Exam 7: Cost Justifying Human Resource Information Systems Investments

Estimating indirect benefits requires assumptions about the impact of a specific HRIS functionality without any direct impact of the functionality.

Time saved by the implementation of an HRIS a direct cost reduction.

Indirect benefits are difficult to quantify because:

An integrated information system is one built on common platforms that permit single instances of data to be used in several applications.

What are the three approaches for estimating benefit magnitude?

Using HR audit metrics to measure the effectiveness of one company's HR programs against other companies is called:

To use a organizational enhancement approach for the justification of new HRIS, one must use:

Estimating benefits first provides a critical aspect of the business plan for the new HRIS and sets the boundaries for its functionality.

In terms of estimating costs and benefits for a new HRIS, the critical time period is:

Direct costs for implementing a new HRIS application in training would include reduced absenteeism.

Indirect costs for implementing a new HRIS application in training would include Lost productivity during conversion to new system.

A preliminary estimate of the CBA of an HRIS investment should:

A CBA is a comparison of the projected costs and benefits associated with an HRIS investment.

An improved capacity to attract and retain higher-quality employees because of the implementation of a new HRIS would be considered an example of:

Average Employee Contribution and employees variance in work outcomes are used for the determination of compensation levels.

What is the difference between cost reduction and organizational enhancement as strategies for HRIS investments?

An HRIS CBA that includes an extensive analysis of costs matched with a single source of benefits, e.g.an estimate of direct cost reductions, is a common problem in justifying the purchase of a new HRIS.

Variance estimates for costs and benefits are important because:

What does average employee contribution (AEC)and Individual employee differences (variance)in work outcomes measure in a CBA?

Internal assessment for estimating indirect benefit magnitude provides the most precise estimates of the baseline costs and current performance of existing processes.