In any organization, when implementing a human resource information system (HRIS), it is crucial to countercheck the systems benefits. HRIS describes a given software program used in organizations so as to aid the human workforce in increasing their productivity (Burke, 2013). The following paper will illustrate to a client how HRIS will be implemented with the use of a selected change model. The paper will first discuss change management and why most system implementation fails, discuss HRIS implementation process, the cost analysis benefit analysis and finally establish the maintenance as well as an evaluation plan to ensure the system is maintained properly and also evaluated to guarantee continuous improvement.
There are various causes for a system implementation failure. As stated by Freund (2010) new systems fail due to the collision of theory and practice. In a report, Freund (2010) also found that 3 out of 5 IT projects do not conform to the expected costs and within the given timeline and established that 49% suffer due to budget overruns, and 47% due to higher than the targeted maintenance costs outcomes and 41% due to failure in meeting expected value as well as ROI. System implementation also fails due to faulty priorities in system selection, unrealistic benefit analysis, wrong project manager, unsupportive executive, poor communication, inadequate training and insufficient implementation budget (Dwivedi, Wastell, Laumer, Henriksen, Myers, Bunker & Srivastava, 2015). Firms must assess any challenge that would derail implementation.
Major change models as outlined by Calder (2013) are Lewin's Change Model, ADKAR and "John Kotter's 8 Steps for Leading Organizational Change." ADKAR model has principles that aim to implement change in individuals, states, and community and focus on effective change at an individual level although applicable to a large group and even organizations (Calder, 2013). ADKAR stands for; "Awareness, Desire, Knowledge, Ability, and Reinforcement" (Calder, 2013). Its focus is on how to change people. Lewin's Change Model entails unfreezing, changing and refreezing and hypothesize that change is planned no matter is nature and driving and restraining forces in reducing resistance to change are crucial (Calder, 2013). I will use Lewin's Change Model by involving all stakeholders and informing them about the model. The model is selected over the ADKAR Model since it focuses on reducing change resistance in the organization. Lewin's Change Model entail unfreezing where fears of the unknown are overcome through communication, training, employee involvement among other factors. The second stage is changing where the actual change occurs and finally refreezing as the third stage involves reinforcing the change through feedback and organization rewards for adopting change(Calder, 2013). It is the final stage.
Effective system implementation requires that some activities are considered before the system goes live. Some of the crucial activities are:
The configuration of the systems program for the organization's process and policies; this step takes into account the specific policies of the organization and its workflows associated with the payroll (Turner, 2014). At this step, the system operation is considered so as to ensure that it is capable to host the current operations of the business. The timeline for this activity is August 2019 to September 2019 and will be handled by David, the system configuration tasked to configure the system environment.
Data interface and integration of all previous systems into a single new system; at this stage data migration should be completed and all existing data in the firm's system is migrated to the single new system by the help of defined codes(Turner, 2014). It must be ensured that all data has been migrated. Its timeline is October - November 2019 and will be handled by Isaac, the system configuration assistant tasked to move disparate data to a centralized database.
Launch training program; the firm's employees all need to be trained on the new system to ensure they are updated and that they can utilize it conveniently to the firms as well as their own benefit (Turner, 2014). This step involves preparation in terms of time and money budgeting for the implementation. This activity has a timeline of December 2019 and will be handled by Sharon, the staff training head who plans and ensure the training is complete for all employees and executives. Having followed these activities step by step, the firm can proceed to the system launch ensuring the system is launched in time and that it fulfills the firm's expectations.
The following is a cost-benefit analysis matrix for the selected vendor.
Timeline to receive benefits = 6 months-8 month Revenue; $50,500
Change the employee work performance; $20,000 Faster system; $25,809
Better reporting options; $11,440
$26,764 Canceled vendors
$13,219 Staff time such as being free to handle other issues; $31,427
Timeline to incur cost = project initiation - 2 months after going live New Implementation
$25,000 Out of pocket cost
$15,237 Technical challenges
In procuring and implementing the HRIS, cost justification is one of the many challenges project managers encounter (Burke, 2013). Organizations must, therefore, ensure that they develop a cost-benefit analysis matrix so that they can establish the benefits of the system to the firm. Organizations are concerned with factors such as the future success of their firm using the system and whether the system will reduce cost and increase revenue. In addressing these issues, cost justification is vital.
The matrix displayed above consist of benefits and costs that come with the system implementation where there are both direct and indirect costs in the process. Since the firm's main concern is whether its revenues and profitability increase with revenue, the above benefit analysis indicates an increase in revenue as the system operates faster than human operation and therefore job performance will increase as the system is efficient earning the firm $25,809. To this end, workers have more time which can be dedicated to performing other tasks, contributing $31,427in revenue for the firm. The indirect benefits include the firm saving more when paying external vendors in performing the task. As indicated the firm is in a position to earn $179,159as savings from the systems implementation and therefore the system is justifiable. Another justification reason is that the firm is expected to receive the benefits after 6-8 months after launch and the costs will be incurred from the project initiation period to the 2 months after launching where costs such as implementation costs will be non-repetitive.
An effective system requires proper maintenance and evaluation to ensure continuous improvement. To facilitate this, I would set up and emphasize on HR metrics which as Turner (2014) states, they are crucial in identifying the system's weaknesses and strengths and allow for improvements. Some of the HR metrics would include benefits cost which provides the firm with an overview of the cost of the package per worker; and the absence rate which will allow firms gauge workers satisfaction with the system and also help in calculating the payout accordingly.
Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.
Calder, A. M. (2013). Organizational change: Models for successfully implementing change.
Dwivedi, Y. K., Wastell, D., Laumer, S., Henriksen, H. Z., Myers, M. D., Bunker, D., ... & Srivastava, S. C. (2015). Research on information systems failures and successes: Status update and future directions. Information Systems Frontiers, 17(1), 143-157.
Freund, E. (2010). Why New Systems Fail: Theory and Practice Collide. Software Quality Professional, 12(2), 39.
Turner, J. R. (2014). Handbook of project-based management(Vol. 92). New York, NY: McGraw-hill.
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