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Human Resource Systems
1
Human Resource Systems
What Do Managers Do?
Managers Get Things Done Through People
2
Human Resource System
What Is An Organization?
• Consciously Coordinated Social Unit
• Functions On A Continuous Basis To
Achieve A Common Goal
3
Human Resource Systems
What Are Management Functions ?
Henri Foyal’s:
• Plan
• Organize
• Command
• Control
• Coordinate
4
Human Resource Systems
In The 21st
Century:
• Planning
• Organizing
• Leading
• Controlling
5
Human Resource Systems
To Plan:
• Organization Goals
• Establish Overall Strategy To Achieve
These Goals
• Developing A Comprehensive Set Of Plans
To Integrate And Coordinate Activities
6
Human Resource Systems
To Organize:
• What Tasks To Be Done
• Who Is To Do Them
• How Tasks Are To Be Grouped
• Who Reports To Whom
• What Decisions Are To Be Made
7
Human Resource Systems
To Lead:
• Motivate
• Direct The Activities
• Select The Most Communicative Channel
• Resolve Conflicts
8
Human Resource Systems
To Control:
• Monitor Organizational Performance
9
Human Resource Systems
Why Do We Need Management
• Speed Of Change – Technological
Developments To Competitive Strategies
• Forces That Affect Organizational
Performances – Government Actions,
Expectations Of Employees Are Complex.
10
Human Resource Systems
(In lighter sense…)
Put Employees Into a room with only a table and
two chairs. Leave them without any instruction
and check back on them in two hours.
If they have taken the table apart...
...assign them to engineering.
* If they are counting butts in the ashtray...
...put them in finance.
11
Human Resource Engineering
• If they are talking to the chairs...
• ...assign them to personnel*
• If they are sleeping...
• ...they are management material.
12
Human Resource Systems
• * If they do not notice when you walk in...
• ...place them in security.
*
• * If they Leave Early..
Put them In Sales
13
Human Resource Systems…on a
serious note
Ten Specific Managerial Roles
• Grouped Under Three Primary Activity
Centers –
1.Interpersonal
2.Informational
3.Decisional
14
Figure Head
Leader
Liaison
Human Resource Systems
Interpersonal Role
15
Informational Roles
• Monitor
• Disseminator
• Spokes Person
16
Human Resources Sysytems
Decisional Roles
• Entrepreneur
• Disturbance Handler
• Resource Allocate
• Negotiator
17
Human Resource Systems
Henri Fayol – Focus On Managers’ Job
Organizational Functions Were Included
- Purchasing Planning
- Production Organizing
- Sales Directing
- Finance Coordinating
- Accounting Control
- Administration
18
Human Resource Systems
• 20th
Century Concept
• Federick Taylor pioneered “Scientific
Management Movement – Observation of People
Through Time And Motion Study, Importance To
Task
• Lillian Gilbreth – Analysis And Synthesis On The
Basis Of Goal Setting
• Henri Fayol – Administrative Principles –
Elevation Of Management From Shop floor To
The Entire Organization
19
Human Resource Systems
• Max Weber’s – Bureaucracy Theory
• The Great Depression Led To Behavioral
Approaches
• Elton Mayo’s Hawthorne Studies At
Western Electric
• Humanistic Psychology – Abraham
Maslow, Douglas Mcgregor
20
Human Resource Systems
• Mary Parker Follet – Administrative
Behavior – Reciprocal Nature Of Power,
Power As An Agent Of Change
• The Contingency Perspective – “It All
Depends on Situation”.
21
Human Resource Systems
Social Sciences
- Psychology
- Sociology
- Social Psychology
- Political Sciences
- Anthropology
22
Human Resource Systems
Management Is The Practice Of Directing,
Organizing, And Developing People,
Technology, And Financial Resources In
Task Oriented Systems That Provide
Product And Services To Others.
23
Human Resource Systems
Links With Organizational Strategy – How?
• A Major Airline Implements The Purchase
Decision Of Buying Four New Airbus
A380s – 600 and 800 Seat Super Jumbo
Aircraft.
• This Aircraft Is A Flying Palace Spacious
Enough To Feature Sleeping Quarters,
Shops, Exercise Rooms.
24
Human Resource Systems
What Are The Major HR Implications?
25
Human Resource Systems
• The Most Experienced Captains With The
Airline Will Need Training
• Training Needs Through Out The Cockpit
Ranks – First Officers, Flight Engineers…
• Cabin Attendants Will Need To Undergo
Training In Safety Features And Service
26
Human Resource Systems
• Maintenance Mechanics Will Need
Training In Routine And Special Servicing
Of The Airplane
• Purchasing Agents – Different Parts And
Supplies Will Need To Be Ordered
• Construction Will Need To Be Undertaken
To Alter Airport Gates
27
Human Resource Systems
• Marketing Representatives Will Need To
Know The Airplane’s Special Features To
Promote Travel On It.
28
Human Resource Systems
All this….
A Seemingly Straight Forward Decision To
Purchase A New Aircraft, A Decision
Based On Business Projections!!!
29
Human Resource Systems
Strategy:
• Corporate Strategy – Several Businesses
• Business Strategy – Competitive Positions
• Functional Strategy - Departments
30
Human Resource Systems
Strategic Planning Process – SWOT
Basic Strategic Trends:
• Globalization
• Technological Changes
• Diverse Work Force
• Nature Of Work
31
Human Resource Systems
Managerial Consequences:
• Global Expansion
• Improved Competitiveness
• Organizational Changes – Flat
• Knowledge Management
32
Human Resource Systems
Strategic Decisions Impact On HR
• Add New Type Of Equipment Training
• Acquisition Selection (From
Acquired Firm),
Training,
Compensation,
Outplacement
33
Human Resource Systems
Strategic Decisions Impact On HR
• Pursue Competitive Strategy Compensation, Labor
Relations, Training
• Expand Markets Selection, Training,
Compensation
• Relocation Of Factory Transfer, Recruitment,
Selection, Training
34
Human Resource Systems
HR Strategic Role:
• Ensuring Competitive Advantage
• Shift From Protector And Screener To
Strategic Partner And Change Agent
• Metamorphosis From Personnel To Human
Resource Management
35
Human Resource Systems
Role Of HR:
• Environmental Scanning
• Providing Of Competitive Intelligence
• Providing Of Internal Strengths
36
Human Resource Strategy
Future….
• Corporate Reorganizations
- Loss Of Job, Pay, Benefits
- Job Changes
- Transfer To A New Geographic
Location
- Changes In Career Growth
37
Human Resource Systems
Steps Before Making A HR Score Card:
• Emerges From The Balance Score Card
- Attempts To Collate Measures From
Four Areas – Financial, Internal Business
Process, Customer, Learning And Growth
(Objectives, Measures, Targets, Initiatives)
38
Human Resource Systems
HR Score Card:
• Understanding The Reason For
Implementing The HR Score Card
39
Human Resource Systems
• HR Outcomes Measure The Focus On
Business Outcomes
• Operational HR Metrics That Focus On
Efficiencies
40
Human Resource Systems
• Understanding The Business Context Of
HR – What Are The Value Drivers OF
Business Units?
• What Is HR Value Proposition To The
Business
• Where Is HR Contribution Recognized –
By Senior Management, The Line,
Employees, HR Itself, Investors?
41
Human Resource Systems
• What Does The HR Function Currently
Measure?
• Are The Metrics Activity Driven Or Value
Driven?
42
Human Resource Systems
Defining HR Value:
- The Value Of The HR Function As A
Whole
- The Value Of HR Processes As Practiced
Throughout The Organization –
Performance Management And The Fit
With Culture, Structure And Strategy
43
Human Resource Systems
Defining HR Value:
• Selecting The Relevant Measures And
Metrics
• Maintaining A HR Score Card Frame Work
44
Human Resource Systems
Now HR Score Card:
• Business Context
Two Influences On HR Effectiveness:
- External Influences – The Company’s
Current Operating Environment
- Internal Influences – How The Business
Perceives HR Capability
45
Human Resource Systems
Current HR Objectives:
Resources, Performance Management,
Training, And Development, Reward,
Employee Relations – Areas Where
Measurement Is Required
46
Human Resource Systems
Evolve Appropriate HR Metrics
47
Human Resource Systems
Score Card Design Frame Work:
• Financial
• Process
• Internal Customer Focus
• People/Human Capital Management
48
Human Resource Systems
Financial Value:
- HR Management Budget/Spend
- HR Development Budget/Spend
- Sales Per Employee
- Revenue Per Employee
49
Human Resource System
Internal Customer:
- Training
- Self Learning
- Ration Of E –Learning Modules To
Traditional Training Modules
50
Human Resource Systems
Human Capital Intervention (Focus And
People)
- Training Days Delivered
- Training Needs/ Analysis
- Performance Management
51
Human Resource Systems
Human Capital Management
- Absenteeism Ration
- Headcount
- Staff Turnover
- Employee Commitment
52
Human Resource Systems
HR Planning:
• What Positions To Fill
• How To Fill Those Positions
53
Human Resource Systems
HR Planning:
To Forecast:
• Personnel Needs
• The Supply Of Internal Candidates
• The Supply Of External Candidates
54
Human Resource Systems
How To Forecast Personnel Needs ?
• Forecast Future Revenue
• Estimate The Size Of Staff To Achieve This
Revenue
• Projected Turnover Of Manpower
• Quality And Skills Based On Changing
Needs Of The Organization
55
Human Resource Systems
• Strategic Decisions
• Technological Changes
• Financial Resources Available
56
Human Resource Systems
To Predict Employment Needs:
• Trend Analysis
• Ratio Analysis
• The Scatter Plot
57
Human Resource Systems
Job Analysis:
Procedure To Determine
• Duties Of Positions
• Characteristics Of People To Satisfy These
Positions
- Job Descriptions
- Job Specifications
58
Human Resource Systems
Job Analysis:
• Work Activities
• Human Behaviors
• Machine Tools, Equipments
• Performance Standards
• Job Context
• Human Requirements
59
Human Resource Systems
Uses Of Job Analysis:
• Recruitment And Selection
• Compensation
• Performance Appraisal
• Training
• Discovering Unassigned Duties
60
Performance Appraisal
Why Job Analysis?
• Globalization
• Flatter Organizations
• Reengineering
• High Performance Insight
61
Human Resource Systems
Which Are The Types Of Jobs To Be
Analyzed ?
• Jobs Which Are Critical To The
Organization
• Jobs Which Are Difficult To Learn And
Perform
• Legal Factors
62
Human Resource Systems
Types Of Job Data:
• Foundation Work Activities – (Basic )
Amount Of Responsibility
• Intermediate Work Content – (Some
Technological Content) – How Much Of
Time Is Spent On Teaching People?
• Area Work Activities – Technologically
Oriented Specific To Work Activities
63
Human Resource Systems
Steps In Job Analysis:
• How Will The Information Be Used?
• Review Relevant Background Information
• Select Representative Positions
• Actually Analyze The Job
• Verify The Information
• Develop A Job Description And Specification
64
Human Resource Systems
Methods Of Collecting Job Analysis
Information:
• Qualitative
• Quantitative
65
Human Resource Systems
Qualitative Methods:
• Interview – Individual, Supervisor, Group
66
Human Resource Systems
Interview Method – Typical Questions:
• What Is The Job Being Performed?
• What Are The Major Duties?
• What Exactly You Do?
• What Physical Conditions Do You Work
In?
• In What Activities Do You Participate?
67
Human Resource Systems
Interview Method:
• Detailed Checklists
• Interview Guidelines
Questionnaire Method:
Observation Method
Participant Diary/Logs
68
Human Resource Systems
Recruitment
The Process Of Organizations Locate And
Attract Individuals To Fill Job Vacancies
69
Human Resource Systems
Recruitment Process:
• Vacant/New Position Occurs
• Perform Job Analysis And Plan Recruiting Effort
• Generate Applicant Pool – Internal/External
• Evaluate Applicants
• Impress Applicants
• Make Offer
70
Human Resource Systems
Strategic Issues In Recruiting:
• Match With Organizational Values
• State Of External Labor Market
• Firm’s Ability To Pay
• Attract Talent
71
Human Resource Systems
Recruitment Goals:
• To Attract Large Pool Of Applicants
• Attract High Proportion Of Well Qualified
Candidates Who Are Interested In
Accepting Offers
• Post Hiring Goals – Retention, Spill Over
Effect
72
Human Resource Systems
Recruitment Philosophy
• Whether Internal/External Recruitment
• Merely Filling Up Vacancies/Hire For Long
Term Careers
• Depth Of Commitment To Hiring A
Diverse Range Of Employees
• Marketing Orientation
• Ethical Overtones
73
Human Resource Systems
How To Attract Applicants:
• By Changing Nature Of Inducements
• Target Labor Pools
• Sponsor Immigration
• Mergers And Acquisitions
• Employee Leasing
74
Human Resource Systems
Internal Recruitment:
• Job Posting And Bidding
• Consulting Of Replacement Charts
• Nominating Committees
• Managerial Succession Planning
75
Human Resource Systems
External Recruiting:
• About The Position To Be Filled
• Job Specification Sheet
• Recruiter Must Identify What Will Attract
The Candidate
76
Human Resource Systems
Planning For External Recruiting:
Factors Which Are Time Consuming:
• The Need For Confidential Search
• A Technically Complex Position
• Competition In The Market Place
• A Poor Industry/Company/Division Reputation
• Low Pay
• Unclear Job Description
• An Undesirable Location
77
Human Resource Systems
External Recruitment:
• Informal Methods – Employee Referrals
• Formal Methods - Advertisements
• Internet Recruitment
• Employment Agencies
• HR Consultants
78
Human Resource Systems
Recruiting Targeted Groups:
• Executive Search Firms
- Reasons For Failure – Unrealistically High
Job Specifications, Poor Reputation,
Internal Politics In Hiring Organizations,
Insufficient Research Staff, Use Of Overly
Specialized Search Firmly
79
Human Resource Systems
• Campus Recruiting
• Recruiting Older Workers
• Recruiting Disabled Workers
• Affirmative Action Recruiting – E.g.: SEZ
80
Human Resource Systems
The Applicant’s Point Of View:
• Job Search
• Job Choice
81
Human Resource Systems
Job Choice:
• Individuals Make Rational Choice - Pay,
Benefits, Growth
• Instinct
• Influenced By Interviewer’s Skill/Politeness
82
Human Resource Systems
Why Selection Is Important?
83
Human Resource Systems
Selection:
• Your Own Performance Depends On The
Performance Of Your Colleagues
• It Is Costly To Recruit
• Legal Implications – Negligent Hiring
84
Human Resource Systems
Effective Selection Depends On Validity
And Reliability
Validity – A Sample Of A Person’s
Behavior
Reliability – Consistency Of Scores
85
Human Resource Systems
Reliability :
Systematic Error Versus Random Error
86
Human Resource Systems
Methods Of Measuring Reliability:
• Test – Retest – Consistency Of A Test Over
Time
• Inter-Rater
• Internal Consistency
87
Human Resource Systems
Validity:
• Whether The Test Is An Adequate Measure
Of The Characteristic It Is Supposed To
Measure
• Whether The Inferences Based On The
Score Are Appropriate
88
Human Resource Systems
Validity :
• Criterion Validity – Behavioral
Determinations
• Content Validity – Representative Of
Construct’s “Domain”
89
Human Resource Systems
How To Validate A Test?
Step 1: Analyze The Job
- Predictors – Job Description And
Specification
- Define Success On The Job
- Standards Of Success – Criteria
90
Human Resource Systems
Step 2: Choose The Tests
Step 3: Administer The Test
Concurrent Validation
Predictive Validation
91
Human Resource Systems
Concurrent Validation: 3 Steps
• Select A Sample Of Employees
• Give Each Employee A Proposed Selection
Test
• Compute The Correlation Between Test
Scores And Criterion Scores
92
Human Resource Systems
Predictive Validation:
• Present (Time 1) Versus Future (Time 2)
93
Human Resource Systems
Step 4: Relate Your Criteria (Test Scores)
And Predictor ( Test Scores)
Step 5: Cross Validate And Revalidate
94
Human Resource Systems
Special Concerns In Validation:
• Measurement Bias
• Validity Generalization
95
Human Resource Systems
Types Of Tests For Selection:
• Cognitive Abilities
• Motor And Physical Abilities
• Measuring Personalities And Interests
• Management Assessment Centers – Simulation
Exercises (In Basket, Leaderless GD, Games,
Individual Presentations, Objective Tests, The
Interview)
96
Human Resource Systems
Induction
97
Human Resource Systems
Induction:
• Employee Induction
• Should Feel Comfortable And At Ease
• Understand The Organization's Culture
• Policies And Procedures Of The
Organization
• Expectations From The Employee
98
Human Resource Systems
Training And Development
99
Human Resource Systems
Training – 5 Step Process:
• Needs Analysis Step – A.D.D.I.E.
The five phases—Analysis, Design, Development,
Implementation, and Evaluation—represent a
dynamic, flexible guideline for building effective
training and performance support tools.
• Instructional Design
• Validation Step
• Implement
• Evaluation And Follow -Up
100
Human Resource Systems
Training And Learning:
• Make Learning Meaningful
• Make Skills Transfer Easy
• Motivate The Learner
101
Human Resource Systems
Analyzing Training Needs
102
Human Resource Systems
Analyzing Training Needs:
• Task Analysis
• Performance Analysis
• Supplementing Methods: - Management’s
Request, Supervisor’s Report, Personnel
Records, Questionnaire Survey
103
Human Resource Systems
Performance Analysis:
Difference Between “Can’t Do” And “Won’t
Do”
104
Human Resource Systems
Traditional Training Methods:
• On-The Job Training
• Apprenticeship Training
• Informal Learning
• Job Instruction Training – Step-By-Step Approach
• Lectures
• Programmed Learning
• Audio-Visual Tools
• Simulated Training
• Computer Based Training 105
Human Resource Systems
Managerial Development And Training:
• Job Rotation
• Coaching/Understudy
• Transactional Analysis
106
Human Resource Systems
Off The Job Training And Development
Techniques:
• The Case Study Method
• Management Games
• Out Of Campus Seminars
• University Related Programs
• Role Play
107
Human Resource Systems
• Behavior Modeling:
- Showing The Right Way Of Doing
Things
- Practice The Right Way
- Feedback
108
Human Resource Systems
Evaluation Of Training Effort:
• Designing The Study – Controlled
Experimentation
Training Effects To Measure:
• Reaction
• Learning
• Behavior
• Results
109
Human Resource Systems
Development
110
Human Resource Systems
What Is Career?
111
Human Resource Systems
• Organization Career Development
• Individual Career Development
112
Human Resource Systems
• Career Development Vs. Personnel
Development
- Ensures Needed Talent Is Available
- Improves Organizational Ability To
Attract And Retain High Talent Personnel
- Ensuring Growth Opportunities For All
Employees
- Reduces Employee Frustration
113
Human Resource Systems
External Versus Internal Dimensions To A
Career
114
Human Resource Systems
Career Stages:
• Exploration
• Establishment
• Mid-Career
• Late Career
• Decline
115
Human Resource Systems
Effective Career Development:
• Challenging Initial Jobs
• Dissemination Of Career Option
Information
• Job Postings
• Assessment Centers
116
Human Resource Systems
Career Counseling – 4 Elements:
• Employee Goals And Aspirations For The Next 5
Years
• The Manager’s Views About Opportunities
Available
• Identification Of What The Employee Would
Have To Do In The Way Of Self Development
• Identification Of Actual Steps In The Form Of
Plans For New Development Activities
117
Human Resource Systems
Methods For Growth:
• Career Development Workshops
• Continuing Education
• Periodic Job Changes
• Sabbaticals
118
Human Resource Systems
Suggestions For Individual’s Career
Development:
3 Step Self Assessment Process:
• Identify And Organize Your Skills, Interests,
Work-Related Needs And Values
• Convert These Inventories Into General Career
Fields And Specific Job Goals
• Test These Possibilities Against The Realities Of
The Organization Or The Job Market
119
Human Resource Systems
Performance Appraisal
120
Human Resource Systems
Why Performance Appraisal?
• An Objective Method To Decide On
Compensation/Benefits
• Identify Areas Where
Development/Training Is Required
• Criterion On Which Selection Programs
Are Validated
121
Human Resource Systems
Other Uses Of Performance Appraisal:
• Less Need to Micro Manage
• Greater Employee Commitment
• Greater Employee Engagement
• Increased ease and comfort around
Performance Appraisals
• Better Coordination Between Company,
Department and Individual’s Performance
122
Human Resource Systems
Linkage Between :
• Efforts And Performance
• Performance And Rewards
123
Human Resource Systems
What Is Performance In Performance
Appraisal?
• Means Doing The Job Effectively And
Efficiently With A Minimum Related
Employee Disruption
124
Human Resource Systems
Definition Of Performance Appraisal:
Is A Structured Formal Interaction Between A
Subordinate And The Supervisor That Usually
Takes A Form Of Periodic Interview In Which
Work Performance Of The Subordinate Is
Examined And Discussed With A View To
Identify Weaknesses And Strengths, Opportunities
For Skill Development
125
Human Resource Systems
The Appraisal Process:
• Establishment Of Performance Standards
• Communication Of Expectations To The
Employee
• Measurement Of Performance – How And
What To Measure
• Actual Performance Versus Expected
Performance
126
Human Resource Systems
Who Should Do The Appraisal:
• Immediate Supervisors
• Peers
• Self Evaluation
• Immediate Subordinates
127
Human Resource Systems
When The Systems Of Performance
Appraisal Is Not Clear :
3 Emotions Are Prevalent:
• Ambiguity
• Uncertainty
• Suspicion
128
Human Resource Systems
Methods Of Appraisal:
• Graphic Rating Scales
1. Quality (Accuracy, Thoroughness,
Acceptability Of Work Performed)
2. Productivity
3. Job Knowledge
4. Reliability
5. Availability
6. Independence
129
Human Resource Systems
Methods Of Appraisal:
• Paired Comparison Method
• Forced Distribution Method
• Critical Incident Method
• Narrative/Essay Method
• BARS Method (Behaviorally Anchored Rating
Scales)
• Virtual Appraisals
130
Human Resource Systems
Steps For BARS:
• Generate Critical Incidents
• Develop Performance Dimensions
• Reallocate Incidents
• Scale The Incidents
• Develop A Final Instrument As Behavioral
Anchors – Clusters Of Skills
131
Human Resource Systems
Performance Management:
• Performance Planning (Employee Goal
Setting, Objective Setting)
• Ongoing Communication
• Data Gathering, Observation,
Documentation
• Performance Appraisal
• Performance Diagnosis And Coaching
132
Human Resource Systems
What Is Participative Management?
• Process Of Involving Those Who Are
Influenced By Decisions, In Making
Decisions.
• Where Everyone Makes Certain That
Everyone Gets Their Needs Met.
133
Human Resource Systems
Participative Management:
Delegating Process:
Responsibility + Accountability + Authority
134
Human Resource Systems
In Participate Management We Negotiate:
• Goals
• Guidelines
• Accountability
• Resource
• Reward
135
Human Resource Systems
• The Concept Of Control Is Generally Replaced By
The Concept Of Self-control And Accountability.
• The Word Manage Is Generally Replaced By The
Words Lead, Encourage, Persuade, Lift, Serve,
Help, Understanding, And Inspire
• The Words Negotiate And Review And Discuss
And Decide Replace Words Like Orders, Inform,
Tell, Assign, Direct, And Require.
• The Attitude Of Negotiation Is Encouraged By
Phrases Like How Can We Improve
• The Phrase ‘I’ Is Replaced By ‘We’
136
Human Resource Systems
Managerial Succession Planning:
Business Systems:
From To
• Organizational Pyramids - Flatter Systems
• Desire For Seasoned Leaders – Want The
Seasoning To Develop Sooner
• Stability - Flexibility With Faster
Market Responsiveness
137
Human Resource Systems
Managerial Succession Planning:
• Develop Pools Of Broadly Qualified
Candidates – Have Position Pools
• More Broadly Disciplined Candidates
• More Centralization And Integration Of
Systems And Information In Business Units
• Cross Boundary Fertilization To Develop
Broader Skills And Perspective
138
Human Resource Systems
Managerial Succession Planning:
• Largely Line Driven
• Strategic Competencies And Models Define
Success
• Cross Functional Management Capability
• Individual Sets Career Direction
• Sequential Job Assignments Provide Primary
Development, Supplemented By Specific Training
• Create Assignments For Development
139
Summary
The field of human resources is one that
is often overlooked in enterprise
management. This situation is aided by
the fact that an efficient Human
Resources department should function
without fanfare. For example, when a
project team successfully launches a
product on time and within budget it is
hailed as a great success. When the HR
department manages the administration
of the enterprise successfully it can go
virtually unnoticed – after all, the
Human Resources department is simply
expected to work, only attracting
attention when there are problems. The
reality, however, is very different. The
HR Systems play a vital role in ensuring
the smooth running of an enterprise –
most importantly by tracking and
analyzing the timekeeping and work
patterns of the workforce, allowing
management better information on
which to form strategies.
Neha Paliwal
HR- Executive

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HR Systems Guide to Managing People

  • 2. Human Resource Systems What Do Managers Do? Managers Get Things Done Through People 2
  • 3. Human Resource System What Is An Organization? • Consciously Coordinated Social Unit • Functions On A Continuous Basis To Achieve A Common Goal 3
  • 4. Human Resource Systems What Are Management Functions ? Henri Foyal’s: • Plan • Organize • Command • Control • Coordinate 4
  • 5. Human Resource Systems In The 21st Century: • Planning • Organizing • Leading • Controlling 5
  • 6. Human Resource Systems To Plan: • Organization Goals • Establish Overall Strategy To Achieve These Goals • Developing A Comprehensive Set Of Plans To Integrate And Coordinate Activities 6
  • 7. Human Resource Systems To Organize: • What Tasks To Be Done • Who Is To Do Them • How Tasks Are To Be Grouped • Who Reports To Whom • What Decisions Are To Be Made 7
  • 8. Human Resource Systems To Lead: • Motivate • Direct The Activities • Select The Most Communicative Channel • Resolve Conflicts 8
  • 9. Human Resource Systems To Control: • Monitor Organizational Performance 9
  • 10. Human Resource Systems Why Do We Need Management • Speed Of Change – Technological Developments To Competitive Strategies • Forces That Affect Organizational Performances – Government Actions, Expectations Of Employees Are Complex. 10
  • 11. Human Resource Systems (In lighter sense…) Put Employees Into a room with only a table and two chairs. Leave them without any instruction and check back on them in two hours. If they have taken the table apart... ...assign them to engineering. * If they are counting butts in the ashtray... ...put them in finance. 11
  • 12. Human Resource Engineering • If they are talking to the chairs... • ...assign them to personnel* • If they are sleeping... • ...they are management material. 12
  • 13. Human Resource Systems • * If they do not notice when you walk in... • ...place them in security. * • * If they Leave Early.. Put them In Sales 13
  • 14. Human Resource Systems…on a serious note Ten Specific Managerial Roles • Grouped Under Three Primary Activity Centers – 1.Interpersonal 2.Informational 3.Decisional 14
  • 15. Figure Head Leader Liaison Human Resource Systems Interpersonal Role 15
  • 16. Informational Roles • Monitor • Disseminator • Spokes Person 16
  • 17. Human Resources Sysytems Decisional Roles • Entrepreneur • Disturbance Handler • Resource Allocate • Negotiator 17
  • 18. Human Resource Systems Henri Fayol – Focus On Managers’ Job Organizational Functions Were Included - Purchasing Planning - Production Organizing - Sales Directing - Finance Coordinating - Accounting Control - Administration 18
  • 19. Human Resource Systems • 20th Century Concept • Federick Taylor pioneered “Scientific Management Movement – Observation of People Through Time And Motion Study, Importance To Task • Lillian Gilbreth – Analysis And Synthesis On The Basis Of Goal Setting • Henri Fayol – Administrative Principles – Elevation Of Management From Shop floor To The Entire Organization 19
  • 20. Human Resource Systems • Max Weber’s – Bureaucracy Theory • The Great Depression Led To Behavioral Approaches • Elton Mayo’s Hawthorne Studies At Western Electric • Humanistic Psychology – Abraham Maslow, Douglas Mcgregor 20
  • 21. Human Resource Systems • Mary Parker Follet – Administrative Behavior – Reciprocal Nature Of Power, Power As An Agent Of Change • The Contingency Perspective – “It All Depends on Situation”. 21
  • 22. Human Resource Systems Social Sciences - Psychology - Sociology - Social Psychology - Political Sciences - Anthropology 22
  • 23. Human Resource Systems Management Is The Practice Of Directing, Organizing, And Developing People, Technology, And Financial Resources In Task Oriented Systems That Provide Product And Services To Others. 23
  • 24. Human Resource Systems Links With Organizational Strategy – How? • A Major Airline Implements The Purchase Decision Of Buying Four New Airbus A380s – 600 and 800 Seat Super Jumbo Aircraft. • This Aircraft Is A Flying Palace Spacious Enough To Feature Sleeping Quarters, Shops, Exercise Rooms. 24
  • 25. Human Resource Systems What Are The Major HR Implications? 25
  • 26. Human Resource Systems • The Most Experienced Captains With The Airline Will Need Training • Training Needs Through Out The Cockpit Ranks – First Officers, Flight Engineers… • Cabin Attendants Will Need To Undergo Training In Safety Features And Service 26
  • 27. Human Resource Systems • Maintenance Mechanics Will Need Training In Routine And Special Servicing Of The Airplane • Purchasing Agents – Different Parts And Supplies Will Need To Be Ordered • Construction Will Need To Be Undertaken To Alter Airport Gates 27
  • 28. Human Resource Systems • Marketing Representatives Will Need To Know The Airplane’s Special Features To Promote Travel On It. 28
  • 29. Human Resource Systems All this…. A Seemingly Straight Forward Decision To Purchase A New Aircraft, A Decision Based On Business Projections!!! 29
  • 30. Human Resource Systems Strategy: • Corporate Strategy – Several Businesses • Business Strategy – Competitive Positions • Functional Strategy - Departments 30
  • 31. Human Resource Systems Strategic Planning Process – SWOT Basic Strategic Trends: • Globalization • Technological Changes • Diverse Work Force • Nature Of Work 31
  • 32. Human Resource Systems Managerial Consequences: • Global Expansion • Improved Competitiveness • Organizational Changes – Flat • Knowledge Management 32
  • 33. Human Resource Systems Strategic Decisions Impact On HR • Add New Type Of Equipment Training • Acquisition Selection (From Acquired Firm), Training, Compensation, Outplacement 33
  • 34. Human Resource Systems Strategic Decisions Impact On HR • Pursue Competitive Strategy Compensation, Labor Relations, Training • Expand Markets Selection, Training, Compensation • Relocation Of Factory Transfer, Recruitment, Selection, Training 34
  • 35. Human Resource Systems HR Strategic Role: • Ensuring Competitive Advantage • Shift From Protector And Screener To Strategic Partner And Change Agent • Metamorphosis From Personnel To Human Resource Management 35
  • 36. Human Resource Systems Role Of HR: • Environmental Scanning • Providing Of Competitive Intelligence • Providing Of Internal Strengths 36
  • 37. Human Resource Strategy Future…. • Corporate Reorganizations - Loss Of Job, Pay, Benefits - Job Changes - Transfer To A New Geographic Location - Changes In Career Growth 37
  • 38. Human Resource Systems Steps Before Making A HR Score Card: • Emerges From The Balance Score Card - Attempts To Collate Measures From Four Areas – Financial, Internal Business Process, Customer, Learning And Growth (Objectives, Measures, Targets, Initiatives) 38
  • 39. Human Resource Systems HR Score Card: • Understanding The Reason For Implementing The HR Score Card 39
  • 40. Human Resource Systems • HR Outcomes Measure The Focus On Business Outcomes • Operational HR Metrics That Focus On Efficiencies 40
  • 41. Human Resource Systems • Understanding The Business Context Of HR – What Are The Value Drivers OF Business Units? • What Is HR Value Proposition To The Business • Where Is HR Contribution Recognized – By Senior Management, The Line, Employees, HR Itself, Investors? 41
  • 42. Human Resource Systems • What Does The HR Function Currently Measure? • Are The Metrics Activity Driven Or Value Driven? 42
  • 43. Human Resource Systems Defining HR Value: - The Value Of The HR Function As A Whole - The Value Of HR Processes As Practiced Throughout The Organization – Performance Management And The Fit With Culture, Structure And Strategy 43
  • 44. Human Resource Systems Defining HR Value: • Selecting The Relevant Measures And Metrics • Maintaining A HR Score Card Frame Work 44
  • 45. Human Resource Systems Now HR Score Card: • Business Context Two Influences On HR Effectiveness: - External Influences – The Company’s Current Operating Environment - Internal Influences – How The Business Perceives HR Capability 45
  • 46. Human Resource Systems Current HR Objectives: Resources, Performance Management, Training, And Development, Reward, Employee Relations – Areas Where Measurement Is Required 46
  • 47. Human Resource Systems Evolve Appropriate HR Metrics 47
  • 48. Human Resource Systems Score Card Design Frame Work: • Financial • Process • Internal Customer Focus • People/Human Capital Management 48
  • 49. Human Resource Systems Financial Value: - HR Management Budget/Spend - HR Development Budget/Spend - Sales Per Employee - Revenue Per Employee 49
  • 50. Human Resource System Internal Customer: - Training - Self Learning - Ration Of E –Learning Modules To Traditional Training Modules 50
  • 51. Human Resource Systems Human Capital Intervention (Focus And People) - Training Days Delivered - Training Needs/ Analysis - Performance Management 51
  • 52. Human Resource Systems Human Capital Management - Absenteeism Ration - Headcount - Staff Turnover - Employee Commitment 52
  • 53. Human Resource Systems HR Planning: • What Positions To Fill • How To Fill Those Positions 53
  • 54. Human Resource Systems HR Planning: To Forecast: • Personnel Needs • The Supply Of Internal Candidates • The Supply Of External Candidates 54
  • 55. Human Resource Systems How To Forecast Personnel Needs ? • Forecast Future Revenue • Estimate The Size Of Staff To Achieve This Revenue • Projected Turnover Of Manpower • Quality And Skills Based On Changing Needs Of The Organization 55
  • 56. Human Resource Systems • Strategic Decisions • Technological Changes • Financial Resources Available 56
  • 57. Human Resource Systems To Predict Employment Needs: • Trend Analysis • Ratio Analysis • The Scatter Plot 57
  • 58. Human Resource Systems Job Analysis: Procedure To Determine • Duties Of Positions • Characteristics Of People To Satisfy These Positions - Job Descriptions - Job Specifications 58
  • 59. Human Resource Systems Job Analysis: • Work Activities • Human Behaviors • Machine Tools, Equipments • Performance Standards • Job Context • Human Requirements 59
  • 60. Human Resource Systems Uses Of Job Analysis: • Recruitment And Selection • Compensation • Performance Appraisal • Training • Discovering Unassigned Duties 60
  • 61. Performance Appraisal Why Job Analysis? • Globalization • Flatter Organizations • Reengineering • High Performance Insight 61
  • 62. Human Resource Systems Which Are The Types Of Jobs To Be Analyzed ? • Jobs Which Are Critical To The Organization • Jobs Which Are Difficult To Learn And Perform • Legal Factors 62
  • 63. Human Resource Systems Types Of Job Data: • Foundation Work Activities – (Basic ) Amount Of Responsibility • Intermediate Work Content – (Some Technological Content) – How Much Of Time Is Spent On Teaching People? • Area Work Activities – Technologically Oriented Specific To Work Activities 63
  • 64. Human Resource Systems Steps In Job Analysis: • How Will The Information Be Used? • Review Relevant Background Information • Select Representative Positions • Actually Analyze The Job • Verify The Information • Develop A Job Description And Specification 64
  • 65. Human Resource Systems Methods Of Collecting Job Analysis Information: • Qualitative • Quantitative 65
  • 66. Human Resource Systems Qualitative Methods: • Interview – Individual, Supervisor, Group 66
  • 67. Human Resource Systems Interview Method – Typical Questions: • What Is The Job Being Performed? • What Are The Major Duties? • What Exactly You Do? • What Physical Conditions Do You Work In? • In What Activities Do You Participate? 67
  • 68. Human Resource Systems Interview Method: • Detailed Checklists • Interview Guidelines Questionnaire Method: Observation Method Participant Diary/Logs 68
  • 69. Human Resource Systems Recruitment The Process Of Organizations Locate And Attract Individuals To Fill Job Vacancies 69
  • 70. Human Resource Systems Recruitment Process: • Vacant/New Position Occurs • Perform Job Analysis And Plan Recruiting Effort • Generate Applicant Pool – Internal/External • Evaluate Applicants • Impress Applicants • Make Offer 70
  • 71. Human Resource Systems Strategic Issues In Recruiting: • Match With Organizational Values • State Of External Labor Market • Firm’s Ability To Pay • Attract Talent 71
  • 72. Human Resource Systems Recruitment Goals: • To Attract Large Pool Of Applicants • Attract High Proportion Of Well Qualified Candidates Who Are Interested In Accepting Offers • Post Hiring Goals – Retention, Spill Over Effect 72
  • 73. Human Resource Systems Recruitment Philosophy • Whether Internal/External Recruitment • Merely Filling Up Vacancies/Hire For Long Term Careers • Depth Of Commitment To Hiring A Diverse Range Of Employees • Marketing Orientation • Ethical Overtones 73
  • 74. Human Resource Systems How To Attract Applicants: • By Changing Nature Of Inducements • Target Labor Pools • Sponsor Immigration • Mergers And Acquisitions • Employee Leasing 74
  • 75. Human Resource Systems Internal Recruitment: • Job Posting And Bidding • Consulting Of Replacement Charts • Nominating Committees • Managerial Succession Planning 75
  • 76. Human Resource Systems External Recruiting: • About The Position To Be Filled • Job Specification Sheet • Recruiter Must Identify What Will Attract The Candidate 76
  • 77. Human Resource Systems Planning For External Recruiting: Factors Which Are Time Consuming: • The Need For Confidential Search • A Technically Complex Position • Competition In The Market Place • A Poor Industry/Company/Division Reputation • Low Pay • Unclear Job Description • An Undesirable Location 77
  • 78. Human Resource Systems External Recruitment: • Informal Methods – Employee Referrals • Formal Methods - Advertisements • Internet Recruitment • Employment Agencies • HR Consultants 78
  • 79. Human Resource Systems Recruiting Targeted Groups: • Executive Search Firms - Reasons For Failure – Unrealistically High Job Specifications, Poor Reputation, Internal Politics In Hiring Organizations, Insufficient Research Staff, Use Of Overly Specialized Search Firmly 79
  • 80. Human Resource Systems • Campus Recruiting • Recruiting Older Workers • Recruiting Disabled Workers • Affirmative Action Recruiting – E.g.: SEZ 80
  • 81. Human Resource Systems The Applicant’s Point Of View: • Job Search • Job Choice 81
  • 82. Human Resource Systems Job Choice: • Individuals Make Rational Choice - Pay, Benefits, Growth • Instinct • Influenced By Interviewer’s Skill/Politeness 82
  • 83. Human Resource Systems Why Selection Is Important? 83
  • 84. Human Resource Systems Selection: • Your Own Performance Depends On The Performance Of Your Colleagues • It Is Costly To Recruit • Legal Implications – Negligent Hiring 84
  • 85. Human Resource Systems Effective Selection Depends On Validity And Reliability Validity – A Sample Of A Person’s Behavior Reliability – Consistency Of Scores 85
  • 86. Human Resource Systems Reliability : Systematic Error Versus Random Error 86
  • 87. Human Resource Systems Methods Of Measuring Reliability: • Test – Retest – Consistency Of A Test Over Time • Inter-Rater • Internal Consistency 87
  • 88. Human Resource Systems Validity: • Whether The Test Is An Adequate Measure Of The Characteristic It Is Supposed To Measure • Whether The Inferences Based On The Score Are Appropriate 88
  • 89. Human Resource Systems Validity : • Criterion Validity – Behavioral Determinations • Content Validity – Representative Of Construct’s “Domain” 89
  • 90. Human Resource Systems How To Validate A Test? Step 1: Analyze The Job - Predictors – Job Description And Specification - Define Success On The Job - Standards Of Success – Criteria 90
  • 91. Human Resource Systems Step 2: Choose The Tests Step 3: Administer The Test Concurrent Validation Predictive Validation 91
  • 92. Human Resource Systems Concurrent Validation: 3 Steps • Select A Sample Of Employees • Give Each Employee A Proposed Selection Test • Compute The Correlation Between Test Scores And Criterion Scores 92
  • 93. Human Resource Systems Predictive Validation: • Present (Time 1) Versus Future (Time 2) 93
  • 94. Human Resource Systems Step 4: Relate Your Criteria (Test Scores) And Predictor ( Test Scores) Step 5: Cross Validate And Revalidate 94
  • 95. Human Resource Systems Special Concerns In Validation: • Measurement Bias • Validity Generalization 95
  • 96. Human Resource Systems Types Of Tests For Selection: • Cognitive Abilities • Motor And Physical Abilities • Measuring Personalities And Interests • Management Assessment Centers – Simulation Exercises (In Basket, Leaderless GD, Games, Individual Presentations, Objective Tests, The Interview) 96
  • 98. Human Resource Systems Induction: • Employee Induction • Should Feel Comfortable And At Ease • Understand The Organization's Culture • Policies And Procedures Of The Organization • Expectations From The Employee 98
  • 99. Human Resource Systems Training And Development 99
  • 100. Human Resource Systems Training – 5 Step Process: • Needs Analysis Step – A.D.D.I.E. The five phases—Analysis, Design, Development, Implementation, and Evaluation—represent a dynamic, flexible guideline for building effective training and performance support tools. • Instructional Design • Validation Step • Implement • Evaluation And Follow -Up 100
  • 101. Human Resource Systems Training And Learning: • Make Learning Meaningful • Make Skills Transfer Easy • Motivate The Learner 101
  • 102. Human Resource Systems Analyzing Training Needs 102
  • 103. Human Resource Systems Analyzing Training Needs: • Task Analysis • Performance Analysis • Supplementing Methods: - Management’s Request, Supervisor’s Report, Personnel Records, Questionnaire Survey 103
  • 104. Human Resource Systems Performance Analysis: Difference Between “Can’t Do” And “Won’t Do” 104
  • 105. Human Resource Systems Traditional Training Methods: • On-The Job Training • Apprenticeship Training • Informal Learning • Job Instruction Training – Step-By-Step Approach • Lectures • Programmed Learning • Audio-Visual Tools • Simulated Training • Computer Based Training 105
  • 106. Human Resource Systems Managerial Development And Training: • Job Rotation • Coaching/Understudy • Transactional Analysis 106
  • 107. Human Resource Systems Off The Job Training And Development Techniques: • The Case Study Method • Management Games • Out Of Campus Seminars • University Related Programs • Role Play 107
  • 108. Human Resource Systems • Behavior Modeling: - Showing The Right Way Of Doing Things - Practice The Right Way - Feedback 108
  • 109. Human Resource Systems Evaluation Of Training Effort: • Designing The Study – Controlled Experimentation Training Effects To Measure: • Reaction • Learning • Behavior • Results 109
  • 111. Human Resource Systems What Is Career? 111
  • 112. Human Resource Systems • Organization Career Development • Individual Career Development 112
  • 113. Human Resource Systems • Career Development Vs. Personnel Development - Ensures Needed Talent Is Available - Improves Organizational Ability To Attract And Retain High Talent Personnel - Ensuring Growth Opportunities For All Employees - Reduces Employee Frustration 113
  • 114. Human Resource Systems External Versus Internal Dimensions To A Career 114
  • 115. Human Resource Systems Career Stages: • Exploration • Establishment • Mid-Career • Late Career • Decline 115
  • 116. Human Resource Systems Effective Career Development: • Challenging Initial Jobs • Dissemination Of Career Option Information • Job Postings • Assessment Centers 116
  • 117. Human Resource Systems Career Counseling – 4 Elements: • Employee Goals And Aspirations For The Next 5 Years • The Manager’s Views About Opportunities Available • Identification Of What The Employee Would Have To Do In The Way Of Self Development • Identification Of Actual Steps In The Form Of Plans For New Development Activities 117
  • 118. Human Resource Systems Methods For Growth: • Career Development Workshops • Continuing Education • Periodic Job Changes • Sabbaticals 118
  • 119. Human Resource Systems Suggestions For Individual’s Career Development: 3 Step Self Assessment Process: • Identify And Organize Your Skills, Interests, Work-Related Needs And Values • Convert These Inventories Into General Career Fields And Specific Job Goals • Test These Possibilities Against The Realities Of The Organization Or The Job Market 119
  • 121. Human Resource Systems Why Performance Appraisal? • An Objective Method To Decide On Compensation/Benefits • Identify Areas Where Development/Training Is Required • Criterion On Which Selection Programs Are Validated 121
  • 122. Human Resource Systems Other Uses Of Performance Appraisal: • Less Need to Micro Manage • Greater Employee Commitment • Greater Employee Engagement • Increased ease and comfort around Performance Appraisals • Better Coordination Between Company, Department and Individual’s Performance 122
  • 123. Human Resource Systems Linkage Between : • Efforts And Performance • Performance And Rewards 123
  • 124. Human Resource Systems What Is Performance In Performance Appraisal? • Means Doing The Job Effectively And Efficiently With A Minimum Related Employee Disruption 124
  • 125. Human Resource Systems Definition Of Performance Appraisal: Is A Structured Formal Interaction Between A Subordinate And The Supervisor That Usually Takes A Form Of Periodic Interview In Which Work Performance Of The Subordinate Is Examined And Discussed With A View To Identify Weaknesses And Strengths, Opportunities For Skill Development 125
  • 126. Human Resource Systems The Appraisal Process: • Establishment Of Performance Standards • Communication Of Expectations To The Employee • Measurement Of Performance – How And What To Measure • Actual Performance Versus Expected Performance 126
  • 127. Human Resource Systems Who Should Do The Appraisal: • Immediate Supervisors • Peers • Self Evaluation • Immediate Subordinates 127
  • 128. Human Resource Systems When The Systems Of Performance Appraisal Is Not Clear : 3 Emotions Are Prevalent: • Ambiguity • Uncertainty • Suspicion 128
  • 129. Human Resource Systems Methods Of Appraisal: • Graphic Rating Scales 1. Quality (Accuracy, Thoroughness, Acceptability Of Work Performed) 2. Productivity 3. Job Knowledge 4. Reliability 5. Availability 6. Independence 129
  • 130. Human Resource Systems Methods Of Appraisal: • Paired Comparison Method • Forced Distribution Method • Critical Incident Method • Narrative/Essay Method • BARS Method (Behaviorally Anchored Rating Scales) • Virtual Appraisals 130
  • 131. Human Resource Systems Steps For BARS: • Generate Critical Incidents • Develop Performance Dimensions • Reallocate Incidents • Scale The Incidents • Develop A Final Instrument As Behavioral Anchors – Clusters Of Skills 131
  • 132. Human Resource Systems Performance Management: • Performance Planning (Employee Goal Setting, Objective Setting) • Ongoing Communication • Data Gathering, Observation, Documentation • Performance Appraisal • Performance Diagnosis And Coaching 132
  • 133. Human Resource Systems What Is Participative Management? • Process Of Involving Those Who Are Influenced By Decisions, In Making Decisions. • Where Everyone Makes Certain That Everyone Gets Their Needs Met. 133
  • 134. Human Resource Systems Participative Management: Delegating Process: Responsibility + Accountability + Authority 134
  • 135. Human Resource Systems In Participate Management We Negotiate: • Goals • Guidelines • Accountability • Resource • Reward 135
  • 136. Human Resource Systems • The Concept Of Control Is Generally Replaced By The Concept Of Self-control And Accountability. • The Word Manage Is Generally Replaced By The Words Lead, Encourage, Persuade, Lift, Serve, Help, Understanding, And Inspire • The Words Negotiate And Review And Discuss And Decide Replace Words Like Orders, Inform, Tell, Assign, Direct, And Require. • The Attitude Of Negotiation Is Encouraged By Phrases Like How Can We Improve • The Phrase ‘I’ Is Replaced By ‘We’ 136
  • 137. Human Resource Systems Managerial Succession Planning: Business Systems: From To • Organizational Pyramids - Flatter Systems • Desire For Seasoned Leaders – Want The Seasoning To Develop Sooner • Stability - Flexibility With Faster Market Responsiveness 137
  • 138. Human Resource Systems Managerial Succession Planning: • Develop Pools Of Broadly Qualified Candidates – Have Position Pools • More Broadly Disciplined Candidates • More Centralization And Integration Of Systems And Information In Business Units • Cross Boundary Fertilization To Develop Broader Skills And Perspective 138
  • 139. Human Resource Systems Managerial Succession Planning: • Largely Line Driven • Strategic Competencies And Models Define Success • Cross Functional Management Capability • Individual Sets Career Direction • Sequential Job Assignments Provide Primary Development, Supplemented By Specific Training • Create Assignments For Development 139
  • 140. Summary The field of human resources is one that is often overlooked in enterprise management. This situation is aided by the fact that an efficient Human Resources department should function without fanfare. For example, when a project team successfully launches a product on time and within budget it is hailed as a great success. When the HR department manages the administration of the enterprise successfully it can go virtually unnoticed – after all, the Human Resources department is simply expected to work, only attracting attention when there are problems. The reality, however, is very different. The HR Systems play a vital role in ensuring the smooth running of an enterprise – most importantly by tracking and analyzing the timekeeping and work patterns of the workforce, allowing management better information on which to form strategies.