E-HRM IS A BOON OR BANE

Transcription

1 E-HRM IS A BOON OR BANE T.G. SHEJO Department of Commerce, St.Joseph s College For Women, Tirupur-4. ABSTRACT Nothing is constant but change holds true in this ever transforming business world, technological advancements are one of the powerful driving forces. It has redesigned the way we live, communicate, work and also the way business is conducted. The technology and digitized business communications have enhanced and reformed various organizational activities. The impact of this IT revolution can be seen in every profession and in all functions of management as well. Like all vocations, Human Resource Management (HRM) has been progressively affected by the ongoing emergence of new technologies. For instance, the introduction of the Human Resource Information System (HRIS) two decades ago has brought about a paradigm shift and resulted in greater efficiency and automation for people management. With the advancement of web technologies during the past few years, we have witnessed the origination of Electronic Human Resource Management (e- HRM) which, as indicated by experts, is a much more potent enabler in transforming the role of Human Resource (HR) from a mere advising staff function to a more strategic line function becoming an administrative expert, an employee champion a business partner and a change agent. But of course, the accessibility and availability of an enabler doesn t assure successful transformation. This paper focuses on the advantages and disadvantages of E-HRM and discusses whether it is a boon or bane in today s corporate scenario. E-HRM costs money, but ignoring e-hrm costs a fortune. Modern technology can be helpful in creating a strategic HRM-policy, reducing costs, higher productivity, increasing quality of your labour force and more responsibility of managers and employees in the execution of HRM-tasks. Your organization cannot miss this surplus value. (EHRM; 2006) Key words: Human Resource Management, Electronic Human Resource Management, Automation, Business partner, Change agent. INTRODUCTION E-HRM is the planning, implementation and application of information technology for networking and supporting at least two individuals or collective actors in their shared performance of HR activities Technological optimistic voices want us to believe that, from a technical perspective, the IT possibilities for HRM are endless: in principal all HR processes can be supported by IT. E-HRM Is the relatively new term for this IT supported HRM, especially through the use of web Technology. As defined by Kettley P and Reilly P (2003), a Computerized Human Resource Information System (CHRIS) consists of a fully integrated, organization-wide network of HR related data, information, services, databases, tools and transactions. Such a system can be described as e-hr, meaning the application of conventional, web and voice technologies to improve the HR administration, transactions and process performance. Electronic Human Resource Management System as a webbased solution that takes advantage of the latest web application technology to deliver an online realtime human resource management solution. It is comprehensive but easy to use, feature-rich yet flexible enough to be tailored to your specific needs icmrrjournal@gmail.com

2 THE NATURE OF ELECTRONIC HUMAN RESOURCE MANAGEMENT SYSTEM: Technological development and electronic instruments dominance on phenomena world, and different sciences such as management, contributes to this fact that today employees have a greater awareness than employees in past in this area. New technologies have created a new generation of employees and the organizational structure has changed. The changes are organized in a way that today the absence of organization on the www, means the loss of huge capital resources. Nowadays organizations or formally wider the businesses face many challenges such as globalization, the value chain for competitiveness and technological changes. To arise the web-based technology, the new concept of E-HRM, entered the field of human resources. This type of management is suitable for human resource professionals to create that causes promotion in their competencies and is playing an effective role. All organizational activities, including finance, business and personal activities in addition to saving resources, through a web-based system is achieved,among the activities that organizations can do through the web sites, are considered as personnel matters (Kariznoee et al, 2012). Recently, E-HRM has been studied increasingly by many scholars. THE TECHNOLOGICAL SHIFT: Technological advancement is one of the powerful driving forces. The exploitation of HR Technology and its various workforce applications were only intense in larger business associations, ever more; the effective use of technology is now considered a key factor in the successful management of human capital in organizations of all sizes. The constant development of technology synchronized with more savvy use of the internet is facilitating smaller organizations, to have access to applications, such as automated payroll, time and attendance systems, application tracking/recruitment software, networks and intranets, that ease communication benefits and assists employees self-service and workforce data and analytics. The impact of E-HRM technology on the HR system would always be dependent on the way the technology is used. It is dependent on what and how the technology ropes in the HR function but also on how the technology is created or constructed. This in turn affected by the organizations vision and its objectives it is trying to accomplish with the use of technology. E-HRM MODEL 16 icmrrjournal@gmail.com

3 This model developed by Ruël, Bondarouk and Looise (2004), provides sort of a structure to all existing literature on E-HRM. It combines different authors views and findings and creates a framework. The framework focuses on the HRM strategy and policy, moving on to E-HRM goals, types and finally the outcomes. OBJECTIVES : E-HRM is designed to achieve the following objectives: Electronic Human Resource Management (E-HRM), is one of the newest topics in human resource management science that has been created aiming on optimizing procedures in order to run faster the human resources functions, reducing costs and freeing scientists from administrative constraints to implement the strategic role (Kariznoee et al, 2012).Generally there are four necessary requirements to be considered in the E-HRM; first the units of human resources are asked to focus on the strategic questions; second these units need to be flexible in policy making and practical actions. And third the units of human resources should work effectively and be aware of the costs. Four, the units of human resources should be at the service of managers and workers. In short, these units must focus on the strategy, flexibility and be efficient and customer-oriented simultaneously. Figure 2 shows other six objectives of E-HRM derived from related literature (Kaur, 2013) 17 icmrrjournal@gmail.com

4 LEVELS OF E-HRM SYSTEM : By reviewing the relevant literature, it is inferred that, Lepak and Snell suggested three levels of E- HRM as follow; Operational E-HRM: The first area, operational E-HRM, concerns the basic HR activities in the administrative area. One could think of salary administration and personnel data administration. Relational E-HRM: The second area, relational E-HRM, concerns more advanced HRM activities. The emphasis here is not on administering, but on HR tools that support basic business processes such as recruiting and the selection of new personnel, training, performance management and appraisal, and rewards. For relational E-HRM there is the choice between supporting recruitment and selection through a webbased application or using a paper-based approach (through advertisements, paper based application forms and letters etc.). Transformational E-HRM: Transformational E-HRM, the third area, concerns HRM activities with a strategic character. Here we are talking about activities regarding organizational change processes, strategic competence management. In terms of transformational E-HRM, it is possible to create a change-ready workforce through an integrated set of web-based tools that enables the workforce to develop in line with the company s strategic choices. FUNCTIONS : E-Employee Profile Organizations first started using computers as a recruiting tool by advertising jobs on a bulletin board service from which prospective applicants would be contacted by the employers. Some companies began to take E-applications. Today the internet has become a primary means for employers to search for candidates and for applicants who look for a job. As many web based job portals are there were the employers will post their vacancy position in the job search web portals to stimulate the applicants to apply for that particular job. And this websites help in review resumes of various types. E-HRM is online recruitment. It refers to posting vacancies on the corporate web site or on an online recruitment vendor s website, and allowing applicants to send their resumes electronically via . It also includes the active search of the internet and the location of resumes. However, there is always the danger of resume overload, as well as low reputation and effectiveness of various web sites and databases, not to mention its questionable effectiveness for senior executive positions. E-Recruitment Most employers will recruit their employees from the online job search engines (website like Naukari, Monster) etc. and new selection process are keeping tests online by testing their level of knowledge, behaviour, attitude all those the employer will recruit it properly by conducting all the test online by using strong IT which helps to reduce the cost. E-Selection 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, 18 icmrrjournal@gmail.com

5 intranet/extranet (LAN/WAN), audio-and videotape, satellite broadcast, interactive TV, CD Rom, and more. Training program provides. E-Learning 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).e-learning can offer a solution to training in remote or disadvantaged locations(hirschman, 2001), as well as tailor-made learning that fits the particular needs of the learner (Mumford, 2003), but it can also create barriers to learning, due to lack of hardware, fear of technology and learner isolation. E-Training 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 which reduces the money. E-HRM can also provide managers with information on how to conduct a Performance Appraisal, the specific criteria and measurements of given positions and roles as well as examples and models of effective appraisals. The penetration rate of computer-mediated communication, mainly e- mail, is higher than75percent in corporate environments and has emerged as the communication medium of choice. The and electronic forms on the intranet of the company or a restricted web site are used to gather information on training need s assessment, inducing benefits in terms of less paperwork, lower administration cost, shorter distribution and response time, and higher response rate. E-Performance Management system 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 which reduces the money. E-Compensation As a web-based HR service system, HRIS offers you the flexibility of accessing the program 24/7, from anywhere with internet connection and IT. Anywhere, Anytime Access With the growing awareness for environmental sustainability, many companies are looking for ways to go green. Implementing a HRIS will help reduce almost all of the paperwork associated with HR tasks we can save money and time. Eliminate Majority of HR Paperwork It helps to reduce the cost by defining the work force in advance and to review the past data records of the employee leave etc. ADVANTAGES : Some benefits of E-HRM from various studies are as follows: E-HRM has the potential to influence both efficiency and effectiveness. Effectiveness can be affected by improving the competence of both managers and employees to make better, quicker decisions. A higher internal profile for HR leading to better work culture. It leads to a more transparent system. Considerable reduction of administrative burden 19 icmrrjournal@gmail.com

6 Provides Integral support for the management of human resources and all other basic and support processes within the company A more forceful workflow in the business process, productivity and employee Satisfaction E-HRM can save costs while maintaining the quality of data Decentralization of HR tasks. Standardization Access to ESS training enrolment and self-development. User-friendly interface. Connectivity with the client's existing information system (payroll accounting, ERP, attendance registration, document systems gradual implementation. Parametric and customizability. Access to archived records and documents Employee & time managers self-manage employee mgt. The generation of HR metrics to support strategic decision making (Swaroop,2012). Transforming HR professionals from administrative paper handlers to strategic partners The automation of routine HR tasks and replacing filing cabinets DISADVANTAGES : Illicit Access: One of the basic disadvantages of using E-HRM is that the data gets free accessible to all and anybody can access the strategic information and use it any way without any authorization. It is prone to corruption/hacking/data losses. Specialized Knowledge: one of the advantages of E-HRM is that it may help the organization to reduce the cost HR personnel, though it could increase the requirements for technical staff with knowledge specific technology and functional area as well. Data Entry Errors: E-HRM can only perform as good as its human programmers and end users. Low interpersonal contact: The use of EHRM can estrange staff members that need personal support as it reduces the need for managers to interact with staff Improper use due to rigid mindsets: In order to make proper use of E-HRM, it becomes very necessary for the staff to change their mindsets, as many people still have certain inhibitions in using technology in certain facets of their profession. If this transformation in technology is not synchronized with transformation in the mind set and culture of the organization it can lead to a financial fiasco. Threat to HR Itself: The propensity of being dependent on technology will reduce the reliance on manpower, thus it poses a great risk on the basic foundation of HR, where the Human resources are considered as an asset and capital to achieve organizational objectives and fulfil the mission and vision of the company. E-HRM IS A BOON OR BANE? The Use of technology and Information systems have been a blessing in disguise in making the business processes more effective and efficient, along with saving costs and making the tasks more accurate and less time consuming. Most of the modern day business houses prefer to use the state of the art technological infrastructure and applications. Though the uses of technological updations have 20 icmrrjournal@gmail.com

7 benefited the organizations but it can be disastrous as the easily accessible data can be collected without authorization and can be misused. Also at times the rigid mindsets of people can pose a great challenge to the application of E-HRM. Therefore the mind setoff employees and line managers need to be changed, they have to comprehend and recognize the usefulness of E-HRM and its tools. CONCLUSION : The transformation of Traditional HR to strategic HR where it not only plays the role of an administrative expert, but also becomes the employee champion, a change agent and a business partner has been majorly possible with the use of technological tools and applications, i.e. E-HRM. With the various advantages and disadvantages it can be recommended that all the organizations use EHRM technology, that promises to provide a useful, efficient and Increased performance through this e-hrm technology in spite of all barriers it has to face. REFERENCES: icmrrjournal@gmail.com