In: Operations Management
What changes would you recommend to the HR system/architecture and why? For the two companies Lincoln Electric and SAS
Lincoln Electric- HR Practices:
The HR practices in Lincoln Electric had always played a very vital role about the company’s success in the US. They achieved this by featuring a very strong integration of recruitment and selection with great compensation & benefits. Employee communication, career development and the performance management are the three other factors for the company’s success.
The company selects successful candidates through a strict screening process and gives main preference to the internal employees. This in turn makes the employees to be in a sufficient space for the development and also helps to ensure the workforce stability.
The open communication policy of the company helped them to create a very friendly atmosphere at work. This made their employees to feel that they have been treated equally which in turn would contributed to their overall efficient production.
Even though the company has a strong HR team with very strong policies, strategies and business ethics, there are still some issues on which the company’s HR team will have to combat with. They are explained as below,
Analytical capabilities
It is a known fact that Lincoln Electric has a very strong data management. But this does not guarantee the company’s workflow improvement and analytical skills. The company will have to depend on new HR software’s like Gusto or SAP Success factors which can analyze the raw facts to generate a stream of information typically like the recommendations and verified projections. The use of paper makes the company’s elaborate analysis very unfeasible, which is a factor for the company’s detrimental to the productive workflow.
This HR software also can ensure on the deployment of the right resources on the right job which would in turn produce the exact inputs and outputs needed.
Risk Management:
Lincoln Electric’s Production workflow faces many endless risks regarding their legal implications. This becomes very true especially when there is a misunderstood communication among themselves. During a legal suit, it is very common to hear an employee who can deny reading an e-mail or also they could claim that they were not properly trained. Implementation of HR Software like Sage would help in sorting out the read and accept option problems with the employee. This means there is a zero chance of the denial if any conflicts arise. This in turn would be a minimization factor of friction effect in Lincoln electric that and on the other hand would be an improvement of workflow
SAS- HR Practices:
Human Resource functions and the people policies play a very vital role in the success of SAS. According to the basic information available on their website, it is understood that the HR system in the organization would be responsible for the development and guidance their vision and mission. The HR team also involved in articulating the organization’s strategy to help in acquiring, developing, rewarding, and also retain the best talent within the company. HR department in the company’s headquarters has a huge team of over a 100 employees who partners with SAS business units in order to maximize SAS’ potential greatest asset, the employees, by delivering the best HR programs which would drive innovation and their creativity.
As said above the company has a huge HR team which is a considered as great strength of the company, but there are still some technicalities and factors that the company has to work on with. Two out those are explained as below,
Collaboration:
HR technology at SAS mostly do not let the managers and the other employees collaborate during their performance-review process. This case has to be considered by the company in high priority. According to the Society for Human Resource Management, 90% of the HR professionals believes that a combination of the feedback from the employee, their manager and also the others in an organization would create an accurate picture of any employee performance.
Real-time feedback.
A real time feedback at SAS is extremely important because it can ensure SAS’s employees could receive a feedback when they desperately need it and also, they could correct themselves accordingly. According to the Society for Human Resource Management, only 2% of employers undergo ongoing performance reviews. For SAS, to reach their highest efficiency and potential, they will have to change their policies and make changes to receive real-time feed backs regarding their process from every employee of the company.
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