EMERGING TRENDS IN HRM

BY PROF. PRIYANKA PAWAR

HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

•A human resource information system (HRIS) is software that

provides a centralized repository of employee master data
that the human resource management (HRM) group needs for
completing core human resource (core HR) processes.
• HRIS is a computerized system that provides current and
accurate data for purposes of control and decision-making in
HR. – Gary Dessler “Book: Human Resource Management”
DESIGNING AND DEVELOPING HRIS
1. Search
2. Plan and Align
3. Define and Design
4. Configure and Test
5. Train and Communicate
6. Deploy and Sustain
 ESSENTIALS OF HRIS

1.Should Fulfil the Objective

2.Should Follow a Proper Procedure and Format
3.Clear and Easy to Understand
4.Reasonable Cost
5.Easily accessible
6.Accurate
7.Should be Verifiable
 ADVANTAGES OF HRIS
1.More Accurate than Manual Files
2.Available Centrally and Accessible to all
3.Easy to Analyze Records than in Manual Recording
4.Easy to Operate and Saves Time
5.Administer Employee Information
6.Apply Electronically to the Organization
7.Decision Support System
LIMITATIONS OF HRIS

1.Failure in Forecasting
2.Perception of Top Level Management
3.Defects in Implementation System
4.Lack of Proper Training to HRIS Operators
HR ACCOUNTING
• Human resource accounting is accounting and recognition of
expenses related to employees of the organization and
involves costs related to recruitment, selection, training,
hiring etc.
WHAT IS HUMAN RESOURCE COST

• Human resource costs are those associated with recruiting,

hiring, training, and retaining employees. They can also
include the costs of employee benefits programs and other
compensation-related expenses. These costs can vary
significantly relying on the size and scope of a company’s
operations.
WHY TO MEASURE HUMAN RESOURCE COST??

• Monitor departmental costs

• Measure impact and overall success
• Predict future costs
• Calculate a return of investment (ROI)
ROI = Net Benefit/Total Cost = total benefit-total cost/ total cost
HOW TO MEASURE HUMAN RESOURCE COST

• Fixed vs Variable cost

• HR opportunity cost
• Value of money overtime
• Behavioural HR costing
• HR costing without benefit
• Note: In order to add real value, HR should shift away from
analysing and reducing cost and instead focus on showing and
creating value. This is possible with the help of HR analytics.
NEED OF HRA

• Formulating Policies and plans for human resources;

• Decisions regarding cost and benefits from human resources;
• Determining the training and development cost;
• Determine or ensure proper utilization of resources.
• Determine the value of human resources and benefits from it.
• Aid to top management regarding cost reduction and planning
programs.
• Determining the value of critical employees and benefit from it.
ADVANTAGES OF HRA
 LIMITATIONS OF HRA

• There is no standard procedure for valuing human resources.

• All methods of valuation are based on assumptions.
• Different methods used by various firms in the industry; hence no
comparison can be made with the industry.
• Employee turnover is ignored in valuation. The lifespan of human
resources cannot be estimated.
METHODS OF HRA
HR AUDIT

• “HR audit is concerned with the gathering, analysing

information, and then deciding what actions need to be
taken to improve performance”
• Human resource management audit is the systematic
examination and evaluation of policies, procedures, and
practices to determine the effectiveness of human resource
management.
 SCOPE OF HR AUDIT

• Policies and Procedures • Communication System

• HR Planning • Motivation and Morale
• Recruitment, Selection and • Job Satisfaction
Placement • Stress Management
• Training • Attrition
• Promotion and Transfer
• Performance Management
• Compensation Administration
HR AUDIT CHECKLIST
• Employee records
• Employee handbook
• Hiring and onboarding process
• Compensation
• Performance evaluation
• Benefits
• Training
HR AUDIT PROCESS
 HR SHARED SERVICES
• HR Shared services refers to an operating model in which selected
HR activities are centralized and shared among all business units.
• Administrative HR activities say payroll or document management,
are generally prioritized for delivery through HRSS.
• Imagine a large company with some 200,000+ employees spread
across 6 different subsidiaries. Instead of each subsidiary having
an HR department of its own, under a shared services model the
HR department serves as HR for every individual entity that falls
under the overall business umbrella.
OBJECTIVES
OF SHARED
SERVICES
BENEFITS OF SHARED SERVICES
• Consolidate HR tasks and software
• Optimize HR operational efficiency
• Continuity
• Internal resources can focus on strategic tasks
• The development and retention of the talent pool
• Increases employee experience
• Saves money
ISSUES CREATING HR SHARED SERVICES

• One-size does not fit all.

• The technology doesn’t always meet the centralization criteria.
• Some HR responsibilities are shifted to non-administrative
employees.
• The cost savings don’t always materialize.
THANK YOU
EMERGING TRENDS IN HRM

BY PROF. PRIYANKA PAWAR

HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

•A human resource information system (HRIS) is software that

provides a centralized repository of employee master data
that the human resource management (HRM) group needs for
completing core human resource (core HR) processes.
• HRIS is a computerized system that provides current and
accurate data for purposes of control and decision-making in
HR. – Gary Dessler “Book: Human Resource Management”
DESIGNING AND DEVELOPING HRIS
1. Search
2. Plan and Align
3. Define and Design
4. Configure and Test
5. Train and Communicate
6. Deploy and Sustain
 ESSENTIALS OF HRIS

1.Should Fulfil the Objective

2.Should Follow a Proper Procedure and Format
3.Clear and Easy to Understand
4.Reasonable Cost
5.Easily accessible
6.Accurate
7.Should be Verifiable
 ADVANTAGES OF HRIS
1.More Accurate than Manual Files
2.Available Centrally and Accessible to all
3.Easy to Analyze Records than in Manual Recording
4.Easy to Operate and Saves Time
5.Administer Employee Information
6.Apply Electronically to the Organization
7.Decision Support System
LIMITATIONS OF HRIS

1.Failure in Forecasting
2.Perception of Top Level Management
3.Defects in Implementation System
4.Lack of Proper Training to HRIS Operators
HR ACCOUNTING
• Human resource accounting is accounting and recognition of
expenses related to employees of the organization and
involves costs related to recruitment, selection, training,
hiring etc.
WHAT IS HUMAN RESOURCE COST

• Human resource costs are those associated with recruiting,

hiring, training, and retaining employees. They can also
include the costs of employee benefits programs and other
compensation-related expenses. These costs can vary
significantly relying on the size and scope of a company’s
operations.
WHY TO MEASURE HUMAN RESOURCE COST??

• Monitor departmental costs

• Measure impact and overall success
• Predict future costs
• Calculate a return of investment (ROI)
ROI = Net Benefit/Total Cost = total benefit-total cost/ total cost
HOW TO MEASURE HUMAN RESOURCE COST

• Fixed vs Variable cost

• HR opportunity cost
• Value of money overtime
• Behavioural HR costing
• HR costing without benefit
• Note: In order to add real value, HR should shift away from
analysing and reducing cost and instead focus on showing and
creating value. This is possible with the help of HR analytics.
NEED OF HRA

• Formulating Policies and plans for human resources;

• Decisions regarding cost and benefits from human resources;
• Determining the training and development cost;
• Determine or ensure proper utilization of resources.
• Determine the value of human resources and benefits from it.
• Aid to top management regarding cost reduction and planning
programs.
• Determining the value of critical employees and benefit from it.
ADVANTAGES OF HRA
 LIMITATIONS OF HRA

• There is no standard procedure for valuing human resources.

• All methods of valuation are based on assumptions.
• Different methods used by various firms in the industry; hence no
comparison can be made with the industry.
• Employee turnover is ignored in valuation. The lifespan of human
resources cannot be estimated.
METHODS OF HRA
HR AUDIT

• “HR audit is concerned with the gathering, analysing

information, and then deciding what actions need to be
taken to improve performance”
• Human resource management audit is the systematic
examination and evaluation of policies, procedures, and
practices to determine the effectiveness of human resource
management.
 SCOPE OF HR AUDIT

• Policies and Procedures • Communication System

• HR Planning • Motivation and Morale
• Recruitment, Selection and • Job Satisfaction
Placement • Stress Management
• Training • Attrition
• Promotion and Transfer
• Performance Management
• Compensation Administration
HR AUDIT CHECKLIST
• Employee records
• Employee handbook
• Hiring and onboarding process
• Compensation
• Performance evaluation
• Benefits
• Training
HR AUDIT PROCESS
 HR SHARED SERVICES
• HR Shared services refers to an operating model in which selected
HR activities are centralized and shared among all business units.
• Administrative HR activities say payroll or document management,
are generally prioritized for delivery through HRSS.
• Imagine a large company with some 200,000+ employees spread
across 6 different subsidiaries. Instead of each subsidiary having
an HR department of its own, under a shared services model the
HR department serves as HR for every individual entity that falls
under the overall business umbrella.
OBJECTIVES
OF SHARED
SERVICES
BENEFITS OF SHARED SERVICES
• Consolidate HR tasks and software
• Optimize HR operational efficiency
• Continuity
• Internal resources can focus on strategic tasks
• The development and retention of the talent pool
• Increases employee experience
• Saves money
ISSUES CREATING HR SHARED SERVICES

• One-size does not fit all.

• The technology doesn’t always meet the centralization criteria.
• Some HR responsibilities are shifted to non-administrative
employees.
• The cost savings don’t always materialize.
THANK YOU