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  • New Business Situation, What HR Should Do?

New Business Situation, What HR Should Do?

15 September 2020

The Covid 19 pandemic provides opportunities for business people to explore technology more deeply. It happens because business people like it or are not forced to rethink how businesses can keep going while not adding to the number of Covid 19 cases, which as of last September has reached 307 thousand cases. Exploration of technology by business actors will certainly increase the number of technology users in Indonesia. Thus technology will increasingly become a component that cannot be separated from human life.

This statement can also be seen from the increasing number of technology use, at least from 2017 - 2018.

Based on Kominfo and APJII data, internet users in 2017 were 143.26 (54.68%) million people, has increased in 2018, reaching 150 million people (56%). In line with that BPS in 2019 released data related on smartphone ownership in 2018, there were 167 million people (62.41%), the data also increased from the previous year which was only 160 million (59.9%), while ownership of personal computers or laptops reached 53 million people (20.05%) the same as the others, this data also increased from 51 million people (19.19%) in 2017.

The massive use of technology is also carried out by business people, in 2017 a BPS survey stated that 70% of companies in Indonesia are connected to the internet and use a computerized process. There are at least two major reasons that make technology so popular both by the general public and by business people, including (1) Changing the manual process to an automatic, and (2) the ease of accessing large and varied data. In business, automation processes with computers, internet and technology will streamline business processes and save costs, while the ease of accessing diverse data will facilitate business decision making.

The application of technology to business processes has made many changes both major and minor. From simple ones such as decreasing the urgency to hold face-to-face meetings, to quite complicated ones such as changing marketing strategies to be more internet-based or using more advanced production machines to increase productivity, effectiveness, and efficiency. Among those who has changed are how the company manages the company and employees and how employees work and find jobs. Several companies provide opportunities for employees to get flexible working hours due to the proliferation of folding computer technology. These changes happen simultaneously in almost all companies. The question is how does HR respond to all of this?


What HR should Do?

Before returning to discussing how HR should do something / adapt in the midst of rapid changes, let's take a brief look at the 4 HR functions proposed by David Ulrich. According to David Ulrich, the ideal HR function includes 4 sub-functions. The first sub-function is as a (1) business partner for the company, in this sub-function HR acts as an alignment between HR activities and initiatives with company strategy in general. The second sub-function is as a (2) change agent, in this sub-function, HR acts as an entity that ensures organizational capacity and human capital to make changes that are deemed necessary. The third sub-function is the (3) employee champion, in this sub-function HR acts as a champion employee designer through the talent management process. The fourth sub-function is the (4) administrative expert, in this role HR plays the role of an entity that carries out all personnel administrative matters. All of these four functions must be owned so that HR can function optimally as support for the organization. In responding to the rapid changes in technology, HR will maximize the ease of technology to access data and automate processes for these four functions.

Let’s take a deeper look, in one of the employee champion sub-functions, with the company-owned online recruitment platform, the candidate tracking process can be done with one click and is on one screen. By changing the manual psychological test (paper and pencil) to technology based, there is a scoring process that is usually done manually is unnecessary. In addition, the work of sorting candidates based on the psychological test results has been automatically carried out by technology. Likewise with the interview process, with technology there is no need to meet face to face because technology allows for online interviews. In addition, the existence of diverse and integrated data makes it easier to compare all candidates, so that decision making (in this case the candidates to be hired) is easier to do.

A new era in which technology has become one of the business accelerators are here. It is better if executives and HR immediately improve by preparing the infrastructure and superstructure technology in order to create a more productive, efficient and effective business.