The first step in designing and developing an integrated modern human resource system is to determine the needs and technical resources Riordan manufacturing has (Ceriello & Freeman, 1998). The company uses an Enterprise Resource Planning System that was installed in 1992 which works independently from its various offices. This system is fundamental to the company’s finance and accounting applications. The vast workforce and numerous branches suggest the inefficiency of such a system in terms of operations management and especially the vital element of the human resource management. An overview of the existing information system and the associated application validate the dire need for a more sophisticated information system. The human resource factors that call for such a system include payroll issues, labor intensive procedures, information deficiency and important data located in different areas.
Another important step in the design of the new system was to examine the various functions performed by the information system in the relevant departments so as to identify the tasks the new system will be required to perform (Kavanagh & Thite, 2009). The most relevant departments under investigations were the HR and finance & accounting departments. The important and pertinent relationship between the two departments is that the human resource department must relay the payroll, loan and tax information to the finance and accounting departments. Unfortunately, both departments have separate software applications which compel them to work separately before forwarding the data for consolidation. Other HR functions of importance in our design include recruitment, employee training and development functions as well as corporate social responsibility function.
Currently, the human resource department stores very limited information including:
- Employee personal information
- Vocation hours
- Employee leave sequence
- Pay rate
- Hire date
- Promotion opportunities
- General organizational data
- Employee loans
- Personal exemption from tax
Design requirements and aims
As noted earlier, Riordan uses an information system as an integral part of its financial and HR functions. However, it is limited to just a few functional tasks rendering its services inefficient in such a big organization. Any change pertaining to HR information must be submitted by the workers in writing and recorded by a single payroll clerk located at the headquarters. Employee training and development information is stored in form of spreadsheets by the training officer. This method of managing HR information is cumbersome and insecure. Moreover, the method does not allow for the specialist to update information or receive feedback and complaints from employees.
In regard to these deficiencies, Riordan needs a system that can pull all the aspects of human resource into a single central locality. The system must be secure with login capability as well as be able to support updating and authorized adjustments. The data would be stored in a shared environment for any authorized personnel to access and maintain high level of security. The system must be designed in a manner that aims to increase efficiency and reduce cost. The architecture of the system would be designed such that the system functionality is addressed in order to ensure protection to applications and the business. This means that the system must be stable, manageable and easy to maintain. In addition, other factors such as performance, scalability, expendability, consistency, and easy integration with other systems must be taken into consideration.
Designing the system
Design requirements and needs suggest a system that provide a centralized database for managing and storing personnel data. Microsoft Dynamics or Oracle database should be the best options for the situation in Riordan. Any of the two solutions will automate organizing HR process, remove many clerical activities and provide HR with influential tools for employee management. The databases will allow the establishment of a single integrated application due to their advanced technological options and compatibility. The PHP programming will be used as the interface that creates the overall information system. The solution will support the following wider functions:
- Personnel management
- Payroll and Attendance System
- Compensation and Benefit Administration
- Position Control
- Affirmative Action
- HR Policies & Regulations
- Online Documents
- Corporate Directory & Organizational Charts
- HR regulations
- Training and Development
- Company recruitment
- Suggestion Box
The designed HR Information System is an organized procedure for collecting, storing, modifying, updating, maintaining, validating and retrieving data relevant to the company’s human capital, departmental activities and organization improvement and support. The design information gathered should align with the needs of the stakeholders as well as the system specifications defined by the database used. As Walker (2001) notes, web applications must be an integral part of the design in order to enhance information exchange across the entire system.
In designing Riordan HRIS system, it is important to consider the needs of the company and/or departments as well as the availability of technical recourses. A review of the functions and existing systems is also important as well as the requirement and goals the new system must achieve. With such information, it becomes easier or straight forward to design an all encompassing HR system for Riordan.
Ceriello, V. R. & Freeman, C. (1998).Human resource management systems: Strategies, tactics and techniques revised and expanded edition. Hoboken, NJ: John Wiley & Sons. Print.
Kavanagh, M. J. & Thite, M. (2009). Human resource information systems. Thousand Oaks, CA: Sage Inc. Print.
Walker, A. J. (2001). Web-based human resources. New York, NY: McGraw-Hill. Print.