Human Resource Management Systems and Practices in Singapore
How can HR management systems and practices in Australia (or your home country, Singapore) be re-designed using KM and OL principles to increase innovation and competitive advantage over the next five years? Discuss this in relation to one or several aspects of HRM – Recruitment and Selection, Training and Development, Performance Management and Rewards, Succession Planning, and Strategic HRM.
HR management system and practices are defined by the role and duties performed by the HR practitioners and the departments in the organisation. In a broader sense, human resource management system consists of human resource activities. HRMS means combining the efforts of human resource information and technology to conduct human resource activities. It influences certain aspects of the organisation such as ‘organisational efficiency and effectiveness’ as a good HRMS brings consistency in the operations. An effective management system focuses on the strategic importance of the organisation, improving and enhancing employee skills, motivation, and contribution opportunities. Thus, emphasising the role of HRMS, it contributes towards attaining organisational effectiveness in different ways. The other positive aspects of HRMS include increasing and sustaining the employee commitment in the organisation (Cohen, 2015).
To ensuring employee commitment and productivity, an organisation needs to recruit and select employees effectively, provide intensive training and offer an optimum level of compensation to sustain them in the organisation. In addition, HRMS focus towards promoting employee involvement and empowerment in the decision making of the organisation. Moreover, occupational safety is the major concern of HRMS because it affects the employee morale and motivation to work and influences their productivity (Kreissl, 2017).
As organisations around the globe face varied complexities and challenges due to the integration of world economies or globalisation, organisations seek to gain a competitive advantage for the next five years through the implementation of HRM practices. Personnel can develop leadership by introducing an effective training course and motivational programmes through these ways. HRM (Human resource management), in any developed nation like Singapore, includes aspects which are recruitment and selection, training and development of employees, performance appraisal, and strategic HRM as the key performance indicators (What is human resource, 2018).
The trends of HRM in Australia have been recognised as individualistic. An increasing use of flexible working practices, and the implementation of performance appraisal and reward system. The other policies and systems were established career planning methods, career break schemes, targeting the older workers for their betterment. The government of Singapore mainly focused on improving the productivity, which includes the improving productivity, developing the incentive pay systems and performance appraisal (Kramar, 2012). Singapore used extensive methods or procedures of employee selection and assessing the employee performance in their organisations. HRM practices or functions in Singapore provided that the employee selection, firms were centralized towards using sample tests and interviewing people in large numbers, especially the line managers. The firms in Singapore stated that they had a formal system of performance appraisal and were focused towards using MBO appraisal system, job evaluation system, wage surveys, The Hay method, and others. Singapore is one of the largest markets for the HRMS and the success of an economy depends on a number of factors for attaining the competitive success. In order to increase innovation and sustain the competitive position in the market, the traditional methods of HR practices can be upgraded to bring effective results (HRMS Singapore, 2016).
Use of KM and OL Principles to Increase Innovation and Competitive Advantage
Innovation in any organisation has become a key to achieve competitive success. The introduction of KM and OL principles facilitate increasing innovation and success in the future. Thus, innovation is a process based on knowledge to design new products, and services towards achieving competitive advantage for the next five years, there should be proper implementation of HR practices (Baquiano, 2012). Knowledge management refers to the process of creating, sharing, and systematically manage the knowledge and assets of the organisation for meeting the tactical and strategic requirements. The ability or the capability to learn and exploit opportunities faster than the competitors in the market is likely the way to sustain in the global business environment. Therefore, it put focus on the other aspect, OL (Organisational learning), the process to create, retain, and transfer the knowledge within the organisation. Improvement in the functioning and performance of the organisation progresses with the time and experience; as experience brings more knowledge and learning. A business that has the knowledge and is able to create and sustain new knowledge through continuous innovation and advancement is likely to prosper and attain competitive advantage. The principles of KM and OL relates to HRM help a firm or the economy to sustain competitive edge for the longer period; as knowledge is a human act and it belongs to communities (Knowledge Management Tools, 2018).
Human resource department in organisations handle the data in high volumes and the data and the update can be managed efficiently knowledge management systems. For example, organisational learning can be understood as ways to increase production efficiency, by teaching or training workers to introduce new methods of working. It occurs as a function of learning and the KM and OL both can be implemented in Singapore to change or redesign the traditional methods or HR practices. One of the models can also be used is the KM matrix (Gamble and Blackwell, 2001).
(Source: Knowledge Management Tools, 2018)
The KM process includes a series of activities; firstly, the business should locate the source of knowledge. Then the management must organize the knowledge in order to assess the firm’s strengths and weakness and determine the relevance and usability. Then, a further process is followed by socialization, where it uses various techniques for increasing innovation, which can be executed by the companies in Singapore.
In order to tap the resources essential to the success of the organisation that further leads to innovation and success in the industry it requires effective HR practices. The companies in Singapore would need to frame and redesign the HR management systems and practices to attract, recruit, select, reward, and retain knowledgeable and effective workers. Singapore has the competitive and dynamic or unpredictable environment, due to which the traditional methods of hiring needs to be revised. Traditional method can hinder the pathway to knowledge sharing between communities and departments (Ritala, Olander, Michailova, & Husted, 2015). The recruitment and selection in Singapore state that there were no statutory formalities in relation to the selection of job applicants for the employment. In addition, a person or employer who wishes to employ a job applicant who is not the citizen or permanent resident of Singapore has to apply for a ‘work pass’ to seek permission to work. Therefore, the HR department should use social recruitment methods to bring innovation in the hiring practices (Gravili, & Fait, 2016). According to the two phenomena, knowledge management, and organisational learning, workers need to have both aptitude and attitude towards the job. Organisational learning which includes enhancing the communication skills and developing their willingness for knowledge sharing (Learning for sustainability, 2018).
Recruitment and Selection
The satisfaction level of the performance of an employee in the organisation depends on the qualities, skills, and abilities that can be enhanced through training. Training and development is a key HR function, so every organisation considers it as an integral part of the working. The training could be provided with respect to the job that leads to the professional development of the employee over time. Therefore, Singapore should focus and invest time, money, and efforts towards the training and development of their staff, to increase future benefits. HR management system and practices to be redesigned by making changes in activities in the organisation after making a thorough need analysis and targeting certain competencies (Kaufman, 2015).
Effective training programmes such as ‘on the job’ and ‘off the job’ methods should be used; which includes introducing different learning courses and opportunities. The learning can take several forms, action learning that means the workers need to identify the problems and develop solutions. Efficient and effective training and development can increase innovation and competitive advantage through knowledge management and organisational learning (Business Jargons, 2018).
Performance management identifies those activities ensuring that the goals are accomplished efficiently and effectively. Performance management can emphasize on the performance of an employee, department, organization, or even the processes, which produce goods and services. The individuals in the organisation measured more for their skills, talent, and performance, which become a basis for rewards and incentives to be given to employees in the organisation. Singapore should modify their strategies through the implementation of KM and OL principles performance can be improved, as knowledge tends to bring new ideas of working which ultimately increase the productivity. Moreover, knowledge and learning tend to improve and revise the standards set for the employee, which motivates them to work hard as they feel involved in the affairs of the organisation (HR Council, 2018).
In turn, the motivated and knowledgeable workforce will sustain in the organisation and it will help the company achieve a competitive advantage over others. There are certain performance management practices such as periodic reviews every year or on a quarterly basis with necessary feedback is essential. Along with goal setting helps, it sets the organisational expectations for the organisations as well as individuals. The use of a scorecard for measuring and managing performance ensures the proper implementation of KM and OL practices (Valmohammadi, & Ahmadi, 2015).
Succession planning refers to the process, through which the individuals are evaluated to pass on the role of leadership in the organisation. It is specifically termed as management succession planning. It is initiated through the coaching and other development methods of looking for the prospective successors or people within a firm or from outside. Here, new leaders replace the old when they retire or die. In businesses, succession planning aims to enhance and increase the potential of employees to fill key leadership positions in the company. Companies, which do practice successful succession planning, view it as a development versus replacement process. When there are analytical openings in the organisation, the management prepares to fill the positions with the skilled, talented, and experienced internal candidates. As succession planning employs new people, therefore, the organisation explores the capacity of the individuals; also, it enhances the productivity and acts as integration for sustainability. There is a link between the succession planning and other talent management processes such as rewards, recognition, and staffing. Enhancing the knowledge and concepts through knowledge management and organisational learning, succession planning leads to increasing innovation and competitive success in the industry (Strategic talent solution, 2018).
Training and Development
A strategic human resource refers to the practice of attracting, developing, rewarding the performance, and retaining employees, for the advantage of both the individuals as employees and the organization as a whole. Strategic HRM (human resource management) means a strategic look at the HR functions and practices of the organisation. The strategic framework identifies opportunities and threats of the organisation, thus helps in assessing the environmental impacts. After the SWOT analysis, the strategies formulated is then implemented that assist in aligning the HR practices to build capabilities, which results in the achievement of the organisational goals.
Strategic HRM is significant to every organisation as it allows identification of opportunities, minimising the effects of adverse change and conditions (Donate, Peña, & Pablo, 2016). In addition, it integrates the behaviour towards the goal and helps decision-making. KM specifically focuses on the attainment of organisational objectives such as productivity, competitive success, and innovation. KM (Knowledge management) overlaps the organisational learning and helps in the implementation of HR practices strategically. Hence, implementing the efficient and effective strategic HR practices in terms of staffing, compensation, and training, participation, and performance appraisal firms would improve the capabilities. It will then leads to an increase in innovation and ensure competitive advantage of the firm or the company over others (Taylor, 2014).
The traditional method of recruitment of employees should be modified and effective hiring practices such as ‘Social recruitment’ is more than just posting current vacancies about a job position on the company’s social network account or site. Social recruiting involves the using social media tools such as (Facebook, Twitter, and LinkedIn) and through the websites (blogs, forums, job boards, and others). Social media helps to proactively search for the candidates.
Conclusion
To conclude the above analysis of the HR management system and practices, in Singapore it has been analysed that the HR practices are integral to the success of any organisation. The hiring practices in Singapore lack innovation and effective competitive position among others. Integrating the practices and the practices of knowledge management (KM) and organisational learning (OL), assisted in modifying and redesigning the traditional methods of hiring employees in the organisation. The HR practices as recruitment, selection, training and development, performance management and rewards and succession planning. There are some suggestive practices of hiring which when implemented will result in effective recruitment, increased innovation, productivity and improved organisational performance. Inculcating the culture of creating and sharing knowledge contributes to integrating the efforts of individuals in the organisation towards a common goal. HRMS (human resource management systems) in every business organisation plays a significant role by integrating technology and information through effective implementation of HR practices
References
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