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Report 2-20: Inspection on Modernizing Human Capital Management

Date Issued: 
Friday, May 31, 2002
Report Number: 

On May 31, 2002, the OIG issued Report 2-20, Inspection on Modernizing Human Capital Management.  The purpose of this review was to help the SBA to get to a “green” on the related Management Challenge by focusing primarily on SBA delivery systems, HR metrics, and office structure.  This inspection found that the cost and complexity of implementing an integrated human resource information system (HRIS) suggested that it might not have been an appropriate goal for a small agency.  Moreover, the Office of Management and Budget’s mandate to reduce redundancy and effect savings by developing a Human Resources and payroll solution architecture for only two to three Federal providers overcomes the need for comprehensive HRIS implementation in the SBA. 

The Inspection and Evaluation Division made four recommendations, that included:  considering available short-term alternatives; developing business case metrics to determine the cost effectiveness of implementing appropriate functional automation software and/or outsourcing or cross servicing certain HR functions; working with SBA management to develop a measurement system that conforms to OPM’s Standards of HRM Accountability, and that the new Assistant Administrator for HR ensured that relevant HR activities are incorporated into office operations.  The SBA agreed with the overarching purpose of the report, and noted that they intend to incorporate the recommendations, where appropriate, into SBA’s 5-year Workforce Restructuring Plan.