Question 1

Indirect benefits are difficult to quantify because:

Accepted Answer

Indirect benefits are typically intangible or difficult to measure, and therefore their occurrence and dollar value can be uncertain. For example, an HRIS may indirectly benefit an organization by improving employee engagement and reducing turnover, but putting a specific dollar value on these benefits can be challenging.

Question 2

In the e-learning example in Chapter 7, better customer service leading to increase in repeat sales is an indirect benefit.

Accepted Answer

The direct benefit in the e-learning example is improved customer service, and the indirect benefit is the increase in repeat sales that comes as a result of improved customer service.

Question 3

Basing the justification of a new HRIS system or upgrade on compliance with Equal Employment Opportunity (EEO)regulations is an example of:

Accepted Answer

C

Question 4

Which of the following guidelines should not be a guideline for a successful HRIS CBA?

Accepted Answer

The objective of a successful HRIS CBA should be broader than just improving the effectiveness of the HR department; it should align with overall business goals and demonstrate value across the organization.

Question 5

The best approach to justify a new HRIS is to identify first what the new software
applications are included in the HRIS.

Accepted Answer

The best approach to justify a new HRIS is to first identify the organization's needs and challenges, and then determine how the new HRIS can address those needs and improve processes.

Question 6

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

Accepted Answer

Estimating benefits is a critical aspect of the business plan for the new HRIS as it helps to determine the ROI, sets the boundaries for functionality, and justifies the investment in the new system.

Question 7

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

Accepted Answer

The first 5 years is typically considered a critical period for estimating costs and benefits of a new HRIS, as it allows for a comprehensive analysis of implementation, adoption, and initial returns on investment.

Question 8

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

Accepted Answer

Using a cost-benefit analysis is the best way to justify the implementation of a new HRIS system. It involves comparing the costs of the new system with the expected benefits, such as increased efficiency and productivity, reduced errors and delays, and improved data accuracy and reporting. This approach provides a clear and quantifiable rationale for investing in the HRIS system and can help decision-makers evaluate its potential impact on the organization's overall performance. While benchmarking, employee information and savings from self-service employee portals and decreasing the number of HR employees are useful considerations, they are not as comprehensive or conclusive as a cost-benefit analysis.

Question 9

An HRIS can provide the primary infrastructure used to:

Accepted Answer

An HRIS can provide the primary infrastructure used to deliver HR programs, ensure HR regulatory compliance, and produce the metrics that are used to evaluate HR programs. Therefore, all of the above options are correct.

Question 10

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

Accepted Answer

The ability to attract and retain higher-quality employees is an indirect benefit because it is not a direct financial gain but rather an enhancement in organizational capability and employee quality.

Question 11

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

Accepted Answer

Benchmarking refers to the practice of comparing one organization's processes and HR programs to those of other organizations in the same industry, in order to identify areas of improvement and best practices. Using HR audit metrics as a benchmarking tool can help a company determine how its HR programs stack up to competitors, and identify areas where it may need to improve in order to attract and retain top talent.

Question 12

A legacy HRIS system refers to an HRIS system that was borrowed from another company.

Accepted Answer

A legacy system refers to an outdated or obsolete system that is still being used, often because it may be difficult or costly to replace. It does not necessarily have to be borrowed from another company.

Question 13

Investment analyses for an HRIS are based the following information:

Accepted Answer

The investment analysis for an HRIS needs to consider the time when the organization will incur each cost, sources of costs and benefits, and an estimated dollar value for each cost and benefit. The availability of the new HRIS software and cost of obtaining financing are also important factors, but they are not as critical as understanding the costs and benefits in detail. Therefore, option D is the most suitable answer.

Question 14

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

Accepted Answer

The preliminary estimate of CBA should be presented to senior management before starting detailed work on the project. This will ensure that they have a clear understanding of the potential costs and benefits of the investment and can make an informed decision about whether to proceed with the project or not. Waiting until the actual implementation begins may result in unexpected costs or benefits and it may be too late to change course. The reputation of the HRIS vendor is not a reliable indicator of the actual costs and benefits of the investment.

Question 15

An indirect benefit of revenue enhancement from an new HRIS is:

Accepted Answer

With an new HRIS, the system can provide valuable reports and data analytics that can aid managers and executives in making better decisions. This indirect benefit can lead to improved productivity and efficiency, which can ultimately lead to increased revenue.

Question 16

Increased technical support needed for an HRIS implementation is an example of:

Accepted Answer

Increased technical support needed for an HRIS implementation is an example of indirect costs, which are costs that are not directly associated with the production or delivery of the product or service but are necessary for the business to operate. This includes things like training, maintenance, and support. It is not a direct cost because it is not directly tied to the production of the HRIS system, and it is not an out-of-pocket cost because it is not a cost that is directly paid for by the company.

Question 17

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

Accepted Answer

The answer of Average Employee Contribution and employees variance in...

Question 18

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

Accepted Answer

A CBA (cost-benefit analysis) is indeed a comparison of the projected costs and benefits associated with an HRIS (human resource information system) investment.

Question 19

Variance estimates for costs and benefits are important because:

Accepted Answer

Variance estimates provide a range of values for expectations, allowing decision makers to understand the potential range of costs and benefits associated with a decision. This information is important in making informed decisions and managing risk. While statistical analyses may be used to interpret variance estimates, they are not the sole purpose of variance estimates. Transaction values are not directly related to variance estimates.

Question 20

The focus of a CBA for an investment in additional or updated HRIS functionality must be related to

Accepted Answer

The focus of a CBA (Cost-Benefit Analysis) for an investment in additional or updated HRIS (Human Resource Information System) functionality must be related to improvements in organizational effectiveness. The purpose of HRIS is to support the HR department in achieving its goals, which ultimately contribute to the success of the organization. Improvements in organizational effectiveness can result from better information management, increased efficiency, automation of routine tasks, and the ability to generate reports and metrics for better decision-making. The ease of implementation, availability of technical support, and size of the HR professional staff are important considerations but not the primary focus of a CBA for HRIS investment.

Quiz 7: Cost Justifying Human Resource Information Systems Investments