E-HRM

Technological optimistic voices assume that, from a technical perspective, the IT possibilities for HRM are endless: in principal all HR processes can be supported by IT. E-HRM is the relatively new term for this IT supported HRM, especially through the use of web technology. This paper aims at demystifying e-HRM by answering the following questions: what actually is e-HRM? What are the goals of starting with e-HRM? What types can be distinguished? What are the outcomes of e- HRM? Based upon the literature, an e-HRM research model is developed and, guided by this model, various organizations have been studied that have already been on the 'e-HR road' for a number of years. The major goals of e-HRM are mainly to improve HR's administrative efficiency/to achieve cost reduction. Next to these goals, international companies seem to se the introduction of e-HRM to Standardize/harmonize HR policies and processes. Finally, e- HRM hardly helped to improve employee competences, but resulted in cost reduction and a reduction of the administrative burden. Wright and Dyer (2000) present a similar line of reasoning: e-business is emerging, and therefore HR and HR professionals are faced with the challenge of performing in ways that are in line with the business. In their view 'HR functions [can] become critical partners in driving success, but to do so requires that HR changes its focus, its role, and its delivery systems' (Wright and Dyer, p. 52). According to them, in e-business, the application of intranet technology for HR is inevitable. Before starting to define e-HRM, it is important to identify

The e-HRM business solution excels in: Features .terms that possibly carry similar meanings to the term eHRM. With e-HR. therefore. There is a fundamental difference between HRIS and eHR in that basically HRIS are directed towards the HR department itself. In our view it concerns the following: e-HRM is a way of implementing HR strategies. policies. monitor changes and gather the information needed in decision-making. putting something into practice. such as making something work. The word 'implementing' in this context has a broad meaning. At the same time it enables all employees to participate in the process and keep track of relevant information. the target group is not the HR staff but people outside this department: the employees and management. These types of systems aim to improve the processes within the HR departments itself. is a concept . The e-HRM business solution is designed for human resources professionals and executive managers who need support to manage the work force. EHRM. albeit in order to improve the service towards the business. or having something realized. HRM services are being offered through an intranet for use by employees.a way of 'doing' HRM. Users of these systems are mainly HR staff. and practices in organizations through a conscious and directed support of and/or with the full use of web-technology-based channels. The difference between HRIS and e-HR can be identified as the switch from the automation of HR services towards technological support of information on HR services.

document systems…) multi-language support Advantages of the e-HRM business solution: gradual implementation adaptability to any client collection of information as the basis for strategic decisionmaking integral support for the management of human resources and all other basic and support processes within the company prompt insight into reporting and analysis a more dynamic workflow in the business process. productivity and employee satisfaction a decisive step towards a paperless office . protected levels of access to individual modules.modularity the solution can be accessed and used in a web browser security of data. attendance registration. ERP. records documents and their component parts parametric and customizability access to archived records and documents user-friendly interface connectivity with the client's existing information system (payroll accounting.

Business processes in the company After the existing processes have been analysed.SI provides well planned and quality training of future users. Analysis (Infrastructure) We analyse the existing infrastructure with regard to quantity of data and classification of business activities. Company-specific functionalities are discussed with the client and built upon request. SRCI. individual modules are deployed in the client's environment. The entire team of project managers.lower business costs Implementation There are five main phases in the implementation of the eHRM business solution. Implementation After a fundamental analysis of the processes in the work team. Implementation and training A complete knowledge of the components of the solution is a key factor for successful implementation. . information technology professionals and human resources specialist are thus involved in user training and implementation. With modular design a gradual implementation is possible. Finally a project plan is developed based on the model of the processes identified. including initial training in their work environment. the options for automating these processes in the client's environment are proposed.

Introduction This is based on a review and summary of five leading research (reports) produced by thought leaders about the evolving role of HR. A dramatic change in the employment law arena is forcing Human Resources (HR) to transform its own operations. A maintenance contract typically includes: technical support experts available by phone. and its strategic role in contributing to the success of business of all size. through e-mail or on-site adaptation of existing modules or development of new ones application 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 E – HR As the New Strategies For The Human Resources In The 21st Century 1. and how forward thinking. Today’s business environment along with the increasing importance of technology require smart thinking. strategically orientated HR professionals are increasingly adopting E. quick . Never before has the pressure on people management professionals been more intense.Maintenance Fast technological development and development of new modules make cooperation after the implementation indispensable.HR Strategies.

while still overseeing the time-consuming administrative aspects of day-to-day HR. It is clear that HR must find a way to relieve itself of . technology advances. technology focused dimension to their more traditional roles as HR experts. employee advocates. they are continually hindered by the need to think and act strategically. globalization. both inside and outside organizations" (Watson Wyatt Research Report . 2. HR leaders have been told repeatedly that they must earn a "seat at the table" with top management in order to play a significant role in the development of organizational strategies and business success. But. HR practitioners are adding a new. while many HR leaders have become active participants in strategy sessions occurring in boardrooms around the world. Consequently. change agents and human resources management leaders. Much has been written in the past about HR acting as a strategic partner. This new business landscape means leaving behind old ways of thinking and doing.The Net Effect). The marketplace increasingly rewards those who respond to the demand for innovation driven by the Web and Internet. tools and transactions available directly on the web in most workplaces today.HR refers to the broad access to human resources data.action and rapid adaptation to constantly changing conditions. It also includes the variety of new technologies available that help connect multiple systems. skills shortages. tools and databases. Technology as an E-HR enabler E . business partners. It describes the "net effect" of the explosion in web technologies and the dramatic impact this growth has had on the way employees now receive employment-related information through integrated selfservice applications. and shifting demographics.

technology until now offered only partial solutions to HR’s challenges. to HR. A recent research report on E-HR people management strategies is associated with a nearly 6. selfservice has proven to be extraordinarily popular. Developed in part due to employee and manager complaints about the impersonal and inefficient services offered by outsource solutions of the early 1990’s. providing the foundation to support HR’s growing strategic focus. E . In particular. and to business information with such ease and intelligence that every worker can contribute more directly to business results. Small and medium sized business realities One of the biggest sources of frustration for small and medium sized business has been the inability to easily and cheaply use electronic technologies to better manage their business resources. Web and Internet technologies have already given workers direct access to each other. Technological change is a key driver for HR transformation.HR helps maximize a company’s progress toward a knowledge economy and increased shareholder value. 3. Enterprise Resource Planning (ERP) solutions that rely on expensive mainframes. Consider the employee self-service model that evolved throughout the 1990’s.administrative burdens (without abdicating their administrative role) in order to maximize its contribution to business strategy. and high-level programming skills are simply unaffordable by HR functions in small and medium business. . Although great strides have been made in recent years to use technology to simplify HR.5 percent increase in a company’s market value.

the general comfort level using the web has increased so steadily that it has become the preferred media in the workplace — making the introduction of E . costs were high and progress was slow. In the meantime. The use of Internet and Web technology has also liberated management to re-assume its abdicated role of day-to-day people management without the endless wait for HR to eventually process requests for information. Hopefully this will lead to the ‘extinction’ of the old type of HR practitioner who publicly proclaim the need to outsource HR Administration because it is too complex and arduous to handle in-house. Until recently.and benefits-related transactions on their own. The sudden explosion in Internet technology.wide HR/payroll system. flexible workplace where employees have easy access to communication tools. and/or provide vital reporting information needed to make swift people management decisions.Human resource functions have struggled for well over a decade to shift their focus from administration to more strategic contributions.HR liberates human resources from its administrative shackles and provides the foundation for a collegial. The ‘smart’ thing to do would be to invest in upskilling line managers with the ability to use the new HR technologies to take on . E . however. people management professionals in large organizations have invested heavily in reducing the administrative load on HR. has dramatically accelerated the transition to a more strategically orientated HR function.HR a relatively ‘painless’ and cost efficient welcome event in almost any organization. New resources are appearing that enable today’s employees and managers in any sized company to complete HR. From interactive voice response systems and multimedia kiosks to implementing an enterprise.

employee data changes and other transactions that monopolized an HR department's time can now be quickly handled via the Internet. New. and to outsource non value-adding HR Administration. 4.their strategic HR role.HR strategic partner of line management. Watson Wyatt.HR environment. evolving standards such as extensible mark-up language (XML) are dramatically increasing the ease with which HR can integrate various systems and databases into an E . The functionality of the web is appealing for many reasons beyond cost: · A more mobile workforce needs access to HR information at various locations and times Changes in work style resulting from the proliferation of more functional . they need to move their HR communications and transactions to the Web and Internet. human resources professionals must rethink their strategy for transforming the delivery of information and services to managers and employees. a USA based eHR ™ company advocates that for companies to become E – HR focused. Getting from here to there To successfully make the transition from HR being an administrative cost HR becoming an E . The Internet provides HR with the ability to transfer information and many common administrative tasks to employees — freeing HR personnel to pursue more strategic initiatives. Employees and managers are embracing this "self-service" direction. These technologies also help present information in a user-friendly manner that is available to employees and managers at all times and from all locations. Benefits information.

HR Strategy and realize that improved communications. and data integrity and data security. HR technology focus has significant impact on company shareholder value . · Get the most effective specialized support possible (from the IT function and vendors) to deal with complicated issues such as legal. medium. there is an initial investment of money and resources required to be successful. reduced costs and fewer redundancies can start with the following action steps: · Establish solid executive support for an E – HR Strategy.wireless devices (phones. · Finally. handsets. · Understand how far the core HR systems extend today. A technology audit will help determine the effectiveness of your HR systems and databases. pagers. and remote computing strategy · Develop a formal strategy for your HR web that improves. Be sure your business case states the return on the investment. 5. Whether a company is small. or large. integrates existing content and provides a framework for seamlessly providing access to users of the systems(s). communications. laptops and palmtops) Companies that are ready to adopt an E . · Know the company’s IT direction and limitations in areas such as a corporate Internet. build early impact into the service delivery plan by scheduling clear milestones and achieving them. Early returns on your global service delivery initiative can only help build support at all levels within your multinational organization.

help reduce costs.3% Improve service to employees/managers +2. National Practice Leader. But companies with "softer" goals may find themselves with negative returns. Primary focus for HR technology in shareholder value Reduce costs +2. can actually result in a dramatically different impact on company shareholder value.it is associated with a significant decrease (-14.increase transaction accuracy." The HCI study shows that returns on that investment can be significant when technology is used primarily to: . Watson Wyatt.3% Expected change . . "The same technology initiative implemented in two similar organizations. "When it comes to implementing HR technologies. These conclusions come from Watson Wyatt's recently released 2001 Human Capital Index(R) (HCI) study.5% increase in company shareholder value. the focus of the initiative is the key driver in achieving financial results.3 percent) in shareholder value.for example enhancing communication and promoting culture change .February 19 2002 . eHR Canada." says Ed McMahon. but with a different focus. But where HR service technology is focused on less quantifiable goals . quantifiable improvements can see as much as a 6.improve employee service.Businesses focusing HR technology initiatives on achieving specific. .

" notes McMahon.of-breed" HR applications.000 Choice Employees ERP 33% Total outsourcing 71% Fewer than 1.6% -7.9% -6.000 Employees -19% 92% -12% -3% 1.7% "The important point here is not that HR technology shouldn't be used to enhance employee communication and build organizational culture. outsourcing and individual "best. depending on company size. by Company Size Primary HR More than Technology 10. Five-Year Total Return to Shareholders. The HCI study shows that those decisions may also have an impact on market value.Increase transaction accuracy/integrity Promote common corporate culture Enhance employee communication +1. "But making them the primary focus of those technology implementations negatively impacts the results." The data can also be used to measure factors such as impact of HR technology choices on total returns to shareholders over 5 years. Most HR organizations are now dependent on a combination of Enterprise Resource Planning (ERP) systems. Both are important components of organization success. and both are valuable results of successful HR technology implementations.000 Employees .00010.

larger organizations are achieving significant returns for their shareholders from properly focused HR technology initiatives. including its market value. regardless of the primary HR technology chosen for service delivery. the technology choice itself can severely restrict any positive impact on financial results. three. which measures a company's ability to create economic value beyond its physical assets. The HCI study was based on a comprehensive survey of HR practices at a total of 750 North American and European companies. According to Watson Wyatt: " The survey data is matched to objective financial measures of a company's worth. each with a track record of at least three years of total returns to shareholders (TRS)." observes McMahon.000 or more employees and/or a minimum of US$100 million in revenues or market value. and its Tobin's Q. 1.and five-year TRS.Integration of multiple HR applications 78% 5% 82% "Clearly. For small and midsize firms. however." .

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