Class: Human Resource Information Systems

Question 4.2 (20 Marks) The Tough Tyre Executive Committee are interested in your proposal for e-learning. However, before they approve it, they have requested that you explain both the costs and benefits involved. Write an email to the Executive Committee in which you detail both the direct and indirect costs, as well as the direct and indirect benefits, which would be involved in implementing an e-learning programme in Tough Tyre.

TOUGH TYRE GOES PAPERLESS Tough Tyre is not your average tyre and wheel supplier. Tough Tyre prides itself on customer satisfaction and supreme quality. With over 27 stores across the country, Tough Tyre stocks a wide variety of tyre brands at competitive prices and specialises in a range of services, including wheel alignment , tyre puncture repairs, fitment and installation, and even battery testing. The organisation is constantly growing, so it recruits new employees often. Each time a new employee joins the organisation he or she is required to complete forms in order to become an official employee'. The type of information requested usually includes the individuals' first name, last name, residential address, contact number, emergency contact details, banking information, marital status, passport or identity number, qualifications and disabilities. Mpho Dlamini is the HR administrator at Tough Tyre. She is responsible for recording and storing all this information. Over the past few years, managing the information of employees has become such a burden that the organisation's paper-based system is no longer adequate. Employee records are kept in a filing cabinet in Mpho's office. The records are not categorised or alphabetised. So, each time a record is requested, Mpho needs a day to find it. The HR manager has warned Mpho that she needs to find a way of organising and storing this information correctly, so it can be easily accessed. Mpho is aware that many organisations have adopted technology to change the way HR information is collected, stored and used. HR technology is increasingly being used by small, medium and large employers to meet the needs of their organisations. Mpho does some research and attends a seminar on human resource information systems (HRISs). She feels that Tough Tyre will benefit significantly by implementing an HRIS. According to her research, an HRIS can help automate and simplify tasks, reduce administration and record-keeping and provide management with HR information efficiently and accurately as needed. Although the system is very costly, Mpho is convinced that implementation of an HRIS is the key to resolving the organisation's administrative HR burden. She gathers all the information she has found and approaches Josephine, the CEO, to discuss the possibility of implementing such a system. Josephine, the CEO, is impressed by all the information Mpho has gathered. She feels that the organisation is changing and that technology will make administration much easier. After numerous meetings with HRIS experts, Tough Tyre decides to implement a comprehensive in-house HRIS system. Josephine is currently busy with a new client contract and is very busy. She does not have much time to assist Mpho with the implementation of the HRIS, so she allows Mpho to take control and implement the system. Mpho forms a project team with other employees in the HR department and an IT specialist. She invites Josephine and the senior managers to form a part of the project team as she feels that the support of top management and proper planning is essential in setting up an HRIS. Josephine and the senior managers choose not to form part of the project team as they are caught up with other business processes. The objectives of the task team are to assist the HRIS service provider in identifying the organisation's needs and to inform the HRIS service provider which specific modules to include. Mpho feels excited about the progress of the system so far and expects the new system to be up and running in three months. A few months later, the HRIS system has been implemented. However, the system is not effective. It focuses mainly on reducing Mpho's administrative burden and does not support any other HR functions. Many of the other HR staff are not trained to use the system correctly and feel negative about using the system. There has also been a flurry of complaints from employees, complaining that the HRIS jeopardises the privacy of their personal information. Josephine sets up a meeting with Mpho to discuss the reasons for the failure of the system. Tough Tyre has spent a lot of time and money on the system and wants to make sure that it has not wasted its money. (Adapted from: Warnich, S., Carrell, M.R., Elbert, N.F. and Hatfield, R.D., (2018) Human Resource Management in South Africa. Sixth Edition. Hampshire: Cengage Learning.)