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