IMPACTS OF HR AUTOMATION IN HUMAN

RESOURCE FUNCTIONS IN AN ORGANIZATION

Belinda Maria Mendis and Krithika. K
M-com students, Mount Carmel College Bangalore 560052
belindamendis98@gmail.com krithikaron19@yahoo.com

INTRODUCTION:
It’s a global wide trend that has been under way for nearly a decade, the role and responsibilities
of human resource managers shifting from administrative to strategic. That's why most of the
organizations implementing Information Technology into human resources for the controlling
of human capital and their potential usage for their business excellence in the competitive
knowledge economy. Since the human resource work is considered to be the most time
consuming a tedious work the mangers are in the look for making their work easier. The
business competitiveness that is currently prevailing in the market demands more success under
any circumstances. Therefore, HR managers have to access all sort of data, whether it is related
to the finance, sales, marketing, manufacturing, supply chain, customer relation and human
resources data. Most of the firms are outlay large amount of time for administrative purpose to
provide the recruitment process to retirement process and so on. This administrative burden
keeps away from the core business and its impact on the organization development.HR
automation is the process of transitioning paper-based HR processes into streamlined every
organization are now looking for more advanced methods of automation, which may help them
to manage various complex processes such as, Data storage, Data control and modifications,
Effective communication process enhancement, better connectivity with all departments easily
and swiftly which would also be useful for the long term goals of the organization. HR
automation helps in enchasing the efficiency in the HR department by freeing the employees
from manual tasks in the organisation. This will allow them to focus on complex tasks like
decision making and strategizing. By automating standard and repetitive HR activities,
organizations can reduce the cost and time they spend on manual HR planning and processing.
The HR automation also includes generating of new software and applications which will help
in getting the work done quicker.
BACKGROUND:

Human resource management is of paramount importance for the success of any organization;
Human resource management is not the modern approach of managing the human elements of
the enterprise, it came into existence in 1970s, the HR activities are practiced since when the
employer and employee relationship came into existences such as (managing the staffs, welfare
to employee, pay rolls etc) in a small or large organization. The evolution began through rapid
technological transform, shift in working culture, and human creativity, innovations and
perceptions. As the industrial organizations grew the human resource management also gained
more importance. The Functions of Human resource management apart from hiring, selection,
staffing, training and development and managing the monetary aspects of the employee
however they have gone way beyond of satisfying the psychological needs of the employees
such as working environment, boosting their self-esteems, motivating, creating secured feeling
of their jobs etc. It’s a global wide trend that has been under way for nearly a decade, the role
and responsibilities of human resource managers shifting from administrative to strategic.

LITERATURE REVIEW:

Most of the studies show that HR automation helps in achieving primarily four objectives i.e.
reduce on time spent on administrative work, cost reduction, self-services and morale.

 According to Altarawneh and Al-Shqairat (2010); Ball, (2001); Martinsons, (1994);

Ngai and Wat, (2006); Ruel et al.,(2004) The research paper was mainly focused on the
HR automation that helps in removing errors in any of the HR functions and the
information of this paper was collected by primary data by distributing questioners,
these researchers concluded that the HR automation make the streamline the
administrative process, erase the errors and delete the repetitions and these applications
support to HRIS in cost and time reduction process and it raises efficiency at task
process.
 Dr M Nishad Nawaz and Dr Anjali Mary Gomes (IJMIE Volume 4, Issue 2 ISSN: 2249-
0558) has attempted to study how the HR automation has enhanced the HR functions
and has helped in increasing the employee’s proficiency in their work and also to
understand the is it helping in the efficiency in the employee’s morale. This paper was
conducted by secondary data. The researchers have focused on the HR functions like
 HR Management RM: Recruitment Management ReM: Reimbursement Management
ESM: Employee Suggestion Management OCM: Organization Change Management
TrM: Training Management PM: Payroll Management PFP: Policies Forms Publishing
EMSS: Employee & Management TM: Talent Management Self Services (ESS&MSS)
TE: Travel & Expenditure etc. They concluded the study stating that adding the HR
software’s into the HR functions it can help in the betterment of the organisation
performance and also add up to the increasing the employee’s morale.
 Dr. Chandrashekhar Uppin (International Journal of Academic Research and
Development ISSN: 2455-4197 Impact Factor: RJIF 5.22 www.academicsjournal.com
Volume 2; Issue 6; November 2017; Page No. 254-257) has made a study on how HR
automations has benefited the organisation. This paper was conducted based on primary
data by distributing questionnaires by using Cronbach’s alpha they used it to collect the
data, and a pilot study was undertaken on the samples to test the questionnaire. Factor
analysis is used to find factors among observed variables. Form the various respondent
they got the results where more than average number of respondents agrees that there
is a timely availability of information to carry on the work process. Maximum number
of respondents agrees that HR automation will help in the timely credit of their salary
or income. The researchers have concluded the paper by finding out the HR automation
has indeed brought out the better performance leading to bringing better benefits to the
organisation.

RESEARCH METHODLOGY:
 This research is descriptive in nature and tells about the background, meaning and the
impacts of automation in HR in various functions, which is based upon the secondary
data; the relevant data is collected from various journals, blogs, research paper, websites
and articles.

OBJECTIVE OF THE PAPER:

1. To study the role of HR automation in various HR processes.

2. To study the scope of HR automation in smaller organisation.

ANLAYSIS OF THE PAPER:

1)The first objective of the paper is to understand how each of the HR functions in an
organisation will be affected if HR automation is out into practices. And to identify the impacts
of automation in the HR practices in the organisation. The various HR functions includes
recruitment, payrolls, time reports, record management, benefits, tax documents and forms,
evaluation, performance management, layoff process, employee onboarding, leave request etc.

RECRUIMENT – As one of the major tasks of a HR department is recruitment which is

identifying the need of a firm and appointing the right candidates for the job role is a very
tedious task as in whole, it is also time consuming and lacks at time in taking the strategic
decision. Organizations if adopted automation in HR functions they use AI to pick suitable
resumes from online pools. This allows the human effort to be saved for tasks that require
judgment calls. Automating recruitment can improve the experience substantially by reducing
human error, preventing paperwork loss, and also improving visibility of the of the status of
the hire between departments. Moreover, having an AI application integrated to the HR
automation solution can make recruiting and much more interactive where the hr chatbot can
guide new employees on how to fill in the information. HR chatbots can clear any of the doubt
of employees have, thereby saving lots of HR time and enables HR to focus on more strategic
business aspects. In addition, a number of procedures need to be performed and form must be
completed including:

 The department managers hiring request and its approval

 The request to HR to begin the selection process
 Looking over internal candidates opening an external vacancy and the announcement
of the vacancy
 The selection of resumes and subsequent calls to candidates for interview and dates
 HR applicant interviews

PAYROLLS – As one of the HR functions Payroll is considered to be the most important

element as part of retaining employee’s in an organisation. All employees work to get their part
of remuneration for the job performed. On time processing of payrolls is a very critical process
for an HR manager. This is time consuming and also cases delay in the payments. Businesses
that wish to retain competent teams and vendors. Automation software can help these processes
function seamlessly. HR teams are also responsible for benefits administration to employees,
which can be streamlined with automation. Benefits of automating payroll process includes:
 Accurate Calculations: Rather than entering taxes, deductions, over-time, commissions, and
other discrepancies, each and every time, automation will automatically calculate all unique
points for you and identify the correct results.

 Payroll Records: The IRS mandates that employees’ tax records are held for a minimum of 4
years, and the US Department of Labour requires that payroll records be kept for at least 3
years. Having these recorded digitally versus in file folders in various locations saves a lot of
time and headaches if there is an audit.

 Better Time Management: Reduce errors of manually recording hours worked or time-off
requests, preventing over or underpaying your employees. This leads us into the next feature.

TIME REPORTS- If the organisation has a practice of keeping track of time when the
employee’s login and logout in a traditional way of maintaining an attendance book, it can
cause a lot malpractice and it is prone to a lot of errors. If automation is used in this field it will
make the organisation understand who are employees punching in on time and leaving early.
There are various ways for digital time tracking such as investing in a biometric clock or having
an own website which helps in tracking time spent on a work. This data would also act as an
evidence in case of any issues.

RECORD MANAGEMENT- Records management is introduced to as one of the recent

HR trends where this process helps in maintaining records of an induvial employee to keep
track of his or her performance in the organisation. It goes more deeper than IRS and USDOL
guidelines. Automating these records will not only reduce the burden of having to shift through
years of paperwork to find a certain document and enable on call access to any information that
is needed in a click of a button. It also helps promote better.

BENEFITS- Benefits is a part of compensation strategies in the HR functions. A lot of direct

and indirect benefits are provided to the employees. The company cannot stick with their initial
benefits in a long run as life changing series are constantly shifting, employees’ benefits are
not very easy to be tracked. Managing employee benefits via an online portal can reduce the
cost of benefits administration. If this process is automated the organisation will have automate
benefits platform, few of the benefits are as follow:

 Automating the benefit eligibility process

 Educating employees at the time of enrolment of the company’s benefits offered and their
options
 Allowing the employees to make modifications to their plans for life changing events such as
marriage, a new child, vacations, or a move
 Eliminating the headache of managing open enrolment, onboarding, and other benefits.

TAX DOCUMENTS AND FORMS- When it comes to tax compliance automation

gives you the opportunity to scale up quickly. Automating the organisations tax documentation
and using a cloud-based service helps you to verify the correct taxes rate that is required to be
paid to the government in the end of a financial year and give’s benefits to update information
on required rates from across the globe.

EVALUATION- As a HR manager seeing through that the employees are doing their
assigned task on time is one most important HR functions as a manager. But looking through
each and every work of the employee is an impossible task because it is time consuming.
Automating this evaluation process helps the business to tackle the employees work. This can
be created by a streamline automated process for evaluating employees and help them
understand their job roes clearly, helps the managers keep track of things they need to work on
as well.

PERFORMANCE MANAGEMENT-HR teams also have to manage a significant part

of an employee’s development at work along with their managers. Activities such as appraisals,
timesheet tracking, leave management, and event planning are just a fraction of what their work
entails. Automating these processes with effective HR software’s can ensure efficiency and can
help in achieving faster turnaround times and this helps the employees as well as the managers.

LAYOFF PROCESS- Like hiring the dismissal of an employees is also a bureaucratic

repetitive and highly critical process. Any mistakes can lead to financial losses such as fines
for errors in calculations or even labour lawsuits, hence automating this HR process can lead
to better communication and procedure will be standardized and follow established standards.

EMPLOYEE ONBOARDING-A company typically deals with multiple onboardings

and formalities every month. A large part of these two processes is predictable and repetitive.
From collecting documents and training to conducting exit interviews, it’s good business sense
to automate these HR process Automating them facilitates deeper insights and feedback that
can be utilized to improve HR functions in future, the firm can sent notifications and data is
shared without overburdening the HR staff one of the advantages of automating this process
is as employee integration is that this can make the firm appear to have more staff.

LEAVE REQUEST- Holiday request is of the such process which is excessive and done
manually. An automated license application means that the employees can start with a form
that automatically show the number of das available for use in different categories. HR mangers
can also quickly see a shared calendar to ensure there are no dependencies. Once approved HR
and financial processing is only a formality since all other details have been verified by the
system.

2)IMPACT OF HR AUTOMATION IN SMALL ORGANIZATIONS:

Automation in small business units is turning to be more of feasible option. As hr software

provide number of flexible options such as pay as you use, providing simple and affordable
plans, and work from anywhere etc which results to be cost–effective to the organization.

For a small business handling and planning of recruitment process may be more time
consuming as well it inures cost, so automation in recruitment can Simplify recruitment
processes, it is pretty must impossible for manage the resumes that an hr department receives,
if automated the resumes are filtered automatically according to the organizational preferences.
Which is less time-consuming process and also it increases the organizational efficiency.

Automated workflows are a simple but powerful mechanism for tracking tasks as they progress
from one employee to another. Workflows provide improved efficiency, standardization of
working methods, and streamlining responsibilities.

With HR cloud, you don’t need to invest in serious hardware; you just need to go online to
access all of the features and benefits of an HRMS. The employees and organization now have
the opportunity to access it anytime, anywhere using the online device of their choice.

The small organization should more focus developing their organization; if their hr system is
being automated, they can reduce the initial cost for the business and utilize their funds to
increase the size of the organization. Different workflows can be created based on each user’s
role in the company. It streamlines processes and helps HR departments spot any deviation
from the normal flow of human resources information. It also sees the employee engagement
and turns to be more productive workplace.
FINDINGS AND SUGGESTIONS:
 Currently many software has already come into the market in pertaining to HR
automation for e.g. kiss flow hr cloud.
 According to personnel today about 38% of the enterprises are already using AI in their
workplace
 Nearly 40% of companies are using some form of AI in HR alone.
 Few major companies like Willis tower Watson employees wants their work to be
automated e by the year 2020.
 5.45% of companies are still in the early stages of basic automation via software
suggest.
 HR automation helps in saving time by 67% according to a survey, it removes human
bias, it also saves money and it creates ability to deliver the best candidate match for
the job role.
 By introducing HR technologies, it will help improving the employees’ attitude toward
the company
REFRENCES:
 How automation impacts human resource management- Suresh Sambandam – May 21
2019- https://www.business2community.com/human-resources/how-automation-
impacts-human-resource-management-02202741
 Learn why HR process automation is a strategy-Wallace Oliveira- May 31, 2018-
https://www.heflo.com/blog/technology/hr-process-automation/
 7 HR task that can be (should be )automated - https://blog.vsoftconsulting.com/blog/7-
hr-tasks-that-can-and-should-be-automated
 25+ HR automation stats you should know – Anika Deshpande -
https://blog.frevvo.com/25-hr-automation-stats/
 HR automation – the future of human resource process management -
https://kissflow.com/hr-process/
 Automation of the HR functions enhance the professional efficiency of the HR
Professionals-A Review- IJMIE Volume 4, Issue 2 ISSN: 2249-0558
http://www.ijmra.us – 364- February 2014- Automation of the HR functions enhance
the professional efficiency of the HR Professionals-A Review Dr M Nishad Nawaz and
Dr Anjali Mary Gomes
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 Study of benefits of HR automation in organisations- Dr. Chandrashekhar Uppin- International Formatted: Font: Bold
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ABSTRACT:
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With the increasing emphasis on evidence-based management, the human resources (HR) Formatted: Font: (Default) Times New Roman, 14 pt,
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function has enthusiastically embraced technology with a view to provide more efficient and
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effective delivery of HR services. As the main department in an organisation the mangers are Formatted: Font: (Default) Times New Roman, 12 pt
looking a way to make their work easier and more efficient. HR automation helps in enchasing
the efficiency in the HR department by freeing the employees from manual tasks in the
organisation. This will allow them to focus on complex tasks like decision making and
strategizing. By automating standard and repetitive HR activities, organizations can reduce the
cost and time they spend on manual HR planning and processing. The HR automation also
includes generating of new software and applications which will help in getting the work done
quicker. This paper is an attempt to understand how this automation has an impact in the
different HR process and to learn the impacts of HR automation in a smaller organisation. The
paper research is conducted by secondary data collection.

Keywords – HR process, HR automation, human resources, HRIS

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