Advances In Information And Communication Technology

Published Date: 02 Nov 2017

In a world of ever-changing requirements technological advances and Human Resource (HR) strategies need to be consistently examined and adapted to the current globalised environment. Snell, Stueber, and Lepack (2002) suggest that HR can meet the challenge of simultaneously becoming more strategic, flexible, cost efficient and customer-oriented by leveraging information technology (IT). (Leveraging HR through technology - introduction) This essay will critically examine the impact that technology is having on HR strategies looking at Human Resource Information Systems, Change management and the notion of Virtual work in supporting the globalised environment.

Human Resources Information System (HRIS) provides a single, centralised view of data that an organisation requires for completing HR processes. Such processes include recruiting, performance appraisals, payroll, and employee self-service functions. The current generation of HRIS automate and devolve routine administrative and compliance functions traditionally performed by corporate HR departments and can facilitate the outsourcing of HR (Barron et al,. 2004 Human resource information systems, replacing or enhancing HRM ). A HRIS system can enhance the strategic contribution of HR to the organisation by being able to store and retrieve large amounts of data to be analysed thus providing information to management in regards to trends and observations, it can be combined and reconfigured to create new information, a storage of organisational knowledge that can be accessed at any time, communication amongst colleagues is easier and more efficient and there is lower administrative costs and increased productivity. There are also challenges to implementing and maintaining these systems, the first challenge is the ability to maintain senior management commitment and the continuous resources required to implement, maintain and upgrade, the second challenge is the complexity of the system and its associated functionality and the third is the acceptance from line managers and employees to utilise the system and managing the change processes associated.

Managing the implementation and change process across the organisation is an important aspect of applying a new HRIS system. Falconer (2002) (Developments in change management) suggests that change is not a linear process or a one-off isolated event but is a continuous, open-ended, cumulative and unpredictable process of aligning and re-aligning an organisation to its changing environment. Change can encounter resistance from those who are required to participate, resistance such as a misunderstanding and lack of trust, attempting to protect a self interest in the current process and providing a little or no interest in new process or systems. HR Practitioners must ensure that leader’s get the technical (strategic) issues correct, execute a well-planned implementation process and communicate extensively to overcome the resistance to change.

Outsourcing inefficient HR tasks is another area of focus for the reduction of costs towards the organisation. A case study conducted by Carrig (1997) on the American based Continental Airlines and the famous turnaround of the company was noted that the CEO Gordon Bethune mandated that its HR strategy had to be self-funding therefore its marginal cost had to be zero. Managers are asked to cut costs and therefore utilise their time, talents and resources efficiently. It is these cost restrictions within strategic HR that link its strategy to increased accountability. Outsourcing decisions more often than not are driven by the reduction in costs rather than broader strategic issues and the potential loss of operating control and decreased internal ability to execute critical activates may hinder organisational effectiveness over the long term. (Lepak & Snell 1998)

As organisations become increasingly globalised and the requirement to operate around the clock, human resources management has had to adopt strategies that can accommodate these requirements. A strategy that has been implemented is the concept of Virtual HR. Virtual HR is a network based structure built on partnerships and typically mediated by information technologies to help an organisation acquire, develop, and deploy intellectual capital. (Virtual HR: strategic human resource management in the 21st century) The emergence of virtual HR is stemmed from the requirement that HR must provide an increasingly strategic focus to the organisation, therefore HR functions must provide a greater amount of flexibility in its programs, policies, practices and services they provide (Wright & Snell 1998 Virtual HR: strategic human resource management in the 21st century page 2) and thus the concept of utilising change management in rolling out these concepts has become paramount.

Virtual work can be divided into three types, Virtual teams, Remote Control and Simulations. Virtual work involves teams that are geographically distributed, it is teams that work across times zones whilst managing cultural diversities and therefore work without face-to-face interaction that is typically via digital technologies that mediate communication (Griffith et al. 2003, Gibson and Gibbs 2006 The Lure of Virtual pg2 last paragraph) Remote control involves working with objects rather than people through digital technologies and Simulations involve working with objects that emulate physical processes. Virtual teams allows organisations to utilise qualified staff at a lower cost, are able to operate twenty four hours a day and an increase in cross-functional collaboration and knowledge sharing. The disadvantages are an increased misunderstanding across different cultures and languages and there is a risk of data integrity and network security across borders. Virtual teams can be broken down further into five areas, Remote work, Telecommuting, Distributed work and the most common arrangement is Telework.

Telework is conducting work outside of the traditional workplace, it is utilising information technology and telecommunication equipment to work in an agile environment and it is assisting in the retention of talent for those who have personal commitments and/or are attracted to working as an independent professional. The advantages of teleworking is it can indirectly reduce absenteeism and promote positive attitude for the employee and could also promote the employer as an employer of choice, it has been related to increased employer performance, can have significant costs savings by utilising a hot desk arrangement and provides a positive effect on work-life balance. The disadvantages of teleworking a limited opportunity to interact with co-workers which could affect team collaboration and there may be a reduced sense of belonging and social isolation. The implications from a HR focus is there may be cultural resistance where employees may perceive managers to be less trusting of a teleworker and negative views based on traditional productivity and performance metrics.

An organisation that is extremely successful at operating globally is Dell computers. Dell computers had begun its operations in 1984 in Texas, Austin. By 1999, Dell had operations in China, Brazil and Malaysia. 2011 onwards they have operations in nearly every major country in across the globe. In achieving a globalised footprint they had to undertake all forms of technological advancement and develop central HR strategies that are created at the parent company and adapted to host country environment.

Organisations are confronted with the pressures of decreasing costs on the basis of existing technology and resources whilst targeting improvements in productivity, efficiency and quality service across a globalised environment. This essay has outlined the impact that technology has on HR strategies and specially focused on Human Resource Information Systems and the ever changing demand for a global work environment. Furthermore, technology has and will continue to impact Human Resources Strategies well into the 21st century. Culture clashes? Change management?

Question 1

What do you consider are the most important strategic challenges for today’s HR practitioners operating in multi- or transitional companies? Critically discuss your position drawing on ideas and arguments raised during the semester and with reference to a brief example from industry.

Globalisation ‘is marked by the integration of deregulating markets and technology facilitated by telecommunications and ease of transport’ (Clegg et al. 2008, p581 lecture slides) It is globalisation that has made it paramount for HR practitioners to be aware of and practise international human resource management. This is vital in order to keep up with the rapid pace of globalisation and for HR practitioners to have a global vision of how to manage their people effectively both at home and abroad. This essay will critically examine strategic challenges to offshoring, corporate social responsibility, culture and diversity and talent management that are faced by HR practitioners.

According to Yip (1995: 79 the changing role of hr manager for international assignments), there are four major drivers of globalisation: the global market with its consumer needs, wants and expectations; production and labour costs in different countries; government rules and regulations regarding taxes, tariffs, quality control and import/export restrictions; and competitors’ actions. When an organisation intends to expand overseas, a challenge for HR practitioners is to be involved in the decision making. HR practitioners need to consult local representatives on facets such as local culture, employment aspects, safety, customs and traditions in order to operate efficiently and effectively within the host country. For example, women may have a different status in business in other countries compared to the home country. In Dubai, as in all Islamic countries, foreign women are not allowed to be employed. Therefore, this will affect human resource’s international recruitment strategy, not only for the employees, but also for wives of its expatriates.

Off- shoring is a major aspect for organisations in a globalised environment. The definition of off shoring is moving an organisations production and/or services to another country as an indirect employer. The number one strategic driver to offshore operations cited by 93 per cent of participants to the ORN survey is to lower production costs such as wages, this is closely related to the need to respond to competitive pressure (69 precent) (offshoring Work: Business Hype or the Onset of Fundamental Transformation), whilst the additional benefits is to improve processes and address any form of skills shortages in its home country. Offshoring also has risks, risks such as poor service quality and the lack of cultural fit between the head office and the host country and extensive employee turnover and low employee morale.

Stone (2008) are of the opinion that strategic HR across boarders has aspects that are legally and culturally determined by the country they are entering, but ultimately HR is still responsible for the strategy and implementation plan. For each country the multinational organisation trades in, HR must consider what strategies will or will not work there. An example of a cultural difference is study found that Chinese employees expected lifelong employment and also welfare provisions such as paid sick leave, meals, healthcare and schools. Although this view has been changing since the late 70’s, many people have entrenched ideas of what a typical employment relationship should involve (King & Bu, 2005: 49). Barthelemy believes the following: "The intangible cultural fit between western organisations and their off shore outsourcing opportunities in areas such as employment work ethics, expectations for long-term relationship development and job-specific commitment is equally significant to organisations in order for them to bring such practice to long term success" (2003: 88). Research should be conducted in various countries to ensure HR and the organisation is well prepared to meet these expectations.

Training and change management is crucial to expatriates embarking on an assignment overseas. According to the 2002 survey conducted by Gomez-Mejia and Balkin, it was said that expatriates wanted their HR departments to eliminate unnecessary uncertainty and ambiguity when provided with an overseas assignment. Pre-departure training should include aspects of local cultures, values and attitudes. In-country training could be supplemented by local mentoring, and there could be additional cross-cultural training for spouses and other family members. Conversely, there could also be orientation and training for host national before the expatriate arrives. Over a period of time, employees begin to retain the intimate knowledge and skills of multi-national companies, Carpenter, Sanders & Gergersen (2001) noted that "organisations increasingly value international experience in their human capital" (Carpenter, Sanders & Gergersen 2001) therefore an employee’s knowledge would be valuable especially if it was received overseas, because they would acquire skills and expertise which might not be easy to obtain in a home country.

Corporate Social Responsibility (CSR) is another important aspect when organisations are trading globally. CSR is how businesses align their values with the expectations and needs of stakeholders – not just customers and investors, but also employees, suppliers, communities, regulators and society as a whole, it is a company’s commitment to be accountable to its stakeholders. HR practitioners are well positioned to play an instrumental role in helping their organization achieve its goals of becoming a socially and environmentally responsible firm – one which reduces its negative and enhances its positive impacts on society and the environment. Further, HR professionals in organizations that perceive successful corporate social responsibility (CSR) as a key driver of their financial performance can be influential in realizing on that objective. Indeed, HR’s mandate to communicate and implement ideas, policies, and cultural and behavioural change in organizations makes it central to fulfilling an organization’s objectives to "integrate CSR in all that we do." That said it is important to understand that employee engagement is not simply the mandate of HR. Indeed people leadership rests with all departmental managers. HR can facilitate the development of processes and systems; however, employee engagement is ultimately a shared responsibility. The more the HR practitioner can understand their leverage with respect to CSR, the greater their ability to pass these insights along to their business partners towards the organization’s objectives in integrating CSR throughout their operations and business model.

Hewlett Packard has been instrumental in building a successful outsourcing relationship with its foreign partners.