To justify IAs investment of an HRIS, Sylvia can consider the risk avoidance strategy. This strategy is used when investments eliminate or mitigate significant future risks faced by the organization (pg. 340). Sylvia’s task was to complete the Equal Employment Opportunity Report. If she was unable to complete the report, the company could have faced a huge penalty. The HRIS was also out into place to process employee records and complete some of the required government reports. I would suggest that Sylvia use this method instead of the organizational enhancement strategy I say this because IA has never utilize an HRIS, so for them, it would not be considered a new or improved …show more content…
Which would you be sure to include in your cost benefit analysis of this project and why?
Costs involved in this HRIS investment are primarily direct costs. IA had to buy the HRIS directly and probably had no intentions of purchasing a HRIS until it was suggested. So now, the company has to handle the initial costs for purchasing the software and any of the updates or hardware that comes along with it (pg. 355). Another form of direct cost consists of any ongoing cost for external and internal support. Indirect cost involved on the HRIS investment include the overall loss of productivity during the implementation phase of the new system (pg. 355). This will mostly affect the HR employees.
The benefits involved in this HRIS investment are both direct and indirect. Since IA is an investment company, the direct benefits of the HRIS include revenue enhancements, such as an increase in revenue. Cost reductions are also directly associated with the benefits of purchasing the HRIS. Cost reductions for the IA Company would be a decrease in fines that would be administered for not having the necessary forms processed. An indirect benefit of the HRIS investment are, the time saved by HR to process forms, future technical needs and improvement in the HR departments …show more content…
374). This means that hiring employees with high potential is key. Employee training programs dedicated to enhance job performance promote organizational effectiveness. If this is ignored during the CBA, the investment will be understated. The second problem occurs when direct cost reductions are mistaken for indirect cost reductions. When it comes to decision makers, they may look at the cost reduction and perceive the HRIS to be an unsuccessful investment. Lastly, sometimes value estimates assigned to save time come out to be unreasonable (pg. 376). It is noted that time saved may not always have value. It is also noted that technology for HR saves in smaller increments, which do not permit direct savings (pg. 376). All in all, the most effective way to avoid the three common problems is to be careful and think thoroughly. However, do not over/under analyze the indirect and direct properties of the CBA. That seems to be the biggest problem presented in all three problems. Knowing where items should be placed correctly within the CBA, is key in producing an accurate and appropriate