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Human Resource Management Information System

Accountable for a human resource management information system and want some practical suggestions to reduce information management costs?

An effective human resource management information system must provide answers to questionsHuman Resource Management Information System such as:
  • What positions are available within the company?
  • What are the responsibilities for the position?
  • What skills and experience are required?
  • Who does the position report to?
  • What is the pay rate for the position?
  • What positions are filled?
What is position information?

A position represents a job within a company or division e.g.
  • Informatica developer;
  • Payroll supervisor;
  • Project manager; or
  • Sales representative.
Position information requirements include things like:
  • Position type;
  • Responsibilities;
  • Classification e.g. is it salary based, hourly paid, part time or full time;
  • Account and budget information e.g. what general ledger account should be charged for employee's salaries for this position;
  • Position reporting structures e.g. the report-to position;
  • The pay rates and pay steps established for the position type and the changes to these pay rates over time; and
  • Position effective date.
What human resource management information system employee data  is managed?

Companies may want to track things such as:
  • The various employees who filled a position over time e.g. an employee may fill a sales representative position in one sales division, be transferred to another sales division, and be replaced by a second employee;
  • The staffing firm that proposed the employee;
  • The union responsible for the position;
  • Benefits e.g. 
    • Benefits available for employee; and
    • Benefits paid to the employee;
  • Payroll information e.g. 
    • Requested deductions; 
    • Gross amount paid;
    • Amount deducted; and
    • Payment details such as direct bank deductions;
  • Address information; and
  • Contact information e.g. phone numbers and emergency contact information.
What are human resource management information system challenges?

Human resource management systems are frequently the system of record for employee information. However, they are usually implemented as stand-alone systems that do not communicate well with other systems, which need employee data e.g.
  • Order management;
  • Shipment management;
  • Billing management; and
  • Work order management.
If every application captures and stores employee data, then there is a lot of redundant processing. This increases the information management costs e.g.
  • There is cost associated with synchronizing data between systems;
  • There are additional data quality issues and costs as different systems may capture data using different rules; and
  • There are additional data movement costs as it is necessary to load data warehouses from multi sources and to sort out which data is the correct version and the most accurate version.
What is a better way to manage this information?

Maintaining human resource data in a variety of individual databases is less efficient than storing it in one database and having all applications access the data as needed. Alternate options to individual systems include:
  • Enterprise resource planning (ERP), many companies have invested in ERP systems, which handle human resource management and other business functions.
ERP should be evaluated to ensure that they meet business information management requirements.

Click here for more details on enterprise resource planning
  • Redesign, some companies have made investments in an enterprise data model and new management information systems to access common data. 
This option is not as costly as it might appear since much of the analysis work will be required even if an ERP option is selected. Companies should complete a cost benefit analysis to compare the cost of re-design with the cost of ERP.
  • Master data management (MDM) is becoming a common, but expensive, means of ensuring synchronization of key data among applications.
Click here for more details about master data management.

Companies should complete a cost benefit analysis to compare the cost of MDM with the cost of re-design or ERP.

Summary…

A human resource management information system provides data to many corporate management information systems and needs to be managed to avoid storing redundant data.

There are several options for ensuring efficient information management and these options should be explored to determine cost benefits on a case-by-case basis.



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