MIM Speaks

|HOME |LISTING |ENQUIRY

>> MIM Speaks


E-TECHNOLOGY TO TRANSFORM HR FUNCTIONS
APRIL 22, 2001 - THE STAR
                                                                                                           
COMPANIES operating in today's highly competitive and                                                                                                 
fast-changing environment are looking at ways they can use                                                                                            
e-technologies to operate their business more effectively.                                                                                            
                                                                                                                                                      
The areas in a business operation that can use e-technologies                                                                                         
are those pertaining to administrative activities, like the                                                                                           
generation and delivery of data, record keeping, and routine                                                                                          
operational and procedural decisions.                                                                                                                 
                                                                                                                                                      
The prime objective of operating an e-business mode is to                                                                                             
perform or deliver services more effectively and efficiently.                                                                                         
The type of operations that has always been identified as                                                                                             
strategically important involves activities such as marketing,                                                                                        
production, and research and development.                                                                                                             
                                                                                                                                                      
However, staff activities like human resources can also have an                                                                                       
impact if it adopts strategic value-added roles to support the                                                                                        
company's business strategy.                                                                                                                          
                                                                                                                                                      
To play such a role, HR professionals should re-align their                                                                                           
time and efforts from processing, compliance and reporting to                                                                                         
focus more on change leadership, strategic business support,                                                                                          
talent acquisition, management and development, and providing                                                                                         
centres of expertise.                                                                                                                                 
                                                                                                                                                      
Using e-business technology can help HR play a more strategic                                                                                         
role in a firm's business by helping it to deliver its services                                                                                       
and information to employees and line managers with minimum                                                                                           
interactions and response from HR personnel.                                                                                                          
                                                                                                                                                      
This way, they can devote more time and effort to support the                                                                                         
firm's strategic business through recruiting, developing and                                                                                          
retaining the required skilled personnel to implement the                                                                                             
business strategy.                                                                                                                                    
                                                                                                                                                      
Among the HR services where e-technologies can be applied are                                                                                         
employee's personal records, leave applications and record,                                                                                           
staff benefits entitlement, and job availability. In the                                                                                              
traditional mode of providing these services, employees contact                                                                                       
various HR personnel to get this information and in many cases,                                                                                       
are referred to various HR personnel before they can get the                                                                                          
correct information.                                                                                                                                  
                                                                                                                                                      
At times, this can prove frustrating to the employee who is                                                                                           
overseas or when the HR personnel who has the information is                                                                                          
not around.  By converting this information to the e-business                                                                                         
mode, employees can access it through the computer anytime and                                                                                        
anywhere in the world.                                                                                                                                
                                                                                                                                                      
In cases where the employees need to change their personal                                                                                            
information, like their home address, marital status, family                                                                                          
size and other particulars, they can change the data directly                                                                                         
through the computer.                                                                                                                                 
                                                                                                                                                      
In the e-HR mode of delivery, employees can also pose questions                                                                                       
for clarification through the intranet for the HR expert to                                                                                           
respond.                                                                                                                                              
                                                                                                                                                      
In areas where employees' participation is required, like leave                                                                                       
application, employees obtain the application through the                                                                                             
intranet and input the particulars directly; the forms are then                                                                                       
sent through the intranet to his superior for approval.  If                                                                                           
approved, the employee's leave record is updated automatically                                                                                        
and the employee informed online.                                                                                                                     
                                                                                                                                                      
Other HR services that lend themselves to e- business                                                                                                 
technology application are staff recruitments, employee                                                                                               
performance appraisals, and remuneration and development.                                                                                             
                                                                                                                                                      
In staff recruitments, HR can use the Internet to advertise                                                                                           
vacant positions and receive applications. Candidates'                                                                                                
particulars can be routed for storage for future reference.                                                                                           
                                                                                                                                                      
Similarly with employee performance appraisal and remuneration,                                                                                       
e-business technology can be used to send the relevant                                                                                                
appraisal forms through the intranet to the employee's                                                                                                
superior, who will input directly his comments,                                                                                                       
recommendations, salary adjustment and bonus.                                                                                                         
                                                                                                                                                      
If higher authority is needed to approve the recommendations                                                                                          
for salary adjustments and bonus, the forms are routed intranet                                                                                       
to the higher authority. Once these are confirmed, the                                                                                                
employee's remuneration record is automatically updated online.                                                                                       
                                                                                                                                                      
In providing skills and management development, HR can also                                                                                           
transform this process to e-business by developing a web portal                                                                                       
learning environment, and using video, audio and multimedia                                                                                           
technologies to effect the knowledge transfer.                                                                                                        
                                                                                                                                                      
The e-learning can provide an employee an environment to self                                                                                         
direct his learning to acquire the skills to meet his                                                                                                 
individual needs for achieving his business objectives and                                                                                            
acquiring career competences.                                                                                                                         
                                                                                                                                                      
The e-learning model can also support workforce on the move                                                                                           
since it is accessible anyway around the world by any worker                                                                                          
with a laptop.  Mobile workforce therefore need not miss out on                                                                                       
the learning opportunity.                                                                                                                             
                                                                                                                                                      
The e-learning can also track course completion and record                                                                                            
employee skill development , progress.  For management                                                                                                
development, the e-learning model can be developed to include                                                                                         
interactive learning modules, simulation, and collaborating                                                                                           
learning, where employees choose a time convenient to them to                                                                                         
attend classes to facilitate the learning of management skills.                                                                                       
                                                                                                                                                      
E-business can also be applied to develop an intellectual asset                                                                                       
website, where a company's intellectual capital of its human                                                                                          
resource assets is stored. Other information that can be stored                                                                                       
in this intellectual website are profiles and experiences of                                                                                          
projects implemented, and record of any issue based                                                                                                   
collaboration and discussion.                                                                                                                         
                                                                                                                                                      
Managers undertaking a new project can access such a website to                                                                                       
draw on the human resources with the required skills and                                                                                              
experiences to carry out the project.                                                                                                                 
                                                                                                                                                      
A company converting its traditional HR function to e-HR will                                                                                         
see a number of benefits.                                                                                                                             
                                                                                                                                                      
* THE line HR personnel's time will be freed from dealing with                                                                                        
transaction and administrative activities to act as strategic                                                                                         
business partners.                                                                                                                                    
                                                                                                                                                      
* APPLICATION of HR policies and provision of HR information                                                                                          
will be consistent.                                                                                                                                   
                                                                                                                                                      
* EMPLOYEES and managers will have rapid access to                                                                                                    
telephone/web/e-mail support anytime and anywhere.                                                                                                    
                                                                                                                                                      
* BECAUSE of the responsive support provided to employees and                                                                                         
their families to dealing with their welfare and benefits, it                                                                                         
is a useful tool to retain employees.                                                                                                                 
                                                                                                                                                      
* IT provides an effective tool to collect, trend and track                                                                                           
data.                                                                                                                                                 
                                                                                                                                                      
The e-HR transformation will result in reduced overheads                                                                                              
arising from the streamlining of resource management, informed                                                                                        
employees as corporate communications and access to information                                                                                       
will be enhanced, efficient and effective employees arising                                                                                           
from use of collaboration tools and self-service applications,                                                                                        
and a learning organisation due to the easy and convenient                                                                                            
access to learning materials.                                                                                                                         
                                                                                                                                                      
 

Contact Us
Malaysian Institute of Management
(c)2003
MIM, MESB, MTT and IPM . All rights reserved.