HRM 520 Assignment 4: Phase IV – Plan Summary

Steps in the implementation Plan

First step in this implementation process and perhaps the most important step is the idea inception. This is important since it is the step that will be able to get the go ahead from the top management. They have to see it as an investment they can use to get to the goals that they have set for their organization. The step that follows is one for conducting a feasibility study. In this steps, there will be several sub steps that will be looked at and this include first determining the scope of the HRIS, the future benefits of the implementation, the assessment of the developers who might have the potential for creating the software for the company, the estimation of the cost to be incurred, the value that will be added to the business after the adoption of the system. This second step is usually one that will give the management the facts of the process leading top making proper decisions using facts and figures. A major step the follows is one for selecting the appropriate team for the project. The team has to be a capable one that will involve senior management (Hearn, S. 2013).

The fourth step is to define the requirements of the system that will enable it to effectively work for the organization. This is done just before communication to the vendors. The fifth step will be finding the right developers for the perceived system. This will include the assessment of the capabilities and most importantly, the cost offer. The sixth step of the process will be the negotiation of the control of the package which will include the signing of the contracts. Before the seventh step, the development process would have begun and at this point the training of the HR about the HRIS will begin followed by the designing of the software and the general system tailoring in accordance with the company. The eight step will be the general collection of data, feeding the system and testing it. This is in order to understand the gaps for correction.

The step that follows will be the starting of the system after all the necessary flaws have been discovered and corrected. Here, the system will be installed in the organization computers and properly configured. The next step will be running the new system and the old one parallel to each other so that in the event that the system fails, no effect will be felt. This will be done for a while at least to complete one full cycle of the system run. The thirteenth step will be one of setting up the proper processes that will help in the maintenance of the system after it has been installed. This will enable proper monitoring and performance. Maintenance contracts can be signed on a yearly basis as it is commonly done for such systems. Finally, there will be an extensive evaluation of the software’s performance for a certain period of time. This will be for the purpose of knowing the value added after the adoption of the system (Hearn, S. 2013).

Cost Justification

The cost benefit matrix for the chosen vendor is as follows, the cost off the software and the hardware for the development process will stand at $0 since the chosen vendor already owns these. The second will be the cost of the development time where the developer will charge an hourly fee of 30 dollars and an estimated period of 80 hours will be used in the development process bringing the cost to about 2,400 dollars. The time used in the meetings and the reviews will also have a cost of about 35 dollars per hour and the developers have an estimated 10 hours of the total business hours for these activities bringing total to 350 dollars. Finally, there is the hours lost in the training programs for the HRIS use. This is estimated at 25 dollars per hour with an average number of 50 employees to be trained brings the total to about 1250 dollars. The total vendor cost will hence stand at about 4,000dollars. It might be expensive for a company to install the HRIS but the benefits that come with it in terms of the cost are big (Kavanagh, M. 2015).

This benefit analysis will be divide into their strategic areas of application which will enable to bring out benefit estimates that the company will get after the installation of the software. He first will be on the predictable improvements on the business. The cost of employee benefits is 30-50% of all the company revenue in most of the organizations. But the HROS brings some benefits to this and hence reduce costs. By improving the process and the productivity, the system can save up to 100,000 dollars just through timely notifications on employee terminations. This can be seen in one of the hotel chains in the country. The system also saves the cost by eliminating paperwork waste. This HR system will also be able to improve the employee relations with the company hence saving it up to $4,200 dollars as a coat of searching and recruitment in the case that a valuable employee is lost.

The system will also offer a better risk management and hence eliminate the costs that come with the risk. Example is the COBRA, where employees are paid up to 100 dollars per day in the event that they do not receive this notice on time. This will be very costly if just 5% of the employees failed to receive it on time in such a large company in quarter of a financial year. There are other risk costs that can be mitigated such as the proof of citizenship that can attract up to 1000 dollars per employee. The issue of lost time comes up where as the compensation cost of employees continues to rise, companies are losing on the lost time when the employees were not working that would save up to 10% of the 70 billion dollars used today per year in compensations.

HR Metrics

The definition of the HR metrics is the data that is used for the purpose of quantifying the costs and the impacts of the management programs for the employees and other HR processes in order to measure the success of the HR initiatives. In this company, the metrics I would recommend that will bring the most significant value through the HIRS is on the organization performance. This is a metrics that puts into account issues like the percentages of the turnover, the percentages of the losses regretted, the recruitment processes and absence. This recommendation is important because this system is designed not just to handle the HR functions but also to make them effective and productive. Utilizing the above metrics will ensure that the system measures up to its cost by ensuring that there is general improvement in performance of the employee and in the process offer the entire organization an advantage on implementation of its strategies for achievement of the set goals (Binnion, D. 2013).

References