Future Hr Focus On Best Practices Commerce Essay

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The role of HR has changed greatly over the times when the role of HR was to manage the work force. Today a company should consist of quick, flexible and lively teams that are passionate, motivated, and creative. In order to perform this role HR professional should have thorough knowledge of business as well as of human resource department, the ability to change any lead process, innovation, problem solving, and the leadership ability to control the organization. Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. Human Resource Management is a strategic approach to manage people and the workplace culture and environment.

Role of HR in Future:

Key Challenge -The key challenge for HR department will be to bridge the gap between transactional function and strategic business partner.

Strategy - Aligning HR strategies with overall business strategy

Partnership -Become a strategic partner, coach and mentor and develop HR as a source of competitive advantage.

Flexibility - It is the need for HR to adjust to new ways of working with great support.

Leadership - HR was developing capable leaders for Managing, motivating and integrating a multi-cultural workforce, to build leadership capability to control different workforce.

Employees - Maximizing individual talent, competence, commitment, and contribution.

Social Media - There was strong agreement that organization will take into consideration to a candidate's social media when hiring.

Technology - HR technology enable the employees to stay operationally and ethnically connected in remote locations.

Efficiency - HR will control over cost, bring efficiency, compliance, data protection and records management that will drive computerization and rapid implementation of document and workflow business solutions.

Importance of HR:

HR management is a very important issue that businesses pay much attention to. How to make the workforce create the maximum value for the business? How to engage employees that work in the different parts of the business towards one goal? How to calculate each employee's performance? Is there any HR management software that can organize the company's human resource in a digital way? HRM needs to be incorporated with the overall strategy to guarantee effective use of employee and provide better returns to the organizations in terms of ROI (Return on Investment) for every money spent on them. Efficient HRM enables employees to contribute efficiently and fruitfully to the overall company strategy and the accomplishment of the organization's goals and objectives. HRM helps the organization reach its objectives. It employs the skills, knowledge and abilities of the employees efficiently. It provides the organization with well qualified and well motivated employees. It increases the employee's job satisfaction level. It develops and maintains quality of work life. It conveys HR policies to all employees. It is ethically and socially responsible to the needs of society.

Attract and retain employees.

train people for demanding role

develop knowledge and skills

promote team work

develop devotion and dedication

increase output and profits

improve job contentment

improve standard of living

Generate employment opportunities.


E-HRM is a way of implementing HR strategies, policies, and practices in organizations through a restricted and heading for support of or with the full use of technology. E-HRM is a way of 'doing' HRM. E-HRM provides users to access the information system in accordance with their roles. All the users are able to work collaboratively whether in or out of the office. Therefore, employees can easily manage customers, work request, documents and assets related to them, which means people is the center of information process. It enables the user to get all information related to one employee when he search the name of that employee, including information concerning documents, customers, assets, products, projects and tasks. E-HRM also offers personalized portal for every individual user. Users, under certain security level, are able to visit the documents, process daily work and participate in related projects. E-HRM is the basis of business collaboration. E-HRM gives all your employees access to your information systems via Internet. E-HRM enables all employees, partners, resellers and customers to be involved in your business processes electronically. People can now work, both within and outside the office environment. The employee can easily track products, customers, documents, external and internal requests that are linked to his name.

Goals of E-HRM:

The major goals of E-HRM are to improve HR administrative efficiency/to achieve cost reduction. The introduction of E-HRM was to regulate/match HR practices. Finally, e- HRM hardly helped to improve workflow competence, but resulted in cost reduction and a reduction of the management burden.

Difference between HRIS and E-HRM


HRIS are directed towards the HR department itself. Users of these systems are mainly HR staff. These types of systems aim to improve the processes within the HR departments itself, In order to improve the service towards the business.


With E-HRM, the target group is people outside HR department: the workforce and administration. HRM services are being offered through an internet by employees. The difference between HRIS and E-HRM can be identified as the switch from the computerization of HR services towards technical support of information on HR services.

Importance of E-HRM 

Manage systems and information: With E-HRM you can create and delete your Windows accounts. By entering the start or end date for your employees, the system will automatically create/delete their user account. 

You can give an employee access to particular information or permit him/her to perform specific operations by transferring roles and security levels to employees and information. Every modification in the system is logged, so no one can perform any action secretly. 

Use yellow pages: When looking for a colleague with specific skills. He/she can be easily found, and then contacted by using the link via the internet. Everyone can keep his/her personal file with basic information up-to-date.

Generate reports and statistics: E-HRM offers numerous reports and statistics to monitor the status of your organization. Organizational charts, age composition, in- and outflow, absence statistics, review ratings, job group statistics and many more reports give better insight into the most valuable asset.

Manage and delegate online: Keep track of tasks or assign tasks and requests to others. You can also delegate your role to someone else. Managers can follow the tasks and workflow of their subordinates.

Plan resources: You can store your personal documents with varied accessibility, dependent on the security level you give to the document.

Get a clear overview of planning and statistics: It provide a graphic overview of all planning-related hours entered (absence, out-of-office assignments, consultancies, training, etc.), as well as availability of employees. This planning is also linked to the registration of departmental and individual work schedules. 

Manage workflow, absence and expenses: Besides absence and expense requests the user can make various internal procurement requests. The request is approved or rejected. 

Keep track of fringe benefit schemes: Register, for instance, which stock options have been approved to your employees and receive an overview of the total outstanding amounts.

Keep track of applicants: You can enter new applicants yourself or applicants can apply via the internet site. From there the information is stored and can be tracked via E-HRM. A procurement request can be generated automatically for internal processing of this application by the HR staff.

Perform mail merges: By making use of user-defined templates in E-Documents, one can create a mail merge to employees and send it to them.

Manage your assets: Procurement requests and items are linked to the employee profile. Employees can request their own assets, with approval from the manager. An asset report is available to see what assets are in use within the organization and what assets are available.

Track individual financial transactions: All employees related financial transactions become part of their personal database. These transactions are automatically linked to employees based on their creditor number.

Link to payroll: One can define company-specific payroll components and exchange data via XML with back-office payroll systems. 

The E-HRM business solution excels in:


the solution can be scanned and used in a web browser

security of information, protected levels to use individual modules, records information and their constituent parts

access to information and data


Access to client's existing information system

multi-cultural support

Difference between KPI and PM


A key performance indicator is a performance indicator that is more important (key) than others. Key Performance Indicators, also known as KPI or Key Success Indicators (KSI). It helps an organization to measure its progress towards organizational objectives. Once an organization has identified its mission, analyzed its stakeholders, and identified its goals, it needs to calculate progress toward objectives. Key Performance Indicators are the measurements. Key Performance Indicators are quantifiable measurements, agreed beforehand, that reflect the success factors of an organization. Whatever Key Performance Indicators are identified, they must reflect the organization's goals, they should be key to the success of organization, and they must be measurable. Key Performance Indicators usually are long-term considerations. The definition of what they are and how they are measured do not change often. The objectives of Key Performance Indicator may change as the organization's objectives change, or as it is about to achieve a goal. A performance indicator is a quantitative or qualitative factor to calculate the outcome against goals. A performance indicator is a temporary step toward achieving the measure of performance.

Performance Measure:

Performance Measure is quantitative or qualitative ways to define performance. It is a tool for organizations to control progress towards analyzing goals, identifying key indicators of organizational performance and Customer satisfaction. Key indicators are the Performance Metrics of the organization. It can be used to individual projects to ensure that deadlines are met and costs are controlled.

Characteristics of Performance Measures:

Meaningful -- important and directly related to the organization mission and goal.

Responsibility Linked - it is aligned with organizational strategy for achieving the measure.

Organizational acceptability -- valued by those within the organization.

Customer focused -- analyze the voice of the customers and stakeholders.

Comprehensive - it include all key parts of the performance.

Balanced -- include several types of metrics, i.e. balanced score card, accuracy, and quality metrics.

Timely -- Report information in a realistic time-frame.

Credible -- based on exact and consistent data.

Cost Effective - it is useful for information collection and calculating costs.

Compatible -- incorporated with existing administrative and management systems.

Comparable -- helpful for making comparisons with past data.

Simple -- easy to calculate and interpret.


The overall purpose of this research is find out in future what will be the scope of HR on best practices, KPI's and e HR.

The goal of this research is to find out what is the current focus of organization in the field of HR, what best practices are they following, what KPI's are they using to measure the performance of their employees and last but not the least are these organization implementing e HR for their employees.


H0: The KPI's does not leads to successful HR planning.

H1: The KPI's leads to successful HR planning.


The research methodology used by us is a combination of both secondary research and primary research.

The secondary data will be extracted from various articles and research papers available online as well as available in business magazines.

The tools that will be used to collect primary data will be survey questionnaires and interviews which will be conducted from the employers of different organization.

Secondary Research

Research 1: Good and Bad KPI's

Key performance indicators (KPI's) reflect the performance of an organization. There are a number of KPI's in the business sector but only those KPI's should be selected that are aligned with HR Mission, Vision and goals. The goal of presented research is to find and set the KPIs on HR level according to defined HR strategy and targets. The research also presented the strategy map which is a necessary part of the HR scorecard and serves as a base for specifying the KPIs.

The main purpose of all organization should be to have a manageable and sustainable HR scorecard with visible and measurable KPIs. The selected KPIs include all possible aspects-internal and external - to HR strategy with aim to maximize an organizations performance.

This research presents an overview of KPI's on HR level.


Lagging KPI's

Leading KPI's


F1 - Labor costs

Sickness rate

Labor cost per 1 employee


F2 - Decreasing of turnover rate

% of turnover

Recruiting costs

F3 - Effective using of training budget

ROI of training

Efficiency of investment to

human capital


C1 - Succession planning

% of employees who were


Number of successors on

key posts

C2 - Using of human


% of multiskilled employees

Qualification index

C3 - Retention of the


% of employees who

performed the Employee Dialogue

Participation in career

coaching program

C4 - Corporate social responsibility

Amount of investment to

IT HR technologies

Number of activities

organized for employees

(Sport, family day…)

Savings (money and time)

from HR IT technologies

Number of new hiring

relates to good referral



I1 - Internal flexibility

Job rotation

Posts filled by internal


I2 - Simplify of the sales


Time for dealing with


% of customer satisfaction

I3 - Increasing of motivation

Result from employee

motivation survey

Influence of the inflation

on salary

I4 - Employee survey

Return ability of questionnaire

Performed action measures

I5 - Idea management

Number of accepted IM


Acquisition for company

according to accepted IM


I6 - Online HR tools

Time for saving of routine

HR paper work

Time for saving of routine

HR paper work

Learning Growth

L1 - Consistently supporting of

employees qualification

% of training courses

matching company requirements

Average number of training hours per employee

L2 - Increasing of internal

customer orientation

% of participants in communication


Number of customer´s


L3 - Multiprofessing

Costs for training relates

to multiprofession

Qualification index

L4 - Rewarding system


Compensation cost

Average company salary

L5 - Consistently develop

of leadership skills and

strengthen manager´s role

as a coach and a mentor

Leadership index

Leadership index

Source: (Iveta, 2012)

The KPI's mentioned above are divided as lagging or leading KPI's. Where lagging means the way we are doing now or were doing in past and leading means the way we have improved or can improve.

Research 2: High Performance Work System

This study presents a theoretical framework demonstrating the relationship between high-performance work systems (HPWS) and organizational performance. HPWS are conceptualized as a system of human resource (HR) practices, and it lead to (a) financial performance via administrative efficiency and (b) sustainable performance via flexibility arising from the coordination and exploitation of knowledge resources.

Organizations using HPWS make a noteworthy investment in their pool of human capital so that employees are well trained, skilled, and empowered to perform their jobs. Existing perspectives on HPWS are directly allied with research on high involvement work practices and high-performance management practices. In fact, researchers often note that various naming preferences are frequently used interchangeably and refer to the similar phenomena of interest. HPWS is defined as an integrated system that is not only aligned with the HR practices and strategies but is also aligned with the organization's strategy.

After thorough analysis of this study the researcher concluded that HPWS has a strong relationship with the organizations performance. In order to achieve the organizations objective the HR should implement HPWS to ensure that clear contribution is given not only by the HR but also by the employees towards the achievement of final outcome.

The researcher during this study identified some of the HR categories which may comprise the HPWS. These categories are supported with description and examples are listed below:

HR Practice Categories




Extensiveness of procedures

to evaluate relevant knowledge,

skills, and abilities for job fit

and organization fit

Selective screening

Assessment of technical and interpersonal skills,

attitudes, and/or personality

Performance-based promotions

Self Managed Teams

Redistribution of power downward

by granting authority and

responsibility to team structures

Employee participation programs

Teams with task and decision-making authority

Extensive use of teams throughout the organization

Decentralized Decision Making

Empowering employees via

greater responsibility and access

to resources

Less well defined tasks

Authority to make decisions

Employee involvement

Participative management


Extensiveness of formalized

programs to develop knowledge,

skills, and abilities

Training for current and future skills; including

technical and interpersonal

Cross training

Training for both new hires and experienced employees

Flexible Work Assignments

Opportunities to broaden individual

knowledge, skills, and


Job rotation; rotation across teams

Ability to perform +1 job

Job enrichment


Open vertical and horizontal

communication channels providing

access to information

and opportunities to express


Access to all levels of operating results

Employee suggestion systems

Explanation of business strategy


Performance-contingent pay,

group-based pay, and above market

pay policies

Profit/gain sharing

Employee ownership

Comparatively high level of pay

Performance-contingent pay

Team-based pay

Source: (Davis, 2005)

Research 3: The Role of E-HRM in Building Positive Work Attitudes

Generation Y are the new generation of employees. These employees are talented, technology oriented and self-starting, but at the same time are not too much committed or loyal towards their work. Developing effective work arrangements for such a new generation is essential for the future growth and sustainability of firm competitive advantage. This research suggests that E-HRM systems assist work arrangements that produce positive outcomes; E-HRM signals and reinforces the organization's investment in the employee-organization relationship. This broad study provides priceless and at times unpredicted outcome particularly for the new and thus far little known Generation Yers.

HRM departments should become genuine „business partners‟ competent to generate and sustain a company's strategic value. The rapid growth of the Internet in recent years has obliged HR department towards the new E-HRM approach. Latest technological opportunities are a link that could help unite the two sides of the working relationship; for organizations, E-HRM solutions are techniques to maintain organizational flexibility and knowledge-sharing.

E-HRM can be designed with three types of goals in mind: improving conventional HRM strategic orientation, improving client service orientation and improving efficiency, thus creating three special types of E-HRM: operational, transformational and relational.


The results of this research are listed below:

Is Generation Y Technologically ready: the results suggested that there is no one best way to deal with Gen-Yers. They are optimistic towards technology but feel insure while dealing with it.

Are E-HRM systems adopted and useful: E-HRM is not fully adopted and needs much more attention all over the world. However E-HRM is definitely useful and helps as a retention strategy for those Gen-Yers who are fully comfortable with technology.

Does E-HRM influences the employees work attitude: it definitely influences the employees work attitude as it influences trust in HR department.


From a more realistic perspective these outcomes suggest that organizations have to enhance their E-HRM investments, but they also have to introduce and communicate them better in order to be consistent not merely with the technological optimism of the fresh employees but also with their technological distress (Bissola & Imperatori, n.d).

Primary Research

Interview with a Semi Government Organization:

The first interview was conducted from a semi government organization. According to it HPWP is described as a culture that built trust and foster enthusiasm. This semi-govt organization is moving towards implementing HPWP. The organization considers itself as a public entity and found difficulty in following best practices. But the organization focuses on providing good employee compensation and excessive training facilities both in-house and sponsored training locally and internationally. The organization also promotes a culture that is motivated to facilitate employees.

This semi-govt organization is aware of the concept of E-HRM and describes it as a painless and cost effective web based HR that uses internet technology and utilizing this technology as a key driver. It considers E-HRM as an event that liberates HR from administrative shackles. It believes that E-HRM helps in smooth flow of business.

The organization is implementing E-HRM by using ERP and Oracle which helps the HR department to review and update the information related to the employees.

The organization on one time being positive towards E-HRM is completely opposite towards KPI's. Although the company believes that a good KPI is that which is relevant to job and is measurable but as the organization has an aging workforce there is very little focus on KPI's. The HR department has identified the KPI's for employees' performance but very little focus is given to it. It believes that KPI's and PM not only help towards successful HR planning but also helps in hiring qualified workforce and to achieve the company's objective.

The company has considered different KPI's for different position and have separate KPI's for the management and non management positions. These KPI's differ in terms of Leadership, Decision Making and Strategic Management.

Interview with a MNC

According to a multinational organization HPWP means achieving high objective % and Competency %. This organization implements HPWP to the extent of team working, functional flexibility, empowerment, employee development, appraisal, counseling, and performance-related pay. The organization is also aware of the concept of E-HR and states it as a system that allows management and employees access to human resource related information and services through an organization's intranet or web portal. E-HR is a function of human resources that requires cross-functional knowledge and collaboration between multiple departments, most notably human resources and information technology.

It implements E-HR and has a fully supported system. It believes that E-HR guarantees smooth flow of business and has also identified KPI's not only for its employee's performance but also fot the different functions of HR including recruitment, training, compensation etc.

The KPI's are identified through internal measures set by the Board of Directors. The organization believes that a good KPI is that which is based on the concept of SMART and all the important KPI's are incorporated in the organization. It considers that KPI's and PM leads to successful HR planning. It has different KPI's for the management and executive positions and the dissimilarity is particularly on leadership skills.



Semi Government



culture that built trust and foster enthusiasm

achieving high objective % and Competency %






team working, functional flexibility, empowerment, employee development, appraisal, counseling, and performance-related pay


a public entity and found difficulty in following best practices. But the organization focuses on providing good employee compensation and excessive training facilities both in-house and sponsored training locally and internationally. The organization also promotes a culture that is motivated to facilitate employees.



Semi Government



a painless and cost effective web based HR that uses internet technology and utilizing this technology as a key driver. It considers E-HRM as an event that liberates HR from administrative shackles

a system that allows management and employees access to human resource related information and services through an organization's intranet or web portal. E-HR is a function of human resources that requires cross-functional knowledge and collaboration between multiple departments, most notably human resources and information technology.





ERP and Oracle which helps the HR department to review and update the information related to the employees

a fully supported system




Helps in smooth flow



KPI and PM

Semi Government


Identified KPI






Good and Bad KPI's

Relevant and measurable


Any important KPI not used


All important are incorporated



Gauging tools

KPI helps in HR planning



Different KPI for different position



KPI for Management and Executive positions

Leadership, Decision Making and Strategic Management

Leadership, Decision Making


According to the primary and secondary research conducted my us it is observed that KPI definitely helps in successful HR planning. Hence Ho is rejected. Moreover coming to the future focus of HR we would like to comment that government organization definitely understands the modern concepts of HR but are not focusing on implementing it the major focus for Pakistani organization should be on the KPI's. These KPI's should not be only for employee performance but should be for every function/department of the organization.