HR system design and implementation

RIORDAN

HR System Design

Riordan Manufacturing: Determining the needs of the HR system

Riordan Manufacturing's success has been driven by the intelligence and resourcefulness of its employees. Constructing an effective HR system to capitalize upon its human intelligence and resources is essential. Riordan is a globally-based organization, which means that an integrated HR system can be difficult to construct. Using IT to unify HR best practices and philosophy can enable Riordan to thrive and grow.

When determining the needs of the HR system, the overall conception of how HR is to relate to the rest of the organization must be considered. For example, one approach to fostering workplace commitment is a 'commitment-based' model which focuses on team-based activities. The stress in this model is upon "work design, rewards, and appraisal practices [that] signal the importance of shared/team activities" and using the HR system "to share knowledge and distribute information" (Human resource systems and helping in organizations: A relational perspective, 2013, AOM). In such workplaces, the system used by HR must accommodate team-based performance reviews and the training required to foster such teamwork. In more transactional workplaces which emphasize "short-term calculative exchanges leading to identifiable task outputs" IT enables workers to 'check in' to see what rewards they may gain from working overtime or a longstanding duration at the company (Human resource systems and helping in organizations: A relational perspective, 2013, AOM).

Of course, over the course of its lifespan, Riordan may deploy many varieties of performance review and reward systems and HR may need to accommodate a wide variety of strategic needs. The IT system should thus be flexible enough to be able to change with shifts in company policy, yet relatively straightforward and comprehensible to the members of HR, employees, and managers alike when they use it. Still, regardless of the overall approach of the organization in terms of its philosophy to HR, all HR IT infrastructures require certain basic functions and components to perform. At minimum, payroll, employee data, attendance, and other basic functions should be integrated in the design of the system. Particularly since Riordan Manufacturing is such a large corporation, cohesion of these features in a systematic faction is essential, so there is no confusion of how and what overseas employees should be paid and how their work should be valued. For lower-level and hourly workers, in most IT applications, "there are a variety of ways time data can be collected. The easiest is a simple online employee timesheet. The employee simply inputs the hours they worked and submits the information. Some web-based systems act as time clocks where employees log in, clock in for the day, out for lunch, and so on. The third option may involve the actual use of physical time clocks, which integrates with a software application and your HR and Payroll applications" (Simple steps to selecting HR software, 2013, KPA: 3).

Other components of HR which may be integrated into the system include recruitment and training, such as the employee's completion of various steps required for orientation and training. Ideally, allowing for some employee self-management of this component can take some of the burden off of HR, such as giving employees the ability to sign up for classes using an "employee Self-Service (ESS) system. In this case, employees may be able to view training details or enroll in classes online" (Simple steps to selecting HR software, 2013, KPA: 3). Benefits packages should also be employee-accessible to enable employees to easily determine how many vacation and sick days they have, as well as retirement options. "Benefits Open Enrollment products are sometimes included with ESS applications or sold separately. In either case, they provide the basic capabilities. An HR system administrator is able to setup a wizard, which guides employees through the process of enrolling for benefits. Employees will have the ability to see which benefits they are eligible for and what the cost is for each plan" (Simple steps to selecting HR software, 2013, KPA:3).

IT applications that allow for self-management of employee data are also useful for managers. Managers will appreciate the ability to access necessary information about subordinates without dealing directly with HR such as when they are conducting performance reviews or want to see what training programs and certifications the employees have obtained. "Managers and employees have the ability to look up important details on their employees without having to contact HR. This data may include simple demographic detail or include more inclusive time collection, training, attendance, performance management, succession management, and/or payroll information" (Simple steps to selecting HR software, 2013, KPA:3). However, unmediated employee access raises some security concerns. Access must be limited to those who genuinely need the information. Password protection both of the system and work computers can optimize security as it can force employees to both remember and to frequently change their complex passwords.

It should be noted that there may need to be limits to how much employee information is accessible even to individual employees, such as performance review ratings, which should be integrated into the system for ease of use as well. Doing so can "reduce the paperwork associated with reviews. Managers will score employees based on a number of user-determined competencies. Based on the score, the body text under the competency can be automated as well. During the year, goals can be established for each employee. Then, employees and managers can track the success and progression of each goal before, during and after the review process" Simple steps to selecting HR software, 2013, KPA: 5). Automation ensures consistency across all facets of the organization regarding reviews and promotions and reduces the likelihood of accusations of favoritism, given that reviews and goal achievement can be quantifiably tracked.