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C H A P T E R
7
Exploring the Relationship
between e-HRM and HRM
Effectiveness: Lessons Learned
from Three International
Companies
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Huub J.M. Ruël and Tanya Bondarouk

The basic expectations when implementing e-human resource

management (e-HRM) are that its use will decrease costs,
improve the human resources (HR) service level, and give the
HR department space to become a real strategic partner. Or,
in other words, HRM will become more effective through the
application of e-HRM. This basic expectation is emphasized
by software companies and e-HR consultancies, but it has not
been subjected to extensive academic research. In this chapter,
we present the outcomes of a comprehensive qualitative study
on the link between e-HRM and HRM effectiveness. This study
was conducted in three large international companies from
contrasting sectors. It shows that, overall, the content and the
structure of e-HRM applications can have a positive effect on
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162 Technology, Outsourcing and Transforming HR

technical and strategic HRM effectiveness. In terms of the link

between e-HRM and the commitment of employees, it seems
that through using e-HRM applications, respondents sense that
they are receiving more attention in terms of receiving infor-
mation and development opportunities, which may make them
more committed to the organization.

Introduction
e-HRM, the use of web-based technologies for human resource
management practices and policies, is maturing within organi-
zational life. Much is claimed and expressed about the advan-
tages of e-HRM, but proof of these advantages is scarce. There
is no clear evidence that answers the question as to whether
e-HRM contributes to HRM effectiveness. Consultancy firms,
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rather than academics, have made the initial attempts to inves-

tigate whether the efforts put into e-HRM lead to the expected
outcomes, but these attempts tend to be somewhat subjective.
The involvement of academia in this topic is more recent and
has not yet led to rigorous answers.
In this chapter, we present the results of a predominantly
qualitative study on the question as to whether e-HRM
contributes to HRM effectiveness. The chapter is structured
as follows: first, we summarize developments in research on
e-HRM and on HRM effectiveness; second, we focus on our
specific line of reasoning, present the research model used,
and describe our research methods; third, we present our
extensive qualitative results; and, finally, we end with some
conclusions and a discussion of what they mean for academics
and practitioners.

Developments in research
on e-HRM
We define e-HRM as a way of implementing HRM strategies,
policies, and practices in organizations through the conscious
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Chapter 7 e-HRM and HRM Effectiveness 163

and directed support of, and/or with the full use of, channels
based on web technology. The word ‘implementing’ in this
context has a broad meaning, such as making something work,
putting something into practice, or having something real-
ized. e-HRM, therefore, is a concept – a way of ‘doing’ HRM
(Ruël et al., 2002; 2004). Note, that this does not ignore the
fact that e-HRM can transform the nature of HRM strategies,
policies, and practices, as is indeed suggested by the model
of Ruël et al. (2002; 2004). However, this is seen as a conse-
quence that emerges over time and which is difficult to man-
age. This makes it a very interesting topic for research – but it
is beyond the scope of this chapter to consider how e-HRM is
conceptualized.
The literature on e-HRM suggests that, in general terms, the
three goals of e-HRM are cost reduction, improving HR ser-
vices, and improving strategic orientation (Brockbank, 1997;
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Lepak and Snell, 1998; Stanton and Coovert, 2004; see also
Chapter 1: Technology, Outsourcing, and HR Transforma-
tion: an Introduction). Some empirical findings have added
to these goals with globalization seen as a driving e-HRM
force in international large organizations. However, empirical
findings also show that these goals are not clearly defined in
practice and that e-HRM is mostly directed at cost reduction
and increasing the efficiency in HR services, rather than at
improving the strategic orientation of HRM (Gardner et al.,
2003; Ruël et al., 2004; Ruta, 2005). A recent study has found
that in nearly half of the companies investigated with a com-
pletely integrated human resource information system, HR
was not seen as a strategic partner (Lawler and Mohrman,
2003).
Ruël et al. (2002) noted an aspect that is fairly well
covered by the above summary but which is, nevertheless,
interesting to highlight, namely the changing nature of the
employment relationship in many business systems. With a
supply shortage in many labor markets (during the eco-
nomic upturn of the 1990s), the individualization of society
and the increased educational level of citizens (and thus of
employees), the power balance in the employment relation-
ship shifted in the direction of employees: and they wanted
to set their own career paths. In our view (Ruël et al.,
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