Monday, December 19, 2011

Conclusion

Everything in 21st century is about technologies. It is the era of advance technologies and this trend will go on and on. Due to that, the Human Resource needs to change, from the traditional to the contemporary. The Human Resource had become more and more important to  the organizations and the existing of the technologies had benefits the functions of human resources as it goes online.
            The online induction system provides a flexible time program to let the new employees take control over it. The new employees able to get the information needed very easy at anytime and it save the cost of the organizations. As for the performance management system, it helps the managers to evaluate the performance of the employees as well as tracking their own performances. The performance management system then provides accurate information to let the organizations plan for their future.
            At the same time, the web-based recruiting and staffing system allows the organizations to employ the right person that suitable for the positions available. It is both time-saving and also cost-saving.

(176 words)

Web Based Human Resource Planning: Recruiting and Staffing

Recruiting and staffing is the process when the organizations try to employ more employees from the job market to fill up the vacancies within the organizations. Recruitment refers to the process to attract, screen, and select the right person to fit in the right place. Whereas, staffing is a process to select and train the employees to carry out a specific job functions or job responsibilities.
Recruiting and staffing process is a process that all of the organizations use in recruiting the new employees. Traditional recruiting and staffing process is very time-consuming and it is not flexible. By using the traditional recruiting and staffing, there is a high possibilities of the mismatch of the employees with the positions due to the possibly of bias and prejudice of the interviewers or recruiters.
Due to the high possibilities of the mismatch of employees with the positions, the e-recruiting or recruiting and staffing system was developed to carry out the recruiting and staffing process of the organizations. E-Recruitment system refers to the processing system for the employers to advertising the job vacancies and also for the candidates or job applicants to make application online.
The widely used of the recruiting and staffing system or the E-Recruiting system will actually bring many benefits or advantages to the organizations. One of the advantages of E-Recruiting system is it can reach larger scope of target. In this technological era, the amount of internet users is far more than the users of the traditional media or flat media. Therefore, the E-Recruiting system will actually reach a larger target.
What is the process of web based recruiting and staffing system. Refer to the online human resource system, ‘Orange HRM’, there is a component known as ‘Recruitment’. This component allows the organizations whose use this software or system to advertise their job vacancies. It is the process of ‘input’.
After that, the job vacancies advertisement will then be stored in a share data-base that developed by the software provider. When the job seekers access to the data-base to find the job, it is in the stage of ‘process’. In this stage, the software will try to match the qualifications of the job seekers with the requirements of the job vacancies.
After the matching process, the system will then make the suggestions on the suitable or appropriate job vacancies or job positions that suit best to the job seekers. This is in the stage of ‘output’. After went through the three stages, the system is actually helps reduce the time, the possibilities of job mismatch, and also reduce the cost of traditional recruiting and staffing process.


(436 words)

References:
OrangeHRM version 2.6.8, (2011), OrangeHRM Inc. http://www.orangehrm.com. Retrieved
           on 01 December 2011.

Performance Management System

According to Aguinis (2009), performance management is a continuous process that aligns the individuals and teams performances with the strategic goals of the organization. While refer to Neely et al. (1995), performance management system or performance measurement system refers to ‘a set of metrics used to quantify both the efficiency and effectiveness of actions’.
            Why it is important for an organization to have performance management system? In this competitive world, all of the organizations are facing a heat competition among one another. In order to survive in the marketplace, the organization will need to have some competitive advantages as well as strategic goals. Performance management system is a system to make sure the performance of the employees is according to the strategic goals so that the strategic goals are able to be achieved. In addition, nowadays, the world become customer-oriented which customers have the high bargaining power. Therefore, the employees must have a good performance in customer services and this is also measure by the performance management system.
            What is an effective performance management system? According to Tung, Baird and Schoch (2011), an effective performance measurement system or normally be called as performance management system is a system that allows the organization to measure and control its performance in line with the corporate or organizational strategy. Besides, an effective performance management system is able to provide accurate information on the performance to the managers. An accurate information enables the managers to evaluate the employees’ performance to see if they fulfill the efficiency and effectively. At the same time, the accurate information also allows the managers to track down their own performances by using performance management system.
            Furthermore, Langfield-Smith et al. (2009) stated that effective performance management system provides the indicators of the current market position to the organizations and assist the organizations to develop in future strategies and goals. The performance management system will generate the performance reviews of the employees and also the managers. The performance reviews or performance appraisals are actually part of the SWOT analysis. It is because the performance review is a report that outlines the internal strengths and weaknesses of the organization as the employees are the assets that are very important for an organization to survive in the marketplace.
           How to enhance the effectiveness of Performance Management System? According to Ittner et al. (2003), the effectiveness of performance management system can be enhanced by using the multidimensional performance measures. Multidimensional means that that the performance management system measures the performance by using more than one dimension. Multidimensional performance management system allows the managers to measure the performance of the employees in various areas.It provides the information and signals for the improvement in crucial activities and the performances.

(453 words)


References:
Aguinis , H. (2009), Performance Management, Second Edition. New Jersey: Pearson
           Education Inc.

Neely, A., Gregory, M. and Platts, K. (1995) Performance Measurement System Design: A
Literature Review and Research Agenda, International Journal of Operations and
Production Management, (25)(12), 1228-1263.

Tung, A., Baird, K., and Schoch, P. H. (2011) Factors Influencing the Effectiveness of
Performance Measurement System, International Journal of Operations and
Production Management, (31)(12), 1287-1310.

Langfield-Smith, K., Thorne, H. and Hilton, R. (2009) Management Accounting: An
            Australian Perspective, 6th ed., Sydney: McGraw-Hill.

Ittner, C.D., Larcker, D.F. and Randall, T. (2003) Performance Implications of Strategic
Performance Measurement in Financial Services Firms, Accounting, Organizations and
Society, (28)(7/8), 715-741.

Online induction system

Online induction system refer to an online software or system that can be accessed at anytime at anywhere with one condition, the available of internet connection. Online induction system allows the employees to manage and report the information that are needed for them to perform, including the corporate information and other information.
            Before this, the induction program required the new employees to attend the program maybe one to two weeks. In order to let the employees attend the program, the organization is actually suffer the lost of hidden costs. It is because the employees will need to be absented from jobs in order to be involved with the program. The organization will need to pay a higher salary or over time for other employees that cover the tasks of the employees who are away for induction program.
            Besides, when the employees are required to attend the formal induction program, they will actually feel bored as they are away from their families, assumed that the induction program carries out at another place. The employees are also feel bored and de-motivated toward formal program as adults usually do not like formal learning process. According to Jennings (2006), she believes that formal learning is actually not suited to the organization’s employees when they know about technologies and systems.
            The opinion of Jennings was supported by Terry on 2007. Terry is the managing director of New Wave Learning, Castleford, United Kingdom and he shares the same views with Jennings. In Terry view, the adults or employees now are familiar with the technologies. The PCs have went on sale for over thirty-five years and the web had already exist for many years. The world is now focusing on the advance technologies and system-based, it is actually ridiculous to conduct formal or traditional induction program rather than online induction system.
            Online induction system actually brings many benefits to the organization. Firstly, the online induction is actually save the time of the inductor and manager. The inductor and manager do not need to facilitate the induction program and so they will have time for other tasks. Secondly, the online induction system is flexible. It is because the employees are able to access to the online induction system at anywhere on anytime as long as they have the internet connection. By this, the employees can use their free time to complete the induction program online and it makes them understand the information well.
            Furthermore, online induction system can engage the new employees with the user-friendly online interface. Usually, adults learn well when they have the autonomy or take control over the learning process. When the online interface is user-friendly, the employees can control it very well. Besides, as the employees have the autonomy to make decision of the sequence of program to be taken, they are high motivation to learn and they can learn very well.

(478 words)

References:
Jennings, C. (2006), Newsman learns by the 70:20:10 rule, The Age, Retrieved from

Terry, C. (2007) Enabling Staff to Access the Knowledge They Need, When They Need It.
Industrial And Commercial Training, (39)(7), 368-371.

Wednesday, October 12, 2011

Information systems and HRIS in action

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 includeHRISSDD 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)


References:
Kovach, K.A., Hughes, A.A., Fagan, P. and Maggitti, P.G. (2002), “Administrative and
strategic advantages of HRIS”, Employment Relations Today, Vol. 29 No. 2, 43-48

Hendrickson R. Anthony. (2003) “Human Resources Information Systems: Backbone
Technology of Contemporary Human Resources” Journal of Labor Research Vol. XXIV
No.3

Lepak, D.P. and Snell, S.A. (1998) Virtual HR: strategic human resource management in the
            21st century. Hum. Resour. Manage. R. 8, 215-34

Kay, J. (2004) The Truth About Markets: Why some Nations are Rich but Most Remain
             Poor. London: Penguin Books.

Ulrich, D. and Brockbank, W. (2005) The HR Value Proposition. Boston, MA: Harvard
            Business School Press.


Dess, Gregory G., G.T. Lumpkin and Marilyn L. Taylor. (2005) Strategic Management. 2ed.
New York: McGraw-Hill Irwin.

Bartlett, Christopher A., Ghoshal S. (1989) Managing Across Borders: The Transnational
Solution. Boston, MA: Harvard Business School Press.

J.Walker, K. B. (2000). Globalizing HRIS:The New Transnational Model. IHRIM Journal ,
30-33

Saturday, October 8, 2011

Chapter 3: On Globalising HRIS: Part 1

There are 4 main models that allow organizations to use for managing and addressing the globalization issues. However, each of the models chosen should relevant to the strategic needs of the organizations.

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 by legitimize the diversity to suit with local culture.

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. It means that the system used in Malaysia will be same as the system used in South Africa, as well as United States. Global Model is not flexible so that it can fulfil the needs for efficiency throughout the world.

Furthermore, International Model is also one of the main models. International Model 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 combination of Multinational, Global, as well as International Models. Transnational Model fulfil all of the strategic needs, including of responsiveness to local, global efficiency, as well as knowledge sharing.

Chapter 2: 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.

The competitive advantages can be gained by using the competitive strategies. The competitive strategies include:
§  Cost leadership
§  Differentiation strategy
§  Innovation strategy
§  Growth strategy
§  Alliance strategy


Cost leadership refers to reduce the cost of business by using IT or technology. For example, peoples especially teenagers or Generation Ys nowadays prefer buying things online. It is cheaper and time flexible for them. Therefore, some organizations put their products online by using the platform such as eBay, Mudah.my, as well as Alibaba.com. The platforms enable the buyers or consumers to bid or decide on the prices of the products. By using this way, the organizations are able to reduce the cost of employing promoters or salespersons.  

Differentiate strategy refers to the strategy that differ the products from competitors. Let us look about the telecommunication sector. The communication sector id developed from 2G to 3G and now until 4G. When other communication providers such as Maxis, Digi, and Celcom are compete to provide better 3G system for internet, P1 Wimax develop a new system known as 4G which internet speed is proven faster than 3G system. This makes P1 Wimax differ from the others communication system providers and it is the competitive advantages for P1 Wimax to survive in the market.

Innovation strategy is the strategy to create new products or services that includes IT components, to develop a new and unique market, as well as make radical changes to business processes with IT that dramatically cut costs, improve quality, efficiency, or customer services, or shorten time to market. For example, Dell is a computer maker which requires consumers to buy their computers or laptops online. The consumers will have to customize the products they desire when placing their order. This situation allows Dell to satisfy every single customer as well as reduce the stocks keeping.

Growth strategy refers to the strategy in expanding the company into global markets, expand company’s capacity, or diversify into new products. Nowadays, many of companies in Malaysia go into the global market. The companies started to export their products to other countries in this world. When the company able to compete in the world market or global market, they will be able to get more businesses and their profits will be increased. However, the key to compete in global market is IT. All of the companies whose go into global market will set up their official website. They will also communicate with the international buyers via internet. In this situation, they will have advantages in the competition with competitors.

Alliance strategy is a strategy which two or more organizations co-operate in competing with their competitors. This is clearly showed in the co-operation between Airasia Airlines and Tune Hotel. Airasia Airlines is in the transportation sector while Tune Hotel is in accommodation sector. However, they co-operate and come out with packages and promotions that can be booked or order through Airasia website. This strategy enables Tune Hotel to get most of the passengers of Airasia to accommodate in the hotel. For that, Tune Hotel has gained the competitive advantages.