Case Study Menpheb has just three employees in its Human Resources Department, and some problems arise simply because of the large number and variety of department responsibilities (from hiring and firing to managing health benefits) as well as the number of people with whom Human Resources interact. A lack of integration among all departments often results in inaccurate, out-of-date, and inconsistent information. As with Menphebs other departments, Human Resources information systems are not well integrated with the companys other information systems. The department relies heavily on paper records and a manual filing system, which creates problems because information is not readily accessible or easy to analyse. The Human Resource Departments recruiting, hiring, and post-placement processes would operate more efficiently with an integrated information system. Recruiting Process When a department within Menpheb has an opening for a new employee, the department supervisor communicates this need to the Human Resource Department by filling out a paper job vacancy form that describes the position, lists the qualifications a candidate must have, specifies the type of position (temporary, part-time, full-time, or internship), and states when the position will become available. Using this information, Human Resources gets final approval from the president of Menpheb to begin the recruiting process. Because there is no central information system, the details on the job vacancy form are frequently inconsistent among, and sometimes within, departments. For example, the requirements for a clerical position in one department includes experience with Microsoft Word, while in another department, the specification is for experience with Microsoft Office. Usually a job is initially posted internally so current employees have the first opportunity to apply for the position. If no current employees are acceptable for the position, then Menpheb posts the position externally. Problems can occur throughout Menphebs recruiting process. First, the description of the required job qualifications may be incomplete or inaccuratesometimes because the supervisor is in a hurry, sometimes because the supervisor is not aware of all of the functions required for the position, and sometimes because the supervisor assumes that all candidates will have certain basic skills. Second, if the job vacancy form is lost or not routed properly, the Human Resources Department will not know that the position is available, while the supervisor assumes that the paperwork is in process. When this happens, the department can end up shorthanded, creating productivity issues as well as the possibility of tension or animosity between the departments. Obviously, this problem is more likely to occur when job openings are circulated by paper. With an integrated information system, job information is available immediately and is easier to monitor. Another serious recruiting problem related to a paper-based hiring process is the potential loss of a good candidate due to drawn-out hiring practices or lost data. Although Menpheb does not use recruiting agencies or Internet job sites such as Monster.com to find candidates, it does use several other methods. The company publishes its job vacancies on the companys Web site, in local newspapers, and, in the case of management positions, in national publications. In addition, a representative from the Human Resources Department attends career fairs and recruits on college campuses for prospective candidates. Occasionally, referrals are made by other Menpheb employees, and sometimes individuals searching for open positions at Menpheb send unsolicited rsums. Filing and keeping track of rsums and applications is an ongoing challenge. Menpheb has dozens of jobs with different titles and descriptions, and the company receives dozens of rsums and applications each day. The Human Resources Department must classify and file all applications and rsums according to the appropriate description. For example, if the rsum of a mechanical engineer is accidentally filed with rsums of candidates applying for jobs in the accounting department, the mistake may not be discovered in time to include the engineer in the search process. In this case, Menpheb may not hire the best person for the engineering position, and the mistake might damage Menphebs competitiveness as well as its reputation. Keeping the applicants data on a paper form means that retrieving the applicant data and using it to evaluate candidates is also challenging. To generate a list of potential candidates, Human Resources evaluates the rsums and applications it receives in response to a job posting; it also reviews applications that have been on file for less than a year. These rsums and applications must be photocopied and then circulated through the department making the job request. Frequently, more than one person in the requesting department reviews the applications, and because the applicant data are on paper, managers review the applicant files sequentially, slowing the review process. The Interviewing and Hiring Process At Menpheb, the requesting department develops a short list of candidates for the position by selecting up to three applicants, based on the data provided by the Human Resources Department. Human Resources contacts the candidates on the short list, schedules interviews, and creates a file for each candidate. A candidates file includes a form that shows when the application was received, the position(s) applied for by the candidate, and the date and time of any interviews. If this is not the first time the candidate has applied for a job with the company, the form indicates the more recent status of the candidate: whether the candidate was interviewed and rejected, whether the candidate rejected a job offer, and so on. If a candidate accepts the interview offer, the Human Resources Department makes the arrangements for the job candidate, including travel arrangements and a schedule of interview activities. A representative from the Human Resources Department conducts an interview that includes a discussion of the applicants experience and questions relevant to the position for which the candidate has applied. The supervisor of the department in which the position exists also interviews the candidate, and other employees in the department are usually given time to talk to the candidate as well. For most professional positions at Menpheb, the candidate is interviewed by the plant manager and, frequently, the company president. After the initial interview process, a Human Resources staff member updates the candidates file to indicate whether he or she is still a possibility for hire. In some cases, a second interview is scheduled. Once someone in Human Resources has interviewed all the candidates on the short list, a representative of the Human Resources Department and the supervisor of the requesting department rank the candidates on the short list. If there is an acceptable candidate, the Human Resources employee makes that person a verbal job offer over the phone. If the candidate accepts the verbal offer, a written offer letter is sent, which the candidate must sign and return. Once the candidate formally accepts the written offer, his or her file is again updated, showing that the candidate has accepted the offer. The Human Resources person then schedules a background check and drug test for the candidate, determines the employees start date and makes plans for the new employees orientation session. If no acceptable candidates were found, or if none of them accepts the job offer, then the process must be repeated, which at a minimum will require the development of a new short list but may involve starting over with a new job posting. Many of Menphebs problems in the interviewing and hiring process have to do with information flow and communication. Menpheb does not have group appointment calendar software, which would allow Human Resources staff to easily find a time when all key personnel would be available to interview a candidate. A group appointment calendar (available in email systems and ERP systems such as SAP) allows users to check others calendars to schedule meetings. Without such a calendar tool, scheduling interviews is frequently a cumbersome process, requiring the Human Resources employee to coordinate the interview schedule between the candidate and the appropriate personnel at Menpheb. Because this is done by email and phone, it can take days and sometimes weeks to schedule an interview. A similar problem occurs after the interviews have been completed. Gathering feedback from all involved parties and ranking the candidates takes time and may require multiple meetings. Managing the travel arrangements and reimbursing candidates for their travel expenses are also cumbersome tasks. More than once, Menpheb has lost a promising candidate to another company because of delays in the Menpheb interviewing and hiring process. Menpheb hires a human resources consulting firm to perform drug tests and conduct background checks to verify that candidates have not falsified any information and do not have serious criminal records. Menpheb outsources this work because of the special skills required. If the background check and drug test are satisfactory, this information is added to the candidates file, and the job offer stands. If the consultant finds evidence of falsified information or legal troubles or the candidate fails the drug test, the file is likewise updated, and the job offer is rescinded with a written explanation. On a new employees first day of work, he or she attends an orientation meeting, which includes completing additional paperwork covering employment terms and conditions, tax withholding, and benefits. All Menpheb employees must sign a form that states that the employee has been given a copy ofand agrees to abide bythe companys policies and procedures. The new employee must complete an IRS form, which tells the employer the correct amount of tax to withhold from the employees paycheck. Next, a Human Resources representative reviews Menphebs benefits plan. Menpheb offers a comprehensive benefits plan that gives employees a range of choices for healthcare plans, life insurance, retirement plans, and medical savings accounts. The employees dependents may also be covered under Menphebs health insurance plan. If the employee elects dependent coverage, then the Human Resources Department must obtain basic information about each dependent to include in the employees file. Because employees must provide a significant amount of detailed data to properly manage compensation and benefits, it is not surprising that Menpheb frequently has problems enrolling new employees in the correct benefits plans and establishing the proper payroll deductions. It can often take months to manage the new employees compensation and benefits correctly. The enrolment issues can generate many time-consuming phone calls to Human Resources managementcalls that would not be needed with an integrated system. Human Resources Duties After Hiring A human resources department has responsibilities that continue beyond the hiring and job start of an employee. The human resources department must maintain an ongoing line of communication with the employee and his or her supervisor to make sure the employee is performing well. Menpheb, like most companies, issues performance evaluations to new and current employees. As part of the process, the supervisor performs an evaluation and reviews it with the employee. After the review, the supervisor may modify the evaluation, which both the supervisor and the employee then sign. The employee may also submit a written response to the review, listing any disagreements or explanations. The employees department manager is expected to review the performance evaluation and employee response, and may add a separate written comment. The completed package is then forwarded to the Human Resources Department, where all documents become part of the employees file. These files are critically important if an employee fails to perform adequately over a period of time. If an employee must be terminated, the company needs sufficient documentation to demonstrate that the termination is warranted; otherwise, if the employee sues the company for wrongful termination, the company may have problems substantiating the termination decision. Because Menpheb does not have an effective information system, it is difficult to manage performance evaluation data. This makes it more challenging for the Human Resources Department to identify problems with an employee and take corrective action (such as job performance counselling or a transfer) before the problems lead to termination. With Menphebs paper-based system, an employees file can be viewed by only one person at a time, and it is possible to lose track of an employees filetemporarily or permanently. Also, it is difficult to maintain proper control of sensitive personal information when it is maintained in paper files. Employee turnover can be a significant problem for a company. The cost of hiring an employee has been estimated from thousands of Ghana Cedis to over Gh20,000. When evaluating the cost of hiring an employee, a company should consider both the direct costs of hiring an employee and the less tangible costs that occur during a new employees first year or so. For example, while new employees are learning their jobs, other employees have to take time from their normal jobs to train them, which can negatively impact their productivity. Another cost that is difficult to quantify is an employees experience and job knowledge, which is lost when he or she leaves a company. For example, if a purchasing manager leaves a company, then all of the managers knowledge about supplier relations may be lost. The company would have records of the contracts signed with various suppliers, but details of the negotiations that led to each contract may not be documented. Such details can be crucial in successfully negotiating the next contract. The manager may have developed good relations with a certain supplier and know whom to contact when problems arise. These relationships are not specified as part of the purchasing manager position but accrue over time with the individual holding the position. When companies experience high rates of turnover, they lose knowledge and skills that may be crucial to keeping them competitive. Employee turnover is strongly tied to job satisfaction and compensation. If employees have satisfying jobs and are well compensated, they are less likely to leave the company. Human resources can help maintain a satisfying work environment through a number of means, such as by holding training programs for supervisors and managers, conducting periodic employee satisfaction surveys, and gathering data from employee exit surveys. Human resources also has a critical role to play in compensation, which should be related to the skills and tasks required by the job and the performance of the employee. One important function of a human resources department is to make sure compensation levels are competitive and are applied fairly to all employees. Failure to do so can result in high rates of turnover as well as discrimination lawsuits.

QUESTIONS

1. Based on your narrative above, create a strategy for an enterprise-wide system implementation based on appropriate theory and relevant use cases for Menpheb. [30 marks],