In light of the modern trends towards improving the management of organizations, the HCM system and corporate governance have become essential concepts that contribute to organizing business and achieving corporate goals. Therefore, in this article, we will discuss how the HCM system can...HCM plays an important role in developing and enhancing corporate governance in organizations.

What is the concept of system?HCM

systemHCM is a human capital management system, which aims to improve the management of the workforce within an organization by automating human resource-related processes. It handles a wide range of employee-related activities, from recruitment, through performance management, to talent development and payroll and benefits management.

systemHCM is an acronym that consists of three main parts:

1. H – Human

The first letter of the abbreviation "H" refers to people or human resources, in the context of HCM systems, it refers to the people who make up the workforce of an organization.

2. C – Capital

The second letter indicates "C" stands for capital, but in this case it does not mean money or physical assets, but human capital. This refers to the value of employees as vital assets to the organization.

3. M – Management

The last letter "M" stands for management, meaning the way in which human resources are managed, this includes applying management strategies and tools to manage human capital effectively.

Overall, the systemHCM is an integrated system for managing human capital through a set of processes and activities that aim to achieve excellence in people management, by automating and simplifying various procedures such as recruitment, training, performance management, and payroll management, HCM helps organizations use human capital in the best possible way to achieve business goals.

Important Statistics on Corporate Governance

Many studies reflect the impact of good governance on corporate performance. For example, a study conducted by the Global Governance Institute showed that companies with strong governance policies achieve a 15% higher growth rate than companies with weak governance.

Another study by the International Finance Corporation revealed that more than 70% of companies with effective governance mechanisms enjoy a high level of transparency and accountability. These statistics clearly demonstrate the importance of implementing systems and tools such as theHCM that supports these processes and contributes to improving corporate governance mechanisms.

System developmentHCM and its role in improving governance

systemHCM or Human Resource Management System is an integrated system that helps manage everything related to human resources, starting from recruitment, through performance development, to employee evaluation and task organization.

System developmentHCM has recently expanded significantly to include more complex functions, such as performance tracking, advanced reporting, and strategic HR planning. This development contributes to achieving higher levels of transparency and efficiency within organizations, enhancing corporate governance by:

Fair distribution of responsibilities:The system allowsHCM defines roles precisely through available tools, which helps reduce overlap between departments and ensures clarity of tasks.

Transparency in reportingThe system provides:HCM has the ability to track performance and provide detailed reports on every aspect of the business, helping in monitoring performance and making the right decisions.

Risk managementBy monitoring the overall performance of HR and providing accurate insights into gaps or problems, systems helpHCM in reducing risks associated with human resources.

Challenges in implementing the systemHCM in Corporate Governance

Despite the great benefits offered by the systemHCM improves corporate governance, but there are major challenges in its implementation on the ground, the most prominent of which are:

Integration with other systemsIn many organizations, the integration between the systemHCM and other business systems such as finance and accounting are a major challenge, this integration requires advanced technologies and ensuring data consistency across different systems.

Staff trainingAlthough the systemsHCM provides advanced user interfaces, but employees may have difficulty using them fully if they are not adequately trained.

Resistance to changeLike any new system, organizations may encounter resistance from employees and managers who are accustomed to traditional methods. This resistance can hinder the process of implementing the system.HCM thus negatively impacts the benefits it can bring in improving governance.

Systems areHCM is an important strategic tool in enhancing corporate governance by improving organization, transparency, and distribution of responsibilities, which directly contributes to raising the efficiency of corporate performance.

How to improve the systemHCM of Governance

System helpsHCM improves governance through several main methods related to the distribution of roles and responsibilities, ensuring transparency, and achieving efficiency in implementing corporate policies. This is evident in:

Achieving transparency and accountability

The system providesHCM is a centralized platform for managing employee data, making it easy to access HR-related information in a transparent manner, ensuring transparency in operations and preventing manipulation or favoritism.

Improving the effectiveness of administrative processes

By automating many HR processes, such as recruitment, evaluation, and payroll, the system contributes toHCM improves the overall efficiency of the organization, this leads to reduced waste and improved human resource management in general, which is in line with the governance objectives of reducing costs and maximizing the use of available resources.

Support strategic decision making

The system is consideredHCM is a powerful tool for collecting and analyzing data related to job performance and human resources, which helps in making strategic decisions about training, promotions, and workforce planning.

Distribution of roles and responsibilities

Improves systemHCM defines the organizational structure by clearly defining roles and responsibilities across different levels in the organization, and helps organize administrative processes, such as promotions or rewards, based on pre-determined criteria.

Workforce Risk Management

System helpsHCM reduces human resource risks, such as a lack of qualified employees or high hiring rates. By monitoring performance and providing accurate reports on the workforce, managers can proactively address these risks.

Compliance with regulations and standards

The system providesHCM is a powerful mechanism to ensure compliance with local and international labor laws and regulations, as the system enhances the organization's commitment to labor laws, such as working hours, wages, and benefits.

Achieving long-term governance goals

By integrating the systemHCM With governance strategies, organizations can ensure that HR management systems are aligned with the organization's long-term goals.

In short, systems canHCM improves corporate governance by enhancing transparency, improving efficiency, enhancing accountability, and supporting strategic decision-making. It also contributes to ensuring compliance with legal frameworks and internal standards, thus ensuring corporate sustainability and sustainable growth.

Systems ToolsHCM Global and its Role in Corporate Governance

There are many systems tools.HCM Global provides services that serve governance, including:

Performance Management and Continuous Evaluation

Provides tools such as:Workday and SuccessFactors Regular performance appraisals and ongoing reviews These tools help in setting clear goals and evaluating employees periodically, which enhances transparency and accountability. By tracking performance and achieving set goals, employees are ensured to adhere to corporate standards.

Compensation and Benefits Management

Tools such as:Ultimate Software and ADP Workforce Now track payroll, bonuses, and incentives, and ensure compliance with local and international payroll and benefits laws. By managing compensation in a transparent and consistent manner, legal risks are reduced and fairness is enhanced within the organization.

Compliance and Risk Management

Tools such as focus on:Ceridian Dayforce and PeopleSoft HCM help your workforce comply with legal and tax standards, and help maintain compliance with local and international regulations, reducing legal and financial risks.

Learning and Development

Provides tools such as:Cornerstone OnDemand and LinkedIn Learning are employee training and development programs that help develop employees' skills and ensure they have the knowledge they need to perform their jobs effectively.

As for Doc Sweet (DocSuite is a document management and administrative communication system, and a powerful tool that helps organizations implement corporate governance. DocSuite focuses on improving document management and communication between departments by automating processes and improving workflow, which supports corporate governance in several ways.

Improving transparency and accountability

By digitizing documents and communications, DocSuite provides an accurate record of every document and transaction handled within an organization. This enhances transparency in operations and makes it easier to track responsibilities.

Risk Management and Compliance

DocSuite helps comply with legal and regulatory standards by automating the document management process. The tool ensures that all documents and data are handled in a secure and organized manner according to approved standards.

.Improve operational efficiency.

By integrating document management and administrative communications, employees can easily access necessary information and perform tasks faster and more accurately, and this operational efficiency contributes to achieving corporate governance goals.

Advantages: Reduces the time and effort employees spend searching for documents and communicating, which improves the overall performance of the organization.

Automate procedures and reduce errors

DocSuite helps automate many administrative processes such as document authentication, tracking and distribution, this reduces human errors that may occur during these processes.

Advantages: Automation improves process accuracy and reduces costs associated with human error.

The system contributesHCM helps in achieving the organization's goals in a more organized way, which helps in achieving the corporate governance goals easily and achieving great success.