Human Resources Management Practices Essay

Pages: 15 (3848 words)  ·  Bibliography Sources: 20  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Management

SAMPLE EXCERPT . . .

" (Mayfield, Mayfield and Lunce, 2003) HRIS further provides the necessary support for the introduction of 'systems thinking' in the organization. According to Weick (1979) and Wilkerson & Paul (1985) systems theory "also draws the boundaries for any given system along with definitional criteria that are especially important for preliminary research. In addition, researchers rely on systems theory to develop hypotheses about which units are required for a properly functioning system, how those units should interact, their strength of influence on overall system effectiveness and how to optimize unit interactions towards realization of strategic objectives." (Mayfield, Mayfield, and Lunch, 2003)

II. Analysis of the Issues

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The work of Kontakos (2003) entitled "Global HR Information Systems" reports that HR Information Systems make the provision of the opportunity "to become more efficient and strategic function by standardizing the majority of the organization's HR processes, improving the quality and speed of available information and improving services to employees." (p.17) Planning for HRIS requires that the organization develop its "overall business strategy, system goals and objectives, critical success factors and the type of data it aims to have. This plan serves to shape the HRIS. The real driver of HRIS is stated by Kontakos to be "strategic thinking -- not technology" and it is emphasized that the plan "incorporates a degree of flexibility to allow for new developments in the organization, business environment, technology, or management thinking." (Kontakos, 2003, p.17) The HRIS system that is designed correctly has the capacity to manage data on employees in the same manner as the organization is managed which highlights the need for a multinational organization to implement a global Human Resources Information System. (Kontakos, 2003, paraphrased)

TOPIC: Essay on Human Resources Management Practices in Assignment

Kontakos states that the global HRIS has the capacity to strategically use vast amounts of employee data and the global database should be of the nature that has automatic updates by the local databases which should serve to ensure that the data in correctly input and that it only needs to be input one time. This allows for the information to be used for conducting in-depth analyses and in assisting HR and the organization to make decisions that are better informed. (Kontakos, 2003, paraphrased) The global HRIS, through application of "a consistent process for capturing and maintaining employee specific data…can be used to identify, plan and budget for employee training, succession planning, and expatriate assignments." (Kontakos, 2003, p.17)

According to Kontakos the multinational organization with a global HRIS when seeking the best individual to fill a position "can very quickly and easily discover the right person…" which effectively creates a competitive advantage for the organization. (Kontakos, 2003, p.17) The system should be designed so that employees who desire to work in overseas assignments are easily identified and this, according to Kontakos "will make the expensive and time-consuming expatriate process quicker and easier." (2003, p.17)

The HRIS may be utilized in thinking on a local basis and for global compensation in that "…compensation can be applied fairly across the globe while still being aware of and understanding differences in compensation for similar jobs in various countries." (Kontakos, 2003, p. 18) It is possible to review plans in local and other currencies and languages with such an HRIS system and as well the global HRIS can make provision of guidelines for compensation and assist the documentation both online and offline toward assisting employees in gaining an understanding of their specific compensation package and in assisting the manager in making decisions for compensation awards and in determining compensation policy matters. (Kontakos, 2003, paraphrased)

Quantitatively, the organization may through use of the HRIS "quickly assess costs when planning for a new department or project regardless of the employees or countries involved." (Kontakos, 2003, p.18) The global HRIS assist in the identification of various currencies and exchange rates and makes the provision of a final cost figure in any currency. For example, it is reported that Professional Marketplace, a global database of IBM's talent is of the nature that assists IBM in ensuring that an employee who is overqualified is not sent to a job that could be handled by an employee who costs the company less which is important when considering that IBM has approximately 60,000 consultants, all who bill by the hour. Qualitatively, IBM is able to make a quick assessment of which employees are available and the qualifications of the employees resulting in more accurate and transparent decisions in overall business planning. (Kontakos, 2003, paraphrased)

The benefits of a global HRIS include that the system "create an element of cultural cohesion and closeness for employees -- especially those within the expatriate community. Employees across the organization, regardless of location, will feel more connected to each other and will have a single point of contact." (Kontakos, 2003, p.18) It is important to understand that there must be a balance between global, standardized HR processes and local customization and while "80% of HR processes are the same around the world the 20% can paralyze the global HRISZ and the organization." (Kontakos, 2003, p.19)

Kontakos states that global organizations "often make the mistake of becoming too corporate-centric believing it knows best. In order to find the right mix of corporate and local culture when implementing a global HRIS, the organization must identify best HR practices and standardize those processes -- some of which may be local. And while the local culture may not match the corporate culture, it should be complimentary. regardless of location, will feel more connected to each other and will have a single point of contact." (2003, p.19) HR Information Systems are becoming more sophisticated with an increase in the volume and detail of employee data. Kontakos writes:

"In some of the areas in which it operates, the organization may face specific laws restricting the way it stores, handles and transfers employee data. Most notable of these laws is the EU Directive 95/46/EC -- on the protection of individuals with regard to the processing of personal data and on the free movement of such data. In terms of a global HRIS and the EU Directive, the organization must ensure that the employee data is limited to specific purposes, retained only as long as necessary, accurate and up-to date, protected by adequate security measures and does not cross borders." (2003, p.21)

Furthermore, there is a requirement that the employee "be notified of and have access to the data." The data may be transferred only to third world countries or those outside the EU "if the country provides an adequate level of protection for the data." (Kontakos, 2003, p. 21) The existing options for making guarantees of data protection are inclusive but not limited to the following: (1) drafting individual contracts between the European business unit(s) and the U.S. Headquarters, certifying to the Safe Harbor Arrangement and ensuring the organization is providing "adequate" privacy protection as defined by the Directive and establishing binding corporate rules (BCR) or internal codes of conduct. BCRs are a comprehensive way of meeting privacy requirements globally (Harris, 2006) and have many advantages." (Kontakos, 2003, p.21) BCR advantages include: (1) making the provision of a legal basis for transferring EU data from any EU member state to any part of the global organization; (2) able to yield a single global standard for employee data transfer, handling, and storing so that all employees are provided with equal protection of privacy as well as addressing specific country compliance needs; (3) eliminates legal regulatory overhead of other options that are not necessary; and (5) are flexible and adaptable to creation of user-friendly guidance for employees and agents. The primary drawback is that an excessive amount of time is needed for BCR approval and this is particularly true by each EU member state. (Kontakos, 2003, p.22)

Data security for employee information is best handled at the local level and should necessary involve the involvement of employees. In addition, there is a need for global organizations to provide employees with a self-service tool in the local language so that they can view and update their personal information which his stored both nationally and internationally. Kontakos relates that the "golden age of transactional HRIS and software -- payroll and benefits and hello to the new age strategic HRIS and software -- performance management, succession planning, competency-based compensation and workforce analytics . (p. 23)

The work of Hendrickson (1996) entitled "Recasting HRIS as an Information Resource" states that traditional thinking in HRIS has as its focus "satisfying current and future information needs of functional areas. The weakness in the system is that information is considered only in relation to functional needs, which means that information as an independent resource is virtually ignored." (p. 1) Information generally collected by HR department includes such as absenteeism, employee demographics, workers' compensation, performance appraisal and payroll. Although most departments do an excellent job tracking this information, very few departments are able to exploit it for maximum value." (Hendrickson, 1996, p.1)

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