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Improving Human Resource Management Capability in a Higher Education Institution through Implementation of a Improving Human Resource Management Capability in a Higher Education Institution through Implementation of a Computerised HRMS. - Lessons from the UWI Presentation to ACHEA Conference Raymond Eytle u Brigitte Collins u

Background u Efficient and effective Human Resource Management in Higher Education is critical to Background u Efficient and effective Human Resource Management in Higher Education is critical to ensuring sustained Quality and Competitiveness of any institution. u Effective Implementation of an appropriate Computerised Human Resource Management System is critical to enhancing the organisation’s Human Resource management capability and service delivery

Background u Effective implementation of such a major “Enterprise Administrative System” is a very Background u Effective implementation of such a major “Enterprise Administrative System” is a very complex undertaking, and the Higher Education environment has some added complexities. u The tradition has been for the focus to be on technical implementation issues.

Background u The functional user, usually administrative or Management personnel, now plays a key Background u The functional user, usually administrative or Management personnel, now plays a key role in implementing contemporary systems. u There are many lessons to be learnt from the perspective of functional Human Resources Personnel in the implementation process

The Human Resource Management System at UWI u u The Acquisition and Implementation of The Human Resource Management System at UWI u u The Acquisition and Implementation of a Computerised HRMS was not like buying Microsoft Office at the Computer Store and installing it. - It started with a vision.

Vision of Human Resource Function -1 HR focus shift from Administrative to Strategic, Facilitative, Vision of Human Resource Function -1 HR focus shift from Administrative to Strategic, Facilitative, Consultative and Developmental u Improved HR Operational efficiency and effectiveness in HR, in support of University Mission and Objectives. u

Vision of Human Resource Function - 2 u HR as a central source of Vision of Human Resource Function - 2 u HR as a central source of timely and accurate data to support processes, such as v v v v Workforce Planning and Analysis, Position Management, Recruitment, Staff Training and Development, Compensation Management, Skills/Competencies Career Management, Industrial Relations,

Vision of Human Resource Function - 3 v HR Processes which vput information at Vision of Human Resource Function - 3 v HR Processes which vput information at the line management level vmake data accessible to individual customers for the specified purpose of inquiry or change vare automated vallow for re-engineering areas of functionality

Our HR Direction. -1 u A highly efficient HR Service to the University/ Campus Our HR Direction. -1 u A highly efficient HR Service to the University/ Campus by developing a and implementing improved and efficient processes and procedures based on functions and customer needs and not on hierarchy v facilitating informed and timely decisionmaking v

Our HR Direction. -2 v Auditing processes and practices for continuous improvement v Developing Our HR Direction. -2 v Auditing processes and practices for continuous improvement v Developing plans and programs HR development using sound data analysis techniques

Our HR Direction. -3 u Regarding process improvement as ongoing, taking account of changing Our HR Direction. -3 u Regarding process improvement as ongoing, taking account of changing needs and new technology, as it emerges u Using appropriate technology - electronic mail, intranet, internet, document management - in order to improve communication and data access across campus.

Our Focus - Process Improvement u Structured approach u Positive impact on quality of Our Focus - Process Improvement u Structured approach u Positive impact on quality of services u Meet or exceed customer’s expectations u Add value -- Staff, Students, Campus/ University, Public

Our Challenges - External v Financial constraints · Rapidly changing technology · Increasing competition Our Challenges - External v Financial constraints · Rapidly changing technology · Increasing competition · Customers (Students and Regional Governments ) being more demanding and requiring higher levels of accountability and performance.

Challenges- Internal u Customer dissatisfaction with unavailable, incorrect and inconsistent information u Redundancy of Challenges- Internal u Customer dissatisfaction with unavailable, incorrect and inconsistent information u Redundancy of activities-lengthy processes u Structure and decision-making on organizational hierarchy rather than on process and function u u Decision-making authority either too centralized or too bureaucratic

Challenges- Internal u “Common & consistent practices” are not part of the culture v Challenges- Internal u “Common & consistent practices” are not part of the culture v Highly autonomous organizational units v Old systems should accommodate all differences STANDARDS v No incentives for consolidation of systems & practices

Challenges- Internal u Strong Culture of Tradition and Custom and practice. u Hierarchy of Challenges- Internal u Strong Culture of Tradition and Custom and practice. u Hierarchy of Approvals u Redundancy of information u Organizational units reluctant to change

Challenges Identified-UWI -1 u No Executive Commitment to Radical Change u Inadequacy of Resources Challenges Identified-UWI -1 u No Executive Commitment to Radical Change u Inadequacy of Resources u The process to change Ordinances, Regulations and Collective Agreements u Laws, Custom and Practice.

Challenges -UWI -2 u Multiple locations and cultures u Multiple health plans u Multiple Challenges -UWI -2 u Multiple locations and cultures u Multiple health plans u Multiple vacation plans u Multiple unions u Wide variety of job groups & pay practices

Challenges -UWI-3 Resistance to Change Inertia v Lack of objectivity v Genuine concern v Challenges -UWI-3 Resistance to Change Inertia v Lack of objectivity v Genuine concern v Political reasons v v v v High comfort level Success History Value Concern Scorn

How Did We Get There? u Piece-meal and Hierarchical /Departmental approach to development of How Did We Get There? u Piece-meal and Hierarchical /Departmental approach to development of processes and procedures. This resulted in: v Separate Personnel Administration Systems evolving based on national and Campus situations v Various sub-systems were developed to support specific functions, based on group/ organizational differentiation within the Organization

How Did We Get There u Original assumptions that are no longer valid How Did We Get There u Original assumptions that are no longer valid

Options Considered u u Radical Re-engineering of work processes based on functionality and current Options Considered u u Radical Re-engineering of work processes based on functionality and current available technology phased process change

Opportunities for Change University Governance and Strategic Plans and Operating plans have all identified Opportunities for Change University Governance and Strategic Plans and Operating plans have all identified current process weaknesses and the need for change. u availability of successful HRMS technology which is process-oriented u

Re-Engineering - Definition “. . . the fundamental rethinking and radical redesign of business Re-Engineering - Definition “. . . the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed. ” Hammer & Champy

People. Softat UWI People. Softat UWI

Peoplesoft HRMS at UWI u Before system was purchased a review and analysis was Peoplesoft HRMS at UWI u Before system was purchased a review and analysis was done to determine the Human Resource information and process requirements. u Peoplesoft HRMS was acquired by UWI in 1995 and implementation has been on-going in phases since.

Peoplesoft HRMS at UWI u A RFP was prepared and responses from vendors were Peoplesoft HRMS at UWI u A RFP was prepared and responses from vendors were judged by a multi-disciplinary team on the following v v v The general fit of the system -un-customised to fill the defined needs Security of Data User-friendliness-query and report writing Cost and Maintenance Customer Support and Training

Peoplesoft HRMS at UWI u Highlights of the System Comprehensive functionality v Process-oriented v Peoplesoft HRMS at UWI u Highlights of the System Comprehensive functionality v Process-oriented v User driven v v Client-Server moving towards n-tier architecture v Security at several levels v GUI - Windows at client end v Easy interface with Microsoft Office v User-friendly Query and Reporting Capability - Crystal

Peoplesoft HRMS at UWI u Implementation Team both Technical and Functional. u Users play Peoplesoft HRMS at UWI u Implementation Team both Technical and Functional. u Users play a major role in implementation process u Increasing capabilities of new Versions Resource issues

Peoplesoft Functionality Payroll Career Planning HR Audit Base Benefits Administration Recruitment Position Management Succession Peoplesoft Functionality Payroll Career Planning HR Audit Base Benefits Administration Recruitment Position Management Succession Planning Salary Competency Administration Management Administer Personnel Training Administration Position/ Fund Acctg Health and Safety Industrial Relations Reporting Query

Process Objectives · Release of personnel from routine-non value added tasks to Developmental areas Process Objectives · Release of personnel from routine-non value added tasks to Developmental areas such as planning, training and staff development, ongoing process review · Better monitoring of performance through review of reports · Framework in place for the future

Process Objectives u Decision-making-: · · · De-centralised : At the Department level Limit Process Objectives u Decision-making-: · · · De-centralised : At the Department level Limit required approvals Electronic signatures and Authority Quicker decision-making Timely, consistent, accurate and “just-enough” information. Improved efficiency: elimination of manual processes · removal of redundant processes and process steps, ·

Process Difficulties u u u Multiple forms with redundant data Dual data entry, inconsistent Process Difficulties u u u Multiple forms with redundant data Dual data entry, inconsistent information Poor communications Much activity and no valueadded Expensive Error Prone

Peoplesoft HRMS at UWI u Before system was purchased a comprehensive review and analysis Peoplesoft HRMS at UWI u Before system was purchased a comprehensive review and analysis was done to determine the Human Resource information and process needs.

Peoplesoft HRMS at UWI u A RFP was prepared and responses from vendors were Peoplesoft HRMS at UWI u A RFP was prepared and responses from vendors were judged by a multi-disciplinary team on the following v v v The general fit of the system -un-customised to fill the defined needs User-friendliness-query and report writing Security of Data Cost and Maintenance Customer Support and Training

Peoplesoft HRMS at UWI u Main Highlights of the System v Comprehensive covering most Peoplesoft HRMS at UWI u Main Highlights of the System v Comprehensive covering most strategic and operational requirements current and future v User Friendly – GUI - Windows at client end – Easy interface with Microsoft office v Simple Query and Reporting Capability – Crystal v Security

Peoplesoft HRMS at UWI u Implementation Team both Technical and Functional. u Users play Peoplesoft HRMS at UWI u Implementation Team both Technical and Functional. u Users play a major role in implementation process u Increasing capabilities of new Versions Resource issues

Process Review and Implementation Strategies -1 u Increase emphasis on process -- clearly identify Process Review and Implementation Strategies -1 u Increase emphasis on process -- clearly identify Centre/Campus - reengineer, standardize where possible. Design processes that can perform well across organizational boundaries. u Replace obsolete systems. u Re-engineer systems that will not be replaced.

Process Review and Implementation Strategies 2 u Single point of entry for employee data. Process Review and Implementation Strategies 2 u Single point of entry for employee data. u Ad hoc query, report and analysis capabilities. u Employee data immediately available to superviso u Promote uniformity. u Reduce paperwork. u Process improvement as ongoing, taking of changing needs and advantages technology, as it emerges. accou of new

Process Review and Implementation Strategies -3 u Minimum Customisation u Common standards within each Process Review and Implementation Strategies -3 u Minimum Customisation u Common standards within each campus and across campuses for data, reports, policies and processes. u User focus u Team approach (Functional/Technical) u Provide information for Data based decision making at all levels.

Process Review and Implementation Strategies u Responsibility for an action should reside -4 closest Process Review and Implementation Strategies u Responsibility for an action should reside -4 closest to the place most affected. u emphasis on effective post-action audits u build controls into the System where possible. u Integrate the use of E-mail into processes, both for messages and to convey documents.

Process Review and Implementation Strategies -6 v Focus on common standards within each campus Process Review and Implementation Strategies -6 v Focus on common standards within each campus and across campuses for data, reports, policies and processes. v Shorten the cycle time for processing transactions by at least 60%. Achieve this by reducing: the number of steps, manual effort, the number of handoffs, the number of authorizations and by eliminating wasteful and non-valueadding activities.

u Issues - reasons for implementation delays v Lack of senior management commitment v u Issues - reasons for implementation delays v Lack of senior management commitment v Lack of adequate implementation budget v Lack of dedicated full-time project team project management v technical team v functional user involvement v v Lack of adequate technical infrastructure

Success Factors u Executive Sponsor v u University Registrar’s relentless efforts, direct involvement Implementation Success Factors u Executive Sponsor v u University Registrar’s relentless efforts, direct involvement Implementation Budget Dedicated project management v Presented realistic implementation budget v

Success Factors u Establishment of University team (across the campuses) Functional Analysts v Systems Success Factors u Establishment of University team (across the campuses) Functional Analysts v Systems Analysts v Project Coordinators v Database Administrators v u Adequate technical environment Proper database servers on each campus v Replace/acquire client machines v Address network infrastructure issues v

Implementation Overview u Mona implementation v focus for initial implementation v addressed technical, human Implementation Overview u Mona implementation v focus for initial implementation v addressed technical, human resources issues v standardize processes across HR departments business process review v public relations drive newsletters v presentations (deans, department heads, unions) v

Implementation Overview u Cave Hill v lack of HR functional user involvement/ ownership v Implementation Overview u Cave Hill v lack of HR functional user involvement/ ownership v leveraged from lessons learnt at Mona results of BPR exercise v user procedures v u St Augustine v total lack of interest until payroll and Y 2 K became an issue

Lessons - Opportunities Project management and Planning u Training and Development u Business Process Lessons - Opportunities Project management and Planning u Training and Development u Business Process Review and Reengineering u

Functional Considerations u Involved functional users at ALL stages - one reason for success Functional Considerations u Involved functional users at ALL stages - one reason for success u Obtained functional user buy-in early u Ensured that dedicated functional users were part of core team identify and obtain best talent v full-time dedicated users to the project is very important but almost never attainable. v

Functional Considerations u Payroll v Decision to use People. Soft - workshop at Cave Functional Considerations u Payroll v Decision to use People. Soft - workshop at Cave Hill involving Payroll & Benefits representatives from all campuses in June 1998 prior to PS, each campus operated independently v Pro - Integrated HR/Payroll system v Con - Required customization - Taxes, payment methods v v On-site Functional Training Introduction to HR v Introduction to Benefits v Payroll I and II v

Functional Considerations u Urgent customizations v v v National Id Number Net pay distribution Functional Considerations u Urgent customizations v v v National Id Number Net pay distribution methods Calculation of taxes Tax reporting General Ledger Interface Annual Step Increase

Functional Considerations u Implementation Vanilla testing v Standardize across campuses v Salary plan, earning Functional Considerations u Implementation Vanilla testing v Standardize across campuses v Salary plan, earning codes – Initial “M” for Mona , “C” for Cave Hill and “S” for St. Augustine v Attempt to standardize pay cheques & payslips v What to standardize and what not to? – Decision not to standardize Paygroups, Earnings Programs & Benefit Programs. v Testing of customizations v End user training v Parallel run v

Lessons Learnt u Underestimated and Undercommited Resources Human v Physical v Financial v Unrealistic Lessons Learnt u Underestimated and Undercommited Resources Human v Physical v Financial v Unrealistic Expectations u Unclear decision making framework u Suspicion and skepticism u

Lessons Learnt u University approach u Communication u Don’t Compromise u If we had Lessons Learnt u University approach u Communication u Don’t Compromise u If we had to do it over again? v First phase should include core HR and Payroll

What is Required? Pro-active and process driven approach to Implementation u Well defined strategy What is Required? Pro-active and process driven approach to Implementation u Well defined strategy and plan for change and change management u Synergistic team with accountability ownership, and LEADERSHIP! u

What else is Required u u u Networking, benchmarking and external advice Careful attention What else is Required u u u Networking, benchmarking and external advice Careful attention to security control Early focus on Data conversion Phased approach Address integration issues early e. g with Finance and Student Administration Systems Plan for retaining highly trained project staff

What else is Required? Ongoing Communication to all players u Management and User Commitment What else is Required? Ongoing Communication to all players u Management and User Commitment and support at all levels u Dedicated resources to the Process -Human, Financial, Physical and Organizational u Follow Through u

The Reality u It is an uphill effort u It is an art form The Reality u It is an uphill effort u It is an art form to balance: National and Campus cultures v Logistics due organization size and geographic spread v Customer Expectation v

The Reality It requires a thorough business process review, and Fit/Gap Analysis. u The The Reality It requires a thorough business process review, and Fit/Gap Analysis. u The project never gets finished u YOU NEVER HAVE ALL THAT’S REQUIRED, BUT NEED TO GET THE JOB DONE! u u WELCOME TO THE REAL WORLD!!!