Trivial HRM deficiencies can lead to business fiasco. Unprofessional and deficient human resources (HR) administration systems give scope for chaos like irregularities in workforce attendance and leave administration, discrepancies in pay, misused or unauthorized travel expense, errors/delays in reporting, etc., leading to HR, decision-making and performance issues.
Minor deficiencies like absence of adequate attendance tracking systems will result in indiscipline or non-availability of employees and executives. Discrepancies in pay as a result of mismanaged leave or payroll and other grievances arising due to misinterpreted HR policies may cause frustration among hardworking lot declining employee satisfaction and morale. HR staff becomes unproductive resolving unnecessary hassles. Performance appraisal and development systems become dysfunctional affecting professional training and employee performance. Such sticky situations will not only result in productivity issues but also employee turnover negatively impacting employer brand. This limits further recruitment and workforce quality. In the absence of mechanism or work-flows for managing human resources or for approvals and easy-to-use tools to follow HR practices and policies, HR processes will be considered as a hindrance to routine jobs. So manager and employee accountability is lost.
Insufficient or delayed HR reporting makes it difficult for managers and decision-makers to analyze HR/workforce trends, expenses, etc., affecting quality of business decisions. Mismanaged travel expense, salary and benefit administration will impact company’s budget or financial health. Unavailability of executives, lack of professionalism, reduced staff morale and reduced workforce quality -- all result in reduced staff productivity, poor service quality and lost customers or sales.
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