Managing Processes, System and Project
3. Part 1: Analyzing the Current Issue
As per MPSP (Managing Process, Systems and Projects) Module, problems of work force diversity management are studied through IPO (Input-Process-Output Process). Major parts of the system are identified by using a questionnaire analysis of employees of the company.
3.2 Operational Context
Delivering Goods and Services: A process Systems approach
This is the 1st section of MPSP module- Intent. Questionnaire for the analysis are mentioned as follows:
- The change in percentage of employees over a period of five years
- The change in diversity level of the organization
- Infrastructural progress shown by the company in business in the recent past and the investment the company made while managing the workforce for suiting the increased size of business
- Percentage of process automated
- How is workforce diversity managed
- How far the company follows the processes of career development and training
- To what extent is the company satisfied with the employees?
- Are the employees satisfied with company’s HR policy?
- Increment in percent of employees: Huge
- Diversification in Employees: Quite Large
- Infrastructural Progress: Medium
- Investment of Company: Medium
- Percentage of process automation: Quite Small
- Workforce diversity management: Bad
- Training and Development: Huge but disorganized.
- Native Training: Huge
- Employee’s satisfaction with the company: Small
- Company’s satisfaction with the employees: Medium
50 employees of the company have been selected and the total response centered on the Likert scale of 5 was selected. The conversion from the responses collected displays the following results:
3.4 Formulation of Operations Strategy Matrix
The first step in operations strategy is employer satisfaction in workforce diversity management. Once we analyze the dimensions to which factors need to be compared, we can easily make the following operational strategy in this context:
From the level of scores given on this matrix, one can easily compute the need of automation of the workforce diversity management. The scores will provide the criteria of relationship between the problems, the areas of concern and all the possible strategies that should be evaluated to deal with them. The following table illustrates the current position of the company with the problems and areas of concern in rows and possible operational strategy to be used to fight them in columns (Sippola, & Smale, 2007).
From the above operational matrix relationship table established, we can visualize that for all the factors which are believed as important for efficient workforce diversity management. Automation has only been able to give high positive correlation. The reason for this can also be seen in the form of success that automation in the payroll system has shown to the company in the recent past. According to Reichenberg (2001), on effective observation of the employees, it has been found that people are highly content with the automation followed in payroll system. This success of the system is one of the reasons why all the factors required in workforce diversity can be solved through automation in workforce diversity management as per the employees of the company.
3.5 Automation of Human Resource Development Function:
Automation of Human Resource Development Function for the process of implementing a full-fledged ERP system is very essential. A sound foundation is essential to compete in the global marketplace and win positions. SAP ERP application supports all the essential functions of the business processes and the operations professionally and is custom-made to specific needs according to the industry as well. Meeting today’s challenges in finance that industries encounter is the purpose for creating SAP ERP Financials. Allowing industries to be specific, global and scalable – SAP ERP Financials lets your teams to analyze changing financial reporting standards, manage financial risks and improve cash flow.
3.6 The Process of Operation Strategy and Strategy Formulation
It has also been understood from the observation and questionnaire responses of the employees collected that, in telecom sector, human resource stands high on all the 4Vs that had been mentioned in the previous section. In fact, the basis of automating any process stands on the pillars of the 4Vs. When the level of these 4Vs gets relatively large, it becomes necessary that automation has to be done to control the situation.
The above table indicates that for all the 4Vs related to human resource in the company, the level is substantially large for it to be handled manually. The description of the same can be seen as follows:
3.7 Process Profiling-Four Vs
Volume The volume of employees required to control the company’s operations is also huge. This is also verified from the results of the questionnaire hence making the 1st V of the 4Vs highly relevant. With high volume, there would be a number of areas to handle. Hence comes the major question of whether the company can afford to deviate from its organizational goal of profit maximization for satisfaction of the employees or not. In most of the cases, the answer would be yes. The company would have to look to employee satisfaction even if it has to deviate from its organization goal. When huge volumes are to be handled, this becomes obvious. The only conditions under which the company would not have to deviate from its organization goal and yet be able to manage the huge volume of employees, could be through a dedicated automation of workforce diversity in the company (Thorpe, & Beasley, 2004).
Variety Looking at the conditions wherein such huge volumes of employees come, with 80% of people coming from different countries, manual handling of the employees again requires deviation from the organization goal (Sub, & Kleiner, 2008). In fact, if it was to be done without automation, then the managerial positions would have to be largely concentrated towards human resource management rather than profit maximization. Here again, we can see that workforce diversity management is an effective solution to the cause.
Variation in Demand: With the changing demands of the customers, there is also a variation in demand of the employees who cater to the customer demands. As technology is progressing at an alarming rate, it is also leaving its sign on the variation in demand of employees.
Visibility: From the above three pillars, it becomes clear that visibility is certainly large for an automated workforce diversity management system. Both the employees and employers on account of the volume, variety and variance in demand are well aware of the fact that automated workforce diversity is an important measure to ensure a remedy to the current situation.
3.8 The Role of Operations Function
It has become evident from the operations research conducted so far that automation is the need of the hour for Dhiraagu in today’s world. The company can very well customize its modules required for automation. This can relate to training, career development, establishment of trade-off between expenditure and result, financial implications, ability to handle the diversity in employees and alignment of the same with the organization goals of the company.
The most appropriate solution for automation in workforce diversity management would be to use SAP R/3 module of HR management. It does not only solve the purpose in context, but it also integrates payroll management. The following are the roles that this ERP system can perform:
- Recruitment Time Management
- Organizational Management
- Personnel Administration
- Payroll Benefits Compensation
- Planning Budget
- Management Personnel Cost
- Development Training & Event Management
- Management Personnel
- Travel Management
This is an exhaustive list of roles and responsibilities that R/3 module of SAP can perform. As this covers the other functions of HR management as well, hence this would also be cost-effective for the company. For example, it would not have to pay separately for automation of different components like planning budget, payroll benefits compensation etc. These are handled under one ERP system itself.