Case survey
Summary of instance
The studied company was Company X that located in Latvia. It was a subordinate company of Company P that conducted its concern in 27 states, hired 11, 800 people and supplied metal-based constituents, systems and incorporate systems to the building and technology industries. Company X was a middle-size fabrication and building company which set up in 1995. It had approximately 110 employees and classified as top five building houses in Latvia’s building industry harmonizing to its runing income. It implicated in few types of undertakings recently, the undertakings were lodging and high-tech edifices, substructure and mass transmit undertakings both in Latvia and on board.
Company X attempted to heighten undertaking advancement tracking and resource direction in multi-project environment. In the past, different concern maps of Company X such as accounting, production, selling and buying used different information systems. The old system used by the company had it ain ways to garner and maintain information harmonizing to demands. Short of functional integrating causes troubles in transmittal of message and coaction between different concern maps is job of the old system.
Prefabrication and building procedures were work procedures of Company X. The two procedures operate at the same time. If production mill did non provide constructing stuffs on agenda, company demand to bear cost of hold at building position. However, if the stuffs produce excessively early or when they non needed so company demand to bare cost to hive away the extra stuffs such as warehousing. Operation of the stuffs of Company X became complicated and influenced advancement of others undertakings in a multi-project environment since prefabrication procedure and building procedures must be complement to each other.
Company X began a two months assessment and research to happen out was at that place possibility to show and use an ERP system in twelvemonth 2007. A undertaking group was formed by the company in order to manage ERP implementation’s affairs. Director from IT section became project director of the group. Besides, the group besides involved three forces from production, accounting and gross revenues sections and one outsourcing seller. When the system assessed by the company, employees kept standard latest information about the system and they encouraged to give feedback on the new system. Finally, the chosen system was iScala as other representatives at other states use this system.
A cardinal ERP fabrication group was established after Company X decide to utilize the system. The group consists of four section representatives from the company, three external IT advisers and two IT advisers from parent company. Persons that elected for the group were people from specific section who were familiar and understand sing ERP systems. Besides, they had attended and participated in professional activities with regard to such system. They besides participated in the assessment treatment. ( Tambovcevs, 2012 )
Strength
Company X able to find staffs who talent in Information Technology ( IT ) and who can easy accommodate to new engineering system of company. Staffs are most of import and valuable assets ( Duncan, 2013 ) . Every company needs manpower to run and carry on concern procedure swimmingly. Staffs are people who contribute and help company to accomplish organisational aims and addition net income.
After staffs of Company X learn and accommodate new system and engineering it increases nucleus competences and typical competences of company. Core competences are competitory advantages for company which non easy copy by rivals ( “ Core Competencies Working Definition, ” 2010 ) . Distinctive competences are a company’s particular ability to make and direct value to consumers which help to distinguish your company from rivals and guarantee your success will be go oning in long-term ( “ Distinctive Competence or Nothing, ” n.d. ) .
Resource-Based View ( RBV ) is method to analyse and place strategic advantages of a house based on combination of assets, accomplishments, capablenesss and intangible assets such as trade name name, repute and engineering cognition. Each company hired staffs with different degree of accomplishments, capablenesss, cognition, behaviour and attitudes so each company have different and particular group of human resources, which will convey different degree of accomplishment. ( Pearce & A ; Robinson, 2013 )
As Company X Lashkar-e-Taiba staffs travel through preparation to larn the new system, it indirectly increase IT knowledge of them which will increase satisfaction of staffs because some staffs like to larn new things and derive new experiences. Besides, operation procedure that utilizing new system will travel swimmingly as staffs ever pattern how to utilize the system.
Failing
Implement new ERP system in Company X may do struggle between ERP adviser and staffs of the company. The advisers think the system is a manner to work out company’s job but staffs feel old system is really convenient for them because maps of the old system are what the company needed ( Molla, Loukis, & A ; Licker, 2005 ) .
So, the staffs consider the new ERP system of Company X is more hard to utilize so they unwilling to larn utilize the system. It increase implementation period of the system every bit good as addition cost of execution of company. In add-on, if the staffs still non willing to utilize new system, it will cut down gross revenues, efficiency of company’s work procedure and company public presentation. ( Molla, Loukis, & A ; Licker, 2005 )
If a company wants to successfully implement ERP system, it needs to happen out the chief factor that causes the execution to be fail. ( Gattiker and Goodhue, 2005 ) . Harmonizing to Bobek and Sternad ( 2010 ) , “ERP training” affect credence of terminal user for ERP system. If staffs willing take part formal and informal preparation, they are more skilled to utilize ERP system ( Bobek & A ; Sternad, 2010 ) . Credence of terminal user for new ERP system is most of import factor to find whether the system is successfully implement in company. ( Seymour, Makanya & A ; Berrange , 2007 )
Opportunity
During a company implement a new ERP system, it will alter occupation description and accomplishments require by company. In add-on, certain new place may bring forth whereas certain place will be remove by the company. ( Danford, 2010 )
Company Ten can implement a talent direction plan when it implements ERP system. The talent direction plan aids company to steer staffs throughout the procedure of implement ERP system. It train and develop staffs to set and acquire ready themselves to new places and functions after execution of the new system. ( Danford, 2010 )
By implement talent direction plan, Company X able to find gifted staffs, staffs with alone accomplishments and accomplishments need for a new place. Apart from that, Company X can put up new compensation or wages program for staffs that learn how to utilize the new system. Staffs ever want their part will be rewarded by company. Reward is driving force for staffs to give their best part to company ( “ 4 Ways to Reward, ” n.d. ) . As staffs satisfy with company they would non go forth and bewray the company ( Martins, n.d. ) . After Company X implements new ERP system, occupation demand of company will alter. The alteration is due to Company X want to engage right campaigners for right place which enable Company X to salvage cost of hire incorrect campaigners.
Menace
Younger coevals such as Generation Y ( Gen Y ) have high turnover rate which is 70 per centum of Gen Y’s staffs quit their first occupation within two old ages of fall ining a company. ( Expericnce.com ) They decide to go forth a company may non due to money but other grounds such as they feel employer do non swear them, they do non experience like a portion of a group or squad, they want immediate feedback from superior about their work, they like to utilize engineering merchandises and have flexible clip to work. ( Maffin, n.d. )
After Company X let Gen Y staffs go through preparation, they know how the new system operate. Then, if they decide to go forth Company X due to non fulfill with the company or have better publicity from rivals. It may do a great loss to the company in footings of human resource and cognition that they learn from Company X.
Staffs who leave Company X and work for rivals may unwrap what system usage by Company X and how the system runs to rivals. Company X will non hold competitory advantages to vie with rivals in market. So Company X demand and seek to fulfill the staffs particularly Gen Y’s staffs in order to vie with rivals. ( Dantes, & A ; Hasibuan, 2011 )
Recommendation
Company X should capture chance, overcome menace and beef up its failing to hold higher accomplishment. Company X needs to cut down struggle between ERP advisers and staffs by involve senior executives in procedure of execution the new system. Trust is willingness of a individual to take hazard and make favour for another individual or party ( Mayer & A ; Davis, 1999 ) . Trust of employees towards senior executives is a cardinal component to make up one’s mind success of failure of a company and public assistance of employees ( Shaw, 1997 ) . Harmonizing to many surveies, employees trust senior executives in the company and willing to alter their attitudes that desire by the executives ( Albrecht, 2002 ) . The executives are function theoretical account for employees ( Bettering Talent Management Outcomes, 2007 ) . As senior executive of Company X besides learn and use the new ERP system, the staffs will follow their actions because the staffs trust them and perceive they are right.
Company X demand to guarantee it has good compensation program for employees at different degree in order to fulfill and actuate them to give best attempts for company and to finish their plants which will increase efficiencies and enhance public presentation of the company.
Generation Y have been identified as to be extremely educated and they willing to accept challenges. Company need to supply promised wages to them if they truly achieve a mark or end. If they do non have the wagess, they will felt non valued by organisation and take downing trust between organisation and employees ( Fernandez, 2009 ) which may do them to go forth the company.
Gen Y like non-cash wagess such as flexible work status and flexible working clip ( Schawbel, 2011 ) . They besides hope company give vacation as wages after they complete their work successfully. ( “ 10 Excellent ( non-monetary! ) Incentives, ” 2013 ) Company X has to supply wagess that need and want by the staffs in order to increase their satisfaction towards company and organisational committedness. As staffs satisfy with Company X, they are more willing to lend and work for the company. They will give their alone sentiment and best advice to increase company’s public presentation and net income. In add-on, staffs that have high degree of organisational committedness besides means they are more loyal to the company ( Al-Aameri, 2000 ) .
