Paper instructions: Read Application Case 5-1 Human Resource Planning and Virtual Human Resource Management on pages 145-146 in the text. Analyze the case and thoroughly answer the four questions at the end of the case. Application Case 5-1 I: lumttit Rosottt’t:t’ Plutttting tllltl lt’t’lItll lluntan Rt˜:-‘stllll˜t:t3 .ltilltl§:.’CIill˜Ill Just tt few years ago. computer technology offered a revolutionary change in human resource management. Organizations experimented with computerized skills invento- ries. pay and benefits administration. and applicant tracking systems. Today. the revolu- tion continues but is undergoing fundamental changes as computer technology and the Internet grow at unprecedented rates. Human resource management is moving away from a mainframe technology to the world of virtual reality. with the Internet at its core. Although many forces drive this change. one of the most important is the globalization of business. As organizations spread their operations and personnel worldwide. the need for a truly global. integrated human resource inforination system has reached critical levels. The most obvious answer-virtuaI human resource management on the World Wide Web. A 2006 survey of HR decision makers across 325 major organizations in North America indicates that 9 out of 10 firms use the Web for HR.-related activities such as benefit enrollment- This is in contrast to survey findings from 1977 which suggested that only 2? percent of surveyed organizations reported using the Web for its HR systems. Over the past Io years. the nutnber of US. companies using the Web for its I-[R system ltas more than tripled. The most common uses of the Internet in human resource planning are in corporate communications. applicant and resume tracking. and benefits and retirement planning. in the area of recruiting. Humana Inc. has created one of the most advanced applicant identi- fication and tracking systems in the world. Humana is an HMO with approximately 20,000 employees and 6 million subscribers. [is human resource recruiters can rapidly identify. contact. and track qualified applicants for virtually any job opening in their organization. Humana˜s success revolves around a specialized software application, Soltshoe Select, provided by and linked to I-lotjol:rs.com. This software automatically searches millions of individual Web pages looking for resumes that meet any need that Hurnana may have. While setup costs are relatively large (a one-time fee of $50,000 for licensing and configuration in addition to a $2,000 per month lease). organizations such as Humana find that the costs are well worth the efl˜orts. I-lumana. for example. estimates that it previously spent an average of $l28 in advertising to find a single qualified applicant’s resume. Today. it estimates that the cost is approximately $.06. For Humana. that translates into an annual savings of $8.3 million. The Internet is also helping revolutionize a number of other human resource planning activities for many organizations. Citibank. for example. has a single global HRIS that maintains a detailed skills inventory, compensation database. and HR practices for 98 countries and 10.000 managerial personnel worldwide. Numerous other global employers have created employee self-service compensation and benefits systems that allow employ- ees from around the globe to manage many of their own HR activities. For example. em- ployees at Shell Oil Company manage their retirement plans. tnaintain andior change health care coverage. and track other petsonallgfifllhiitiiil inllflfiilfofihflldlihugh an auto- mated. self-service system. Use of the Internet in these kinds of human resource planning activities is not. however. without danger. The ease of access to so much information always has the potential to cre- ate both legal and ethical abuse. both by employees and by hackers. or unauthorized users of the system. Organizations must take all necessary precautions to safeguard the privacy Part Two Acquiring Human Resources and integrity of these virtual human resource systems. The challenges are immense. but the organizational consequences can be invaluable. Sources: Prepared by lames Phillips using information from œ2006 HR Service Delivery Survey Rt-port-Executive Sumtrrary, Towers Perrin (http:h’www.towersperrin.con1 accessed on January 2!. T 2008), Samuel Greengard (August 1998), œHurnana Takes Online Recruiting to a Hire Level.’ Worlrforce. p. 75; Scott l-lays (March 1999), œReach Out to Expats via the Web, Workforce. PP- 46-43³; Gary Meyer (April 1999).. ˜Soltshoe Select: An Engine for Internet-Based Recruiting, HR Magazine. pp. 112-I 6: Steven Mccornticlr (October 1993), œThe Virtual I-llt Organization,˜ Management Accounting, pp. 48-51: l.lnda Sttoh, Sven Grassltoff, Andre l-lucle, and Nancy Carter (April 1998), Integrated Hlt Systems Help Develop Global Leaders,œ HR Magazine, pp. I4-1 7. li’i.-t’tI.-1-it2-it (.}llt.’_1ll[lll-« I . How has the emergence of the lntemet changed the way that organizations plan nd manage their human resource needs? 2. What kinds of future human resource activities might we see developed over the next several years˜? 3. What are the legal and ethical issues surrounding the use of the Internet by individual employees for human resource activities? Are you concerned about violations of your own privacy because of these kinds of Web applications? 4. What specialized skills will the future l-IRIS professional need in order to effectively manage an organization’s virtual human resource function? Notes 1. Bill’Maca1eerandJonesSharmnn(January2tll3).œDoesl-IRP1anninglmproveBusiness Perfor- rnance? lndrrrrrial Management, Vol. 45. Ins. I, pp. 14-21:. Ronald C. Page and David M. Van De Voprt (1985)), œJob linal)-sis and l_li’ayne E grseio (od.)_, Human Resource Planning Emplaynmu & Placement Chhshingtoa, DC: Bureau of Nadonal Afiiiira). pp. 34-72. 2. Kristina I. Bartseh (November 2009). œ’l˜he Employrmat Projections for 2008-I8. Moruhly Labor Review; Buruu of Labor Statistics. 3. Steven Mandet-scheid d Mitdrell Kusy (2005), œHow to Design Strategy with No Dust-Just Rwrltsl Organizational Develmrrenr .bra-rial. Vol. 23. lss. 2, pp. 92-71; Alan Seharf{Januar3r- Pcbnurry I991 ), œSecrets ofstratqie Planning: Rsponrling to the Opportunities ofTornonrrw. Induunbl Management, pp. 9-Io. 4. Btian.B.:Beclter and..Marlr Agtfluselid (2fl5}.. œStr’etem’e.l-lurnan.Ruourees-Manegetnenu When Do We Go From Hue? Joanna! offlanaganau, Vol. 32, Iss. 6, pp. 893-W5; Bob Kane and Ian Palmer (I995), œStrategic HRH or Managing the Employment Rdalionsltip. Intersta- lional Journal ofhfanpawer: pp. 6-21. 5. Kurt Frsche_r (2003), œTraltsforming HRGIohally: The Caitu of Bxcellmce Approach, Human Resource Planning, Vol. 26, Isa. 2. pp. 9-11; Patrick M. Wright (I998). œStrntegy-HR Fit: Don It Really Matter, Human Resource Planning, pp. 56-57. 6. Wayne F. Casein (2003). Marragiag Human Resaruees, ah ed. (Boston: Mefiravr-Hill). p. 177; Page and Van De Voort. œJob Analysis and HR Planning, p. 62. 7. Kenneth .l. Zola and ˜Thomas 1. Chermaek (2007). œHuman Capital Planning: A Review of Literature and Implications for Human Raouree Development. Hurnan Resou rte Development Revieiu Vol. 6. lss. 3, pp. 245-63; Simon Lam and John Schauhroeclr (1998), œlnteparing HR Hanning and Organizational Strategy, Huntnn Resource Monagemerrt˜ Journal. pp. 5-I 9. 8. Susan Carey (Septm 17, 2010), œAha Vote on Airline Merger, Real Work Starts, The Wail Street Jorrmnl, p. B4. 9. Christian Zeller (2004). œNorth Atlantic Innovation Relations of Swiss Pharmaceuticals and the Pronirnities with Regional Biotech Arenas. Economic Geography, Vol. 80, lss. I,