International Strategy in The World Pulp and Paper Industry Essay

International Strategy in The World Pulp and Paper Industry - Essay Example Considering the significance of global expansion we will analyze the benefits and costs of these strategies in paper and pulp industry. The global strategy allows companies to derive substantial profits in several ways. Firstly, companies which possess an undeniable advantage over their competitors can easily rivet the attention of the prospective customers and make them a part of their company. For instance, International paper’s possesses a competitive advantage in the domain of uncoated papers, therefore, it can easily target a group of people at any location of the world. There are several places in the world where the demand is not met by any local source in the paper and pulp sector therefore many companies have expanded internationally and have properly responded to that demand and are now enjoying the benefits. In contrast to that, stiff competition in the local industry has also reduced the local demand. It is estimated that United States demand for uncoated freesheet will reduce by 2.2% in the year 2008 (Cook at al 2008). As a consequence of this many companies have planned to invest in foreign markets to diversify their risks. Companies which expand globally reap the benefits of location economies. Firstly, there can be an availability of cheap labor and lower raw material costs in that region which can reduce the total costs by a substantial amount. For instance, companies in Canadian markets have recognized that pulp capacity will be going down which will increase the production costs for pulps, therefore, some of the Canadian companies have planned to make investment in locations where there is a lower cost of pulps with an adequate supply which will be able to fulfil their demand (Cook at al 2008). Secondly, the strategic location also provides transport economies by linking the establishments adjacent to one another (e.g. a  pulp plant supplying raw material to an adjacent paper plant) (Diamond, Chappelle & Edwards 1999).   

Why do many managers prefer that their employees work in teams Essay

Why do many managers prefer that their employees work in teams - Essay Example Managers of a majority of companies across the world desire and decide that their employees should work in teams because they think teamwork will improve efficiency and make the employees more satisfied. But from the research done so far and from the results obtained from the experiments of teamwork in companies, it is clear that teamwork need not necessarily deliver the outcomes that managers envisage. The problems in teamwork arise from it being something that involves humans who have different perceptions on one matter. Also it is very difficult to ensure equal opportunity in a team where talents at different levels act together. The hierarchy inside a team is also problematic. It is in this context that it is argued that teamwork is not delivering. At the same time, the proponents of teamwork have drawn attention to the successful outcomes that teamwork has brought about. History of teamwork Managers consider teamwork as a motivating factor and this was why GenXers of America wer e introduced with teamwork in their work places, which was a first time corporate reform of its kind (Appelbaum, Serena and Shapiro, 2004, 12). It was supposed to give more personal responsibility to them (Appelbaum, Serena and Shapiro, 2004, 12). It was also understood as originating from the GenXers’ search for sense of belonging (Appelbaum, Serena and Shapiro, 2004, 12). There have been many approaches in understanding and defining teamwork. It was initially observed that through teamwork, certain management objectives like, â€Å"positive attitude, risk-taking, individual and group responsibility and supportiveness have been achieved albeit very unevenly† (Findlay et al., 2000, 1567). By projecting the results of the small experiments of teamwork to a wider canvas, better productivity and more positive employee attitudes and behavior were expected of work-teams (Kirkman, Jones and Shapiro, 2000). Another viewpoint also emerged which saw teamwork as a function of em ployee self-aggrandizement by allowing the employees to make decisions in a creative manner (Ivancevich, n.d., 198). All these discussions, though defines teamwork differently, show how much value that new generation managements put in teamwork. Has employees welcomed teamwork ? There has been mixed response from the side of employees towards teamwork. One interesting criticism against teamwork has been that the employees were initially â€Å"bewitched† into teamwork rather than being logically convinced (McCabe, 2000, 209). But this argument is in a way, self-defeating because it agrees that employees have been accepting teamwork. By introducing teamwork, managements were trying to convince the employees that they were entering a new and more democratic cultural ambience (McCabe, 2000, 209). But later employees could not but see the inconsistencies in this management position. But if employees are disillusioned with teamwork as its critics say, then the question arises why t eamwork has become such a catchy phrase in management. Another allegation that though the employees value teamwork as positive, â€Å"employees are protective of social difference within their ranks† (Findlay et al., 2000, 22). But it has to be kept in mind that the employees have been used to the social hierarchies involved with the conventional management structure, for very long. Hence, to argue that they would be rebelling against a less hierarchical situation is highly illogical. Does teamwork, really work? Why? The commonsense promoted at managerial levels of organizations that teamwork is beneficial to employees and it will enhance productivity is found to be only partially true by researchers (McCabe, 2000; Findlay et al, 2000). Findlay et al. (2000) have been critical

The History of Valentines Day Essay Example for Free

The History of Valentines Day Essay The story goes that when the Roman Empire wars broke out married men did not want to leave their families, younger men did not want to leave their sweethearts. As a result of the low enrolment of men to fight the wars, Claudius the Cruel ordered that no more marriages or engagments should be celebrated. A priest, named Valentine, defied the order and married young couples in secrtcy. When Claudius discovered what had happened, he had Valentine dragged off and imprisoned, where he died. What he did for young lovers was remenbered and is still celebrated on St. Valentines Day. Steps: 1. Italic, center and increase the font size of the title to 18 points. 2. Make the paragraph 12 points Courier New (not the title) 3. Indent the first line of the paragraph 4. Underline the words â€Å"men† in the paragraph 5. Bold any form of the word â€Å"Valentine† in the paragraph 6. Spell check the document (there should be 2 spelling errors, but Claudius is spelled correctly) 7. Highlight the answer to the following question: Who married young couples when it was ordered that no more marriages should be celebrated? 8. Use the cut and past options to put the following steps in order: Valentine was imprisoned for not following orders Claudius the Cruel ordered not more marriages. Married and young men didn’t want to leave their loved ones for war. 9. Include a header in the right upper corner. 10. Insert and center below the corrected story a clip art of a valentine or other mentioned item of the story.

Enterprise Resource Planning Systems For Smes

Enterprise Resource Planning Systems For Smes Several researches have revealed that Enterprise Resource Planning (ERP) systems bring greater benefits to organisations, small or large. These reports asserted that successful implementation of the right ERP solution will empower the financial success of the organisation while its failure can spell doom and gloom. SMEs in contrast to their larger counterpart have peculiar challenges that further make the choice of ERP solution difficult. These challenges have defined the expectations and requirements of SMEs from ERP solutions. Various ERP software are available in the market for their use, with the software leader being SAP, but it is essential for an SME to select the appropriate software solution that appropriately address their needs putting in consideration their peculiar predicament. This is easily achieved through an adequate software selection and evaluation process. This research looks into past works on ERP implementations for SMEs to come up with ERP requirements for SMEs ; available software (and hardware) solutions available to them and a detailed software evaluation and selection process in line with industry best practice which they can use. It also addresses current ERP market and market trends. Methodology This paper is largely based on review of previous academic documents in form of journals, conference documents and books. These were reviewed extensively in line with the topic of discussion. Another helpful source of information used in the report is the internet. Through the internet, we were able to get more current information and data to support previous academic works. While we have done extensive research on this topic, it should be noted that the academic documents used in this research represent just a subset of the numerous documents that have been written concerning this topic. They are by no means a perfect representation of all the possible views. Table of Contents 1 Abstract 1 Methodology 1 Table of Contents 2 Introduction 3 Enterprise Resource Planning (ERP) Systems 4 Small and Medium Size Enterprises (SMEs) 4 ERP Market and Market Trend 6 ERP Requirements for SMEs 9 Analysis of ERP Solution (Software and hardware) 11 SAP 11 Oracle ERP Software 14 International Financial Services (IFS) 15 SAGE Accpac 15 Microsoft Dynamics 16 Open Source Software (OSS) 16 ERP Evaluation and Selection process 17 Stage 1 Plan Requirement 18 Stage 2 Request for Proposals (RFP) 19 Stage 3 Solution Evaluation 19 Stage 4 Contract Negotiation 19 Stage 5 Selection and Agreement 20 Introduction Enterprise resource planning (ERP) systems, according to Joseph et al 2003, is now being promoted as a desirable and critical link for enhancing integration between all functional areas within an enterprise and between the enterprise and its upstream downstream trading partners. Despite all benefits potentially offered by ERP systems (Banker, 1998; Hicks, 1995; Minahan, 1998) however, the issue of organisational changes needed by ERP implementation as well as predicting return on investment assumes particular importance within small and medium-sized enterprises (SMEs) because of their peculiar challenges. In SMEs, the implementation and the evaluation of the potential benefits is still a difficult task. (Ravarini, 2000). (Chan, 1999), asserted that many SMEs either lack enough resources or are not enthusiastic about committing a huge fraction of their resources to ERP implementation due to long implementation period and high fees associated with ERP, (Chau, 1995). These amongst other factors have resulted in slow ERP adoption by SME (Tagliavini et al, 2002). Nowadays, some SMEs are not only seeking ways of integrating their various island-of-information within the organisation, but have also moved to extend the whole scope beyond their organisation to include their suppliers, trading partners and customers (Charlesworth et al., 2002). Therefore, implementation of a right and cost effective ERP solution is essential. This however must be preceded by an accurate ERP software evaluation and selection process. This paper explores ERP for SMEs and is formatted as follows; Introduction, Methodology, Background on ERP, ERP Market and Trends, ERP and SMEs, ERP requirement for SMEs, Different Software (and Hardware) Solutions Analysis a Detailed Software Evaluation and Selection Process, Discussion, Conclusion and Future Research work. Enterprise Resource Planning (ERP) Systems ERP systems can be defined as the most predominant computing systems for business in a lot of organisations, both in the public and private sectors (Gable, 1998) The ERP software can be customised to support critical existing processes which organisations follow (Stefanou, CJ., 2001) Included in an ERP system are: Storage, orders, assets, vendor contacts, purchasing, financials and human resources (Dahlen C. and Elfsson J., 1999) (OLeary, 2000) stated that An ERP system integrates the majority of business processes and allows access to the data in real time. However, (Gardiner et al., 2002) also stated that an ERP system improves the performance level of a supply chain by helping to reduce cycle times. Other benefits which enterprises enjoy by implementing an ERP system include: better customer satisfaction, reduced quality cost, increased flexibility, improved resource utility, improved decision-making capability, improved information accuracy and improved vendor performance (Siriginidi, 2000). The flip-side to this is that, most ERP software tend to be complicated, large and expensive (Mabert et al., 2001). The implementation of an ERP system is time consuming and puts pressure on an organisations information technology (IT) department or outside professionals (Khaled Al-Fawaz et al., 2008) Putting ERP in place requires new procedures, employee training, and both managerial and technical support. (Shang and Seddon, 2002) Small and Medium Size Enterprises (SMEs) SMEs, in most countries are businesses that employ fewer than 250 people. For some other countries, SMEs are those which employ fewer than 500 people. Countries like these include: USA, Italy and Australia. 99.9% of the businesses in Albania come under SMEs. (Nito E., 2005) ERP customers are usually split into three market divisions by annual income. These include: large, midà ¢Ã¢â€š ¬Ã‚ market and small. The borderline of these divisions tend to be different, depending on which ERP vendor is using them. For small enterprises, Sage, SAP, Microsoft, Infor and to a slight extent Lawson, compete with a number of smaller vendors for ERP systems. Figure 1: Source: bla bla bla As shown in the diagram above, only SAP and Sage have set ERP products designed for the small enterprise market. The other vendors compete in this division with products that they also use for the midà ¢Ã¢â€š ¬Ã‚ market. The top six vendors compete in the mid-market. A lot of these products are industry specific e.g. pharmaceutical distribution, projectà ¢Ã¢â€š ¬Ã‚ oriented services, process manufacturing, etc. Successful competition has been attained by the leading ERP vendors adding sector specific focus to their products. This has been approached by: Industryà ¢Ã¢â€š ¬Ã‚ specific preà ¢Ã¢â€š ¬Ã‚ configured templates using a standard ERP product being developed by the ERP vendor (e.g. Oracles Business Accelerators or SAPs Best Practice Templates). ERP Market and Market Trend Trend, as defined by (Kotler, 1997) is: A direction or sequence of events that have some momentum and durability. Over the last decade, the ERP market has grown very quickly. The three main reasons for this growth are: globalisation, year 2000, and the need for better information integration. (Dahlen C. and Elfsson J., 1999) As at 1998, Merrill Lynch estimated that 40% of companies with revenues over $1billion had already implemented base ERP systems in the USA (Caldwell Stein, 1998) and had started implementing additional applications, a market that was estimated at $8billion by 2002. An American-based research firm, AMR Research, also predicted the enterprise applications market could hit $78billion by 2004 compared to $27million in 1999 (Stefanou, CJ., 2001). However, according to Gartner group, a high percentage (88%) of the ERP market is concentrated in the western countries. SAP, the German flagship company, holds a global market share of 32%, while Oracle has a global market share of 14.5%. Both vendors have the lion share of the Global ERP market. However, this is not the case in the Chinese market where SAP and Oracle hold a combined market share of 24.4% and the domestic companies holding a combined market share of 51.6%. (Huigang Liang et al., 2004) Total ERP market revenue grew to over $28B in 2006. This was driven by a combination of strong customer demand and leading vendors expanding their product portfolios through acquisition. (Jacobson S., 2007) As at 2000, the AMR Research, Inc. predicted that the ERP market would grow at a compound annual growth rate of 37% over the following five years. Currently, SAP and Oracle have dominated the market. Their competition, however, lies in the SMEs market With rivals like: Sage group, Microsoft, Epicor and Lawson (Jacobson S. et al 2007) Below is an ERP application revenue estimate for 2006 2011 This was estimated as at 2007 by the AMR, Research GroupFigure 2: (Jacobson, S. et al 2007 The ERP Market sizing Report, 2006-2011, AMR Research., ERP 2007 Market sizing series). In recent times, the ERP Vendor Outlook has changed a lot. Six vendors are responsible for almost two thirds of global ERP sales. Oracle and SAP control 50% of the World market by income. At the start of the last decade, Infor and Microsoft did not have a market presence. Below is a pie chart showing Global ERP Revenue by Vendor (2008) Figure 3: Source: BSM, ERP. May 2010 ERP Requirements for SMEs According to Huin 2004, SMEs have an enormous difference in needs, operating requirements, logistics fulfilment and financial capabilities compared to their large counterparts. First among these requirements is a cost effective ERP solution. Costs associated with ERP solution include not only the software, but also to items such as training, hardware and consulting (Willis et al 2001). Besides, most ERP software available in the market, according to Bounanno G. et al 2005, are just too expensive for SMEs. Chan R. 1999, supported that many small-medium enterprises either do not have sufficient resources or are not willing to commit a huge fraction of their resources due to long implementation times and high fees associated with ERP implementation. This emphasises the fact that cost is a major factor for SMEs when attempting to undergo a capital intensive venture like ERP implementation. A research of 50 Italian SMEs carried out by Federici 2009 suggested that small and medium enterprises mostly chose systems provided by small national software houses obviously for cost reasons. Contrast to larger establishments, SMEs have limited experiences, human resources and skills that are necessary for some kind of ERP implementations according to Adam and ODoherty 2003 cited in Winkelmann and Klose 2008. It is a well known fact that most SMEs have a scaled down number of employees who handles more than one function. This position is further supported by Huin 2004, which confirmed that most SMEs experience a high turnover rate compared to large companies. That work further stated that high turnover rate adversely impacts how SMEs manage their labour resource-a key resource input in any ERP project. This is in line with the research work of Winkelmann A et al 2008 which emphasised that a dedicated IT department addressing the selection and implementation of an ERP system dont actually exist in most SMEs. As such most SMEs have requirements for ERP solutions (software and hardware) that leverage on their lean human resources, especially in the IT department and provide a user friendly platform not riddled with so many complications. Achanga et al 2006 confirmed in his work that most SMEs do not have a good management structure on which innovations such as ERP thrives. It is customary to have the Managing Director or the CEO involved in daily administration of the companies in addition to making strategic decisions. They further explained that most SMEs were established by owner managers who may not have the tactful management know-how. As such, strategic progress is usually hampered by lack of good leadership traits which bring about informal working processes. This was supported by (Mintzberg H. et al 2003 p.217). Processes here according to Beretta 2004 is the medium that coverts activities efficiently and effectively in order to generate value for a specific customer. It is important to note that these processes are what ERP serves to integrate. As such ERP solution for SMEs must be simple and flexible to accommodate these peculiarities of most SMEs. Such flexibility involves things like allowing only specific modules or even sub-modules to be implemented. The type and focus of the SMEs should begat the requirement for consideration in the choice of ERP solution. Most SMEs have very specific operations and as such have very specific processes. These processes differ according to the specialisation of the company. Example is the case of a construction company in Taiwan that wanted to implement ERP but could not get software fit because of its unique operations (Yang J et al, 2007). Another example: Made-To-Stock (MTS) manufacturing companies have different ERP requirements from Made-To-Oder (MTO) companies (Deep A. et al 2007). The implication is that MTO and MTS have different production processes and thus will need a system that aligns with their peculiar requirement. We can therefore conclude according to Deep A. et al, 2007 that issues relating to the specificity of an organisation will need to be determined before proceeding to make a choice on the ERP solution for implementation. Analysis of ERP Solution (Software and hardware) ERP software belongs to a suit of software called Enterprise system software. According to Shanks G. et al 2003, it is; a set of packaged application software modules, with an integrated architecture, that can be used by organizations as their primary engine for integrating data, processes, and information technology, in real time, across internal and external value chains impound deep knowledge of business practices that vendors have accumulated from implementations in a wide range of client organizations, that can exert considerable influence on the design of processes within new client organizations is a generic semi-finished product with tables and parameters that client organizations and their implementation partners must configure, customize and integrate with other computer-based information systems to meet their business needs. Thus, ERP software are sold to organisations on the platform that its a way for them to implement best practices in an organisation (Wagner and Newell 2004), but there is a vast gap between this theory, the actual implementation and use of the software. The idea behind the software use is that a blend of best practice within a particular industry is built into the design so that this can be used by a similar company irrespective of where it is to automate its working process. According to Holland and Light 1999, most organizations now opt for off the shelf software instead of developing one in-house for its function. While there are over one hundred ERP software available, we will be reviewing a list of some well known ERP solutions available to an SME below; SAP A company that started in Germany, the application has captured the integrated market of most large and medium market throughout the world (Martin and Cheung 2000). With high functionality and a great deal of integration, the solution covers requirements such as financial accounting and control, sales and distribution, materials management, production planning and human resource management. Bancroft et al 1998 revealed that SAP design consists of the following layers of software; The SAP graphical user interface (GUI) representing the presentation layer; The SAP application layer; and The SAP database layer SAP supports critical business functions and processes and can actually be tailored to meet the business needs of any enterprise (SAP Global, 2010). It delivers the following solutions SAP ERP Financials: helps addressing changing financial reporting standards, improve cash flows and manage risks SAP ERP Human Capital Management: helps in automating key processes like End-user service delivery, workforce analytics, talent management, workforce process management and workforce deployment SAP ERP Operations: helps with process like procurement and logistics execution, product development and manufacturing and sales and services SAP Corporate Services: covers real estate management, Enterprise asset management, project and portfolio management, travel management, environment and safety management, quality management and global trade services SAP Global claimed that the product helps in increasing oversight of business operations and providing adequate information for strategic business decisions. It also claimed high flexibility and innovation and that modules can be implemented as needed and upgraded as the need arises. The SAP for SMEs has been implemented by over 80000 SMEs. Figure 4 below shows the SAP Solution roadmap showing the multiple level of blueprint of processes supported by SAP. SAPs benefits were echoed by the research work of Mandal and Gunasekaran 2003. This was implemented at PMB Water Corporation. They discovered greater benefit of implementing SAP. However, Al-Mashari and Zairi 2000 confirmed that SAP is a very complex solution that is too prone to failure. This position is supported by the research work of Martin I. et al, 2000 in an organization in Australia where he discovered that the training was complex, expensive and enormous. It is also not a user friendly application. For a small and medium sized company this enormous complexity and capital investment among other things is not one that can be readily and easily accommodated as previously stated in the requirements section. Figure 4 SAP Solution Roadmap (available at http://www. sap.com/businessmaps However, it should also be noted that quite a number of medium establishments have been able to implement SAP successfully and are reaping the benefits (Martin I. et al 2000). Oracle ERP Software The Oracle ERP software is part of the Oracle e-Business suite. It consists of the following modules (Oracle 2010); Channel Revenue Management: enables information driven channel management. Includes modules like Accounts receivable deductions settlement, channel rebates and point-of-sale, partner management, price protection and supplier ship and debit Financial Management: covers things like Asset lifecycle management, cash and treasury management, credit-to-cash, financial control and reporting, financial analytics, governance, risk and compliance, lease and finance management, procure-to-pay and travel and expense management Human Capital Management: includes Global Core HCM , Workforce Management, Workforce Service delivery, Integrated talent management, and HR analytics Project Portfolio Management: Involves things like project analytics, project billing, project contracts, project collaboration, project costing, project management, project portfolio analysis, project resource management and time and labour. According to Oracle, Oracle E-Business suite is the most adaptable global business platform and the most customer-focused application strategy. This opinion seems to be supported by Panorama Consulting group 2010, that the software has the highest level of predictability of all ERP software that was studied, and that the average initial cost to implement is 25% less than that of SAP. It also claimed that Oracles total cost of ownership is nearly 50% less than that of SAP. The fact remains though that its usage does not as yet compare to that of SAP. This is true considering the fact that there has not been much academic research into the use of the software as an ERP solution. International Financial Services (IFS) IFS is a single, integrated product supporting the management of 4 core processes (IFSWorld 2010); Service and Asset, Manufacturing, Project, Supply chain. It can be added to other suites of software e.g. Financials, Human Resources, Sales and services, Engineering, Project, Manufacturing and Distribution. According to IFSWorld 2010, its easy to use software that provides an attractive, intuitive and efficient user experience. It is also quite flexible, allowing an organisation to choose the required module and upgrade at a future date if so desired. The benefits of IFS was supported by the work of Lahikainen T. et al 2000 comparatively saying that ERP software like SAP is rather clumsy and large, and because of this cannot easily be reworked to suit a business process. Rather, the business will have to readjust its process for the software. SAGE Accpac This product offers middle sized organisation an adjustable enterprise resource for finance, SRM and operations (Sage, 2010). It supports global aspirations for mid-market and upper-mid-market companies with its robust financial management capabilities and flexible open architecture. Modules of the software include; Financials: General Ledger, G/L Consolidations, Reporting, Multi-Currency, Intercompany Transactions, Transaction Analysis and Optional Field Creator Purchasing: Purchase Orders, Accounts Payable, Electronic Funds Transfer (ETF), Direct payables, Document Management, Fixed Asset Management, Check and Form printing Sales and Receivables: Order Entry, Accounts Receivable, EFT Direct Receivables, Electronic Data Interchange (EDI), National Accounts Management, Unit Sales Analysis, Return Material Authorization (RMA) Customer Management: Contact Management, Sales Force Automation, Marketing Automation, Customer Service Automation Inventory/Warehouse Management: Inventory Control, Lot Tracking, Serialized Inventory, Warehouse Management, Manufacturing Management Project Management: Project and Job Costing, Service and Maintenance management, Payroll: In-house Payroll, Electronic Funds Transfer (EFT), Direct Payroll, Sage Accpac HRMS System Administration: System Manager, Alerts and Alerts Manager Sage manages the processes that are common to all businesses, such as finance, HR, or CRM; the vertical modules give customers a greater ability to match technology to specific industry needs (Sage, 2010). Microsoft Dynamics According to Microsoft 2010, Microsoft Dynamics offer solution that can help fastrack performance, measure financial effectiveness and enhance decision making. It helps drive businesses by providing a backbone of an elastic system. It is easy to implement and adapt. Apart from on-premise installation, the solution can also be deployed to work with cloud computing, a solution some organisations are already considering. The capabilities delivered by this solution includes Financial management, Supply chain management, business intelligence, performance management, Collaboration, Project Management, Human resource management, IT management and Software-plus-Services. Open Source Software (OSS) There are also a number of open source ERP software that seems to be of an increasing interest at the moment according to the research work of Johansson and Sudzina 2008. The list includes Compiere, OpenBravo, Opentaps, Facturalux, TinyERP. It may be that most SMEs will find OSS ERP implementations able to cater for their needs since according to Raymond 2005, SMEs are highly flexible and adaptable to change. Implementation may also work out cheaper as costs associated with licensing fees are usually not incurred (Johansson and Sudzina, 2008). It should however be noted that support for implementations for OSS ERP software is quite hard, as there can be several versions of a given software and finding an expert can be daunting. ERP Evaluation and Selection process A successful ERP project requires selecting an ERP solution, implementing the solution, managing changes and examining the practicality of the system (Wei and Wang, 2004). Wrong ERP solution choice would either cause implementation to fail or weaken the system to a greater impact on the enterprise (Hicks,1995; Wilson,1994). Most enterprises often jump into looking at ERP functions and features rather than examining the strategy and business processes. According to Donovan, 2001, it is important for management to know the current strategy, processes and supporting systems compared to what they could be with the new systems. For most enterprises, the decision to implement ERP functionalities will require buying a software package from one of the more popular vendors on ERP market. But the selection process is not a straightforward task, hence thorough understanding of what ERP packages are to offer, differences in each of them and what might be at stake in selecting one package over the other should be well examined or evaluated, (Sammon and Adam, 2000). Evaluating and selecting an ERP system, even though can be a very complex process (Donovan 2001). It should be a fact-based process that will bring an enterprise to the point where comfortable well-informed decisions can be made. Figure 5 below shows an online poll conducted by ESI International survey of 2,000 business professionals in 2005. This clearly indicated that most software projects, ERP inclusive, failed due to lack of adequate requirements definition. Fig. 5: Source: ESI International survey of 2,000 business professionals, (2005). In addition to the above figure 5, Donovan pointed out that typical ERP project implementation can also fail because of a wrong choice of ERP solution. Therefore, Management Agility Inc in 2005 revealed that it is imperative to adopt a thorough evaluation and evaluation process before adopting any ERP solution in SMEs. Their report detailed eight steps necessary for a careful and reasonable level of successful ERP implementation in SMEs. This is represented in Figure 6. We have further categorised this into the following five stages for our discussion; Planning, RFP, Solution Evaluation, Negotiation, Selection Agreement These five stages are explained below based on the research carried out by Management Agility Inc in 2005. Stage 1 Plan Requirement Define business along with areas of business that require technical approach. Develop a specific business case with business value for a solution. Ensure that the project sponsor is willing to articulate the business case for change, identify vendors and get familiar with the available solutions. Get general view of investment needed, considering software, hardware, other related infrastructure and ongoing support. Evaluate the organisation readiness for the investment and decide whether to continue or not. Define priorities under must-have and nice-to-have accordingly. Stage 2 Request for Proposals (RFP) Shortlist interesting vendors based on the outcome of market survey for solutions and then for demonstration. Collects facts in line with the business need from product demonstrations for the development of unbiased RFP for vendors. Set-up a neutral body to develop RFP, using facts gathered from products demonstration aligned to the business requirements. Distribute out RFP to selected vendors. Generate basic expectations from ideal proposal in line with the business need for onward selection of the ideal software vendor. Stage 3 Solution Evaluation Identify and prioritise remaining gaps between software capabilities as demonstrated and business requirements. Identify how the gaps will be bridged in terms of configuration, process change or a combination of all these. If the gaps cannot be bridge, then discontinue the evaluation exercise immediately, otherwise consider reengineering of those affected business processes and continue with the evaluation. Stage 4 Contract Negotiation Negotiate with each vendor; establish software, hardware and other infrastructure agreement requirements, which include version, components, maintenance and support. Also negotiate participation in user groups, license costs, maintenance fees and many others. Establish service provider agreement which also include deliverables, timelines, resources, costs, payment schedules and other legal requirements. Stage 5 Selection and Agreement Upon successful negotiation with the right vendor; Review all legal terms on privacy protection, operation guidance and data manipulation etc. Approve agreements with the selected vendors. Agree on implementation plan. Fig. 6: Detailed flowchart for ERP Software, Hardware Evaluation and Selection Processes Management Agility Inc, 2005 ERP Software Hardware (Solution) Evaluation and Selection Steps Yes No Stage 4 Stage 3 Stage 2 Stage 1 Define Requirements Shop Round for Product Clarify Requirements Evaluation Vendor Inquiry Interact with Vendors Negotiate Agreement Action Agreement Define business case/need and spell-out required values. Be specific. Ensure the business sponsor is willing to push through business case for change. Look round the market for what product is available. Identify vendors that operates and their general approaches to technologies the take. Discuss with others in the same industry as you are etc. Clarify your requirements and be sure of what you are looking for in line with you business case. Refine requirements if possible and be specific too. Find out what product is looking promising in line with the business need and from which vendor. Identify which vendor and their products and invite interesting ones for demo etc. Request for proposal (RFP). Invite each shortlisted vendor over for a chat and find out more about the product. List out expectations based heavily on business requirements. At this point evaluate this approach. Can you afford to change your current process? Can you afford the change the new product will bring and many more? Initiate Negotiation for the selected product with the selected vendor. Agree on who does what, when are they to be done. Negotiate deliverables, timelines, co

The Origin Of Human Resource Management Management Essay

The Origin Of Human Resource Management Management Essay Introduction: A single universally acceptable definition of HRM could hardly be found in this universe. Definition varies according to the author and probably they altogether refer organizational management activities in wider sense or in relations to employees welfare , or a strategic approach to people management (1). Human Resource Management provides an international forum for discussion and debate to promote the understanding of the importance of human resource management and people management to business strategy. Human resource management (HRM), as defined by Bratton, J. Gold, J. (2003), is A strategic approach to managing employment relations which emphasizes that leveraging peoples capabilities is critical to achieving sustainable competitive advantage, this being achieved through a distinctive set of integrated employment policies, programmes and practices. According to this definition, we can see that human resource management should not merely handle recruitment, pay, and discharging, but also should maximize the use of an organizations human resources in a more strategic level. To describe what the HRM does in the organization, Ulrich, D. Brocklebank, W. (2005) have outlined some of the HRM roles such as employee advocate, human capital developer, functional expert, strategic partner and HR leader etc. New challenges arise even now for the organization, and it is certain that new challenges will never cease to emerge. Therefore, the use of proper Human Resources techniques is a really powerful way for organizations to overcome these challenges, and to improve not only their quantitative goals but also their organizational culture, and their qualitative, cognitive aspects. Take our 20 best people away, and I will tell you that Microsoft would become an unimportant company (Bill Gates, CEO of Microsoft in Fortune, November 25th, 1996). This clarifies that how important is HRM for the development of business. In the global recession period HRM could play an important role in reducing the recession. organizations do not owe their success solely to market realities and sustainable competitive advantages, rather successful companies are those that consider their human capital as their most important asset. HRM and Personnel management: People however often get confused with the term personal management as a HRM. Though they possess similar characteristics they are indifferent to each other. People should be aware that HRM is strategic in nature that is, being concerned with directly assisting an organization to gain sustained competitive advantage. Whereas personnel management is about the maintenance of personnel and administrative systems. HRM is more proactive than Personnel Management. Furthermore, a valuable contribution of HRM is to direct the attention to regarding people as the key resource of organisations and lending the management of personnel increased importance. Personnel management refers to a set of functions, for example, recruitment and selection, often performed effectively but with little relationship between the various activities, or with overall organizational objectives. HRM, in contrast, assumes that all personnel activities are integrated with each other and strategically with organizational objectives (Nankervis, Compton and McCarthy, 1999, pp.4-5). Main differences between Personnel management and HRM: Personnel management is workforce centered, directed mainly at the organizations employees; such as finding and training them, arranging for them to be paid, explaining managements expectations, justifying managements actions etc. While on the other hand, HRM is resource -centered, directed mainly at management, in terms of devolving the responsibility of HRM to line management, management development etc. Personnel Management is basically an operational function, concerned primarily with carrying out the day-today people management activities. While on the other hand, HRM is strategic in nature, that is, being concerned with directly assisting an organization to gain sustained competitive advantage. HRM is more proactive than Personnel Management. Whereas personnel management is about the maintenance of personnel and administrative systems, HRM is about the value of organizational needs, the continual monitoring and adjustment of personnel systems to meet current and future requirements, and the management of change. Strategic HRM: Strategic HRM, as it has come to be known, is concerned with the development and implementation of people; strategies which are integrated with corporate strategies and ensure that the culture, values, structure of the organization, quality, motivation and commitment of its members; contribute fully to the achievement of its goals (Armstrong, 1991; cited in Armstrong and Long, 1994). More and more companies are proactively involving HR in the earliest stages of generating the business plan, rather than just letting HR reacts to it (Dessler, 1997; p. 19). One of the central themes of strategic HRM is its use of the term strategic, which incorporates planning, a congruous approach to the management of HR systems, and seeing employees as a source of competitive advantage (Hendry and Pettigrew, 1986). Strategic HRM seeks to ensure that all business planning processes realize that the ultimate source of value is people, and that the firms distinctive competencies and the types of people who are needed to build and maintain them are identified (Stone, 1995; p. 9-10). Such a view makes HRM an equal partner in the strategic planning process (Dessler, 1997; p. 22). The management of people is not a distinct function but the means by which all business strategies are implemented. (Armstrong and Long, 1994; p. 44). Strategic HRM is a response to change (Ezzamel, 1996: p. 76). By managing this change well, a competitive advantage can be gained through the matching of HRM to business strategy (Kamoche, 1991:p. 3). Effective HR strategies have now become the distinguishing factor among successful organizations and economies (Stone, 1995:p. 10). However, it must be realized that strategic HRM will not guarantee success it is not an instant pudding (Armstrong, 1994: p.54) Hard and Soft Models of HRM: HRM has been frequently described as a concept having two diametrically opposite, though not necessarily irreconcilable, languages: soft and hard. Soft HRM emphasizes communication, motivation and leadership (Storey, 1989: p. 8; Boxall, 1996: p. 59). It is associated with the human relations movement and McGregors Theory Y view of individuals (Truss et al, 1997: p. 54), and it assumes that employees will work most effectively if they are fully committed to the organization (Lundy, 1994; cited in Truss et al, 1997: p. 56). This model emphasizes on the varieties of stakeholders as shareholders,different group of employers, the government and the community. HR strategeis should reflect on all these groups and fuse them into the Human resource strategy and ultimately the business strategy (1). In contrast to this, Hard HRM or the matching model emphasizes the quantitative, calculative and business-strategic aspects of managing the headcounts resource in as rational a way as for any other economic factor (Storey, 1989: p. 8). This form of HRM focuses on the importance of the HR policies being closely linked to the strategic objectives of the organization, resulting in a competitive advantage (Storey and Sisson, 1993; cited in Truss et al, 1997: p. 55). In contrary this model is the process of deployment of human resources to meet business objectives. These two forms grew from roots developed within the infancy stage of HRM. The excellence movement influenced the development of soft HRM, while hard HRM was the result of strategic concern (Kamoche, 1991: p. 4). Critics of Hard and Soft Models of HRM: Ultimately, there is a conflict between elements of self-expression within the soft model, and organizational direction in the hard model. Although both versions have been taken from quite distinct intellectual traditions, they have been amalgamated into one general model that is HRM. The results from a study by Truss et al (1997) found that no single organization adopted either a pure soft or hard approach to human resource management. Though the rhetoric may be the soft version, with its foundation in communication and employee commitment, the reality of organizational goals almost always brings HRM back to the hard model (Truss, ET AL, 1997: p. 70). As a result of such inconsistency between hard and soft HRM, the credibility of HRM will continue to remain a problem (Vaughan, 1994: p. 28). In every approach, there are advantages and disadvantages. The hard approach would mean that rules, regulations and goals are clearly defined and adhered to, however, it would mean that employees will not be involved in decision-making and that may result in a decrease in motivation and commitment. The soft approach, on the other hand, although may increase motivation and commitment since employees are involved in the organization, it may prove to be chaotic if clear-cut rules and goals are not made clear as this may affect the firms profits and goals. HRM and Performance: The different roles exercised by HR managers and employees has resulted positive performance. The involvement of hrm not only increases employers skills,relation but also help in organizational performance ,productivity and growth. The given fig illustrates the relation between hr activities/roles, hrm outcomes and business performance(1). Definition: HR Manager: Human Resource manager is the person who responsible for total management of the same department optimizing the human capital to the greatest possible limit. HR manager practices HRM functions within an organization. In other words he or she is the heart of the organization who keeps the whole system alive by a list of rational activities. A good manager is the intimate friend of all employees with whom all can share business and even individual related matters that affect the performance of the organization in the short or long run. The traditional role: The traditional HR role was mainly recruitment,training and retention based where it is very much narrow and limit the potentials of both HR and employees. The repetition of the same working cycle made them unenthusiastic to a great extent but the matters concerning the employees affecting the productivity have increased the responsibility of HR.A number of study has changed the conventional roles of HR. Nowadays a HR even has to think about psychology of current employees which is the most interesting apart from influencing strategic decisions in broader perspective. High power distance: This is one of the crucial characters of traditional HR functions. In the organizational framework there were huge gaps between employees and HR. Ultimately miscommunication easily happens due to poor understanding between employees and higher officials. Low efficiency: In early days HR used to be less efficient but in coming days new sets of standards are set frequently to be an efficient HR. For example it was unimaginable to think that a manager would consider psychological aspects as well. Administrative confinement: In past days HR used to confine themselves in only administrative works but today they are more strategic and he is responsible for important decisions taken by the organization. He has to think about not only present but also future needs of the employees besides in early days there was much less motivation practice among the HR. New hr/Modern HR practices: The major contributions of HR comes from two sources: Service Delivery Facilitation roles The first one deals with recruitment and retention of staffs and confirm that they have required skills where as the second one concerns about motivation to get the best output from employees. But both these inputs can be at the operational and strategic levels depending upon business objectives. In the protection of organizational values HR has a leading role. One of the major features in new HR managers is adaptability. The role of the HR manager must match the needs of his or her shifting organization. Successful organizations are becoming more adaptable, flexible, quick to change direction, and customer-centered. Within this environment, the HR professional, who is considered necessary by line managers, is a strategic partner, an employee sponsor or advocate and a change mentor. At the same time, especially the HR, still has responsibility for employee benefits administration, often payroll, and employee paperwork, especially in the absence of any other employees .So it suggests that HR must be multi skilled. He should have strong capacity building power having other official skills. Depending on the size of the organization, the HR manager has responsibility for all of the functions that deal with the needs and activities of the organizations people including these areas of responsibility. Recruiting Hiring Training Organization development Understanding cultural diversity Work- life balance communication performance Management/Rewards and recognition Coaching Policy recommendation Salary and benefits Team building Employee relation Leadership Psycho analyst and contract By the start of twenty first century HR need to be aware of risks linked with cost cutting. The British National Health Service has long been criticized for inefficient use of resources, so large numbers of managers and administrators have been recruited to make things more efficient. Many of these new-recruits are HR people who may be perceived by health professionals as creating inefficient and costly controls at the expense of employing more health professionals. We are not suggesting that these criticisms are necessarily justified, but there are undoubtedly situations in which the criticisms are justified.( Dereck Torrington ET AL. 2006, Human resource management, Prentice Hall.) The scope of human resource planning covers not only numbers of people and skills, but also structure, culture, systems and behavior.( Dereck Torrington ET AL. 2006, Human resource management, Prentice Hall.) HR is responsible for making code of conducts or any other disciplinary issues relating to employees and organization being aware of the safety and others needs of the Employees. (With all of this in mind, in Human Resource Management Dave Ulrich, one of the best thinkers and writers in the HR field today, and a professor at the University of Michigan, recommends three additional roles for the HR manager.) HR Role: Business and Strategic Partner In todays organizations, to guarantee their viability and ability to contribute, HR managers need to think of themselves as strategic partners. In this role, the HR person contributes to the development of and the accomplishment of the organization-wide business plan and objectives. The HR business objectives are established to support the attainment of the overall strategic business plan and objectives. The tactical HR representative is deeply knowledgeable about the design of work systems in which people succeed and contribute. This strategic partnership impacts HR services such as the design of work positions; hiring; reward, recognition and strategic pay; performance development and appraisal systems; career and succession planning; and employee development. To be successful business partners, the HR staff members have to think like business people, know finance and accounting, and be accountable and responsible for cost reductions and the measurement of all HR programs and processes. Its not enough to ask for a seat in executive table.HR people will have to prove they are the business minded necessary to sit there. HR Role: Employee Mentoring As an employee sponsor or advocate, the HR manager plays an integral role in organizational success via his knowledge about and advocacy of people. This advocacy includes expertise in how to create a work environment in which people will choose to be motivated, contributing, and happy. Fostering effective methods of goal setting, communication and empowerment through responsibility, builds employee ownership of the organization. The HR professional helps establish the organizational culture and climate in which people have the competency, concern and commitment to serve customers well. In this role, the HR manager provides employee development opportunities, employee assistance programs, gain sharing and profit-sharing strategies, organization development interventions, due process approaches to problem solving and regularly scheduled communication opportunities. HR Role: Change Champion The steady assessment of the effectiveness of the organization results in the need for the HR professional to frequently champion change. Both facts about and the ability to perform successful change strategies make the HR professional exceptionally valued. The HR professional contributes to the organization by constantly assessing the effectiveness of the HR function. Knowing how to link change to the strategic needs of the organization will minimize employee dissatisfaction and resistance to change. He also sponsors change in other departments and in work practices. To promote the overall success of his organization, he champions the identification of the organizational mission, vision, values, goals and action plans. Finally, he helps determine the measures that will tell his organization how well it is succeeding in all of this. Evolution of HR function: The following fig explains the developing stage of Hr functions. Hr when introduced just include the personnel benefits of employees as payrolls,benefits,etc. With the changing environment and changing technology the hr functions get stretched and now Hr not only look about employee security and rights it practices Top level management corresponding to organizational strategy which is termed as Strategic HRM roles. Source:( http://empxtrack.com/blog/wp-content/evolution-of-hr-function.jpg) The benefits of Human Resource Management: There is correlation between the HRM strategy and the overall corporate strategy so ,the Human resource management has its significance in a planning the activities of Management and the activities of resources which involves the implementation of Human resource management in primary activities such as acquisition, development, compensation and maintenance. Where, Acquisition entails the hiring of workers most likely to help an organization achieve its goals. The development function encompasses the training of workers to perform their tasks in accordance with organization strategy. This activity also involves organization efforts to control and change employee behavior via reviews, appraisals, incentives, and discipline. Compensation covers the payment of employees for their services. Maintenance requires structuring labor relations-the interaction between a companys management and its unionized employees-and ensuring compliance with federal and state employment laws. Finally, the evaluation function includes the assessment of a companys HRM policies to determine whether they are effective. Managing the Human resource benefits the organization in a huge way, Such as : Sustaining stable workforce levels during ups and downs in output, which can reduce unnecessary employment costs and liabilities and increase employee morale that would otherwise suffer in the event of lay-offs? Preventing a high turnover rate among younger recruits. Safe Work Environments Reducing problems associated with replacing key decision makers in the event of an unexpected absence. Making it possible for financial resource managers to efficiently plan departmental budgets. Training and development activities benefit the overall organization as well as the individual as more productive. Human resource maintenance activities related to safety and health usually entail compliance with federal laws that protect employees from hazards in the workplace. Helps to simulate, analyze and experiment with proposed organizational changes and previous organizational models. It helps to attract, retain, and motivate the best people. Managing HRM find the best people and then manage and track candidates throughout the entire recruiting process. Sustaining High-Performing Employees Practices of HRM: HR has many roles to be implemented within an organization. Organization smaller or bigger atleast entertain some hr practices. The early records shows there were less practices of hr. The 1998 Workplace Employee Relations Survey(WERS98)(Cully ET all,1999) investigated 16 hr practices which resulted the practices were well observed in British workplaces, where 3 practices (formal disciplinary and grievance procedures, team briefing and performance appraisal) were widely observed. However job security ,participation in problem solving groups etc were in minority. The result showed only one out of five workplaces more than 16 hr practices. On the other hand only 2 percent of workplace didnt practice at all(Guest ET AL,2000). HRM in multinational companies are in a debate. The countrys business policy, political environment etc hinder the practices of HR. different border sets different rules and policy. For ex A us based company doesnt impinge on Canadian firms, similarly UK firm doesnt impinge on the Irish business system(1). The MNS should implement more centralized strategy which is beneficial to their employee. An adoptable employment strategy should exists regardless of institutional character of national business systems where they locate subsidiary operations. Investment in Human capital Due to globalization the world has become a small village and a new economy emerges where it necessitates investment in human capital, knowledge, commitment, enthusiasm of the employees. So the focus has shifted from physical assets to intellectual capital. The emerging new economy has several features: Consists of global work forces with increasing optimization of skills Higher speed of technology and innovation Creation of abundant business opportunities It decentralizes the power It rewards openness People becoming greatest capital. Practical case of HR roles in Finland and abroad: Finland applies a wide variety of hr practices. For ex MC Donald has been using different practices as reward through base pay. Employee holiday travel, pension,training,bonuses,etc are other roles widely practiced in Finland. For example recently an it firm in Finland was offering an programming specialist job, where they were training selected candidates for the first 9 month. This is a training based pay practices of HR functions which is vigorously applied from a simple cleaning job to an highly skilled job. Similarly Yahoo initiates performance related pay (PRP) during recession only among the 5% officials who were in top levels as well to reduce the dependency upon the lower employees and thus it cut the cost though unfortunately many had to leave the job. Nokia is also practising Hr in a wider sense. The development of human resources is a business proposition, which endeavors to delight its costumers, motivates its employees and increase the agility and flexibility of the management to address specific HR needs. Furthermore, The HR manager is challenged with the task of providing skills,cultures,atmosphere and processes necessary fore- knowledge and capabilities. Nokia beleieves in the importance of individual either its an individual,employer or an stakeholders. Critiques: The HR functions have been changing with the time. Some author argues is it really necessary for the changes in Hr function. What else matter in organizations rather than employees performance. If an employee is faithful to organization , he or she devotes fully to organization well being. However bonus or certain rewards are acceptable but does an employee really needs to be motivated by HR specialist if organization is treating well? Has the new changes benefited to the employers,stakeholders and ultimately the organizations? The answer is surely yes. Even though the organizations are practicing HR roles why the state/firm faces strikes of workers and globally increasing trade unions which interfere in employee and employer relations. There are many unanswered questions and a debate too. On the other hand many consider steps like performance related pay PRP is a capitalist approach which may breaking the unions and inter personal relationship though there is no doubt the whole tasks of HR has become more challenging with the pace of globalization. Summary: Organizations today recognize that human resource (HR) is their key asset to gain an edge over competition and achieving organizational success and effectiveness. Thus, human resource management (HRM) has now become an emerging field in the business world and a key ingredient for staying abreast of competition. Within most large organizations, HRM has taken on much the same role as Personnel Management, but with some additions, particularly in regard to business strategy. However, HRM essentially involves the policies and practices one need to carry out the human resource aspects of a management position, including recruiting, screening, training, rewarding, and appraising (Dessler, 1997; p. 2). This issue of integration with the general management is an important one for HRM. There is already some evidence to indicate that when senior management manages HR issues they are taken more seriously. A properly functioning HRM system is an invisible asset that creates value and involves the acquisition, development, reward and motivation, maintenance and departure of an organizations human capital. On the contrary, if hr managers should try to implement a strategy which is fruitful and acceptable to both top level management and employers working for it. HR managers should frequently deal with the company strategy, progress and its treatment to the workers. Hr managers should play as a driver who conquers both passengers(employee) and employers(bus) to have a smooth drive.

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