Challenges with Benefits and Compensation at Boehringer Ingelheim - Case Study Example

? Challenges with Benefits and Compensation al Affiliation) Boehringer Ingelheim, a pharmaceutical company, the vision ofwhich comprises the establishment of value for the community, its employees as well as patients through innovation, is experiencing challenges with compensation benefits. The company’s affiliate branch in the United States is called Boehringer Ingelheim USA Corporation. The innovation of this branch is contributed to by a philosophy that calls for learning and leading. Each and every individual involved in the organization is encouraged to take initiative, be inquisitive, and take full advantage of the existent opportunities in a work ambience of leadership and learning. The human resource system of the organization is decentralized and is trying to serve its employees as much as possible in a variety of locations. Service delivery ascribed to the human resource is highly dismantled, and is driven by a small team in charge of human resource operations. In spite of the hard work and effort put in by team members to afford the company support, they lack the requisite training, tools of human resource needed for success, as well as critical mass. The key challenge that the benefits and compensations program experiences is significant errors in data and inconsistencies in the responses of inquiries by employees. The decentralized human resource system used by the company allocates most of the human resource very little time to support their business associates. The high score of mistakes in data entry makes it difficult for the firm to provide accurate and timely information to key stakeholders. A Review of a Firm Experiencing a Similar Challenge Quite good example of a firm that faced a challenge similar to that of Boehringer Ingelheim is Hong Kong Polytechnic University, specifically its Department of Management. The university chose to implement information systems of managing the human resource with an aim of lowering the number of errors linked to data entry. Human Resource Information Systems refer to software applications that play the serve the specific purpose of aggregating and synthesizing information about employees. The information systems can serve purposes that range from populating breakdowns of payroll and benefits, to illustrating present positions held by employees, through the applications that run the system. The university discovered that the executives within the human resource were more comfortable carrying out the critical and creative projects because data about the employees were arranged neatly within the databases of human resource information systems. It was emergent that data automation minimized the probability of data entry errors. Moreover, more complex and integrated analyses were possible through the implementation of an extensive and unified pool of information about employees. In general, Hong Kong University together with many other manufacturing firms based in Hong Kong discovered the effectiveness of human resource information systems in improving the performance of business operations dovetailing a variety of human resource processes, and transforming thee management process of an organization with regard to compensations and benefits. Research and Analysis Contemporarily, human resource information systems connote fully automated systems that comprise of payroll processing, a system of human resource information and the management of recruitment (Pynes, 2008). Because there is a need to integrate data across the various departments of an organization, it is important to incorporate transparency and integrity in order to augment productivity and consequently meet the specific requirements of compensation and benefits legislation. Updating or entering of data win the human resource information system is conducted in within a single database. Consequently, all departments make use of these data. As such, this reduces errors, eliminating the presence of different records and saving both time and money. Errors in data entry make it very challenging to correctly calculate records of attendance in addition to employee benefits and compensation (Pynes, 2008). According to Martocchio (2008), it is extensively easy to realize how the use of human resource information systems can benefit any organization in its respective sectors, compensation and benefits notwithstanding. There is however a formidable challenge in identifying the system of human resource information that appropriately fits organizational needs as well as its budget. There are multiple options designed to match the specific demands of different organizations. In spite of the fact that availability of multiple options is an implication of a company’s likelihood to obtain the best possible options, there may be an initial complication of the selection process. There is immense significance in considering several human resource information system options in order to narrow down the most fitting solution for a company (Martocchio, 2011). The first system option is software versus in-house as an option of service. Numerous organizations are currently in favor of software to in-house as an option of service in human information resource systems. The option of software for service is externally hosted and accrues support from the vendor. In contrast, the in-house option necessitates a complete in-house installation system and is continually reliant on the potential of a company’s Information Technology Department. The software as an option of service makes it possible for users to access the service of human resource information system effectively on the web. The vendor facilitates remote access to the system’s applications, maintenance, in addition to upgrades (Goel, 2003). Krishan, Shen, and Chanda (2007) argue that software as an option of service has continually become the best option, owing mainly to its cost-effectiveness. Using software as a source makes it possible to eliminate the purchase of additional hardware do away with complicat6ed implementation, and integrate fancy customization processes. A company is able to transfer the risk associated with the management of business to a third party provider by making use of software as an option of service. This consequently eradicates the risk finger-pointing and hostility in the event of mishaps in information technology and malfunctioning of systems (Chanda et al., 2007). A second option for systems of human resource information is outsourcing. As such, this option recommends outsourcing the whole department of human resource. A vast majority of the fast-growing small and medium-size enterprises have taken up outsourcing as an option, during the past few years. Statistics show that these enterprises have been able to save up to ten percent of costs. Moreover, among all the executives who serve in companies that make use of outsourcing, about seventy percent plan to re-contract with their respective providers of outsourcing. Several executives intend to opt for outsourcing at least as an additional function off the human resource. The outsourcing option has several advantages as well as disadvantages. First, in terms of eliminating inconveniences associated with regulatory compliance, this option emerges as the best solution. Another merit of outsourcing is it helps in freeing up resources internally. In spite of its advantages, outsourcing carries some risks. A not-so-careful organization can have outsourcing entirely compromise the quality of human resource. It is thus recommended that companies be extremely cautious when signing contracts with unknown or novel firms. Companies can also experience difficulties with their employees in situations where there are their data privacy has inadequate provisions. Employees carry the right to privacy with regard to personal information (Bohlander 2009). It is recommendable for Boehringer Ingelheim’s management team to take up the use of a human resource information system in a bid to curtail data entry errors in their benefits and compensation program. Instituting this system in the information department of the company would function to ensure that employee data ascribed to benefits and compensation is conveniently arranged in an appropriate manner. The company can choose from various options of human resource information systems. Chanda et al (2007) hold that it is highly advisable to weigh the list of available options by conducting an out and out cost-benefit analysis in a bid to determine the option that is best suited to the needs of the companies as well to those of its employees. After determining the option of human resource information system best suited to its needs, Boehringer Ingelheim needs to establish the type of system it looks to invest in. the most convenient way of splitting vendors of human resource information systems grouping them in to two; namely suite and niche. The niche system of vendors serves one particular domain of human resource management for example, time, payroll, staffing or attendance (Goel, 2003). The suite system on the other hand affords many facets of software applications that have multiple functions of human resource, with each function being used either as an independent module or as part of a universal package. An internal human resource information system is appropriate for the company since it conforms to the organization’s culture and is employee-centered. Another vantage point of this type of human resource is its ability to retain personal information. A large scale change in the human resource management needs to comprise of the clear definition of roles and responsibilities, a comprehensive effort to manage change and communication, redesigning the data entry process, developing a company model that shares services of human resource, and supporting the tools of human resource technology. Since Boehringer Ingelheim needs to pursue a solution to a single function of human resource in light of data entry that translates to challenges in benefits and compensation, it needs to adopt the niche program. This program of human resource information system has specific benefits for few processes that require management. In adopting a human resource information system, Boehringer Ingelheim is bound to accrue benefits in terms of increased efficiency and operational cohesion. Through the human resource information system, the company will be able to acquire reports ascribed to the entitlement of employees to benefits and compensation, in addition to the amount used and the balance from the benefits pool. This will solve the problem of individuals having to go through copious files and documents to obtain the report, as is characteristic of the manual system in place in the company. Prior to reaching a decision as to the implementation of the niche program of human resource information system, the company’s management should have apt knowledge about the population of employees in the organization. They should also be privy of the limited time allocated to the implementation of information systems of human resource management. Boehringer Ingelheim should ensure it has the requisite technological tools to support the information system of human resource management. The financial budget designated for this system should also be considered, along with the extent to which the organization looks to customize the human resource information system (Martocchio, 2011). References Bohlander, G., & Snell, S. (2009). Managing human resources: study guide (12th ed.). Cincinnati, Ohio: South-Western College Pub. Chanda, A., Krishna, B., & Shen, J. (2007). Strategic human resource technologies keys to managing people. Los Angeles: Response. Goel, R. (2003). Computer applications in management. New Age International. Meenakshi Prakashan InfoWorld (2007). InfoWorld. InfoWorld Media Group, Inc, 29(13). Pynes, J. E. (2008). Human resources management for public and nonprofit: Problems and prospects (5th ed.). New York: Longman Martocchio, J. J. (2011). Strategic compensation: A human resource management approach (6th ed.). Boston: Prentice Hall. Read More