
5) Talent value model
For example, “Why do employees choose to stay with—or leave—my company?”
6) Talent supply chain
For example, “How should my workforce needs adapt to changes in the business environment?”
The choice of technology for an HRIS revolves around two basic questions:
(1) What is the desired amount of customization? and
(2) What type of system is required or preferred?
Regardless of the type of system selected, the key reasons for purchase of an HRIS are generally
cost savings, faster processing of information, and access to relevant information that will help the organization achieve its goals
An effective HRIS matches its________with the needs of the organization
technical capabilities
Smaller firms might use
very generic software applications such as Microsoft Excel and Access. These firms might only require payroll and benefits administration, time and attendance reporting, and an employee scheduling function.
Mid-size firms typically require
compliance tracking and reporting, health claims administration, payroll, and compensation and benefits administration
Managers may require information on performance appraisal, time and attendance, succession planning, skills testing, and employee scheduling.
Employees may use the system to aid in career development
In mid-sized systems, all HRIS functions typically flow through_______ system so data redundancies can be identified and eliminated
one single
Large organizations typically require
greater functionality than mid-sized firms. In addition to those functions mentioned above, these firms will require employee screening, résumé processing and tracking, and additional compliance and reporting requirements, such as employment equity
They may also require self-service options, which are Web-based applications that enable managers and employees to access and manage information directly without having to go through HR or the manager.
Enterprise-wide or enterprise resource planning (ERP) system
A system that supports enterprise-wide or cross-functional requirements rather than a single department within the organization
An ___________ typically includes several HR modules, such as a payroll module and a training and development module
enterprise-wide system
stand-alone system
A self-contained system that does not rely on other systems to operate
These systems are not enterprise-wide, but they do perform specific HR-related functions
Examples include Saba Software Inc. and Sage HRMS Inc
Typically, organizations follow a three-step process to choose an HRIS
(1) adoption phase,
(2) implementation phase, and
(3) integration (institutionalization) phase.
Phase 1: Adoption—Determining the Need
In this phase, organizations typically engage in a needs analysis to determine what type of system they will purchase. A needs analysis helps the organization decide on what the system should be capable of doing and what the technical specifications will be.
Phase 2: Implementation
In this phase, the company selects a project team that typically includes outside consultants who have knowledge and expertise on the technical side and expertise in change management to help the organization with the implementation. In addition to the outside consultants, there is usually a senior project manager who leads the team, subject matter experts from HR and payroll, and management from the various functional areas across the organization
Phase 3: Integration
The final step in implementing an HRIS system is to train the users on the system. The organization’s goal is for the stakeholders to use the system and reap the benefits identified through the needs analysis. However, many difficulties can arise with the implementation of a new system and, as with any change, people need to become comfortable with it.
A ________ helps the organization decide on what the system should be capable of doing and what the technical specifications will be.
needs analysis
There are several main areas to be considered in a needs analysis:
- company background,
- management considerations,
- technical considerations,
- HR considerations,
- and cost considerations
Company Background:
The industry, the size of the company, and the projected growth are important elements to consider. Typically, organizations require HR software after they reach 100 employees.
Management Considerations:
Normally, management would have some preconceived views regarding what they want the system to do and the type of software that might be required. They may want a complex system with enterprise-wide capabilities or a stand-alone system.
Technical Considerations:
Elements such as hardware, operating systems, networking, databases, and telecommunications all need to be considered. It is important to understand the kind of technology the company currently has and is able to support.
HR Considerations:
The HR department must consider its own needs. What type of daily requests and which employee transactions would make the most sense to automate? What types of forms, reports, or listings are maintained?
Cost Considerations:
Factored into the price that an organization can afford are considerations such as additional hardware purchases required, the number of additional staff needed during the implementation phase, training costs, and ongoing support costs.
management self-service (MSS)
Enables managers to access a range of information about themselves and the employees who report to them and to process HR-related paperwork that pertains to their staff
Privacy and Security
There are major privacy concerns when setting up an HRIS because of the sensitive personal nature of much of the data stored there, such as medical claims
Careful decisions must be made regarding who will have access to the computer hardware, software, and databases, and who will be able to modify the databases
Establishing _________ is a very important activity when implementing an HRIS
security profiles
A final, critical piece of HRIS security is making sure the system users clearly understand and adhere to the _______________________________________
company confidentiality policy and code of ethics
Electronic HR (e-HR)
A form of technology that enables HR professionals to integrate an organization’s HR strategies, processes and human capital to improve overall HR service delivery
HR portal
A single internet access point for customized and personalized HR services
Employee self-service (ESS)
systems enable employees to access and manage their personal information directly on a 24/7 basis without having to go through their HR departments or their managers.
Some common ESS options allow employees to
update personal information, such as address, phone number, emergency contact name and number; revise banking information; enroll in benefits programs; research benefit options; view payroll information, such as salary deductions; record vacation time and sick days; record travel expenses; access HR policies; participate in training delivered via the Web; and access company communications and newsletters issued by the HR department
A study by HR Focus found that HR generalist workloads were reduced by an average of____ percent after the introduction of an ESS
15
Management Self Service (MSS) systems
allow managers to access a range of information about themselves and the employees who report to them
MSS systems reduce the workload of HR generalists by more than ____ percent because they are not spending that time on planning annual compensation increases, viewing employee histories, initiating requests for positions, or posting jobs
21
Surveys of ESS and MSS system users indicate that although 80 percent of respondents agreed that Web-based self-service systems can lower HR operation costs, only _____ percent believe that their company is actually achieving this result.
Two-thirds of those surveyed agree that Web-based self-service systems can effectively support the transformation of the HR department into a more strategic partner by redirecting some of their responsibilities onto employees, but only ____ percent actually felt there was a change
40
37
e-HR is about redistributing administrative HR work to provide HR professionals with more time to focus on the _______ that add value to the bottom line
strategic activities
HR professionals must be technically savvy and be able to “_____________________”
“speak the language of business.”
According to Canada’s Department of Finance, which of the following has been the main source of job creation post-2008?
QUIZ QUESTION
High skilled, high wage, and private sector employment
What is the knowledge, education, training, skills, and expertise of a firm’s workers known as?
QUIZ QUESTION
Human capital
Technology that is used to attract, hire, retain, and maintain human resources as well as support HR administration and optimize HRM is called
QUIZ QUESTION
HR technology
According to the textbook, which of the following are the three key objectives that HR will be able to achieve due to the strong strategic relationship between HR and technology?
QUIZ QUESTION
Strategic alignment, business intelligence, effectiveness and efficiency
The impact of technology has fundamentally changed the role of HR. It has enabled HR to
QUIZ QUESTION
decrease its involvement in transactional activities
Statistical measures of the impact of HRM practices on the performance of an organization’s human capital are referred to in the textbook as
QUIZ QUESTION
workforce analytics
An HRIS is primarily a transaction processor, editor, and record keeper, maintaining employee, organizational, and HR-related data.
QUIZ QUESTION
True
Joseph’s company is undergoing fast growth. He would like to begin maintaining records of the skill level of candidates that have applied to the company for employment so that he can have a pool of talent to go to when needed. Which information will Joseph use to do this?
QUIZ QUESTION
Recruitment and applicant tracking
Stacey needs to ensure that her team has completed health and safety training. Which software tool will help her
QUIZ QUESTION
Learning management systems
The choice of technology revolves around two basic questions: (1) What is the desired amount of customization? and (2) What
QUIZ QUESTION
type of system is required/preferred?
During the adoption phase, a company has requested that vendors schedule demonstrations of their various human resources information systems that they have available. What is this request known as?
QUIZ QUESTION
Request for proposal
All staff of a company that has purchased an HRIS are undergoing systems training. Which phase is the company in?
QUIZ QUESTION
Integration
What is a single internet access point for customized and personalized HR services called?
QUIZ QUESTION
An HR Portal
Employee self-service (ESS) systems have fundamentally changed the way employees relate to their HR department because
QUIZ QUESTION
they are able to access and manage their personal information directly.
Investigating management considerations for purchasing an HRIS is conducted during the implementation stage of the selection process.
QUIZ QUESTION
False
There is a positive correlation between engagement and profitability
QUIZ QUESTION
True
