Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
1
Lecture Outline
Chapter 1: Evolution of Human Resource Management and Human
Resource Information Systems: The Role of Information
Technology
CHAPTER OBJECTIVES
After completing this chapter, you should be able to do the following:
❖ Describe the historical evolution of HRM, including the changing role of the
human resources (HR) professional
❖ Discuss how the developments in HRIS have led to HRM becoming a
strategic partner in organizations and to the emergence of the field of strategic
human resources management (Strategic HRM)
INTRODUCTION
● To maintain a competitive advantage in the marketplace, firms need to balance
the resources available to the firm to achieve the desired results of profitability
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
2
and survival.
● The resources that are available to the firm fall into three general categories:
Historical Evolution of HRM and HRIS
● The evolution of HRM and the development of HRIS are important for the
student in that the caretaker/record-keeping function prior to World War II still is
objectives of the firm.
● See new Figure 1.1 – Historical Evolution of HRM and HRIS.
● HRM in the pre–World War II period
o HRM in the pre–World War II period was only focused on keeping
employee records (having a “caretaker” role), and there were very few
government rules or regulations governing the treatment of people in the
workplace.
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
3
Post–World War II (1945–1960)
● In the post–World War II era, managers realized that employee productivity and
motivation had a significant impact on the profitability of the firm. The human
relations movement after the war emphasized that employees were motivated not
● With its changing and expanding role, the typical personnel department started
keeping increasing numbers and types of employee records, and computer
technology began to emerge as a possible way to store and retrieve employee
information. In some cases in the defense industry, job analysis and classification
Social Issues Era (1963–1980)
● In the “social issues” era, there was an unprecedented increase in the amount
of labor legislation that governed various parts of the employment
relationship, such as prohibition of discriminatory practices, occupational
health and safety, retirement benefits, and tax regulation. As a result, the
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
4
Another factor was the booming economy in most industrialized countries. As
a result, employee trade unions successfully bargained for better employment
Cost-Effectiveness Era (1980 to the Early 1990s)
● In the “cost–effectiveness” era, the functional focus shifted from employee
administration to employee development and involvement. To improve
effectiveness and efficiency in service delivery, through cost reduction and value–
● Even small and medium firms could afford computer-based HR systems that were
run by increasingly user-friendly microcomputers and could be shown to be cost-
● With the growing importance and recognition of people and people management
in contemporary organizations, strategic human resource management
(Strategic HRM) has become critically important in management thinking and
Technological Advancement Era and the Emergence of Strategic HRM (1990 to
Present)
● The economic landscape underwent radical changes throughout the 1990s with
increasing globalization, technological breakthroughs (particularly Internet-
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
5
● Firms today realize that innovative and creative employees who hold the key to
organizational knowledge provide a sustainable competitive advantage because,
unlike other resources, intellectual capital is difficult for competitors to imitate.
Accordingly, the people management function has become strategic in its
● The evolution of strategic HRM: 7 key themes:
o HR contingency perspective and fit: HR strategies are dependent on
business strategies (cost reduction, quality improvement, and innovation)
and business settings (manufacturing, services, public sector, and not for
profit, as well as firm size)
● Another critical characteristic of Strategic HRM is the adoption and use of HR
metrics. Most functional departments of an organization have utilized metrics for
decades due to the nature of their business transactions. For example, the
marketing department has set sales goals, and the effectiveness metric that is used
is the percentage of sales relative to the goal. But for HR, the focus on the
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
6
● The HR Balanced Scorecard seeks to achieve the key HR deliverables
(workforce mindset, technical knowledge, and workforce behavior) by aligning,
HR Activities
HR departments engage in three types of activities, as follows:
● Transactional HR activities involve day-to-day transactions that have to deal
mostly with record keeping—for example, entering payroll information, employee
status changes, and the administration of employee benefits – 65% to 75% of the
time.
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
7
agent. Ulrich, Younger, and Brockbank (2008) stress that, in the 21st century, the HR
organization should function as a business within a business, shifting its focus from
activities to outcomes and capabilities and its structure so that it mirrors that of the
business.
Interface Between HR and Technology
● Technology-driven automation (IT) and the redesign of work processes certainly
help reduce costs and cycle times, as well as improve quality. Information
systems (IS) can further help decision makers to make and implement strategic
A Primer on HRIS
● It is important to note that a company that does not have a computerized system
still has an HRM system; that is, the paper system used to acquire, store,
manipulate, analyze, retrieve, and distribute information regarding an
organization’s human resources.
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
8
● Because of the complexity and data intensiveness of the HRM function, it is one
of the last management functions to be targeted for automation (Bussler & Davis,
E-HRM & HRIS
Confusion can arise concerning the distinction between e-HRM and HRIS. Electronic
human resource management, or e-HRM, reflects a philosophy for the delivery of HR; it
uses information technology, particularly the Web, as the central component of delivering
efficient and effective HR services. Conversely, as conceptualized in this book, an HRIS
comprises the technology and processes underlying this new way of conducting human
Why Do We Need HRIS?
There are several advantages to firms in using HRIS. They include the following:
♦ Providing a comprehensive information picture as a single, comprehensive
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
9
The ability of firms to harness the potential of HRIS depends on a variety of factors,
such as
♦ the size of the organization, with large firms generally reaping greater
benefits;
♦ the amount of top-management support and commitment;
Different Types of HRIS
Although there are multiple typologies for the classification of computer-based systems,
we are going to define the most basic types of systems that are most readily applied to the
HR context and for use within an HRIS. Although there are many ways of categorizing
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
10
Although there are numerous reports that can be generated by a DSS on a regular basis,
the critical question is this: How many of these reports are used by either line managers
or HR professionals in their daily work, particularly in their decision-making capacity?
Transaction Processing System
● Improved transaction speed and accuracy
Management Information System
● Provides key data to managers
Executive Information System
● Provides aggregate, high-level data
Decision Support System
● Interactive and iterative managerial decision-making
Expert System
● Embed human knowledge into information systems
● Automate decisions with technology
Office Automation Systems
● Designing documents
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
11
System Development Process for an HRIS
The formal design of any information processing system is supposed to follow a set of
steps labeled the System Development Life Cycle (SDLC). There is agreement that the
Walker (1982) indicated that development of an effective HRIS should follow seven
stages: Proposal to Management, Needs Analysis, System Specifications, System Design,
System Development, Installation and Conversion, and Evaluation.
Note: The important point is that the SDLC for an HRIS should follow a structured
approach, and this book will cover that approach in detail.
There are two critical points to be emphasized from the various descriptions of the phases
A Model of Organizational Functioning
There are PowerPoint slides for this model. The focus of the model is on the centrality of
Central Themes of the Book
There are some central themes that are emphasized in this book, which can also be seen
Instructor Resource
Kavanagh and Johnson, Human Resource Information Systems: Basics, Applications, and Future Directions, 4e
SAGE Publishing, 2018
12
HRIS. These factors are as follows:
1. The effective alignment between the strategy of the firm, the HR
strategy, and HR programs