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Even the small, twenty-person office needs to realize the benefits of using HRIS to be more efficient. It allows companies to cut costs and offer more information to employees in a faster and more efficient way. Bradley Hall defines human resources management as watching over and growing human capital, one of the greatest aids businesses have in gaining competitive advantage. The modern human resource concept is based on four integrated parts: skills, structure, systems, and shared values. Skills are the abilities and knowledge that people bring to an organization. Structure refers to the communication channels within the human resource department, who manages and who is accountable.
Systems are the tools used to make human resource decisions, the reviews and measures HR managers control. Shared values are the less tangible beliefs and cultural strengths an organization possesses. This four-part concept has been used since the 1960s and still functions as a basic understanding of human resources in the business world. Although the basic components of the modern human resource system have stayed relatively unchanged since their inception, HR operations are still subject to flaws. HR plans to their particular needs without considering a more integrated, top-down strategy. In many cases, lower-level managers were involved neither in creating the HR processes nor in implementing them. Others chose to focus more on assumed HR positions such as compensation director and staffing director, rather than overall business strategy.
Few implemented third-party regular reports and accountability standards. There are, then, many opportunities available for companies to improve their existing HR systems. Ethical considerations are becoming increasingly important to HR departments in American industries. A tension often exists between a company’s financial goals and strategies to improve profits, and ethical considerations with right-behavior concerns.