Conclusion

The core HR/payroll system will provide much of the functionality to support the major HR activities and processes illustrated by HR taxonomy

HR packages provide different levels of coverage across these areas. If coverage in a particular area is shallow, an organization may purchase add-on products to achieve the missing functionality. Although these products may be provided by other suppliers, a standard interface with the core HRIS may exist where the two suppliers have such as arrangement.

With modern web-enabled workflow-driven HR systems, however, these processes can be highly streamlined so that task owners (employees, line managers,  HR staff) are prompted automatically to execute their task using employee or manager self-service (ESS/MSS).

Lastly , various add-on may be used to supplement the HR administration component of the core system. For example,  in a clocking-on environment, a separate time and attendance system may be used to record absence details, which are then passed to the HRIS via an interface. the HRIS also need to integrate with systems that are external to the HR department, such as security, accommodation, expanses and so on.

The development of human resources is bound inextricably to the technology that serves it. The HR function has faced a succession demands for changes to the way in which it delivers transactional service ranging from the development of more effective, integrated end-to-end processes through to the development of knowledge based centres of excellence

In the end, however, the ability of the HR function to deliver step changes in performance is dependent on its capability to manage administrative tasks, which in turn demands a firm grasp and control of HR processes and data.

Web-Based Application

ERP/ Web-Based Applications

The development of integrated HR solutions was given further impetus by the emergence in the 1990s of enterprise resource planning (ERP) applications, such as Oracle, SAP and PeopleSoft. Initially the term was coined to describe a complete set of business applications that would cover all aspects of an organisations’s core process although later it generally mean applications that specifically focused on back office operations including HR, finance procurement.

The development of an integrated approach to the back office meant the potential to eliminate the complexities of integrating cross functional processes such as management of organization structures (where HR and finance information seldom agreed) and paved the way for fully integrated solutions that might cover multiple back office processes and geographics.

Changing Role for Software Vendors

The battleground for HR systems suppliers has shifted away from the development of new and better functional solutions. The functional “arm race” has led to a position whereby the majority of the users of the main ERP solutions are unable to make effective use of the full range of the functionality offered to them.
 Therefore many are simply buying more functionality

Of far greater importance now to the emerging models of HR is the need for effective integration of core HR applications with the wider set of technology  tools that are required to manage an HR SSC. Software vendors need to demonstrate that they possess an understanding of how a single end-to-end process will be supported by the technology and how the components of the product offering fits together to provide a seamless suite of applications for shared services

However, this is still a challenge to many suppliers who may not have had to make their products work this way before. For example, contact management solutions are an essential part of SSC technology; however, suppliers have frequently evolved their CRM tools to do a different job-namely to manage relationships  with external  customers – and still do not recognize the significance of these applications to HR

Ample evidence shown that many market leading suppliers are still focused on products that meet the demands of the ‘old’ model of HR delivery where the emphasis is solely on core process and HR-related management information. As long as this focus remains then suppliers will not provide adequate support to the needs of the new model for an integrated set of technology to support shared services.

Organization Management (OM)

Organization management (OM) is now standard offering of HR products and provides a record of the organization. OM allows the organization to be represented in terms of departments and functions , spanning as many organizational layers as required. Within these, reporting hierarchies are recorded comprising individual positions, which may be vacant or occupied by one or more employees whose records are linked to Om from the HR administration module.

OM enhances HR  functionality across a range of applications:

·         Resourcing – where positions attribute can be used to create vacancy records,  when incumbent is shown as leaving (see below);

·         Learning and development  - where competency matching between individuals and their current and intended positions can be conducted for development planning purposes

·         Management information – providing analyses of filled and vacant positions, job competency profiles and so on. The OM module may also generate organization charts showing filled and vacant positions although, a specialist charting package is often needed as an add-on to achieve sufficiently user-friendly display;

·         System security – OM hierarchies may be used to control access rights among ESS/MSS users based on hierarchies , for an example, a line manger can only access the records of staffs occupying positions in his or her department

·         Workflow may be well be governed by Om; for example, determining where to route a request for annual leave.  As mentioned previously, the workflow may reside in the CRM layer, in which case  an interface with OM data would be needed to supply the CRM with the necessary hierarhy details

·         Payroll charging- rather than maintaining cost centre details individually for every employee in a department, it is more efficient to record the cost centre once,  on OM against the department. Employees will then inherit the cost centre details via their positions and not only in exceptional cases would these need to be overwritten by individual level cost centre entries. Apart from economy of data entry, this improves accuracy and consistency between the HR and finance systems.

In summary, OM supports a range of critical HR functions and as such is the backbone of the HRIS and related systems. It is therefore essential that OM data is accurate and up to date, requiring robust data maintenance procedures.

Performance Management

Performance management is an ongoing process. Performance management does not take place just once a year. However, performance management is a continuous process including several components. These components are closely related to each other and the poor implementation of any of them has a negative impact on the performance management system as a whole. The components in the performance management process begins with prerequisites, performance planning, performance execution, performance assessment, performance review.

The first component of the performance management process involves two prerequisites. First, there is a need to have good knowledge of the organisation’s mission and strategic goals. This knowledge, combined with the knowledge of the organization’s mission and strategic goals of one’s unit, allows employees to make contributions that will have an positive impact on their units and on the organization as a whole. Second, there is a need to have good knowledge of the job in question. A job analysis allows for the determination of the key components of a particular job: what task need to be done, how they should be done, and what knowledge, skills, abilities (KSAs) are needed. If we have good information regarding a job, then it is easier to establish criteria for job success.

The second component of the performance management process involves performance planning. Performance planning includes the consideration of results and behavior, as well as developmental plan. A discussion of results needs to include key accountabilities, specific objectives for key accountability and performance standards. A discussion of behaviors needs to include competencies. Finally the development plans includes a description of areas that need improving and goals to be achieved by each area.

The third component is performance execution. Both the employee and managers are responsible for performance execution. For an example, the employees need to be committed to goal achievement and should take a proactive role in seeking feedback from his or her supervisor. The burden is on the employee to communicate openly and regularly with the supervisor. Also, the employee has a responsibility to be prepared for the performance review by conducting regular and realistic self-appraisals. On the other hand, the supervisors also have important responsibilities. These including observing and documenting performance, updating the employee on any changes in the goals of the organization and providing resources and reinforcement so the employees can succeed and continue to be motivated.

The fourth component involves performance review when the employee and the manager meet to discuss employee performance. Involvement of the employee in the process increases his or her own ownership and commitment to the system. In addition, it provides important information to be discussed during the performance review. In the absence of self-appraisals, it is often not clear to supervisors if employee have clear understanding of what is expected of them.

Lastly, the fifth component involves performance review when the employee and manager meet to discuss employee performance. This meeting is usually called the appraisal meeting. This meeting typically emphasize the past: what the employee has done, and how it was done. An effective appraisal meeting also focuses on the present and future. The present involves the changes in compensation that may results from the results obtained. The future involves a discussion on goals and development plans that the employee will be expected to achieve during the period before the next review session. 

The above explanation is essential for me to understand a bigger picture of performance management of employees in organizations. This is due to my current degree in Psychology requires me to understand first the performance management process, a topic of Human Resources Management, as the groundwork before I can able to comprehend application of HRIS in performance management