Human Resources

Lecture 5
HR Information systems
HR planning
 HR information systems

you should be able to:

-Describe the information which an organisation needs for effective HR management;

- Outline methods for gathering, storing and retrieving HR information;

- Discuss issues of privacy for HR information;

- Describe the use of data and statistics for HR management.

Information is what we get from processing and analysing data.

Maintaining personnel records is a traditional role for the HR department.

Now all information can be kept in computers, but still some paper work
should be done too. It’s important to keep application forms, interview notes,
job descriptions, performance reviews, remuneration recommendations,
formal warnings, and so on – and to store it under appropriate security.

HR departments turned into special computer software to keep all the

information, due to growth of organisations. It is harder to keep all personnel
information in paper these days.

HR information systems have three basic functions:

- to collect, store and process information about jobs and employees;
- to provide reliable information for making employment-related decisions
about individual employees and groups of employees;
- To allow the organisation to analyse and monitor its HR policies,
programmes and decisions.
HR information categories Job is a generic term, position is a
2. Jobs description of specific individual’s
role. E.g. Job – calling centre,
3. Positions
positions are different.
4. Employees
Information about jobs
Occupatio- Recruitment
nal safety -Job description;
Training and and health Selection and
development placement -Job evaluation;
Job facilities
administration Termination -Current salary;
Succession Holidays and -Salary range for the job;
planning leave
Jobs People administration -Performance standards
Career
Performance
development and measures;
planning and
review Positions Job-related training
Job description, Remuneration
person profiles management information.
Work design Employme Payroll
administration
Organisati nt terms
onal and
structure conditions
 Information about positions
-Name(s) of the present and previous holder(s);

-The reporting relationships;

-It’s location;

-And any unique performance requirements or other special circumstances.

Information about people

Information about individual workers is often seen as the most important HR
information. In fact especially with computerised systems – this data is of limited use
unless it is readily retrievable and can be processed in the framework of the
information about jobs and positions.
 Designing an HR information system

Ask what HR information the organisation needs, what it will be used for, and by whom.

What information do you need?

HR information must be gathered to satisfy certain legal requirements as well as the

management needs of the organisation itself. BY law, the organisation must maintain
certain records (e.g. wages and time record for each employee under the Minimum Wage
Act 1983, a holiday book under the Holiday Act 1981, and a register of accidents under
the Health and Safety in Employment Act 1992)

These records should be kept for usually six years, since this is the time during which
legal action can be taken, but seven years for tax-related information.

External requirements help to define the organisation’s data needs. However, the HR
information system will be designed and maintained primary to meet internal needs.
 Employee data
Firstly, the data should be accurate, relevant and useful.
Secondly, privacy and confidentiality of information are important considerations.
Knowledge of the Privacy Act 1993 is a must for a HR employee :

1. Personal information shall not be collected by any agency unless it is needed for a
lawful purpose connected with a function or activity of that agency.
2. Personal information shall be collected directly from the individual concerned.
3. When collecting personal information, an agency must ensure that the person knows
in advance:
- That the information is being collected, and why;
- Who will receive and hold the information;
- The law under which the information is being collected;
- The consequences of not providing the information;
- The person’s right to have access to, and request correction of, any personal
information.
4. Personal information shall not be collected unlawfully or unfaithfully; or by means
that intrude unreasonably on the personal affairs of an individual;

5. An agency that holds personal information shall ensure that the information is
protected by reasonable security safeguards against loss; unauthorised access, use,
modification or disclosure; or other misuse;

6. Where personal information is readily retrievable, the individuals concerned are

entitled to know whether the agency holds such personal information and, if so, to have
access to that information. Individuals who are given access to personal information
shall be advised that they may request correction of that information.

7. Where an agency holds personal information, the individual concerned is entitled to

request correction of the information and, if that correction is not made, to request that
there be attached to the information a statement of the correction sought but not made.

8. An agency that holds personal information shall not use that information without
taking reasonable steps to ensure that, having regard to the purpose for which the
information is proposed to be used, the information is accurate, up to date, complete,
relevant and not misleading.
9. An agency that holds personal information shall not keep that information for longer
that is required for the purposes for which the information may lawfully be used.

10. An agency that holds personal information that was obtained in connection with
one purpose shall not use the information for any other purpose.

11. An agency that holds personal information shall not disclose the information to
another person or agency.

12. Unique identifiers are not to be assigned to individuals unless that is necessary to
enable the agency to carry out its functions efficiently.
Application forms may contain:
-Generally relevant information – e.g. name, address, education and training, and

employment experience;
-Information which can be relevant in specific employment circumstances – e.g.

whether a person has high physical strength or a driver's license;

-Information which is seldom important – e.g. home ownership, financial status or

transactions, and traffic offence convictions are seldom relevant when considering a
person for employment.

Other employee information

When a person is employed more information will be gathered, such as:
Employee number, allocation of security codes, assignment of locker facilities,
information which is unique to an individual. New employees will be entered on the
payroll, which will mean getting their Inland Revenue Department numbers, tax codes,
bank account details and pay rates.
 Designing forms and records

-Why is the information required? Who needs it?

-How will it be collected? Who will complete the form?

- Standardisation.
- Design and layout.
- Language.
-How will information be recorded and action on it decided?
-How will data be analysed? How will the results be used?

-How will data be kept up to data? How long will it be kept?

 The employee’s personal file

‘Access to personal data must be restricted to those who have a genuine need or right
of access’.

-The employee’s application form;

-Copies of references;

-Interview notes;

-Job descriptions;

-Letter of appointment;

-Employment agreement;

-Medical report;

-Engagement records;

-Performance reviews;

-Correspondence.
 Designing a computerised HR system
-Define your information needs.
-Package, or tailor-made solution?

-Hardware questions.

Statistical concepts
Central tendencies (means);
Distribution of data (standard deviation – measure the spread of a set of number);
Relationships between different data (positive and negative correlations);
Significance of trends rather than events;
Sampling techniques and sample size requirements.

HR statistics are a valuable aid in management decision making.

 HR planning

you should be able to:

Describe the role of HR planning in HR management;
-

- Outline the HR planning process;

- Introduce the main uses of HR planning;

- Describe statistical and non-statistical HR planning techniques.

 ‘The right number and right kind of people in the right place, at the right time, doing
things for which they are economically most useful’.
Today, when human resources are said to be the source of competitive advantage for
many organisation, HR planning should be central contributor to the overall planning
effort.
What is HR planning?
Human resource planning is the systematic and continuing process of analysing an
organisations human resource needs under changing conditions and integrating this
analysis with the development of personnel policies appropriate to meet these needs.

HR should answer the following three questions for the organisation:

-What human resources – in terms of numbers, locations, skills, experience,

demographics and other factors – will the organisation need to fulfill its goals and plans
and cope with its possible futures?
-What are the gaps between that future ‘demand’ fir human resources and the ‘supply’

available to the organisation at present?

-What HR programmes and activities – recruitment, training, redeployment,

outsourcing and so on – will be needed so that the organisation can bridge those gaps?
Or will it be too difficult to bridge the gaps for reasons of time, cost, skills shortages,
and so on – which means the organisation’s goals and plans will have to be reviewed?
HR planning – to be truly effective – must be integrated with all aspects of planning
and management.

Challenges for HR planning

-Continuing competitive pressures, both domestic and international, to identify and
develop new or different markets, products and services;
-Mounting demands for more efficient public agencies, providing better services at

lower costs;
-Introduction of new technologies;

-Restructuring and relocations;

-Changes in work systems and methods;

-Changing attitudes among various groups in the workplace – especially ‘knowledge’

workers who seek more balanced lifestyles and more control over their own careers.
 Levels of HR planning

Chinese proverb – If you wish to plan for a year, sow seeds, If you wish to plan for 10
years, plant trees. If you wish to plan for a lifetime, develop people.

- International level
National level
-Monitoring labour markets and employment patterns so that public and private

agencies have information on labour supply and demand;

-Reviewing education and training policies and programmes to ensure that people are

able to develop their lie and employment skills adequately, and that the changing needs
of employers are met;
-Providing employment and training advice and assistance through public agencies to

assist unemployed people find paid work, to facilitate workforce mobility and
flexibility, and to assist employers meet their needs for labour;
-Financial assistance so that people who are unable to find paid employment can meet

their economic needs and are encouraged to maintain contact with the labour markets
for their skills and experience.
 Industry and occupational level
Many industries and occupations are continuously planning for their human resources needs.
Organisations and enterprise level
-Acquiring human resources;

-Developing human resources;

-Managing and motivating human resources;

-Renewing human resources.

HR roles and responsibilities in human resources planning

-Ensure that managers are aware of the importance of planning HR policies and programmes for

the future well-being of the organisation;

-Provide accurate and timely analysis and information, highlighting potential problems;

-Work closely with managers and advise them on the development and implementation of

appropriate approaches to HR planning;

-Monitor and adapt HR plans on a continuing basis, in conjunction with corporate and line

managers;
-Encourage the allocation of sufficient resources for staff training, retraining and development to

meet organisational and individual needs, rather than relying on external recruitment or unplanned
internal moves;
-Enable employees to be involved in , to be committed to, and to take responsibility for, their own

development;
-Facilitate the business planning process.
 Corporate management

-Develop a business plan for the organisation and monitor and review this plan as
necessary;
-Take a long-term view of the organisation’s goals and strategies, and demand

systematic, analytical HR planning to support them;

-Facilitate systematic interaction and debate between ‘top-down’ and ‘bottom-up’

strategies;
-Ensure the commitment and support of line managers in the development and

implementation of HR planning;
-Implement the HR planning activities needed to meet longer-term goals and targets;

-Ensure the allocation of appropriate resources to structural analysis, recruitment,

training, retraining and development;

-Work with the HR function to establish appropriate development and career paths.
 Line managers
-Implement HR plans;
-Systematically consider the factors likely to affect their part of the organisation in the

future and the impact that those factors are likely to have on the behaviour, attitudes,
numbers and skills of the people employed;
-Ensure that employees clearly understand the standards of performance required of

them and how these may be linked to the rewards system;

-Discuss training and development needs with employees in the light of the

organisation’s objectives;
-Identify employees’ training and development needs, given their performance,

potential, and the positions that will probably need to be filled;

-Ensure employees are aware of their development needs and are committed to

achieving their development potential;

-Ensure that performance problems are addressed;

-Establish regular communication with employees and monitor its effectiveness.

 Individual employees
-Identify their own training and development needs and discuss with their managers

ways in which they organisation can assist;

-Recognise the need to train and retrain and to change roles and work practices in order

to be adaptable and flexible in response to the changing needs of their organisation,

occupation or profession;
-Involve themselves, as appropriate, in plans and decisions which will affect them as

individuals or their organisation as a whole.

HR planning process
The organisation’s strategies and plans are the starting point for all HR planning
-Organisation’s strategies and plans;
Human resources requirements;
Human resources availability;
Assessment of human resources needs;
Action planning
Implementation and monitoring.
 Organisaion’s strategies and plans
Mission and goals;
Stakeholder requirements;
Markets and competition;
Political, economic and social
environments;
Population and workforce demographics.

Human resources requirements Human resources availability

-Business plans and budgets; -HR inventory;
-Work design and job analysis; -Turnover and attrition forecasts;
-HR philosophies and policies; -Recruitment plans;
-Technology and systems; -Succession and replacement plans;
-Legal requirements. -Productivity improvements.

Assessment of human resources needs

-Gap analysis

Action planning
-External recruitment;
-Internal redevelopment;
-Training and development;
-Reductions and reallocations
Implementation
 Measuring productivity
Productivity is the ratio of the output of goods and services of an organisation (or
country) in relation to the inputs (labour, machinery, land, finance) used to produce
them.

Average cost per employee: total employee costs/ total number of employees

Measuring workforce movements

Turnover rate (%): (number who left during year/average number of employees in
position during year)*100%