Human Resource Management is the function within an organization that deals with all the functions needed to provide management and direction for the people who work for the organization. The Human Resource Management function has the following verticals: 1. Hiring and Firing of Employees 2. Compensation and Reimbursements of benefits 3. Benefit management 4. Rewards Management 5. Training and Development 6. Performance Management and Career Management Human Resource management also needs to be strategically aligned with the company’s visions in order to determine its policies and practices.
The recent trend in globalization also adds to the challenges of Human Resource Management where cultural as well as geographical boundaries have to be considered into the policies and issues of the people that make the company. HR really needs to be considered as a strategic support partner and not as an administrative service by companies in order to derive maximum advantages from the people it employs. Another aspect of HRM is to create a consistent corporate culture, ensure that there is consistent and timely communication to all the locations.
In the next few pages we will delve deeper into how communication and management via electronic media is essential for HRM to create this consistent corporate culture and provide the maximum strategic support to the growth of the company. Hiring and Firing should be performed by electronic means: One of the key functions of Human Resource Management is increasing the people talent within the organizations. The organization should have electronic means to track the organizational structure and the job descriptions of the various requirements from each department.
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The system should also store the skill sets required for the incumbent for the job. The personnel requisition system should contain both the current job requirements as well as the future requirements in terms of the expected growth of the department and the requirements on the skill sets that will be needed in the near future. One of the reasons why an electronic means is necessary for this is that this needs to be tied into another area of Human Resource Management called training and development of the personnel.
It may be cheaper for the company to plan ahead and re-train some of the personnel according to the future needs if there is a system to track the present and the future needs. Compensation of Employees: This is another area of human resource management that needs to be consistent and competitive with respect to the market conditions. HRM should build and use a system that keeps track of the personnel experience in the areas that are relevant to the company and what the market rate for such skills are.
This is key to retaining good talent and not end up overpaying the employees. Compensation should also be tied to the employees development and performance within the company. This emphasizes the need for a comprehensive system that encompasses all aspects of HRM. Training and Development: Training and Development is a key area that ties in both company’s requirements for new and upgraded skills as well as personnel career planning. Each department should maintain the list of areas that their employees need to get trained on.
The training arm of HRM then must ensure that the required sessions are organized and the participation in ensured. The system helps in tracking attendance as well as the training effectiveness thus meeting the departments’ strategic needs as well as helping HRM provide effective training. Training and Development is an area that gets pushed to the backburner due to day to day job needs and only tracking by electronic means will ensure participation and keep the company needs satisfied.
Training curriculum should be developed and some trainings such as those on organizational policies and standards can be provided online with tracking enforced. Training and Development is also shown to have a direct correlation to employee motivation and increased productivity as appropriate and timely training can allow employees to undertake higher assignments. By use of electronic means devising courses can be comparatively easier if employees can sign up and have the department managers approve the costs incurred.
HRM may then design the training courses which may be provided in classrooms or on the job by shadowing someone else or by planning job swaps. Performance Management: Nothing is more important to a company than measuring and increasing its employees productivity. Electronic performance management when used with proper planning can prove to be an important mechanism in aligning the company’s goals with individual goals and measuring the achievements. In some companies compensation increments are electronically driven by the performance management systems.
Online systems keep this process that is prone to manager subjectivities more objective. This motivates the employees. An electronic mechanism makes it easier for an employee to more from one department to another by keeping the records easily available. An electronic performance management system is so essential in this global economy where managers and their reports may not be co-located, but if both can access an electronic system assured with security and confidentiality then this saves the company huge amounts of money on traveling.
Benefits Management: Benefits for employees include the health plan , the insurance and workers compensation if applicable. This area of Human Resource Management has a lot of legal nuances and the rules need to be updated very frequently. Online access to the polices avoids delays and costly mistakes of not knowing the applicable rules and regulations pertaining to this area. Benefits are also tied to the performance management of the employees as good performers should be rewarded to motivate them further.
Objectivity and flawless linkage between these two areas is crucial for effective Human Resource Management. Case Study: One of the applications that is available in the markets to measure workforce effectiveness is Oracle HRMS(Oracle, 2008). This E-business suite ties in all the areas that have been discussed here starting with Oracle iRecruitment to manage company’s job requisitions and employee applications. This includes Competencies and job qualifications, applicant assignments, recruitment activities, compensation packages, budgets to justify the employee requisition, etc.
This suite also comes with OTA or the Oracle Training Administration as well as Payroll HRMS. The Training Administration connects the organizations strategy for training to tracking the training taken by the employees along with training effectiveness feedback for better future sessions. Oracle HRMS payroll, Time Management and Advanced Benefits packages provides configurable systems for compensation and related calculations. According to Oracle personnel costs constitute 60% of the total expenses of an average healthcare organization.
Therefore controlling and lowering these costs improve the bottom-line. Electronic administration of strategic human resources function delivers workforce intelligence for better decision making. Some other electronic packages are SAP for Enterprise Resource Palnning. “ SAP Employee Self-Service marks a quantum leap. Shop-floor workers can now access the corporations electronic information channels, including the intranet and fully integrated HR Processes” Jan-Christoph, HR Manager, ABB AG.
It is true that when organizations mature and face HR transformation to electronic means huge amounts of time and money is needed initially for training and moving to the new system of performing HR Management, however, based on several companies reports such as ABB, these expenses were well worth the transformation and for long term growth and profitability. Summary The intense competitiveness in the global economy demand efficient support functions and in this context Human Resource as a cost generator must become a profit center (Exforsys).
Human Resources is an important part of a successful enterprise and the information flow in this area needs to have continuous evaluation and follow-ups for the professional development as well as for the welfare of the employees. Large quantities of information are processed in this area and to be able to process all this in an efficient manner Enterprise Resource Planning Tools or ERP tools are being used to help in the workflow and the information flow from different areas to the organizations. Implementing ERPs facilitates in centralized control of huge quantities of information with security and confidentiality.
Implementation of ERP however requires thorough planning to enable the leaders of the human resources to be able to tie all the areas of HR effectively and help in the success of the company by employing and developing the required talent in terms of people. The efficient information flow helps in decision making with the help of the information stored in the ERPs. This would be extremely time consuming in the absence of electronic means. Dissemination of organizational communication and policies to all the employees or to employees based on levels or departments is also facilitated by use of electronic means.
The implementation of ERPs helps with automating the repetitive processes so that only limited HR personnel are required to handle the decision making aspects of the process. Recommendations and Conclusions: The conclusion is the Enterprise Resource Planning systems are key to sustain an organizations growth and to make the most of the human capital of the company. These systems automate the processes and collect information and business intelligence to enable management decision making with the help of real time data.
SAP ERP is used and recommended by companies such as ABB and other companies listed at http://www. sap. com/ecosystem/customers/customers/index. epx. The recommendation is that although electronic usage and process automation reaps documented benefits planning precedes all this and is a pre requisite for any implementation to be successful. It also needs senior management commitment to the expense and the time required to ramp up using the new system. References Losey, Michael R, The Future of Human Resource Management Mathis, Robert L, Ackson, John, Human Resource Management
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