Saturday, October 8, 2011

Chapter 1: The Web and Key Trends Changing Human Resources

Traditionally, HR drivers are described in three terms:

·         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)

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.

HR roles and functions in new era
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.

Benefits and outcomes of transforming HR from traditional to transactional and transformational via HRIS
§  Continual process improvement
§  Productivity improvement
§  Data management improvement
§  Communication improvement

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