2012 International Conference on Information Management, Innovation Management and Industrial Engineering
The Research of Human Resource Management in Enterprise
Based on the View of Innovation
Feng An
College of Business Administration,
University of Science and Technology LiaoNing,
Anshan, China
e-mail: Af218@126.com
Abstract—As market-oriented economy develops, the
competition between enterprises has become increasingly fierce.
Examples have shown that human resource is a key to survive
and develop for enterprises. In the new era of economy based
on knowledge, innovation, globalization, network and
technology, enterprises need their human resource to have the
characteristics such as creativity, individuality, variety and
sense of cooperation. Therefore, human resource management
has to be innovated and new enterprise culture should be built
based on the new characteristics of human resource in order to
make full use of the talent of human resource. Successful
human resource management, which improves the knowledge,
skills, attitude and behaviors of the staff , is the key for
enterprises to gain and keep their advantage in competitions.
This article mainly explains the importance of innovation in
human resource management and analyses the current
problems. Several ways of reformation based on the idea of
innovation are also suggested in this article.
Keywords-human resource management ˗ innovation ;
enterprise; research
I. INTRODUCTION
Human resource management innovation refers to
reformations on the idea, principles, strategies and
organizations of human resource management. It contributes
to the sustainable development of an enterprise. Its main
purpose is to improve the efficiency of the departments and
the performance of the staff.
Nowadays there is a rapid development of economy in
China and Chinese enterprises are expanding continuously.
On the other hand, international enterprises are also
becoming more competitive. These factors lead to severe
challenges for all the enterprises. Human resource is the
fundamental factor for enterprises to develop. Therefore,
human resource management innovation is needed in order
to keep the creativity and ensure the success of an enterprise.
II. THE IMPORTANCE OF HUMAN RESOURCE INNOVATION
Efficient human resource management can lead to win-
win situation for both the enterprise and the staff. It satisfies
the needs of the employees and encourages them to make
more contributions to the enterprise. Western countries have
been researching on strategic human resource management.
In contrast, human resource management in China is less
978-1-4673-1931-7/12/$31.00 ©2012 IEEE
318
Bing Wang
College of Business Administration,
University of Science and Technology LiaoNing,
Anshan, China
e-mail: liaoningkdwb@163.com
advanced both theoretically and practically. As Chinese
economy develops, research on human resource management
is developing as well. In order to achieve development and
success, enterprises need to innovate their human resource
management strategies. The level of human resource
management determines the overall creativity of an
enterprise.
III. CURRENT PROBLEMS IN HUMAN RESOURCE
MANAGEMENT
A. The Lack of Consciousness of Strategies as a Whole
Human resource management strategies are based on the
strategic objectives of enterprises. Activities on human
resource management are guided by these strategies.
Nowadays many enterprises have not realized the importance
of human resource management planning. Supply-demand
relation of human resource is not evaluated and human
resource reservation is not sufficient. There is no strategic
planning on developing, managing and applying human
resource[1].
B. The Lag of Management Perspective
A considerable number of managers lack of professional
knowledge and are not qualified to fulfill their responsibility.
Human resource management is not considered important
and done roughly and carelessly without using suitable
techniques[2].
C. The Ignorance of Staff Training and Development of
Their Potential Capability
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D. The Lack of Effective Incentive Systems of Talents
Unlike other kinds of resource, human resource needs
encouragement in order to perform well. Many enterprises
are not aware of this point and they do not have incentive
systems corresponding to the characteristics of their staff [4].
The unsuccessful incentive systems focus too much on
material reward and ignore the psychological needs of the
staff. What’s worse, some enterprises even do not have a
clear standard of rewards and punishments. These factors
will diminish the working enthusiasm of the staff and make
them unconfident about the enterprise.
E. The Imperfection of Performance-assessment System
Performance assessment is considered as one of the key
content of human resource management. Many enterprises
have realized the importance of it. Despite the exploration
currently done, performance assessment is still a problem
hard to solve for the managers. Many enterprises do not have
a clear standard and the assessors can be subjective. The
method of performance assessment is also hard to formulate.
Unprofessional performance assessment cannot give an
accurate and fair evaluation of the employees.
F. The Ignorance of Building Human-oriented Enterprise
Culture
Enterprise culture is the cohesive force in enterprise
development. Many enterprises have not realized this point
and ignore the construction of enterprise culture. Although
enterprise culture cannot produce real profit for the company,
it is still important [5]. Enterprises without culture will not
keep their competitiveness in the modern society. Successful
enterprises always insist on human-oriented enterprise
culture and guide their staff to behave in a standard manner.
In this way, enterprises will keep their vitality.
IV. METHODS OF HUMAN RESOURCE MANAGEMENT
INNOVATION
Peter Drucker , who is regarded as The father of modern
managementˈonece said that there is only one real resource
in enterprises, which is human. Management means to
develop human resource in order to achieve better
performance.
A. Scientific Plan on Human Resource Management
Making a scientific and effective plan on human resource
management is required for an enterprise to develop. It is
considered as the foundation of sustainable development.
Therefore, managers should pay more attention to plan
making in order to use human resource in a reasonable way
corresponding to the need of the enterprise and increase the
efficiency of the departments. When making plans, several
factors should be considered.
x Changes in Internal and external environment
Plans for human resource management can satisfy the
needs of enterprise and lead to success only if changes in
Internal and external environment are taken into
consideration. Internal changes refer to changes in sales,
development strategy and staff of the enterprise. External
changes refer to changes in market, human resource policy
and talent market. In order to adapt to these changes, there
need to be predictions and solutions for possible risks in the
future.
x Guarantee of human resource sufficiency
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How to ensure the human resource sufficiency in
enterprises is the core problem that needs to be solved when
making plans. It includes predictions about staff inflow,
outflow and internal exchange, analysis of human resource
supply in the society and so on. Only if the supply of human
resource is guaranteed, enterprises can be able to achieve
further management and development on human resource.
x Benefits for both the enterprise and the staff
Plans for human resource are not only beneficial for the
enterprise, but also for the staff. The development of the
enterprise and the progress of the staff can actually reinforce
each other. If the plans are made only for the enterprise and
ignore the staff, the enterprise will find it hard to achieve
success. A good plan for human resource must be one which
has long term benefit for the enterprise and the staff and help
both of them to improve.
B. Reformation of Management Concept and Adoption of
Individual Management Method
The new era for economy changes the external
environment of the enterprises. As the cultural background,
individual psychology and working styles of human resource
are various, enterprises have to consider about the different
needs of their employees. Enterprises should realize that the
key resource in future is not financial assets, but human
resource. Staff should be considered as the most important
factor in a company. Managers should respect the employees
and communicate with them in order to understand them
better [6]. Work arrangement should be based on the
characteristics and advantages of the staff. There should be
scientific human resource management methods and
advanced managing systems to improve the enthusiasm and
efficiency of the staff so that they can make more
contributions.
C. Multidimensioned Incentive System
Incentive system should focus on the characteristics of
the staff and meet the different needs of different employees
as the education level and characteristics of each employee
are different. Managers should increase their communication
with the employees and enhance their understanding of each
other. It is also important for the staff to learn to incent
themselves. Enterprises should make the employees realize
that they should be responsible for their work and their self
development. Reasonable remuneration system should be set
up based on the willingness and satisfaction of the staff.
Incentive system should be designed to benefit the interest of
both the enterprise and the staff.
D. Application of Effective Performance Management
Performance management focuses the common interest
of the organization and individual employees. It aims to let
the employees and the enterprise to make progress together
to achieve win-win situation. The core idea of performance
management is to always focus on the human resource.
Traditional performance assessment system only pays
attention to the examination of the work done by the
employees. In contrast, modern performance management
system is considered as a cycle consists of performance plan,
performance training and performance assessment and
performance feedback. Each of the parts needs the
participation of the staff and the managers [7].
The key factors affecting the performance of the staff are
the working skills of the staff, external environment, internal
environment and incentive effect. Working skills can be
improved by staff training. External environment is an
objective condition which cannot be controlled. Internal
environment refers to all the resource needed by the
employees and departments to finish the work, which is also
an objective condition but can be controlled to some extent.
Incentive effect means the enthusiasm and willingness to
work of the staff and departments, which is a subjective
condition. From the performance management model (Fig. 1)
we can see the methods to achieve effective performance
management. Reasonable goals and restricting mechanism
should be set up for the individuals and departments to make
the employees put effort into fulfilling the aim of the
enterprise. Thus the performance of the individuals and the
departments will be improved. Through regular performance
assessment, managers can praise the achievements of the
staff and point out the shortcomings. Contributions made to
achieve the goal of the organization will be rewarded and the
behaviors which harm the interest of the organization will be
restricted. This system will encourage the staff to develop
their ability and improve their working skills to achieve
better performance.
Figure 1. Model of performance management[8]
E. Setting Up Staff Training System Combining the
Strategy of the Enterprise and the Career of the Staff
Staff training is an important method for human resource
to improve and for a company to increase its efficiency. Staff
training should be emphasized as a systematic project in the
strategic development of a company according to the long-
term requirements. The purpose is to establish a staff training
network of multi-level, variety and diversity. Besides, we
need to focus on the cultivation of innovative competence of
employees to explore the potential of manpower resources
during practice [9]. Hence, staff training should meet the
need of management and development of the company as
well as the career development of individual employees.
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First of all, there should be a clear analysis about the
needs of the employees for staff training. Here are several
methods to do the survey:
x Confirm the key point of the business by using
business analysis. Use the view of foresight to
include new business into the training in order to
match up the overall development strategy of the
enterprise.
x Confirm the working condition and responsibility as
well as staff quality by using job analysis and define
the content of staff training.
x Understand the disadvantages of the employees by
survey or interviews in order to know what kind of
ability they need to learn. Combining the need of the
enterprise, the focus of the training can be confirmed.
Secondly, suitable training strategies should be chosen
based on the requirements of the enterprise and the staff.
x Set up the system combining training of the
enterprise and self-study of the employees. As
human resource has strong self-study ability, the key
point is how to guide the staff to study for the
enterprise to satisfy the needs of development is the
key to human resource management innovation. In
the progress of training design, there should be
intentional encouragement and guidance to lead the
staff to serve for the enterprise. For instance, the
enterprise can provide research condition, more
chance for study in external environment and awards
for the staff when contributions are made.
x Combine on-the-job training and off-the-job training.
On-the-job training refers to improving the
employees’ working concept, working skills and
social skills by work guidance, work practice, work
exchange and work arrangement. Off-the-job
training refers to improving the working knowledge,
skills and attitude of the staff by education of
necessary ability during special training program.
F. Value the construction of enterprise culture
The enterprise must respect and trust the staff and guide
them to have the sense of enterprise culture. The principles
of human resource management have to take the habits and
characteristics of the staff as well as the creativity and
inclusively into consideration and build common culture,
value and regulation in the enterprise [9]. On the other hand,
all the departments should be encouraged to form their
special characteristics in order to make the working
environment more relaxing. The construction of enterprise
culture is important for increasing the cohesive force of the
enterprise[10]. Good cultural environment can improve the
loyalty of the staff. It is especially important for the key staff
in the enterprise. The enterprise should give care to them,
such as arranging medical check and holidays. These cares
will enhance the willingness to contribute of the staff. The
construction of human-oriented enterprise culture is a long-
term work. The human resource must be considered as the
most important factor in order to increase the motivation of
the staff and the profit of the enterprise. Therefore, it is
necessary for the enterprise to construct a positive, trusting
and respecting environment.
V. CONCLUSION
In conclusion, as human resource management
innovation being developed, improvements are made in
several aspects. However, we still have a long way to go
compared to the advanced western countries. We should
keep improving human resource management techniques in
order to adapt to the new era and lead the enterprise to
develop.
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