What is the role of HRIS software in the strategic HRM? Human resource management is an integral part of an organization’s strategic management and must be implemented complementarily. On the one hand, personnel strategy can set the direction of the organization as a whole, but on the other hand, it should be created so that the key objectives of the company can be achieved. The asset that determines the level of competitiveness of enterprises is human capital. However, in order to be able to achieve a competitive advantage, it is necessary to have an adequate personnel policy based on a solid strategy. The HRIS platform, which greatly facilitates the implementation of HR-related tasks, especially workforce planning, recruitment, adaptation, process control and analysis, is also not without significance here. Read on to find out more.
What is the role of HRIS software in the strategic HRM? – table of contents:
HRM and a business strategy
Human resources management is a strategic and coherent approach to the management of the most precious asset of the organization, namely people. In other words, it is a staff management strategy designed to reach a competitive advantage, using several techniques. The main factor that has an influence on HRM is a business strategy, which in turn, affects decision- making in terms of objectives, policies and action plans.
Speaking of strategic HRM, it should be understood that it is management through planning, a pattern of sequential activities and coordination of the company’s resources in such a way as to exploit strengths and limit weaknesses. Strategic HRM is a coherent configuration and compilation of activities based on long-term goals, formulating principles, plans and action programs that determine the creation and adequate use of human capital, in order to achieve the aforementioned competitive advantage.
A relation between personnel management strategy and a business strategy is a key issue that determines the answer to the following question: How does a HRM strategy contribute to the fulfillment of business goals? The answer isn’t that obvious due to various approaches connected to building a business strategy. Richard Whittington distinguished four generic perspectives on strategy:
- Classical – creating a business strategy is a conscious process based on the analysis of the external and internal environment of the company that allows you to make long-term decisions.
- Evolutionary – formulating a flexible strategy that adapts to changing external conditions, aimed at maximizing profits.
- Systemic – based on many goals that enable the implementation of the strategy, while taking into account elements of the social system.
- Processual – building a strategy in small steps due to the unpredictability of the environment, as well as the multiplicity of long-term goals, assuming that the strategy can’t be planned in advance.
Shaping of human capital should be based on the dependence between a general business strategy and a HRM strategy. Here, we can talk about three different approaches:
- Reactive approach – aligning the HRM strategy with the overall strategy of the organization. Classifying employees as a source of costs.
- Active approach – perceiving human capital as a source of competitive advantage, which should be the determinant of the overall strategy.
- Interactive approach – assuming that business and personnel issues interwine.
Not attempting here to resolve the superiority of one approach over the other, it is worth noting that in the vast majority of companies the relationship between corporate strategy and personnel strategy is permanent and inseparable.
Challenges for strategic HRM
In order to implement strategic human resources management correctly, it is necessary to realize and define factors that may hinder the execution of long-term action plans in relation to personnel policy. The basic obstacle is too high concentration on the current business goals and poor management skills.
Another issue is the low evaluation of the human resources and not perceiving people as the organization’s most valuable capital, and thus poor people management, improper work efficiency measurement and resistance towards the implemented changes.
Strategic problems that result from the aforementioned factors and appear in human resources management are, above all, optimization of employment level and structure, building a competence matrix, shaping of appropriate organizational structure, implementing an effective incentive system and developing individual career paths. HRIS software is a tool that will significantly reduce, and even eliminate these problems.
HRIS vs. HRM
HRIS, or human resources information system, is software which greatly affects the effective implementation of personnel policy. Personnel management becomes much simpler thanks to many functionalities of this program, and above all, thanks to the analytical module, which allows you to study performance indicators, analyze, report and conduct statistical analysis.
What is more, it is a kind of employee database thanks to which it is possible to make adequate personnel decisions on training and professional development. Supporting strategic personnel management with this system brings measurable benefits to the organization, such as:
- an increase in work efficiency and quality through process automation,
- an increase in employee’s competencies thanks to an effective training system and adequate professional development,
- cutting red tape and the number of documents issued manually for the sake of online documents (without having to print them), reducing administrative costs,
- taking the right personnel decisions as reports and analyses are updated on a regular basis,
- building a transparent appraisal system and helping management produce highly effective performance reviews.
Strategic HRM – summary
HRIS software dedicated to human resources management is an undoubtedly useful tool for personnel managers. Strategic HRM is inextricably connected to introducing technical, material and mental changes in an organization. Proper implementation of personnel strategy will be greatly determined by the HRIS platform.
The functionality of the system lets you have transparent personnel policies, showing employees all the connections between their knowledge, work efficiency, remuneration and promotion opportunities. What is more, it makes it much easier for regular employees to carry out their basic tasks, and for managers to achieve strategic goals.
Read also: 9 effective ways to recruit employees.