e-hrm by: waqas niazi 0313-9638454

7/30/2019 E-HRM BY: WAQAS NIAZI 0313-9638454

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TOPIC

AN EXAMINATION OF E-HRM AS A MEANS

TO

INCREASE THE VALUE OF THE HR


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DEFINITION

HUMAN RESOURCES: Defined as the total knowledge,

skills, creative abilities, talents and aptitudes of an

organization's workforce of the individuals involved in the

affairs of the organization.

HRM: Can be defined as managing (planning, organizing,

directing, controlling) the functions of employing ,

developing and compensating human resources.

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DEFINITION OF E-HRM

Mary Gowanhas defined Electronic Human ResourceManagement System (E-HRM System) as a web-based

solution that takes advantage of the latest web application

technology to deliver an online real-time human resource

management solution.

Lawler III(2005) suggests that e-HRM and its self-service characteristics can be the cheapest and fasted way

to provide specific HR activities.

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EARLIER

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NOW

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The Trends Shaping E-HR:

Similar to E-business, certain market and business

trends are shaping the world of E-Human

Resources. These trends are driven by users and

clients, processes and services, organizational

entities, and, of course, technology.

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EVALUATION OF E-HRM

The evaluation of the E-HRM department is based on

driving forces. These forces need to responded to as

companies approach the 21st century.

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.

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EVALUATION OF E-HRM

Processes Reengineering; strategic HRM managers are

constantly looking for ways to streamline and improve core

business processes to make them efficient.

High-Speed Management; to be competitive, Virtual HRM

is definitely a smarter and quicker form of service delivery

than traditional HRM.

Globalization; to complete successfully in the 21st

century, 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 1010/45


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Why Is Internet-Enabled HR Technology

Important For HR?

E-HRM is the cheapest way of providing some HR

activities.

E-HRM, enables managers access to relevant information

and data, conduct analysis.

E-HRM, increase efficiency and effectiveness of the

organization by improving the capabilities of bothmanagers and employees in taking better, timelier

decisions.

E-HRM, enables the HR system to create value for the

organization in new ways.

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OBJECTIVESOF E-HRM

To offer an adequate on-going information system about

people and jobs at a reasonable cost. To provide support for future planning and also for policy

formulation.

To facilitate monitoring of human resources demand and

supply imbalance . To automate employee related information;

To enable faster response.

To offer data security and personal privacy.

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TYPES OF E-HRM

Operational RelationalTransformat

ional

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Administrative

FunctionsSupportive

Business

Strategic HR

Activities

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TYPES OF E-HRM

Lepak and Snell(1998) distinguished three areas of 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, etc1413/

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THEIMPORTANTASPECTSOF E-HRM

E-Job Design and Job Analysis

E Human Resource Planning

E-Recruitment

E Selection

E-Performance Management E-Training & Development

E Compensation Management

E HR Records

E HR Information

E HR Audit

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E JOB DESIGN AND JOB ANALYSIS

The information of listing skills and competency mapping

are placed on the net.

Then the system matches the listing skills and

competency mapping and produces the output of

identifying the employee suitable for a particular task.

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E-HUMAN RESOURCE PLANNING

Computer Programs are developed and used extensivelyfor the purpose of planning human resource requirements

based on the data and the information

These programmes indicate the number of employeesrequired at each level for each category of the jobs based

on sales and production forecasts.

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E TRAINING AND DEVELOPMENT

Companies started providing online training and online

executive development. Participants complete course workfrom wherever they have access to a computer and an

internet.

67% of companies use e-learning

76% of these will use e-learning techniques within the next 3

years

94 % of HR managers and HR directors think the investment

in e-learning is efficient for utilising training resources

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Source :Management Center

Europe : 500 European

companies, interviewed in April

2009, during the HR European

Congress organised by MCE

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E COMPENSATION MANAGEMENT

Almost all the organizations started using

computers for salary fixation, salary payment,

salary calculations, fixation and calculation of

various allowances , employee benefits, welfaremeasures and fringe benefits

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E HR RECORDS

HR records are created, maintained and updated with the

help of computers easily and at a first rate.

E HR INFORMATION

HR info is generated, maintained , processed and

transmitted to the appropriate places or clients with the help

of software with high speed and accuracy.

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E HR AUDIT

The standard human resource practices or the desired

HR practices are fed into the computer. The data and inforegarding the actual practices are also fed into the

computer

The software automatically completes the HR audit and

produces the audit report. The HR manager then can

modify the report by deleting or adding any comments.

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E-HR ACTIVITIES

E-recruitmentis the process of personnel recruitment

using electronic resources, in particular the internet.

The two kinds of e- recruitment that an organization can

use

Job portals: posting the position with the job description

and the job specification on the job portal

Own-website: Companies have added an application

system to its website, where the passive job seekers can

submit their resumes into the database of the organization

Job sites provide a 24*7 access to the database of the

resumes to the employees facilitating the just-in-time hiring

by the organizations2220/

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E-HR ACTIVITIES

E-performance management tends to increase

productivity, competitiveness and motivate employeesas indicates. This is possible through two ways:

Technology may facilitate measuring an individuals

performance via computer monitoring activities.

Technology become a tool to facilitates the process of

written reviews or generating performance feedback

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ADVANTAGESOF E-RECRUITMENT

Lower costs to the organization. Also, posting jobs online is

cheaper than advertising in the newspapers.

No intermediaries.

Reduction in the time for recruitment

Facilitates the recruitment of right type of people with the

required skills.

Improved efficiency of recruitment process.

Gives a 24*7 access to an online collection of resumes

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DISADVANTAGESOFE-RECRUITMENT:

Screening and checking the skill mapping and authenticityof million of resumes is a problem and time consuming

exercise for organizations.

There is low Internet penetration and no access and lack ofawareness of internet in many locations.

Organizations cannot be dependant solely and totally on

the online recruitment methods.

The employers and the employees still prefer a face-to-

face interaction rather than sending e-mails. 2523/45


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LITERATURE REVIEW:

There has been much discussion in the literature about

the possible goals and outcomes of e-HRM (Hawking,Stein and Foster 2004; Ruta 2005; Ruel et al. 2006).

Similarly, Ruel et al. (2006) suggested the four goals of

cost reduction, improving HR services, improving strategicorientation and global orientation.

Past research in the field of e- HRM has been criticized for

a general lack of theory (Stroehmeier 2007; Bondarouk

and Ruel 2009).

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RESEARCH OBJECTIVES:

Research Questions

The objective of this research is translated in thefollowing research questions:

How to measure the effectiveness of e-HRM?

What is the effectiveness of e-HRM?

Does an e-HRM tool affect e-HRM function?

To offer recommendations and suggestions forenhancing the effectiveness of e-HRM systems. 2725/

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RESEARCH METHODOLOGY:

Research Design: I did descriptive study.

Data Collection Method: I did secondary research.I used a scholarly Internet search engine (scholar.google.com) and several online data bases, Business

Source Premier and INFODATA), that cover all leading

journals not only in the fields of human resource and

general management but also in information systems,the recently developing field of e-business

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FRAMEWORK

In past to explain individual perceptions andreactions arising from e-HRM these theories are

presented:

Attribution theory

Correspondence inference theory

The attractionselectionattrition and the

similarityattraction

Change managementAdditionally, a learning theory is adopted to

compare instructor-led and web-based learning

(Coppola & Myre, 2002).2927/

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DATA ANALYSIS METHOD

Given different interpretations and assessments of theory,

there is an ambiguity concerning theories, frameworks

So current study in e-HRM is mainly non theoretical.

A general framework based on previous conceptual work

is considered as most appropriate to structure e-HRM.

The framework distinguishes between configuration andconsequences of e-HRM, proposing that the configuration

will determine the consequences of e-HRM,

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FRAMEWORK

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E-HRM ACTORS

Actors of e-HRM are all those who (plan, implement and)perform e-HRM, and hence are of vital importance, as e.g.

HR professionals, line managers, employees,

consultants, applicants, etc.

Reactions of actors to e-HRM, comprising for instancepreferences, perceptions of image, perception of

attractiveness, acceptance, or satisfaction,

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E-HRM STRATEGY

E-HRM strategy as a component of a functional HRM

strategy refers to the establishing of constitutiveobjectives and the implementation of e-HRM

Findings concerning the e-HRM strategy at first hint, case

study shows that two out of five major organizations do

have a clearly defined e-HRM strategy while the otherorganizations at least had ideas about general objectives,

but the link to e-HRM and the overall HRM strategy was

less clear

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E-HRM ACTIVITIES

E-HRM activities means the single HR functions, like

recruiting and selection, training and development,compensation and benefits, etc.

Empirical evidence for a wide spread use of e-recruiting in

North America where the Internet has become an ordinary

recruiting source. Besides corporate web sites, primarily Internet job boards

are utilized in order to realize e-recruiting (Hausdorf &

Duncan, 2004).

Compared to e-recruiting, e-selection seems to be in anearlier and developing stage since findings reveal a rather

limited application3431/

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TECHNOLOGY OF E-HRM

Though HRM is a non-technical discipline, the technology

of e-HRM like portals, self-service systems, etc. should beof interest.

Two studies examining recruiting websites report that the

recruiting websites of private sector organizations showincreased functionality and usability and interactive tools

(Cober et al., 2004).

A further content analysis shows that a single ERP-Systemprovides functionalities in most of the key process areas of

the so called people capability maturity model (Tretken &

Demirrs, 2004) 3532/45


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CONSEQUENCES

Individual Consequences:

Overall findings of two case studies concerning HR Portals(Ruta, 2005) and employee self service systems (Hawkinget al., 2004) reveal increased employee acceptance andsatisfaction due to added value like time savings orincreased accuracy of results.

Another study demonstrates that applicant perceptions ofelectronic job search were even more positive owing to aclearly greater number of jobs found and an improvedquality of information (Van Rooy, Alonso, & Fairchild,2003).

At the intersection of e-recruiting and e-selection, findingsreveal that applicants react more positively

One study examines reactions to a special variety of e-compensation and e-benefits. Findings employees with

citizenship behavior (Huang, Jin et al., 2004,

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CONSEQUENCES

One of case study reveals an extensive decentralization ofexecuting HR activities by shifting responsibilities to line

management and employees

Another findings of case studies also expose clearly

increased relevance of the HR-department as a flexibleand proactive business partner

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SECOND THEORETICAL FRAMEWORK FOR

MEASURING E-HRM EFFECTIVENESS

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Informational E-HRM Support:

The digitalisation of HR information and data, and

the provision and recording of this information and

data through web-based channels

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Relational E-HRM Support:

Providing HR processes through web-bases

channels to the people of the HR function

the interaction between the customers of the HR

department and the HR department

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Aim at fundamental transformations concerning the

general scope and the function of HRM, comprising

the ability to contribute to overall organizational

performance.

Automation of the HR activities, new ways ofconducting HR activities are adopted

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ADVANTAGESOF E-HRM:

Ease of recruitment, selection and assessment Ease of administering employee records

Reductions to cost, time and labour

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

Global Reach

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DISADVANTAGESOF E-HRM

Employees and line managers mindsets need to be

changed: they have to realize and accept the usefulness ofweb-based HR tools.

They generally feel that they lack the time space needed to

work quietly and thoughtfully with web-based HR tools andso, if there is no need, they will not do it.

Guaranteeing the security and confidentiality of input data

is an important issue for employees in order that theyshould feel in safe when using web-based HR tools.

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SIGNIFICANT OF THE STUDY

This study will provide the human resource professional to

more effective way to implement the human resource

functions implementation.

This study also identified e-HRM features that deserve

HRM practitioners' attention and organizational resources.

This in-depth examining of the set of e-HRM features can

also serve as potential tools for the management to decideon the future adjustments of their e-HR system, and the

implementation of the new systems.

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IMPLEMENTATIONOF E-HRM

There are five main phases in the implementation of the E-

HRM business solution. Analysis (Infrastructure):

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

Business processes in the company:

After the existing processes have been analyzed, theoptions for automating these processes in the clientsenvironment are proposed. Finally a project plan isdeveloped based on the model of the processes identified.

Implementation:After the fundamental analysis of the processes in the workteam, individual modules are deployed in the clientsenvironment 4440/

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IMPLEMENTATIONOF E-HRM

Implementation and Training:

A complete knowledge of the components of the solution isa key factor for successful implementation. The entire team

of project managers and human resources specialist are

thus involved in user training and implementation

Maintenance:A maintenance contract typically includes:

Technical support experts available by phone, through e-

mail

Application software adjustment to changes in the systemenvironment or

Functionality improvement and software upgrades in the

form of new versions

Consultation about further development of the system.

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ORGANISATIONS ADOPT E-HR FOR REASONS

THAT INCLUDE

The aim of HR service improvement, making it morestrategic and business focused.

The objective of cost cutting and aiding operational

efficiency

The desire of the HR function to change the nature of itsrelationship with employees and line managers

The transformation of HR into a customer-focused and

responsive function

The offer of services that fits the new world of work and isattractive to current and future staff

The ability to produce comprehensive and consistent

management information.4642/

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IN CONSIDERING E-HR, ORGANIZATIONS HAVE A

NUMBER OF DESIGN DECISIONS TO MAKE

What are the best means of delivery voice, web or call

centre technologies, for what circumstances

What proportion of services will be delivered through

employee and manager self service?

Redesigning the HR function will impact on the roles and

skills of HR staff.

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A NUMBER OF CHALLENGES FACE THOSE


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A NUMBER OF CHALLENGES FACE THOSE

MOVING TO E-HR

There is an imperative to align any investment in E-HRwith the strategy of the business.

It is desirable to customize your E-HR offering wherever

possible (within reasonable costs). This could be bylocation or activity .

Resistance to change is likely, especially within the HR

function.

Information overload managers and employees may get

weighed down by the volume of communication. 4843/

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LIMITATIONS OF E HRM


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LIMITATIONS OF E-HRM

E-HRM also has many problems which need to be

addressed to before it can really be useful: It can be expensive in terms of finance and manpower

requirements.

It can be threatening and inconvenient to those who arenot comfortable with computers

Computers cannot substitute human being

The quality of response is dependent upon the accuracy

of data input. The garbage-in garbage-out is the key

expression in any computerized system.4944/

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SUGGESTIONS

The pay structure defined currently is insufficient so HR

department has to given in a description on how

assessment of the employee performance is made online

in order to realize the payments calculated online.

E-HRM still has to be responsible to build high level

performing teams by taking more reviews and training in

order to pick out high performing teams.

E-HR can also improve organizational performance

through reframing the HR policies according to the

preferences of the employees5043/

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SUGGESTIONS

The HR department can often make use of chat rooms,

fairs, networking etc. for recruiting in order to make themeffective

The HR department has to give in a detailed employment

contract offer online

HR department should also give preferences to policies

that change the nature of relationship with the employees

and managers

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COCLUSION

E- HRM is advance business solution which provides a

complete on-line support in the management of allprocesses, activities, data and information required to

manage human resources.

It covers all aspects of human resource management like

personnel administration,

education and training,

career development,

job descriptions, hiring process,

employees personal pages, and annual interviews with

employees.

Therefore E-HRM is way of doing HRM. 5245/45


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e-hrm by: waqas niazi 0313-9638454

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