Johnson, Human Resource Information Systems, 5e
SAGE Publishing, 2021
Case Notes
Chapter 6: Cost-Justifying HRIS Investments
Justifying HRIS for Investment Associates, Inc.
Case Summary
This case focuses on Investment Associates, Inc.—a company that is in need of a more
robust HRIS system to keep track of and automate records. The company owner, Jim,
enlists the help of Sylvia to create a case to justify the need for the HRIS system.
Case Analysis
This case showcases the importance of the need to justify the cost of HRIS investments.
Accurately identifying and estimating the value of the benefits and costs of new HRIS
functionality will play a critical role in HRIS investment decisions in the foreseeable future. A
renewed interest in detailed investment analysis is healthy and should be embraced by analysts
Sample Answers to Case Questions
1. What approaches to justifying this investment might Sylvia consider?
Most importantly, one could easily show that the time needed to complete
complex state and federal reports would be greatly decreased, thus allowing
Sylvia to spend time on other HR programs (e.g., employee training programs).
2. What are some of the costs and benefits involved in this investment in an HRIS?
Which would you be sure to include in your BCA of this project, and why?
Johnson, Human Resource Information Systems, 5e
SAGE Publishing, 2021
Costs include installation support, software fee/license, software support,
3. Explain how to estimate costs and benefits, both direct and indirect, in terms that Jim
will understand. (Remember, Jim always has his eye on the “bottom line.”)
One could complete this matrix in Figure 7.1 using the information available in
the IA company to show Jim this systematic approach. One could also refer to the
4. Explain how to calculate a CBA to justify the HRIS project. Would you use cost
reduction or organizational enhancement (or both) as a strategy for justifying the
purchase?
Both approaches should be used. If part of the company’s strategic plan was to
improve customer service, this benefit could be directly tied to the HRIS by