Discuss about the Everstar Engineering and Services Pte Ltd.
The aim of the report is to focus on the human resource management system in a Singapore based small and medium scale company Everstar engineering & services pte ltd. The report analyses the role of human resource management software in this organisation. Human resource manage system does not get much importance in a SME and hence, use of software in HR management is less compared to a large scale company (Wei & Feng, 2013). HR software has important role in management of human resource such as employee payroll, hr system, recruitment system and more. Application of HR system increases efficiency of the human resource management system of the organisation. However, the nature of human resource changes overtime. The report discusses the current HR system and application of HR software for the chosen organisation.
Change in role as an administrator
The nature of business is constantly changing. The reason is change in socio political nature, economic environment along with technological innovation. Change in labour law has great impact on the human resource management. The changing nature of the HR system now deals not only with hiring and firing employees or payroll but also has became a key role player in the growth of the organisation. A talented professional HR has capability to recruit right individual, who can contribute significantly in the organisational growth process (Nguyen & Siengthai, 2016).
In the past time, if any employees did a good work, the employees were rewarded in order to have the same good result in future. Employees were punished for the bad work. In present times, employers and the HR department have become more proactive rather than reactive. Good works are definitely rewarded (Pande, 2015). However, employees are not punished for the performance below expectation. Rather, low skilled employees are given training to enhance their skills.
Figure 1: Changing role of HR
(Source: Sajid et al., 2014)
Increasing competition, globalisation, technological change, organisational alliances, new hierarchical structure in an organisation and demographic characteristics have made the HR role critical. HR person now has to perform the role of business partner, strategic thinker. The HR person needs to take challenge and pressure to run the business efficiently. Role of HR is growing in the SMEs. In the view of Abdulah et al. (2013), the functions of HR in an SME are growing with the change in workforce size, growth opportunity, and industry and employees life cycle. Strategic role of HR department has increased with the decrease in administrative role.
Everstar engineering & services pte ltd is a growing SME, which is an engineering specialist solution provider (Everstar.sg, 2016). This company has different activities and hence, employees with numerous skills are required. However, employee strength is less in this company compared to a large scale company. HR in this organisation recruits staffs with different skills and check monthly performance of the employees. Kumar & Parumasur (2013) mentioned that the HR person supervises the payroll system of this organisation along with the performance management. The company performs no other specific role in this organisation.
At the start up stage, the functions of HR were performed by the owner of the company in order to recruit people for management and other team role. Shaheen, Ghazanfar & Hussain (2014) cited that with the growth of the organisation, the task of hiring and managing HR role has become formal, as requirement for defining job role, guidance have emerged. As there is no finance manager in this organisation, HR performs the management of payroll.
HR manager can set a clear goal to the employees to fulfil within a stipulated time in the competitive environment. Selection of right candidate has impact on the company’s performance (Hota, 2012). Recruitment of skilled and experienced employee, who can understand the organisational goal clearly, have contribution in the development of the organisation. Organisational culture is affected by the activity of the HR personnel. HR person sets the values, norms within organisation and shared by the workforce. The values relates to the ethical behaviour of the employees, commitment to the organisation. These values shape the organisational goal and strategy to achieve the goal (Varzaru, 2015).
Human resource management tools can be categorised as Hr tools, talent management and employee engagement tools (Al-Dmour, 2014). Application of software can facilitate Everstar engineering & services pte Ltd of Singapore in the following ways:
If Everstar engineering & services pte ltd can install integrated software, which deals with recruitment, can make this process simple and faster. If this company organise recruitment process online, then this method can save time and reduce cost of recruitment. The saved time can be utilised other productive purpose. When data about the candidate is already entered into the system, re-entry is not required. Software easily chooses right candidates further organisation based on qualification, experience and age. Hr department has to put little effort for selection of right candidates (Alshamaila, Papagiannidis & Li, 2013).
HR person can use software to management employee payroll along with the insurance, leave, overtime payment, tax deduction, daily attendance. HR software may facilitate talent management of Everstar engineering & services Pte ltd. The talent management tool creates a centralised repository for the training of the employees. This tool can be accessed from the portal of the employees. Software can track record regarding the performance of the employee. Employees compensation scheme, bonuses are managed by the software (Al-rabei et al., 2015).
Manual data entry has some risks of wrong entry or likelihood of similar entry. In case of automated process, data is entered manually and thus reduces the chances of error. Moreover, if mistakes occur during data entering process, the mistakes can be identified easily by using the functions of the software. Hence, this system driving process is more efficient compared to a manual process and can improve efficiency of the HR department of Everstar engineering & services pte ltd (Ankrah & Sokro, 2012).
Everstar engineering & services Pte Ltd can implement the enterprise resource planning software for human resource management. Use of ERP software saves time for each task of HR department including administrative tasks and lowers the cost of operation by deploying self-service applications (Llego, 2015). This software has several sub-systems such as employee management, organisation management, employee payroll management and personal development.
In order to implement the application of the software, the employees and the HR personnel need to be trained. They need to be aware about the advantages of the use of the software. The personnel management system includes data base, recruitment and salary administration. Organisational management system includes organisational structure, staff schedule and job description. Another important sub system is the payroll management, which comprises of salary management, report preparation, managing attendance for the calculation of salary. Time management sub division includes time recording, leave management such as emergency leave, casual leave or sick leave (Al-rabei et al., 2015). Management of Everstar engineering & services Pte Ltd can include personal development segment, which includes training and event management, training assessment.
Figure 2: HR software implementation plan
(Source: Ankrah & Sokro, 2012)
Everstar engineering & services Pte Ltd needs to implement ERP software in the organisation to bring efficiency in its human resource management. Therefore, this company has to make provision in the annual budget regarding investment in the human resource information system. In order to work with the system, the HR personnel of this organisation need to have knowledge to use this. The EP system generates a report regarding an employee’s profile. This report helps the HR personnel to take decision about the employee’s performance appraisal. This company is recommended to install centralised ERP system, which links different department of the organisation and stores data in a single database. HR person can easily access those data whenever required.
Conclusion
This report analyses the importance of the use of software in Everstar engineering & services Pte Ltd, Singapore. Human resource management software reduces the pressure of the manual tasks of the HR department. The HR software facilitates the organisation in two aspects such as HR and Payroll. The report has analysed the changing nature of human resource management. With the changing business nature, the human resource management has become complicated. HR software helps the company to utilise the workforce fully and efficiently. Workforce’s skill, talent and experiences are managed by the HR software. The report has discussed about the software implementation plan regarding employee recruitment, training and payroll management.
References
Abdulah, N. H., Wahab, E., Shamsuddin, A., & Abdul Hamid, N. A. (2013). Acceptance of computerized payroll system among SMEs’ managers using technology acceptance model.
Al-Dmour, R. (2014). An integration model for identifying the determinants of the adoption and implementation level of HRIS applications and Its effectiveness in business organisations in Jordan (Doctoral dissertation).
Al-rabei, A. M., Taber, T. A. A., Alaryan, L. A., & Haija, A. A. A. (2015). The Role of Accounting Information Systems in enhancing Human Resources Management Cycle in Jordanian Islamic Banks an Empirical Study. Australian Journal of Basic and Applied Sciences, 9(20), 437-441.
Alshamaila, Y., Papagiannidis, S., & Li, F. (2013). Cloud computing adoption by SMEs in the north east of England: A multi-perspective framework. Journal of Enterprise Information Management, 26(3), 250-275.
Ankrah, E., & Sokro, E. (2012). Human resource information system as a strategic tool in human resource management. Problems on Management in the 21st Century, 5, 6-15.
Everstar.sg. (2016) About Us – Everstar Engineering & Services Pte. Ltd – Fabrication, Thermal Insulation, Engineering Services. Everstar.sg. Retrieved 2 November 2016, from https://www.everstar.sg/aboutus.html
Hota, J. (2012, March). Implementation of ERP SaaS option for HRIS reporting practices. In International Conference on Technology and Business Management, Dubai.
Kumar, N. A., & Parumasur, S. B. (2013). Managerial Perceptions of the Impact of HRIS on Organizational Efficiency. Journal of Economics and Behavioral Studies, 5(12), 861.
Llego, B. (2015). The Relationships between Human Resource Management and Entrepreneurship: Case Study SME in Thailand. World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 9(12), 3954-3958.
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Pande, S. (2015). Human resources information systems in SME’s. SMART Journal of Business Management Studies, 11(1), 52-69.
Sajid, M. A., Batool, Q., Rehman, J. H. U., & Hanif, A. (2014). The Trends and Developments of Human Resource Information System: A Case of Azad Jammu & Kashmir Public sector. International Journal of Innovation and Applied Studies, 9(3), 1180.
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