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THEORY I MANAGEMENT

Issue - 01/03/2013
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   Home >> THEORY I MANAGEMENT >> Case Study >> E-NABLED HR MANAGEMENT
   Case Study
 
E-NABLED HR MANAGEMENT
The case discusses the pitfalls in adopting an e-HR system without prior legwork and without taking all stakeholders into confidence.
K.K. Srivastava, | Issue Date - 01/03/2013

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The Blackberry buzzed again. Meera knew it was her son, Akshat, calling. She had promised him that they would go out for the latest Harry Potter movie and then have a nice dinner at McDonald’s. But there she was on a Saturday afternoon in the office polishing her presentation due on Monday before the review meeting. She picked up the phone and told her darling that they would go for an evening show, rather than 4 pm one. But there were still a lot of loose ends to tie up. And she definitely did not wish to travel from Delhi, her home, all the way to Gurgaon, the office, covering a distance of 43 kms one way on a Sunday.
 
And then she pinched herself. Why did she have to finish the presentation sitting at the office desk? Now that all the information she would need to craft the presentation was available on a server, she could very well sit at home and work. Silly me, she called aloud. And the next moment started humming her favourite song from the latest movie that she had seen on her Bose System recently. She was out of the office in next one hour. She should be able to keep her date with Harry Potter at 4, after all. As GM-HR, Meera headed the taskforce for setting up the Human Resource Information System (HRIS), alongwith the GM Information Systems. A year ago the taskforce was set up to convert  the HR systems of Onward Technologies into eHRM systems. And this Monday Meera was expected to defend the project and ask for its further expansion.
 
She was in fact quite satisfied with the progress. While finishing her presentation on Sunday she was somewhat surprised herself when she did an audit of the work done during the last twelve months. She was very sure she would receive a lot of compliments for the initiative and the progress made.
 
So here she was on the Monday morning, 11 am, all ready with her PowerPoint slides and well rehearsed ‘speech’. For one last time she self suggested to herself she must impress all those present in the conference room, since without their complete buy in, the project would not move ahead. With a confident gait she began:
 
“Over the last few years technology has touched almost every aspect of Human Resources- from employee benefits to online testing and recruiting, from recording time and attendance to administering complex pay roll runs. At a practical level, HRM systems alongwith other systems in the organisation are changing the way HR professionals work in a modern enterprise.
 
Today’s companies are simply too diverse in terms of their offerings and global reach, and so they cannot operate under a common set of HR programs. Alongwith business diversity also comes a bewildering array of new benefits and plans, training and development needs, union agreements, flexible compensation packages, competency management, and performance management issues. Automation of HR functions like payroll systems, started long ago with the express intent to cut costs. Today, with HR turning into a strategic function, many more sub facets of HR are turning for help towards technology. Companies are facing increasingly complex issues ranging from multinational sourcing to creating variable performance based salaries.
 
The new millennium has heralded a new set of ethos that insist on companies working smarter, more efficiently, and productively. The need to hire and retain the best talent has forced organisations across industries to redesign their business processes and work efficiently. Inevitably, it becomes incumbent for HR too to keep pace with the change, and proactively cater to the needs of the newly minted and demanding workforce and workplace.
 
Advances in technology also raise the expectations of the workforce in terms of the response time of HR processes. HR professionals are still caught up in routine administrative activities and find it difficult to take up more value added, strategic roles to impact business directly. HR department has to answer several questions, viz., how to keep a workforce of hundreds to lakhs across multiple locations connected; how to build a community that bonds on a common thread of culture and values; how to provide a reliable and safe communication forum for virtual teams; how to ensure that HR professionals focus on strategic issues; and many others. (Figure-1)
 
The challenge before our company- and for HR department in particular- lay in converging information, applications, technology, resources, and manpower together to create systems that could contribute towards attainment of organisational goals. We needed to devise and implement a step by step approach to marry HRM with enabling and facilitating technology initiatives, so as to enhance the productivity of human resources.  The new system could then be deployed for recruitment, selection, training and development, performance appraisal, reward system, designing of suitable organisaional structure and strategies, industrial relations and conflict resolution, and management control.
 
We needed to implement application oriented programs like HR portal, ERP systems, employee self service systems, etc. There was also a need to identify key success factors required to adopt technological platform successfully for smooth HR functioning such as training, integration, and testing of HR applications, data conversion into accessible formats, alleviation of technology phobia, and buy in and involvement of everyone.
 
We opted for the ERP module on HR from SAP. It was designed and built to work in harmony with a single set of database that put together all areas of business, including manufacturing, purchasing, logistics, finance, and of course HR. This system created a strong backbone of an integrated database which could be exploited and leveraged for varied applications.
 
Employee Self Service (ESS) and HR portal presuppose the existence of such a database. While the ERP module streamlined HR operations, integrated all the processes and functions across the organisation, the ESS/HR portal created a single gateway to customised and personalized information on one hand and worked as a tool to bring together company’s vision and plans to the employees on the other. Our HR portal brings together information both from which the organisation and outside the enterprise. This facilitated knowledge management, organisational learning, and distance learning.
 
Briefly put we created an HRIS (Human Resource Information System) which consisted of four subsystems: an executive support system (ESS) at the strategy level, a management information system (MIS) benefiting middle managers, a decision support system (DSS) for professionals and staff managers, and transaction processing system (TPS) at the operational level. The slide that you are seeing on the screen now gives you a brief idea of the input output relationships originating from these systems. (Fig 2)
 
So how have we gained as an organisation?
Well, the investment made in setting up the HRIS has been more than repaid in the past year. We have reaped a number of benefits. To give you a few illustrative examples, now the new inductees get to know about the organisation, its policies, and various benefits available to them, etc at the click of a mouse. The employees have ready access to their leave records, attendance details, training calenders, etc. Second, the office saves cost through reduced use of paper. Even telephone bills have come down. But more importantly, now we are able to save our time and devote it instead to perform more productive work. Third, even the employees can now respond to organisational needs faster. Thus, the last time when the vacancy for a systems integrator arose, the final selection was made from our existing workforce itself, since the finally selected candidate had internally posted his resume online. Now, the employees apply for attendance at training programs also online. Fourth, updating of information like transfers, change in HR policies, etc is being done now in real time and is communicated to all concerned instantaneously. Fifth, employees’ queries and grievances are being attended to promptly through the HR portal. Besides, the information on these issues, if it concerns others too, is made accessible to others also within Onward Technologies. Sixth, now the system helps us in analysing cost and other implications of certain HR related changes, like a salary hike, in double quick time. Seventh, now the department constantly audits the workflow and streamlines it as per the altered priorities. Eight, through dissemination of information about best practices, training opportunities, and even actual training modules online, integration of technology and HR has helped in furthering the cause of people development. And, finally, all this knowledge base and its analysis has helped us in avoiding mistakes of the past, and prepare better for future.
 
Briefly put, we have been able to create a lean, innovative, responsive, customer focused corporate culture. We have improved our service delivery, streamlined operations, reduced costs, and improved retention and productivity. And we have made HR a strategic member and business partner, thereby aligning HR with the overall business strategy of the enterprise.”
 
Having taken the audience through her slide show, Meera knew it was time to sit down and expect a round of applause. “Thank you everyone for hearing me out so patiently.”
 
Her heart however skipped a beat when through the corner of her eyes she could see Sunil gesturing to speak. ‘Here goes Mr. Sceptic with the harangue punching holes into my arguments’, She thought. And she was not disappointed by him. Sunil started off: “But the information I find on the system is not up-to-date. For example, I could not find my updated leave record. Besides, I feel that we have overloaded the system with excessive and irrelevant details. After all, what is the need for putting up information about training programmes conducted in foreign locales when no one will apply for them without organisational nomination anyway?”
 
Vishu, The technology head, as if waiting for someone to begin, immediately added: “You guys at HR expect us to setup, run, and develop the HRIS further. But I have a strong suspicion that you are somewhat unclear about HRIS requirements in terms of conceiving, recording, organising, and prioritising the information. How do you expect my IT team to help you?”
 
And now how could Mridu, the DGM personnel, let go of an opportunity to confront Vishu?! The hostility between Vishu and Mridu was an ill kept secret at Onward. She remarked snidely: “Vishu, the system should be user friendly, which we feel it is not. Besides, when we started using it, we made a number of suggestions towards enhancing its utility. Unfortunately, we find that the technical support needed for effecting these changes is still lacking”.
 
Ravi, the quintessential peace broker in the company decided to interject: “ Perhaps it would have been a good idea to introduce the system module in a phased and unhurried manner. This way we could have showcased the advantages and relevance of initial modules before the employees. And their enthusiasm and acceptance to embrace the system would have gone up.
 
Reema, marketing controller, too now decided to contribute her bit: “While I wholeheartedly appreciate the effort, let me say that currently many modules exist on standalone basis. Instead, if they were integrated, we would derive greater mileage. For example, if fresh recruitment is to take place, the module should be linked with the skills appraisal module so that first an internal search is carried out to find a suitable candidate.”
 
Kuber, Mr. Penny Pincher, the finance controller, fired the last salvo: ‘All this talk of improvements in productivity, reduction in cost, and so on is fine. But I understand the language of numbers. Have you done a reality check? Do you have some kind of audited figures as to what has been the gain to the organisation in terms of green bucks? I am afraid that without concrete numbers I find your claims to be absolutely unsustainable and reliable.”
 
And the comments kept on coming back and forth. Meera by now was dismayed. Now she was not so sure that there was enough appreciation of the work she, alongwith her taskforce, had accomplished during the last year. And without a complete buy in, it would be difficult to convince all these people to support her. A lot of homework, she realized, still needed to be done. The system needed a lot of fine-tuning, not only in terms of its hardware but also in terms of the supporting software. Or, was it a drastic overhaul that was required?.
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