Thursday 24 October 2013

Conclusion


In conclusion, I have learned quite lots of knowledge about Human Resource Information System (HRIS) in this few weeks of lectures which some I don’t even heard about before.

In week 1 of lectures, I understand that HRIS is the integrated system used to gather, store and analyze information about organization’s human resource.  HRIS helps an organization to improve the hiring process, quality of the workers hired and quality of the organization as a whole.

In week 2 of lectures, I have learned that a business must develop suitable strategies to counter competitive forces in order to succeed. There are five competitive strategies which are cost leadership, differentiation strategy, innovation strategy, growth strategy and alliance strategy. By studying all these strategies, I found that different products, different markets and different timing will need different type of strategies to overcome the forces. For example, global markets such as Dominos Pizza have to use growth strategy to diversify into new products or service.

In the week 3 and week 4 of lectures, I have got the knowledge about four different types of HRIS models which are multinational model, global model, international model and transnational model. In my opinion, I think that transnational model is the most wide and most effective model among the four HRIS models. This is because transnational is the combination of multinational model, global model and international model which including centralized and decentralized operations. It acts as resources distributors that facilitate knowledge sharing among different operational units.

In future lectures, I hope that I can learn further knowledge about HRIS so that I will be able to use all these knowledge in order to be an effective human resource practitioner in the future.

On Globalizing HRIS


There are four types of models in HRIS. The first one is multinational models. According to Beaman (2002), “Multinational HRIS” comprises a portfolio of separate, distinct organizations that are delineated by national boundaries. For my understanding, multinational model of HRIS is the organizations that located separately around the world which given autonomy and responsibilities to operate according to local culture.

In the contrast to the multinational model, the head office in the global organization has a great deal of power and puts a strong emphasis on global standardization and operating efficiency. (Beaman and Guy, 2003) I see that this model is using one-size-fits-all approach which the organizations in different places must follow the decision fixed by the head office.

According to Martin and Beaman (2009), the international organizational model is one that takes a more balanced approach between centralization and decentralization. A key characteristic of this organizational model is that it seeks to understand the needs of its local business units and to share and leverage best practices across the organization. In my opinion, I think that international organization is better than multinational and global organization model as international organization is the combination of centralization and decentralization and it also allows sharing cross-border learning and innovation.

Lastly, a transnational organization is a chaordic, networked structure with no centralized “controlling” unit per se, but with a well-defined set of centralized “coordinating” and “cooperative” processes that govern how the organization functions. (Beaman, 2003) In my opinion, I think that transnational organization is the best as this model is the combination of the other three models of flexible and sensitive to local conditions (multinational),  competitive and effective (global) and sharing knowledge between local units (international).

References:

2. Karen V. Beaman and Gregory R. Guy (2003), Transnational Development: The Efficiency-Innovation Model

3. Lexy Martin and Karen Beaman (2009), Leveraging HR Technology: From Global Savings to Transnational Value

4.   Karen V. Beaman (2003), The New Transnational HR Model: Building a Chaordic Organization

Competitive Advantages


In recent years, there has been marked increase in competition in virtually all areas of business. The five competitive forces are rivalry of competitors within its industry, for example, Pizza Hut and Domino’s Pizza, new entrants into an industry or markets, substitute products that may capture market share, bargaining power of customers and suppliers. The ability to outperform competitors and produce above average profits lies in the pursuit and execution of an appropriate business strategy. (Hsieh and Chen, 2011)

According to Porter (2008), in cost leadership, a firm sets out to become the low-cost producer in its industry. The firm has a broad scope and serves many industry segments, and may even operate in related industries – the firm’s breadth is often important to its cost advantage. I see that cost leadership is the technique that reduces the cost of suppliers or customers to the competitors to increase its competitive advantages.

Besides, in differentiation strategy, differentiator incorporates one or several of those features into its product offering to encourage buyer preferences for its brand over the brands of rivals. (Collins and Porter, 1985)  I found that this strategy can catch the buyers who are strongly attracted to the differentiating features and gain greater buyer loyalty to its brand.

Moreover, innovation strategy is also one of the strategies to overcome competitive forces. According to Shin (2001), by using the direct access to consumers enabled by the Internet, companies can collect information, identify target consumers, and better introduce products or services to meet consumers' needs. I see that this strategy is very useful nowadays because people can easily access to the Internet everyday.

Next, Growth strategy increase market share, acquire more customers, or sell more products to strengthen a company and increase profitability in the long run. (Hemmatfar, 2010) 

Lastly, alliance strategy means working with business partners in partnership, joint ventures, or virtual companies. This strategy creates synergy, allows companies to concentrate on their core business, and provides opportunities for growth. (Hemmatfar, 2010) In my opinion, using this strategy can help businesses to work together as a team to strive for a common goal while the disadvantage is the conflict may occur.




References:

1.                  Michael E. Porter (2008), Competitive Advantage: Creating and Sustaining Superior Performance 
(
http://books.google.com.my/books?hl=en&lr=&id=H9ReAijCK8cC&oi=fnd&pg=PR15&dq=five+competitive+strategies&ots=p79CRFeX8L&sig=E5XWiV-mIPHv6Pd9_FJ6apJNBhc&redir_esc=y#v=onepage&q=five%20competitive%20strategies&f=false)

2.                  John Collins and Michael E. Porter (1985), Strategy and Competitive Advantage (http://www.montana.edu/brester/agbe445/readings/Strategy%20Newer.pdf)

3.                  Namchul Shin (2001), Strategies For Competitive Advantage In Electronic Commerce

4.                  Mahmood Hemmatfar, Ph. D. (2010), Competitive Advantages and Strategic Information Systems

5.                  Yi Hua Hsieh and Hai Ming Chen (2011), Strategic Fit Among Business Competitive Strategy, Human Resource Strategy, And Reward System

Introduction to HRIS



According to Yan (2010), the complex business environment is seen as multidimensional, with numerous and differentiated effects on various organizational characteristics and processes. Therefore, the business environment should altered aligning with the worldwide changes to increase competitiveness.

Firstly, the major development that has significantly impacted business has been globalization. Faster methods of transportation, together with instantaneous information, have allowed the world to become one giant marketplace. Consumers can now buy products from foreign firms as easily as they can from a local store. (Albrecht and Sack, 2000) I see that the advanced technology that have been invented nowadays enable people easily access to the business around the world with just a finger tip.

According to Khanore, Patil and Dand (2011), many of the industrial powers are being transformed from industrial economies to knowledge-and information-based service economies, whereas manufacturing has been moving to lower-wage countries. In a knowledge-and information-based economy, knowledge and information are key ingredients in creating wealth. In today’s society, I found that people realize the importance of knowledge and they further their studies in higher education in order to find a better job instead of working as a worker in factory or farms.

Besides, transformation of the business enterprise also altered the business environment. The traditional business firm was a hierarchical, centralized, structured arrangement of specialists who typically relied on a fixed set of standard operating procedures to deliver a mass-produced product. The new style of business firm is a flattened, decentralized, flexible arrangement of generalists who rely on nearly instant information to deliver mass- customized products and services uniquely suited to specific markets or customers. (Khanore, Patil and Dand, 2011) I see that it may be aimed to save time and cost of the company.

Lastly, there is a change in emergence of the digital firm. According to Laudon (2006), a digital firm is one where nearly all of the organization's significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. In my opinion, digital firm not only can increase the profit of the company, but it also makes people more convenient in buying a product or service.



References:
      1.      Laudon, K. & Laudon, J. (2006), Management Information Systems: Managing the Digital Firm

2.      W. Steve Albrecht & Robert J. Sack (2000), Accounting education: Charting the course through a perilous future

3.      Prof. Sheetal Khanore, Prof. Rajendra Patil and Prof. Hiren Dand (2011), Management Information System

4.  Shigang Yan (2010), Competitive Strategy and Business Environment: The Case of Small Enterprises in China