Several new and emerging technologies can help improve the effectiveness of Human Resource Management (HRM). New technology usually involves automation –that is, replacing human labor with equipment, information technology (IT), or some combination of the two. HRM is no longer confined with administrative matters. This traditional stereotyping has long gone. HRM now plays a more strategic role in businesses. Machines nor software do not run or make a business thrive, people do. This is one of the most important reasons why more and more organizations are investing on the best talents they can find in the market to suit their needs and goals, develop and implement Business Process Management (BPM) systems, stay competitive, get a huge share of the market, increase its profits while lowering operational costs, and more.However, Strategic HRM is not easy. Reengineering business processes that involve people and dynamic change is difficult. One barrier to this initiative has been the lack of visibility and ownership for processes that span functional departments or business units. In addition, the business often changes faster than how people can adopt to these new processes, thus stifling efficiencies, productivity and business growth. The practical solution is an integrated and holistic approach to business management through BPM.
What is Business Process Management or BPM?
Some would think that defining it would be simpler, in part because BPM solutions are now commonplace among business applications catering different needs. However, in layman’s terms, BPM is a systematic management approach where organizational goals and processes are being aligned to customers’ needs, wants or requirements. It is not software engineering as some may assume, although it has its entire semblance in procedure. Because like software engineering, it starts with requirements, information gathering, establishing the relationships of these data, and in the end develop a solution that can be implemented over a computer or network of computers. No wonder that BPM functionality is sometimes found in packaged enterprise applications such as ERP (Enterprise Resource Planning), CRM (Customer Relations Management) and various financial software. But BPM in its entirety incorporates all of these.BPM manages business processes that include work steps and procedures, communications, and interactions of several systems. In addition, BPM solutions include integrated features such as enhanced process modeling and simulation, code generation, process execution and monitoring, customizable industry-specific templates and UI components, and out-of-box integration capabilities along with support for Web-services-based integration using Business Process Execution Language (BPEL) like what Active Endpoint offers, and more.
Moreover, like Total Quality Management (TQM), BPM is a holistic management approach that promotes business effectiveness and efficiency while striving for innovation, flexibility and integration with technology. Likewise, it hinges on the principle of continuous improvement or the Japanese management principle of KAIZEN. BPM is primarily aimed at improving business processes on continuous basis.
How do Human Resource Management and Business Process Management Complement?
Suffice to say that HRM is inherent in BPM, and vice versa. Other than these structural arrangements or integrations, BPM enables the HRM function to implement HRM programs and deliver HRM services in a more efficient and effective manner.On the one hand, BPM reviews and redesigns critical work processes to make them more efficient and effective at delivering higher quality outputs. BPM ensures that the benefits of new technology or systems can be realized. Needless to say that applying new technology to an inefficient business process will not improve efficiency or effectiveness. Instead, it will increase operational costs and eventually business losses. Implementing BPM can be used to review HRM practices, functions, and processes, such as human resource planning, recruitment, job designs, performance management systems, salary and benefits administration, and other critical functions.
On the other hand, HRM provides the impetus and human resource structure for the effective rollout of BPM solutions. This can easily be seen when business processes are reviewed, redesigned, and realigned to meet business criteria and goals. While BPM automates, integrates, and improves business processes, HRM ensures that these are being implemented and monitored by competent personnel. In addition, as CIO.com puts it,
BPM is often used to integrate multiple enterprise applications and various internal and external users into a new process. Enterprise application integration products help you move data between applications; BPM adds interaction with people and the ability to support long-lived processes. People are involved in two ways:
- From a worker point of view. BPM represents units of work from the business process as tasks; each task contains work instructions, status, priority, due date and other attributes. Workers use BPM to monitor and execute the tasks that are assigned to them or to the workgroup to which they belong.
- From a manager or executive point of view. Managers and executives use BPM to monitor process performance by viewing graphical reports that summarize task status and alert them to process bottlenecks. They also frequently get involved with tasks by participating in approval or escalation process steps.
Conclusion
Where do these bring us?Let me say that, managing a business through fast, efficient, effective, and improved business processes is of paramount importance for businesses who want to provide value to their customers, enhance their corporate image, improve deliveries and services, outlive their competitions and survive any economic recession. HRM is essential in any BPM initiatives and solutions. Vis a vis, BPM can largely improve HRM strategic role of building the business’ competitiveness.
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About the Author
Nor Franco is the Managing Director and Virtual CEO of nextManager.net. He's a former corporate executive whose passion is bringing out the full potential of HR in Businesses. This time that passion is pursued through Virtual Management. He writes and blogs about his management views and insights here. Follow him on Twitter.
