Transforming Human Resources for the Future of Work

Case Study Synopsis 

Novartis is a firm that has undergone a significant change which was in the form of a merger. Due to this, the organizational management made the decision to implement a new HRIS system as a way of changing the roles and responsibilities in the HR function in the firm. However, this implementation was significantly limited by technical, managerial and organizational challenges. An example of this was the lack of standardized data and the lack of cohesion between the different levels of management. This paper will analyze the different obstacles to the implementation of the system and the solutions that may be applied. 

Case Study Analysis 

Major Challenges 

The absence of centralized data is one of the main technical challenges that the HR department at Novartis faces. Due to the firm’s operations in more than 140 nations, centralized data is essential for operational efficiency. Due to the absence of centralized data, the system has several challenges, such as the lack of set data standards across the organization. The organization also lacks an overall repository which affects the operations of the department. This lack of centralization has also increased the difficulty associated with the development of employees. When centralized data does not exist within an organization, the employees then lack access to essential information needed for optimum performance of their duties. This lack of information then restricts or limits their development. 

From an operational perspective, the organization had deficiencies in its training of management employees. There was a requirement during the merger that 70% of those within management positions would be internal employees (Wang et al., 2004). The integration of internal employees into management positions did not happen due to the lack of proper training, despite these employees having extensive knowledge of the organization and its operations. The lack of training then resulted in only 42% of managerial positions coming from within the organization. Therefore, a majority of the managers were not aware of the organizational culture that existed and did not have the needed knowledge concerning the organization’s operations. 

The absence of proper knowledge concerning the system was a considerable managerial challenge. Most of those in management positions, did not have in-depth knowledge of organizational capabilities and the implementation of the system. As an international organization, there were also differing objectives between local managers and international management. The local management preferred to implement the system in a manner specific to their locality while the international management sought to standardize the implementation of the system. This difference in objectives and preferrences affected the consistency and efficiency of implementation. 

Why Systems Fail 

One of the main reasons why these systems fail sometimes is the lack of proper planning. For an HRIS system to be functional, an organization needs to have proper plans to ensure the cohesiveness of organizational capabilities and the components of the system. Implementing a new HRIS system is a significant change for an organization as a whole and its employees. Implementing a new system usually involves significant investment in organizational resources. When no proper plans exist, the organizational management will not have sufficient knowledge on the level of resources that will be necessary to sustain the system along with the views and beliefs that employees will have. This not only results in a deficiency of resources but may also cause increased resistance to the system by the organizational staff. When employees are not prepared for the implementation of a significant change within an organization, they display a high degree of resistance to any shifts in their organizational environment. 

Lack of proper organizational and technical knowledge may also result in the failure of the system. One of the limitations is the absence of proper knowledge concerning the system by the organizational management When the organizational leadership has no knowledge or training concerning the HRIS system being implemented, then it would be properly applied in the organization. The lack of proper knowledge also means that there will be no collaboration between different levels of management. When there is no clear outline of how the system is to be implemented and existing objectives and goals, then there is no cohesion on how it is used. The lack of cohesion would then result in the failure of the system. 

Major Obstacles and Solutions 

One of the main obstacles that face Novartis in the implementation of the new HRIS system is the absence of effective communication across the organization. Wang et al. (2004) state that the system was structured to change the roles and duties of the HR function. Based on this, the presence of the system would result in a considerable shift in procedures within the organization. This shift would be necessary to ensure that they are in alignment with the new system. As an international company, the firm has more than 73,000 employees in 140 countries (Wang et al., 2004). For this level of change to be understood and accepted by each of these employees, they would have to properly understand the procedures, the changes to be made, and what the system involves. However, due to the lack of proper communication strategies across the hierarchical structure of the firm, Novartis faces a significant obstacle concerning the acceptance of the system. 

To overcome this obstacle, the organization has to set up an effective communication framework. The framework should be structured to facilitate the communication between different levels of management along with communication between managers and employees. This will ensure that all the managers involved have a proper understanding of the system and its functions within the organizations. Moreover, a proper communication framework will also facilitate the support of the system by the employees. Through the presence of effective communication channels, the employees will feel involved in the implementation of the system while being aware of the changes that will affect them. 

Role of HR 

The role of HR in organization is expected to greatly change in the future. The HR function has an essential role in the provision of communication between employees, the development of training processes, and the assessment of the productivity of the workforce. The successful implementation of HRIS will reduce the administrative tasks HR managers engage in and allow them to focus on their core HR functions. In this way, the HR function is expected to be more immersed in the daily operations that employees are involved in. HR will then have a greater focus on directing the entire organization through the dynamic industrial environment that organizations now exist in (Fenech et al., 2019). In this way, the HR function will now be more focused on change management within organizations. This is a considerable change from the present role of HR, which is mainly to ensure the satisfaction of employees within an organization. 

Based on the changes in the role of HR, several competencies will be needed. The first competency is relationship management. This competency is focused on the establishment of proper relational structures between the management and employees within the organization (Fenech et al., 2019). This is essential for gaining confidence and trust from the employees. Another competency is effective communication. As already stated, effective communication is necessary to ensure the proper running of operations within the organization. When effective communication capabilities are developed, then the employees will feel involved and readily accept changes within the organization. 

References 

Fenech, R., Baguant, P., & Ivanov, D. (2019). The Changing Role of Human Resource Management in an Era of Digital Transformation.  Journal of Management Information and Decision Sciences . 

Wang, I., & O'Reilly, C. (2004). Transforming Human Resouces at Novartis: The Human Resource Information System (HRIS).  Stanford School of Business, Case: HR-22 ,  1 (14), 04.