e-hrm initiation using concept maps

Transcription

1 Abstract The importance of human resource management in today s competitive world and the abilities of technology, have led to the widespread recognition of electronic human resource management (e-hrm). However, in very few academic researches has the e-hrm domain and its relation to other components been discussed in detail. This paper attempts to provide a better understanding of the e-hrm domain. Given that concept maps are a great tool for the provision of a holistic understanding of a phenomenon, the concept mapping approach is applied here. With this approach all the relevant phenomena to the e-hrm domain are addressed and ultimately a complete concept map of the e-hrm domain is presented. The concept map of the e-hrm domain shows where e-hrm fits in regarding human resource management in the digital age and how it relates to other components to create value. It provides a business case for the introduction of e-hrm within organizations and can help predict and overcome possible problems that might arise with the adoption and usage of e-hrm. Keywords concept maps, e-hrm, value creation e-hrm initiation using concept maps Dr. Ali Bonyadi Naeini; Iran University of Science and Technology, Bonyadi@iust.ac.ir Mehdi Soleimani Malekan; Iran University of Science and Technology, Me_soleimani@vu.iust.ac.ir Arman Kaldi; K. N. Toosi University of Technology, armantia@yahoo.com 1. Introduction In the competitive world of today, technology plays a certain role in the progress and development of organizations. Since human resources have been recognized as the most important asset of the organization (Renckly, 2004), there has been great effort to apply technology to facilitate optimized utilization of this feature. This is where electronic human resource management comes in. Electronic human resource management (e-hrm) is simply a way of doing human resource management (Ruël, Bondarouk, & Looise, 2004) by means of information technology. It has been claimed that e-hrm can provide great value for the organization (Lengnick-Hall & Moritz, 2003). Without value it would be useless to invest in pretty much anything. Thus, it becomes crucial for every organization to fully understand the e-hrm domain and its advantages. If we know how e-hrm relates to other components, and how those components in turn relate to one another, investigating the adoption and usage in order to fully realize the potential benefits of e-hrm would be clearer. There are very few researches that discuss the e-hrm domain in detail. In this paper we try to show the e-hrm domain, its components and their relations by means of the concept mapping approach. Concept maps are an extraordinary means to organize and represent knowledge (Novak & Cañas, 2006). Among other things, a concept map can be used to fully illustrate a certain phenomena, which is why it was chosen for this research to help understand the e-hrm domain. In the following, initially, a thorough review of e-hrm is provided focusing on how it has developed to become an enabler of transformation. Subsequently, concept maps are described along with their potential applications. Basic concept maps of relevant phenomena to the e-hrm domain are then constructed by applying the concept mapping process and ultimately a complete concept map of the e-hrm domain is presented. 2. e-hrm review Human resource management (HRM) is defined as the practice of identifying, selecting, recruiting, training, and developing human resources (Saadat, 2005). As human capital (resources) has become the ultimate source of competitive advantage in today's economy (Ulrich & Brockbank, 2005), it requires a significant deal of attention and support. Technology, on the other hand, has always had a great potential for supporting and 30

2 facilitating HRM. It has even resulted in major changes in HRM so as to provide enhanced value. If the HRM role has always been to deliver the workforce support and management based on the needs of the business, then the role of technology has been that of an enabler (Fletcher, 2005). Figure 1 illustrates the relation between HRM and technology through time: Fig. 1: HRM vs. Technology It is based on this mutual evolution, depicted in Figure 1, that optimum benefiting from human resources (HR) has become possible. New HR-related technologies which focus on decision-making and minimize the administrative tasks of HR can help improve the strategic role of HR and place it in the path of becoming a business partner. An appealing choice for this purpose is e-hrm which can be considered as the new evolution in this field. E-HRM is simply, a way of doing HRM (Ruël, Bondarouk, & Looise, 2004). E-HRM transforms the HR function and assists it in becoming a business partner to the organization by taking care of routine tasks and freeing up time for more strategic work (Fletcher, 2005). The term e-hrm was first used in the 1990s (Panayotopoulou, Vakola, & Galanaki, 2007); (Lengnick-Hall & Moritz, 2003). Despite the many efforts on the subject there is no single unitedly accepted definition for it in the literature; however, a great deal of researchers stress on using the Internet to conduct HR transactions (Lengnick-Hall & Moritz, 2003); (Ruël, Bondarouk, & Looise, 2004); (Ruël, Bondarouk, & Van der Velde, 2007). One rather comprehensive definition is given by Strohmeier: e-hrm is the (planning, implementation and) application of information technology (IT) for both networking and supporting at least two individual or collective actors in their shared performing of HR activities. (Strohmeier, 2007) In this definition, IT serves as both a medium with the aim of connection and integration, and a tool for task fulfillment. In his work, he also proposes a framework for all e-hrm related subjects, which consists of three major classes, namely context, configuration, and consequences (Strohmeier, 2007). What is widely agreed upon about e-hrm is that it has developed through three major phases (levels) (Panayotopoulou, Vakola, & Galanaki, 2007); (Lengnick-Hall & Moritz, 2003); (Walker, 2001); (Fletcher, 2005): 1. Publishing information (increase efficiency and control), 2. Automating procedures (enable insight), 3. Transforming the way HR is conducted in the organization (create strategic value). These levels can also be mapped with the three types of e-hrm technology, namely operational (informational), relational, and transformational (Ruël, Bondarouk, & Looise, 2004); (Maatman, 2006). Table 1 identifies the differences between these three, according to Maatman (Maatman, 2006). 31

3 Table 1: Differences between the types of e-hrm technology based on the manner of support Type of e-hrm Target The impact of the technology Technology capabilities Operational (Informational) Relational Transformation HR department HR function The entire organization Reducing the administrative and informing pressures that are on HR professionals Optimizing the workflow (of HR activities) between the employees, management, and HR professionals Creating a flexible organization, bypassing organizational hierarchy and liberating HR decision-making from bureaucracy Digitalizing HR data and making it available for its stakeholders Automating and supporting the workflow of HR activities, as well as, steering and recording the interactions made when an HR activity is performed Analyzing, processing and distributing HR data, and supporting the (complete) execution of HR Another classification of e-hrm technology is based on its primary end-user target which is either the HR staff or the internal customers of HR. There are eight types of software packages, which can be classified into one of the two groups mentioned in Table 2 (Florkowski & Olivas-Luján, 2006). Table 2: Types of e-hrm technology based on the primary end-user Primary end-user target HR staff Internal customers e-hrm technology HR functional applications Integrated HR suite applications Interactive Voice Response (IVR) systems HR intranet applications Self-service applications Employee Self-Service (ESS) Manager Self-Service (MSS) HR extranet applications HR portal applications Description Software-enabled automation of discrete tasks and responsibilities assigned to the HR function Collection of HR functional applications sold as a unit Phone based, software-enabled tree or menu structure that allows callers to access work-related information and/or input data via voice or telephone-keypad commands Private computer network that provides employees with direct access to linked internal databases and/or a seamless interface with the internet Software-enabled set of HR transactions that can be initiated and completed by company employees, without direct involvement by HR staff Software-enabled set of HR transactions that can be initiated and completed by company managers, without direct involvement by HR staff Private computer network that links the information systems of client-firms to external vendors delivering co-sourced or outsourced HR services Web-based interface that offers a personalized, unified accesspoint to all information sources, tools, and systems individuals need to effectively consume or deliver HR services There are other terms used in the literature as alternatives to the concept of e-hrm, such as business-toemployee (B2E) (Rahim, 2006), virtual HRM (Snell, Stueber, & Lepak, 2002), and web-based HRM (Ruël, Bondarouk, & Looise, 2004). However, since e-hrm refers to a more comprehensive and broader concept than any of these terms (Strohmeier, 2007), it is used for this research. The potential benefits of e-hrm can be summarized as the following (Lengnick-Hall & Moritz, 2003); (Ruël, Bondarouk, & Looise, 2004): 32

4 Enhancements in the strategic orientation of human resource management Client service improvement (in both cases of management and employees) Cost reduction (through improving human resource efficiency and administrative processes) Fit between the business strategy and the human resource strategy The main objective of every organization is to create value for its stakeholders (Ulrich & Brockbank, 2005). In the system view of an organization, all sections and units have a place on the value creation chain, and HR is no exception. Basically the goal is to manage the resources and assets (in this case, human resources) to achieve business performance and create added value. In this paper, we try to provide a way for stakeholders to better understand e-hrm, how it works and how it can create value. 3. Concept maps A concept map is a graphical tool for organizing and representing knowledge (Novak & Cañas, 2006). It was first developed by Joseph Novak to represent organized knowledge. Four types of concept maps include spider, hierarchy, flowchart, and system. The spider concept map is organized by placing the central theme or unifying factor in the center of the map. Outwardly radiating sub-themes surround the center of the map. The hierarchy concept map presents information in a descending order of importance. The most important information is placed on the top. Distinguishing factors determine the placement of the information. The flowchart concept map organizes information in a linear format. The systems concept map organizes information in a format which is similar to a flowchart with the addition of inputs and outputs. The advantages of concept maps are those of visual representation which include (Plotnick, 1997): Visual symbols are quickly and easily recognized; Minimum use of text makes it easy to scan for a word, phrase, or the general idea; Visual representation allows for development of a holistic understanding that words alone cannot convey. While the purpose of concept maps could be to generate ideas (brainstorming), design complex structures (long texts, hypermedia, large web sites), communicate complex ideas, aid learning by explicitly integrating new and old knowledge, or even assess understanding or diagnose misunderstanding (Plotnick, 1997); researchers have used concept maps in their work for one of the following reasons: 1. As a topic of research; mainly learning with concept maps 2. As a cognition tool to help with the understanding or describing of some phenomena 3. As a research method (comprehension and integration of, mostly expert, opinions); for example in planning and assessment of a program Table 3 provides a summary of the intentions of using concept maps in previous research. 33

5 Concept maps Table 3: Intentions of using concept maps Usage intention Instances from literature Application Research topic Cognition tool Research method (Colucci & Flannery, 1983) (Mok & Cheng, 2001) (Kunkel, Chapa, Patterson, & Walling, 1995) (Witte, van der Wal, & Steyn, 2008) (Su, Li, Song, & Chen, 2008) (Sridharan, Campbell, & Zinzow, 2006) (Trochim, Milstein, Wood, Jackson, & Pressler, 2004) Educating the hospitality student Reforming education: Selflearning in a networked human and IT environment Describing gifted students Explaining mystical experiences in health care Understanding consumer s perception of e-commerce quality Developing a united stakeholder-driven timeline Planning a statewide health improvement initiative Constructing a concept map first and foremost requires a good focus question. Based on the focus question relevant concepts are listed; each of which denote an object or event. Using first only a few of the most important concepts, one tries to form good propositions by choosing explicit linking words to relate the concepts. When these few concepts are connected, the result is a skeleton map which represents the base for attaching the rest of the concepts and ultimately producing the concept map. The process of connecting the concepts is continued until all the concepts are somehow attached in a way that the entire concept map would provide an answer to the focus question. In this paper, concept maps will be used as a cognition tool to help better understand the e-hrm domain. 4. e-hrm concept map Based on the concept mapping process described earlier, here, basic concept maps of relevant phenomena are first constructed and then, by putting these concept maps together the thorough e-hrm concept map in an organizational setting is produced. Every organization defines a business as its purpose of existence. It has certain resources in order to fulfill its goals, among which are human resources and adopted information and communication technologies (ICT). Figure 2 represents the skeleton map of what an organization basically is. Fig. 2: Organization skeleton map The organization skeleton map can be completed into the organization concept map, depicted in Figure 3. 34

6 Fig. 3: Organization concept map Resources require management so as to be aligned with organizational goals, and human resources are no exception. Human resource management has strategies and conducts certain activities in order to manage this extremely valuable resource. Figure 4 shows the skeleton map of how HRM works. Fig. 4: HRM skeleton map Human capital management (HCM), on the other hand, is a relatively new term in the HRM literature. HCM is a strategic approach to people management that focuses on the issues that are critical to the organization's success (Baron & Armstrong, 2007). It stresses on measurement and contributes to the organization by linking HRM strategies with business performance (Baron & Armstrong, 2007). Figure 5 illustrates a basic HRM concept map considering HCM as a supplementary element. 35

7 Fig. 5: HRM concept map (taking HCM into consideration) The problem concerning HCM, and in turn HRM, is that humans are unlike other resources; strategic decisionmaking must be based on real-time information and for that, accurate and standardized measurement possibilities are required. This is where technology comes in. HR-related technologies which focus on decisionmaking can help overcome this issue. An appealing choice for this purpose is e-hrm which creates added value by freeing up time for the HR professionals to make strategic decisions regarding human resources, placing HR in the path of becoming a business partner. Figure 6 illustrates the relation between HRM, HCM, and e-hrm. Fig. 6: Relation between HRM, HCM, and e-hrm Table 4 compares the three concepts of HRM, HCM, and e-hrm: 36

8 Table 4: Comparison between HRM, HCM, and e-hrm Actors Activities Consequences HRM HR staff HR functions Increase efficiency and control HCM everyone Focus on measurement Added value through people e-hrm everyone HR functions plus strategic decisionmaking role for HR Strategic orientation of HR Client service improvement Cost reduction Fit between the business strategy & HR strategy This brings us to e-hrm. Figure 7 gives the skeleton map of what e-hrm essentially is. Fig. 7: e-hrm skeleton map Based on what was described in section 2, the e-hrm skeleton map can be completed into the e-hrm concept map depicted in Figure 8. Fig. 8: e-hrm concept map Now that each of the relevant phenomena has been discussed, a skeleton map of the e-hrm domain can be established. An important matter that should be considered here is that an organization exists to create value, 37

9 specifically, for its stakeholders. Therefore, all of its sections, departments and processes exist to create value. HRM creates value by managing the human resources of the organization. HCM complements HRM. And e- HRM basically supports them both, freeing up time for the HR professionals to make strategic decisions regarding human resources. Figure 9 shows the skeleton map of e-hrm in an organizational setting. Fig. 9: Skeleton map of the e-hrm domain The skeleton map can be expanded into a more complete one depicted in Figure 10. Fig. 10: Enhanced skeleton map of the e-hrm domain As depicted in this skeleton map, within the organizational domain, the configuration and maintenance of e- HRM is the responsibility of both HR professionals and ICT managers. And as mentioned earlier, e-hrm supports all HRM activities and helps HR become a business partner. 5. Conclusions 38

10 In order to address issues such as adoption and usage, a clear understanding of the e-hrm domain is required. Knowing how it works and how it relates to other components within the organization to create value, would facilitate the full realization of the potential benefits of e-hrm which would ultimately affect the entire organization. In other words, reaching these benefits might not be possible without such an enlightenment. The concept map of the e-hrm domain presented in this paper provides such a clear and holistic understanding by addressing all the relevant phenomena concerning e-hrm. It thus can be used as a business case for the introduction of e-hrm within organizations and can also help predict and overcome the complications that might occur during institutionalization. References: Baron, A., & Armstrong, M. (2007). Human capital management: Achieving added value through people. London: Kogan Page. Colucci, A. L., & Flannery, M. J. (1983). Educating the Hospitality Student: Successful Teaching Techniques and New Teaching Methods. Journal of Hospitality & Tourism Research, 8, Fletcher, P. A. (2005). From personnel administration to business-driven human capital management: The transformation of the role of HR in the digital age. In H. G. Gueutal, & D. L. Stone (Eds.), The brave new world of ehr; Human resources management in the digital age (pp. 1-21). John Wiley & Sons, Inc. Florkowski, G. W., & Olivas-Luján, M. R. (2006). The diffusion of human-resource information-technology innovations in US and non-us firms. Personnel Review, 35 (6), Kunkel, M. A., Chapa, B., Patterson, G., & Walling, D. D. (1995). The Experience of Giftedness: A Concept Map. Gifted Child Quarterly, 39, Lengnick-Hall, M. L., & Moritz, S. (2003). The impact of e-hr on the Human Resource Management function. Journal of Labor Research, 24 (3), Maatman, M. (2006). Measuring the effectiveness of e-hrm: The development of an analytical framework for the measurement of e-hrm and its application within a Dutch Ministry. Master s Thesis, University of Twente, Netherlands, Business Administration program. Mok, M. M., & Cheng, Y. C. (2001). A theory of self-learning in a networked human and IT environment: implications for education reforms. International Journal of Educational Management, 15 (4), Novak, J. D., & Cañas, A. J. (2006, 1). The Theory Underlying Concept Maps and How to Construct and Use Them. Retrieved 2008, from Technical Report IHMC CmapTools: Panayotopoulou, L., Vakola, M., & Galanaki, E. (2007). E-HR adoption and the role of HRM: evidence from Greece. Personnel Review, 36 (2), Plotnick, E. (1997). Concept Mapping: A Graphical System for Understanding the Relationship between Concepts. ERIC Digest. Rahim, M. (2006). Understanding adoption and impact of B2E e-business systems: Lessons learned from the experience of an Australian university. Adelaide: CollECTeR. Renckly, R. B. (2004). Human Resources. Barron's Educational Series. Ruël, H. J., Bondarouk, T. V., & Van der Velde, M. (2007). The contribution of e-hrm to HRM effectiveness: Results from a quantitative study in a Dutch Ministry. Employee Relations, 29 (3), Ruël, H., Bondarouk, T., & Looise, J. K. (2004). e-hrm: Innovation or irritation, An explorative empirical study in five large companies on web-based Human Resource Management. Management Revue, 15 (3). Saadat, E. (2005). Human resource management (in Farsi) (8 ed.). Tehran: The organization of study and collection of human sciences books for universities. Snell, S. A., Stueber, D., & Lepak, D. P. (2002). Virtual HR Departments: Getting Out of the Middle. In R. L. Heneman, & D. B. Greenberger, Human resource management in virtual organizations (pp ). Information Age Publishing. Sridharan, S., Campbell, B., & Zinzow, H. (2006). Developing a stakeholder-driven anticipated timeline of impact for evaluation of social programs. American Journal of Evaluation, 27 (2), Strohmeier, S. (2007). Research in e-hrm: Review and implications. Human Resource Management Review. Su, Q., Li, Z., Song, Y., & Chen, T. (2008). Conceptualizing consumers' perceptions of e-commerce quality. International Journal of Retail & Distribution Management, 36 (5), Trochim, W. M., Milstein, B., Wood, B. J., Jackson, S., & Pressler, V. (2004). Setting objectives for community and systems change: An application of concept mapping for planning a statewide health improvement initiative. Health Promotion Practice, 5 (1), Ulrich, D., & Brockbank, W. (2005). The HR value proposition. Boston, Massachusetts: Harvard Business School Press. Walker, A. J. (2001). Web-based human resources: The technologies and trends that are transforming HR. McGraw-Hill. Witte, A. S., van der Wal, D. M., & Steyn, H. C. (2008). Mystical Experience in the Context of Health Care. Journal of Holistic Nursing, 26,