Innovations of Human Resource Management in New Knowledge Economy
Times
Jing-yi Sun
Economics and Management School, Wuhan University, Wuhan，China
Abstract - With the development of advanced
technology and the wide use of internet and e-business,
human has entered into a new era which is knowledge
economy times. One company’s competitive advantages are
influenced by the knowledge and technique it owns. The
focus of competition goes from obtaining nature resource
and real capital to achieving various knowledge and
intellectual innovations. The determinant factors of
competition rely largely on the effective allocation of
knowledge recourse. The survival and development of an
enterprise increasingly depend on the ability to form high
qualified and well trained teams. This requests enterprise
possessing excellent employees, with great sensibility of
knowledge and technique to constantly update products and
services. Therefore, the innovations of human resource
management become the vital task for modern enterprise
management.
Keywords - Human recourse management, innovation,
knowledge economy, strategies
I. THE INNOVATION OF HUMAN RESOURCE
MANAGEMENT IN NEW BUSINESS TIMES
In economics, resource is defined as the universal
name of all materials people put into process to create
values, including human resource, material recourse,
financial resource, information resource, time resource
and so on, among all of these resources human resource is
one of the most important one [1]. Enterprises use Human
resource management to organize and coordinate other
resources to achieve strategic goals.
In America, three quarters researchers are working in
their company or organization’s research center. On the
contrary, 75% large and medium size state enterprises in
China does not have specialized researchers and rely
heavily on importing foreign technologies. The process
foreign experts installed all the equipment and trained
workers on the product line and give them back to
Chinese enterprises is called turnkey project, which has
very low profit remaining, especially in labor intensive
enterprise it is only about approximate 2% [2]. China has
been endeavored to develop high technique and new
industries, however there are only few attentions paid to
upgrading our current human resource management
strategies, to unrevealing the magnificent potentials of
HRM.
II. CHARACTERISTICS OF HUMAN RESOURCE
MANAGEMENT IN NEW KNOWLEDGE
ECONOMY TIMES
A. Advanced Technology
From telephone meeting to television meeting to
internet meeting, technology such as computer and
internet is diminishing the distance of space between
enterprises and people, making this world smaller and
more reachable. On one hand, the fast speed of spreading
information of services and products provides new space
and opportunities for development. On the other hand,
advanced technology also curtail the periods of upgrading
products and service which in the end provoke the
competitions among enterprises [3].
B. Capitalization of Human Resource
In knowledge business society, the core competences
are knowledge, technique and information [4]. Human as
the one who create and apply those elements is by all
means the most critical resource among all others. Human
capital is the knowledge, techniques, capabilities,
experiences and proficiencies owed by employees. Based
on the deficiency of natural resources in nowadays,
human capital that has the ability to best allocate and
utilize resource become more and more central to all.
C. Scientization of Management Means
HRM transforms from traditional and experienced
style into more scientific and specialized manner with the
entrance of knowledge economy era. The e human
resource (EHR) management system brings a brand new
experience of scientific management. Through positive
application of EHR, a bridge between staff and human
resource department can be built by utilizing proper
systems, such as staff self-serving system, payroll
calculating system, training system, performance
management systems and so forth [5].
D. Constant Training
The attention paid to training employees has grown
rapidly for the sake of long term prosperity [6]. No matter
the importance of knowledge itself or the fast speed of
knowledge upgrading, employees face great pressure to
generate new knowledge and techniques. Enterprises must
constantly strengthen the training of their staff to adapt
prompt changes and growing societies. Thus, training and
learning is a lifetime need to employees. Emerging
industries definitely need to keep that in mind in practice.
III.IMPORTANCE OF HUMAN RESOURCE
MANAGEMENT INNOVATION
A. Innovations Urge Enterprise to Reform
To develop socialized production and market
economy must improve the modern enterprise system that
can allocate its resource effectively and run its business
plan smoothly [7]. These require reinforcing and
developing human capital which is the most important
factor and also the prosecutor of all operations.
B. Innovations Improve Enterprises’ Core Competences
In order to win from the complicated international
business environment, enterprises need to continuously
participate in the global completion and cooperation to
learn and upgrade their knowledge. Promoting innovation
of HRM can give full play to enterprises’ advantages.
Mastering and learning more advanced technologies is
vital to the designs and the researches of future products
and services, which as well ensure larger market share
seized and wider customer base attained.
C. Innovations Form Well Qualified Team
The management level of an enterprise affects its
development directly therefore is the key to decide
whether the company performs good or not [8]. The
quality of HRM in a certain degree determines the way
leading to success or failure. At the present stage, the
development of market economy asks for high qualified
teams to make high qualified enterprises. Only enterprise
improving the innovation of HRM can fully support
selection mechanism, incentive mechanism and
supervision mechanism to build a suitable developing
environment for employees who perform better in better
working mechanism [9].
IV.
HRM INNOVATION STRATEGIES IN NEW
ECONOMIC BUSINESS ENVIRONMENT
Under the guide of information technology
revolution, the most critical resource is not material
source but know-how that deciding the spirits of
innovation and competing leverage [10]. Who owns higher
level of know-how, who wins. In new economic times,
HRM must keep space closely with the innovation in the
following areas to realize the mutual goals of staff and
enterprise.
A. Personalize HMR Means
With the coming of new business times arises the
changing of outer environment [11]. Every individual has
his or her unique specialties by different culture
backgrounds, experiences and principles. The attentions
enterprises pay to different areas determines the selection
criteria of hiring. Enterprise should explore the talents
of its employees and assign different tasks to their
corresponding specialties. Sufficient communication
between staff and company is valuable to help
company finds out what their employees need and what
they can do. The performance assessments can apply
flexibly to provoke the loyalty and potential abilities of
employees, which in return generate more intangible
assets. Allow every employee has a platform to reveal
their talents and make them realize every individual to
the company is as important as a crucial component of
a machine that can only activate when every single part
is in the right place.
B. Develop Management Methods
Classify different functions of HR department such
as allocation, training, wages, welfares and so on [12].
Have the unimportant, trivial and low-knowledge relating
work cut off from HR department and hire professional
human resource company of the third party to deal with
them. Use management consulting company to reduce
long term administrative cost to get enterprise free from
non-important data analysis and to obtain new managerial
technique and thought to adapt continuously changing
environment [13]. These methods not only cut down the
cost of daily operation load but also simplify the process
and route from higher level management to lower.
Communication is more sufficient and operational
function is clearer.
C. Modify Organizational Structures
Typically, redesign the structures of an
organization means power redistribution. There are
four types structures, which are linier function structure,
department structure, matrix structure and net structure
[14]
. There are some suggestions aiming at modifying
organizational structures. First, Change the traditional
pyramid hierarchical structure and decrease middle
managerial levels to create shortest information flow.
Second, Authorize sufficient power and function to
staff so they can directly handle problems within
corresponding duties. Third, allow staffs to face custom
and to resume the responsibilities of the services they
provide, supervisors should support, encourage and
provoke staffs’ potential intelligence and provide a
promising stage for their performances, which brings
the true value and efficacy of HRM [15].
D. Improve Incentive Mechanism
There are two types of incentive mechanism; one
is from outside and the other is from inside. The first
one includes salary incentive, especially capitalization
incentive such as stock option incentives that join the
long term profit of the company and its staff together.
The latter one, inside incentive, is a contrary concept
comparing to the outside incentives. It creates certain
conditions that make working fun and enjoyable. For
example, delegating certain decision making power to
staff to make them attain more sense of achievement,
which brings more concentration of energy and
excitement that boost working quality. In addition,
grant more flexibility that allows staff has more space
for creativities, of course under the condition that all
works can be accomplished in required time and
quality [16]. Flexible working time and working place
are excellent options to support such incentives. Last
but not least, accept suggestion system that the voice of
staff can be heard by higher management. Democracy
has become gradually more important to a company’s
future prosperity for it enhance employees’ sense of
responsibility and participation.
E. Promote Corporate Culture
Corporate culture is the sum of corporate value,
corporate institution and conduct norm that generated
through long term survival and development. It is the soul
of a corporate and has three levels that indicate its
maturity. The first level is material culture; the second is
institution culture and the third spirit culture [17].
Corporate culture is an intangible asset to its company
because it gives guidance, motivations, cohesions and
constraints to the working environment. There will be no
vitality if a company is lack of enterprise culture and
consequently it will be disappeared from the competition
battle. A people oriented company encourages its staff to
view their company as families and their work as a
lifetime goal, which enhances the corporation and
cohesion. Great atmosphere helps staff to positively
support and adapt reformation. Establishing people
oriented culture and making people the most valuable
assets allow full play to people’s subjective initiative,
linking people and enterprise become one subject that
shares mutual interests and benefits. Thus the loyalty of
staff will be reinforced, avoiding brain drain situation to
happen. Considering the time and money a company has
invested, the best way to retain a company steady and fast
growing space is to keep its most precious asset, which is
human resource.
V. CONCLUSION
The innovation of HRM in new knowledge economic
times should not only deal with concrete issues but also
well aware various problems that enterprises will face in
short and long term. As practical situation differs among
industries, the actual standards of developing HRM will
be different according to their specific demands. One
thing should take into account is that human resource as
the most valuable and critical resource is the major force
to seize opportunities in drastic market competitions. Well
accomplished innovations of HRM can practically
improve enterprise’s core competences and economic
benefits, pushing it become bigger and stronger.
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