An Agile Approach to a Human Resources Information System for Company B

An Agile Approach to a Human Resources Information System for Company B Marcus Neo P. Encarnacion University of Asia and the Pacific Pasig City, Metro Manila, 1605 Philippines [email protected] Jaime Miguel Y. Tañedo University of Asia and the Pacific Pasig City, Metro Manila, 1605 Philippines [email protected] Franco Neo A. Recasata University of Asia and the Pacific Pasig City, Metro Manila, 1605 Philippines [email protected] Giuseppe Ng University of Asia and the Pacific Pasig City, Metro Manila, 1605 Philippines [email protected] ABSTRACT Company B is a manufacturing company that has been facing challenges with its manual HR processes, resulting in (1) time inefficiency, (2) human errors, and (3) security issues. To address these challenges, we developed a Human Resources Information System to streamline HR processes and improve department efficiency. The study focused on manual procedures for employee management, attendance management, and payroll processing. A web-based system with a biometric attendance tracking system was developed to digitalize their HR business processes while at the same time considering feedback from the company and making adjustments based on their needs. The implementation of the Human Resources Information System enabled Company B to streamline its HR processes, reduce time inefficiencies, eliminate the risk of human error, and increase security. We used an ISO 25010 quality evaluation form to evaluate the quality of the system after every end-of-sprint meeting and system demonstration, both online and onsite and received an overall mean evaluation rating of 4.12 from the client. System improves attendance and payroll accuracy, meets client expectations with a 4.06 functional stability score. The use of the agile methodology in a remote setting proved to be effective in developing a custom-made solution for the unique problems and issues of the company. With the implementation of the new system, the HR department can now focus on other important HR-related tasks, improving overall department efficiency. Overall, the implementation of the Human Resources Information System has been a success, providing significant benefits to Company B. KEYWORDS Human Resources Information System, Employee Management, Employee Attendance, Payroll, Agile 1 INTRODUCTION According to Archify [1], Company B is a manufacturer of windows and doors that is mainly aimed at providing affordable and reliable products to the Filipino market. Founded in 2002, the company is based in Taytay, Rizal has many project sites around Luzon, Visayas, and Mindanao. Upon consulting with our client, we found out that the main issue the company is facing is with regard to how they collect and consolidate their attendance logs. It is said that the current process of collecting employee attendance involves the use of either a biometrics system or hand-written logbooks depending on the project site. For the biometrics system, a Microsoft Excel file can be generated containing all the time-in and time-out details of the employees in a project site. Project sites that utilize handwritten log books are only scanned and signed by the project-in-charge (PIC). These files are then sent to the HR department via email or flash drive to prepare for payroll. One of the main issues with this is that attendance logs coming from their project sites are prone to be tampered with by their employees. Without the proper security measures in place, employees stationed in these project sites are able to clock themselves in without actually being present at work. According to a company representative, this issue has cost the company hundreds of thousands of pesos in damages not including any other undocumented instances. As for their day-to-day HR processes, requests such as leave, overtime, and loan requests are all done through physical forms which can sometimes take days for the HR manager or department heads to receive. Employee requests are then compiled and stored in one place together with other essential documents like employee records, allowances, benefits, etc. However, managing and tracking these documents can be a headache for the HR department to handle especially with more and more documents continuing to pile up. With the help of the agile methodology, we were able to collect valuable feedback from the client and collaborate with them during all stages of development. Given how flexible the agile methodology is, we were able to immediately address any issues or concerns raised by the client resulting in a system that meets the needs and requirements of the company. To understand how far along the system is in the eyes of the client, ISO 25010 forms were then given to the company representatives to assess the current state of the system and rate it based on a set of criteria. After achieving our objectives, we have provided our client with an efficient HRIS that enhances their overall HR management capabilities, streamlines their business processes, and improves data accuracy and security. We used these objectives to guide our development process, ensuring that we consistently meet the requirements and exceed the expectations of the client. 2 REVIEW OF RELATED LITERATURE Human Resource Information System (HRIS) is a computer-based system that is used to manage HR processes and procedures. According to A.F. Karikari et al. [2], its goal is to improve the efficiency with which it provides better information for decision-making. HRIS aids the HR department in making the HRM process easier, faster, less expensive, and more effective, as well as assisting the organization in achieving greater success. According to A.F. Karikari et al. [2], HRIS is a helpful tool for HR Planning (HRP). It improves the accuracy of identifying open positions and analyzes each job position and its title within an organization. It also provides insight into organizational training needs, selects the right people for training, and assesses the effectiveness of training programs, but it faces challenges such as forecasting labor demand and supply, access to information, recruitment costs, and workforce shortages. Because systems in organizations are formed and run by humans, it is thought that human resource management is the most important function for any organization that wants to gain a competitive advantage over its competitors (A.F. Karikari et al., 2015). Bhuiyan, Rahman, and Gani [11] researched the impact of HRIS on the financial performance of banks and traced out that HRIS has a significant positive impact on a firm’s financial performance irrespective of ownership patterns; state-owned, private, and foreign private commercial banks. Research results also show that organizations are adopting HRIS technology as a platform to enable transformational change, improve the quality of HR processes and practices, allow distributed access to services for both employees and managers and provide improved support to decision-making processes (Belizon, Morley & Gunnigle, 2016). Saidi and Ojo [10] also researched the impact of HRIS on selected banks in Lagos State. The research result revealed that there is a significant relationship between operational functionality and the performance of the company on one hand and HRIS and the performance of the company. The highlight of this research is that the researchers recommended that the bank should introduce involvement and participation programs in the implementation and evaluation of the HRIS and other computer-based programs and further advised to organize training and development programs within the organization, for both the internal and external employees on the use of ICT based processes to implement HRIS successfully. To know more about digital human resources one should first understand the exact meaning of it. The development of information technology has played a key role in the evolution of Digital Human Resource Management (DHRM). According to Nawaz [3], in this business world, all technologies are re-appearing in a new form in order to attract and gain more recruitment of employees in the organization. The main transformation took place in HRM from conventional HRM to digital HRM by implementing new policies and strategies to attract organizations. Saini [4] described DHRM as maintaining all HRM work with the help of technology, through several applications and internet-connected to it. Iwu [5] conducted a study at sub-Saharan African universities that found that the maximum percentage of employees agreed that Electronic Human Resource Management (EHRM) would increase their performance, and also studied the impact of digitization on HR development, talent management, and performance at work. The findings of the research indicate that there is a positive impact of digital transformation on all variables. Tripathi & Kushwaha [6] strongly recommended that organizations bring forward digitization in HRM practices as it has become very significant these days. Shah et al. [7], showed that digitization of HRM processes enables the removal of many routine tasks, reduces the risk of human error, and empowers experts to solve important issues, enabling them to use their knowledge and skills more effectively in solving business problems. Therefore, based on previous research it shows that the execution of digital HRM is important for an organization to improve its performance and maintain relevance in the digital era. According to Alwehabie [13], there is a statistically significant positive relationship between the planning efficiency of Human resources and every dimension of institutional performance, between efficiency of selection strategies, recruitment, and each dimension of the performance of a company. The use of an HRIS offers incremental leaps in the efficiency and response time of many human resource jobs that are traditionally labor-intensive. The objective of the study is to identify the efficiency and effectiveness of human resource management strategies, in Al Rajhi Bank at Al Qassim, in relation to its institutional performance. This study proved that efficiency in the HR department is beneficial to the company as a whole; therefore there is a need to further increase the efficiency of the HR department if the company wants to increase the overall efficiency of their business. According to Muyano [8], the problems and benefits of using HRIS software in the general elements of two firms Human Resources Departments were investigated. Human Resource Management has had a significant role in determining the direction of businesses in the Philippines. It entails hiring the right people for the right job for a kick-start of the success of an organization, as well as maintaining employee status and monitoring their work on a continuous basis. The work of a Human Resource Department becomes more sophisticated as time passes, and its burden continues to increase dramatically. As a result, the HR department faces the challenge of keeping an orderly workload and the complication of completing their tasks. HRIS implementation in the Philippines is trailing behind in terms of breakthroughs and improvements. Businesses are still struggling to locate a suitable HRIS to buy or create one that meets their specific needs. As a result, in order to stay up with the breakthroughs and improvements in other nations, comprehensive research on HRIS adoption in our country is desperately needed. In light of the data stated, the researchers would like to investigate HRIS implementation in the Philippines, as well as analyze and evaluate the benefits and challenges of two different HRIS systems used by two different companies in the Philippines. In addition, the study's goal is to give the reader/user an option of HRIS to employ in their firm. Sunico, Francisco, and Argana [9] were able to provide a secure automated tool for the HRIS. The module has both a code and a verifier. The planning was done using the Rapid Application Development (RAD) Model. The system was created, deployed, and tested. The system was created using VisualBasic.net, Navicat, and Dezign. MySQL as a database for development. The system aids in the management of employee records, particularly data. Leave credits, service records, and training development programs are all available. It also tracks employee performance and skills and manages the office resources. Using the ISO 9126 standard as a guide, the system was evaluated. Usability (4.27), functionality (4.35), maintainability (4.23), and efficiency (4.23), all have high ratings (4.30). As a result, The system is thought to make a major impact on Human Resource employees' productivity. According to H. I. Butt and M. Babar [14], the ISO 25010 standard has grown in popularity as a tool for assessing software quality in recent years. The use of Likert scales to gauge software quality is one of the core elements of this standard. Due to its success in capturing users' nuanced reactions, the Likert scale which is a commonly used tool in social sciences research has been modified for use in the assessment of software quality. In accordance with the ISO 25010 standard, the Likert scale is used to gauge user satisfaction with software products on a variety of fronts, including usability, dependability, efficiency, and maintainability. The levels of agreement on the scale, which vary from "strongly agree" to "strongly disagree," allow users to choose the one that most accurately reflects how they see each dimension. Although the Likert scale is a useful tool for gauging user satisfaction, it's important to remember that data from the scale can be difficult to interpret. To accurately evaluate and interpret the data gathered from Likert scales in order to make valid inferences regarding software quality, researchers must take care. Overall, the ISO 25010 standard's recommendation to utilize Likert scales to measure software quality offers a useful way to gauge how users see software products. Software developers can attempt to raise the general caliber and user pleasure of their products by incorporating user feedback in this way. Al-Saqqa et al. [15], gave a summary of Agile software development approaches and trends. The writers underline the necessity for flexibility, adaptability, and quick software product delivery when discussing the significance of Agile development approaches in the contemporary software development landscape. The article looks into the twelve principles of the Agile Manifesto, which serve as the cornerstone of Agile software development. The authors provide a quick overview of each Agile technique as well as a list of its advantages as they explore a variety of Agile practices, such as Scrum, Kanban, Extreme Programming (XP), and Lean software development. They also go into detail on the agile development methodology, which entails iterative and incremental development as well as continuous testing and integration. The article emphasizes the difficulties in implementing Agile, such as resistance to change, a lack of skilled Agile practitioners, and the requirement for organizational and cultural change. In their conclusion, the authors emphasize the significance of Agile software development methodologies in the current software development landscape. They claim that these methodologies offer a flexible, adaptive, and collaborative approach to software development that enables teams to produce high-quality products quickly and effectively. 3 RESEARCH OBJECTIVES After meeting with our client and discussing their needs, we have identified specific objectives that will guide our development process. The objectives are as follows: 1. Digitalize manual and outdated paper-based business processes to improve data accuracy and ensure compliance with regulatory requirements, reducing the likelihood of human errors. 2. Develop a human resource information system that automates and replaces manual tasks related to HR management, increasing employee efficiency and productivity. 3. Design and implement an HRIS that incorporates appropriate security controls and measures, such as role-based access control, file integrity hashes, and system logs to ensure the confidentiality, integrity, and availability of employee data. 4. Implement a high-security attendance tracking system with biometric timekeeping measures to ensure accurate attendance data and prevent fraud or tampering. 5. Reduce the laborious process of attendance consolidation and payroll processing, enabling timely and accurate responses in data processing. 6. Protect sensitive employee data and ensure compliance with company data security policies by implementing appropriate security controls and measures in the HRIS. 4 METHODOLOGY In this section of the paper, we delve into the intricacies of the planning and development stages of the system, detailing the methods employed during each stage. 4.1 Research Design Our research design was grounded in the Agile methodology, which allowed us to work collaboratively with the client and incorporate their feedback throughout the development process to ensure that the final system met their needs and requirements. We utilized a range of research methods, including surveys, and interviews to gather data and insights from various stakeholders and design a system that was truly user-centered. Our approach enabled us to work efficiently and effectively, breaking down the development process into manageable sprints with clear goals and objectives, and delivering an effective HRIS that met the needs and exceeded the expectations of our client. 4.2 Research Participants We conducted detailed interviews with important figures of the company to gain a comprehensive understanding of their HR Processes across all the modules that would be integrated into our system. Our interviews and software evaluations included key personnel such as the HR Manager, HR Employees, IT Employees, and the Accounting Manager who are the primary beneficiaries of the system. 4.3 Data Gathering Due to the pandemic, we met with our client via Google Meet for seamless communication during the early stages of our research. Meetings would be done on a monthly basis or at the end of each sprint. These meetings served the purpose of enabling the client to evaluate the system's compliance with their requirements while also providing us with feedback on areas that required improvement. The team utilized Trello, a Kanban board collaboration software, to document and track the progress of the system development process online. In addition, we held scrum meetings with our adviser twice a week, which lasted for about an hour. The primary objective of these meetings was to showcase the progress made in the development of the system and seek guidance on any challenges we encountered. Moreover, we used these meetings to discuss the tasks completed and what we would be working on next. Acceptance tests were conducted during onsite meetings with the client, where we were able to demonstrate the different functionalities of our system and how it performs in a real-world setting. These tests helped to ensure that the system was meeting the needs and requirements of our client. Stopwatch performance tests were conducted during onsite and online meetings with the client, where we have timed our system against the client’s manual processes. These tests helped us know how much our has improved upon their manual processes, specifically efficiency. 4.4 Treatment of the Data Our team conducted a research project for our client, with the aim of developing an efficient and effective HR system. The primary data gathered by us was the HR processes of Company B. We analyzed and studied these processes in great detail, mapping out the various steps involved and identifying the key requirements that would need to be met by the new system. Using this data, we were able to create a blueprint of the new system, taking into account all of the important features and functions required by the client. We worked closely with our client throughout the development process, regularly updating them on our progress and seeking their input and feedback on the system. To ensure that the system we developed met the highest quality standards, we implemented a rigorous testing and evaluation process. At the end of each sprint, we provided the client with a demonstration of the system and gave them an opportunity to assess it. Consistent with the works from H. I. Butt and M. Babar [14], we provided the client with an ISO 25010 form, which enabled them to rate the system according to a standardized set of criteria. The feedback we received from the client was invaluable in guiding our development of the system, and we used this feedback to continually improve and refine the system until it met all of the expectations of our client. Building upon the works of Oluwagbemiga S., Makanjuola N., and Olatinwo S. [17], we conducted stopwatch tests in collaboration with the client to evaluate the performance of key features in our system. These stopwatch tests proved to be invaluable in determining the superiority of our system compared to the client's manual processes. Overall, our approach to developing this HR system was highly collaborative and iterative, with a focus on delivering a high-quality product that met the needs of our client. By working closely with our client and incorporating their feedback and input throughout the development process, we were able to create a system that was tailored to their specific needs and requirements. 4.5 Validation A prototype of the system was developed based on the required specifications and to address the main problems of Company B, with regard to its HR processes. At every end-of-sprint meeting, we focused on the evaluation criteria that the system must meet. The client is given an evaluation form right after the presentation of our system. The criteria of the evaluation form are based on ISO 25010 [16]. The following are the criteria: ●Functional Suitability refers to the ability of a system to offer functions that satisfy explicit and implicit needs when employed under predetermined circumstances, including adherence to relevant laws and standards ●Reliability refers to the ability of a system to carry out its intended functions under specified circumstances for a predetermined amount of time ●Usability refers to the capacity of a system to be efficiently, effectively, and satisfactorily utilized by its intended users to accomplish certain goals in a given context. ●Performance Efficiency refers to the capacity of a system to produce adequate performance with respect to resource usage under specified conditions ●Security refers to the capacity of a system to guard against unauthorized access, use, disclosure, disruption, alteration, or destruction of information and data. ●Compatibility refers to the capacity of a system to function successfully and efficiently with other systems—both existing and planned—in a certain context of use. Consistent with the works from H. I. Butt and M. Babar [14], to evaluate our system, we used a Likert scale metric ranging from 1 to 5, where 1 represented the lowest score and 5 represented the highest score possible. After receiving the ratings from our client, we computed the mean scores for each functionality and analyzed the feedback provided in the end-of-sprint meetings and evaluation forms. We then held a meeting with our advisor to discuss our progress, review the feedback received, and formulate plans for future development of the system. that sensitive data is only accessible to authorized personnel. The system also has a logging feature that records any actions taken within the system, which can be accessed by the system admin for auditing purposes. This led to a mean security score evaluation of 4.11. 6 CONCLUSION AND RECOMMENDATION By implementing an agile approach for the development of the web-based human resource information system of our client, we were able to successfully meet the requirements of our client and achieve the goals that we set for the system. Through our initial requirements analysis, we identified that Company B lacked the necessary technology to streamline and improve its HR-related operations. To address this issue, we decided to develop a system that could manage all procedures efficiently and accurately by digitalizing their manual work processes. To ensure that the system met the needs of the company, we implemented an iterative development process, breaking down the development process into sprints. After each sprint, we presented the system, taking into account the requirements and expectations of company representatives. Our clients were then given an evaluation form to assess the progress of the system, which we used to identify areas of improvement for the system. With this approach, we were able to develop a system that met the demands of the company as well as achieve the following objectives that we set at the start of the development. Our first objective was to digitalize manual and outdated paper-based business processes. As shown from the results of our surveys, the mean score for functional stability is 4.06 which shows that all of the requirements of our client are met together with additional functions that we believe our clients would benefit from. Our second objective was to develop a human resource information system that automates and replaces manual tasks related to HR management. In terms of efficiency, our system outperformed their manual attendance consolidation process by being 7 times faster, payroll processing being 13 times faster, and the time in/out process being 50.44% faster. Our third objective was to ensure the confidentiality, integrity, and availability of employee data. For usability, our system scored 4.13 which shows that the system was able to provide employees with the exact data that they need while maintaining the confidentiality of other parts of the system. Our fourth objective was implementing a high-security attendance tracking system with biometric timekeeping measures. With a mean score of 4.11 for security, client surveys reveal that our system has passed the expectations of our client, as well as all the acceptance tests that were made for the biometric system. Our fifth objective was to reduce the laborious process of attendance consolidation and payroll processing. Given that our client gave us a score of 4.17 for compatibility, we believe that we were able to combine both the HRIS and the biometric system and make them work together without any issues. Lastly, we aimed to protect sensitive employee data and ensure compliance with company data security policies. The system includes both an employee side and an admin side, with the latter being only accessible to a select few user roles. Any actions made in the system are also recorded and can be viewed by the system admin for auditing purposes. In conclusion, the developed HRIS has successfully met the needs of our client and achieved all its goals. By implementing an agile approach and using feedback to guide our development process, we were able to deliver a system that has improved the capabilities of the company and streamlined its HR-related operations. 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