The Internet. E-Commerce. E-Business. Start-up. 24/7. Virtual Organisation. Over the last few years the digital economy has mushroomed, enveloping almost every aspect of the business world. This has brought about an immense shake up in the way things are been done, with far reaching implications across business functions from legal to financial, sales to procurement and customer service to operations.
The field of Human Resources has not been spared from this technological onslaught. This gives rise to questions on how human resource professionals can best use technology to continuously improve the business practices which are necessary for sustained competitive advantage. With companies constantly striving to cut the costs of production and, at the same time, increase output, the focus of HR managers has moved away from administrative support towards making a significant contribution to the bottom line. This shift in emphasis has been reflected in the way that the discipline is addressed: first we had 'Personnel', then came 'Human Resources', now the trend is towards 'People Management'.
There is little doubt that, whatever you call it, the function has the potential to add tremendous value to a business. There are those who argue that, in an age when innovations are easily copied, a company's human resource could be their only resource. Finding and retaining the right people can make the difference between being a market leader or an industry loser.
Unfortunately, instead of playing a pivotal role in strategically managing this critical resource, many HR practitioners find themselves marginalized, cut off from business decisions. The upper echelons of management often view them as administrators, rather than business partners. This leads some to the simple, but dramatic, conclusion: HR must change or die. More realistically put, now more than ever, professionals in this field must rise to the challenge of showing their real value to the growth of an organization or be content to remain the corporate administrators, possibly finding their role diminished further through the use of outsourcing.
With this in mind, Interactive Access will be featuring a series of articles aimed at helping the HR Manager grapple with new technology and new ways of streamlining functions. Over the next five issues, we'll be looking at the impact of E-Business on: Recruitment and Manpower Planning, Culture, Training and Development, Remuneration, Rewards and Appraisals, and The Administrative Function.
These articles do not intend to provide all the answers, but instead to provide a platform for thought-provoking discussion. We aim to navigate the E-Business maze, guiding the HR practitioner along the B2E (Business to Employee) path. Through this examination, we hope to cut through the hype and provide some practical pointers to developing an E-Business strategy.