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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Transitioning from a Proprietary to Vanilla HRIS: The Resulting Implications for Talent</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Sharna Wiblen</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
          <xref ref-type="aff" rid="aff1">1</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>University of Sydney</string-name>
          <email>Kristine.dery@sydney.edu.au</email>
          <email>david.grant@sydney.edu.au</email>
          <xref ref-type="aff" rid="aff0">0</xref>
          <xref ref-type="aff" rid="aff1">1</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Australia Sharna.wiblen@sydney.edu.au</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
          <xref ref-type="aff" rid="aff1">1</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>David Grant, University of Sydney</institution>
          ,
          <country country="AU">Australia</country>
        </aff>
        <aff id="aff1">
          <label>1</label>
          <institution>Kristine Dery, University of Sydney</institution>
          ,
          <country country="AU">Australia</country>
        </aff>
      </contrib-group>
      <pub-date>
        <year>2010</year>
      </pub-date>
      <fpage>326</fpage>
      <lpage>341</lpage>
      <abstract>
        <p>There is an increasing awareness of the significance of talent and talent management to an organisation's performance and competitive advantage. Similarly there is increasing recognition that human capital and talent issues permeate throughout most segments of an organisation. Accordingly, when an organisation decides to change its processes and the way that it conducts its business, talent management will be affected. Based on an in-depth case study, this paper shows that the decision to transition from a proprietary to a vanilla HRIS, significantly affected the way in which the organisation viewed and managed its talent. By applying a social construction of technology based approach (SCOT), this paper further argues that it is important for academics, practitioners, consultants and organisations to be mindful of the potential positive and detrimental talent management implications of altering technology.</p>
      </abstract>
      <kwd-group>
        <kwd>Human Resource Information Systems (HRIS)</kwd>
        <kwd>E-HR</kwd>
        <kwd>talent management</kwd>
        <kwd>implications</kwd>
        <kwd>social construction of technology (SCOT)</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>Introduction</title>
      <p>
        The argument that an organisation needs to manage its human capital assets has a long
history and has been previously addressed by academics, practitioners and consultants
interested in personnel management, human resource management, and strategic human
resource management. However changes in demographic patterns, the „war for talent‟,
talent shortages and several other factors have today combined in a manner which
further encourages organisation‟s to identify, recruit, maintain and develop individuals
who are deemed „talent‟. The above changes have provided compelling reasons for
organisations to attend to their human assets through talent management. So much so
that the increasing importance of „talent‟ has prompted many senior executives of
organisations to not only state that “our people are our greatest asset” but to undertake
tangible strategic actions that embody these claims. Furthermore the ability to
effectively manage talent within an organisation has benefited from the introduction of
technology. The range of technology available to organisations is diverse, and within
the academic and practitioner sphere is referred to in a number of ways including
EHRM [e.g. 39, 40, 44], web-based HR, virtual HR and/ or Human Resource Information
Systems (HRIS) the focus of this paper is on the later. HRIS are integrated systems used
“to gather, store and analyse information regarding an organisation‟s human resources”
[
        <xref ref-type="bibr" rid="ref19">23</xref>
        ] and are considered to be one of the most dynamic and potentially useful
technologies in business today [
        <xref ref-type="bibr" rid="ref25">29</xref>
        ]. Increasingly organisations are using information
technology to support and enhance activities that are critical to their competitive
advantage [11].
      </p>
      <p>Literature that advocates for connections between technology, specifically HRIS and
talent management exists [e.g. 3, 10, 47] however very little empirical research has
been conducted to date. Similarly, very little research has been offered which examines
the how changes in HRIS impact upon talent management. As such this paper will focus
on the impact of an organisation‟s decision to alter their legacy HRIS technology upon
its human capital assets. Overall this paper will present a comprehensive examination
and analysis of one organisation‟s decision to transition their HRIS and the
consequential impact of this decision for talent management. The findings suggest that
it is important for academics, practitioners, consultants and organisations to be mindful
of the potential positive and detrimental talent management implications of altering
technology.</p>
      <p>The paper comprises of six main sections. In the first section we review the literature
that discusses HRIS paying particular attention to previous studies and reports that
recognise the connection between technology and talent management. In the second
section we discuss the methodology applied. In the third section we provide an
overview of the organisation and its history with E-HR and HRIS. This section is then
followed by a discussion of our results which has discovered that altering technology
has resulted in two significant changes. The final section summaries the findings and
provides recommendations for academics and practitioners.
2</p>
    </sec>
    <sec id="sec-2">
      <title>Introducing Human Resource Information Systems (HRIS) and</title>
    </sec>
    <sec id="sec-3">
      <title>Talent Management</title>
      <p>
        The term human resource information systems (HRIS) has been researched and
discussed by a number of academics [e.g. 8, 18, 20, 25] and although there appear to be
differences in the way that HRIS are specifically defined, there are common elements
believed to be associated with the term. Some of the confusion that stems from defining
HRIS is associated with the desire for some academics, practitioners, consultants and
vendors to assume that a HRIS is hardware or software associated with information
technology (IT). To enable a more comprehensive analysis, HRIS are believed to
include more than just hardware and software, it also includes people, policies,
procedures and data required to manage the Human Resource function and also the
human capital assets of the organisation. Thus a functional HRIS must allow and enable
the assimilation of procedures and policies to manage an organisations human capital as
well as the hardware and software associated with the HRIS [
        <xref ref-type="bibr" rid="ref19 ref21">23, 25</xref>
        ].
      </p>
      <p>
        It is not surprising to learn that one of the first perennial issues that organisations need
to deal with when embarking on the selection and implementation of technology is the
extent to which they will seek customisation. Most specifically, organisations need to
determine whether they will tailor their existing human resource processes to fit with
the functionality of the technology versus customising the functionality of the
technology to fit their existing human resource processes. With reference to HRIS, the
first category, where modifications are made to organisational processes is commonly
referred to as „vanilla‟ or „vendor‟ HRIS and the later category, where modifications are
made to the technology are known as „proprietary‟ or „customised‟ HRIS. Evidence to
date shows that most organisations choose to select, implement and maintain „vanilla‟
HRIS because of the considerable costs associated with making changes to the
technology [
        <xref ref-type="bibr" rid="ref37">41</xref>
        ]. Regardless of the approach adopted, the implications of the decision
has found to be complex [
        <xref ref-type="bibr" rid="ref12 ref9">13, 16</xref>
        ].
      </p>
      <p>
        The use of the term „talent management‟ gained momentum and popularity in the late
1990‟s as the phenomena, today referred to as the „war for talent‟ began to rise. The
realisation that a number of previously separated demographic and global business
patterns were combining in a manner which was about to have important implications
for business lead to an increase need for talent management. The McKinsey &amp;
Company‟s study of 1998 [9] drew widespread attention to a rising demand for
talentintensive skills that would outpace supply in many industries and markets. Stahl et al
[
        <xref ref-type="bibr" rid="ref38">42</xref>
        ] further elaborate upon this influential change in the value of human capital assets
by stating that in the context of the late 1990‟s „talent management‟ came to appear
synonymous with human capital management and its influence on an organisations
strategy.
      </p>
      <p>In direct contrast to traditional HRM, organisations that adopt talent management
„…emphasise decisions about the talents of their employees, rather than simply HR
service delivery, and how these talents affect traditional measures of financial and
competitive success‟ [6]. Talent management involves moving beyond a focus on HR
policies/practices, towards a „…deep and logical framework connecting talent to
organisational success…‟ [6]. Talent management involves looking at business strategy
while having both eyes constantly evaluating the talent needs of the organisation pursue
its business strategy today and in the future. It is not essential that academics,
practitioners and organisations agree on definitions of talent and talent management as
it can be argued that an organisation needs to define and pursue talent management in a
manner that is specific to the organisation and its business strategy.</p>
      <p>
        Furthermore, and more specifically HRIS are believed to have the potential to be the
mechanism by which companies monitor and deploy their talent in order to attain and
sustain a competitive advantage [
        <xref ref-type="bibr" rid="ref17">21</xref>
        ]. The more contemporary aim underlying the
strategic use of HRIS in regards to talent management is to focus on making better
decisions, not just producing data faster [
        <xref ref-type="bibr" rid="ref23">27</xref>
        ]. More specifically and of greater interest to
the study of talent management, is the ability for HRIS to produce metrics, analytics and
data about an organisations human capital assets and hence „talent.‟ In contrast to
arguments that proclaim a relationship between the use of technology and talent
management, this paper will focus on the impact of changing a HRIS, a technology used
to manage talent, on an organisations understanding of talent and their talent
management practices.
      </p>
      <p>
        There are a number of debates about technology which have highlighted the importance
of including and considering the role of both the social and material context upon the
selection, adoption and use of technologies [e.g. 14, 17, 33] including HRIS. Such
social construction approaches emerged as a response to the previous assumptions
regarding the deterministic influence and impact of technology. Embracing the social
construction approach, we apply the Social Construction of Technology (SCOT)
approach to both the impact of technology as well as the understandings of talent and
talent management. That is, we assume that the organisations use of their HRIS and
their understandings of talent are socially constructured. The social construction of
technology (SCOT) approach is relevant to this study as it challenges more
technological deterministic approaches and the idea that technologies and technological
artefacts have a pre-given and fixed meaning and in its place argues that the process,
design and selection of technologies are open and can be subjected to contestation [
        <xref ref-type="bibr" rid="ref31">35</xref>
        ].
Thus a technology is seen to be characterised by „interpretative flexibility‟ and various
„relevant social groups‟ who articulate and promote particular interpretations of it. This
meaning, over time tends to become accepted and the interpretation of the technology
stabilised [
        <xref ref-type="bibr" rid="ref10">14</xref>
        ]. The application of SCOT is useful as it enables the authors to recognise
that when considering relationships and experiences with technology and talent, it is
essential that social factors and previous experiences be considered. Hence the process
of talent involves individuals interacting with „facilities‟, „norms‟ and „interpretative
schemes‟. Therefore the opinions of respondents can only be understood in the context
of individuals and groups comprehending, interpreting, using and engaging with the
technologies [
        <xref ref-type="bibr" rid="ref10">14</xref>
        ].
      </p>
      <p>Furthermore this paper will transgress from the themes of previous studies of this
technology which have mainly focused on the type of applications that predominated in
HRIS [e.g. 19, 25, 37], the contexts necessary for the successful implementations of
HRIS [e.g. 4, 26], as well as the conditions that support successful use of HRIS [e.g. 2,
23]. Consideration of previous studies combined with arguments regarding connections
between technology and talent management this has led this paper to be guided by the
following research questions:</p>
      <sec id="sec-3-1">
        <title>Does changing from a proprietary HRIS to a vanilla HRIS impact on an organisations understanding of talent?</title>
      </sec>
      <sec id="sec-3-2">
        <title>If so, what changes can be observed?</title>
      </sec>
      <sec id="sec-3-3">
        <title>What are some of the consequences for the organisation?</title>
        <p>
          By adopting interpretative and constructivist approaches, this research sought to
describe, interpret, analyse and understand the social world from the participant‟s
perspective [
          <xref ref-type="bibr" rid="ref11">15</xref>
          ] regarding the use of technology in talent management which was
achieved using the following methodology.
3
        </p>
      </sec>
    </sec>
    <sec id="sec-4">
      <title>Methodology</title>
      <p>
        An interpretative epistemology is considered the most appropriate for this paper as it
advocates two essential assumptions regarding the creation of meanings; that is that
individuals create their own meanings and secondly that context can affect such
meanings. Furthermore Orlikowski &amp; Baroudi argue that the context of the use of
technology is important, „the design and use of technology in organisations, in
particular, is intrinsically embedded in social contexts, marked by time, locale, politics,
and culture. Neglecting these influences may reveal an incomplete picture of
information systems phenomena‟ [
        <xref ref-type="bibr" rid="ref30">34</xref>
        ].
      </p>
      <p>
        As the existing literature which examines the combination of these two areas is limited,
the research was undertaken as an exploratory case study with the phenomena being the
impact of transitioning HRIS on the concept of talent. Investigation of the research
question‟s required a qualitative research methodology and in keeping with the social
constructivist approach, the paper utilised a number of methods to capture the situated
dynamics that emerge as the HRIS transitioned and the implications of this.
Furthermore an emergent process was followed [
        <xref ref-type="bibr" rid="ref27">31</xref>
        ] and involved the author‟s moving
between emic and etic perspectives [
        <xref ref-type="bibr" rid="ref42">46</xref>
        ].
      </p>
      <p>
        This research adopted an exploratory single site case study methodology [5] which will
be the use of technology, specially HRIS, for talent management. A case study for the
purposes of this research enabled the researchers to systematically gather information
about social settings, event or group which will enable the researcher to understand how
the subject operates or functions [5]. This approach is appropriate as it is well suited to
the study of complex organisational processes and practices [e.g. 1, 22] and has been
used by other researchers whose projects share similarities [e.g. 12, 32]. The data
collection process involved conducting semi-structured in-depth interviews [
        <xref ref-type="bibr" rid="ref41">45</xref>
        ] with
five members of the organisation. All five participants are members of the Human
Resource function of the organisation and were selected on the basis of their
knowledge, understanding and use of HRIS for talent management in the organisation.
The interviews were conducted within the natural setting over 18 months between
February 2008 and October 2009 and were between 37 to 126 minutes in duration. All
interviews were later transcribed and reviewed by the authors [
        <xref ref-type="bibr" rid="ref34">38</xref>
        ]. Through such
methods, this paper sought to add rich empirical data which tells of the stories and
experiences of individuals regarding talent management within the organisations. The
empirical interview data was then analysed [
        <xref ref-type="bibr" rid="ref24">28</xref>
        ] through a double hermeneutic process.
4
      </p>
    </sec>
    <sec id="sec-5">
      <title>The Case Organisation</title>
      <p>The case organisation, ManuOrg has been allocated an assumed name. It is a leading
diversified manufacturing company with operations throughout Australia, Asia and
New Zealand and employ‟s more than 7,200 individuals across its businesses.
Throughout its history, ManuOrg has experienced a number of significant changes in
relation to its structure and operations. Despite such changes, the organisation has
continued to maintain and manage their talent management processes and human
resource activities primarily through a highly customised proprietary HRIS. As such the
use of their legacy HRIS was complex and steeped in history.</p>
      <p>Today ManuOrg‟s primary HRIS, has become a system that has been “…maintained,
developed, and run…totally in-house” (HR Manager A). Through progressive
implementations and the changes made to the functionality of the HRIS over the past
ten years, ManuOrg now has an integrated HRIS that is in no way a „vanilla‟ HRIS.
Rather ManuOrg‟s current HRIS is a tailored system that specifically addresses the
needs of its different businesses and the organisation as a whole; „…the company has
been pretty well served from something that has been done in-house and tapered
according to the needs‟ (Executive HR Manager). Representing a significant break with
the past, in 2008 the decision was made to transition away from its proprietary HRIS to
a more vanilla system provided by a major HRIS vendor SAP.</p>
      <p>The data derived and analysed for this paper has discovered that the organisational
change in question has resulted in two significant changes. Firstly the organisations
understanding of talent and hence desired skills and capabilities altered from more
general information technology skills combined with a long history of the organisation
and its internal operations to specific information technology skills (those which are
needed to use SAP) and the ability to deal with change. The second change
encompasses a number of alternations experienced in the structure and management of
talent in the organisation. The second talent management changes are seen to be direct
consequences of the first.
5</p>
    </sec>
    <sec id="sec-6">
      <title>Key Changes</title>
      <sec id="sec-6-1">
        <title>What is considered to be ‘talent’ begins to change</title>
        <p>The change from the organisation‟s proprietary HRIS to SAP has resulted in ManuOrg
repositioning its understanding of talent and the desired skills and capabilities which
will add value to the business and enable it to pursue its strategic goals. As one of
Australia‟s oldest organisations, ManuOrg has been able to create an organisational
culture that is steeped in tradition and history. Such an emphasis on history can be
viewed in their ability to create, build upon, and maintain a legacy HRIS that in 2008
was more than 20 years old. The organisations understandings of talent, has previously
included notions of history and loyalty such that many employees have created career
paths within the organisation. The pursuit of organisational focused career‟s can have a
number of benefits for the organisation and the individuals involved. Firstly the
organisation is able to gain greater returns from investments in training and
development combined with the ability to maintain knowledge about the organisation
within the organisation. Similarly the individuals that stay with the organisation have
been rewarded for their loyalty and organisational commitment with security in
employment and promotions. During the data collection phase of this research, the
research team personally liaised with a number of employees who had been with the
organisation for more than 20 years. More surprising was that our primary point of
contact for the project had served an impressive four decades with the organisation.
Despite continuing to recognise the value of long term organisational commitment,
members of the human resource function within ManuOrg recognise that the guard is
changing and as such the supremacy of organisational careers are beginning to wain.
The Executive HR Manager recognised this change:</p>
        <p>I think historically from talking to people around the business, you can talk to
people who‟ve had careers in a number of streams within the various businesses
that ManuOrg has owned over the years, but I don‟t get a sense of that from
more current joiners.</p>
        <p>The change in mindset regarding the essentialness of long serving employees coupled
with the changes resulting from the implementation of a new HRIS has also encouraged
ManuOrg to re-evaluate the skills and capabilities that it desires from the „talent‟ within
the organisation. Given the long and established history of ManuOrg as one of
Australia‟s oldest organisations (ManuOrgs website) it may be unsurprising to learn that
previous human resource and talent management policies and practices have been
normalised in the organisation. As such, individuals deemed as „talent‟ for the
organisation centred upon the possession of an extensive knowledge and understanding
of the organisation and its different businesses.</p>
        <p>Furthermore one category of employees within the organisation that will be
significantly affected by the transition is those employed within the existing HR
department. As the legacy proprietary HRIS has been customised to meet the needs and
demands of a wide range of stakeholders, including the existing HR function, the
structure and approach of the HR function will be required to change. To date,
individuals employed within the HR team have lived through very few technology
platform changes over the years. Similarly the composition of the HR team has
experienced very few changes. Despite the small number of individuals located in the
HR team, the length of service for the team is noteworthy. Both team members that
were associated with implementing the original HRIS in 1986 are still both with the
organisation.</p>
        <p>Yeah well we‟ve had a really good system, customised system and that‟s mainly
because of [HR Manager A] and [HR Manager A]‟s got a very like sharp mind
and stuff and has done some brilliant things with it and he‟s got [HR Team
Member C] who works with him who is again very sharp (HR Team Member
A).</p>
        <p>Consideration of the above analysis illustrates that the previous desire to retain talented
individuals because of their knowledge and expertise in the organisations proprietary
HRIS was seen as a significant driver of the organisations understanding of talent. On
the most general level, the desired skills and capabilities included general information
technology skills combined with a long history of the organisation and its internal
operations. In contrast, the significant change to be undertaken has resulted in a new
skill set to be added to the understanding of talent for the organisation: the ability to
undergo and contend with change. Now one of the most valued talents is the ability to
change: “The most obvious one is the capacity for change.” (Executive HR Manager).
The ability for the organisation to maintain its traditional approach recently came under
fire when one of the two key individuals with the required talent to maintain the system
decided to retire. It was during this time that the dangers of their approach to talent were
explicitly recognised: “But [HR Manager A] is retiring…so we need to look at
upgrading because our human capital was within two people and we need to upgrade it”
(HR Team Member A) and hence the current project to replace their proprietary HRIS
gained momentum. The organisation, through its senior management realised that their
traditional talent management processes, which centred on retaining key talent with the
concentrated and specialised organisational knowledge, may not be the most appropriate
for the organisation going forward. To continue the traditional approach to talent was
seen as risky:</p>
        <p>Our risk, and what one of – not the only, but one of the big reasons going out,
looking ahead – was the fact that the more sophisticated and complex we
become, the more dependent we are on principally two people (HR Manager A).
Recognition of the risks has encouraged the Executive HR Manager to re-evaluate the
future needs of the HR function. The selection of SAP as the future HRIS, is seen by the
organisation as a strategic decision that explicitly considers the future needs of the
business in regards to technology capabilities as well as the different capabilities of
talent.</p>
        <p>…but I see it‟s pretty critical for us to focus on and looking at a new system,
how we future-proof it in our thinking as much as possible rather than just
assuming that what we‟ve done for the last period of time as organisations is going
to see us through. But the world of technology and the mind set is just changing
so quickly (Executive HR Manager).</p>
        <p>The strategic selection of SAP will directly impact on the skills and capabilities that the
organisation requires to go forward. The implementation and adoption of SAP will
require the organisation to acquire and retain skills, knowledge and expertise in SAP.
The ability to acquire such talent will not only affect the success of the technology but it
also has the ability to enhance or hinder future talent and operational elements of the
business. Prior to selecting the new HRIS, the organisation had limited SAP talents held
internally. More telling of this widening talent gap was the complete lack of SAP skills
in their existing HRIS maintenance and HR teams. To fill this void in the short term, the
organisation has selected to engage a consulting company with specialised and certified
SAP skills and knowledge to assist with the project. The need to include SAP skills as a
talent in the organisation not only requires modifications to training and development
processes but it also requires a change in mindset. The change in mindset will
“…actually add value to the business” (Executive HR Manager)
Despite the use of consultants, ManuOrg now faces the challenge of acquiring SAP
skills and knowledge for the longer term. This can either be achieved through providing
traditional training and development for existing employees or targeting the acquisition
of SAP skills, knowledge, and expertise through external recruitment. Regardless of the
decision made, each approach will require the organisation to make trade offs between
organisational knowledge, and specific technological knowledge.</p>
        <p>Changes in the external environment coupled with the decision to implement a new and
different HRIS has encouraged ManuOrg to re-evaluate the skills and capabilities that
they consider as talents required to achieve their business objectives. The outcomes of
this re-evaluation have had both positive and detrimental implications upon the way that
the organisation manages its talent.
5.2</p>
      </sec>
      <sec id="sec-6-2">
        <title>Implications of changing an HRIS for Talent Management</title>
        <p>A new understanding of the skills and capabilities regarded as talent has resulted in a
number of talent management implications. Furthermore, we have found that three
specific consequences have been observed in the short term. These are; the need to
balance generational demands, repositioning of teams and functions within the
organisation, as well as the ability to revise their remuneration policies.
Firstly, the organisation‟s explicit desire to increase the number of activities that are
conducted online and facilitated through E-HR processes has implications for the
organisation with regard to their ability to cater for, manage and balance, the differing
needs of employee cohorts such as Generation X and Y with Baby Boomers. The ability
to do this effectively is seen as an important talent management challenge. Generational
differences regarding expectations of technology has factored into the decision making
processes associated with the future technology requirements of the business. The need
to consider and address this area was seen as important by the Executive HR Manager:
So, how do you target the technology in a way that meets the business need but
also is meeting different generations that are in the work force, because clearly
there‟s still a lot of people, I‟m sure in this organisation, that are going to
struggle with the concept of a payslip coming via SMS on their mobile phone,
whereas, for the generation coming into the work force, that „where is it?
Furthermore career progression and talent development is seen to also differ between
generational cohorts of employees:</p>
        <p>I mean like I‟ve dealt with a lot of Gen Y people and you‟ve got some really
open Gen Y people, and then you‟ve got some others that are like well I‟m a
graduate, when I come in here today I‟ll be the managing director tomorrow. So
it‟s trying to manage those types of people (HR Team Member B).</p>
        <p>As ManuOrg adapts their understanding of talent in order to appreciate the differing
skills and capabilities that generational cohorts can provide, polices and processes
regarding recruitment, selection, succession planning and training and development
activities have also been required to adapt. Overall managing different generational
demands and expectations of technology, E-HR and more specifically for the purposes
of the paper, a SAP HRIS, leads to changes in talent management.</p>
        <p>The repositioning of certain functions and teams within the organisation and its
structure are considered as the second category of consequences of transitioning the
HRIS for talent management. As discussed previously, the current HRIS project has
required the organisation to re-evaluate the talents that are required and the strategic
contributions of those talents. This has further caused the organisation to recognise that
many talents held currently within the organisation may not be required to meet the
future direction of the business;</p>
        <p>I guess the challenge for ManuOrg now is what the world looks like going
forward and whether the staff within the current operation are the necessary fit to
what the mission looks like going forward. (Executive HR Manager).</p>
        <p>One outcome of the re-evaluation is the desire to centralise information technology (IT)
skills and talents. In order to centralise and unite IT talent, the organisation is seeking to
reposition existing employees with specialised proprietary HRIS technical knowledge
who currently sit within the HR team to the Business Information Systems (BIS) team.
Previously the HR function, included all of the HRIS team however the retiring
employee recognised very early in the process that this was going to change:
My team, we call HR Services, and as the name implies, we provide services
across the whole [organisation]… The services include the HRIS system, so I
have a team of IT professionals reporting to me, and we maintain and develop
the present HRIS system. That won‟t continue in the future… (HR Manager A).
The Executive HR Manager also saw that the transitioning in HRIS would have talent
implications for the existing HRIS team:</p>
        <p>So obviously one of the things that will probably come out of the new system
is… a move towards a more conventional structure of that [the HRIS] team
within the IT structure.</p>
        <p>The decision to relocate the existing HRIS team from HR to BIS recognises that the
individuals with extensive knowledge of the proprietary HRIS and the organisation are
no longer regarded as contributing strategically to the performance of the HR function.
The individuals affected by this transition will not only be relocated to become
members of the BIS team, but they will also need to be found alternative roles as their
previous positions are now redundant. When asked by the research team about what will
happen to the current HRIS team when the transition to SAP is finalised, the HR
Manager discussed how the team will be totally disbanded and that particular members
may leave the organisation if alternative positions can not be found. The Executive HR
Manager shared similar sentiments during the same discussion. He stated:
I mean clearly we‟re not going to need HRIS skills. Each of the individuals have
a broad set of business skills, the issue is if there is a suitable role that they can
move into to. So, it‟s really more around is there actually a meaningful role that
makes sense both from the company standpoint and obviously from the
individual standpoint.</p>
        <p>Given the move to SAP knowledge, skills and capabilities, the organisation has also
sought to externally recruit additional individuals to strengthen the capacity of the BIS
team. To date the organisation has recruited three such individuals that reside in the BIS
team and are working in hands-on positions regarding the roll out of the new SAP
HRIS. Despite their talents in SAP, it is important to recognise that none of these
individuals have knowledge of ManuOrg and its operations. The organisation
recognises that they have needed to make talent management trade offs. The newly
appointed HR Manager (replacing the retiring manager) accepted this talent
management decision point:</p>
        <p>I think whether you go with an SAP versus business knowledge, its like
anything, it‟s like when you recruit for any role. Do you go with someone who has
got subject matter expertise, which one can you learn the quickest to actually get
you over the line (HR Manager B).</p>
        <p>The most significant change regarding the management of talent for ManuOrg as a
result of transitioning their HRIS involves the relocation of their Accounting function,
including their payroll team from Brisbane to Sydney. Consequently this decision
involves not only a relocation of a function from one state to another, but also the
“phasing out” out and replacement of an entire team of employees. Again recognising
the talent implications of changing from a proprietary to vendor HRIS has directed the
organisation to re-evaluate the role and position of the payroll team in a similar manner
to the HRIS IT team. Members of the payroll function previously located in Brisbane
were given the opportunity to relocate to Sydney however all declined and as such, all
of the employees now employed as part of the payroll function located in Sydney are
new to the organisation. This has been challenging for the organisation. “…I had
another challenge in that ….my payroll team, for instance changed. You know, they
were up in Brisbane and now we‟ve moved them down here. It‟s a whole new team”
(HR Manager B). During the process of relocating, the organisation resolved to operate
both payroll teams simultaneously. This presented additional talent management
challenges as neither team was knowledgeable of both the new system and the
organisation:</p>
        <p>Unfortunately what we‟ve ended up with is not surprisingly a disenchanted
Brisbane team, the team that know the business and a completely new team who
don‟t know the business at all (HR Manager A).</p>
        <p>The organisation has also needed to manage the talent and knowledge implications of
this move which has compounded some of the challenges. Furthermore the decision to
transition their HRIS has required the organisation to choose between the organisational
knowledge and technology talents in regards to their payroll team. The existing payroll
team members were employees that were well versed in the proprietary system rather
than SAP payroll and hence their talent set was deemed less salient. In contrast, the new
payroll team is well versed in SAP but not the organisation. The new HR Manager
reflected upon this during our most recent interview (October 2009):</p>
        <p>All that knowledge is gone. Not gone, sorry, all that knowledge you can no
longer use in the new systems, so I think that is some of the challenges that we
have.</p>
        <p>He then continued:</p>
        <p>I guess that it would be great to have people who had very, very good
knowledge in the business of SAP and our payroll, but you see that‟s quite difficult
because all of our expertise has been with our legacy HRIS system… So unless
you buy it in, and then your not getting the organisational bit, so it‟s a bit of a
catch-22 (HR Manager B).
The organisations decision to reposition the IT experts from the previous HRIS team
from members of the HR team to the BIS team, combined with relocating and replacing
the payroll function are two direct talent management consequences of the transitioning
from a proprietary to vendor HRIS.</p>
        <p>The third consequence of undertaking an upgrade of the organisations HRIS is seen to
centre upon perceived opportunities for ManuOrg to adopt a more strategic talent
management mindset. This change in mindset would then be reflected in the
organisations remuneration policies and distribution of short, medium and long term
incentives. The Executive HR Manager recognises that their remuneration policies and
practices have adopted more traditional human resource management approaches which
pursue equity. Although the more traditional human resource approach is believed to
have served them well in the past, it may not be the best way for the organisation to
manage the remuneration aspects of the business in the future:
…I think it is, but for a whole lot of good reasons, we‟ve tended to have the
onesize-fits-all, and that‟s going to have to be tested and I suspect changed to reflect
where the different streams of the business are… At the moment, the LTI [long
term incentives] is obviously structured around an equity plan and what‟s the
value of that to people who are in one side of the business vis-à-vis another…
The desire to exploit the move towards SAP technology to help drive changes in the
way employees are rewarded is seen as an important strategic issue. To represent such
beliefs the Executive HR Manager continues:</p>
        <p>But I think strategically… it‟s around what are the reward programs around that,
both short term and long term, but I think increasingly the world is moving
towards more of a medium term incentive type approach.</p>
        <p>In contrast to equity and consistency approaches, ManuOrg see‟s that the adoption of a
SAP HRIS will provide them with additional functionality that can be utilised to pursue
remuneration in a way that targets and rewards individuals and/or groups of individuals
that posses the talents required for the organisation to achieve its future business
objectives. The new technology is seen to also enable the organisation to reward
talented individual‟s that add value. Such a transition in thinking represents a move
towards a more strategic approach to talent management through the generation and
management of information.
6</p>
      </sec>
    </sec>
    <sec id="sec-7">
      <title>Discussions and conclusions</title>
      <p>An examination of the existing literature regarding talent management and E-HR
encouraged the authors to seek a greater understanding about the possible talent and
talent management implications of an organisations decision to alter technology which
was highly customised. The results from a detailed exploration of one organisation‟s
transition from a long standing, highly customised proprietary HRIS, to a vanilla HRIS
provided by SAP has uncovered a direct impact between this transition and the
organisations understanding of talent and approach to talent management. In this case, it
appears that the change in the HRIS approach, i.e. the move to SAP has influenced the
desired skills and capabilities of the human resource and IT functions. Given the nature
of existing academic arguments regarding the need for organisations to define the
talents that are essential for the organisation, one could have expected the decisions
surrounding the selection and adoption of a HRIS would have been made with direct
consideration of the organisations talent management strategy and that the organisations
talent management strategy should determine the HRIS. However this appears not to be
the case. In this instance the transitioning of a HRIS had implications for talent.
Although this research draws on only one case, additional research should be
undertaken to consider the causal relationships between technology and talent
management.</p>
      <p>The data derived and analysed for this paper has enabled the authors to discover that the
organisational change in question has resulted in two significant implications. Firstly
the organisations understanding of talent and hence desired skills and capabilities
shifted from more general information technology skills combined with a long history
of the organisation and its internal operations, to specific information technology skills
(those which are needed to use SAP) and the ability to deal with change. The second
impact encompasses a number of changes experienced in the structure and management
of talent in the organisation. The second impacts are seen to be direct consequences of
the first.</p>
      <p>The results also show that an organisations understanding of talent is socially
constructured. Furthermore it is argued that an organisations understanding of talent,
and their approach to talent management should change as the organisation undergoes
change. It is believed that such changes are an essential consequence of pursuing talent
management because talent management involves the management of talent in
connection to the organisations business strategy of today and the future. Through the
presentation of one case organisation, ManuOrg has demonstrated how the decision to
make changes within the organisation, such as a change in HRIS, should encourage the
organisation to re-evaluate the skills and capabilities that they desire and that contribute
to the pursuit of their strategy. Changes in technology will also affect talent
management policies, processes and activities. The impact of transitioning technology
on talent and talent management is an area that currently lacks extensive consideration
by academics and practitioners. It is suggested that future research and studies that
address E-HR, HRIS and/ or talent management may like to further consider such
impacts and extend this body of knowledge.</p>
      <p>
        By adopting a social construction of technology approach to the study of talent, the
paper‟s findings demonstrate that the study of technology and its impact on talent
management is determined in part by the agency of the individuals involved and the
social context within which the organisation operates [
        <xref ref-type="bibr" rid="ref29">33</xref>
        ]. In sum, it is only through the
appreciation of both the material and the social can more informed understandings of
EHR and talent management be obtained. These findings corroborate those of existing
literature that apply SCOT to the study of technology [e.g. 14, 16].
      </p>
      <p>
        As organisations increasingly compete through talent [7], and continue to realise that
the management of their talent is critical to their operations and survival, the use and
application of HRIS, through access to encompassing information, may allow
organisations to more effectively and strategically manage their talent and allocate
resources. A growing awareness of the changing nature of business through
globalisation combined with changing demographics such as an ageing population and
talent shortage, compels business to focus more of their attention and energy on not
only retaining their talent but also keeping them actively engaged in their work [
        <xref ref-type="bibr" rid="ref20 ref26 ref32 ref39">24, 30,
36, 43</xref>
        ]. In this environment, it will be critical for organisations to manage their talent in
a more strategic manner than they have been accustomed. Furthermore it is believed
that the technological factors, such as HRIS, which are also constantly evolving will
bring with them talent management opportunities and solutions.
      </p>
      <p>Despite the findings and contributions made by this paper, the potential connections
between technology and talent management still present an area for future research.
There are possible connections that can be made between technologies such as HRIS
and talent and talent management however additional in-depth comparative case studies
considering a diverse range of organisations according to industry, location and size will
further enhance our understanding of this phenomenon. Furthermore, additional
theoretical lens such as technological determinism, discourse analysis and the
resourcebased view of the firm could also be applied by future analysis.</p>
      <p>Regardless of whether organisations choose to upgrade, downgrade, combine or replace
any form of technology, this paper shows that academics, practitioners, consultants and
organisations should be aware of, and sympathetic to the possible positive and
detrimental talent management implications of pursuing changes in technology.
Furthermore, it is important to recognise that analysis of relationships between E-HR,
HRIS and talent management may be limited however it is important and as such this
paper has drawn upon empirical data to present evidence that making changes to
technology can and will impact talent management.
[10] CIPD. (2005). People Management and Technology: Progress and Potential
Survey Report June 2005 ed. London: Chartered Institute of Personnel and
Development
[11] CIPD. (2006). HR and Technology: Beyond Delivery Change Agenda Change</p>
      <p>Agenda ed. London: Chartered Institute of Personnel and Development</p>
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