Academic Research Paper
Human resources constitute an indispensable part of any company. Those are people who contribute to the development of the company. The staff, their skills and level of professionalism determine the quality of products and services that the company provides. The better people work for an organization, the better results they deliver. That is why the question of human resources management and HR configuration is so important nowadays. In the era of fast changes in all spheres of life, only those companies that are able to quickly adapt and respond to the changes will have more chances of success. Each organization has its own structure and principles of recruitment. Unique HR practices and processes constitute a competitive advantage of a company. They are difficult to copy or reproduce, and they will work only in certain conditions, created in a given firm. This paper will provide information on Singapore business and economics, the best practices in the sphere of HR management and the ways how to improve PT. INAMCO VARIA JASA human resource management by using them.
Singaporean Business and Economics
Singapore is famous for its economy, which is considered to be one of the best in the world. This country has the lowest level of corruption due to very severe legislation. The majority of the companies are government-linked. A very high level of purchasing power and GDP are a result of the fact that the government greatly supports entrepreneurship and innovation and attracts different investments. Nowadays, Singapore’s biggest business segments are chemicals, biotechnologies and electronics. One of the reasons for Singaporean companies’ success is the effective HR management, which is depicted in the article discussed below.
The article on the impact of HR configuration on firm performance in Singapore describes the results of the research in human resource management and its implications in Singaporean companies. Lee, Phan, and Chan (2005) analyze such human resource processes and practices as “staffing, performance management, training and career development and compensation practices”. The best working practices used by Singaporean companies turned out to be training, career development and compensation practices. A detailed analysis of these processes and factors is presented below.
Singapore has managed to successfully overcome the crisis that began in 1997. One of the tools that helped Singaporean companies survive the difficulties and sustain profit growth is effective human resource management. The companies strived to create a unique human resource structure and practices that might become their competitive advantage. According to the research provided in the article, the practices and processes should be difficult to reproduce in another company (Lee, Phan, & Chan, 2005). This feature constitutes their uniqueness. The companies advise to constantly invest into the development of the staff and their education. It turned out that it is more effective to invest continually into the development of the staff and resources of an organization than to provide huge short-term investment. The markets in the 21st century are very dynamic. That is why companies have to be able to adapt to the changes quickly. If organizations spend enough money on continuous research, trainings, and experience exchange, their employees will have up-to-date knowledge, which will be their competitive advantage. Such staff will be able to find creative solutions in different situations and will make a huge profit for the company. That is why the organizations should not economize on HR budget. Moreover, it is important to have good recruiters working for the company as the quality of the staff depends on their choice.
HR Best Working Configurations
The research on the Singaporean companies showed that interconnections of the departments, firm’s organization and processes are important factors of HR configuration effectiveness. They are also considered as the conditions in which HR assets and practices become a unique feature of the company. It is explained by the fact that it is impossible for other companies to reproduce the same conditions and processes.
Some companies decided to automatize HR decision process and introduce a management information system. This system appeared to be ineffective as it does not have sufficient “managerial skills, experiences and competencies” (Lee, Phan, & Chan, 2005) for this task. The person secures a tailor-made approach to each situation, which cannot be done by a machine.
The authors of the article state that “best practice” sharing and effective strategic HR management work better than the creation of a unique organization structure and processes. The companies may implement the experience of their competitors or representatives of other businesses. However, they should be cautious as some tools that are good for one company may not work in another. It is also effective to introduce best practice sharing among the employees of a company or between its departments. It will increase the value of the company.
Singaporean Companies Research Application to PT. INAMCO VARIA JASA
In addition, there is a need to analyze PT. INAMCO VARIA JASA and decide what changes in HR management should be done in order to improve company’s effectiveness and profit. The results of the research on Singaporean companies and the ways of their implementation in PT. INAMCO VARIA JASA will be provided below.
PT. INAMCO VARIA JASA is a company that provides HR services in the sphere of mining, oil, gas and construction. It helps different firms to find professionals for the given positions and provides the employees with the list of job offers in Indonesia. PT. INAMCO VARIA JASA provides options of staff outsourcing, training, assessment, HR management and consulting on human resources. Singaporean experience may be used both for the company’s improvement and for its customers’ organizations optimization.
As it was mentioned in the article, knowledge and skills are very important assets that the employees bring into the company. Real professionals should constantly improve and enrich them. That is why PT. INAMCO VARIA JASA should continually train its ready to work personnel. It should develop a plan for trainings and seminars for each employee in order to keep him or her up-to-date with the latest information concerning the sphere of their activities. The workers should be familiar with all the technological novelties, and they have to be able to work with them. In order to assure that the staff is highly competitive in terms of knowledge and skills, HR managers of the company should be aware of all the novelties and latest requirements of the employers and the market. It is also important that all employees of the company pass all the necessary exams that certify the level of their qualification. In such a way, they will have a proof of their professionalism. Moreover, investments into people create higher loyalty to the company, which, in turn, increases its effectiveness and profit.
Basing on the provided research results PT. INAMCO VARIA JASA should develop a tailor-made plan for staff development for each company it works with. As it was mentioned above, one solution cannot fit all companies. That is why each situation has to be analyzed separately. PT. INAMCO VARIA JASA should create a professional training center, which will provide employees of different companies with the latest information from the field of their activity. This center will increase value of the company and help to cultivate a professional base of staff and train employees.
PT. INAMCO VARIA JASA should analyze organizational structures of the companies it works with. As a result, it should find out the advantages and disadvantages of the organizations and provide the ways of their improvement. This analysis should also include the assessment of the quality and forms of interaction of the representatives of different departments of the firms. If the process of best practice sharing, information exchange and communication is not established among the employees, special trainings and practices should be implemented.
There should be a possibility of experience sharing between the ready to work employees of PT. INAMCO VARIA JASA. It is useful to create monthly meetings of the workers and let them share their knowledge, skills, ideas and secrets that help them do their work better and faster. During these meetings, the employees may also improve their collaboration with employers and management of PT. INAMCO VARIA JASA. People should have a possibility to express themselves and say what motivates them best and what can help to improve the quality of their work. Those may be some tangible assets, machines, incentives, trainings, bonuses, salary increase etc. This information is of a very high value both for PT. INAMCO VARIA JASA and its customers as it helps to increase productivity and effectiveness of work.
PT. INAMCO VARIA JASA has to develop comprehensive requirements for each position to ensure good customer service. Decision-making is very important in the recruitment process as it will influence the company’s performance in future. The organization should refuse from using management information systems that automatize the decision-making process as they proved to negatively influence profit and effectiveness of companies (Lee, Phan, & Chan, 2005). The customers of PT. INAMCO VARIA JASA should not rely solely on the use of those systems to make recruiting or promotional decisions. Although it is useful to use technologies to test candidates for the position, the final decision on the employment of a person has to be taken by a human being. The HR manager will weight all the pros and cons and assess all the available variants in order to hire a right person. Moreover, in the majority of cases the personality of the candidate matters as well because it defines if the person will easily become a part of the team or not. The machine is not able to assess it.
To conclude, people are the main and the most valuable asset of any company. Their knowledge, skills and personality influence organization’s effectiveness, productivity, profit and ability to develop. It goes without saying that investments into people will give the biggest dividends in future. A company should constantly develop and train its staff so that they are competitive and aware of all the novelties on the market. It is important to assure collaboration within the organization. It should create all the conditions for the employees to interact with each other and to be able to share experience, knowledge and best practices.
The recruitment process is of high importance for a company as it is crucially necessary to hire the right people for the right positions. The employees should meet all the requirements and possess all the necessary skills. That is why the right to make recruiting decisions should not be passed to machines. Management information systems will use a formal standardized approach to decision-making, and it should not be the case.
In order to make the staff perform well, HR managers together with the top management should revise the organizational structure of the company and the ways of departments’ cooperation. They have to define the areas for improvement and implement the actions designed. Only well-coordinated and well-organized teams will be highly effective and productive.