Report on HRIS systems in Aramex


CONTENTS
Introduction 2
Terminology 2
Human Resources Management Functions 3
Recruitment & Selection 3
Compensation Practices 3
International Human Resource Management 4
Human Resource Information System 4
International Human Resources Management 5
Recruitment and Selection 5
Compensation Design 5
SAP & Human Capital Management 6
Impact of Online Recruitment and Selection on HRM 6
Online Job Sites 6
Company Web Sites for Recruitment 7
Use of Social Networking Sites for Recruitment 7
Aramex & HRIS 7
Strategic Situation 8
Requirement for HRIS 8
Recommendation 8
Bibliography 9

INTRODUCTION

An organization can be compared to a body and the element that forms the structure of this body and the element that also performs the functions are the people of an organization. As it is required to manage processes, activities and the funds of an organization, it is also crucial to manage the people of the organization. The people working in the organization are considered as the assets of a form and thus they are termed as human resources. They are the flexible resources of a firm which need to be managed, sustained and improved over time and there is a separate department in every organization which manages these resources in the firm.
TERMINOLOGY

Human resources management can be termed as a critical and systematic viewpoint towards managing the organization’s people who strive towards the achievement of organizational goals.
The role which is played by human resource managers in achieving the organizational goals can be termed instrumental. The role of the department of human resource is to help the organization in the matters of human resources. Human resources is critical to company success. The human resources department also provides assistance in optimizing the resources of manpower by training and ensuring a quality workforce by effective staffing.
Human resources has an impact even on the primary systems and business processes in an organization. Human resources management is also important for cultivating a strong and healthy culture in an organization. The output of efforts in the cultivation of the culture can be witnessed in the emergent values in the organization which help sustain and drive an employee force. The human resources department is also required to maintain the important functions of an organization developed to serve the employee’s purposes and needs like salaries, insurance, retirement fund, etc.
HUMAN RESOURCES MANAGEMENT FUNCTIONS

The list of human resource functions observed by organizations are:
• Recruitment and Selection
• Promotions
• Employee Benefits
• Compensation
• Performance appraisal review and processing
• Training & Development
• Employee Incentives
• Compliance
• Terminations

RECRUITMENT & SELECTION

It comes under the duties of the human resources department to find the right people for the organization. The department does it through placing advertisements, interviewing candidates, and finally assigning the selected candidates an appropriate positions. The processes of recruitment and selection fall under the function of staffing. HR managers and line managers are both involved in the recruitment processes so that a varied level of factors are considered before hiring an employee. Recruitment is becoming increasingly important with time as it is instrumental in getting a competitive advantage for the organization. Reliable selection methods and rigorous analysis should be applied in selection as it is the last process in staffing.
COMPENSATION PRACTICES

The compensation practices are a part of rewarding people in the organization. It is a crucial process in which there are strategies and policies regarding how to remunerate the employees of the organization and how to effectively motivate and help the employees through compensation. There are various forms of compensation in an organization and it differs from organization to organization. Basic pay is the primary form of compensation which is followed by many types of incentives. Contingent pay is given when an employee reaches a predefined performance goal. Employee benefits include extra cash pay, bonuses, allowances for fuel and other requirements, and medical insurance which has become a widely popular incentive to the point where it is mandatory for many firms. (Armstrong, 2006)
Aramex observes a strict compliance to labor laws and provides the denoted minimum wages as well as overtime payments when applicable. Needless to say the employees get a standard satisfactory pay-scale according to market standards. There is also a salary increment of 5-10% on an annual basis which relies upon the performance of the employee. (Aramex, 2006)
INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Managing organizations in a globalized environment has become a quintessential necessity. Every function of business witnesses a drastic change when an organization is spread throughout various countries. The factor of diverse market conditions, diverse economies and cultures comes into the picture while managing an organization. Managing human resources in an international scenario means that the employees working in the MNE might belong to different cultures, work-environment, religions, and nationalities. That is a difficult task the manager has to be informed about their background and help the new employees in adjusting to a diverse work environment. The diverse qualities of the employees coming from different environment can be utilized in a creative and productive way. (Schuler, 2000)
HUMAN RESOURCE INFORMATION SYSTEM

The advent of usage of information systems in human resources management has been on the recent major changes. Professionals have been known to use information systems for enhancing productivity. By using information systems, they aim to add value to the organizational environment. The involvement of information systems can be beneficial in development of many critical HR functions. (Thite & Kavanagh, 2009)
INTERNATIONAL HUMAN RESOURCES MANAGEMENT

International human resources is a diverse area of processes. Information systems can help in providing location specific data and tracking options to serve organizational needs. HRIS can be effectively utilized for tactical and operational decision making, to evaluate policies and effectiveness of training programs, to document the attendance of employees and to avoid litigation which can all be maintained and observed from anywhere in the world through HRIS. (Bal, Bozkurt, & Ertemsir, 2012) This level of involvement of HRIS indicates that the report generation is done accurately and on time even through a cetral location for sub-branches throughout the world. (Hussain, Wallace, & Cornelius, 2007)
RECRUITMENT AND SELECTION

In the process of recruitment, it is critical the data pertaining to it be collected, analyzed and stored in an accurate manner and HRIS is instrumental for that purpose. The advertisement for the opening of a position can be given throughout online job portals. The applications which contain resumes can be screened by the HR manager without receiving them first-hand with the help of HRIS. The candidates can be interviewed online and intricate exercises can be hosted in order to pick the best candidate. (Hussain, Wallace, & Cornelius, 2007)
COMPENSATION DESIGN

HRIS has been found to have a greater emphasis on the traditional activity of compensation through tracking and managing compensation of employees. Current studies show HRIS to also focus on the formation and changes in the compensation design for the employees of the organization through effective deployment of information systems and a compensation management system operated centrally. (LAWLER & MOHRMAN, 2003)
SAP & HUMAN CAPITAL MANAGEMENT

SAP is a German company that produces business suites which contain enterprise software packages for business solutions. SAP produces modules built for all business areas like HR, finance, sales, distribution, manufacturing, etc. It can be recognized as an ERP software package.
The module for human capital management is a part of enterprise resource planning. It handles employee records and has structure which automates several basic and complex HR functions. The HR services like managing employee benefits, payroll and compliance are automated through the HCM module of SAP ERP. This modules has proved to be a success due to the advent of cloud data storage technology. It is a great tool for MNEs for tracking their workforce. The most important function of HCM module is payroll management which is processed and stored efficiently and ensures smooth functions. Along with that, the module also contains the functionality to update compensation designs. (TechTarget, 2014)
IMPACT OF ONLINE RECRUITMENT AND SELECTION ON HRM

The advent of information systems has made an impact on even the HR functions through facilitation of accurate and timely records and an easy manner of recording employee data. The process of recruitment and selection has functions like advertising, giving invites, screening etc. which were done earlier through traditional methods.
ONLINE JOB SITES

The function of recruitment has seen a sizable change in its execution. The functions like advertising for jobs is now done through online job sites which act like a portal connecting the companies and the individuals searching for a job. The individuals upload their resumes for consideration with details which helps the companies search for the individuals with the desirable credentials and sends them invites for an interview. The entire function of recruitment can be managed through online job sites.
COMPANY WEB SITES FOR RECRUITMENT

In certain cases, the company doesn’t contact the employees on their own but leaves an option of contacting a company through their website. This is done by forming a link of “Careers” or “Work for us” on their websites and the individuals willing to work have to go to their website and follow the procedure for setting up an interview. This is an option for shifting the recruitment process online through the use of information systems.

USE OF SOCIAL NETWORKING SITES FOR RECRUITMENT

The advent of social media and its reach in the current period of time has led to the organizations turning to social media for recruitment process. These websites provide good communication channels and tools for effective communication like video calling for an interview. Even the screening process can be done through social media but the risk lies in excessive information which is not necessary for screening a candidate which makes the evaluation process lengthy. There is a need for modifying the content and privacy on their profiles for a company as their profile is screened by the companies for evaluation. (Quast, 2012)

ARAMEX & HRIS

The focus of the current research is to study the department of human resources in Aramex which is an organization that provides logistics and transportation solutions. The specific focus is to be laid on the functions and role of human resources information systems in the organization. As it an organization providing logistics, and transportation, it has a large pool of manpower under its wing and it needs a comprehensive human resources department to manage that manpower. There is need for an analytical approach over the human resources department in Aramex in order to gain an insight of its structure, performance and skill in managing their human resources.
STRATEGIC SITUATION

Aramex is currently following a multifaceted strategy for growth. Aramex is planning to step into emerging markets for expansion in the global network. It aims to become one of the top five logistic companies in the world. In 2011, Aramex concluded acquisitions in South Africa, Kenya, and Ireland. Aramex also has a comprehensive franchising strategy under which they provide a global service to firms through a global network, IT systems and branding. Their investment in infrastructure and technology for enhancing growth is also commendable. They also extend their support to entrepreneurship and e-business for propagating trade growth. (Aramex, 2014)
REQUIREMENT FOR HRIS

Aramex is a large multinational firm providing logistics and transportation service. This indicates that they have a requirement for keeping extensive logs of clients, destinations, and also the large no. of employees in the company. As it is a multinational company, in order to track the progress of branches and franchises in other countries, there is a dire need for professional enterprise solutions. Due to their reach in various country and the nature of work requiring large pool of employees who supply the goods to clients and the drivers involved in the transportation process. For tracing their payroll and other compensation related items, they need a tracking system.
RECOMMENDATION

SAP ERP modules are known to be used by various MNEs and it would be efficient if the Aramex adopted their module for human capital management for managing payroll systems. Aramex can also use the human capital management module for modifying and applying new compensation schemes for employees in every branch across the world. Its application throughout their branches and franchises throughout the world, they can efficiently track employee progress, provide incentive according to need and ensure an accurate record of employees.

BIBLIOGRAPHY
Aramex. (2006). Aramex Sustainablity Report. Aramex.
Aramex. (2014). Code of Conduct. Aramex.
Armstrong, M. (2006). Handbook of Human Resources Management Practice. London: Kogan Page.
Bal, Y., Bozkurt, S., & Ertemsir, E. (2012). THE IMPORTANCE OF USING HUMAN RESOURCES INFORMATION SYSTEMS (HRIS) AND A RESEARCH ON DETERMINING THE SUCCESS OF HRIS . Management, Knowledge and Learning (pp. 53-62). Turkey: Make Learn.
Hussain, Z., Wallace, J., & Cornelius, N. E. (2007). The use and impact of human resource information systems on human resource management professionals. Information & Management, 74-89.
LAWLER, E. E., & MOHRMAN, S. A. (2003). HR AS A STRATEGIC PARTNER: WHAT DOES IT TAKE TO MAKE IT HAPPEN? . California: Center for Effective Organizations.
Quast, L. (2012, 5 21). Recruiting, Reinvented: How Companies Are Using Social Media In The Hiring Process. Retrieved from www.forbes.com: http://www.forbes.com/sites/lisaquast/2012/05/21/recruiting-reinvented-how-companies-are-using-social-media-in-the-hiring-process/
Schuler, R. S. (2000). The internationalization of human resource management. Journal of International Management, 239-260.
TechTarget. (2014). A guide to SAP HR management. Retrieved from searchsap.techtarget.com: searchsap.techtarget.com/essentialguide/A-guide-to-SAP-HR-management
Thite, M., & Kavanagh, M. J. (2009). Evolution of HRM and HRIS. In M. Thite, & M. J. Kavanagh, Human Resource Information Systems: Basics, Applications, and Future Directions (pp. 3-24). California: Sage.

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Posted on

March 7, 2018

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