Monday 7 December 2015

Use of Information Technology in Human Resource Planning

IT and HR Planning
Since late 1990s, unprecedented growth and advancement in the Information Technology (IT) sector has been witnessed. As a result, most organizations have set aside funding for research and development activities with a major focus on how to effectively integrate technology in the business operations.  One of the major areas in which information technology has proven to be useful is in human resource (HR) planning, where IT application ranges from employee data storage to the provision of employee self-assessment and the guidance into career development.  Such IT applications are utilized by the departmental heads especially in planning for the future succession of the retiring or promoted employees and in the determination of ways to improve the employee participation and performance (Torres-Coronas, 2009). Thus, the paper explores  the various ways in which IT aids in HR planning, various application software most appropriate to the HR departments and the difficulties faced by the human resource management during the implementation phase of the IT usage.
Definition of Terms
1.      Information Technology
IT mainly basically comprises all the computer application software and the hardware components including computer networking and other advanced communications technologies. IT is ideal in the projection of the approximated supply and demand levels in a business organization with the basis on the utmost realistic scenarios. Additionally, the reliability of information technology has been confirmed over the years in the provision of a solution to complex problems faced by the human resource decision makers with regards to the hiring and firing of the personnel (Boroughs et al. 2012).
2.      Human Resource Planning
HR planning is the entire process that seeks to make a proper identification of both the current and the future workforce needs for the corporation to successfully implement its mandate. Notably HR planning serves as a link between the personnel top level management and the institutional strategic plan as a whole. It includes the employer brand creation, the strategy for retaining the employees, how to manage the employee absence and the selection and recruitment strategy.
3.      Human Resource Information System (HRIS)
HRIS is composed of the system software and the appropriate hardware, the system procedures and policies, and other functions that support, gather, and ensure the reporting of the human resource related activities.
4.      Enterprise Resource Planning (ERP)
ERP refers to the commercially available software systems used in the integration and the automation of the entire business process that is set in a given organization. Essentially, ERP promotes the utilization of a centralized database containing organizational data and can be shared and retrieved by various departments (Ray, 2011). Integration of this software with the HR planning software ensures automation of most of the tasks, hence saving on the cost of hiring experts. Also, the software effectively cut on wastage of time observed in the manual system of resource planning.
HR planning Activities Supported by IT utilization
1.      Data Storage
One of the core capabilities of the information system is data storage for future reference and easier retrieval. As such, the HR department utilizes this computer ability to keep employee data regarding their monthly or annual wages, the assigned vacation period and the times for sick leave. The data is crucial especially for future planning as to who should relieve an employee on vacation or sick leave. Thus, such early plans enabled by IT greatly minimize the level of irregularities and uncertainties and other challenges that can ensue in the case of its non-utilization.
2.      Data transfer to the Outside Payroll System
The stored data in the Human Resource Information System is easily transferrable to an external payroll system, provided there is adequate internet connectivity. Therefore, the burden of the data inaccessibility and the time constraint in planning for future payments for the employees --as in the case of a manual system --is effectively neutralized.
3.      Generation of the Organizational Charts
Organizational charts are important, especially in planning and clearly outlining the organizational chain of command, both vertically and horizontally.  In a growing organization, the creation of new posts requires ample planning and careful consideration of where the new employees would best fit in the organizational structure. It is a tedious and a time-consuming process if done manually (Dua et al. 2012). However, there is already designed application software that aids the HR planners in the generation of the organizational Charts. In fact, the software accurately eliminates the flaws as they emerge in the initial stages of the chart generation, hence improving its reliability.
4.      Posting of Job Openings
The ability to link the organizational database system to the Worldwide Web enables the HR planners to easily post job openings and the application procedures to the potential recruits. Due to the wider exposure of the positions to the wider public, the firm shall receive a large number of applications, of which the best few can be selected for consideration. The entire application process can further be automated, enabling the HR planners to engage in other tasks of importance to the organizational development.
5.      Labor Cost Tracking
From the employee data and their remunerations stored in the system, the HR planners have an opportunity of retrieving the data when needed. For instance, the planners can determine the and regulate the labor cost through tracking the day to day expenditure on labor activities, which is made easier through the facilitation of the information technology. Tracking of labor cost eases the planning process due to its ability to provide data for projection of future labor requirements; hence the need to come up with the strategies in the present to help mitigate that leads to the cost hiking.
6.      Employee Self-Assessment and Career Development
Much application software have been designed specifically designed to meet the needs of the assessment of employees t the workplace to determine their potential and the benefit gained by the firm through utilization of their skills. In addition, the system offers the employees an opportunity to develop their skills to meet their career requirement. It should be noted that the employee assessment data records can be retrieved by the HR planners for use in determining best-suited employee for promotion or a new job offering (Werner et al. 2009).
7.      Ergonomics Assessment Assistance to Employees
Years of careful observation of the employee behavior and performance enable the HR strategists to design ingenious programs aimed at offering assistance to the employees by exploiting their full potential. The programs can be executed in the HR IT system to enable easier reference and utilization of employees as per the recommendations of their departmental heads. Eventually, its effective utilization will yield fruits, enabling the entity to move closer towards attainment of the set long-term goals.
8.      Measurement of Needs and Diversity Initiative Results
Information technology use incorporates the provision of a statistical analysis and graphical depictions of the progress of the newly diversified initiatives with a focus on the HR department. The analysis enables the HR planners and strategists to tactfully come up with a classification of the employee and organizational needs in accordance to the priorities and appropriateness. Eventually, such measurements can be used in improving the level of employee satisfaction, hence their motivation to fulfill the needs of the organization.
9.      Benefits Records by the Employees
Large organizations utilize a personnel IT system that enable the employees to open up virtual data accounts. As a result, the workforce is provided with a unique opportunity to feed in personal information, with an assurance of utmost confidentiality by the HR department.  In turn, the HR planners have a chance to gather first-hand information about the employee welfare, for instance, their benefits records. Armed with the data, the planners can easily conceive ideas on how to improve the future performance of the employees in the organization.
10.  Online Service Delivery
In the present times, the HR strategists and planners have and the option of incorporating a workforce that can be able to work at home or anywhere on the globe. The initiative is made possible by the advancement and reliability in the internet connectivity, the introduction of the cloud computing and the digitization of most of the tasks in the modern society. The integration eases the burden for hiring of the office space; further diminishing the operational costs.
Steps for the Selection of an IT Solution for HRM Planning
The following are some of the steps adhered to when choosing the most appropriate HRM planning IT application (Nasir, 2013):
1.      Needs Analysis
The HR management should determine the major needs that will be fulfilled by the technology. This involves considering the system credibility, the growth progress of the company and the level of effective management of the company’s human capital.
2.      Marketplace Exploration
The strategists are required to have a keen observation of the latest product in the market that has a higher chance of meeting the current needs in the organization. This should be done with reference to the outcome of the initial step.
3.      Issuance of a Proposal request
After the careful exploration of the marketplace and the subsequent determination of the appropriate IT product, the HR department has a chance of notifying the IT Company’s sales department of their Interest in the IT product. As such, it is necessary for the planners to request for a demonstration on how the product works before fully committing the firm’s resources on the same.
4.      Vendor and Product Evaluation
Vendor evaluation is necessary for determining the capability of the provision of future maintenance and repair services when needed. Additionally, the vendor should be able to meet or exceed the needs of ISO certification. On the other hand, critical evaluation of the product enables the HR department to have a clear and an in-depth understanding of the product’s capability. In essence, it will aid in the decision-making process about the integration of the product in the business operations.
Technology Applications for HR Planning
The following are some of the technology applications that are highly responsive to the unique requirements of Human Resource Planning and Strategies (Niehaus, 2013):
1.      Workforce Analytics
Workforce analytics is the application software that focuses on addressing the imminent challenges experienced when gathering the business intelligence data to HR management in the planning as well as the entire strategic decision-making process. In fact, the best-designed applications have the ability to provide an on- demand access to the performance of the workforce at any given time. Secondly, the software provides dashboards; enabling the HR planners to have adequate information at their disposal. Lastly, it enables the determination and analysis of the root cause, comparison provisions and the current trends in human resource (In Disselkamp, 2013)
2.      Management and Scheduling of Workforce
The application software specifically designed for the scheduling and optimization of the workforce has numerous applications necessary for effective and optimum deployment of employees. The application software, for instance, has an ability to create schedules that can account for various variables including call volumes and time for holding meetings.
3.      Skills  Inventory
These are the application software best suited for retrieval of vital information for use in the assessment of talent supply within the organization. The application holds data regarding the personal employee records and their skill profile. The data can include the names, the employee rank and their work history. Other information includes the recommendations and the education level: all of which are useful in the planning process in the organization.
4.      Charts Focused on Replacement
The application software designates the entire process of sourcing for the most suited replacement personnel for a vacant managerial post. This software for replacement planning gives the management an opportunity to track the overall performance of the incumbent employees and those of the potential candidates. Additionally, specified personal information from the uploaded resume can easily be obtained through the use of the software. It is also important to note that the application is designed to allow for the tracking of the potential candidates payment history and their performance for all the year in professional service.
5.      Succession Management Plan
The software is mainly focused on an adequate preparation of the employees for the potential job opportunities in the future within the firm. Its design ensures intensive information gathering procedure on the employee’s welfare that includes their level of competency and talent, the future development plans, and the possible opportunities. Furthermore, the system integrates assessment of performances from varied sources, for instance, the all-around feedback (360 degrees) that allows an independent assessment of the staff's individual skills.
Challenges in IT implementation
            The challenges experienced in IT implementation by organizations include the following (IRMA, 2014):
1.      Lack of User Feedback
The feedback from the software users to the vendors offers a chance to vendors to improve the service delivery as per the recommendation of the users. The failure of such renders the vendors unaware of the needs and the main objectives that the firm aims to achieve by adopting the technology. Additionally, the changing organizational needs cannot be addressed without the appropriate feedback.
2.      Lack of Managerial Support
The HR management needs to provide a constant support for the maintenance and the upgrade of the IT System in order to ensure optimal service delivery, hence full exploitation of its benefits.  Lack of support financially or user training time renders the entire planning process futile and headed to failure.
3.      Redundancy of the Technology
The fast pace of the technological advancement in the modern times can easily render the recent technology useless or of little help to the HR planning process. Therefore, it is recommended that the management conduct a wider consultation before committing funds on a technology that will soon become irrelevant. Additionally, there is a need to set aside resources to constantly upgrade the existing technology to reach the modern standards of service delivery, thus saving on the cost of having to fully obtain the latest technology in the market.
4.      Unrealistic Expectations
Due to the inadequate information regarding the new HR planning technology in the market, the management can develop a wrong notion on the capability of the application software. As such, unrealistic expectations can grow among the users. In the end, failure of the system to meet the heightened threshold of the requirements can lead to its total abandonment and disillusion in the future advanced releases. Also, the organizational resources will have gone to waste due to the investment on non-working projects.
Conclusion
In conclusion, it is evident from the above discussion that the adoption of the latest technology in Human Resource offers a significant assistance to the Strategists by improving on the efficiency in the decision-making process while ensuring more information on employees is gathered. However, it is notable that the software users have to undergo rigorous training in order to ensure the full exploitation and tapping into all the benefits that the technology can offer. In so doing, the department is guaranteed on the improvement in the service delivery and the timely fulfillment of the organization's set goals and objectives

References
Boroughs, A., Palmer, L., & Hunter, I. (2012). HR Transformation Technology: Delivering Systems to Support the new HR Model. Aldershot, England: Gower: 6-13.
Dua, Sumeet, Gangopadhyay, Aryya, & Thulasiraman, P. (2012). Information Intelligence, Systems, Technology and Management: 6th International Conference, Icistm 2012, Grenoble, France, March 28-30. Proceedings. Springer-Verlag New York Inc.
In Disselkamp, L. (2013). Workforce Asset Management Book of Knowledge.
Information Resources Management Association (IRMA), & Khosrow-Pour, M. (2014).Information Technology & Organizations: Trends, Issues, Challenges & Solutions. Harrisburg, Pa., U.S.A: Idea Group Pub.
Nasir, S. (2013). Modern Entrepreneurship and E-business Innovations. Hershey, PA: Business Science Reference :79-114.
Niehaus, R. J., Price, K. F., & Human Resource Planning Society. (2013). Bottom Line Results from Strategic Human Resource Planning. New York: Plenum Press.
Ray, R. (2011). Enterprise Resource Planning. New Delhi: TATA McGraw Hill Education.
Torres-Coronas, T., & Arias-Oliva, M. (2009). Encyclopedia of Human resources Informationssystems: Challenges in e-HRM. Hershey: Information Science Reference.

Werner, J. M., & DeSimone, R. L. (2009). Human Resource Development. Mason OH: South-Western Cengage Learning.

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