Reengineering the Human Resource Information System at Gamma

In 1997, Gamma Health Care Systems embarked on a redesign project for their Human Resource Information System (HRIS). Redesign involved major changes to the existing system to guarantee a very high level of service. This case describes the efforts of the Human Resource Department (HRD) to redesign its HRIS to better meet enterprise-wide goals of cost effectiveness and efficiency. The reengineering project transformed the HRD from a historic role of transaction processing to one of a strategic partner. Description of Gamma Gamma is a growing health care conglomerate that is aggressively pursuing market share in the managed health care market. Gamma is located in Johnstown which is in the western region of Pennsylvania. It’s tertiary area covers approximately a 250 mile radius, and includes six health care centers. Gamma employs over 3,000 health care professionals. Its HRD realized that it would have to make major changes in the HRIS to provide the level of service and support required by senior management. Senior management’s goal was to strategically partner with the HRD to reduce costs and effectively meet and/or exceed the quality expectations of Gamma. Gamma’s Strategy — Development of HRD as a Strategic Partner HRD helps to define solutions to problems of workforce utilization, organizational development, performance measurement, and adaptation to evolving business demands. In addition, HRD delivers a wide range of information services that enable the other business units to acquire, develop, deploy and reward the skill sets and competencies necessary for achieving business goals (Minneman, 1996). HRD executives recognize that the CEO expects them to be true partners in the business (Ulrich and Eichinger, 1995). The challenge in becoming a true strategic partner is the degree to which HRD can assess current operations and come up with better ways of doing work. HRD concluded that redesign of the HRIS could significantly help them deal with this challenge. An effective HRIS can provide a set of tools for achieving support of the business of human resources (Groe, et al., 1996). The focus on HRIS redesign is a paradigm shift for the organization. Previously, Gamma operated with a patchwork of stand-alone human resource applications. Databases that kept track of personnel transactions were not integrated. Redesign enabled the HRD to transform its administrative legacy of red tape into a more strategic orientation. HRIS redesign is nothing new to the health care industry. In many organizations, HRDs and information systems departments are collaborating on enterprise-wide systems designed to provide management with critical information about workforce issues (Santosus, 1995). The comprehensive base of accurate, up-to-date, and readily accessible human resource information that these systems can provide is absolutely essential to the HRD’s ability to perform its key roles (Minneman, 1996). Reengineering the "Early Win" at Gamma Gamma’s reengineering effort was initiated in the Summer of 1996, and implemented in the Fall of 1997. HRIS redesign is expected to reduce costs by $23 million over the next three years. Several "early wins" have already been identified: • Gamma has achieved a complete upgrade to the newest version of the HRIS • Gamma has consolidated affiliate HRISs into an integrated human resource and payroll system Objectives The primary objective of the research was to provide Gamma management an assessment of the progress of the reengineering project. The researchers made use of a questionnaire and interviews to assess the situation. Several items were measured concerning the HRIS: • Level of satisfaction with the personal transaction process • Desirability of additional information from reports • Confidentiality regarding access and distribution of information