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Introduction of Human Resources Management
Human Resource Management (HRM) is the way of the management to links the people and activities to the strategic of the business and organization. It has several goals such as to meet the needs of the business and management, increase the value of the organization, and help organization to achieve the goals, increase competitive advantage and so on (Marler, 2006; Watson Wyatt, 2002). Besides that, Human Resource Management also is a key of business to managing their worker within a company.
Human resources are the most valuable of an organization. In order to implement a successful business strategy to face the challenge of future, organization must ensure that they have the right people capable of the delivering the strategy.
The activities involved in HRM function are related with the organization. The major HRM activities include job analysis, training, work design, recruiting, compensation, worker health, performance management and appraisal, worker claims and so on. All the data provides by HRM are used by manager in their human resource component of their job.
The benefits of HRM are keep a company appropriately staffed with qualified employees. Through the staff, company have improves employee work efficiency, increased sales productivity, increase job development, and decrease organization turnover. In order to achieve the objective, HRM also need maximize return on investment in the organization and future business plan and minimize the financial risk.
This seminar I will discuss about Human Resources Management and why I will apply it in my final year project. First, I will discuss about how the environment will affect employee's performance and how the system will help organization to improve the employee's performance and objective. Besides that, what information need by manager to manage they staff and make a decision for the organization.
After that, I will discuss what the e-HRM is. By using e-HRM, how it can change the organization between the employees and business process. Besides, I also will discuss the e-HRM model and it includes e-HRM strategy and policy, e-HRM goal, e-HRM type and e-HRM outcomes. Furthermore, I will give some example for the organization that uses the e-HRM for daily operation.
On the other hand, I will explain the network diagram and how the e-HRM process. After that, describe the function of the e-HRM and user interface. In addition, I also will write the critical evaluation to explain why I will choose e-HRM in my final year project and the problem that I meet.
Chapter 2: Performance of Human Resource
2.1 How to improve staff performance
Employee is the most valuable for an organization. Through the employee, organization can achieve their business objective faster. Besides that, they also can increase efficiency of work and quality of product. However, in the past few years, environment forces have affected basic business strategic. Because of the environment, they were implementing Environment Management System (EMS). In the researches, employee attitudes through the implementing EMS may affect environment performance. (Inman, 1999; Klassen and McLaughlin)
Besides that, based on the literature there are four factor such as management commitment, employee empowerment, rewards, and feedback and review is the key to increase the employee environment performance.
As a manager, we must give a commitment to our employee. But, without commitment, whatever new idea or suggestion that implements by organization may destroy. Therefore, through the EMS it provides a format to allow management more better control the organization environment impact (Barnes, 1996). Besides that, by using EMS management clearly establish its commitment to environmental improvement.
Furthermore, organization culture also is one of the issues to affect the environment performance (Harris and Ogbonna, 1998). Therefore, changing the organization culture is necessary to reduce the environment source. Next, allow employee freedom to make environment improvement and without management intervention (Mallak and Kurstedt, 1996).
Next is company scope. Management should be communicated frequently with employees in their business objective, so that the employees can know what is the expected to accomplish the goals (Madsen and Ulhoi, 2001). Furthermore, management should provide some activities and training to the employee to help them increase their knowledge (Wong, 1998). However, insufficient training may result in employees who are unwilling to participate in environment improvement effort. Through the training, employees may more confidence on their work and increase work performance.
Empowered employees not only preferable but also is a basic to implement the organization goal (Enander and Pannullo, 1990). Management should encourage employee empowerment by changing the organization structure. Besides that, allow employees more freedom and power to make a decision and suggestion and also implement good environment practices.
On the other hand, employee involvement also is the key to push employee to be success in their work (Enander and Pannullo, 1990). Good employee involvement planning is the key to pollution management. Without employee involvement the management initiative will become useless. Besides that, employee involvement also determine the relationship between environment and operational.
Furthermore, team member is well designed for employee involvement program to improve the organization performance. And teamwork also plays an important role to the organization to gain more benefit in the future. Besides that, cross functional teams also helpful in achieving environment improvement across department. And it also can achieve the need of department. The benefits of team are improve employee knowledge to complete the organization objective, reduce duplication of effect and complete many task simultaneously (Cai et al., 1999; Leitch et al., 1995).
A good reward system can improve employee performance to perform environment practices. Besides that, reward also can increase employee commitment to be more responsible on the work. Reward can be implemented in several type such as financial reward and recognition awards (Atwater and Bass, 1994; Laabs, 1992; Leitch et al., 1995; Marks, 2001; Patton and Daley, 1998).
Monetary rewards are one of the better motivators for organization to help employee participate in environmental improvement efforts (Lawler 1973). Through the monetary reward, employee will become more satisfaction on their work. For the non monetary reward, it also can increase employee's performance, because not all the employee needs the monetary rewards (Bragg, 2000; Geller, 1991). The reward such as gift certificates, time off for work, paid vacations, and so on. Sometimes, system reward may bring some negative effect to company, therefore manager must choose the best reward to increase employee performance.
Feedback and Review
Actually, organization needs increase the employee performance can use many ways. Through the feedback, it also can improve employee relation, employee satisfaction and productivity in the health care sector (MacStravic, 1990). Besides that, feedback can help employee know their responsibility and communicate between the performance outcomes and reward. Without suitable feedback and communication, employee effort may come to a standstill.
2.2 What information need by manager
Through EMS, manager may more confidence to control the environment performance. Besides that, they also can take an appropriate decision to increase employee performance. On the other hand, the communication between manager and employees are very important. So that, manager can more understands employee needs. Employee also can through EMS to satisfaction their work and more responsible.
Next, employee can have more chance to give some idea and suggestion to manager and together achieve organization objective. Through the EMS, relationship between employee and manager will improve a lot. Besides that, manager also can make decision faster and arrange work more efficiency.
Therefore, by using EMS can bring a lot of benefit to organization. Even though, EMS can bring benefit to organization. But, it was not enough because e-HRM stronger than EMS.
Chapter 3 e-HRM for Human Resources
3.1 What is the e-HRM
Electronic Human Resource Management is a web based tool to automate and support Human Resource processes. Through the e-HRM, a lot of work can be delegated with information technology to the employee themselves. Besides that, implement e-HRM, employees have more opportunity to enter the data themselves. For HR manager, it can build better talent, reward, structure and communication practices.
E-HRM also calls as information and communication technologies. Before using the internet, most the organization are using paper and pencil to process their work (Marler, 2006; Watson Wyatt, 2002). It was waste a lot of time. Somehow, manager was very difficult to make a decision. Therefore, by using e-HRM it enable company to increase competitive advantage (Marler, 2006; Watson Wyatt, 2002). On the other hand, it may have different result such as centralization or decentralization, efficiency and effectiveness (Strohmeier, 2006).
E-HRM includes B2E and virtual HR. Implement e-HRM not only for HR staff, it also provides for whole employee in the organization. E-HRM allows managers and employees direct access to HR and other workplace service such as communication, performance, reporting and so on (Watson Wyatt, 2002). By using e-HRM, employees also can provides some information themselves such as approving pay rises, checking holiday, checking jobs, sort out training schedule and so on.
After that, management and manager can use the system to make a decision faster and accurate. Through the e-HRM, organization can reduce the cost of doing HR transaction and increase the quality of work and response time. Compare with the HRIS system, implement e-HRM are more powerful and cheaper because HRIS system need support by the other department, if not it will difficult to success.
E-HRM include some technology such as HR functional application, employee self service application, manager self service application and so on. The sub functions include staffing, employee performance, compensation, training and development. Besides that, e-HRM also can improve the processes within the HR department and the service toward business.
3.2 E-HRM Model
Firstly is the HRM strategy and policy. Policy of organization separate into 3 parts there are clan approach, market approach and bureaucratic approach (Beer et al, 1984). For clan policy, it mean that delivering quality and innovation. Each organization needs a lot of employee with quality to help the business achieve the objective. Bureaucratic approach is meaning the combine of organization structure and procedures to manage the process. Market policy is determining the value of the business.
Next is e-HRM goal. E-HRM can improve the strategic orientation of HRM. Besides that, it also can reduce the cost of organization and improve the efficiency. On the other hand, e-HRM can increase the client service and improve employees' satisfaction with HRM service (Lepak and Snell, 1998).
Furthermore, is type of e-HRM. In the diagram it divides the HRM into three areas there are transactional HRM, traditional HRM and transformational HRM (Lepak and Snell, 1998). For the transactional HRM is the salary and staff data administration. By using the e-HRM, HR employee can faster to manage the data of employees and calculate the salary in accurate. Second area is traditional HRM. Through the system, manager can employ the new employee that they need. Besides that, manager also can save time to assign the training to his employees. Last area is transformation HRM. Management can easily to change the organization process and the strategic of business.
Lastly is e-HRM outcome. E-HRM outcome include high commitment, high competence, cost effectiveness and high congruence (Beer et al, 1984). The meaning of high commitment is understood of workforce and management willing to change the organization environment. High competence means the capability of the employees to learn the new tasks. Besides, cost effectiveness mean pay level and employees turnover rate. For example, employee claims the medical fee with the organization. Lastly, higher congruence is meaning that internal organization. Example like reward system.
3.3 Sharing of Human Resource Information
Information Technology changing the way of Human Resources Department handles the information sharing and record keeping. Nowadays, employees use the information technology
3.4 Example for e-HRM using at organization
Cold Drinks is one of the largest beverages organizations in Latin America and it export products to the worldwide. Currently, they have around 20000 employees and more than 55 percent of the employees are in the sales area. Because of the competitive advantage, Cold Drinks implementing e-HRM in telecommunication infrastructure and computer literacy prevailing. Therefore, they start teaching their staff to use computer.
Besides that, Cold Drinks also provide some training program to employees such as fill out requisition orders, inventory report and other process to help manufacturer to work more efficiency. During implementing e-HRM, they also face some problem such as employee knowledge problem, budget and hardware problem.
Local Bank had to develop a plan to use ICT (e-HRM) for the HRM activities. During implement e-HRM, they face the problem from senior employees, because they don't have the knowledge on computer. Therefore, they need help from assistance or junior employees.
On the order hand, implement e-HRM also need support from top management. Without top management support, e-HRM will not successful to implement. Local Bank e-HRM goals are oriented to improve the HR function strategic role. Through e-HRM, it has increase internal and external customer service. For manager, they can make decision with accurate information and also can work with other manager to achieve business objective. By using e-HRM, it has become a key to deliver competitive products and service for Local Bank.
Chapter 4 : Technology of Human Resources Management
4.1 Network Diagram
Before organization implement e-HRM, top management must make sure equipment that provide are enough. If the equipment is not enough, then setup e-HRM will be failure. Above is the network diagram and show how to setup an organization.
Organization need server to create a domain. E.g. NewHR.local.my. After that, programmer will create a user name and password to employees. The purpose of username and password is for protect company and employee privacy. If employee key in invalid password then the server will not allow employee access to the system, especially business information. Besides that, install the antivirus into the server for prevent server attack by virus.
The purpose of firewall is protecting company data. Example, if employee uses other network access to the company website, they must key in their username and password. For other user, they can't access to the company website to checking information, because they don't have username and password. Besides that, firewall also can block employee browse to other website such as youtube.com, pps.com and so on. Because website which is not security, it may have a lot virus and attack the server. Therefore, firewall is powerful protection for organization.
Normally, user will direct connect the printer to the computer. For organization, they will setup the printer server because it can connect some printer at a same time. The purpose of printer server is employee no need depends on the particular computer when they need print some document. But, it depends on internet. When internet down, employee can't print the document.
Employee can through the mail server receive the email from company or outside. Example, organization may send the email to employee to attend the training at which date and which time. Besides that, organization may set the new objective and use the email share to employee. Therefore, mail server is very important between organization and employee.
Employees can use the computer to access e-HRM. Without computer, employee can't perform their job. Besides that, employee also can edit personal data or provide some feedback on e-HRM. When user need update business data also need computer. Therefore, organization must provide computer in accurate amount and some backup for prevent computer break down.
Therefore, implement e-HRM need support by hardware. Without hardware, e-HRM will not successful implement in an organization. The weakness of e-HRM is depends on internet. If internet breaks down, manager can't view the data and make a decision. For employees, they can't perform work on time and link to other resources to get solution.
On the other hand, e-HRM also helping HR department handle record keeping and information sharing. Example, when employee access to e-HRM system and select on transport claims application. After that, enter the data such as employee name, employee id, total claim, location, date and so on. Next, save the data into file server and waiting approve from manager. All the process is work by internet. If one of the process failure, e-HRM will not run properly. Therefore, internets play an important role in the organization.
E-learning receives training through internet or organization intranet. E-learning uses electronic networks for sharing and delivering information, and it offer tools and information for helping trainees and employees improve performance. Besides that, training program may include some links to other online information resources for employees to solve the problem. Besides that, e-learning system also includes such process enrollment, test and monitor progress.
The advantage of e-learning is combines with internet and provide good learning environment. Besides that, it also include some links to other training sites and content, control by trainee and easy for trainee to collaborate.
With e-recruiting, organization can change the traditional way by using paper to recruit people. All the application process can via the web in an internet. So that, organization can reduces the time on process and also reduce the manpower in HR department.
Besides that, organization can post the job advertising on the web site such as www.jobstreet.com for a link to information about career. Therefore, organization can save money by using newspaper and magazine. Furthermore, organization also can list down the position that need by them and reduce the process to employ new employee. After that, candidate can through the email to send the resume to organization and waiting reply. The benefits of e-recruiting can help organization employ the right person in the right position.
4.4 Contribution of e-HRM to HRM effectiveness
Nowadays, more of the organizations implement e-HRM because it can share information between the companies. But the internet technology only allows access between organization employees.
For HR professionals, internet allow them to research a new development, post jobs opening, discuss idea with other colleague and also obtain government document. Besides that, the advantage of e-HRM is that employees can help themselves to enter the data or search the information that they need. For example, employees can access to the system submit transport claims or fill in survey.
On the other hand, e-HRM can help organization recruit staff. For example, employers can go internet retrieve information from the website. After that, send the resume to the organization. Furthermore, online appraise system can help managers make pay decision consistent with company policies and employee performance.
Next, employees can through internet to receive the information and help them to solve the problem. And internet also can provide a lot of training program to the employee to achieve the satisfaction of work. Besides that, manager can through the e-HRM receive the online survey of employee satisfaction and review past few year records.
Therefore, e-HRM has brought a lot of benefit to organization and change the work environment for employee.
4.5 User interface of e-HRM
This is one of the function will apply into my final year project. Each employee who want apply leave application must fill up the data first such as employee name, position, and number of days. After finish key in the data, then employee need to click submit button.
After submit, the data will store into database and manger will view the data on the website. After that, manager will make a decision either approve or deny. If the leave application is approve, then manager will change the status and store into the database.
Chapter 5: Impact of using e-HRM
5.1 Critical Evaluation: What responsibilities need by Human Resources Department?
After read some journals and books, I know that HR department has responsibility for a variety of functions related to acquiring and managing employees. The HRM process begins with analyzing and designing jobs, then recruiting and selecting right employees to the right position.
Besides that, training and development is improving employee knowledge to carry out their present jobs and follow the career path in an organization. Next, management must ensure that employee's activities and output match with the organization objectives or goals.
On the other hand, human resource department also need to plan and administer the organization pay and benefits. They carry out activities in support of employees relations, such as communication programs and discussion among employees. In addition, management also depends on human resources professionals for help in labor laws and support organization strategy such as human resource planning, change working environment and change management.
5.2 Critical Evaluation: How technological developments are affecting human resource management?
Nowadays, information systems have become a tool for more HR professionals, and these systems are provided through the internet. The use of internet includes HRM application. With internet, organization can search the right person to perform the right job. Besides that, organization web site can toward potential employees.
Furthermore, employees also can receive training through the online. Next, organization can use internet sharing the information between employees, and enables employees self service for many HR needs such as application forms, training modules, information about organization policy and so on. In addition, organization can assign work among employees at different times and places.