A STUDY ON ELECTRONIC HUMAN RESOURCE MANAGEMENT (e-HRM

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[A Project Report Submitted in Partial Fulfillment of the Degree of Master of Business Administration (MBA)]

Submitted BySikha Rani Hazarika Student ID- MBA4ST0906033 MBA 4th Trimester Under the Guidance of Academic AdvisorMr. Bikash Kalita

Don Bosco Institute of Management Kharguli, Guwahati

TABLE OF CONTENTS Preface Executive Summary

PREFACE- .

EXECUTIVE SUMMARY .

On compensation and benefits issues. One of the major hurdles. The change in information technology is faster than any other processes in the organization. e-HRM will make it easy for employees to review salary and bonus information and seek information about bonus plans. With computer hardware. Computers have simplified the task of analyzing vast amounts of data and they can be invaluable aids in HR management. organizations can keep records and information better as well as retrieve them with greater ease. E-HRM is the relatively new term for this IT supported HRM. email. live. The IT possibilities for HRM are endless. especially through the use of web technology. It has reshaped the way we communicate. employees in geographically dispersed locations can work together in virtual teams using videos. software and data bases. work. It aims at transforming the HR functions into one that is paperless. Since many years now. from payroll processing to record retention. under the recruitment function. and further from conflict to cooperative working relationships.CHAPTER 1 INTRODUCTION Competitive business environments have compelled the organizations to think speedily to innovate and excel for their survival. in principal all HR processes can be supported by IT. and also the way business is conducted. For e.HRM has the potential to change the way traditional HRM functions are performed.g. job openings can be posted online. .art e-commerce. Corporations need to shift from physical technology to information technology. With the aid of IT and the state-of. and candidates can apply for jobs online. in the analysis and design of work. E-HRM is the new field of technology that is widely spreading in organizations around the world. from capital centred economy to human centred economy. etc. which the HR department needs to cross. and resource efficient. HRM has become more effective through the use of e-HRM technologies. Technology advancement is one of the powerful driving forces. e. Information Technologies (IT) seems to be affecting individuals and organizations· communication and behaviors. is the changing technological environment. more flexible.

CHAPTER -2 LITERATURE REVIEW 2. The human resources of an organization represent its largest investment. etc. they are an asset. and sometimes unpredictable. and never a liability. it shows that approximately 73 percent of national income is used to compensate its employees.µ ² (Michael Armstrong and Angela Baron) HRM encompasses those activities designed to provide. hiring. an organization often makes sizeable investment in their human resources by way of recruiting.2 HUMAN RESOURCE MANAGEMENT AND e-HRMHRM has been developed in recent years as a broad encompassing field of study that incorporates and synthesizes elements from personnel management. and the employees. But in spite of all this. ´Human Resource Management can be defined as a strategic and coherent approach to the management of an organization·s most valued assetsthe people working there who individually and collectively contribute to the achievement of its objectives for sustainable competitive advantage. developing their capacities. . In addition to wages and salaries. Therefore. which recognizes the importance of an organization·s human resource for contributing to its goals and objectives and the utilization of several functions and activities to ensure that they are used effectively and fairly for the benefit of the organization. The overall purpose of HRM is to ensure that the organization is able to achieve success through people. and training people to fulfill its need for well-trained and experienced staff. they are also conforming and rigid. employees are the last weapon of competitive advantage in the global market today.but not innovation. utilizing. execution and knowledge of employees. In simple words. According to the government report. We know that human beings are dynamic and flexible but at the same time. HRM means employing people. organizational behavior and industrial and labour relatives. Products can be quickly duplicated and services cheaply imitated. 2.1 HUMAN RESOURCE MANAGEMENT- Human resource management is an approach to managing the human resource of organizations. motivate and coordinate the human resource of an organization. maintaining and compensating their services in tune with the job and organizational requirement.

and practices in organizations through a conscious and directed support of and/or with the full use of web. and communicate with others. e-HRM is a concept of ² a way of ¶doing· HRM. They can update records when their situations change and make many decisions own their own. or having something realized. interactive electronic media. extract or alter information which is necessary for managing the HR of the organization. and telecommunication networks to carry out the functions of the human resource management department. monitor changes and gather the information needed in decision.e-recruitment.technology. E-HRM provides the information required to manage HR processes. employees can also control their own personal information. performance management and reward. With a click on the mouse. With e-HRM. These may be core employee database and payroll systems but can be extended to include systems such as. conduct analyses.based channels. at the same time it enables the employees to participate in the process and keep track of relevant information. managers can access relevant information and data. they consult HR professionals only when they deem it . It provides a portal which enables managers. enabling access to be online and at any time. make decisions.making. For example. and video describing how best to make the decision. The system is web-based. a manager who wants to make a merit pay decision may access files containing text. policies. With e-HRM. The e-HRM technology supports the HR function to comply with the HR needs of the organization through web-technology based-channels. and maintaining employees and also to manage them effectively. employees and HR professionals to view. e-learning. The e-HRM business solution is designed for HR professionals and executive managers who need support to manage the work force. and they can do this without consulting an HR professional unless they choose to do so. such as making something work. It is typically defining as the use of computer systems. 2.thus it has become a pervasive and influential approach to the management of employment in a wide range of market economies. Then the manager can access the data file containing information on his/her employees. the decision is recorded and other departments (such as finance) are notified. The word ¶implementing· in this context has a broad meaning. The goal of human resource management is to help an organization to meet strategic goals by attracting. putting something into practice.3 ELECTRONIC HUMAN RESOURCE MANAGEMENT (e-HRM) E-HRM is a way of implementing HR strategies. Therefore.

Effectiveness can be affected by improving the capabilities of both managers and employees to make better.necessary.  Collection of information as the basis for improving the strategic orientation of HRM. The key concepts of this technology are.  More transparency in the system. or in other words.  Fast response to answer queries.  Significant reduction of administrative burden. 2. Efficiency can be affected by reducing cycle times for processing paperwork. 2. what the e-HR goals of the organization are. it is aimed to improve the HR system particularly performance management and appraisal system. To provide support for future planning and also for policy formulations. employees can participate in a training program at home after working hours. timelier decisions. It is dependent on what and how the technology supports the system and also on how the technology is constructed. 2.4 OBJECTIVES- The e-HRM is designed to achieve the following objectives1. For the HR function.5 SCOPE OF E-HRM A decisive step towards a paperless office. The impact of e-HR technology on the performance management and appraisal system is expected to be dependent on the way the technology is used.self service for managers (MSS) and self service for employees (ESS). . For example. To automate employee related information. The automation of the system can result in faster response and action on meeting organizational and individual development needs. To offer data security and personal privacy. To enable faster response to employee related services and faster HR related decisions. 3. e-HR has the potential to affect both efficiency and effectiveness.  Higher speed of retrieval and processing of data. 4.  More consistent and higher accuracy of information/ report generated. 5. Moreover. increasing data accuracy and reducing HR staff. To facilitate monitoring of human resources demand and supply imbalances. this in turn is affected by what the organization is trying to achieve with the technology.

.  Multi-language support.  A more dynamic workflow in the business process. etc.friendly interface. 2. Operational e-HRM-: It is concerned with the basic HR activities in the administrative area like payroll.6 FEATURES the solution can be accessed and used in a web browser. protected levels of access to individual modules.7 TYPES OF E-HRM- E-HRM is not a specific stage in the development of HRM. but a choice for an approach to HRM. document systems. etc. The operational type of HRM provides the choice between asking employees to keep their own personal data up-to-date through an HR website or to have an administrative force in place to do this. productivity and employee satisfaction. employee personal data.  user.  access to archived records and documents. 2.).  security of data.  modularity. The 3 tiers of e-HRM are3 tiers of e-HRM Operational e-HRM Relational e-HRM Transformational e-HRM 1. attendance registration. Integral support for the management of human resources and all other basic and support processes within the company.  Connectivity with the client·s existing information system (payroll accounting. records documents and their component parts.

2. 2. 4. For relational HRM there is the choice between supporting recruitment and selection through a webbased application forms and letters. 5. It manages workforce with right portfolio of skills and knowledge. Increases error detection or reduce correction cost in case of data entry. 6. 7. In transformational HRM.2. 3. training. which react quickly to a continually changing business structure. and rewards. motivate and retain skilled workers.9 ISSUES IN IMPLEMENTING E-HRMy Employees related ² (a) Fear of the new technology developments in organization (b) Acceptance of the new technology (c) Acquired knowledge and skills (d) Training required  One of the major hurdles which the HR departments need to cross is the changing technological environment.based tools that enables the workforce to develop in line with the company·s strategic choices. Employees self service allows quick and immediate access to information. 8. it is possible to create a change ready workforce through an integrated set of web. Eliminating cost related to printing and dissemination of information to employees. strategic knowledge management. performance management and appraisal.8 BENEFITS OF E-HRM1. Manages reward programs to attract. Obtain human capital information from anywhere in the world. Relational e-HRM-: It is concerned with supportive business processes such as recruiting and selection of new personnel. etc. Transformational e-HRM-: It is concerned with strategic HR activities such as organizational change processes. 2. It is essential that the employees should be fully aware and comfortable with the fact of introduction of a . with one virtual HR department. strategic competence management. etc. The HR department reduces HR service delivery cost by automating key HR business processes. E-HR business enables to have multiple physical presences. 3.

y . Another issue is that employees are scared of new developments and they may oppose to the new technology. Privacy ² It is one of the growing concerns about information privacy in organizations nowadays. as they think their performance evaluation and assessment depend on the successful implementation of such technology. compensation. performance management. including recruitment. So the union may oppose in implementing of this new technology. and streamline HR processes. These data are used to enhance HR decisions. forming strategies. The managers must take care as to train the employees in the art of conducting business over the net. In case of e-HRM since it·s a new web-based technology. and to implementing some technology. Organization may use e-HRM to collect. maintain employee records. union·s decisions are taken into account on behalf of the employees. from taking decisions. store. Thus.new technology. y Unions ² In PSUs and government organizations. employees may not be comfortable in using this new technology. the superiors need to groom their subordinates to get comfortable with the imminent technological advances. The important issue in the new technology development would be the development of a shared culture where the employees learn to embrace the change amicably. the HR professionals need to work with the technical staff and help the employees cope up with the change. etc. unions play an active role. selection. and disseminate data about job applicants and employees. training. Therefore.

Analysis (Infrastructure) . Implementation. Business Processes in the Company 3. individual modules is deployed in the client's environment.After the existing processes have been analyzed.Implementation 1. . Finally a project plan is developed based on the model of the processes identified. the options for automating these processes in the client's environment are proposed. Maintenanace 1. a company (software developer) analyzes the existing infrastructure with regard to quantity of data and classification of business activities.10 IMPLEMENTATION OF E-HRMThere are five phases in the implementation of the e-HRM business solution- 5. Implementation and Training 2. Analysis (Infarstructure) Phases of e-HRM 4. and company specific functionalities are discussed with the client and build upon request. Business processes in the company. 2.In the first phase.2. 3. With modular design a gradual implementation is possible.After a fundamental analysis of the processes in the work team.

firstly. discovering the sources of manpower to match the . through e-mail or on site  Adaption of existing modules or development of new ones  Application of software adjustment to changes in the system environment or operating system  Functionality improvement and software upgrades in the form of new versions  Consultation about further development of the system. Time and attendance 4. 2. Recruitment mainly concentrates on two aspects.11 E-HRM FUNCTIONS- E-HRM business solution is based on the idea that information technologies. At the same time.it encompasses all the activities needed to maintain a productive workforce. can be designed for human resource professionals and managers who need support to manage the workforce. information technology professionals and human resource specialist are involved in user training and implementation. screening qualified people for a job at an organization or firm. Recruitment  Workforce Management (WFM) . HR administration 3. It is the process of creating huge pool of potential candidates. Implementation and training. Two important functions of human resource management are1. including the Web.A complete knowledge of the components of the solution is a key factor for successful implementation. Workforce Management 2. It includes1. and gather the information needed in decision making.A maintenance contract typically includes:  Technical support experts available by phone. it enables employees to participate in the process and keep track of relevant information. monitor changes. The entire team of project managers. Performance Management  Recruitment ² it refers to the process of attracting. Payroll and benefits 2. Maintenance. Career and succession planning 5. Learning management and/or training management 6. 5.4.

E-recruitment is a tool for many employers to search for job candidates and for applicants to look for job. interview question database and letter of appointment generation. etc. online applications. It can be either a job website like. payroll. and the prospective employees can draw the resume depending upon their requirements. The process is generally carried forward by the recruiters. applicant matching. he/she can be the member of the organization or can be the employment agency. posting the position with the job description and the job specification on the job portal and also searching for the suitable resumes posted on the site corresponding to the opening in the organization. or the organization·s corporate website or its own intranet. Also jobs can be posted on the sites almost . to pull the application of potential candidates to make the selection process successful.naukri. and secondly. E-recruitment simplifies this process by providing a sophisticated webbased solution that manages the process of recruitment from start to finish.) of the job. experience. The candidates can visit the sites. Starting with high caliber people is the first step. qualifications. Only then can this be followed by effective performance management and employee development. Companies can have an online recruitment/ application section in their own website. Job sites provide a 24*7 access to the database of the resumes to the employees facilitating the just-in-time hiring by the organizations. There are two kinds of e-recruitment that an organization can use. It enables the employees to screen and filter the resume through pre-defined criteria·s and requirements (skills.com. The recruitment monitor shows at a glance the status of organizational recruitment and provides reports that compare candidate suitably to the job profile. they arey Job Portals: i.job description and job specification. y Resume Scanners: it is one major benefit provided by job portals to the organizations. as and when the roles become available. Various functions of E-HRM1) E-Recruitment: Recruiting the right person for the right job is the most critical aspect of human resource management. where the job seekers can submit their resumes in to the database of the organization for consideration in future. Many big and small organizations are using internet as a source of recruitment. It is also known as ¶online recruitment·. Using a job centric design with multiple position linkage provides features as job advert generation.e. post resume.

Response is direct and immediate without any delay. Reservoir: It acts as the reservoir of information.  AdvantagesCost efficient: Advertisements in internet when compared to newspaper. address information leads to many security problems. On the other hand applicants also face global competition. filing. Because the huge database cannot be scanned in depth. administrative work are done electronically thus paper work or documentation has been lessened. At the time of interview the recruiter might realize that the candidate is not serious in leaving the current job. save their time and costs on recruitment. Standardization: The information of the candidates is collected in a standard format. Besides collecting the data it also consolidates information received from various sources. Lessen paper work: As the data collection. and employment agencies is considerably cheap. magazines. Widens the search: It provides global reach that also within a fraction of second.  Disadvantagesvast pool of applicants: This benefits the Organizations as well as it is disadvantage to them also. Phone number. to communicate is minimized by e-recruitment. Time saving device: Time to deliver. E-recruitment helps the organizations to automate the recruitment process.immediately and is also cheaper than advertising in the employment newspaper. Non-serious applicants: Lot of applicants forward their resumes just to know their market value. . As personally the candidates are not checked thus whether they are serious is not known. From the job profile to candidate profile is available along with past applicant data. The applicants do not want their employer to know that they are looking for a change. But by that time some serious candidates might have been rejected. The process supports the definition of recruitment by creating a vast pool of potential candidates. Disclosure of information: Candidates profile and company details are available to public. Either first few candidates are called for interview or the resumes are screened based on some key words.

a company with 500 employees with an average salary of $100000 is a save 0.Salary Review: This module provide the functionality to model salary increases taking into account the employee·s performance. address overpaid and underpaid employees and ensure salary budget is met. managers.  Easily track and manage the entire appraisal workflow from the HR control center. . On the other hand. Benefits for Line Managers: E-salary applies performance-based increases. HR and IT to spend more time on strategic activities. In addition. which are accessible in an instant.  Free up employees. manage salaries within industry range. Advantages Reduce the time and money spent conducting and recording employee performance appraisals. E-salary prevent organizational blockage by overpaid employees. 3) E. using own process and employee appraisal forms. It places effective performance management where it belongs in the hands of managers for employee performance and focus areas. Also ensure retention by addressing underpaid high potential employees and huge potential savings by effectively managing salaries e.2) E-Performance Management: e-Performance is a web-based tool that has been designed to make performance review easier than ever.g. the system operates on the principle of managing salaries within a particular band by limiting the recommended increases of over paid employees even if they perform well and recommending increases to underpaid employees even if they perform poorly.  Can conduct appraisals by own way. 3 and 4 as well).1% by effective management salary budget of $50 million equals R50 000 (for year 2. the budgeted salary increase and the industry benchmark salary for each job.

Ford also owns Volvo cars in Sweden. and a small stake in Mazda in Japan. and Mercury brands. 1903. Michigan. It is currently the second largest automaker in the US and the fourth largest in the world based on number of . It was founded by Henry Ford on June 16. In addition to Ford.2. Lincoln.12 COMPANIES ALREADY IMPLEMENTED e-HRM- Ford Motor Company IBM Belgacom ABN-AMRO Dow Chemicals 1) Ford Motor Company-Ford is an American Multinational corporation based in Dearborn.

in what was at that time the biggest bank takeover in history. Currently it is the eight largest car manufacturers in India. and consulting services in areas ranging from mainframe computers to nanotechnology. It is the fourth largest technology company and the second most valuable by global brand.vehicles sold annually. and five National Medals of Science. The company has scientists. Brazil. Argentina. The Banker. At the same time. 5) ABN-AMRO. By the end of 2009. it was the third largest automaker in Europe.Ltd is owned by the Ford Motor Company in India with its headquarters in located Chengalpattu in Tamilnadu. Its headquarter is in Armonk.International Business Machines is a multinational computer. derivatives. US. and sales professionals in over 200 countries. As a chip maker. consultants. with over 110. In 2007 the bank was acquired. With employee strength of 400. New York. and offers infrastructure services. It has major manufacturing operations in Canada. nine National Medals of Technology. hosting services. ABN AMRO offers unparalleled suite of client services in India. it has been among the Worldwide Top 20 Semiconductor Sales Leaders in past years. fixed income and foreign exchange products and services including sales and trading. In 1988. Mexico.ABN-AMRO Bank is a Dutch bank with its headquarters in Amsterdam. fixed income origination. . by a association made up of the Royal Bank of Scotland Group. sales and trading.000 employees. it is the second largest by market capitalization and the second most profitable information technology and service employer in the world. United Kingdom. ABN-AMRO was created as a merger between Algemene Bank Nederland (ABN) and Amsterdam and Rotterdam Bank (AMRO). By leveraging its global reach and drawing on the expertise of its team of research. Australia. equity capital market and M&A advisory professionals.000 employees worldwide. ABN AMRO was the largest bank in the Netherlands and eight largest banks in Europe by assets. technology and IT consulting corporation. and several other countries. It has eight research laboratories worldwide. Fortis bank and Banco Santander. 4) IBM. of which the first two got into serious trouble as a result of the Financial crisis of 2007² 2010.000 employees at around 90 plants and facilities worldwide. four Turing Awards. engineers. It manufactures and sells computer hardware and software. Ford Motor India Pvt. by a magazine. North Castle. Germany. Prior to acquisition by the associations in 2007. structured lending and commodity financing. In addition they offer a broad range of transaction banking products. Turkey. IBM employees have earned five Nobel Prizes. ABN AMRO has led many of the biggest and most innovative landmark transactions in India for its corporate and Institutional clients. In 1991. It has employee strength of about 213. Ford India originally an American company entered the Indian market with its Ford Escort. it was placed at number 15th in the list of world·s biggest banks and it had operations in 63 countries.

Its headquarter is in Brussels.it groups together the network and IT services.it is an American multinational corporation. headquarter in Midland. both on fixed and mobile networks. 7) Belgacom. It has employee strength of 16. . It is the largest telecommunications company in Belgium.born chemist Herbert Henry Dow. the Company has strengthened its market franchise in India by creating Centers of Excellence. Its main subsidiaries are ² Proximus (Belgacom Mobile). and as of February 2009. 4) Staff and Support. internet and television. Michigan. It was founded in 1897 by Canadian. the Belgacom Group reviewed the entire organization and created a new operating structure based on 4 pillars: y y y y The The The The Consumer Business Unit (CBU) Enterprise Business Unit (EBU) Service and Delivery Engine Unit & Wholesale (SDE&W) Staff and Support Unit 1) Consumer Business Unit.It was founded in 1930 as the national telegraph and telephone company (RTT).6) Dow Chemicals. Human Resources at Dow is focused on unleashing the power of the human element with award-winning people processes and programs designed to not only attract. Its wholesale activity offers telecommunications services to other operators and suppliers on the Belgian market. In 2007. Belgium. Dow India has employee strength of 900 employees. Telindus (Belgacom ICT). In 2007. It is a member of the American Chemistry Council. Tango. 2) Enterprise Business Unit. for residential clients. it is the second largest chemical manufacturer in the world by revenue.000 people worldwide.it markets voice products and services. it was the third largest chemical company in the world by market capitalization.this unit brings together all the horizontal functions that support the Group·s activities. but develop. Dow chemical is a provider of plastics. 3) Service Delivery and Delivery Engine Unit and Wholesale. Over the last few years. chemicals. and agricultural products with presence in more than 175 countries and employing 46.800 employees. and Scarlet. Skynet. Belgacom International Carrier Services. reward and retain diverse talents in the places where they do business. Dow·s presence in India began in 1957 with the Polychem Limited joint venture. These critical commercial and technical resources improve Dow India·s ability to serve the market while providing a strategic advantage for the Company globally.the EBU meets the ICT needs of professional clients.

 .  To know its benefits.CHAPTER 3 RESEARCH METHODOLOGY Research is defined as ´a scientific and systematic search for relevant information on a specific topicµ. 3.1        Research Questions- What is e-HRM? What are its objectives and scope? What can be the issues involve in implementing e-HRM? What are the phases in implementing e-HRM? What functions e-HRM has to perform? Who are the organizations that have implemented e-HRM? What are its outcomes? Research Objectives- 3.2  To know what does e-HRM means.

 To find the key drivers of growth of BPO Industry.  To find the competitive position of India w.r.r. .  To find the competitive position of India w.t other competitors in terms of strengths and weakness.t to other competitors in terms of strengths and weakness.  To find the critical success factors for outsourcing.2 Research Objective  To make a SWOT analysis of various skills sets available in India in various technology & operational tasks.3.  To recommend measures to improve India s competitive position in the world scenario.  Measuring the practices to avoid outsourcing failures.

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