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E-HRM – Paper Presentation

October 8, 2012

MAHISHA SURAMARDHINI,Asst. Professor.

E-HRM

INTRODUCTION: The processing and transmission of digitalized HR information is called electronic human resource management (e-HRM). E-HRM is the application of IT for HR practices which enables easy interactions within employee and employers. It stores information regarding payroll, employee personal data, performance management, training, recruitment and strategic orientation. Information technology is changing the way HR departments handle record keeping and information sharing. It decreases the paperwork substantially and allows easy access to voluminous data. The employee can also keep track of his/her achievements without having to go through litigious procedures. It uses intranet or other web technology channels. It can also be used for implementation of different HR strategies. The authorization of different HR functions can be distributed through E-HRM.

Competitive business environments have compelled the organizations to think speedily to innovate and excel for their survival. Technology advancement is one of the powerful driving forces. It has reshaped the way we communicate, live, work and also the way a business is conducted. Corporations need to shift from physical technology to information technology, from capital centered economy to human centered economy, and further from conflict to cooperative working relationships. Since many years now, information technology seems to be affecting individuals and organizations communication and behaviours. The change in Information Technology is faster than any other processes in the organization. One of the major hurdles which the HR department needs to cross, is the changing technological environment. The IT possibilities for HRM are endless; in principle all HR processes can be supported by IT. Computers have simplified the task of analyzing vast amounts of data and they can be invaluable aids in HR management, from payroll processing to record retention. With computer hardware, software and databases, organization can keep records and information better as well as retrieve them with greater ease. E-HRM is the relatively new term for this IT supported HRM, especially through the use of web technology. E-HRM is the new field of technology that is widely spreading in organizations around the world. It aims at transforming the HR functions into one that is paperless, more flexible and resource efficient. With the state of IT, HRM has become more effective through the use of e-HRM technologies.  E-HRM has the potential to change the way traditional HRM functions are performed. For e.g. in the analysis and design of work, employees in geographically dispersed locations can work together in virtual teams using videos, e-mail etc. Under recruitment function, job openings can be posted online, and candidates can apply for jobs online. On compensation and benefits issues, e-HRM will make it easy for employees to review salary and bonus information and seek information about bonus plans

DEFINITION: E-HRM is a way of implementing HR strategies, policies, and practices in organization through a conscious and direct support of and/or with full use of web-technology based channels.

OBJECTIVE: To study what is e-HRM (its objective, scope, limitations, functions, benefits, goals, outcomes, and consequences) and how e-HRM is shaping organization in a technology driven environment.

REVIEW OF LITERATURE: Literature review examines recent research studies, company data, or industry reports that act as a basis for the proposed study.

According to Biswanath Ghosh [2002], in an organization the most valuable input is the human element. The success or failure of an organization depends to a large extent on the persons who manage and run the organization. In business the greatest asset is the human resource of the enterprise and not the plant, equipment or the big buildings it owns. There was a time when manpower was considered as a cost factor but not it is recognized as an investment. The e -HRM can range from basic personnel records to sophisticated networks of sub-systems with definite purposes. Today most of these will be computer systems. The manpower information system can provide necessary information in a form which can be integrated with any other business data. With most data base systems, there are facilities to pull out any of the data and present them in the required form. In the view of Michael Armstrong [2003] e-HR provides information required to manage HR processes.´These may be core employee database and payroll systems but can be extended to include such systems as recruitment, e-learning, performance management and reward. The system may be web-based, enabling access to be remote or online and at any time. The information provided by the e-HR process can   communicated across organizations. If posts static data such as information on HR policies and communications about employer facilities such as learning opportunities and flexible benefits. It can include links that enable managers and other employees to interface directly with HR applications and make changes or enquiries.

RESEARCH METHODOLOGY:

Research Design: I did descriptive study.

Research Tools: I did secondary research. I collected data from the internet from various websites, journals, magazines.

DISCUSSION:

EVALUATION OF E-HRM : The evaluation of the E-HRM department is based on six driving forces. These forces need to be harnessed and responded to as companies approach the 21st century. The following six forces must be addressed by HRM departments that want to continuously increase their value while reducing costs.

1. Information technology; HRM professionals are facing a digital future. The rapid growth in the field of computer hardware, software, networking, and telephony services is absolutely essential to the virtual HRM movement. It is not accident that virtual HRM departments will become the norm in the near future. This is especially true with the increase sophistication and lower costs of information age technology and automated processes.

2.Processes re-engineering; strategic HRM managers are constantly looking for ways to streamline and improve core business processes to make them efficient.All business processes especially those in the HRM department can be reengineered and improved through the skillful application of information technology.

3. High-speed management; to be competitive, all companies must work smarter and faster. Virtual HRM is definitely a smarter and quicker form of service delivery than traditional HRM.

4. Networked organizations; virtual HRM departments are more likely to emerge in networked organizations than in traditional and bureaucratic companies. The proliferation of information technology such as local area networks,e-mail, and corporate intranets are the trademarks of a flatter networked company. These new-wave organizations offer state-of-the-art technology and information sharing to empower all levels of  personals.

5. Knowledge workers; the 21st century organization will compete on strategic information and knowledge. These ³learning organizations´ will be staffed with self-directed and computer savvy, knowledge workers. These workers will excel at using information to quickly identify and capture lucrative business opportunities while also diligently identifying and resolving costly problems.

6. Globalization; to complete successfully in the 21st century, nearly all companies must develop a global business strategy. This means that HRM departments must be capable of providing services to their employees anywhere on earth. Obviously, a technology-assisted HRM department that is skilled at traversing the information super highway, is in the best position to support a globalized work force.

In summary, all of the aforementioned forces are designed to get rid of outmoded organizational processes, procedures, layers and boundaries that add cost and form barriers between the HRM department and the company employees. Moreover, all of these forces reflect the enormous impact that information technology has, and will continue to have, on every process and procedure in the HRM department. Successful information of a virtual HRM department will clearly increase a company competitive advantage.

THE STATE OF HRM IN AN ORGANIZATION

E-HRM is a way of implementing HR strategies, policies, and practices in organizations through a conscious and directed support of and/or with the full use of web-based channels. E-HRM is a concept a way of µdoing¶ HRM. This is not to ignore the fact that E-HRM can transform the nature of HRM strategies, policies and practices. Researchers are searching for relevant and adequate theory that can fully grasp the concept of E-HRM, and frequently present fragmented empirical evidence, particularly on E-HRM sub-fields such as e-recruitment and e-learning, these-called earlybird´ areas where web technology was first adopted.

OBJECTIVES: E -HRM is designed to achieve the following objectives:

  • To offer an adequate, comprehensive and on-going information system about people and jobs   at a reasonable cost;
  •  To provide support for future planning and also for policy formulations;
  •  To facilitate monitoring of human resources demand and supply imbalance
  • To automate employee related information;
  •  To enable faster response to employee related services and faster HR related decisions and;
  • To offer data security and personal privacy.

SCOPE OF E-HRM:

  • A decisive step towards a paperless office;
  •  Higher speed of retrieval and processing of data;
  • More consistent and higher accuracy of
  • information/report generated;
  • Fast response to answer queries
  •  A higher internal profile for HR leading to
  • better work culture
  • More transparency in the system
  • Significant reduction of administrative burden
  • Adaptability to any client and facilitating management;
  •   Integral support for the management of human resources and all other basic and support processes within the company;
  • A more dynamic workflow in the business process, productivity and employee satisfaction.

BENEFITS OF E-HRM: 

  • Standardization
  •  Ease of recruitment, selection and assessment
  • Ease of administering employee records Reductions to cost, time and labour
  •  Access to ESS training enrollment and self-development
  • Cost and ESS
  • Location and timeliness

  -HRM goals: The main goals of e-HRM are as followed:

  • Improving the strategic orientation of HRM
  • Cost reduction/efficiency gains
  • Client service improvements/ facilitating management and employees.

E-HRM outcomes: According to Beer et al(1984) all E-HRM activities, will implicitly or explicitly be directed towards distinguish four possibilities:

high commitment,high competence,cost effectiveness and higher congruence.

These outcomes, in turn, may change the state of HRM in an organization,in to a new HRM state. E-HRM will change the nature of the HR department by making less administrative tasks for the HR department and therefore less administrative positions, more focus on the strategic goals of the organization.

TYPES OF E-HRM: Lepak and Snell(1998) distinguished three areas of HRM as, operational HRM, relational HRM and transformational HRM.

Operational HRM: e-HRM is concerned with administrative function like payroll, employee personal data, etc.

Relational HRM: e-HRM is concerned with supportive business process by the means of training, recruitment, performance management, and so forth.

Transformational HRM: e-HRM is concerned with strategic HR activities such as knowledge management, strategic re-orientation, etc.

E-HRM Tools:

E- Employee Profile: The E-Employee Profile web application provides a central point of access to the employee contact information and provides a comprehensive employee database solution, simplifying HR management and team building by providing an employee skills, organization chart and even pictures. E-Employee profile maintenance lies with the individual employee, the manager and the database manager. E-Employee profile consist of the following:

Certification, Honor/Award, Membership, Education, Past Work  Experience, Assignment Skills, Competency, Employee  Assignment Rules, Employee Availability, Employee Exception Hours, Employee Utilization, Employee tools, Job information, Sensitive job Information, Service Details, Calendar, Calendar Administration, Employee Locator.

E-Recruitment: Organizations first started using computers as a recruiting tool by advertising jobs on a bulletin board service from which prospective applicants would contact employers. Then some companies began to take e-applications. Today the internet has become a primary means for employers to search for job candidates and for applicants to look for job. As many as 100,000 recruiting web sites are available to employers and job candidates and which to post jobs and review resumes of various types. But the explosive growth of internet recruiting also means the HR professionals can be overwhelmed by the breadth and scope of internet recruiting.

E-Recruiting Methods: Job boards, Professional/Career,websites, Employer Websites.

E-Selection: Most employers seem to be embracing Internet recruitment with enthusiasm, the penetration of on-line assessment tools such as personality assessments or ability tests, has so far been limited. A survey has shown that although more than half respondents organizations already use either psychometric or other assessment during the recruitment process, only few of these companies use on-line assessments prior to interview. Fewer still include a core fit questionnaire in the recruitment pages of their websites.

E-Learning: E-Learning refers to any programmed of learning, training or education where electronic devices, applications and processes are used for knowledge creation, management and transfer. E-Learning is a term covering a wide-set of applications and processes, such as web-based learning, computer-based learning, virtual class room, and digital collaboration. It includes the delivery of content via Internet, intranet/extranet (LAN/WAN), audio-and videotape, satellite broadcast, interactive TV,   CD – Rom, and more. Training program provides.

Classical and Virtual Learning: This classical learning model especially from non-reversible flow of information. AT the beginning is the pedagogue, which governs the course. For students, pedagogue offers information, knowledge, and educational materials mostly in the representation of educational lecture notes for lessons. For the most part the feedback is weak, inconsistent, or even missing. Virtual education environment by its communications links collects the feedback of participants, simplifies teaching and simplifies teamwork of students with pedagogue. The virtual learning system enables horizontal and vertical communication. For required information, participant can often gets much more information than in classical model of education as here the other participant also share which is not a real happening in the classical model.

Characteristics of E-Learning:

  • E-Learning outcomes extend beyond learning to strategic outcomes.
  • E-Learning is much more than e-training for skill outcomes.
  • E-Learning involves information and communication technology.
  • E-Learning is about people learning in a given context.

E-Training: Most companies start to think of online learning primarily as a more efficient way to distribute training inside the organization, making it available ”any time”,” anywhere”  reducing direct costs (instructors, printed materials, training facilities), and indirect costs (travel time, lodging and travel expenses, workforce downtimes). Attracted by these significant and measurable advantages, companies start to look for ways to make the most of their existing core training available online, and to manage and measure the utilization of the new capabilities.

Characteristic of E-Training:

  • Rich learning interface.
  • Personalized training programs.
  • Training from
  • work place/home
  • Virtual
  • class room.

E-Performance Management system: A web-based appraisal system can be defined as the system which uses the web(intranet and internet) to effectively evaluate the skills, knowledge and the performance of the employees.

E-Compensation: All companies whether small or large must engage in compensation planning. Compensation planning is the process of ensuring that managers allocate salary increases equitably across the organization while staying within budget guidelines. As organizations have started expanding their boundaries, usage of intranet and internet has become vital. The usage of intranet and internet for compensation planning is called E-Compensation Management.

Implementation of E-HRM: There are five main phases in the implementation of the E-HRM business solution.

  1. Analysis (Infrastructure)

Analyzing  the existing infrastructure with regard to quantity of data and classification of business activities.

  1. Business processes in the company

After the existing processes have been analyzed, the options for automating these processes in the client’s environment are proposed. Finally a project plan is developed based on the model of the processes identified.

  1. Implementation

After the fundamental analysis of the processes in the work team, individual modules are deployed in the client’s environment. With modular design a gradual implementation is possible. Company-specific functionalities are discussed with the client and built upon request.

  1. Implementation and Training

A complete knowledge of the components of the solution is a key factor for successful implementation. The entire team of project managers, information technology professionals and human resources specialist are thus involved in user training and implementation.

  1. Maintenance

Fast technological development and development of new modules make cooperation after the implementation indispensable. A maintenance contract typically includes:

  • Technical support experts available by phone, through e-mail or on-site
  • Adaptation of existing modules or development of new ones
  • Application software adjustment to changes in the system environment or
  • Operating system
  • Functionality improvement and software upgrades in the form of new versions
  • Consultation about further development of the system.

Advantages of E-HRM

            The E-HRM business models are designed for human resources professionals and executive managers who need support to manage the work force, monitor changes and gather the information needed in decision-making. At the same time it enables all employees to participate in the process and keep track of relevant information.

    • Collection and store of information regarding the work force, which will act as the basis for strategic decision-making
    • Integral support for the management of human resources and all other basic and support processes within the company.
    • Prompt insight into reporting and analysis
    • A more dynamic workflow in the business process, productivity and employee satisfaction
    • A decisive step towards a paperless office
    • Makes the work to get over fast

Disadvantages of E-HRM

  • Employees and line managers’ mindsets need to be changed: they have to realize and accept the usefulness of web-based HR tools.
  • They generally feel that they lack the time space needed to work quietly and thoughtfully with web-based HR tools and so, if there is no need, they will not do it.
  • Guaranteeing the security and confidentiality of input data is an important issue foe employees in order that they should feel ‘safe’ when using web-based HR tools.

CONCLUSION:

E- HRM is a web-based tool to automate and support HR processes. The implementation of e-HRM is an opportunity to delegate the data entry to the employee. e- HRM facilitates the usages of HR marketplace and offers more self-service to the employees. e- HRM (Electronic Human Resource Management) is advance business solution which provides a complete on-line support in the management of all processes, activities, data and information required to manage human resources in a modern company. It is an efficient, reliable, easy – to use tool, accessible to a broad group of different users. e- HRM is a way of implementing HR strategies, policies, and practices in organizations through a conscious and directed support of and/or with the full use of web-technology-based channels. It covers all aspects of human resource management like personnel administration, education and training, career development, corporate organization, job descriptions, hiring process, employee’s personal pages, and annual interviews with employees. Therefore e-HRM is way of doing HRM.

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3 Comments
  1. Insightful read. like ur perspective

  2. Jonas permalink

    I truly appreciate this extensive research work. I find it useful. It has helped me a lot in my academic assignment. And I used it with due acknowlegement of the researcher.

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