E-HRM AND
KNOWLEDGE
MANAGEMENT
Chapter 14
Dr B.K. Majola
Learning Outcomes
• Distinguish between an HRIS, MIS, E-HRM and HR Metrics.
• Appreciate the value of a human resource information system (HRIS).
• Share surprising truths about adopting an HRIS.
• Recommend a systematic plan for selecting and implementing HRIS in an organisation.
• Discuss the modules of an integrated HRIS.
• Explain how HR metrics can be used for diagnostic and reporting purposes.
• Comment on employees’ privacy and the use of E-HRM.
C
Human Resource Information System
(HRIS)
◦ HRIS is a computerised system use to collect, store, analyze, retrieve, and print
information about employees, their jobs and employee services.
◦ It is an IT system used to store and distribute HR-related information such as:
◦ Employee details: Personal information, qualifications, competencies, career
history, leave information
◦ Job details: Grade, pay, hours, responsibilities.
◦ E-HRM is the use of the HRIS to analyse HR information and make decisions.
◦ HR metrics are measurements used to track HR trends.
Value/Benefits of HRIS
◦ Processes information faster
◦ Improves accuracy of information
◦ Supports strategic HRM
◦ Reduces admin burden
◦ Improves flexibility of information
◦ Improves services to employees
◦ Produces HR metrics
◦ Improves HR processes.
◦ Nature of an HRIS- part of the Management Information System (MIS)
Surprising Truths about HRIS
◦ It does not significantly improve productivity
◦ It will solve all HR problems
◦ It will eliminate jobs in HR department
◦ It is complex and expensive
◦ It takes a long time to implement
◦ It requires expensive and intensive training
◦ Customising it is very expensive
◦ It requires constant involvement from IT department
Steps in Selecting and Implementing an HRIS
◦ Conduct a self-assessment and internal needs analysis: Determine the gap between what the org. has & what it needs
◦ Rank the requirements for the HRIS: in terms of how it can assist the org. to realise its mission, the costs, accuracy and modules.
◦ Identify potential solutions: Search for reputable software that can meet the organisational needs.
◦ Analyse and screen vendors: Meet with the vendors in order to assess the extent to which their software can meet your needs.
◦ Arrange for software demonstrations: Give the vendors typical org. & allow them to demonstrate how their software can address your
needs and to provide sample reports.
◦ Score the solutions: Use spreadsheet to score each vendor in terms of how they can address your prioritised needs.
◦ Make a decision and prepare a business case: Evaluate vendors proposals and consider factors such as costs, licence agreement,
training requirement before submitting to the management.
◦ Implement the system: Testing and activating the system, training relevant users, capture relevant data.
◦ Evaluate the effectiveness and effective use of the system: Check the value of reports, system’s response time, its integration with
payroll system.
Modules of integrated HRIS
• Include various HR activities:
Employee data maintenance,
Compensation Planning and Management,
Organisational Structure,
Payroll processing,
HR planning,
Recruitment and selection,
Equity management ,
Training and development,
Succession planning,
Performance management,
Time and attendance,
Employee relations,
Health and Safety,
Self-help desk.
Self-help desk
◦ The module enables employees to access or update information themselves
and allow HR to focus on other strategic issues.
◦ It can be used for:
◦ Personal information update
◦ Posting of organisational bulletin
◦ Accessing organisational policies
◦ Accessing financial benefits information
◦ Posting of new forms
◦ Posting Suggestions
◦ Socialisation
HRIS as Diagnostic and Reporting Tool
• Information from HRIS can be used as a diagnostic tool to achieve
organisational goals.
• HRIS assists the HR department to make calculative decisions to solve problems and
initiate change.
• It is also a tool to demonstrate the return on investment (ROI) of the HR department.
• Information can be used to manage:
o Equity status of organisation
o Nature and levels of absenteeism
o Labour turnover and retention
o Employee job satisfaction
HR Metrics in Staff Acquisition
• HR planning
previous levels of supply and demand are used to estimate future ones
• Recruitment
Comparison of different methods used to identify the most effective ones.
Cost of recruitment can be determined by dividing overall recruitment costs by number of people
recruited.
Average time taken to fill a position can be determined by dividing total days taken to fill position by
number of people hired.
Use of psychometrics as a measuring tool to provide indication of candidates’ abilities and aptitude
require is quantitative (HR metrics).
HR Metrics in Employment Equity
• HRIS assists organisations to:
Compile profile of workforce.
Compile report on skills development.
Analyse employment practices and policies.
Compile Equity plan.
Benchmark itself against others.
HR Metrics in Absenteeism Management
• Absence can be categorised into: sick, authorised and unexcused absence
• HRIS assists organisations to:
Record absenteeism
Determine the Gross Absence Rate (GAR) and Absence Frequency (AFR) for different
groups and different categories of absence
Determine the cost of absenteeism
Analyse the results
Based interventions on the results
Monitor implementation and results of interventions
Calculating Absenteeism
• The two HR metrics used to measure absenteeism are:
GAR: indicates workdays lost
AFR: indicates how disruptive absenteeism is
• GAR = Total number of days lost × 100
Average no. of employees x total workdays over period
• AFR = No of absence incidents over period
Average no. of employees employed over period
• Cost of Absenteeism include:
Direct Cost: the absent employee’s salary/wage and medical benefits paid
when absent
Indirect Cost: time spent to cover for the absent employees as well as loss of
production
Analysing Absenteeism
• GAR indicates number of workdays lost
• AFR indicates how disruptive absenteeism is
• Consider overall GAR of organisation
• Compare the GAR and AFR of various departments,
sections and groups
• Analyse trends to identify the problem
HR Metrics in Labour Turnover & Retention
• Labour turnover refers to permanent withdrawal from the organisation.
• It can be controllable or uncontrollable.
• Controllable labour turnover includes voluntary resignation and dismissal.
• Uncontrollable labour turnover includes death, permanent illness, retirement
or retrenchment.
• HR metrics on labour turnover focusses only on controllable labour turnover.
Calculating Labour Turnover
• LTO = Voluntary Resignation + Dismissal
Average no. of employees for period
• MLOS = Median length of service
• %V = Voluntary resignation x 100
Voluntary + Dismissal
• The high %V indicates employees who left the organisation
voluntary
• The low %V indicates employees who were dismissed by the
On-line Surveys
◦ HRIS is useful in conducting on-line surveys.
◦ On-line surveys on Organisational Climate, Employee Engagement, Job
Satisfaction, Organisational Citizenship Behaviour and value acculturation can
be conducted via organisational intranet.
◦ Information can be statistically analysed.
◦ HRIS provides context to interpret results, e.g. comparisons and benchmarking.
◦ Results can be communicated by using Pie charts, graphs, tables.
Using an HR Dashboard to Drive Strategy
◦ HR dashboard is a visual and easy-to-understand graphical display of important HR information.
◦ HRIS assists to create HR dashboard.
◦ A dashboard displays crucial information.
◦ It shows trends and changes.
◦ It performs drill-down function (provides summary-detail links).
Characteristics of a ‘Good’ Dashboard
◦Specific to the end user.
◦Easy to understand.
◦Limited in colour.
◦Two dimensional.
◦Information provided in real time.
HRIS and Privacy Issues
◦ Control accessibility through the use of security codes and
passwords.
◦ Consider secured data collection method.
◦ Inform employees.
◦ Allow employees to inspect information.
◦ Separate sensitive information.
◦ Limit the use of personal information.
◦ Get consent to use personal information.
Preparation for the next session
Read through Chapter 6 Nel
et al 10th Ed (2017). Human
Resources Management
QUESTIONS/COMME
NTS
THANK YOU
