The HRM implications of new technology in organisations - Dissertation Example

?Executive Brief June 18, of Brief: The HRM implications of new technology in organisations Issue: The issue facing the organisationis whether or not to adopt a new technological system in order to enhance overall business strategy, inter-functionality between departments, as well as improve the human resources function. There are many different software programmes available for such enhancements, including human resource information systems, enterprise business planning software, and new communications systems. The most primary issue is cost and labour investment that goes into development and whether the advantages outweigh these issues in regards to new technology adoption. Background: The implementation of new technologies in any industry has significant implications for human resource managers and line management. Depending on the nature of the system, such as HRIS for the human resources function, there are significant costs and labour expenditures to ensure proper development and training of existing staff members who must use this software. Other systems, such as Enterprise Resource Planning (ERP) software or other system-wide technologies designed to facilitate better use of resources, also have cost issues and training problems that must be rectified by human resources management. Especially in international organisations, the complexity of these systems requires ongoing assistance from information technology support teams and the development of appropriate flowcharts that identify each key role and their job function related to the new technology implementation. Any such systems can be exceptionally problematic for human resources leadership in terms of driving motivation to use these systems effectively and eliciting change policies within the organisation. Discussion & Analysis: HRIS systems, human resource information systems, have some of the largest implications for human resource leadership and line management in virtually every organisation. HRIS is “a composite of databases, computer applications, and hardware/software necessary to collect/record, store, manage, deliver, present and manipulate data for HR” (Ngai & Wat, 2006, p.299). Such systems have administrative function to assist in record-keeping related to subordinate staff members and also assist in business decision-making throughout the organisation. A 1998 survey shows that 60 percent of Fortune 500 companies rely on HRIS systems in daily operations (Ngai & Wat). This number has likely increased over the last decade. The benefits of such systems is better record-keeping related to issues of health care, benefits, and training documentation that only serves to support the HR role more efficiently. However, there are many drawbacks that must be considered before implementing such a system in a dynamic organisation. First, lack of budget is a considerable problem if the company does not have adequate resources for the expenditure. Secondly, the costs associated with ongoing information technology support teams can be a burden. Further, these systems create an organisation-wide inter-dependency that forces unrelated operational systems to work together, thus requiring additional training (Ngai & Wat). If unrelated systems with no formal knowledge of one another now must rely on technology to become integrated, management must devote their labour and expertise to ensuring proper flow of information and the social systems that support such interdependencies. There are significant benefits, however, to implementing new technology to support better business function. First, HRIS systems have self-service element to them that allow employees to handle some of their own human resources activities online. When linked with the corporate intranet, as one example, employees can request time off, review job postings as they change throughout the business, review company policy changes, and even update their demographic information in real-time (Copeland, 2004). Self-service systems give employees a broader sense of personal autonomy and bring job satisfaction. According to Morris & Maisto (2005), the security established within an organisation, coupled with a sense of personal belonging through social systems, builds better self-esteem and the motivation to achieve excellence in performance. Motivating performance is a key strategy for companies having difficulty in turnover issues or other cost-related factors related to job dissatisfaction, therefore such self-service systems are a major advantage in securing better job role function. These improved technological systems also provide new training opportunities in terms of delivering content and keeping adequate records of which staff members or management have completed training sessions. Bambacas & Bordia (2009, p.225) indicate that one important method of retaining employees is to offer them training with employee benefits that are perceived as being non-transferrable to other organisations. Such benefits “make it too costly to leave the organisation” and therefore improve turnover rates and save costs (Bambacas & Bordia, p.226). The use of new technologies allow for human resource managers or line managers to develop and store new training materials and even promote these internally so that employees perceive their importance within the organisation. The goal of such systems is to give employees a sense of belonging and support, thus such systems implementation is critical to securing longevity with employee populations. Even if the software is not related to the human resources function, it has long-term implications for the entire business. Design of these systems provides managers within the business to understand the entire dimensions of the organisation including job roles and their role in servicing the customer. Flowcharts or other diagrammes necessary to create a worthwhile systems integration usually requires the support of existing managers who offer their feedback about how to proceed with development. Even though there is often a year-long (or more) commitment to developing such visual aids, the knowledge gained turns the organisation into a knowledge-sharing business that has long-term effects on employee competencies. With such collaboration comes more dedication and knowledge to achievement that is beneficial with more skilled and diverse leadership and employees who contributed to such flowchart development. Options/Implications: Having discussed some of the barriers and positive benefits of new technological implementation, it is important to weigh the options as to whether such systems would be of benefit. First, before selecting an appropriate system to fulfil business needs, it is necessary to conduct a needs analysis. Conducting interviews with potential software vendors and viewing demos of existing software is one method to familiarize senior-level leadership with these systems prior to making a purchase. Such demos and consultations provide explicit knowledge as to whether these systems have the right tools to support all needed business requirements as identified by the needs analysis (HR Focus, 2009). There is considerable labour investment that goes into these initial consultations that will require line leadership, human resource leadership and senior level intervention to make the right purchase. It is important to have dedicated support staff and management equipped with the motivation to achieve the goals of the organisation. Motivating employees is significantly difficult in diverse and multi-national organisations as every staff member or manager’s needs is different at the psychological or even social levels. However, such systems, such as the self-service HRIS system, provide employees with a new sense of liberty that is so often required of employees in virtually every industry. They want to be recognised as innovators with the ability to express their opinion and see that they are valued. Therefore, an HRIS system with self-service capabilities can lessen the burdens on management and bridge the gap between dissatisfied employees and budget problems associated with high turnover. With the new ability to transfer information in real-time between one division and another, there is a new type of learning organisation that can be developed with such software. A knowledge-sharing environment with the corporate Intranet as a systems tool gives a new flexibility between service dimensions, information technology, production, purchasing or virtually any division within the company. A knowledge organisation is one where information is exchanged freely and openly between all staff and management teams so that everyone understands the importance of inter-dependency in order to remain competitive in complex and dynamic environments. Strategic leadership maintains the ability to be more interactive with lower-levels, especially important in vertical hierarchies of control, giving them a new visibility and respect within the organisation. The technological advantages are more communications between even the highest levels of the organisation. It is, again, the flexibility created by new communications channels that can serve the business more efficiently. Bambacas & Bordia identified the importance of self-service tools related to employee autonomy and these systems also provide opportunities for improving morale in the process; a necessary trait for reaching milestones in goal-attainment. If the business chooses not to implement these systems based on the costs, time investment and potential complexity, it is likely that problems with turnover and dissatisfied employees will persist. The human resources function is already complex and labour-intensive and without adequate systems to assist in development of new HR strategies, the business might lose its competitive edge. Recommendation: It is recommended that the business seriously conduct a full-scale needs analysis and identify where existing failures and strengths lie within the business. There are absolutely costs associated with implementation of new support technologies, however the long-term benefits are improved cost-savings with less turnover and a more motivated management and subordinate staff. Electronic communications provide a new opportunity for exchanging knowledge effectively and make everyone within the business more geared toward achieving competitive excellence. It is an excellent risk management process that improves job role function and the inter-connectedness of all areas of the business in a way never done before, whether using HRIS systems or other enterprise planning software on the market. The impact on stakeholders, both internal and external, is obvious despite the recognised costs and labour investment of producing a logical flowchart of activities and finally launching a customized technological system. Customer service can be improved, as well as motivation necessary to maintain a high standing in the competitive marketplace. It is recommended that the business adopt new systems and cease its current reliance on archaic systems that do not fulfil business needs effectively. References: Bambacas, M. & Bordia, P. (2009), ‘Predicting different commitment components: the relative effects of how career development HRM practices are perceived’, Journal of Management and Organization, vol.15,no.2, pp.224-241. Copeland, B. (2004), ‘Making HR your business’, CA Magazine, vol.137, no.3, pp.45-47. HR Focus. (2009), ‘How to select HRIS software & defend your planned purchase’, vol.86, no.9, pp.3-5. Morris, C. & Maisto, A. (2005), Psychology: An Introduction, 12th ed. Pearson Prentice Hall. Ngai, E. & Wat, F. (2006), ‘Human resource information systems: a review and empirical analysis’, Personnel Review, vol.35, no.3, pp.297-315. Read More