Introduction:
Born on 5th September 1989 in Malaysia’s ‘Furniture City’, I was given the name of Chua Jing Lun, which carry the meaning of respectful and ethical by my parents. I am now an undergraduate who pursuing my dreams of life to complete Human Resource Development course in University Technology Malaysia. During the fifth semester which is the current semester, I am require to study on Human Resource Information System.
According to Kovach et al., (1999) HRIS refers to a systematic procedure used by the human resources personnel for the process of collecting, storing and retrieving on data which are related to human resources activities. However, although HRIS is related to the technology, it is not only limited within hardware or software but it is also about the people, policies and strategic strategies of the HR function (Hendrickson, 2003).
Kovach et al., (1999) also defined the process of HRIS from input to process and provide output.
Input à Data Maintenance (Process) à Output
Input refers to the data entry which the HR personnel insert or key in the data related the HR functions into the system of HRIS. The data maintenance refers to the process which the HR personnel update and manage the data base within HRIS system. As for the output, it refers to the retrieve of the data in a form that can be understood easily. Some people think that the most important things of HRIS is the computer or hardware and also the software used to log on or log in the system. However, Kovach et al., (1990) stated that the most important thing in HRIS is the information itself which is the vital or strategic partner of the HR functions.
As the evolution and advancement of the technology, the HRIS becomes more and more important to the HR functions.
The Web and Key Trends Changing Human Resources
According to Lepak and Snell, (1998), HR drivers are basically described as three types of drivers:
· Operational driver- making it more cost effective by improve efficiency of services and reduce transaction costs.
· Relational driver- improves transactional and traditional services so that the demand of employees and business partners will be increased.
· Internal professional service driver- addresses organization’s strategic objectives.
(Lepak and Snell, 1998)
However, due to the advancement of technology and also the developed economies, John Kay suggested in 2004 that the driver should relevant to technology as well as transformational debate. Therefore, John proposed to add in reputational driver in the HR function.
Reputational driver is a driver which meets the long-term demands of the organizations in the society by being different from the reputation in term of branding.
Ulrich (1996) proposed that in this technological and globalization era, the roles and functions are changing from traditional into transactional and transformational. HR functions in the new world are transformed into:
i. Strategic partner: align HRM practices with organization’s strategic aims and goals.
ii. Administrative expert: orientates actions towards operational tasks (payroll, contracts, and database).
iii. Employee champion: answer employees’ needs.
iv. Change agent: encourage innovation and transformation the organization.
The transforming of HR from traditional to transactional and transformational had bring along the benefits to the HR functions. The benefits of HR transform are:
§ Continual process improvement
§ Productivity improvement
§ Data management improvement
§ Communication improvement
Using Information System for Gaining Competitive Advantages
As HRIS has transformed the strategic HRM from caretaker to strategic partner, it had helped the organizations to achieve the strategic objectives as well as strategic goals. The ultimate goal or objective for each organization is to increase the profits as well as survive in the market. By having the HRIS system as a strategic partner, the organization can gain the competitive advantages to compete with the competitors.
According to Dess, (2005), the nature of competition and also the problems to be solved by using competitive advantages are:
§ Bargaining power of buyers/consumers
§ Threats of substitutes
§ Bargaining power of suppliers
§ Rivalry among existing competitors
§ Threat of new competitors
In order to solve the problems and also gain the competitive advantages, the organizations can use the competitive strategies. The competitive strategies include:
§ Cost leadership- reduce the cost of business by using IT or information system.
§ Differentiation strategy- differ the products from competitors by deliver unique products.
§ Innovation strategy- creates new products or services that includes IT components, to develop a new and unique market.
§ Growth strategy- expanding the company into global markets, expand company’s capacity, or diversify into new products.
§ Alliance strategy- which two or more organizations co-operate in competing with their competitors.
On Globalising HRIS
According to Christopher Bartlett and Sumantra Ghoshal, (1989), the worldwide organizational models can be categorized into four categorized. The organizational models include Global, Multinational, International, and Transnational. The organization can choose any type of the organizational models to be applied in their own organizations. However, each of the models chosen should relevant to the strategic needs of the organizations.
“Each of the organizational models has their own focus within global efficiency, responsiveness towards local issues, as well as the ability to leverage and share innovation and learning worldwide.”
(Karen Beaman and Alfred J. Walker, 2000)
One of the models in addressing global issues is Multinational Model. When the organization adopts this model, it allows the branches to modify the information system of the organization to suit the local context. Multinational Model fulfil the strategic needs for those organizations whose need responsiveness for the local differentiation. Multinational model is flexible and it is responsive to the local needs and also sensitive to individual cultural as well as national differences. Multinational model suit most to the organizations whose are in the sector of retailers and services. For instance, multinational model suit most to the McDonald and also KFC.
Another model in managing global issues is Global Model. When an organization chooses to use Global Model, then the organization must standardize the system all over the branches. Within the model, the decision making, resources, and responsibilities are controlled or centralized by the head quarter. The ultimate objective of using global model is to achieve the global efficiency.
Furthermore, International Model is also one of the main models. International Model is a model which allows the local has the authorities in decision making by referring to the strategies and goals of the head quarter. It enables knowledge and innovation sharing from place to place. It is a model in which the branches all around the world sharing the knowledge from headquarter and adapting the knowledge such as technologies, best practices, services, and expertise into local context.
The last model is Transnational Model. Transnational is the model which Karen Beaman and Alfred J. Walker promote strongly. Transnational model address all of the needs of the needs of the other three models. Transnational model is sensitive to the requirement of local businesses, desire to gain global efficiency, and also focus on knowledge sharing. Therefore, transnational model is the combination of Multinational, Global, as well as International Models which suits all of the organizations.
Summary:
In summary, HRIS is all about input, process, and output. It is a cycle which we will need to insert the data into the data base, maintain the data well, only then we are able to retrieve the data from the data base when we need the information. Although HRIS is a system that relies on technology, it is not only about the computers, the hardware, or the software. However, HRIS is about the people, the strategies, policy, and everything regarding the data and information of human resources within every organization.
In this technological and economic world, the HR drivers should include operational driver, relational driver, internal professional service driver, as well as reputational driver. As the world is experiencing globalization, HR functions had transform from caretaker to be the strategic partner, administrative expert, employee champion, and also the change agent.
Furthermore, as the competition in the world market had become heater, every organization should use some strategies to survive in the market. In order to survive from the heat competition, the organization can choose to use the cost leadership, differentiation strategy, innovation strategy, growth strategy, or alliance strategy.
Due to the globalising, the organizations experience a need in deciding on the model to be used to control, manage, or monitoring their branches or outlets all over the world. The organization can make their own decision in selecting the models that suit their organizations best. The models include multinational, global, international, and transnational. Multinational model is responsiveness to the local differentiation while global model is centralized on global efficiency. In other hand, the international model focuses on knowledge sharing. At last, transnational model is the combination of multinational, international and global models. It is local flexibility, global efficiency, and also leverage of innovative and knowledge.
(1476 words)
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