CS 330: Management Information System | Human Capital in SmartBusiness Consulting Inc. | | | Cho, Young Sang | Young Sang 20239371 | yscho88@hotmail.com | Oct. 03, 2012 |

Introduction

Many of the companies spend a large sum on human capital. It is the most important asset in an organization. Also, many of the CEOs agree that the workforce is the largest expense for their business. According to the report, about 50% of new hires leave their job within one year and about 45% of 26-39 years-old expect to leave their job within three years. But turnover in management positions costs 150% of that person’s salary. SmartBusiness Consulting Inc. specialize in developing marketing strategy for small businesses but recently they experience very high staff turnover rate and lost 10% of their consultant. To improve their performance, one must use appropriate information system to overcome their crisis and to better manage their human resource.

Business process in human resource management
(FA = Fully automated; PA = Partially automated; M = Manual) * Hiring employees (PA)
Hiring employees can be partially automated, where collecting resume and posting ads for positions can be automated using computer but setting up the interview, evaluating the candidates and deciding the winner has to be done manually.

* Evaluating employees’ job performance (PA)
Evaluating employees’ job performance can be partially automated, where checking for work completion and evaluation and checking for attendance (absence with/without valid reason, late, etc.) can be done using computer to check their current records. However, checking for social skills, work habit, and attitude must be done in person by observing the employee.

* Enrolling employees in benefits plans (FA)
Enrolling employees in benefits plans can be