HUMAN RESOURCES MANAGEMENT SUPERVISION

LEVEL- IV

Module Title: - Implement HR Management Information Systems

LG Code: - LSA HRM4 04 1221
LEARNING OUTCOMES: -
Lo_1 Use and Input knowledge management system
Lo_2 Human resources information requirements
Lo_3 Human resources within information management system

Lo_4 Implement human resources information system

Lo_5 Evaluate performance of human resources information system

1 ALLIANCE COLLEG
Lo_1 Use and Input knowledge management system
This learning guide is developed to provide you the necessary information regarding
the following content coverage and topics

1.1 Access and use knowledge management system

Access knowledge management system to assist with specific task Knowledge
management is the systematic process of finding, selecting, organizing and presenting
information in a way that improves an employee’s comprehension in their specific area
of work. Knowledge is valuable.

Your responsibilities as an employee are to: Learn as much as you can about the
company you work for, and the products and services the company produces Learn new
skills and business knowledge. Through a working life you become a knowledgeable
and experienced worker who is able to take initiative and solve problems .Use this
information to grow and develop and be able to move to higher positions within the
organization, or obtain a more senior position in another organization.

1.2 Administer system in line with procedures

A planned knowledge management system in any organization includes:
 policies and procedure
 protocols
 information systems
 strategies
 methods
 activities and techniques
 staff professional development (training, coaching and mentoring)
 equipment user manuals and operating instructions
 privacy and confidentiality policies
 quality control system
 Personal work organization.
1.3 Input knowledge management system
Gather analyses and prepare inputs for contribution to the system in line use procedure
Why does an organization need to manage knowledge? Information and knowledge are
corporate assets. Managing knowledge can achieve substantial savings, significant
improvements in human performance, and competitive advantage.
For a new situation:
2 ALLIANCE COLLEG
  An employee can search a knowledge base to see if this situation has been
encountered before and can then produce an answer from the organization’s
knowledge base or from their own knowledge base.
 An employee can recall several related circumstances, and find an answer or
solution to the problem by combining pieces of knowledge from both knowledge
bases, thus creating new knowledge in the process.
 An employee can generate new knowledge by creating action and noting the
response.
1.4 Inputs are checked for clarity, accuracy and relevance
Knowledge stored by all employees should be checked for clarity, accuracy,
currency and relevance through the following methods:
 reference to experts with knowledge of computer operation, software and
other electronic machines
 reference to experts in the fields of accounting, engineering and
administration
 group discussions and communication
 employee and customer feedback
 workgroup cooperation (this is called synergy)
research provided by others
 information received from other organizations
 internal and external written material
 References to previous file records.
1.5 Inputs
Documentation is recorded in the policies and procedures manual of the company, so
that all employees can improve their work practices.
1.6 Requirements of the system
Suggested changes are made in meetings, discussions and conversations with other
personnel and customers. This knowledge is then used by management to improve
work practices, products and services to customers, which will increase productivity
and profits for the organization.
Relevant personnel
 Managers, leaders, supervisors and coordinators
 Owners
 Staff, team members and colleague

3 ALLIANCE COLLEG
Lo_2 Human resources information requirements
2.1 Information requirements

 Career development

 Employee relations and organizational relations

 Employee support

 Human resources development

 Legislative requirements

 Organizational development

 Performance management

 Recruitment, selection, promotion and induction

 Termination of employees

 Workforce planning

Use interpersonal skills to access relevant information

Interpersonal skills include:

 active and effective listening and observation

 active and effective questioning

 seeking feedback from group members to confirm understanding

 summarizing and paraphrasing internal and external messages

 using appropriate body language/non-verbal communication

 using consultation methods and techniques

 using organizational policies and procedures manual

 Networking with internal and external customers.

2.2 Communication

4 ALLIANCE COLLEG
Communication is the activity or process of giving information to other people or to
other living things. Communications are the systems and processes that are used to
communicate or broadcast information ,by means of electricity, radio wawes, television,
computer and satellites. The elements of a communication process are the following:
sender (source); message; channel; receiver (learner or other living things) and;
feedback. When people interact with each other, they communicate or work together.

The communication process refers to a series of actions or steps taken in order to

successfully communicate. It involves several components such as the sender of the
communication, the actual message being sent, the encoding of the message, the
receiver and the decoding of the message.

There are also various channels of communication to consider within the

communication process. This refers to the way a message is sent. This can be through
various mediums such as voice, audio, video, writing email, fax or body language.

The overall goal of the communication process is to present an individual or party with
information and have them understand it. The sender must choose the most appropriate
medium in order for the communication process to have worked successfully.

2.3 Type of communication process

The communication process has several components that enable the transmission of a
message. Here are the various parts:

Sender: This is the person that is delivering a message to a recipient.

Message: This refers to the information that the sender is relaying to the receiver.

Channel of communication: This is the transmission or method of delivering the

message.

Decoding: This is the interpretation of the message. Decoding is performed by the

receiver.

Receiver: The receiver is the person who is getting or receiving the message

Feedback: In some instances, the receiver might have feedback ora response for the
sender. This starts an interaction.

5 ALLIANCE COLLEG
The Components of Effective Workplace Communication How does the
communication process work In order to successfully communicate, it's important to
understand how the process works. Here are the seven steps in the communication
process:

Project communication is understood as an exchange of information in order to build

coherence between project stakeholders The term ―project communication‖ stands for
all aspects of communication in a project: both external and internal communication,
written and interpersonal, scheduled and non-scheduled communication

According to the .Project Communications Management processes are:

 Plan Communications Management – elaborate a plan of project information flow

according to the stakeholders’ needs, considering organizational assets;

 Manage Communications – generate, collect, allocate, transfer, store and retrieve

project information based on the plan;

 Control Communications – monitor and control project communications to ensure

their effectiveness and efficiency Managerial Functions.

The basic managerial functions include planning, organizing, directing and controlling
different human resource related activities. All these functions are to be coordinated
effectively through appropriate human resource information system followed in an
organization.

Operative Functions
The following operative functions are entrusted to the Human Resource Department to
perform various works efficiently by taking proper decisions on the basis of Human
Resource Information System.
 Staffing & Employment
 Training & Development
 Wage & Salary Administration
 Work Culture & Environment
 Security & Welfare Activities
 Employer & Employee Relation
 Records & Statistics
 Promotion & Transfer

6 ALLIANCE COLLEG
  Integration & Separation
 Retirement & Retrenchment Legal Compliance & Government Reporting

Project communications management overview The scope of this paper is concentrated

on the first process Communications Management Planning. Planning project
communications is a process of development the methodology for project
communications and creation of Communications management plan.

2.4 Draft information systems management plan

Proposed system objectives, methods of management, timeframes and other criteria

Specification of system requirements for the purposes of selecting appropriate

systems to manage the information

Resource management: strategies and techniques The nature of resource

management in library and information services Resource management is the
systematic process used by managers to underpin and expedite the business goals
chosen for the organization.

The management of information resources and the supply of information services

are a universal formulation of business goals for library and information services
broadly defined. From these two statements a useful and general description of
likely resource requirements can be developed; this then can be applied with a
particular set of business or sectorial circumstances in mind

The ultimate achievement of the goals chosen is the measure of the success or
otherwise of the organization's resource management. The handling of all matters
related to finance and its monetary measure form the financial management
component of resource management.

There are three distinct but related components that categorize resources:
information resources, primary physical resources and resources for production.
Information resources Information resources implies the primary sources of
information used by the user community and deliverable in some form of service

or product. The primary sources could be data, archives, documents Budget

Parameters

7 ALLIANCE COLLEG
2.5 Budget Parameters

Budget Parameters are used to specify the option values that are displayed when
building budget sheets for programs. Budget parameters can be dynamic (meaning the
value is determined each time the action is performed) or static (meaning the value is
always the same). Before creating a budget parameter, it is important for you to know if
the value of an item changes due to circumstances (i.e. dynamic) or if it remains the
same value regardless of its use (i.e. static).

8 ALLIANCE COLLEG
Lo_3 Human resources within information management system

3.1 Meaning HRIS Human Resources Information System

It is a system that lets you keep track of all your employees and information about them.
It is usually done in a database or, more often, in a series of inter-related databases.

Advantages of HRIS

An HRIS can reduce the amount of paperwork and manual record keeping

It retrieves information quickly and accurately

It allows quick analysis

HR issues Most HRIS Contain: Personal history - name, date of birth, sex Work
history - salary, first day worked, employment status, positions in the
organization, appraisal data and hopefully, pre-organizational information

Training and development completed, both internally and externally

Career plans including mobility

Skills inventory - skills, education, competencies...look for transferable skills

3.2 Human Resource Information System

It refers to the system of collecting, recording, classifying, presenting, processing,

storing and disseminating various information, required for efficient and effective
management of human resources in an organization. In order to manage diverse,
expensive, and human resource information in complex environment, human resource
department of various organizations have increasingly used computer based human
resource information system. Human Resource Information System ( HRIS ) supports
strategic and operational use of the human resource.

HRIS is required for the following purposes.

(1) Planning human resource requirements of organization

(2) Employee training & development to increase efficiency
(3) Formulation of policies and programmers relating to human resource

9 ALLIANCE COLLEG
 Cost benefit analysis
Calculation to determine whether the results/outcomes of a particular course of action
are sufficient to justify the costs and risks in taking that action

3.4. Risk analysis

Determination of the likelihood of a negative event preventing the organization meeting
its objectives and the likely consequences of such an event on organizational
performance

Risk is a potential variation in outcome. When risk is present, outcome cannot be

forecasted with certainty. As a result risk gives rise to uncertainty. Risk is an object
concept, meaning it is measurable. Exposure to risk is created whenever an act or
circumstances gives rise to possible gain or loss that cannot be predicted with certainty.

3.5. Sources of Risk

The following are some of the possible sources of risk:
Physical environment: Physical environment is fundamental sources of risk.
Earthquake, droughts, or excessive rainfall can lead to loss. The ability to fully
understand our environment and the effects we have on it-as –well as those it has on us-is
a central aspect of this source of risk.

Social environment: Changing the traditions and values, human behavior, social
structures and institution are a second source of risk. In fact, changing cultural values also
create opportunities, as when new attitudes regarding women in the workforce open a
door to a significantly talent pool.

Political environment: Within a single country, the political environment can be an

important source of risk. A new president or prime minister can move the nation in to a
policy direction that might have dramatic effects on particular organizations.

Legal environment: A great deal of uncertainty and a risk arises from a legal system of
a country. Not only are standard of conduct uphold a punishments enforced, but as the
system itself evolves new standards arises that may not be fully anticipated.

Operational environment: Process and procedures of an organization generate risk and

uncertainty. A formal procedure far promoting, hiring, or firing employee may generate a
legal liability. The manufacturing process may put employees at risk of physical harm.
10 ALLIANCE COLLEG
The operational environment also provides gains, as it is the ultimate sources or the goods
and services by which an organization succeeds or fails.

Economic environment: Although economic often flows directly from the political
clam, the dramatic expansion of the global marketplace has created an environment that is
greater than may single government

Risk management: is the identification, assessment, and prioritization of risks defined

in as the effect of uncertainty on objectives) followed by coordinated and economical
application of resources to minimize, monitor, and control the probability and/or impact
of unfortunate events or to maximize the realization of opportunities. Risk
management’s objective is to assure uncertainty does not deflect the endeavor from the
business goals.

11 ALLIANCE COLLEG
Lo_4 Implement human resources information system

4.1 Relevant groups and individuals

All those who have a role in the implementation of policies, procedures or decisions
and/or are affected by their implementation

4.2 The Human Resource Process

It includes maintenance of personnel records, annual review and revision of employee

handbook, audit of HR strategies, policies and procedures, implementation of
employment/termination procedures, employee development program, performance
management. Process, on-site support, employee retention programs, employee morale
building, and compensation plan review.

4.3 Human resource management functions

Human Resource management is seen as a system. The system entails the performing of
six functional areas associated with effective human resource management. These are
Human resource planning, requirement and selection, human resource development,
compensation and benefits, safety and health, employee and labor relations, and human
resource research. It is these exerted and integrated performances that human
productive factors of production; i.e. people with its skill, knowledge, experience, and
inventiveness will be created and maintained for organizational purpose. Some of
its(hrm) functions are:

4.4 Human resource Planning –

Human resource planning is the process of systematically reviewing human resource

requirements to ensure that the required numbers of employees, with the required skills,
are available when they are needed. Human resource planning is the process of
matching the internal and external supply of people with job openings anticipated in the
organization over a specified period of time.

Recruitment - Recruitment is the process of attracting individuals in sufficient numbers

and encouraging them to apply for jobs with the organization. It is the process of
identifying and attracting a pool of candidates, from which some will later be selected
to receive employment offers.

12 ALLIANCE COLLEG
Selection - Selection is the process of choosing from a group of applicants the
individual’s best suited for a particular position. Whereas recruitment encourages
individuals to seek employment with a firm, the purpose of the selection process is to
identify and employ the best qualified individuals for specific positions.

Orientation - Orientation is the formal process of familiarizing new employees with

the organization, their job, and their work unit. Through orientation (also called
socialization or induction) new employees will acquire the knowledge, skills and
attitudes that make them successful of the organization.

Training and Development - Training and development aim to increase employee’s

ability to contribute to organizational effectiveness. Training is a process designed to
maintain or improve performance (and skills) in the present job. Development is a
programmed designed to develop skills necessary for future work activities. It is
designed to prepare employees for promotion.

Compensation administration - Compensation administration refers to the

administration of every type of reward that individuals receive in return for their
services. In its boarder sense, compensation represents all sorts of rewards that
individuals receive as a result of their employment.

Performance Evaluation - Performance evaluation is a formal system of periodic

review and evaluation or an individual’s job performance.

Safety and Health - Safety involves protecting employees from injuries caused by
work related accidents. Health refers to the employee’s freedom from illness and their
general physical and mental well – being. These aspects of the job are important
because employees who work in a safe environment and enjoy good health are more
likely to be productive and yield long-term benefits to the organization.

Promotion, Transfers, Demotions and Separations - Promotion, Transfers,

Demotions and Separations reflect an employee’s value to the organization. High
performers may be promoted or transferred to help them develop their skills, while low
performers may be demoted,

13 ALLIANCE COLLEG
Lo_5 Evaluate performance of human resources information system
5.1 Uses of Performance Appraisals

 Performance improvement. Performance feedback allows the employee, the

manager, and personnel specialists to intervene with appropriate actions to improve
performance

 Compensation adjustments. Performance evaluations help decision makers

determine who should receive pay raises. Many firms grant part or all of their pay
increases and bonuses on the basis of merit, which is determined mostly through
performance appraisals.

 Placement decisions. Promotions, transfers, and demotions are usually based on

part or anticipated performance. Often promotions are a reward for past performance.

 Training and development needs. Poor performance may indicate a need for
retraining. Likewise, good performance may indicate untapped potential that should
be developed.

 Career planning and development. Performance feedback guides career decisions

about specific career paths one should investigate.

 Staffing process deficiencies. Good or bad performance implies

Informational inaccuracies. Poor performance may be a symptom of -conceived job
designs. Appraisals help diagnose those errors.

 Equal employment opportunity. Accurate performance appraisals that actually

measure job-related performance ensure that internal placement decisions are not
discriminatory

 External challenges. Sometimes performance is influenced by factors outside the

work environment, such as family, financial, health, or other personal matters. If
these factors are uncovered through appraisals, the

5.2 Swot Analysis SWOT is an acronym of four words.

S stands for strength

14 ALLIANCE COLLEG
W stands for weakness

O stands for opportunity

T stands for threats.

This type of analysis is best performed when the business is new. In the case of an
existing business, SWOT analysis helps determine the strengths and weaknesses of the
business while allowing identification of opportunities that an enterprise can use to
make bigger profits.
A SWOT Analysis is also used to assess information about competitors. What are their
strengths and weaknesses? What opportunities are they able to make use of? What are
the threats to competitors and how would they would be able to respond to these threat
Table 15: SWOT Analysis

Quality
SWOT Analysis Good Things Challenges
Strengths
Internal- What are we strong at? Weaknesses
Looking at What do we have that we Where are we not strong
the can further take advantage yet?
enterprise of? Where do we need to
improve?
Perspective
Opportunities Threats
External - Which existing or future Which existing or
Looking at opportunities can we potential threats do we
the exploit to strengthen our have to consider in order
environment enterprise and business? to avoid risks for our
enterprise and business?

Strength – Those things that the organization does well, the high value or performance
points. Strengths can be tangible and are attributed to loyal customers, efficient service

15 ALLIANCE COLLEG
delivery, very high quality products and excellent financial condition. Strengths can
also be intangible such as good leadership, strategic insights, customer intelligence,
solid reputation and high skilled workforce which are often considered as ―Core
Competencies‖ which is the best leverage points for growth without draining resources.
The internal strengths of an enterprise can be evaluated using the following worksheet
Table 18: SWOT Analysis Worksheet

SWOT Analysis Worksheet

Internal Strength(S) Analysis
Department/Work Unit_______________
Agreement scale

Rank:

No Enhancing Factors Affecting the 5=very good,

. Enterprise 3=satisfactory,1= poor

1 2 3 4 5

Weaknesses
Weaknesses are internal; they are within the control of the organization. Weaknesses
include: Bad leadership, unskilled workforce, insufficient resources, poor product,
quality, slow delivery, long waiting time outdated technologies, lack of planning, high
overhead, lack of supplier relationships and poor reputation. This part tries to give
evidence based answers to the following questions.

What could you improve

What should you avoid?
What are people in your market likely to see as weaknesses?

16 ALLIANCE COLLEG
Table 19: Internal Weakness Analysis

SWOT Analysis Worksheet

Internal Weakness (W) Analysis

Department/Work Unit______________________
Agreement scale

Rank:

No 5=very good, 3=satisfactory,1=

Impending Factors Affecting the Business
. poor

1 2 3 4 5

Opportunities refers to potential areas for growth and higher performance Opportunity
is external in nature and includes factors such as marketplace, unhappy customers with
competitor’s, better economic conditions, more open trading policies. As external
factors, opportunities may help in reaching the desired outcome, including new
technologies, increased customer demand and loosened regulations. The following
template can be used to conduct the analysis

Table 20: External (O&T) Analysis (A)

SWOT Analysis Worksheet

External Opportunity (O) and Threat (T) Analysis
Department____________________

Probability of Impact on
No. OPPORTUNITIES Occurrence High
REMAR

17 ALLIANCE COLLEG
 (L)=1 – H(10) (L)=1 – H(10) K

Threats are external challenges confronting the organization. Threats covers a wide
range factors including bad press coverage, shifts in consumer behavior, substitute
products/service, and new regulations, .it is usually useful to classify or assign
probabilities to threats. The more accuracy in identifying threats, the better position for
dealing with the ―sudden ripples‖ of change
Threats as external factors that may hinder the achievement of the desired goal can also
be explained using Porter’s 5-Forces model
As source of threat the 5 competitive forces are
 Potential new entrants
 Threat of substitutes
 Bargaining power of suppliers
 Bargaining power of buyers/patients
 Rivalry among competitor

5.3 benchmarking

It is a process used to measure the quality and performance of your company’s products,
services, and processes. As these measurements don’t have much value on their own
Benchmarking Important

Benchmarking can be an effective tool for planning and implementing change processes
that lead to organizational improvement when the knowledge gained is converted into a
detailed action plan to improve competitive advantage'. Benchmarking can also be used
as a goal-setting process, an aid in setting performance objectives to achieve
performance improvements.

18 ALLIANCE COLLEG
Benchmarking is one of many tools used as part of any continuous improvement model
for the business organization. Consistent benchmarking can help Improve processes
and procedures.

Gauge the effectiveness of past performance. Give a better idea of how the
competition operates, which will help you to identify best practices to increase
performance. Increase efficiency and lower costs, making your business more
profitable.
Improve quality and customer satisfaction.

There are two basic kinds of improvement opportunities: continuous and dramatic.
Continuous improvement is incremental, involving only small adjustments to reap
sizeable advances. Dramatic improvement can only come about through reengineering
the whole internal work process. Benchmarking will point out what changes will make
the most difference, but it’s up to you to actually put them in place. Types of
Benchmarking there are many different types of benchmarking that fall into three
primary categories: internal, competitive, and strategic. Benchmarking

Internal Benchmarking
If other teams or organizations within the company have established best practices in
processes similar to own enterprise, internal benchmarking involves analyzing what
they are doing to find out areas to improve and be more efficient.

Competitive benchmarking
This type of benchmarking is a comparison of products, services, processes, and
methods of direct competitors. It gives an insight into a position within the industry and
what needs to do to increase productivity.

Strategic benchmarking
This type of benchmarking looks beyond own industry to identify world-class
performance and best practices so as to look for ways to adapt the methods to
procedures and processes.

Steps in the benchmarking process

Benchmarking is a simple, but detailed, step-by-step process: there are eight step in
benchmarking process. Each step is discussed below.
19 ALLIANCE COLLEG
Select a subject to benchmark
Executives and other senior management should be involved in deciding which
processes are critical to the company’s success. The processes should then be prioritized
based on which metrics are most important to all stakeholders. After prioritizing,
selecting and defining the measures to be collected come in..

Decide which organizations or companies to benchmark

Determine whether to benchmark processes within own company, a competitor, or a
company outside of the industry. It may be hard to collect all the required data if the
company to benchmark is a direct competitor. So, different organizations should be
selected to study in order to get the data needed.

Document the current processes

Mapping out the current processes can help identify areas that need improvement and
more easily compare against the chosen organization. The road to improvement starts
with a better understanding of where the organization is at now.

Collect and analyze data

This step is important—but it can prove difficult when trying to gather data from a
competitor because a lot of that information may be confidential. Information can be

Customer damaged goods or delivery problems

feedback may be
delays
about:
invoicing errors

quality of customer service

quality of service provision

5.4 Perform GAP analysis

Performance gap is The perceived fall of the actual performance of the individual
worker as compared to the performance standards set for a particular competency.

20 ALLIANCE COLLEG
Gap analysis is a process of comparing the current state with the desired state for an
organization and creating solutions to meet their goal. When gap refers to how far the
performance is behind the target point; GAP analysis takes to that point.

A GAP analysis is a method of assessing the differences in performance between a

business' information systems or software applications to determine whether business
requirements are being met and, if not, what steps should be taken to ensure they are
met successfully.

It is a method that examines all strategies and possible opportunities to provide

optimization. You can use it for a single process or the entire business; and apply in
various areas such as sales, employee satisfaction or productivity. It could also be
considered as strategic or operational approaches which are both concrete. Operational

approach focuses on daily work, while strategic one focuses on planning and future
strategies. There are 8 essential steps for conducting the analysis and discover what
needs to be done to reach desired goal. Here are the steps:

1. Identify your current state

Before heading towards the goal, we need to be aware of the existing situation and the
main focus of an enterprise, it is important direct the focus on whichever processes or
features to improve.
2. Identify the desired state

With the conscious of what organization is doing, a target point is set. To determine
reasonable goals, we must know what the organization is and isn’t capable of doing
within the bound of time. Be aware of the strong and weak sides an organization then
set their goals using SMART methodology. Goals should be specific, realistic,
measurable, achievable, relevant, and time bound.

3. Go back to the current state and define the gap

Now you know where you stand as an organization and where you want to be. It’s time
to handle the gap in between.

4. Create solutions

21 ALLIANCE COLLEG
If it is discovered why the gap occurs, an action should be taken to fix it. After
evaluating possible solutions then a decision should be made which ones are applicable
to the problem.

5. List the possible solutions

Which way is the best to close the gap? Consider all the suitable options and how you
can benefit from them.

6. Compare with pro’s and con’s

It is needed to reconsider the options with their pros and cons, bringing a new solution
for an existing issue may cause a potential problem or it may cost too much and cause
loss. Therefore, approaching problems from different angles helps to eliminate
unprofitable opinions.

22 ALLIANCE COLLEG