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Organizations continue to look for ways to adapt promptly—qualities such as flexibility, agility, quick reactions, and responsiveness to customers. At the same time, they also look for ways to increase profits. Many felt that information technology was the answer, and it would seem that this is so. For example, we now have more technology-related tools than ever before. We are no longer limited to what we can do in our offices. Laptop computers, myriad handheld devices such as PDAs, BlackBerries, cell phones, and pagers allow us to stay connected "24/7" from practically anywhere.

And yet others have not been so quick to jump on the technology bandwagon and, in fact, have been highly critical of its success. One such critic was Peter Drucker:

Information technology so far has been a producer of data rather than a producer of information—let alone a producer of new and different questions and new and different strategies. Top executives have not used the new technology because it has not provided the information they need for their own tasks (quoted in Gates, 1999, p. 317).

This same message has been repeated often to emphasize the way information technology has been perceived—especially by executives in organizations.

To overcome these negative perceptions and ensure that information technology is used efficiently and effectively, Bill Gates (1999) suggests that CEOs become more informed about information technology. He says that CEOs should do three things (p. 318), and we believe that these same things apply to HR professionals. Thus, we have substituted "HR professionals" for "CEOs" in Gates' advice, as follows:

1. HR professionals should learn to view information technology as a strategic resource to help the business get the most out of its employees.

2. HR professionals should learn enough about the technology to be able to ask the right kinds of questions of the technology experts and then be able to determine whether they are getting good answers.

3. HR professionals should work in tandem with IT professionals to bring this knowledge to the table for deliberations and strategizing.

Gates (1999) goes on to emphasize that CEOs (and in our case, HR professionals) must recognize the strategic importance of technology and how it can enhance business initiatives. He further cautions that it is important to emphasize priorities; otherwise, staff will try to take on too many things and end up performing marginally in all of them (p. 324).

In the first four modules, we discussed emerging perspectives in human resource management; crafting HRM practices; strategic HRM competencies, roles and responsibilities; and measurement and metrics. Information technology has made an impact on each of these areas. In this module, we will discuss several ways that information technology has helped to change what the HR department does and how it does it. We will also discuss how HR professionals can use information technology to move from reporting transactional data to highlighting strategic data that is more useful to the organization. Finally, we will explore how data and information become goal referenced knowledge.

The first human resources information system (HRIS) product was introduced in 1970. In its early stages, it was merely an electronic record-keeping program. Later, a faster and more user friendly product, PeopleSoft, came on the market. Other programs such as Enterprise Resource Planning (ERPs) soon followed. The German firm SAP later became a competitor of PeopleSoft, and Best Software's Abra system became popular for small-company usage (Fitz-ens & Davison, 2002).

An HRIS is an integrated system designed to improve the efficiency with which HR data are compiled. In essence, an HRIS is used to collect and warehouse the organization's multitude of information from a number of different areas. This data warehousing allows managers, employees, and customers easy and more timely access to relevant information. One of the benefits of an HRIS is that the burden of many of the transactional activities has been eased, thus freeing up HR professionals to focus on more strategic and longer-term HR planning issues. Finally, major HRIS enhancements have given HR executives the ability to easily gather and report key metrics.

Mathis and Jackson (1999, p. 59) identified a number of uses of an HRIS. We added a few others and then developed figure 5.1, Primary Uses of an HRIS.

Figure 5.1 Primary Uses of an HRIS

Organizations use an HRIS for many purposes, including:

· Bulletin boards: Employees can access information on human resources policies, job postings, and training materials.

· Data access: Linked databases allow employees to access such things as benefit information, leave usage, and 401k balances

· Employee self-service: Employees can access and update their own human resources records, change or enroll in employee benefits plans, and respond to employment opportunities elsewhere in the organization.

· Extended linkage: Intranet and Internet linkages allow organizations to share data electronically with vendors (Mathis & Jackson, p. 60).

· Metric reporting: HR executives and other key executives can easily track key HR metrics such as turnover, cost of hire, benefit cost, and other metrics tailored to their needs.

One of the major criticisms of an HRIS relates to the fact that human resources and business information is constantly changing, making it difficult to get useful information from a database. Another is that data-mining tools within HR applications are still limited. Furthermore, data transfers from one database to another within the data management system are either limited or nonexistent. Until this loop is electronically closed, it will be difficult to access data for strategic analysis (Fitz-ens & Davison, p. 285).

HR departments continue to use technology to improve their own efficiency and effectiveness by showing savings in transactional HR work. There is, however, limited information available about how technology affects overall business performance. One of the often-cited reasons for the lack of business performance impact relates to cost and timeliness. It seems that many companies spend a great deal of time and money to implement information technology (IT) systems without realizing the cost benefit. On the other hand, a number of companies have been successful. Table 5.1 describes how some companies have used technology to improve business performance.

Table 5.1 How Companies Use Technology Strategically

We will continue with a brief discussion on the concept of information technology and data management shown in figure 5.2.

Figure 5.2 Information Technology and Data Management

Hold your cursor over each item for details.

Some definitions paraphrased from Wikipedia (2006).

Essentially, we can use information technology to help us collect, organize, manage, and access a great deal of disparate data and information. We do so by creating a data management system. This system contains a database, or even several discrete databases, for different types of information (e.g., HR planning and analysis; HR development; HR key metrics; staffing; compensation, and benefits, and so forth). Our simple model above shows a database with three different types of data: Data A, B, and C. Each databank (A, B, C) may also house data at multiple levels, much the same as way as the data are organized in our computers.

For example, let's call the HR development function Database A. Within that database, we could find specific information and data on topics such as:

· training needs assessments

· records of employee training

· succession planning

· career interests and experience

· effectiveness of training

Each of those levels contains additional information. For example, suppose we were interested in employee training. We could look at:

· Management

· types of training

· number of individuals trained

· training evaluations

· follow-up

· successful transfer of training

We can then drill down to each level within a database, or move horizontally to another database (for example, from HR development to HR planning and analysis and/or employee and labor relations) to access our various information needs. This process is called data mining, and it is at this stage that we turn basic data and information into knowledge and eventually goal-referenced knowledge (see figure 4.2 in module 4). To put it another way, we can make an analogy of a cafeteria menu. We take something from column A, something from column B, and something from column C to make a delicious meal! We will discuss this later when we provide a specific example of how one organization has done this.

The concept of e-learning has grown tremendously over the past decade. This growth can be attributed to enhancements in both hardware and software. The purpose of e-learning is to provide students with more flexibility for when and how they learn. In general, the learner uses a personal computer to access what they want or need to learn. The content may be delivered via online lectures, tutorials, performance support systems, simulations, job aids, games, and more.

Effective e-learning consists of a blend of several different methods. Organizations have greatly enhanced their ability to provide effective and efficient learning opportunities to their employees through the use of WANs (Wide Area Networks). Courses can be tailored to specific needs, and asynchronous learning is possible.

In the early stages of e-learning, technology was used more as an electronic database to house and manage essential business information. However, the lower costs resulting from ever-expanding technological enhancements now offer organizations new ways to use technology in an attempt to gain a competitive edge. One of the ways this happens is through e-learning. For example, according to John Chambers, "The biggest growth in the internet, and the area that will prove to be one of the biggest agents of change, will be in e-learning" (quoted in Rosenberg, 2001, p. xv).

Benefits and Limitations of E-Learning

According to Rosenberg (2001), the sheer volume of information that businesses must manage daily makes the need for learning more important than ever. Because there is so much information, however, and much of that information is constantly changing, organizations face an additional challenge. Old models of learning acquisition are inappropriate. New thinking about how we acquire knowledge and skill is necessary. We must also find new ways to deploy learning resources that can keep up with the knowledge economy (p. 3).

Rosenberg (2001) also says that most organizations, including training organizations, don't have an effective, broad-base e-learning strategy. They lack the strategic thread that holds it all together. For example, it is just as important for the learner to understand "why do it," not just "how to do it" (p. xvi).

Kelly Butler (2006) says that because the requirements of many jobs are expanding, employees need more flexibility to learn the new information. As a result, alternative methods of training are proliferating, creating a wealth of options for continuing education and certification. Online training is popular because of its low cost and user-determined pace. For example, trainees can:

· take as long as they need to complete various modules in a course

· start and stop when it is convenient for them

· use traditional tutorial models or online classes that offer Web broadcasts and other supplemental materials to help them learn more efficiently and effectively (this methodology gives them information about the return on investment of the different programs)

Finally, Rosenberg (pp. 30–31) describes benefits of e-learning as follows:

1. lowers costs

2. enhances business responsiveness

3. provides consistent or customized messages, depending on need

4. supplies timely and dependable content

5. allows people to learn 24/7

6. eliminates user "ramp-up" time

7. has universality

8. builds community

9. offers scalability

10. leverages the corporate investment in the Web

11. provide an increasingly valuable customer service

There is a growing body of evidence supporting the notion that quality training can have a positive impact on business performance. And yet there is also increasing evidence that changes in society, business, and technology will limit the impact of traditional training, making it essential to provide alternatives, such as e-learning.

Providing access to information that contains the collective wisdom of the organization is essential. In some instances, this can be done through e-learning. In others, it is more appropriate to use a knowledge-management system. Basically, knowledge management and e-learning are about knowledge acquisition. However, knowledge management refers to how the organization captures and deploys all relevant organizational information. E-learning, as described above, is more specific. In some cases, we have seen where e-learning has become subsumed under the organization's larger knowledge-management system.

One of the latest uses of information technology is knowledge management (KM). KM is the creation, archiving, and sharing of valued information, expertise, and insight within and across communities of people and organizations with similar interests and needs. There are basically three levels of knowledge management, as shown in figure 5.3.

Figure 5.3 Three Levels of Knowledge Management

Research suggests that those organizations that can provide e-learning and also build a sophisticated, integrated knowledge-management system will greatly enhance their competitive edge. This will further increase their chances of maintaining a lead over their competitors. HR professionals can add value to their organizations by becoming more knowledgeable in both and by helping their organizations build and implement both e-learning and KM systems.

In module 4, we interviewed Jeff Brody, director of talent management for Northrup Grumman. He spoke briefly about how he is using data to make informed decisions to achieve organizational goals. Let's look first at one of his PowerPoint slides, figure 5.4, which shows the HR mission and vision.

Figure 5.4 HR Mission, Vision, and Goals

Based on work by Jeff Brody, director of talent management for Northrop Grumman, 2006.

This slide shows the HR mission and vision with three primary goals:

1. Drive revenue, profit, and customer satisfaction.

2. Enhance morale and maximize retention.

3. Ensure operational effectiveness.

Furthermore, they intend to accomplish this through:

1. recruitment

2. employee relations

3. communication and training

They will use the following measures:

1. cycle time

2. engagement and attitudes

3. training utilization and relevance

Their operational focus is to:

1. ensure recruiting capability

2. provide tenacious customer support (employee advocate, facilitator of change and process)

3. foster and promote an inclusive culture

4. support continuous improvement, Six Sigma, and other programs

5. solicit and sponsor input and feedback

6. ensure an effective redeployment process

Now let's look at parts of this same slide, shown as figure 5.5, to see how we can turn data into goal-referenced knowledge.

Figure 5.5 Goal-Referenced Data

In this figure, we have focused on one of the major goals: ensure operational effectiveness. We can demonstrate an iterative process in which various levels and types of organizational data are transformed into information, knowledge, and finally, goal-referenced knowledge.

For example, we can collect data about recruitment through our staffing function (see figure 5.1). Within our HRIS system, we have accumulated data about several different activities in the staffing function:

· recruiting sources

· cycle time for filling vacancies

· job-offer refusal analysis

· offer-acceptance ratio

We can look at each of these activities and begin to develop a "staffing profile" that provides us with a wealth of information. We still have to make sense of all of this information and data, however, so that it will become useful knowledge and ultimately, goal-referenced knowledge.

Our next step is to look more closely at the kinds of data and information we have assimilated within each of the activities, under staffing. Let's start with recruiting sources. Some examples for the type of information that helps us to build our staffing profile are shown in table 5.2.

Table 5.2 Recruiting Sources

Our disparate data become information when we begin to see the relationships among the different pieces of data. We can continue this process by identifying the types of information that is critical as it relates to:

· cycle time for filling vacancies

· job-offer refusal analysis

· offer-acceptance ratio

As the process continues, this information makes another transformation into knowledge about what is going on in the staffing function. Finally, we arrive at the point where this knowledge can be tied back to a specific goal—in this case, to ensure operational effectiveness, thus completing the cycle.

Over the last decade, improvements to technology have created significant new opportunities for collecting and reporting workforce data. Managers are using enterprise resource planning (ERP) and data warehousing products to access data from their own organizations to track the progress of strategy execution. They use features like drill-downs and report-outs by area.

One of the most important considerations when designing and implementing such a system, however, is to ensure that strategy drives decisions about which metrics to collect and report, rather than the defaults the vendor has hardwired into the software. Huselid, Becker, and Beatty (2005, pp. 214–217) offer two pieces of advice:

· Many of the most important measures associated with strategy execution may not be currently available and will have to be collected.

· Keep a record of the decision processes used to determine your metrics. Be able to answer such questions as:

· Why have we chosen these metrics and not others?

· Which metrics did we try?

· How successful were they?

· Why or why not?

Jac Fitz-ens (2002) urges HR professionals to look beyond technology and focus on the result—not the process. He says that a number of technology experts have pointed out that technology is a tool—not a destination. These experts caution HR management about their growing concern regarding the misapplication of data results and suggest that they not focus too much on internal technology applications. The greatest opportunities, say the experts, lie in the area of expanding HR's technology-enhanced services toward the business of the enterprise. This is how HR can transform itself from an expense center to a business partner.

Ryder (2006) provides HR professionals with food for thought as he describes top trends in HR technology for 2006 and beyond. These are described in table 5.3.

Table 5.3 Top Trends in HR Technology

Excerpted from Ryder (2006).

References

Butler, K. (2006, June). ASTD, The buzz: Training from around the world. Excerpted from: Create your own classroom. Employee Benefit News, 20, 32. Retrieved June 26, 2006, from AOL.

Drucker, P. (1999). In Bill Gates, Business @ the speed of thought (p. 317). New York: Warner Books.

Fitz-ens, J., & Davison, B. (2002). How to measure human resource management (3rd ed.). New York: McGraw-Hill.

Gates, B. (1999). Business @ the speed of thought: Succeeding in the digital economy. New York: Warner Books.

Huselid, M., Becker, B., & Beatty, R. (2005). The workforce scorecard: Managing human capital to execute strategy. Boston: Harvard Business School Press.

Mathis, R.L., & Jackson, J.H. (1999). Human resource management (10th ed.). Mason, OH: Southwestern/Thomson Learning.

Rosenberg, M.J. (2001). E-learning: Strategies for delivering knowledge in the digital age. New York: McGraw-Hill.

Ryder, J. (2006). Excerpted from a presentation by the Society for Human Resources Management 57th Annual Discussion & Exposition, June 25–28, 2006, Washington, DC.

Wikimedia Foundation, Inc. (2006). Wikipedia: The free encyclopedia. (Definitions of some terms appearing in figure 5.2 of this module.) Retrieved June 23, 2006, from http://en.wikipedia.org/wiki.