Studying Perceived Usefulness and Perceived Ease of Use of Electronic Human Resource Management (e-hrm) with Behavior Intention

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1 International Journal of Business Management (IJBM) Volume 1 Issue Studying Perceived Usefulness and Perceived Ease of Use of Electronic Human Resource Management (e-hrm) with Behavior Intention Nor Izzati Nor Redzuan, Nurulhuda Ahmad Razali*, Noor Awanis Muslim, Wan Noordiana Wan Hanafi Department of Management and Human Resource, University Tenaga Nasional, Malaysia Keyword Perceived Usefulness Ease of use e-hrm Behavior intention ABSTRACT e-hrm has becomes increasing widespread in this upcoming era of technology. In this era of electronic management revolution, it is important to create efficient and effective relationship with human resource. e-hrm technology supports the human resource function to comply with the needs of the organization through web technology-based channels. The purpose of this study is to investigate the relationship of perceive usefulness and perceived ease of use of employee s behavior intention to use e-hrm. By using Technology Acceptance Model (TAM) two variables will be used which are perceived usefulness and perceived ease of use to investigate behaviour intention of employee.this study reveal that both variables play important role of employee acceptance to use e- HRM in organization. *Corresponding Author. address: Huda@uniten.edu.my 1. INTRODUCTION In practical, e-hrm enables the HR manager to get all the data compiled at one place and can make the analysis and decisions on the personnel effectively. It shows that e-hrm plays a crucial role in HR department. Ruel et al. (2007) stated that e-hrm is mandatory to increase a company performance. The main objective why e-hrm is used in many companies are 1) to minimize paperwork or manual job, 2) speed the process specifically in implementing HR strategies, policies, and practices and, 3) to comply with the HR needs of the organization through webtechnology based channels (Ruel et al., 2007). The development of e-hrm is always associated with Technology Acceptance Model (TAM). In Malaysia, Yusliza (2012) had conducted a research on e-hrm using TAM as underpinning 118

2 theory. She noted that e-hrm is worth to be implemented in the organization as the outcomes are able to enhance organization s performance. Ramayah et al, (2011) also had similar finding that e-hrm is useful to be exercised in human resource department. However, it still a few of findings regarding perceived ease of use and perceived usefulness towards e-hrm behavior intention in Malaysia. Perceived ease of use and perceived usefulness are two main variable that been discussed in Technology Acceptance Model (TAM). Therefore the aim of this research is to investigate perceived usefulness and perceived ease of use of e-hrm towards behavior intention. 2. ELECTRONIC HUMAN RESOURCE MANAGEMENT (e-hrm) e-hrm plays a major role in compiling data at one place and assist to conduct the analysis and decisions on the personnel effectively. e-hrm covers such services such as e-training, e-learning, and e-recruitment. It also considered as a communication tools between employer and employee (Paauwe, 2009). Technology in e-hrm usage has changed increasingly from traditional selection method which is applicant has to visit the company to apply in paper application and interviews (pre selection) to non-traditional method. Research finds that e-hrm is design and delivers the HR practices by increasing utilizing IT (Zafar et al, 2010). For instant, with e-hrm employee can have easy access to information needed such as changes and manage their personal file, application for training, leave, and claim application and even apply internally for a new job (Sanayei & Mirzaei, 2008). Nidhi Oswal & Narayanappa (2014) stated that e-hrm can be the most powerful system to enhance organizational effectiveness and the concept of sustainability. Concept of sustainability is referred as a green process where by many HR processes had been transformed into online processes; paperless. It also can perform HR activities and can help the company to upgrade their web based technology and accelerate the flow and implementation of business strategies and processes (Nidhi Oswal & Narayanappa, 2014). According to Lengnick-Hall and Moritz, (2003) to 119

3 create a new avenues e-hrm provides the human resource department functions to organizational effectiveness through such means as knowledge management and the creation of intellectual and social capital. According to Foster, (2010) time is money, the company want to reduce costs by implementing e-hrm in human resource department. The use of technology will reduce the transaction costs and region costs (Bell, Lee, & Yeung, 2006). Furthermore, e-hrm also give an advantages such as less paperwork or manual job (Olivas-Lujan et al., 2007). Refer to Hendrickson, (2003); Panayotopoulou et al.,(2007) it is assumed that e-hrm reduces the amount of paperwork for the employee especially form HR staff. Less paperwork can increase the accurate data and this directly affects the efficiency of the HR Departments (Zafar, 2010). As mentioned earlier, e-hrm cover services such e-training, e-learning, and e-recruitment. e-training is a process implemented in organization since it not has the limitation of traditional training. (Bell et al 2006). Strother (2002) mention that rather than using traditional training they used e-learning because it less expensive which is the company do not have to book training room, pay for travel cost and trainers. Secondly is e-recruitment, it used to minimize the time and cost. Stone et al (2006) stated that one of the objectives of the e-recruitment process is to advertise job vacancy with the biggest amount that many of potential candidates can apply it easily. Emma & Shaun (2011) said e-recruitment process will help companies to reduce the number of HR personnel, which give the result in efficiency savings. Organization not only share important details about the job position that available in their company by using online recruitment system but they also can share the specific information such as job description (Stone et al, 2006). In addition, the utilization of web-based HRM mainly rely on Technology Acceptance Model (TAM). Technology Acceptance Model (TAM) has become the strongest model to determine the employee acceptance. (Venkatesh & Davis, 2000). According to Davis et al. (1989), TAM shapes the establishment of the acceptance model and incorporates two particular convictions which is perceived usefulness 120

4 and perceived ease of use. This two had been used to identify the acceptance of an information system by people and it explain the behavioral intention and to use of the system. 2.1 Theory of Technology Acceptance Model (TAM) The acceptance of e-hrm is underpinned by a theory of Technology Acceptance Model (TAM). The TAM has been introduced by Davis (1989). The goal of TAM was to provide an explanation of the determination of computer acceptance that is generally capable of explaining user behaviour across a broad range of end-user computing technologies and user populations, while at the same time being both parsimonious and theoretically justified (Davis, 1989). In TAM there are two important factor of attitude and intention to use of information system which are perceived ease of use (PEOU) and perceived usefulness (PU). According to TAM, usage behavior is a direct function of behavioral intention which in turn a function of attitude toward usage reflect feelings of favorableness or unfavorableness toward using the technology and PU which reflect the belief that using the technology will enhance performance. Attitude is determined jointly by PU and PEOU (Davis, 1989). (Yusliza et al, 2009) TAM is used due its ability as an information systems that provide on how users come to accept and use a technology (Legris, Ingham, & Collerette, 2003). With TAM it able to provide understanding of employees towards e-hrm acceptance. TAM consists of two variables 1) perceived ease of use and 2) perceived usefulness Perceived Usefulness Perceived usefulness (PU) was defined as the degree to which a person believes that using a particular system could enhance his or her job performance (Davis, 1989). It is the extent to which an individual believes that using the system enhances his/her performance. Within the organizational context, a system that is high in perceived usefulness is one that the user believes will have a positive useperformance relationship. (Yusliza et al, 2009). 121

5 Perceived usefulness is used to measure the level of an individual believes that using e-hrm system would enhance his or her job performance. Lee, Cheung, & Chen (2005) noted that perceived usefulness is important to be considered due to it had an impact on employees attitude and behavior intention to use e-hrm. Perceived usefulness is when a person utilize the technology existed to complete, manage, and inform the task given by their employer. Employee, who used this e- HRM will expand his performance in a company setting and policies. Therefore it also refers to customers discernments with respect to the result of the experience. (Davis; 1993). Computer acceptance character is determinants for technology acceptance model in perceived usefulness and its significance has been recognized in innovation selection (Agarwal and Prasad, 1997) Perceived Ease of Use PEOU is defined as the degree to which a person believes that using a particular system would be free of effort. (Davis, 1989). PEOU measures user assessments of ease of use and ease of learning. PEOU, thus, deals with user motivation that is based on the assessment of the intrinsic aspect of using the IT, such as its interface and the process involved in using it (David Gefen et al, 2000) It measure degree of an advancement easy to comprehend, learn or work. Referring to Zeitham et al. (2002) explain that the extent to which a development is straightforward or use could be considered as perceived ease of use. Then, according to Thong et al, (2004) it is easier for the user to communicate with the system which is useful for the particular person. (Chau, 2001; Hong et al., 2002; Thong et al., 2004; Ramayah and Aafaqi, 2004; Ramayah., 2006; Lallmahamood, 2007; Shim & Viswanathan, 2007; Amin, 2007) 2.2. Behavior Intention According to Fishbein and Azjen (1975) stated that behavior is control by his intention which thus dictated by one s attitude towards behavior and subjective standard about the behavior. Ramayah et al., (2003) Legris et al., (2002) 122

6 characterized intention as the degree to which individuals has figured an arrangement to do or not to do some state of mind Perceived Usefulness and Perceived Ease of Use with Behavior Intention Davis (1989) characterized perceived usefulness as 'the prospective user's subjective likelihood that utilizing a particular application system will expand their employment execution inside of a hierarchical connection'. At the point when employee think that it s simple to utilize e-hrm system, they will consider this system more helpful. Behavior intention to use e-hrm is influenced by perceived usefulness and perceived ease of use. Since behavioral intention is based on cognitive choice, a potential e-hrm users can either respond favorably or unfavorably towards engaging in e-hrm system. Perceived usefulness is refers to the degree to which a man trusts that utilizing a specific system would upgrade his employment performance. Perceived ease of use refers to users beliefs that using a particular system are without difficulty and effort (Davis, 1989). Perceived usefulness is likewise impacts by perceived ease of use because of other things are equivalent; the system could be more valuable the length of it is less demanding (Venkatesh & Davis, 2000). Many researchers concluded, both theoretically and empirically, that the easy use of technology will lead to peoples' perception of usefulness (Cakmak et al., 2011; Ghorbani & Madani, 2011; Lai & Chang, 2011; Wen, Prybutok, & Xu, 2011; Wu & Gao, 2011). Hyphotesis 1: There is a relationship between Perceived Usefulness and Behavior Intention Hyphotesis 2: There is a relationship between Perceived Ease of Use and Behavior Intention 123

7 3. RESEARCH FRAMEWORK Independent Variables Dependent Variables Perceived Usefulness Behavior Intention Perceived Ease of Use Davis et al. (1989) 4. RESEARCH METHOD For this research, the target population are from government linked Companies (GLC) in Kuala Lumpur. Data was collected using the questionnaire which was developed based on the instruments by Technology Acceptance Model Davis (1989) Data that were gathered, is analyzed using the SPSS (Statistical Package for Social Science). Pearson Coefficient Correlation were applied to show the relationship between perceived usefulness and perceived ease of use of e-hrm towards behavior intention. 5. RESULT AND ANALYSIS 5.1. Demographic Characteristics Several demographic variables were measured by the questionnaire. There are 150 respondents who participated in the study, (52%) of the respondent are males while the remaining are females (48%). The highest percentage of respondent race is Malay which is (38.7%) followed by Chinese (30%) and Indian (27.3%). Majority of the respondent working position are came from middle level which is (49.1%). As for the years of service below 5 years is (34%) and followed by 5-10 years of service (33.3%) Majority of age of the respondent are (37.3%) followed by (26%). Academic qualification of respondent consists of 124

8 Bachelor Degree (48.7%) followed by Diploma (36.7%), SPM (7.3%), and Master Degree (7.3%) Reliability Analysis As shown in table below, it implies that both variables are consistent and reliable due to their Cronbach (α) value more than 0.6. Table 1: Cronbach s Alpha Coefficient for Perceived Usefulness and Perceived Ease of Use with Behaviour Intention Variables Number of Items Cronbach s Alpha Perceived usefulness Perceived ease of use Behavior intention Correlation Analysis Table 2: Correlation between perceived ease of use and perceived usefulness towards behavior intention meanpu meanpeou meanbi meanpu Pearson Correlation **.605 ** Sig. (2-tailed) N meanpeou Pearson Correlation.590 ** ** Sig. (2-tailed) N meanbi Pearson Correlation.605 **.664 ** 1 Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). Table above reveals that perceived use and perceived ease of use are able to influence the intention of employee to use e-hrm. Both indicate at more than half level; 60.5% and 66.4 respectively. Both p-value are less than 0.01 (p<0.01), thus the both hypotheses are supported. The findings are in line with previous researchers (for example, Cakmak et al 2011; Ghorbani & Madani 2011; Lai & Chang 2011; Wu & Gao 2011). 125

9 6. Conclusion As a conclusion, the e-hrm system must be endowed with good characteristics (example, flexible, specific, friendly-approach) in order to generate perceived ease of use and perceived usefulness. This is important in gaining employees intention to use e-hrm 126

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