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Tuesday, 11 October 2011

#4 : Topic 3 : Globalizing HRIS


It is becoming more important and critical to the organization as the area of HRIS becomes more strategic and more global. There are three types of HRIS Organizational Model. These are Multinational, Global and International. While, Translational Model has three components that needed to be emphasized too. These components are Global Efficiency, Local Flexibility and Innovation or Sharing.

First, Multinational Model is being sensitive to local needs and also to individual cultural and national differences. This model lacks on focusing on centralized corporate direction. The advantage of this model is suitable for huge branches or conglomerates because centralized or decision making is little benefit to acquire. However, the disadvantage of this model is numerous head of departments will have a hardship to communicate and coordinate with each other and it leads to re-invention. Re-invention means there is no improvement because they are not sharing information among themselves.

Next, Global Model focuses on managing and implementing HRIS by building a single, standardized and centralized system. A uniform global operating environment is seen by firms as the driving force. This model is suitable for firms which are providing a single standardized product or service such as Microsoft and Celcom Axiata. Thus, it will reduces overall costs. But, Global Model inclined to force diverse operating units into such rigid structures that they revolt.

The last model is International Model. This model allows local to control decisions, assets and responsibilities. The advantage for this model is easier to transfer and adapt of knowledge and expertise to other business units from any country that develops it to local firms. Furthermore, this model is suitable to be implemented in new companies or new comers. Anyhow, it creates a situation where neither corporate nor local needs area adequately met.

The Translational HRIS Model treats regional business units as distributed resources. This model is benefit for massive and multinational cultures with under significant competitive pressures. Thus, it leads to this model to respond effectively to the demands brought by Sturmund Drang of the Digital Age.

The first component of this model is Global Efficiency which it is need to leverage best practices and technology from around the world. An integrated and interdependent network of HRIS knowledge, resource and expertise should be build. The integrated network provides cost efficiencies and increases a rare group of technical and managerial resources. The example of HR functions that benefit from this model is pension program management.

The next component is Local Flexibility which is a uniform treatment of foreign operations. It is an obstacle to structure the flexibility and responsiveness that HRIS needs today. We need to legitimize diversity and also appreciate multiple perspectives to be responsive to local needs. Competency management and financial incentives are two examples of HR functions that benefit from Local Flexibility.

The final component is Innovation or Sharing. We should have a strong commitment towards learning and sharing in the organization. Innovation is not only about in our products and services, but it is also innovation in our organization and processes. Some examples of HR functions are business process design and product or service development.
                                                                        
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reference :

1.   Beaman, K. & Walker. A. J. (2000). Globalizing HRIS: The New Translational Model. IHRIM Journal.

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