SHRM-CP / SHRM-SCP Certification Exam: Organization - Technology Management

Functional Area 10—Technology Management
Here is SHRM’s BoCK definition: Technology Management involves the use of existing, new and emerging technologies to support the HR function, and the development and implementation of policies and procedures governing the use of technologies in the workplace.

Enhancing the effectiveness of HR functions could not be done without the use of technology. HR information systems, applicant tracking systems, self-service portals to company-specific information such as employee handbooks, training programs, benefits—these form the backbone to having HR processes click along seamlessly. HR professionals should fully understand the HR-related technology applications and the potential value of ever-increasing new technologies being developed.

Key Concepts
- Approaches to electronic self-service for basic HR and people management functions (e.g., scheduling, time keeping, benefit enrollment)
- Data and information management (e.g., data integrity, confidentiality, security, disclosure)
- HRIS capabilities and use
- Policies and procedures for procurement
- Policies and practices for technology and social media use (e.g., bring-your-own-device, web sites, computers for personal activity)
- Software for recruiting and applicant tracking

The following are the proficiency indicators that SHRM has identified as key concepts:

HR and Technology
Technology is now foundational to any HR function in an organization. It captures more information and makes that information accessible to a variety of needs and people within the organization. It can make analyzing information far quicker and allows for detecting patterns, conditions, and issues. HR’s technology provides communication support, which is particularly helpful with a workplace that is geographically broad. And when technology doesn’t work as planned or goes on the blink, it can literally cripple the functions of HR.

HR Technology Use
There is no one-size-fits-all technology blueprint for HR. Every organization is going to require HR technology that is specific to the size of organization, geographical and workforce particulars, and industry. The technological platforms and applications will differ, yet the initial blueprint will have the same process flow guidelines for implementation. Think of the computer game Minecraft; the rules are the same, yet each player’s outcomes in building things are hugely different.
HR uses technology to allow more work to be accomplished with fewer resources and by automating jobs and functions to allow greater accuracy and speed of processing or providing information to stakeholders. This is the true value of HR’s technology use.

Examples of technology include the following:
- E-signing, the electronic signature to process authorization of documents
- Electronic recordkeeping, a big advantage in the ever-growing field of legal record retention requirements
- Mobile learning, offering instructional content delivered to wireless mobile devices to facilitate information sharing and learning
- Intranet, access to information for the workforce for a broader style of communicating and understanding
- Gamification, a technology offering an approach for enhancing learning
- Blogs, for communicating both internally and externally
- Social media, for customer service and for promoting information/communications for shared purposes
- Self-service systems, portals that allow targeted groups of employees to access their information such as benefits, payroll, and initiating selections and changes

Advances and Leveraging HR Technology
An ever-changing landscape in HR, technology changes the way HR functions and supports the organization in doing its business. HR professionals should be aware of the trends, the capabilities, and the issues associated with technology in order to be strategic partners and help their organizations with their competitive vantage.
HR professionals can leverage technology to increase the efficiency of HR processes and functions by transforming data into sources of immense value to internal stakeholders. We have been experiencing a digital revolution that is a far cry from the industrial revolution and one that is at a rapid pace of constant change. The world has embraced technology, and HR has been on the forefront of the adopting technology within organizations. The many advantages in doing so include streamlining the processes and reducing administrative work; improving efficiencies; reducing costs, especially those related to compliance; providing real-time metrics to facilitate planning and decision-making; improving service to internal and external stakeholders; and enabling the sharing of information.

Information Management
HR’s information, largely maintained within technology vehicles, is highly confidential to both the workforce and the organization. As such, there are challenges in how this information is managed and accessed. There is the complexity of too much data—what to use and what not to use. And then there is real-time access where users are interacting with information that is in real time. Transparency of data is another consideration—where the information is sourced and who will have access.

HR in the Era of Big Data
The era of “big data” has been ushered in because of technology. Big data refers to the large amount of dissimilar data such as images and figures, tables, charts, and words. Users can access and do what is known as data mining—extracting particular data that serves their needs. In some large organizations, the HR function will have data specialists such as compensation or affirmative action analysts to gather and scrutinize data collected. In his article “The Promise of Big Data for HR,” Alex Levenson43 discusses the likely paths for HR. They are as follows:
- Collecting data New data collection about how employees do their jobs can provide process insights, possibly reducing errors and increasing productivity and efficiencies.
- Using data effectively Data can be used to understand the motivation of employees, their engagement, and why they do what they do.
- Strategic analysis Mapping how information flows in organizations and how it impacts the manner in which people rely on it to do their jobs.

Measures, Metrics, and Analytics
Analytics help HR professionals translate data into action and decisions. HR can use analytics to link HR outcomes to organizational results by starting with a foundation of accurate, consistent, integrate, accessible, and relevant data.
Sample Human Capital Metrics
A sample of human capital metrics would be using an employee database to track the knowledge, skills, and performance of employees; then using the analytics to identify the key performance indicators of high-potential employees to manage critical needs and projections for the workforce, perhaps because of anticipated retirements; and finally using the analytics to assess the marketplace for recruiting replacements and attracting the talent anticipated, along with the budget resources that will be required for workforce planning.
Why Analytics Matter
Analytics have the ability to improve organizational performance because they can improve and drive the planning and forecasting processes, shorten cycles, reduce costs, and direct resources for just-in-time needs.

HR Information Systems
A human resource information system is technology software that supports the functions of HR and is the workhorse of administration for HR data to be gathered, stored, maintained, retrieved, analyzed, and reported. Processing employee data, researching, answering questions—these were the activities that made up the major components of HR’s time in the past. Enter HRIS technology and poof, the time-consuming activities of a typical HR professional diminished. An HRIS offers the ability for increased efficiency and accuracy to be disseminated at a lower cost.

HRIS records involve fields of data including those shown in this figure. This is not an exhaustive list. Many other records are maintained by some employers.

Figure   Types of data included in employee records

HRIS Selection
Selecting and implementing an HRIS must be done right because errors in selection will have a profound impact. The HRIS software programs range from those serving employee groups up to 100 people to systems that can handle unlimited data fields and unlimited numbers of employees. Obviously, the prices of such software systems vary according to the capabilities they offer. The first thing to do in selecting an HRIS is to identify all the stakeholders and then do a needs analysis to determine what the features are needed for the stakeholders. A complete analysis will involve not only what the HR needs are but also what the user needs are when interacting with an HRIS.
Build, Customize, or Outsource Development
When deciding on an HRIS, you must consider whether the system is going to be developed internally by the organization’s IT group or will be an off-the-shelf system such as PeopleSoft. Another choice is to outsource the HRIS to an external vendor because there are many payrolling services available.
Integrated Solution or “Best-of-Breed” Option
A best-of-breed (BoB) option is the “best-fit” solution for each functional area in HR. Although a BoB option performs specialized functions better than an integrated system, this type of system is limited by its specialty area. To fulfill varying requirements, organizations often use best-of-breed systems from separate vendors. An integrated solution features a common interface across applications.
The choice between an integrated or best-of-breed solution comes down to how to deliver the technology. Will it be on-premise where the organization has software supported by internal IT staff, or will it be hosted, where the software is installed at the vendor’s site and supported by external IT? There is also software as a service (SaaS), which is where the organization does not purchase any software. Instead, it subscribes to a service that is accessed via the Internet.
Data Access
The data in an HRIS is not restricted to just the HR department. This is referred to as democratization where HR data is provided with direct access by those who need it. Executives, finance, payroll, managers, hiring managers—there is a stakeholder for just about every source of data. This type of access brings with it both legal and ethical considerations, including the protection of employee private information and the dissemination of it. Creating restrictions on the access to different portions of an HRIS is imperative when considering the design and implementation.
 

Database Structure
An HRIS is a database, and data is a structure that stores information in an organized manner. Access to the information in an HRIS typically happens through the following means:
- HR portals A portal is a customized entry point via the intranet or Internet for employees and applicants that allows them to access information such as benefits enrollment.
- Employee self-service (ESS) web sites that often are accessed via the HR portal This is normally associated with transactional functions such as updating personal information, filing expense reports, and changing 401(k) selections.
- Manager self-service (MSS) These are tools that are like the ESS, via an HR portal, that allows supervisory management to conduct HR-related transactions such as performance appraisals, job descriptions, and attaining reports or viewing information.
 

Data Protection
Personally identifiable information (PII) is a crucial concern with HRIS and other systems in protecting employee data. It has a high-priority status in today’s world to protect it from hacking. Risk managers, IT managers, security managers, and audit managers all have a vested interest in HRIS data protection. Unauthorized use or loss of personnel data is a constant threat, and a breach of the HRIS could be catastrophic to an employer.

HRIS Implementation
Most implementations of HRIS systems will use a project management approach. It will take a team of folks from both the internal IT department and the external IT consultants and HR professionals to follow a proven systematic framework over a period of time. Rushing the implementation of an HRIS is a disservice—take the time to be thorough when following the implementation steps.

The steps follow this order:
- Assessing whether to flush out and determine the requirements
- Identifying the project parameters such as budget, technology limitations, and time
- Evaluating software packages against the requirements and parameters
- Gathering the project task committee, stakeholders, and implementation group
- Clarifying vendor requirements and putting out an RFP to vendors
- Screening the RFPs
- Selecting the best vendor/software
 

The Importance of Systems Integration
Implementing an HRIS is complex and expensive, and there are headaches of unforeseen factors that come up. A systems integration approach that is thorough, looking at the entire process well before fingers are put on the keyboard, will be well worth it in the end. You need to look at all the software components involved and how the entire process will integrate into the HRIS. There are two common approaches: a continuous integration, or waterfall, approach or a big bang approach.
Continuous Integration Approach
With continuous integration, the HRIS components are integrated as they are developed into mini-versions of the HRIS. The developers will build chunks or portions of the system to integrate them into the whole. This causes an incremental building, which eventually creates the larger final HRIS. Throughout the development process, the HR functions can see the workings of what is created and massage the development process. This approach is generally perceived as less risky.
“Big Bang” Approach
Not until everything is ready will the individual components making up the HRIS be integrated—thus the label big bang. This approach allows for everything to be finished, and then testing begins. It can be time-consuming using this approach and cause system failures. Smaller organizations will generally adopt this approach, especially when using off-the-shelf or external HRIS implementations.

Policies for Technology Use in the Workplace
Technology use policies can raise some sticky issues for both the organization and the workforce. They can work well when organizations balance security, compliance, and privacy concerns. The key is being collaborative and thorough in the approach to creating policy and ensuring that policies are being updated to keep pace with the continuous growth of new and changing technologies. Just a few years ago smartphones and watches came on the scene, and around the corner will be new technology that will affect policy-making.

Developing Workplace Policies
“A policy is a broad statement that reflects an organization’s philosophy, objectives, or standards concerning a particular set of management or employee activities. Policies reflect the employer’s employee relationship strategy. They are general in nature and are expressed through more specific procedures and work rules.”

There are nine steps involved with developing workplace policies.
1. Identify the need for a policy.
2. Identify who will take the lead responsibility for this policy development.
3. Gather information.
4. Draft the policy.
5. Consult with stakeholders.
6. Finalize and approve policy.
7. Consider whether procedures will be required to implement the policy.
8. Implement the policy.
9. Monitor its success, and review and revise if necessary.
Developing Employee Handbooks
An employee handbook is a document that communicates organizational history, mission, values, policies, procedures, and benefits. It should contain information about all the “way we do things around here” and why we do them that way.
The steps for developing employee handbooks are similar to those involved in developing workplace policies.46
1. Review and make required revisions to the current company policies.
2. Create an outline of what to include in the employee handbook.
3. Create summarized versions of each policy and procedure.
4. Add each summary statement in the appropriate sections according to the outline.
5. Review the entire handbook.
6. Provide a finalized version to legal counsel for review.
7. Select a means of publication.
8. Distribute handbooks.
9. Update as necessary.
The majority of organizations are finding it extremely helpful to have their employee handbooks electronic. It allows for the updating (and announcement of updates) to be more frequent and an acknowledgment from employees that they are aware of the policy changes.
 

Bring-Your-Own-Device Policy
A bring-your-own-device (BYOD) policy applies to employee use of personal electronic devices for company purposes. Taking a clear position on employee-owned devices via a policy is critical. A policy should outline the terms for eligibility for BYOD, as well as protocols for using personal devices.
Allowing employees to work on their personal laptops, tablets, and smartphones instead of company-issued equipment has been a trend that has been driven in part by society that now relies on the use of technology for both work and play. While allowing or asking employees to bring their own devices can lower costs and improve efficiency, effectiveness, and morale, it can also raise concerns of security and legal compliance. A well-crafted policy can alleviate those concerns.
From an employee perspective, the largest concern is that BYOD could lead to a loss of employee privacy. Employees may worry that their company will have inappropriate access to their personal data, as well as to their photographs, contacts, and other information—and that they could lose all that information if the company attempts to remove or “wipe” business information from the worker’s device, which typically happens after an employee’s employment has ended.
On the organization’s side, the primary concern is related to security. For example, devices may not have an automatic lock code or timeout function, and some people do not use passwords to protect their devices. Equally troubling are worries that employees may connect to their devices via unsecured Wi-Fi, share them with others, or simply lose them. All of these possibilities raise the risk for the unauthorized disclosure or destruction of business data.
If nonexempt employees are asked to use their own devices for work, the organization opens itself up to exposure under the federal Fair Labor Standards Act and state overtime and wage payment laws. Nonexempt workers can be in a position to respond to e-mails/text messages or to otherwise engage in work activities outside their scheduled work hours.

Collaboration
Because of the globally dispersed and diverse ways of working, technology vendors have created platforms that allow employees to collaborate more efficiently, such as programmers collaborating on coding. Organizations are recognizing this and adopting collaboration policies and tools to facilitate this new form of communication and productivity learning.
Groupware
Groupware is a specialized software application of a collaborative nature that facilitates interaction between people, helping them work together. Webinars, videoconferencing, and online collaboration tools such as Google Docs are just a few examples of groupware.
Effective Collaboration Policies and Approaches
Organizations have established practices that create greater effectiveness for these collaborations. Webinars may be arranged at times that are early in the morning for those on the West Coast and thus later in the day for those located in Europe, allowing participation and recognizing that it’s outside the normal 8 A.M. to 5 P.M. routine. Also, the ability to record meetings using webinar technology allows those in Australia to view a meeting presentation instead of participating in the wee hours of the day, for example.
Of course, legal disclaimers and the rights and responsibilities should also be considered in policies that protect trade secrets and confidentiality.

Social Media
Social media policies and practices are land mines in today’s world. With the ever-changing technology and new platforms popping up just about every year, social media is an important technology trend that HR professionals need to stay on top of. Policies need to be aligned with the organization’s ethical and cultural expectations and its core values. They must reflect the organization’s legal and reputational risks too. What will the organization consider as an infraction of ethics with an employee’s personal postings? Many situations have popped up challenging this issue within the last few years, causing newsworthy headlines.
Effective Social Media Policies and Approaches for Personal Posting
The types of personal posts that employers should be concerned with by their employees are the ones that disclose proprietary information, harass other employees or customers, reflect poorly on the organization, or are considered inappropriate comments (non-work-related included). There is a balance of restrictive and permissive aspects for personal posting, and a policy that establishes what constitutes both should be evaluated and updated on a frequent basis.

Networking
Social networks are the online clusters of individuals in groups with shared interests. These networking sites connect individuals with shared interests, regardless of their geographical location. An exchange of private and public messages can occur. They may be groups of professionals, such as alumni from a college, or informational, such as people with hobbies or seeking information such as do-it-yourselfers.
Effective Networking Policies and Approaches
Similar to social media policies, networking policies should protect the reputation of the organization and outline expectations of its employees, values, and ethics.

Communications
Policies and practices with regard to communication in technology require a balance between protecting the organization’s proprietary information, its security, and its legal interest and getting work done by the workforce. Here again, having expectations well thought out with examples will help the workforce know where the line is drawn for inappropriate communications.
Effective Communications Policies and Approaches
Over the years, employers have discovered that the best approach to technology communication policies is constantly reminding employees of policies such as the monitoring of employee e-mails or browsing histories. Notifying employees, new hires, and even executives about the potential of monitoring can serve as a deterrent for inappropriate communications and resources. Further, when an organization regularly advises employees that their communications are not private, it makes it problematic for employees to contest confidentiality in lawsuits.