CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF

INFORMATION TECHNOLOGY

• HUMAN RESOURCE
INFORMATION SYSTEMS
– concerned with
• the individuals who constitute the organization.
– From the standpoint of the organization, the function is responsible
• for the acquisition and effective use of the individual,
– the well-being,
– growth, and
– development of each worker.
– To achieve these ends, human resource management departments
perform a variety of activities.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• The major activities of the personnel/human

resources function in an organization include
– Recruiting employees,
– Evaluating applicants and employees,
– Selecting, placing, promoting, terminating, and transferring employees,
– Analyzing and designing jobs,
– Training and development reports,
– Producing required governmental reports,
– Managing employee wage and benefit plans,
– Planning short-and long-term staffing needs,
– To perform these activities, managers rely on a number of operational,
tactical, and strategic information systems
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• OPERATIONAL INFORMATION SYSTEMS

– Operational human resource information systems provide
the manager with data to support the routine, repetitive
personnel decisions that occur regularly.
– These include information systems pertaining
• to the organization's positions and employees, and
• about governmental regulations. Such as:-
– PAYROLL INFORMATION SYSTEMS
– POSITION INFORMATION SYSTEMS
– EMPLOYEE INFORMATION SYSTEMS
– EMPLOYEE EVALUATION INFORMATION SYSTEMS
– APPLICANT SELECTION AND PLACEMENT SYSTEMS
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• PAYROLL INFORMATION SYSTEMS

– The financial information system, through its
payroll subsystems, collects and reports data
• pertaining to human resources that is largely operational
in nature.
– Payroll files often contain a great deal of
information about employees
• -- including information about employees’ pay rates,
wage classifications, and seniority
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• EMPLOYEE INFORMATION SYSTEMS

– The personnel department must maintain information on
each of the organization's employees for a variety of
reporting purposes.
• One part of this information system is a personnel file, which
usually contains personal and organization-related information
such as name, address, sex, marital status, citizenship, years of
service or seniority data, education and training, previous
experience, employment history within the organization, salary
rate, salary or wage grade, and retirement plans.
• Another part of an employee information system is an employee
skills inventory. The skills inventory contains information about
every employee's work experience, work preferences, test scores,
interests, and special skills or proficiencies.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• EMPLOYEE EVALUATION INFORMATION SYSTEMS

– Many organizations review the work of employees on a
regular basis to make decisions regarding merit pay, pay
increases, transfer, or promotion.
– These reviews provided by the employee evaluation
information systems are often called
• performance appraisals.
– The data for performance appraisals are frequently
collected by administering employee appraisals forms to
each employee's immediate superior.
– The forms may also be given to peers, the employees
themselves, and even customers or clients.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• POSITION INFORMATION SYSTEMS

– A position consists of tasks performed by one worker.
– The purpose of a position information system is to
• identify each position in the organization,
• the job category in which the position is classified, and
• the employee currently assigned to the position.
– Reference to the position information system allows a
personnel manager to identify the details about unfilled
positions.
– Position information systems also allow the personnel
manager to identify human resource problems.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• APPLICANT SELECTION AND PLACEMENT SYSTEMS

– After jobs and the employee requirements for those jobs have identified and
after a suitable pool of job candidates has been recruited,
• the candidates must be screened,
• evaluated,
• selected and placed in the positions that are open.
– To ensure compliance with federal, state, and local employment laws, these
procedures must be fully documented and carried out in a structured manner.
– Thus, data pertaining to
• interviews,
• examinations, and
• placement decisions
– should be collected and kept according to the requirements of the various laws
and regulations of acts.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• TACTICAL HUMAN RESOURCE INFORMATION

SYSTEMS
– Tactical information systems provide managers with
support for decisions that emphasize
• the allocation of resources.
– Within the human resource management area, these
decisions include
• JOB ANALYSIS AND DESIGN INFORMATION SYSTEMS
• RECRUITING INFORMATION SYSTEMS
• COMPENSATION AND BENEFITS INFORMATION SYSTEMS
• EMPLOYEE TRAINING AND DEVELOPMENT SYSTEMS
• LABOR NEGOTIATIONS INFORMATION SYSTEMS
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• JOB ANALYSIS AND DESIGN INFORMATION SYSTEMS

– The information inputs to the job analysis and design
information system include data obtained from
• interviews of supervisors and workers and affirmative action
guidelines.
– Inputs also include information from sources external to the
firm,
• such as labor unions, competitors, and governmental agencies.
– The outputs of the job analysis information system are
• job descriptions and job specifications.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• RECRUITING INFORMATION SYSTEMS

– To develop recruitment plan and monitor its success, a recruiting
information system is necessary to collect and process the many
different types of information needed to construct the plan.
– These include
• a list of unfilled positions;
• the duties and requirements of these positions;
• lists of planned employee retirements,
• transfers or terminations;
• information about the skills and preferences of current employees; and
• summaries of employee appraisals.
– The sources of recruitment, affirmative action plans, information about
the success of recent recruitment activities must also be included in
the information systems.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• COMPENSATION AND BENEFITS INFORMATION SYSTEMS

– Fringe benefit is anything in addition to the basic

salary and over-time pay to an employee.
– Information on the benefits and compensation
packages will help managers to make informed
decisions.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• EMPLOYEE TRAINING AND DEVELOPMENT SYSTEMS

– it is important to keep information about
• current and potential instructors;
• current and potential students;
• the content and scheduling of courses,
• seminars, and workshops; and
• the success of past efforts, as measured by tests, student ratings,
and supervisor follow-ups.
– This information system should permit tactical decisions
regarding the nature of training and development
programs.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• LABOR NEGOTIATIONS INFORMATION SYSTEMS

– Negotiating with the union requires information gathered from many of the
human resource information systems already discussed.
– In addition, negotiators need information
• from the financial accounting system and from external sources including
– competitor wage agreements and
– appropriate economic data for the industry,
– employee group, and
– geographical region.
– The personnel team completing the negotiating needs to be able to obtain
numerous ad hoc reports that analyze
• the organization's and union's positions within the framework of the industry and
• current economic situation.
– It is also important that the negotiating team be able to receive ad hoc reports
on a very timely basis,
• since additional questions and tactics will occur to the team while the negotiations
are underway.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• STRATEGIC HUMAN RESOURCE INFORMATION

SYSTEMS
– Human resource planning is conducted to ensure that the
organization has
• the right kinds and
• the right numbers of people at
• the right places at
• the right time to achieve its objectives.
– There are two types of human resource planning that are
strategic in nature.
– These are
• MANPOWER PLANNING
• PROGRAM PLANNING
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• MANPOWER PLANNING
– Organizations that are involved in long-term
strategic planning, such as those planning
• to expand into new market areas, or
• to construct new factories or offices in new locations, or
• to add new products,
– will need information about
• the quantity and
• quality of the work force that is available to achieve their
goal.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• PROGRAM PLANNING
– A second strategic planning function is to develop the policies,
procedures, and activities that will achieve the human resource needs
spelled out in the manpower plan.
– Two key activities in program planning are
• job analysis and design and
• recruiting.
– Job analysis and design is essential to describe the work force
required by the organization.
– Recruiting plans must be developed to acquire the right kinds of
workers in the right amounts to fill the jobs described.
– Where there are insufficient workers with the right skills,
• training programs may have to be developed, or
• the jobs may have to be redefined to fit the skills of the available work
force.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• HUMAN RESOURCES INFORMATION SYSTEMS

SOFTWARE
– In addition to specialized software developed specifically to address
human resource needs, general-use software is also available for
managers.
• General-Use Software:
– Database Management Software.
– On-Line Databases.
– Spreadsheet Software.
– Statistical Software.
– Other Software.
• Specialized software:
– Comprehensive Human Resource Information Systems Software.
– Limited-Function Human Resource Information Software.
– Training Software.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• General-Use Software:
– These software types include
• database management software,
• on-line databases,
• spreadsheets, and
• statistical software.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• Database Management Software.

– Database management software is probably the most critical and
useful software for human resource management.
– A database management system can be used to construct a variety of
files, such as
• job description file,
• job specification files,
• position files,
• employee skills inventory files, and
• applicant files.
– Such files, constructed within a database management system, allow
you to ask innumerable “what if” questions for tactical and strategic
planning purposes as well as to complete operational tasks swiftly.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• On-Line Databases.
– On-line databases provide information to human
resource planners about
• economic trends,
• labor statistics,
• competitive wage rates,
• work force skills and experience and
• governmental regulations.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• Spreadsheet Software.
– departmental budgets and special human
resource project budgets can be developed using
this software.
– it can also be used to evaluate data on various
human resource problems.
 CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY
• Statistical Software.
– Human resource managers can use statistical analysis for a variety of
purposes.
• analysts of the employee composition in divisions and departments can
– detect low minority participation or high proportions of older workers.
• These analyses may be used
– to plan minority recruiting campaigns or
– to identify worker skills that will soon be in short supply because of retirements.
• Correlating job groups with accidents or illnesses
– can identify supervisors or employees who are not emphasizing safety enough,
– employees in dangerous jobs, or working conditions that need improvement.
• Costs of employee health insurance and other benefits can be extrapolated
for the next five years
– to forecast future wage and salary expenditure for organization.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• Other Software.
– The productivity of many operators today is measured
• by the very devices they use.
– a word processing clerk may find that the word processor
• counts and keeps the number of lines typed per day.
– These data are then
• collected from all word processing clerks,
• averaged, and
• compared with standards.
– Order entry clerks are likely to find that the same computer
they use to enter orders
• collects and maintains the number of orders processed each day.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• Specialized Software:
– Software specifically designed for the human
resource management function can be divided into
two basic categories:
• comprehensive human resource information systems
software and
• limited function packages that support one or a few
human resource activities.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• Comprehensive Human Resource Information

Systems Software.
– Position files, employee files, skills inventory files, job analysis and
design files, affirmative action files are constructed in a coordinated
manner using database management systems software so that
application programs can produce reports from any or all of the files.
– Thus, the human management director can produce reports listing
likely internal candidates for open positions by running an application
program that queries position files, job requirements files, and skills
inventory files.
– If the human resource files are part of the organization’s total
database, they can be shared with other departments, such as payroll
and cost accounting.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• Limited-Function Human Resource Information

Software.
– Numerous commercial software packages are sold for
use on mainframes, minicomputers, and microcomputers
that are designed to
• handle one or a small number of human resource functions.
– Microcomputer versions of theses single-function software
packages
• are relatively inexpensive and
• easy to operate and allow the human resource manager to
• automate a function quickly and easily.
CHAPTER FOUR: COMMON BUSINESS APPLICATIONS OF
INFORMATION TECHNOLOGY

• Training Software.
– include
• management training software,
• sales training software,
• microcomputer training software,
• word processing training software, and
• a variety of other software.
– Computer-based training aids often simplify the trainer’s job and
• allow the trainer to individualize instruction more easily than in traditional,
group-based training classes.
– Computer-based training also allows employees
• to work at home or to review previous lessons without special help from
human resource staff.
– Multimedia hardware and software is also used in training programs.