BSMH3093 HUMAN RESOURCE INFORMATION SYSTEMS

A192 (GROUP A)

CASE STUDY 1
HRIS @ NISSAN: A NEW ERA IN HUMAN RESOURCE MANAGEMENT

SUBMITTED TO:
DR. HADZIROH IBRAHIM

SUBMITTED BY:
Jamilo Nur Sheik Mohammed 249858
Nur Ardilla binti Idris 259001
Nur Adini binti Mohamed Sohaimi 259027
Nur Fatin Nabila binti Pauzan 263415
Syaheerah binti Zamree 267687

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1.0 ISSUES: BENEFITS

As mentioned in text given Nissan company new recruits are promised job until their

retired. Their packages were meagre but increased with their seniority in the company. The

main issues clearly show that the picture of personnel management in the organization where

the promotion and performance have no relation. Plus in Nissan their culture also does not

promote promotion based rewards where they believe in egalitarianism and fairness.

1.1 SOLUTION 1

In order to solve this problem in Nissan, the company itself should create an interesting

reward plan to their employees where this kind of reward can retain their employees in their

company. Reward plan in a business organization is the way which it is strategies and policies

to reward the employees to a fair standard and in accordance with how the organization values

them. Basically in order to make a fair interesting reward to their employees Nissan should paid

their employees based on their performance.

The main aim of create reward plan in Nissan company is to reward their employees

fairly for the work that they have completed. Other than that it can help to motivate the

employees in Nissan to work hard in order to achieve the goals which are set out by the Nissan

company. Reward plan in business organizations not only have of financial rewards such as pay

but they also have of non-financial rewards like employee recognition, employee training and

development and others.

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1.2 SOLUTION 2

Other than that, in order to solve this issue, Nissan should introduced promotions. A

promotion is a form of recognition for employees who make an effective work contributions. It

must be available for those employees who play any role in the contribution of work and value.

The benefit of promotion is it can help Nissan company to recognize the performance and the

hard work of their employees and hence can makes their employees feel valued. When an

employee’s efforts are valued, they tends to work harder and more effective.

A promotion also can improve the ambition of employees and can increase their interest

in order to reach their goals. Other than that, by introduced this promotion it can increase

motivation and loyalty of employees. For example, an employee who gets promoted tends to

feel more inspired and motivated to continue doing the good work. This also increase in

motivation which can lead to good productivity in works.

2.0 ISSUE: LACK OF COMMUNICATION IN THE ORGANIZATION AND STILL USING

HUMAN RESOURCE PERSONNEL TO HANDLE ADMINISTRATIVE TASK.

One of the issues is, there are lack of communication between the employees and the

top management. Based on the case study, it says that Nissan lack one of the main Japanese

traits which is team-work because the management only care of their day-to-day operations.

Also, their vision and mission are not in place and the company have no Human Resource

policies which was a reason for severed relationship between workers and management. Other

than that, they are suffered from heavy bureaucracy. The seniority in the organization plays a

big role because Nissan depicted Japanese culture in its practices that led to senior positions

being held by senior workers.

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2.1 SOLUTION 1

Back then before Human Resource Information System being implemented in the

organization, it is hard for all the employees to finish their work. But after Nissan partnered with

Enwisen to develop the Human Resource Serviced Center and PeopleSoft to implement the

Nissan Human Resource Information System, they can provide the organization support for

communication and also to standardize the Human Resource practices throughout the

organization around the world. Also, it is easier for the employees to access any information

regarding Human Resource related such as their payroll, benefits plan and others because it

can be made available for 24/7. Besides, it can improved work life of the employees as it helps

employees to find information faster than before because it is more efficient and effective.

Hence, it created the transparency in the system so that it can unite the employee and

management.

2.2 SOLUTION 2

The old bureaucratic system should be opposed because they have suffered from heavy

bureaucracy in the organization. Besides, the open communication should be emphasized in the

organization so that it is easier for the employee to handle the HR system more efficient and

effectively. The culture of only senior people can hold the senior positions in the organization

should not be implemented in the organizations as we should give chances to new recruits to

hold the highest positions if they have what it takes. Next, Nissan should create a culture in the

organization so that they can see which direction they are going.

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3.0 ISSUE: NO PROPER PERFORMANCE EVALUATION SYSTEM.

Nissan is facing human resource management problem that affects the company’s

performance as well as the profit. Nissan implemented the heavy bureaucracy as the company

culture. Based on this concept, this company assumes that seniority is important than the level

of performance of the employees. This means that employees are not evaluated based on their

performance but based on the seniority. As said on the case study, senior worker in the

organization will get the highest paid and the senior position are held by them. This problem are

affecting the employees’ job satisfaction and employees’ performance. We can see that Nissan

is poor in managing the human resource management. The number of sales also declining and

the amount of debt is increasing.

3.1 SOLUTION 1

Nissan should consider of having a more systematic system in order to be fair with each

level of employees in the company. We know that Human Resource Information System (HRIS)

can be an important aspect in managing the affairs of the employees more efficiently. The KPI

can provide an unbiased aspect to the performance review. The KPI will be provided and the

employees need to follow the requirements that have been made in the performance evaluation.

This system can help the Human Resource Manager to manage the employees efficiently and

they can decrease the time consume in the performance evaluation process. Besides,

employees also will do their task efficiently in order to achieve the KPI and to comply with

prescribed standards.

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3.2 SOLUTION 2

Implementing the HRIS is a solution that helps the company a lot which includes

minimizing the administrative task. All administrative and transactional tasks were removed from

HR personnel and the dynamic employee portal was made accessible to all employees on a

24/7 basis. In terms of performance evaluation, Nissan can use the automated performance

management software because it can ease the management to set clear goals, delivering

supportive feedback and improve target. This system has advantages that can help the HR

management in Nissan become more efficient. First, the system can link the performance of the

employee with the pay. The automated measurement system is used for performance-pay links.

By implementing this solution, the company can control the employees as well as ensuring the

company’s performance always on track.

4.0 ISSUE: RECRUITMENT.

Based on article of HRIS@ Nissan: A New Era in Human Resource Management, an

issue related with recruitment is Nissan led to senior position being held by senior people in the

organization, who had been around for years. This is unfair for a new recruit joined at the entry

level in the organization and were promised jobs till they retired. New recruit not receive the

position that they deserved for but they need to give the opportunity to the senior worker who

sometimes lack of fresh ideas and lack of knowledge about technology.

4.1 SOLUTION 1

The potential solutions for this issue are Nissan changes in Human Resources of recruitment

practices by Ghosn which is new comers were given higher wage with performance-based

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reward. Incentive compensation is meant to reward behavior that increases the performance of

the organization. Thus, the bonus pool should be funded by meeting financial targets.

Employees need to understand that money is flowing into the bonus system only when the

company is growing successfully. This is fairer to the new recruits and will motivated them to

work efficiently.

4.2 SOLUTION 2

Secondly, the solution to this issue is give the opportunity to the new recruits to hold senior

position if they really deserved based on their skills, abilities and knowledge about the

organization and give them opportunity to expand their abilities. This solution can make Nissan

exist a new fresh idea, new opportunity and increase their opportunity to compete with other

organization and produce new product. Based on Florae (2014) argued that merit and demerit

of the use of recruitment agencies to a firm is the same thing with that of external recruitment

sources which he listed be qualified personnel, a wider choice of candidates, fresh talent,

competitive spirit among candidate.

5.0 ISSUE: COMPENSATION

Nissan shows that they do not promote performance-based rewards, because they

believe on egalitarianism and fairness. Their culture also shows that they have poor work family

balance as they come to work on holidays and work overtime. This is because they might think

that it is more faithful to the organization. Based on Journal of Advanced Research in Social and

Behavioral Sciences Volume 8, compensation and benefits is very important to the workers to

perform their job wells. Compensation and benefits are referred to what workers receive in the

form of pay, wages, monetary and non-monetary rewards as an exchange to what they serve at

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workplace. According to Armstrong, there are three dimensions of compensation and benefits

which are direct financial compensation and benefits, indirect compensation and benefits and

non-financial compensation and benefits.

5.1 SOLUTION 1

The first solution is compensation system was completely revamped with more Performance-

oriented pay system and a “commitment was emphasized upon”. Nissan organization need to

give benefits to the employees to improve their job performance. Employees deserve receive

the work or life balances to make sure they can balance their personal life and work. This way

can improve their performance and let them forget their work for a while and release tension.

Nissan also need to serve them merit pay, allowances, incentives to make sure they get the

rewards based on their performance and to retain them in the organization.

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REFERENCES

Belyh, A. (2015, July 6). When and how to promote your employees. Retrieved from

https://www.cleverism.com/when-and-how-to-promote-your-employees/

Brounteisn, M. Using financial incentives to motivate employees. Retrieved from

https://www.dummies.com/business/human-resources/employee-engagement/using-financial-

incentives-to-motivate-employees/