The country of Bigland has a democratically elected government which verifies broad national policies. Local services such as education, social care and environmental services are the responsibility of the elected local government for the regions. These regions are funded by a combination of local taxes and government grants. The largest region is Middle region, which is about to make a new workforce strategy for its many local government employees. Recently it has received a report from its external auditor into its overall arrangements for achieving value for money. The external auditor has made three recommendations relevant to human resources (HR):

• There requires to be greater clarity over the distinctive roles carried out by both Middleregion's Human Resources Department and line managers in developing and executing HR practices;

Explain the costs Middleregion should take account of when considering moving to e-HR.

Software purchase or development costs

The cost of moving to e-HR will depend on what Middleregion needs the system to do. A system can be purchased or developed to undertake one task, like the recording and monitoring of overtime levels, or can be integrated so that it supports a range of HR activities and is connected to other organisational systems like payroll. Middleregion needs to clarify the HR services and information it requires. Once this is completed, the scope of e-HR should be determined by considering whether these HR services and information requirements are best given in their current form or whether provision by e-HR would be preferable. Following this, costs may be estimated and a decision taken involving a weighing of costs and benefits. What is significant is to articulate how e-HR will support and add value to the achievement of Middleregion's workforce strategy.