Web-based HR Company Analysis - Essay Example

Web-based Human Resources Company Analysis Lecturer: Web-based HR Company Analysis A company’s success invariably depends on the efforts of its employees. This calls upon the employer to develop an amicable rapport with employees through its line managers and the human resources department. The nature of the human resources activity however is typically monotonous and repetitive while conversely generating animosity with other departments’ employees and departments due to the sensitivity of the duties which touch on staff welfare. A human resources system that is slow and error prone only aggravates the resentment hence many firms are now progressively adopting web-based human resources systems which are proving to be more cost and time efficient as opposed to the traditional manual strategies. A study by market-research firm AMI-Partners Inc., found that over 34 percent of medium-sized companies and 21 percent of small firms have adopted Internet-based HR systems within the United States by 2007 (Stackpole). The role of human resource management has therefore changed significantly, evolving from the traditional administrative task of predominantly payroll regulation and support to a more strategic role in a company’s administration. Some of the emerging new roles include occupation development, travel administration, production scheduling and work-related medical and security issues (Curran and Kellar, 4). Many companies have recognized that enhanced staff morale not only generates agreeable employee relations but also translates to higher productivity to the company. The establishment of a web-based human resources strategy has proven to be an effective way of solving many of the contemporary employee problems which have habitually plagued the employee relations between the employer and staff leading to low productivity levels especially in large firms that have complex staff problems. According to Richard Hubbard a director at Watson Wyatts Worldwide, a leading global consulting firm as, “compensation and benefits continue to become more complicated at most companies …the variety of health plan choices and the number of changes in the pension arena, employees constantly hunger for more information. As a result, there’s a growing demand to put data at employees’ fingertips through Web-based tools.” (Watson-Wyatts, 1). Hawking and Stein (2003) however argue that although there has been a lot of emphasis on business to business (B2B) and business to customer (B2C) planning, there has been minimal development on the potential of business to employee (B2E) even though the later is a major factor to an organization’s success (2). The interactive nature of the human resource function requires the setting up of databases, information management tools and employee linked procedures that will enable a more accessible online database for the business to employee (B2E) model. Web based human resources or E-HR is basically used by many companies to improve their internal systems. The leading E-HR firms are SAP, PeopleSoft, and Oracle. SAP is used by 18,800 firms in 120 countries operating from over56,000 installations. It has incorporated a new feature of E-recruiting function in the mySAP HR solution (Nunes 1). However many small companies only employ payroll software rather a more comprehensive human resources system like in the large companies. The more integrated web based system has numerous advantages including: keeping track of all employee needs; enhanced turnaround time on procedures; less expense in reduced paperwork, time, travel; less staffing in the human resource department; more efficient hence less errors generated; easier to generate reports from any sector of the organization; able to keep track of employees performance, benefits, attendance, sickness etc; and harnesses all company data on one database among others. “The internal process of HR is changing its role from support to a more strategic place in the organization … developed from being primarily administrative, to support then to the role of a business partner.” (Hawking and Stein, 1) According to David White from Deloitte Touché (2002) web-based technology has gradually being accepted by many companies, "A Successful technology-enabled HR strategy combines business strategy with emerging technologies and existing infrastructure to produce an integrated, comprehensive plan for how HR will deliver services, provide information, and process transaction." (9) In Australia the main web-based human resource (HR) system adopted is the Employee Self-Service (ESS) which is a module of the much more comprehensive industry wide scheme the enterprise resource planning (ERP) systems. This has being used to assimilate the major HR business procedures while offering more discernible information. Over 320 of Australias major firms have employed the industry leader, SAPs ERP system (SAP R/3) including over 150 who have set up the human resources module of which 33 have the employee self-service (ESS) module. Among these are Toyota, Westpac, National Australia Bank, Siemens, Telstra, and Linfox (Webster Buchanan Research, nd). The return on investment (ROI) of ESS system has been considerable particularly in view of the ESS converting manually produced hardcopy based human resources documents. The has resulted to the automated “digital enabled forms allowing a 50% reduction of transaction costs, 40% reduction in administrative staffing, 80% reduction in management HR duties and a 10 fold speed-up of HR processes”(Workforce, 61). The employee self service (ESS) module is a solution that is based on the business to employee (B2E) model which facilitate access of the company’s HR data by the employees. Most of the companies using the internet based HR systems employ the system through the firm’s intranet. Initially these applications were only accessible through already set-up templates of the existing forms however this later evolved to more interactive access that allowed employees to perform paperless real time procedures in the company website. This was due to the realization of the great savings arising in printing costs, time saving, administrative overheads and the empowerment of staff. An employee self service (ESS) browser interface has pertinent HR information and transactions enabling updating of an employee personal data, vocational application, payment details and other related remuneration, scrutinize in-house employment opportunities, and reserve educational schedules among other options within the company website. Australian Communications Organization (Auscom) is one of Australias top telecommunications corporations with over 40,000 permanent staff, an additional 20,000 contracted workers, over 2,000 IT systems and has set up more than 50,000 desktops (Greenblat). The company deals with major communications and information equipment and services within the local Australian market and also to its international clients. By 2002 it had a turnover of over $AUD 20 billion and a pre-tax profit of over three billion dollars. With expansive international ambitions, Auscom aspires to extend its product range to include all telecommunication services. This was envisioned to be achieved by enhancing its human resources through appropriate employee relations driven by an exceptional HR system. The company was therefore concerned that the HR system it was then using was bloated and largely infective in administrating its employee affairs. Auscom consequently sought a more comprehensive and strategic human resource system that would complement its vision, competent and cost-effective. The company then embarked on a project which would transform it to an enviable ‘employer of choice’ through a venture called “People Online” in May 2001. Auscom new system was based on SAP R/3 with an ESS component and was implemented in three phases: phase I MyDetails, staff HR ESS, payroll and data search component; phase II – workflow and non-HR procedures business units; phase III – additional features (Auscom.com). Some companies like the Atlanta-based pharmaceuticals company Sciele Pharma Inc. however decided to utilize or outsource their human resources functions to gain more efficiency and reliability. This outsourcing occurs mainly due to the nature of setting up expensive mainframes and software that are too costly for smaller firms. The outsourcing is service is available from companies like Oracle Corp., Ultimate Software, Employease, HRnet Software Systems, Softscape Inc., Emportal and Workday. According to Mark Banks, Sciele Pharma’s vice president of human resources, the company decided to use UltiPro hosted solution from Ultimate Software because “We’d rather go with an on-demand system than expend additional man power or dollars. We also get higher-quality technical service,” (Stackpole). Alternatively due to the problems associated with using many companies’ intranets which initially had just some few documents and later with addition of more features become cumbersome to navigate, software developers have developed more flexible solutions that are less costly to maintain. The new packages utilize portals that have far reaching capabilities including data content, data flow and the technology focal point of the portal encompassing internet gateway (Hawkins and Stein, 9). According to PeopleSoft’s Jenni Lehman it is now possible for a company with operations in 80 different countries to use a single engine to run all its processes. This is exemplified by DaimlerChrysler with 370,000 employees on two continents using PeopleSoft’s software. to administer a worldwide personnel from a single platform. This enables a deployment of E-HR applications to all its employees simultaneously through the web. Another company employing PeopleSoft’s solutions is The UnitedHealth Group, a health services provider employing over 29,000 professionals and who provide healthcare to approximately 35 million Americans. The UnitedHealth Group used Taleo, a software developer to upgrade its PeopleSoft’s HRIS solution thereby ensuring a highly configurable workflow with a shared platform that enables ease in its functions. The many rewards associated with the new advanced system include: an efficient online requisition approval process for recruitment purposes; a paperless less-people management; effective reporting including accounting aptitude; tracking and control capabilities; and facility for online posting of major issues and regulations that are easily accessible to all staff. On the other hand Shell, the international energy firm a division of the Royal Dutch/Shell Group uses MySAP HR to manage its global workforce. The company uses the E-Recruiting function to hire its employees thereby providing a faster and more efficient forum for recruitment. According to David Ludlow of SAP, Germany, “it’s good for the company because it provides a global talent pool to draw from.” (Nunes, 2) The Linde Group, an international technology group which has operations in over 80 countries updated its HR functions by creating a uniform staff strategy. The Linde Group is a gas and engineering international group employing over 42,000 employees globally. By 2005, it had posted an annual sales volume of over €9.5 billion and later acquired UK-based Gas Company, The BOC Group plc. ExecuTRACK similarly is a reputable international developer of HR software and has clients that utilises its web-based software program ETWeb™ Enterprise including Audi, BASF, Bayer, DHL, DuPont, Lamborghini, Lufthansa, MacDonald’s, Scania, Swiss Re and Volkswagen among others. The Linde Group likewise used the ETWeb™ Enterprise software developed by ExecuTRACK to create a unique system that provides an all-inclusive performance-based employee administration program named HR StepUP! in 2003. This solution is used in the company’s world-wide operations by over 400 executives and by more than 50 HR managers within the company. The system which is compatible with the company’s SAP sourced SAP R/3 enables successful planning and recruitment procedures as well as individual vocation development. Other advantages include effective data management, competency evaluations, a self-service feature and generation of reports. Motorola a top supplier of wireless communications, semiconductors and advanced electronic systems, components and services also improved its human resources services by incorporating E-HR features. Motorola cooperated worked with Accenture to create Enet, an intranet-based fundamental HR solution. This enabled employees to access information and services all the time throughout the company through the intranet and corporate kiosks using a simplified interactive, graphical interface for all almost all the HR functions. This include merit increments, vocational or leave, requests, approvals among others. The Enet was interfaced with the company’s SAP based HR system to enhance its functions using an architecture that could support any future intranet and internet based HR programs. It could also be used as a support for other departments like procurement, accounts, and customer service among others. The system has greatly reduced paperwork and the turnaround time within the human resources department. According to Motorola’s David Doolittle, “From day one, the system was driven to ensure consistency of approach and consistency of practices,” (Accenture, 2) According to Lawler III et al (2007), human resources development has three major objectives. These include the core HR management practices that encompass staff remuneration, recruitment, and training; the second objective is to be aligned as a business partner within the organization. This is fulfilled by providing counsel and services to other departments through an effective deployment of qualified staffing that enable the organization to develop amicably; the final role is of providing strategic direction to the company by constant and competent evolution and development of employees by recognizing the company’s strategic needs. These roles are duly executed by employing a modern and effective E-HR system that incorporates all these components within its framework (15). The advantages of using web-based HR can be broadly recapped as including: easier HR data management; ease of complying to governmental regulations; flexibility of the payroll management; effortlessness attendance administration; simple benefit enrollment; training and educational administration; and uncomplicated recruitment component. As the Watson Wyatt firm sums it up, “E - HR refers to the broad access to human resources data, tools and transactions available directly on the web in most workplaces today. It describes the "net effect" of the explosion in web technologies and the dramatic impact this growth has had on the way employees now receive employment-related information through integrated self-service applications. It also includes the variety of new technologies available that help connect multiple systems, tools and databases, both inside and outside organizations" (Watson-Wyatt, 1) Works Cited Accenture. Internet-based Human Resource SolutionEmpowers Motorola’s Employees. NewYork: Accenture, 2003. Agusti, Katrina. "Carhartt Achieves 120% ROI with Web-Based Employee Performance and Talent Management System of." 2008. Halogens. 27 May 2009 . Edward E. Lawler III, John W. Boudreau, and Susan Albers Mohrman. "Achieving Strategic Excellence, An Assessment in Human Resource Organizations." Human Resource Excutive (2007): Chpt 15. Nunes, Janine. "Global Work Force Needs Global Solutions." Human Capital. (2003): 1,2. Stackpole, Beth. "On-Demand HR Is in Demand." 4 October 2007. HR-WORLD. 29 May 2009 . Stein, Andrew and Paul Hawking. "B2E Portal Maturity: An Employee Self-Service Case Study." March 2003. Victoria University. 27 May 2009 . Walsh, Tonia. "Case Study: Streamlining HR Risk Management." HRO Today November 2005: Vol. 4 No. 9. WatsonWyatt. "Companies Aim to Transform HR Delivery Strategy to Meet New Employee Needs, Watson Wyatt Study Finds." June 2007. Watson Wyatt Worldwide. 27 May 2009 . Read More