The Human Resource Management HRM Commerce Essay


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 employees performance and how the system will help organization to improve the employee's performance and objective.

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.

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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.

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.

Management commitment

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.

Employee empowerment

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).

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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. Therefore, by using EMS can bring a lot of benefit to organization.

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.

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.

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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 Example for e-HRM using at organization

Cold Drinks

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

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.