(Human Resource Information Systems, Basics, Applications, and Future Directions, 4e Michael
Kavanagh, Mohan Thite, Richard Johnson)
(Solution Manual, For Complete File, Download link at the end of this File)
Chapter 1: A Brief History and Overview of Technology in
HR
1. What are the factors that changed the primary role of HRM from a caretaker
of records to a strategic partner?
The major factors were as follows:
• The mobilization and utilization of labor during World War II had a
great impact on the development of the personnel function. Managers
realized that employee productivity and motivation had a significant
impact on the profitability of the firm. The human relations movement
after the war emphasized that employees were motivated not just by
money but also by social and psychological factors, such as
recognition of work achievements and work norms.
• During the Social Issues era, there was an increasing need to be in
compliance with numerous pieces of employee protection legislation or
suffer significant monetary penalties. This made senior managers aware
of the importance of the HRM function. In other words, effective and
correct practices in HRM were starting to affect the “bottom line” of
the firms, so there was a significant growth of HR departments.
• The increased use of technology and the changed focus of the HRM
function as adding value to the organization’s product or service led to
the emergence of the HR department as a strategic partner. With the
growing importance and recognition of people and people management
in contemporary organizations, strategic HRM (SHRM) has become
critically important in management thinking and practice. SHRM
derives its theoretical significance from the resource-based view of the
firm that treats human capital as a strategic asset and a competitive
advantage in improving organizational performance.
The students may or may not mention the importance of HR metrics in
answering this question. This factor is implied in the discussion of the
cost-effectiveness section of the chapter. For example, one could not
complete a balanced scorecard or a cost–benefit analysis without having
HR metrics. You should emphasize this point to the students and
, indicate there is much more detail on this topic in Chapter 6.
2. Describe the historical evolution of HRM and HRIS in terms of the
changing role of HRM and the influence of computer technology on HRM.
• The role of HRM in the firm has changed over time from primarily being
concerned with routine transactional and traditional HR activities to dealing
with complex transformational ones. Transactional activities are the routine
bookkeeping tasks—for example, changing an employee’s home address or
health care provider. Traditional HR activities are focused on HR programs like
selection, compensation, and performance appraisal. However,
transformational HR activities are those actions of an organization that “add
value” to the consumption of the firm’s product or service. Transformational
activities increase the strategic importance and visibility of the HR function in
the firm.
• The historical evolution of HRM can be classified in terms of five broad phases
of the historical development of industry in the United States. These phases are
Pre–World War II, Post–World War II, Social Issues, Cost-Effectiveness, and
Technological Advancement Era.
• During the Post–World War II phase, it is important to realize that computer
technology was just beginning to be used at this time, and it was complex and
costly. During the Social Issues phase, effective and correct practices in HRM
were starting to affect the “bottom line” of the firms, so there was a significant
growth of HR departments, and computer technology had advanced to the point
where it was beginning to be used. As a result, there was an increasing demand
for HR departments to adopt computer technology to process employee
information more effectively and efficiently. This trend resulted in an explosion
in the number of vendors who could assist HR departments in automating their
programs in terms of both hardware and software. Simultaneously, computer
technology was evolving and delivering better productivity at lower costs.
During the Cost-Effectiveness phase, to achieve the goal of improving
effectiveness and efficiency in service delivery through cost reduction and
value-added services, the HR departments came under pressure to harness
technology that was becoming cheaper and more powerful. Even small and
medium firms could afford computer-based HR systems that were run by
increasingly user-friendly microcomputers and could be shown to be cost-
effective. During the Technological Advancement Era, the increased use of
, technology changed the focus of the HRM function. There was a shift to adding
value to the organization’s product or service, which led to the emergence of the
HR department as a strategic partner. With the growing importance and
recognition of people and people management in contemporary organizations,
strategic human resource management (strategic HRM) has become
critically important in management thinking and practice. Technology is key to
the implementation of strategic HRM.
3. What is required for the effective management of human resources in a firm to gain
a competitive advantage in the marketplace?
• The effective management of human resources in a firm to gain a competitive
advantage in the marketplace requires timely and accurate information on
current employees and potential employees in the labor market. With the
evolution of computer technology, meeting this information requirement has
been greatly enhanced through the creation of HRIS.
4. Describe the emergence of strategic human resources management (strategic HRM)
and the influence of computer technology. What are some of the approaches used in
HRM to facilitate the use of strategic HRM in a firm’s business strategy?
• The development of HRIS helped enable HRM to become a strategic partner in
organizations, which then led to the emergence of strategic HRM. While
technology is key to the implementation of strategic HRM, strategy is not
sufficient. Implementation is critical in the firm’s ability to gain a competitive
advantage. A critical aspect of an HRIS in supporting the implementation of
strategic plans is using it to make decisions about employees, human capital
programs, and initiatives. All of these HRM decisions are aided by the ability
of the HRIS to generate reports (e.g., the number of new employees needed for
a specific job).
5. How does technology help deliver transactional, traditional, and transformational
HR activities more efficiently and effectively?
One of the major advantages of the design, development, and
implementation of an HRIS is to reduce the amount of time the HR staff
have to spend on transactional activities, allowing the staff to spend more time
on traditional and transformational activities. This notion of using technology
to process transactional activities more efficiently is the central theme of this
book and provides one of the primary justifications for a computer-based
system.
, 6. Describe Six Sigma.
• Six Sigma refers to streamlining operations through business process
reengineering and has been structured around five key processes: define,
measure, analyze, improve, and control (DMAIC). The DMAIC approach uses
an assortment of statistical tools to reengineer business processes, improve
decision making, and improve customer service.
7. Justify the need for an HRIS.
There are several advantages to firms in using HRIS. They include the following:
• Providing a comprehensive information picture as a single,
comprehensive database; this enables organizations to provide structural
connectivity across units and activities and increase the speed of
information transactions
• Increasing competitiveness by improving HR operations and improving
management processes
• Collecting appropriate data and converting them to information and
knowledge for improved timeliness and quality of decision making
• Producing a greater number and variety of accurate and real-time HR-
related reports
• Streamlining and enhancing the efficiency and effectiveness of HR
administrative functions
• Shifting the focus of HR from the processing of transactions to strategic
HRM
• Reengineering HR processes and functions
• Improving employee satisfaction by delivering HR services more
quickly and accurately to them
8. Describe and differentiate the major types of information systems.
Listed below are examples of the types of information systems and the types of
information they provide.
Transaction Processing System
• Improved transaction speed and accuracy
