Human Resource Management Assignment 2

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Week6Case14_WorkplaceSafetyHealthandSecurity.pdf

7 2

14 Workplace Safety,

Health, and Security

Case 14.1. Building a Human Resources Information System While Protecting Health Information From Cyber Attacks Kendra Lewis was hired right out of college to support the human resources staff at an insurance company in Orange County, California. It took Kendra about a year to become familiar with all the paper forms that were completed by the employees of the insurance company. One day her boss, Sam Cooke, told her they were going to develop a Human Resources Information System (HRIS). Sam had very little idea what was involved in an HRIS; he had only heard about the concept at a conference that he recently attended. So Sam told Kendra to research what was involved in such a system.

Kendra found that the age of technology had created the need to create an HRIS to effectively coordinate everything related to human resources. A modern HRIS would be a software solution that would create a database whereby her human resource department could collect employee information; would create reports and analy- ses about employee information; would store company-related documents, such as employee handbooks; would track applications and résumés for open positions; and would complete integration with payroll and other company financial software and accounting systems so that employees would be paid properly.1 A modern HRIS con- tains information about which benefits an employee selects; status changes, such as promotions at work; and personal information.

To help track applicants and résumés for open positions, a modern HRIS automates the application process by providing a standard application to candidates by way of the Internet. The application and other related documents from the applicant can then be stored on the HRIS. The search committee filling the open position can then review applications online, using a company’s Intranet system. Search members can use keyword searches to provide the HR manager with a first cut of suitable applicants for a specific job.

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Chapter 14 • Workplace Safety, Health, and Security 7 3

The amount of information flowing through an HRIS regarding protected health information (PHI) is increasing rapidly. Since Kendra’s insurance company is growing rapidly, the data will grow accordingly given that the number of employees and their dependents who apply for health care will increase on the company payroll.

Employee privacy regarding health insurance is an important issue when develop- ing an HRIS. Human resource professionals like Kendra will need to be trained in the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Privacy, Security and Breach Notification Rules. As defined by the Office of Civil Rights, the HIPPA Privacy Rule protects the privacy of individually identifiable health information. The HIPAA Security Rule sets national standards for the security of electronically pro- tected health information. The HIPAA Breach Notification Rule requires notification following a breach of unsecured protected health information.2 Since Kendra and the other HR office personnel will have electronic access to all employee information, the need for following the rules of HIPPA will be increased, since it can be much harder to protect electronic files than a paper file.

HR professionals need to understand that the protected health information (PHI) entrusted to them is to be confidential at all times. Cautious employees are good employees to hire in a human resource department. The need for trusted and confi- dential employees in HR is critical.

HR should conduct a risk assessment to start the process of protecting the PHI. The assessment can include protective measures already in place and those that are missing. Part of the assessment must include an assessment of third-party suppliers, such as the company that produces the employee checks or the company hired to be the expert at managing the employer-sponsored health-care and retirement programs. Kendra’s company uses BBG Health Service Provider to develop the company health- care program and collect all employee funds related to health insurance. Kendra’s company also uses Deluxe Check Writing Services to produce employee checks. Deluxe and BBG are two examples of very important third-party suppliers to the human resources department. Providers such as Deluxe and BBG must ensure the safety of the employee data they use while providing their services.

Kendra found that an HRIS will require many high-tech solutions, such as soft- ware selection and updates. Cyber security is the use of tools and processes to protect organizational computer systems and networks. Professional and amateur hackers, terrorist organizations, and even some governments are working to break into com- pany computer systems for a variety of reasons. In 2015, two major breaches of U.S. government databases holding personnel records and security-clearance files exposed sensitive information of at least 22.1 million people. Exposed personal information was hacked about federal employees, contractors, their families, and friends. U.S. offi- cials have privately said that the intrusions were traced to the Chinese government.3

Although many high-tech solutions will be needed to safeguard employee data, some simple solutions such as strong passwords and changing passwords on a regular basis can help protect the HRIS and PHI. Employees and HR professionals can also be careful not to leave unsecured laptops with employee data in unlocked areas.

Overall, an HRIS will allow the company to reduce its own paper needs, save time, reduce stress, and create a more efficient process of helping employees with their sal- ary and benefits. Kendra proposed to her boss that a committee should be formed so that the system reflects the needs of all the stakeholders of the organization.

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Part V • Protecting and Expanding Organizational Reach74

Case Questions

1. What are the goals of a human resources information system?

2. In comparison, what is the goal of protected health information?

3. Why do HR professionals need HIPPA training?

4. Why are third-party suppliers a potential security risk?

5. What are some simple solutions to help reduce cyber attacks on PHI?

6. Who should Kendra consider to be members on the committee to develop the HRIS?

Case 14.2. Trends and Issues in HRM: Future Trends in Human Resource Management Past issues related to HRM will always be important to the future issues in HRM. Topics such as legal issues involving the rights of employees, recruiting employees, matching employees with jobs that fit their skill set, selecting employees, develop- ing and training employees, evaluating the performance of employees, compensating employees, providing employee health-care and retirement benefits, and developing an HRIS to maintain all that information will all need to continue to improve. A grow- ing area of importance to HR is providing workplace safety. Workplace safety is an area that is of great concern; we want our employees to feel secure while performing their jobs. We also want to make sure our employees are healthy so they can perform their jobs and enjoy their lives.

From an HRM perspective, the goal might be to become a more powerful player in the management of the organization. HR would like to be consulted on strategic issues that are often associated with the finance or marketing areas. However, in most companies, HR will always be considered a staff area as compared to the more active line areas, such as marketing or finance. Still, with the increased diversity of our workforce and the changes needed in employee skills, HR will certainly be a very busy area of a company.

HR will be busy with topics such as how to incorporate technology into its func- tions, how to analyze employee data produced by technology to help make HR decisions, how to use social media to find talented employees, how to increase our understanding of how diversity impacts our workforce, and how to address gener- ational issues in the workplace caused by having up to five generations of people working together.

These issues will certainly impact HR functions at all organizations. Prospective employees will use social media (such as LinkedIn and Facebook) to find job openings.

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Chapter 14 • Workplace Safety, Health, and Security 7 5

Prospects will use social networks to develop relationships and a network of people to help find job matches.

Prospective employees will have to be persistent in their search to find the com- pany that is a good match. Employers will find it hard to stay competitive in their industries as technology changes the workplace. For example, Hallmark Cards in Enfield, Connecticut, will lay off 570 employees in 2016 and move its distribution center to a single location in Liberty, Missouri.4 Only 400 employees were offered in Missouri. Human resources will have to be involved in processing the employees either to work in Missouri, to be retrained to work in a new industry, to prepare for an early retirement, or to be helped through the unemployment process.

People will have to acquire skills that are needed by employers. Increasingly, com- panies will contract out to training organizations that specifically train employees in skills such as computer programming. People will often train themselves for free by completing massive open online courses (MOOCs) to learn specific skills. The millen- nial group will use their desire to learn and use technology to enter companies at the same time as baby boomers exit companies and head into retirement.

The development of HRIS using massive computer power will increasingly replace the paperwork typically associated with human resources. The only way to avoid being eliminated by the computer revolution is to join it by making sure each one of us is computer educated in our own career.

A great concern is the safety, health, and security of our workers while on the job. The following workplace incidents, unfortunately, occurred with the past few months of writing this text. A newscaster and her cameraman were killed by a bitter ex-televi- sion reporter 2 years after he was fired.5 A student killed nine people when he attacked a building at Umpqua Community College in Roseburg, Oregon.6 Fourteen people were killed and 22 injured in a workplace massacre at the Inland Regional Center in San Bernardino, California.7

People can become aware of workplace safety issues much faster than in the past. The popularity of social media sites, such as Facebook and Twitter, have allowed peo- ple to be aware of situations while they are happening. Social media can assist com- panies in dealing with a situation where employees need information quickly and accurately. Alert systems can provide immediate warnings to all people signed up to receive alerts.

Violence in the workplace requires HRM to be proactive and to have policies and procedures in place in case a violent situation does occur. A written policy addressing workplace violence is the best preventive policy. It is important for HR people to take action quickly and to address any individuals at work who show potential violent behaviors and actions.

Organizations need to have a formal grievance process at work to allow frustrated employees to air their complaints. The process will take time to develop, and it most likely will involve many steps, since a well-written policy makes sure the employee meets with all parties involved before reaching a formal grievance hearing. Demotions, firing, and layoffs need to be handled in a professional manner and in all cases should include helping the employee find a new place of employment that might be a better fit for his or her talents.

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Part V • Protecting and Expanding Organizational Reach76

Case Questions

1. Will HR become more, less, or stay the same in regard to its importance within companies?

2. What is the role of technology in the future of human resources?

3. What are some areas of HR that will be important in the future of HR?

4. What other areas of HR do you envision as being important in the future of HR?

5. Research workplace violence that has happened in your own local area within the last year.

Notes

1. http://humanresources.about.com/od/glossaryh/a/hris.htm. 2. http://www.hhs.gov/ocr/privacy/. 3. Nakashima, Ellen, “Hacks of OPM Databases Compromised 22.1 Million People, Federal

Authorities Say,” The Washington Post, July 9, 2015.

4. Porter, Mikaela, and Mara Lee, “Hallmark to Close Enfield Warehouse, Eliminate 570 Jobs,” Hartford Courant, July 7, 2015, http://www.courant.com/business/hc-enfield-hallmark-ware house-close-20150707-story.html.

5. Sandoval, Edgar, Jason Silverstein, and Larry McShane, “TV News Reporter, Cameraman Are Fatally Shot During Live Broadcast in Virginia; Suspected Shooter Posts Video of Attack, Then Kills Himself,” New York Daily News, August 27, 2015.

6. Turkewitz, Julie, “Oregon Gunman Smiled, Then Fired, Student Says,” New York Times.com, October 9, 2015.

7. Sanchez, Ray, Michael Martinez, and Doug Criss, “‘Pray for Us’: Calls, Texts Relay Horror of California Mass Shooting,” CNN.com, December 2, 2015.

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