Management of the information technology is one of the trending issues in the most organization in Australia and globally. The document seeks to explore the impact of CIO in the information system of an IT company. The report gives the background information of the two IT companies; TPG Telecom Limited (www.tpg.com.au) and Atlassian Corporation (www.atlassian.com). The IT department is an important aspect of the business and majorly focus on the ensuring the information system is organized in line with the objective of the organization. In order to understand the process of managing the human resource in contemporary IT organization, the business needs to first explore the IS planning. The paper explores two IT companies with good IS planning strategy. Literature analysis is also part of understanding the IS structure of the organization compared with the IS of the two organization. The document also explores the human resource management in an organization giving literature analysis and comparing with the human resource management within the two organizations. Literature analysis on human resources management show the current approaches that the business uses for the human resource management. Moreover, the literature analysis also provides the importance of the managing human resources in the current society.
TPG Telecom Limited is a telecommunication and IT company and with more than 1400 employees. The organization was founded in 1986 with the original name of Total Peripherals Group. The organization, therefore, need as strong human resources management. The head office of the organization is in North Ryde, New South Wales Australia. The human resources manager is also located within the organizations head office. In addition, the business has a well-developed website located by the URL www.tpg.com.au. Since its inception, the company has undergone various changes that include merger and acquisitions that shaped the organization’s management. The company has larger IT department and by 2015, the company was one of the largest IT companies in Australia. The company is an IT organization, the IT department forms the dominant department with more employees than any other department. One of the technical issues that are found in the organization is the managing of human resources based IT System (Ramli & Hutchison, 2013).
Atlassian Corporation is a software developing company with strong IT services placing the company in a good strategic position in IT industry in Australia. Atlassian corporation was founded in 2002. The head office of the company is situated in Sydney Australia from where the organization manages its operations. The website of the organization is accessible at www.atlassian.com. The organization has more than 2200 employees by the end of June 2017. Being 15 years old the company has developed its IT department growing in size and it has lead to accumulation of revenue of more than $620 million as at July 2017. Being software developer the company has a well developed human resource management system. Most of the organization’s resources are under control off the IT department of the organization (www.atlassian.com, 2017).
Information system planning (IS Planning) include the structure and strategies that an organization uses to receive, process and relay information. IS Planning offers the basis of planning the information system that supports the organization’s capability and IT processes. This implies that the IS Planning that the organization uses to show the approach that the organization has towards the information technology.
The chief information manager indicated that the company has a simple approach to IS planning. IS Planning has a strategic framework that is based on the core value of the business. The company has a simplicity approach to an information system with its core value grounded in simplicity, affordability, and reliability. The goal of IS Planning for the organization is to make the system simple and easy to understand for both employees and staffs. The telecommunication nature of the business assists the IT department of the company to simplify its human resource management system. This is also the main source of the success of the organization’s information services (Colley, 2010).
Atlassian Corporation approach to IS Planning is based on the portfolio management approach that is done through softwares. The IS planning of the organization is grounded on its strategic plan and works for the attainment of the organization goals and objectives. The company mainly specialize in software development and this the company has exploited for the company’s own use. For instance, the main approach that the company uses is the software called Jira software. The organization also uses its software to offer teamwork self-services accessible to all employees and stakeholders. Within the organization, Jira software offer platform for receiving, processing and display of information (Douglas, 2014).
IS Planning is core the organization especially the IT company that provides IT services to clients. The literature provides various aspects of the IS planning that are also useful for managing human resources. Organizational process and objectives is an important aspect of the IS planning. According to Brumec and Vrcek (2002), learning and understanding the organizational processes gives the direction that is required when planning the company’s information system. Business objectives highlight the main aim of the IS planning that is utilized for designing the system. The goals for the IT department as indicated by Rainer and Cegielski (2009) is very crucial for IS planning.
A study by Bruque and Moyano (2007), shows that the information system requirement for each organization forms part of the IS planning for that organization. This is not contradicted by Newkirk, Lederer and Srinivasan (2003), that also explains that the information system process that is required for the organization will lead to finding the alternative systems that are used for planning. Brumec and Vrcek (2002) give the model of IS planning as defining the organizational requirement, development of sub matrix and evaluation of organizational IS requirement. The model of the IS also the organizational infrastructure capability that ensures the flexibility and expandability of the information system (Mak, 2001).
Rainer and Casey (2012) explain the importance of information system planning in fulfilment of the organization’s strategic plan. In this sense, the IS gives the competitive advantage between the organization, stakeholders, and the competitors. Information system planning offers the IT company ability to plan or organize its resources for the better accessibility by both stakeholders and management. For instance, application of software in the current organization is important for management of resources and information itself. This gives the IS planning and the IT department an important role in the organization’s management or performance (Pollack, 2010).
Newkirk and Lederer (2006) advance two main approaches to IS Planning in an organization and these are comprehensive formal and incremental informal planning. Comprehensive IS planning is the most successful approach as compared to the informal approach that has always lead to failure of the business. This is similar to Lewis (1993a) that explores the success of an information management based on a good comprehensive IS Planning. Informal IS Planning, on the other hand, is more of a traditional information system that does not put much consideration including the contemporary business environment.
With the increasing use of enterprise resource planning (ERPs) in managing the resources the IS Planning, IS Planning is part of the ERP systems used in the organization. Ass explained by Alter (2006), every organization applies software often ERP in nature to manage its resources. In contrast, an organization can also choose to use simple information system planning that meets its business requirement (Costa, Ferreira, Bento & Aparicio, 2016). Many companies project the future utilization of the IS Planning in management and general operation of the organization.
TPG Telecom chief information officer explains that the impact of CIO in the organization is to design and evaluate the information system pathways within the organization. Furthermore, the organization has all the capability and IT network infrastructure to meet the customer’s need. This the manager elaborate based on their intended end to end corporate responsibility to the customer for their services. This ensures that the organization work towards the set objectives. In addition, the CIO is expected to make decisions concerning the applications of the IS within the organization (Khosrow–Puor, 2006). The information officer is also concerned with innovation within the department that ensures high customer satisfaction. Finally, the manager also pointed out the ongoing intention of the organization to implement other IT management system that will take the form of ERP system with limited human interventions (Yusuf, Gunasekaran & Abthorpe, 2004).
The chief information officer in the organization explains that the impact of the CIO in the business is mainly to monitor information flow according to the strategic plan of the business. The IT manager indicates that their main information system planning takes advantage of their many planning softwares the organization has developed (www.atlassian.com/about-us). The information system planning in the organization softwares that are used in the organization are two mainly Confluence and Jira. The idea behind these two softwares is to apply portfolio management in the IS planning. This is based on the organization core values that are geared towards teamwork made possible by softwares (Rynes, Barber & Varma, 2000). In order to ensure to offers smooth services to both staffs and other stakeholders, the IT department is in continuous updating and developing softwares that are used to run information system.
TPG Telecom and Atlassian Corporation reveal some significance in software usage and the information system capability in general. TPG Telecom mainly focuses on connecting the overall performance of IT system and organization’s objectives. This is enhanced by monitoring capability of the CIO that mainly evaluates the functionality of the information system that the business uses (Kroenke, 2015). Atlassian Corporation, on the other hand, dedicates the responsibility of software evaluation to the CIO and the IT department. This is different from the broader focus of the IT department in TPG Telecom. Similarly, the two organization has their IT departments in charge of the information system and this department forms the backbone of the organization since both organizations are IT organizations. The literature, on the other hand, highlights the various connections between Information System planning with other organizational structure such as human resource management. TPG Telecom concurs with the literature on the alignment of IS planning and organization’s objectives or goals (Nijssen, 1989).
Managing human resource in an IT organization is a dynamic issue that currently affects most organizations in Australia and globally. Managing human resource as an issue was selected since it acts as the uniting factor that brings together various aspects of management such as between IT management and executive management. In the current business environment, managing human resource factor in the advanced technology and play a significant role in the IS Planning (Collings & Wood, 2009). Managing human resource is important in the contemporary IT companies mainly in three different ways. These are human resource management forms core to the strategic plan of the organization, the success of the organization is also connected to the success of the human resource management strategy and finally, effective human resource management leads to the overall accomplish of organization’s goals. Managing human resource, therefore, has a critical role in any organization and need to be properly examined for a better outcome of the organization (Kovacs & Paganelli, 2003).
Managing human resource especially in the technological time remains tricky since every organization struggles to update its human resources management system. According to Paauwe and Boon (2009), a good human resource management should consider the scope of the IS plan for the organization that is willing to adopt the system. This implies that the organization needs to put its information processing scope first before deciding on the human resource management system to use in an organization. This is similar to the findings of Costa, Ferreira, Bento & Aparicio (2016) that explains the articulation of the human resources management to the main IS platform of an organization.
As explained by Fryling (2010), managing the human resource in the current business environment need to take into consideration the organization’s strategic plan, vision and core value as this act as the guidelines for selecting a good human resource management system. Kovacs and Paganelli, (2003), when assessing the current human resource structure indicates that managing a human the resource in an IT company requires robust IS system with the capability to organizes various resources together in a harmonized manner. This, therefore, gives ground for softwares that can do the coordination and organization of human resources comprehensively. This has also left the human resources management in the hand of IT department since the department also manages the organization’s software and information system.
Finally, Collings and Wood (2009) explain that human resources management plays a role that can be traced to the overall performance and this is properly managed then the organization is most likely to survive in the tough environment (Guetal and Johnson, 2012). Managing human resources, therefore, should be handled with the most care to avoid any underperformance in the business. Platforms that offers human resource management services, therefore, remains the linkage between management and the overall management of the organization (Dostal, 2007).
According to Costa, Ferreira, Bento and Aparicio (2016), with the inception of the enterprise resource planning, managing human resource has been left for the machines. This has also been facilitated by the desire to incorporate all the resources of an organization into a system that is accessible for all. This is also confirmed by Yusuf, Gunasekaran and Abthorpe (2004) that indicate that there are also ERP that specifically dedicated for human resource management. Other studies suggest that managing human resource under the new era of ERPs is part of the IS Plan for many organizations. Similar, Fryling (2010) also confirm that larger organizations prefer running employee’s affairs through a central enterprise resource planning system.
The organization has well elaborated human resource management system that forms part of the organizations IS plan though appear to be more traditional in nature (Newkirk & Lederer, 2006). The human resource strategy applied in the organization make use of top-down communication pathways that concern giving direction from senior management to junior staffs. This role the company does use software that ensures coordination and organization of human resources. The TPG Telecom company has software that is built to organizes and link all the company’s resources. The software takes the approach of a simplicity management where it works to channels the resources based on the organization strategic plan and vision of simplicity, reliability, and efficiency. The company’s management understands the importance of human resource management and its applications to business’s overall performance in the organization. This is of course tied to the IT department of the organization that organizes and manages information system resources (Ramli & Hutchison, 2013).
The organization has its human resource mainly engraved within the software management system. The organization has softwares that are used to manage the human resource and this is incorporated into the main IS system that controls most of the organization’s resources. The IT department plays an important role in software that has human resource attachment within the organization’s main information system. The approach that the company uses in managing human resource takes into consideration the portfolio management system. Where the human resource is part of the portfolio and management is run within the software built to operate all departments of the organization (Finley, 2013). On the physical structure of the human resource within the organization, the organization has the overall human resource manager that performs the supervisor role though this is an inconsistency with the ERP controlling the human resources. This software system, of courses the organization, manages based on the portfolio management system (Fryling, 2010).
Atlassian Corporation sets out an example of a good current IT company with good portfolio management software as compared to TPG Telecom that is more traditional in terms of human resource management. Atlassian Corporation uses its two softwares with the ability to manage both human resources and other resources in a more harmonized manner giving a deeper insight into the real role of information technology in managing of the human resources (Douglas, 2014). The softwares Confluence and Jira are more current and perform all the necessary work that is required for an IT enable human resource management system with real-time operational IS planning capabilities. TPG Telecom, on the other hand, focuses on the simplicity of the system without factoring the contemporary measures affecting IT business organization. This can, however, present some challenges as the organization needs to apply the system in line with its size and the human resource that need to be managed (Alter, 2006).
The literature presents some currents aspects of the human resource management and the role it plays in business. TPG Telecom is more focus on the business core value of simplicity as the compared to Atlassian Corporation that is more focus on the enhanced business environment in line with the contemporary business setting (Kovacs & Paganelli, 2003). Literature provides the relationship between IS planning and the human resources management giving the central role that IT hold in managing human resources. TPG Telecom minimally focuses on the application of IS planning in human resource management and instead conform to traditional human resource management system within the software setting. Atlassian Corporation, on the other hand, gives clear information system planning structure that is tied to portfolio management approach. Both Atlassian Corporation and TPG Telecom agree with the literature on the role play by IT department on human resource management pointing at benefits of human resource management at the organization performance level (Rynes, Barber & Varma, 2000).
Conclusion
In conclusion, IT is becoming an important aspect of an organization regardless of the type of business the organization may be doing. CIO equality plays a critical role in the management of information system of an organization. The paper focus on two IT organization exploring the IS Planning approaches that the organization uses. These two organizations are Atlassian Corporation and TPG Telecom. Managing human resources in the technological era requires a critical look into various softwares that assist in organizing and coordination the various resources that the organization have. The two companies take advantages of their information system structures and the infrastructure available for offering services to both staffs and customers. The different organization has different approaches for human resources management. Analysis of companies shows that their human resources management has incorporated into the software.
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