How HR system components align at a software organization

Workings of HR Department

How the parts of the HR system align and support each other

The role of the human resource management system is increasing within the modern day society, in which the staff member is no longer simply the force operating the machines, but has metamorphosed into the most valuable organizational asset. In such a context, economic agents place more emphasis on human resource management practices in order to stimulate the staff members to increase their commitments to organizational causes and as such to support the success of the company.

The human resources system is a complex set formed from a wide array of elements which deal with the relationship between the firm and the individual even before the individual becomes an organizational staff members, and up until he/she leaves the firm, either for retirement or to work for a different entity. Common components of the human resources system include the designs of the job, the recruitment and selection of the candidates, the training and the integration of the individuals, the assessment of the staff capabilities and performances, the promotions or the financial and non-financial rewards.

While the components of a HR system are generally common within various firms, their specific features and applications depend on the particularities of each entity and situation. In other words, while the specialized literature presents the reader and the practitioner with various human resources models, each firm should develop and implement its own models. The scope of the customized models and systems is that of best serving the specific company needs and being tailored to particular features, such as organizational culture, size of the labor force, resource capabilities, field in which the company operates and so on.

With these statements in mind, the current endeavor strives to offer an objective assessment of the human resource system at a software organization. Emphasis would be placed on the means in which the various components of the HR system align and support each other. Additionally, attention would also be granted to the means in which the components of the human resource system impact various organizational features, namely the levels of employee morale, the organizational efficiency and productivity, the work / life balance of the staff members and the internal climate and organizational culture. Finally, the project comes to an end with a section on concluding remarks, which has an important benefit materialized in the fact that it constructs and offers several recommendations as they tailor to the specifics of the company analyzed and its HR system.

2. The firm

The company was established 12 years ago and it operates within the Information Technology industry. It employs an estimated 150 individuals, most of whom are professional software developers. Specifically, 100 of the employees are programmers and the rest of 50 employees are administrative staff, including:

10 top managers

15 human resources staffs

10 sales and marketing staffs

5 financial and accounting staffs

10 staff members of other categories, such as building maintenance and cleaning.

A specification which has to be made at this level is that the qualifications, roles and assignments of each of the 100 developers varies based on the project requirements as well as the developers' skills and expertise. In this order of ideas, 30 developers are junior developers, with a limited expertise. 35 are senior developers, with an increased expertise and vast knowledge of the field. 15 of the developers are architects and their skills and knowledge are vast and they are able to generate solutions and innovation, rather than simply write code. Finally, 20 of the developers are project leaders, which also posses vast technological knowledge, but which perform complex and combined tasks as they both supervise project developments, as well as maintain communications with the top management and with the organizational customers.

The company is specialized is the creation of software products for various categories of consumers from both the public as well as the private sector. The largest customer is a private university which has contracted the firm to maintain and update their database. This project requires the sustained efforts of 37 developers, all programming on the Java platform.

Java developers are also focused on other projects, such as the creation of applications for stock exchanges or the creation of software for pharmaceuticals companies. Aside form the Java developers -- which represent the highest percentage among developers -- the company also hires Magic developers, C and C++ programmers, as well as .net programmers. The projects onto which these categories of programmers work are smaller, but equally important for the firm. In this order of ideas:

The Magic software developers work on applications for an amusement park

The C. And C++ developers work on applications for hospital administration, and finally

The .net developers work on applications for customers in the public sector, namely the administration of the data bases for the local health care agency.

At the local level, the firm is recognized as one of the best employers in it as it provides its staff members with stability and professional formation, and these often compensate for the fact that the salaries are sometimes below the competitive values in the industry. The human resources system has also been created in a means that it generates employee satisfaction and motivation.

HRM creates an organizational culture focused on quality and performance

HRM systems allow the company to implement change in a less disruptive manner. Specifically, the implementation of change is often a tedious process which meets resistance. HRM helps reduce the resistance to change and supports the implementation of change in an efficient manner.

Finally, the human resources system enhances and strengthens the organizational core competencies (Simms).

4. The HR system alignment at the economic agent

The managerial team at the software organization has understood the importance of an adequate human resources management system and has strived to create the components which ensure employee satisfaction and as such enhanced organizational advantages. Their efforts would be discussed below, but at a general level, it has to be noted that the HRM objectives of the firm have yet to be fully attained. With this realization in mind, several recommendations would be offered throughout the following section. Nevertheless, this current section focuses on the means in which the components of the HRM system align and support each other, as well as on the means in which they impact employee morale, organizational efficiency and productivity, employees' balance between life and work and the internal climate and organizational culture. The components of the HRM system to be addressed refer to the following:

a) Job design issues

b) Training activities

c) Recruitment activities

d) Selection approaches used

e) Performance appraisal systems

f) Promotion systems implemented

g) Pay parts and other benefits

h) General supervisory styles

a) Job design issues

The job design represents the process by which internal parties organize the tasks and responsibilities of a position in order to ensure that the occupant of the job best serves organizational goals. There are three categories of issues which impact job design, namely:

Organizational factors, which refer to: task characteristics, environmental factors, ergonomics and work practices

Environmental factors which include: the abilities and availability of the employees and the social and cultural expectations

The behavioral factors which include: the feedback received, the autonomy of the parties, the use of abilities and variety (Hub Pages, 2011).

The job design supports the HRM system through its ability to identify the necessary skills required from a future employee, and it as such increases the efficiency of the selection and recruitment stages. Additionally, a properly completed job design also supports training programs by integrating skilled and qualified staff members, which are not only capable to perform their assigned tasks, but which are also able to understand and add new knowledge.

At the level of the impacts job design generates upon various organizational elements, the following are noteworthy:

A high quality job design process allows the company to effectively recruit the desired candidates, which in turn means that the selected individuals would be easily integrated to increase their efforts and support the company's productivity and efficiency

The job design also impacts the levels of employee satisfaction. The job is a central part in the life of any individual and a good job design increases the levels of employee satisfaction. Specifically, in order for the job design to generate high levels of employee morale, it is expected to define and stimulate job involvement, job satisfaction, competence, productivity and job performance (Kondalkar).

b) Training activities

Training activities are generically understood as processes by which an employee is introduced to new knowledge which would help him / her better perform their professional tasks. Within the software organization, training programs are offered for two straight months upon the individual/s hiring within the firm. The training programs revolve primary around the presentation of the project to which the new employee would be assigned with the scope of familiarizing the developer with the project and with the customer. During these two months, the new employee would also be delegated to interact directly with the customers.

The means in which training supports the other stages of the HRM system refers to the following:

The degree to which the employee has learnt and implemented the teachings in the training sessions impact his performance and as such the appraisals to which he/she would be subjected, as well as the promotions he/she could be offered

The degree to which the employee has participated and capitalized on the teachings of the training programs impact the pay and other benefits he/she would receive in the future.

At the level of impacts, training programs have the important dual benefit of positively impacting both organizational productivity and efficiency, as well as the levels of employee morale. On the one hand, training programs prepare the staff members and enhance their professional skills and abilities. This in turn translates into higher performances, efficiency and productivity. On the other hand however, training is welcomed by the developers who see the sessions as opportunities for professional development. In a different formulation, employees who are trained gain an increased sense of confidence in their professional future, and they as such become better satisfied.

c) Recruitment activities

The recruitment operations at the software firm are completed through both traditional as well as modern medias, such as advertisements in the local press, online advertisements or ads through the local employment agency. These operations impact the components of the HRM system at the level of organizational efficiency and productivity. In this order of ideas, when the recruitment processes are tedious, resources are consumed and organizational efficiency and productivity are negatively impacted. Vice versa, when recruitment is quick and efficient, organizational efficiency and productivity are supported.

A high quality recruitment mechanism also supports an efficient selection process through the targeting of the adequate candidates.

d) Selection approaches used

At the level of the selection approaches, the firm focuses on a complex set of interviews, composed primarily from thee interviews -- the interview between the candidate and the company's HR representative, the technical interview and the psychological interview.

An efficient selection process is supported by the recruitment processes and in turn it supports the promotions and the appraisals. For instance, in the selection stages, the skills of the candidate are observed. At a future point in time, they are compared with the skills gained and the comparison supports the appraisal systems, the promotions which the employee could be offered and the pay and other benefits he/she could receive.

The selection process generates a direct impact on organizational efficiency and productivity in a relationship based on resource consumption -- as has been described throughout the previous sub-section. A fair and objective selection process also generates employee morale and improves the organizational culture.

e) Performance appraisal systems

The performance appraisal system at the software organization is relatively complex and consists of sustained observations of the employee in question, as well as conversations, direct interactions and analysis of the employees and his/her performance through their own lenses, as well as from the standpoint of their colleagues, supervisors and the customers with whom they interact.

The performance appraisal system supports the pay and other benefits system, as well as the promotions. Additionally, an objective appraisal also contributes to the creation of a pleasant and fruitful working environment, in which all staff members are presented with the same opportunities.

At the level of the impacts, the appraisal system generates employee morale and satisfaction due to the sense of fair opportunities to be evaluated, as well as due to the opportunity to explain and self-promote oneself. Also, an efficient appraisal system supports organizational efficiency and productivity. The scope of the appraisal process at the firm is that of being conducted without disrupting the operations at the company. All these components and features of the appraisal system contribute to the creation of a positive working environment.

f) Promotion systems implemented

The promotions offered are based on the results of the appraisal processes and this supports organizational efficiency and productivity through the elimination of inefficiencies due to frustrations. Additionally, employee morale is generated. Finally, recruitment also supports the systems of pay and other bonuses to be received. At a general level, the staff members which are promoted are presented with an increase in wage which stimulates morale and a positive organizational climate and culture.

g) Pay parts and other benefits

As it can be deduced from the previous sections, the pay and the benefits are offered as a result of the evaluation processes. The pay includes the wage which has been established through negotiations based on job design and candidate skills and capabilities. The second component of the pay system is constituted by the premiums and bonuses offered to the staff members. These are established based on the company profitability and correlated with the individual performances of the each staff members.

At the level of the other benefits, these refer primarily to life insurance, the offering of lunch within the company, the initial training programs upon joining the firm, multiple social gatherings and flexible working schedule. The flexibility of the working schedule is indicated by the possibility of the staff members to come in two hours late or leave two hours early and recuperate the time during the duration of the week. The staff members are allowed to do this at most twice a week and they have to recuperate the time during the current week -- if they only used two hours -- or during the current and the following week -- if they used 4 hours. The flexible working schedule impacts the work / life balance of the staff members by allowing them to resolve their professional issues and then return to work. And this also impacts organizational efficiency and productivity.

Specifically, an employee who is worried about a sick child or who has to pick a parent up at the airport (and so on) will not be able to perform at his best standards as he/she will continually focus on their personal problems. When the employee is allowed to resolve his/her problem, they can do so and then return to work in a more productive state of mind and they can focus on their professional tasks and responsibilities.

The balance between life and work is also supported by the financial rewards which allow the employees to complete their personal desires with the money received from the firm. The system of pay and other rewards support the creation of a positive working environment and a fruitful organizational culture in which employee morale is increased, efficiency is promoted and personal balance is achieved.

h) General supervisory styles

The general supervisory styles at the software company are rather permissive and democratic. The company lacks in vertical hierarchies and decisions are made and implemented horizontally. The supervisors play the role of guiding the employees and ensuring the link between the company and the customers.

Communication is continually encouraged and the ideas of the staff members are considered for implementation. The organizational culture is one which integrates the staff members into the larger organizational family. A major part in this culture is played by social gatherings during which the employees and the managers interact in more friendly circumstances and solidify the relationships between them.

The general supervisory style impacts the organizational culture, which is in turn perceived as one of the most powerful ones at a regional level, and as such a competitive advantage in attracting new employees. It positively impacts the levels of employee morale, as well as the organizational efficiency and productivity.

5. Conclusions and recommendations

The modern day business community is extremely dynamic and the human resources management system plays an incremental part in the administration of firms, as well as in their creation of competitive advantages. The mechanisms each firm employs in the management of their staff members varies based on the specifics of their staff, situation, company or industry. In order to reveal the specifics of the HRM system implemented by the software organization, a multifold approach was implemented. The analysis focused on eight elements, each of them having been assessed in terms of the support they created for the other components of the HRM system, as well as in terms of the impact they generated upon various organizational components.

The training programs are limited to the integration of the new employee within the project. This creates opportunities for junior developers, but the senior developers and the higher rank programmers are presented with limited training opportunities. In other words, the first recommendation is that of creating more professional development opportunities for the staff members. The implementation of this recommendation would increase the organizational levels of efficiency and productivity, as well as the morale of the staff members. Ultimately, organizational success would be enhanced.

The second recommendation is offered in the context of the pay and other benefits. At an industry level, the software organization does not promote its staff members with highly competitive salaries. This in turn means that the programmers and the administrative staffs are attracted by higher wages which can be offered by competitive firms. The company has lost several of its best employees in such circumstances, and registers high rates of employee turnover. The current policy is that of hiring junior developers and forming them into the organizational culture. This organizational culture is one of the best and most attractive at a regional level and the company as such succeeds to attract and impress new developers. In time however, the employees become disappointed by the limited benefits, searching as such better employment opportunities.

In essence, the company hires young developers and forms them, to have them move to competing firms due to wage dissatisfactions. This problem is highly important and it can be addressed through the offering of more benefits for the staff members. On the one hand, improvements ought to be observed at the levels of the salaries offered in the meaning that these should be increased so that they are competitive.

On the other hand, improvements should be observed at the level of the non-financial benefits, with particular emphasis on flexible working schedules. At this point in time, the flexibility of the schedule is rather limited, with the 2 + 2-hour limit being insufficient to ensure high levels of balance between the personal and professional responsibilities. The software domain is one in which telecommuting is not only possible, but also common. So the recommendation is that of increasing the flexibility of the schedule. Employees should be asked to be present in the office during specific times in which team collaboration is crucial, but aside from this, they should be allowed to work from remote locations at various times, on the condition that they perform their tasks.

These two recommendations would help increase the already existent organizational strengths and would reduce the company's weaknesses, to make the firm even more appealing as an employer and more competitive as an economic agent. In other words, it would create an even stronger HRM system, in which the component elements better fit together.

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