Electronic Business: Concepts, Methodologies, Tools, and Applications (4-Volumes) P101 pot

934 A Survey of Competency Management Software Information Systems $JDLQ066VROXWLRQVDUHLQWKH³grow the business” category. Business risks are moderate and reward is, typically, moderate. :RUNÀRZUHSUHVHQWVDKLJKO\FULWLFDOHQDEOLQJ technology to automate HR processes, thus critical too for comprehensive CM deployment policies: ZRUNÀRZUHSODFHVSDSHUQRWL¿FDWLRQVZLWKmes- VDJHVQRWL¿FDWLRQ, routing, and approval. :RUNÀRZ VHUYHUV VROXWLRQV DUH PRVWO\ dis- cretionary enhancements ZLWKLQ WKH ³ grow the business ” category, creating new levels of SURFHVVHI¿FLHQF\DQGHIIHFWLYHQHVVRUSURFHVV agility). Business risks and reward are, typically, moderate. ([SHUW¿QGHUVDUHWeb-based tools typically found in integrated ERP HC solutions used to SURYLGHWKHPHDQVWR¿QGDQGORFDWHHPSOR\HHV KDYLQJVSHFL¿FNQRZOHGJHRUFRPSHWHQF\SUR¿OH ³who is who´W\SH RI DSSURDFK DQG ¿QDOO\ ensure contact with the expert for the required SHULRGRIWLPH8VXDOO\ZRUNVWLHWRWKHZRUNÀRZ server functionality. ([SHUW¿QGHUV VROXWLRQVDUHFRQVLGHUHGGLV- FUHWLRQDU\ HQKDQFHPHQWVZLWKLQWKH³grow the business” category. Business risks and reward are typically moderate. HUMAN RESOURCES MANAGEMENT PROCESSES The foremost trend in information systems restructuring in recent years is process-based working. This approach enhances knowledge development and sharing, forcing IT professionals and business decision makers to collaborate and share information concerning IT and business trends. Successful corporate e-business transfor- mation initiatives necessarily incorporate process improvement and transformation. Process under- standing provides the bridge between corporate strategy and IT implementation. CM software technology is no exception to this reality. As indicated in the introduction, CM market analysis requires a comprehensive approach within the HC domain. This brings about an excellent opportunity to critique and model value delivery mechanisms, thus clarifying business relationships. In today’s advanced organisations, a process LVGH¿QHGDVD³VHWRIDFWLYLWLHVGLUHFWHGWRREWDLQ a service or a product that creates value to the FOLHQW´$ OW KRXJ KKX PDQFDSLW DOPD QDJHPHQW¿W V into the corporate management support domain IXQFWLRQVVDPHDV¿QDQFLDOVSODQQLQJHWFWKH VDPHGH¿QLWLRQDSSOLHVCompetency management is the cornerstone in this proposed client-oriented process approach: People drive results. 7KHIROORZL QJLVDJHQHU LFOHYHOGH¿QLWLRQRI all relevant industry-accepted HC management processes representing the framework in which CM software is deployed. Best-process practices indicators are proposed, as well as information FRQFHUQLQJWKHPRVWVLJQL¿FDQWLQWHUQDODQGH[- ternal application inter-relationships. This framework will facilitate the understand- ing of the competency management business ³HFRV\VWHP´6RPH+5PDQDJHPHQWSURFHVVHV are very much tied to CM strategy deployment, and others are not. This comprehensive view will KDYHVLJQL¿FDQWYDOXHWRIXUWKHUHYDOXDWHDQG assess the various software system architectures and market products available against the People CMM model. Persons Administration and Payroll Payroll processing represents the primary HR automated function in most organizations. It ensures that the workforce gets accurately paid on time. Critical activities are usually linked to VSHFL¿F FRXQWU\ UHJXODWRU\ UHTXLUHPHQWV WKH amount and structure of labour-related accounting PRGHOVWRFRQVLGHUDQGRWKHUVSHFL¿FUHFRQFLOH- ment tasks. Best practices key process indicators in this area are the following: 935 A Survey of Competency Management Software Information Systems • Employee’s administration and informa- WLRQÀRZLVLQWHJUDWHGZLWKLQ+5RUJOREDO corporate ERP. • Administrative tasks are performed using ESS methods, implementing portal/intranet- GULYHQVROXWLRQVDQGZRUNÀRZWHFKQROR- gies. The Process Reference Model for Payroll & Administration is shown in Table 1. The internal and external process relationship is shown in Figure 7. 7KH H[WHUQDOUHODWHG DSSOLFDWLRQV DUH ¿QDQ- cials, ESS, travel management, and CRM (to directly manage incentives typically associated to sales or commercial goals). Table 1. Process reference model for payroll & administration Activity Name Description PA_01 Employee data maintenance Workforce data and changes in employee status, relevant to payroll, are introduced in HR system. Sometimes, employee time reporting is the front end of payroll overall process. PA_02 Payroll process Taking into account monthly changes, backdate payment rules, corporate and country regulatory requirements, gross and net earnings, and deductions are calculated. PA_03 Checking of calculated results Post-payroll process report writing is made to check possible errors prior to HR results formal approval, prior to post-information further processing. PA_04 Individual payroll forms generation Payroll forms are generated and made available to employees in printed or electronic format for individual ESS access. PA_05 Legal Social Security report generation $GHTXDWHDXWRPDWHGPRQWKO\¿OHV)$1W\SHRU other) are generated, together with established payment forms (TC1s) PA_06 Tax reports generation According to company type and local regulations, adequate report (i.e. 110, 111, 190) is periodically generated. Earning and retention information is prepared for personal direct consultation (vía ESS). PA_07 6RFLDOEHQH¿WV information delivery 6\VWHPLQWHUIDFHVZLWKDJUHHGVRFLDOEHQH¿W provision companies PA_08 Prepare bank transfer ¿OHV Files generated for bank use with net earning to be transferred to employee’s account. PA_09 Accounting File generation $VDJUHHGZLWKWKH¿QDQFLDOGHSDUWPHQWIRU accounting processing (general ledger, etc.) 936 A Survey of Competency Management Software Information Systems Time and Attendance Management In the context of knowledge persons manage- ment, TM (time control of employee time) is not a high-priority process and often deployed to a very limited extend. See Table 2. Figure 8 shows internal and external process relationships. 7KH RQO\ VLJQL¿FDQW LQWHUIDFH WR FRQVLGHU here is with any clock-in system (when required). 1RWL¿FDWLRQVDUHRIWHQPDGHYLD(66RUVLPSOH ZRUNÀRZGLDORJVZLWKDXWKRULVLQJSHUVRQV Best practices key process indicators in this area are the following: • Presence control management integrated within HR or global corporate ERP. • Decentralization of absence and time off registry. • Absence/permit and vacation request ap - SURYDOVÀRZLVIXOO\DXWRPDWHG ORGANIZATIONAL DEVELOPMENT AND CHARTING Structure management is often a centralized process that creates, organizes, and manage orga- nizational directory information. See Table 3. Figure 9 shows the internal and external pro- cess relationships. Best practices key process indicators: • 6WUXFWXUHGH¿QLWLRQDQGMREGHVFULSWLRQ information processed within HR or global corporate ERP. • Decentralization of organizational changes across corporation. • Change organization approval process is PDQDJHGXVLQJZRUNÀRZPHFKDQLVPVYLD ESS/Intranet. PA_01 Empl. Data Maint. PA_02 Payroll calculation PA_03 Check Results PA_09 Accounting PA_08 Bank Files PA_07 Social Benefit Rep PA_06 Tax Reports PA_05 SS Reports PA_04 Payroll Forms CRM TRAVEL MNGT ESS FINANCIALS Figure 7. Internal and external process relationships 937 A Survey of Competency Management Software Information Systems Activity Name Description TM_01 Time schedule GH¿QLWLRQ Relevant labour calendar information is prepared: work KRXUVÀH[LEOHVFKHGXOHVDQGVRIRUWK5HOHYDQWRQO\LI clock in control is in place. TM_02 Time off request Applicable to vacation periods or special permits. TM_03 Time off authorisation Authorise or reject employee request and inform HR department. TM_04 Collect clock-in data Exit and entry information is registered by external clock-in device, located in work premises. TM_05 Identify deviations Based upon calendar and work hours information, a contrast task is performed with clock-in data in order to identify eventual deviations. TM_06 Deviations MXVWL¿FDWLRQV 7KHHPSOR\HHMXVWL¿HVGHWHFWHGZRUNDEVHQFHWKHQ approved or rejected by superior. TM_07 Registry of time incidences Time off accruals, vacation, sick leave type of information for HR information and management. TM_08 Inform payroll Only the payroll-relevant information is transferred for adequate processing. TM_09 Statistics Periodically, HR obtains statistic information to be delivered to employees via ESS. Table 2. Process reference model for time and attendance management TM_01 Time Sched.Def. TM_02 Time-off Req. TM_03 Time-off Autorize TM_04 Collect Clock-in TM_05 Identify Deviations TM_06 Justify Deviations TM_09 Statistics TM08 Inform Payroll TM_07 Registry incidence ESS CLOCK IN CONTROL Presence Control ? YN Figure 8. Internal and external process relationships 938 A Survey of Competency Management Software Information Systems WORKFORCE PLANNING AND ANALYTICS HR requires automated processes to evaluate JHQHULFDQGVSHFL¿FLQFRPHFKDQJHSURSRVDOV EHQH¿WVRUDQ\RWKHU+5FRVWUHODWHGLVVXHWKDW may be considered. Simulation and analytical tools are essential to assume control of present and future HR budget responsibilities. See Table 4. Activity Name Description OM_01 Identify organisation change request Every year each department performs a business strategic and functional review identifying recommended changes as business develops. Structure updates proposals are then submitted for approval. OM_02 Change request approval Change proposal is aggregated at organisation department level, then approved by board of directors. OM_03 Inform on change to HR Once new structure has been approved (includes new assignments, positions, etc.) HR assumes control to update organisation-dependent information. OM_04 Update structure Updating structure often requires changes in HR master data and cost centres allocation. OM_05 New structure is made public Internally (via B2E mechanisms) and externally if required. Quality assurance manuals also updated. Table 3. Process reference model for organizational development and charting OM_01 Identif.Org.Ch.Req OM_02 Change Approval OM_03 Inform Change OM_04 Update Structure OM_05 Structure is publ. PORTAL/ INTRANET WORKFLOW APP, Figure 9. Internal and external process relationships Figure 10 shows the internal and external process relationships. Best practices key process indicators: • Organization HR budget calculated through HR or global corporate ERP. • Full integration with payroll and payroll simulation and analysis. 939 A Survey of Competency Management Software Information Systems • Full integration with the organization mod- ule (to simulate organisational changes). • Automated budgetary analysis and measure - ments, identifying unusual patterns in data through technologies such as data mining and understanding correlations between measurements. Table 4. Process reference model for workforce planning analytics Activity Name Description CP_01 Staff planning Departments and business unit staff requirements and status requirements are processed. Aggregated information is then validated and budgeted. CP_02 Actual cost evaluation Current payroll cost is used to estimate cost for next period. Planned staff increase cost is estimated based upon current ¿JXUHV CP_03 Workforce budget analysis Payroll cost models are simulated based upon previous calculations. Cost and budget effects due to organizational changes, new statutory requirements, or updated payroll and EHQH¿WVFRQ¿JXUDWLRQVDUHVLPXODWHG CP_04 )LQDOFRQ¿JXUDWLRQ approval Final proposal is approved and submitted to management committee. CP_05 Accounting control is updated New approved budget is incorporated in accounting. CP_06 Budget appraisal Permanent budget appraisal. Figure 10. Internal and external process relationships CP_01 Staff Planning CP_02 WF Budget Analy. CP_03 Scen. Simulation CP_04 Final Budget Appr. CP_05 Inform Controlling CP_06 Budget appraisal PAYROLL & ORGANISAT. FINANCIALS CONTROLLING 940 A Survey of Competency Management Software Information Systems COMPETENCY MANAGEMENT &0SURFHVVHVÀRZDFURVVRUJDQL]DWLRQDOGLYL- sions and units as the most challenging practice in workforce management activities. Managing knowledge assets like managerial behaviours, problem-solving skills, and so forth is somehow different than managing physical as- sets. The ultimate CM process goal is to provide the means to ensure continuous development of employees and organizations’ competencies. It implies observing them through behaviour, as- sessingWKHPDFFRUGLQJWRRUJDQL]DWLRQV¶GH¿QHG values, and permanently improving them. Competencies are usually linked to career planning, so employees permanently have a view of the potential career paths they are offered by the organization. CM strategies are as good or effective as the information available. Even though CM is about Table 5. Process reference model for CM Activity Name Description CM_01 &DWDORJXHGH¿QLWLRQ &RUHDQGRWKHUUHTXLUHGFRPSHWHQFLHVSOXVSUR¿FLHQF\ OHYHOUHTXLUHGIRUHDFKMRESUR¿OHZLWKLQWKHRUJDQLVDWLRQ are established and catalogued as a corporate dictionary. CM_02 Competency assignment Once competencies are assumed by management, DQDVVHVVPHQWSURFHVVGH¿QHVSURFHGXUHVDQGOHYHO assignment rules. Competencies are then matched to employees. This is often a time- and cost-consuming non- automated set of activities. CM_03 Employee enrollment Individual employees may leverage competency and potential career paths within organization. CM_04 Competency gap LGHQWL¿FDWLRQ *DSEHWZHHQFRPSHWHQF\OHYHOGH¿QLWLRQDQGHPSOR\HH VWDWXVLVLGHQWL¿HG7KLVLQIRUPDWLRQLVWKHEDVLVIRU employee continuous improvement process, usually linked to CM. CM_05 Employee-continuous improvement activities Individual person’s development is supported in learning (e-learning) programs, providing the means to develop required competencies. CM_06 Career management Supported on KM information and individual GHYHORSPHQW³SUR¿OHV´PDWFKLQJMREYDFDQFLHVDUH LGHQWL¿HGZLWKLQRUJDQL]DWLRQDOVFRSH6XFFHVVLRQSODQQLQJ information is analysed. CM_07 Performance evaluation Continuous matching employee-assigned business objectives with actual performance based upon the CM model. Evaluation information is created, then managed by HR evaluation process. CM_08 Compensation ,QGLYLGXDOVDODU\DQGEHQH¿WVFRPSHQVDWLRQLVWULJJHUHGE\ evaluation, thus closing the periodically updated employee development cycle. 941 A Survey of Competency Management Software Information Systems managing intangibles, without the right infor- mation measuring or predicting how employees or the organization will be affected is just hit or miss. See Table 5. Figure 10 shows the internal and external process relationships. Best practices key process indicators: • &RUSRUDWH FRPSHWHQF\ FDWDORJXH GH¿QHG within HR or global corporate ERP. • Integration with all relevant applications, supporting HR processes. • Automated gap analysis process, matching HPSOR\HHSUR¿OHZLWKSUR¿OHUHTXLUHG • &RPSHWHQF\ SUR¿OH LQIRUPDWLRQ WKURXJK B2E communication-based links. EMPLOYEE RECRUITMENT Even though procedures vary from one region and organization to another, the process is driven to ensure the best tracking of applicants (internal or external to organization), based upon skills and competencies to match into the required job SUR¿OHV See Table 6. Figure 6 shows internal and external process relationships. Best practices key process indicators: • Recruitment process supported by HR or global corporate ERP. • Full integration with administration applica - tion. • Automated CV information data registry (through B2E). Automated mail service. TRAINING This process helps managers to evaluate and plan organization’s training requirements and CM_01 Catalogue Def. CM_02 CompetencyAsign CM_03 Enroll.Employee CM_05 Continuous Impr. CM_04 Gap Identification CM_06 Career Mngment PA_07 Evaluation PA_08 Compensation EMPLOYEE DB ESS LEARNING PERFORMANCE MNGT. CAREER DEVELOPM. RECRUITMENT & SUCCESSION PLANNI NG KM Figure 11. Internal and external process relationships 942 A Survey of Competency Management Software Information Systems Table 6. Process reference model for employee recruitment Activity Name Description ER_01 9DFDQFLHVLGHQWL¿FDWLRQ Next-period strategic HR planning is taken as input information to identify vacancies to be assigned. ER_02 Organization internal publication 5HTXLUHGSRVLWLRQDQGH[SHFWHGFDQGLGDWHSUR¿OHDUHPDGH public within organization. ER_03 Internal candidates reception CV is usually updated by employee prior to candidature submission. ER_04 Internal candidates ¿OWHULQJ +5DQDO\VHVFDQGLGDWXUHVDQG¿OWHUVSRVLWLRQSUR¿OH FRPSDWLELOLW\DJDLQVWFDQGLGDWHSUR¿OH ER_05 Selection tests HR and required technical and managerial personnel are involved during the selection process. Tests are designed in accordance to position. Technical knowledge and person’s SUR¿OHVXLWDELOLW\WHVWVDUHH[HFXWHG ER_06 External recruitment Applies when no internal candidate gets position assignment. Scheduling. ER_07 3UHTXDOL¿FDWLRQDQG CV’s reception The selection application inputs candidates’ information for further assessment and tracking. ER_08 Recruitment proposal 6HOHFWHGFDQGLGDWHUHFHLYHVQRWL¿FDWLRQDQGIRUPDORIIHUWR accept position. ER_09 HR administration incorporates selected candidate information 2QFHIRUPDORIIHULVDFFHSWHGVWDUWLQJZRUNGDWHLV¿[HG Organization-required administrative information is entered and legal employment agreement is created. ER_01 Identify Vacancies ER_02 Internal Publicat. ER_03 Receive int. Req. ER_06 Extennal publ. ES_0R CV Reception ER_08 Make offer ER_09 HR Data update ER_04 Filter int.candidat. ER_05 Selection process COMPETENCY MNGT ORGANISATION PORTAL / INTRANET HR ADMIN. Selected candidate INTERNET N Figure 12. Internal and external process relationships 943 A Survey of Competency Management Software Information Systems events. Information is processed on prerequisites, objectives, content, schedules, and locations, as well as appraisal course’s results and additional management required data. See Table 7. Figure 7 shows internal and external process relationships. Best practice’s key process indicators: • Training management supported by HR or global corporate ERP. • E-learning integration within ERP. Activity Name Description ET_01 Create training plan A training plan is established every business year. It includes all educational methodologies applied within the organization DQGLV¿QDOO\DSSURYHGE\H[HFXWLYHFRPPLWWHH ET_02 Identify education requirements Following inputs are considered: Business units plans. Cross-organization corporate initiatives. Training topics generated by management, derived from evaluation results. +5FRUSRUDWHGH¿QHGLPSURYHPHQWQHHGV ET_03 Training plan assessment and approval Executive committee approves plan and budget. ET_04 Courses & training XQLWVGH¿QLWLRQ According to budget, priority, and expected employee usage. ET_05 Select training and education providers Internal and external providers, content and methodology evaluation against organization requirements, and cost and budget negotiations through established business-to-business commerce chain management procurement process. ET_06 Assign employees to training units $VVLJQPHQWLVEDVHGXSRQSUR¿OHV(OHDUQLQJLQLWLDWLYHVDUH usually managed by organization based upon employee’s self- initiative. ET_07 Training call Arrangements are made according to employees’ job schedules, presence, or distant learning method used, instructors’ and logistics availability. ET_08 Perform training In accordance with plan. HR receives assistance and evaluation report. ET_09 Training evaluation Following aspects are evaluated: Quality: content, instructor (by attendance). Student’s attitude, knowledge acquisition (by tutor/teacher). Employee contribution to business (after training). ET_10 Update employee competency record By HR and management, after complete evaluation. Table 7. Process reference model for training . approach enhances knowledge development and sharing, forcing IT professionals and business decision makers to collaborate and share information concerning IT and business trends. Successful corporate. assessment and approval Executive committee approves plan and budget. ET_04 Courses & training XQLWVGH¿QLWLRQ According to budget, priority, and expected employee usage. ET_05 Select training and. training and education providers Internal and external providers, content and methodology evaluation against organization requirements, and cost and budget negotiations through established