Allama Iqbal Open University

ALLAMA IQBAL OPEN UNIVERSITY

BY MISHQAT-UL-ANWAR ROLL NO. 508195106 (3rd SEMESTER) Department of Business Administration

Session (2008-2010) 1

SUBMITTED TO

MA’AM RABIA HANNAN

SUBMITTED BY

MISHQAT-UL-ANWAR

ROLL NO.

508195106

(MBA 3RD SEMESTER)

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ACKNOWLEDGEMENT

No book is the work only of its author. I owe special thanks to aiou who gave us this topic. My special thanks goes to my teacher also who helped us in every problem related to the topic. Thanks are due to my family also who extended their love and support throughout this project. Much praise must be given to my friends Saira and Safia, who not only took pains to go out with me for research work but also gave their precious ideas. Particular thanks are due to my respected teachers who supported me and extended useful advice and encouragement in shaping and developing of this task. I have also collected data about my topic through an internet website www.goole.com. I have found that this website asks the user to enter the data or required questions in the toolbar and tells the user about all kinds of answers about every topic. I am indebted to all of them. (Author)

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• What is System • What is Information System? •

• • • • • • •

• • •

What is Human Resource? Human Resource Information System (HRIS) Human Resource Basic Features. Automate Benefits. Employee self-service. Set Permission. Reporting. Tracking. HRIS Considerations. CASE STUDY ON SUPREME BROOKE BOND Recommendations.

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Executive Summary Information System is a combination of hardware, software and infrastructure and trained personnel organized to facilitate planning, control, coordination and decision making. A humanresource information system refers to the systems and processes at the intersection between human resource management (HRM) and information technology. Human Resources departments across all industries are realizing the benefits of adding business intelligence to their existing operational tools. Like payroll systems benefits systems time entry systems etc. HRIS basic features are automate benefits, employee self-service, set permission, reporting, Tracking. I have selected Supreme Brooke Bond as a case-study, in which I found the function of Human Resources

departments of BROOKE BOND is generally administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Efficient and

effective management of "Human Capital" has progressed to an increasingly imperative and complex process. The HR function consists of tracking existing employee data which traditionally includes personal histories, skills, capabilities, accomplishments and salary. Also I have given some recommendation at the end of the report. 6

What is System? way of proceeding: a method or set of procedures for achieving something

WHAT IS INFORMATION SYSTEM? Combination of

HARDWARE

SOFTWARE

INFRASTRUCTURE

And trained

Personnel organize d 7

To facilitate Planning

Control

Coordination

Decision Making

• Information System Defined in Business Dictionary The term information system refers to information technology that is used by people to accomplish a specified organizational or individual objective. The technology may be used in the gathering, processing, storing, and/or dissemination of information, and the users are trained in the use of that technology, as well as in the procedures to be followed in doing so. The specific technologies that collectively comprise information technology are computer technology and data communications technology. Computers provide most of the storage and processing capabilities, while data communications—specifically networks—provide the means for dissemination and remote access of information. Advances in computer hardware, software, and networking technologies have spurred an evolution in the

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structure, design, and use of corporate information systems.

What is Human Resource? Human resources is a term used to refer to how people are managed by organizations. The field has moved from a traditionally administrative function to a strategic one that recognizes the link between talented and engaged people and organizational success. The field draws upon concepts developed in Industrial/Organizational Psychology and System Theory.

What is Human Resource Information System? A Human Resource Management System (HRMS, EHRMS), Human Resource Information System (HRIS), HR Technology or also called HR modules, refers to the systems and processes at the intersection between human resource management (HRM) and information technology. It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software. On the whole, these ERP systems have their origin on software that integrates information from different applications 9

into one universal database. The linkage of its financial and human resource modules through one database is the most important distinction to the individually and proprietary developed predecessors, which makes this software application both rigid and flexible.

Human Resources departments across all industries are realizing the benefits of adding business intelligence to their existing operational tools (payroll systems, benefits systems, time entry systems, etc.). Business intelligence allows HR professionals to better leverage their organization's operational data to ensure compliance with government regulations, provide improved service to the employee base and more effectively manage all matters related to human resources. The MicroStrategy platform is not only ideal for reporting and analyzing detailed human resources information with complete security and confidentiality, but it also enables advanced and statistical data analysis, as well as alerting. With a MicroStrategy human resources application, everyone in the organization can take advantage of reports and analytics. Employees can view and manage their personal information, such as time-off requests, benefits selection and address updates. Managers are just clicks away from analyzing employee performance and ensuring parity of titles, salaries and skill levels. Vice presidents can monitor the salary ranges of prospective candidates. Finance managers can receive alerts of their choosing, such as when a high salary is entered into the 10

payroll system. HR professionals ensure labor law compliance and study ways to improve operational efficiency.

HR Information Systems (HRIS) With an HR information system (HRIS), you can provide a comprehensive management system for all of your organization’s human resources activities. This software is especially helpful for small and mid-sized businesses that want to streamline their administrative functions, manage employee benefits, reduce paper-based documentation, and track all employee data.

HRIS basic features The advantage to HRIS is the way it helps you to automate many administrative responsibilities in a central location. Here are the key features to look for in an HRIS solution: Automate benefits: HRIS provides benefit management for your HR personnel and staff. You can import payroll and benefits data from different sources and make revisions at any point in time. Depending on the software, you may also be able to manage the entire hiring process from recruitment to sending compensation packages. Employee self-service: Employees can get instant access to their information through HRIS. They can complete online forms and get critical information about their benefits. With a unique 11

log in ID/password combination, each employee can check vacation balances, update personal information, and make life-event changes, all without having to talk to a live person. Set permissions: You don’t have to provide employees with complete access. HR managers that will administer the software can control which screens employees can see and what data they will be allowed to alter. You can also view changes that were made and revert back to the original data if necessary. Reporting: As with any valuable software program, you can get detailed reports for your business. With standard report templates, you can manage the paperwork for employee reviews, OSHA regulations, and employment history. You can create advanced reports based on your customization with specific categories and data that can help you better manage your business. Tracking: HRIS allows you to track every employee’s accrued sick time, vacation balance, and tenure so you always have accurate data. It can also manage long-term absences based on the Family Leave Act or because of a serious injury. If an employee files a grievance or receives a warning, you can manage what the next steps should be.

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HRIS considerations Before purchasing an HRIS solution, make sure you learn exactly what it can offer your business: How many employees can it support? •

Can I upgrade to include additional employees as my business grows? •

•

What will my total costs be?

Are there additional charges I should keep in mind? •

Will the HRIS solution allow me to import current data from other software programs? •

Is there an HRIS provider that has experience working with similar businesses? •

Can I try out a demo version of the software before buying? •

Is this software compatible with both PC and Macintosh environments? •

What kind of in-house IT experience will I need to maintain the system? •

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Can I get full training for my staff? •

Will I be able to get updates as they become available? •

Supreme

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History of Supreme Brooke Bond

Brooke Bond is a brand-name of tea owned by Unilever, formerly an independent manufacturer in the United Kingdom, known for its PG Tips brand and its Brooke Bond tea cards. Brooke Bond & Company was founded by Arthur Brooke who was born at 6 George Street, Ashton under Lyne, Lancashire, England in 1845. He opened his first Tea Shop in 1869 at 23 Market Street, Piccadilly, Manchester, Lancashire. There was never a "Mr Bond"; Arthur Brooke chose the name simply because it sounded pleasing to his ears. In the 1950s and 1960s, packets of Brooke Bond tea included illustrated tea cards, usually 50 in a series, which were collected by many children. One of the most famous illustrators of these cards was Charles Tunnicliffe, the internationally acclaimed bird painter. Most of the initial series were wildlife-based, including 'British Wild Animals', 'British Wild Flowers', 'African Wild Life', 'Asian Wild Life', and 'Tropical Birds'. From the late 1960s, they included historical subjects, such as 'British Costume', 'History of the Motor Car', and 'Famous Britons'. Complete sets and albums in good condition are now highly sought-after collectors' items. The inclusion of these cards in packets of tea ceased in 1999. The most famous brand of Brooke Bond was PG Tips, launched in 1930. The company merged with Liebig in 1968, becoming Brooke Bond Liebig, which was acquired 15

by Unilever in 1984. The Brooke Bond name has since been dropped for all external communication by Unilever in the UK. However Gold Crown Foods Ltd is licensed by Unilever to use the Brooke Bond name for the Brooke Bond 'D' and Brooke Bond Choicest brands.[1] The Brooke Bond brand is still used in other countries, especially in India. In Pakistan, Brooke Bond Supreme is the number-one-selling tea brand. Unilever markets it as a being stronger than its Lipton Yellow Label blend. The Brooke Bond factory is at Trafford Park in Manchester, although this is separate from Gold Crown Food's factory in Liverpool.

HUMAN RESOURCE INFORMATION SYSTEM OF BROOKE BOND 16

The function of Human Resources departments of BROOKE BOND is generally administrative and common to all organizations. Organizations may have formalized selection, evaluation, and payroll processes. Efficient and effective management of

"Human Capital" has progressed to an

increasingly imperative and complex process. The HR function consists of tracking existing employee data which traditionally includes personal histories, skills, capabilities, accomplishments and salary. To reduce the manual workload of these administrative activities, organizations began to electronically automate many of these processes by introducing specialized Human Resource Management Systems. HR executives rely on internal or external IT professionals to develop and maintain an integrated HRMS. Before the

"client-server" architecture evolved in the late 1980s, many HR automation processes were relegated to mainframe computers that could handle large amounts of data transactions. In consequence of the high capital investment necessary to purchase or program proprietary software, these internally-developed HRMS were limited to organizations that possessed a large amount of capital. The advent of client-server,

Application Service Provider, and Software as 17

a Service or SaaS Human Resource Management Systems enabled increasingly higher administrative control of such systems. Currently Human Resource Management Systems encompass: 1. Payroll 2. Work Time 3. Benefits Administration 4. HR management Information system 5. Recruiting

Training/Learning Management System 7. Performance Record 6.

The payroll module automates the pay process by gathering data on employee time and attendance, calculating various deductions and taxes, and generating periodic pay cheques and employee tax reports. Data is generally fed from the human resources and time keeping modules to calculate automatic deposit and manual cheque writing capabilities. This module can encompass all employee-related transactions as well as integrate with existing financial management systems. The work time gathers standardized time and work related efforts. The most advanced modules provide broad flexibility in data collection methods, labor distribution capabilities and data analysis features. Cost analysis and efficiency metrics are the primary functions.

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The benefits administration module provides a system for organizations to administer and track employee participation in benefits programs. These typically encompass insurance, compensation, profit sharing and retirement. The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records and other related activities. Leading edge systems provide the ability to "read" applications and enter relevant data to applicable database fields, notify employers and provide position management and position control. Human resource management function involves the recruitment, placement, evaluation, compensation and development of the employees of an organization. Initially, businesses used computer based information systems to: • • •

produce pay checks and payroll reports; maintain personnel records; pursue Talent Management.

Online recruiting has become one of the primary methods employed by HR departments to garner potential candidates for available positions within an organization. Talent Management systems typically encompass:

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•

• • •

analyzing personnel usage within an organization; identifying potential applicants; recruiting through company-facing listings; recruiting through online recruiting sites or publications that market to both recruiters and applicants.

The significant cost incurred in maintaining an organized recruitment effort, cross-posting within and across general or industry-specific job boards and maintaining a competitive exposure of availabilities has given rise to the development of a dedicated Applicant Tracking System, or 'ATS', module.

The training module provides a system for organizations to administer and track employee training and development efforts. The system, normally called a Learning Management

System if a stand alone product, allows HR to

track education, qualifications and skills of the employees, as well as outlining what training courses, books, CDs, web based learning or materials are available to develop which skills. Courses can then be offered in date specific sessions, with delegates and training resources being mapped and managed within the same

system. Sophisticated LMS allow managers to approve training, budgets and calendars alongside performance management and appraisal metrics. 20

Many organizations have gone beyond the traditional functions and developed human resource management information systems, which support recruitment, selection, hiring, job placement, performance appraisals, employee benefit analysis, health, safety and security, while others integrate an outsourced Applicant

Tracking System that encompasses a subset of the above.

HRIS in Brooke Bond Supreme Functions may include: •

HR (hiring)

•

Payroll

•

Tax Filing

•

Scheduler

•

Timekeeper

•

Accruals

•

Activities

•

Attendance

•

Leave

•

Record Manager (employee overview)

•

Employee (access)

•

Manager (access)

These last two features are access to the database for both employees and managers. Employees can access information on insurance issues, personal insurance 21

coverage, payroll records, vacation or time off available, work schedules and so on. Managers can file work schedules and departmental or employee reports as required regarding personnel activities. The interactive features of most HRIM systems are strong selling points as they take the need for personal counseling on each employee question or issue out of management's daily responsibilities. Human resources information can be put into database forms that provide management information. Some management decisions regarding worker productivity and streamlining operations can be aided with data developed through HRIM.

Recommendations: I note these analytical tools that Supreme Brooke Bond HRIS software data can generate: Effective workforce deployment to meet quality, cost, and customer satisfaction goals •

•

Labor cost control

•

Government regulation compliance

Employee recruiting, development, and retention •

Statistics in these categories matched against industry norms can provide valuable benchmarks for decisions on operational changes. Many of the 22

software firms that provide the basic packages providing the record keeping categories listed above will provide sophisticated analytical modules as options sold separately. Human resources management software can be a helpful tool for the employee and for mid-level management staff. Software implementation and the impact on employee's daily routines need to be handled carefully. Many software companies provide company-wide briefings as part of the product sale.

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