Application of IT in HR (e HRM)

Group members1. Reshma Zahra (10 MBA 45) 2. Adeel Rahman (10 MBA 46) 3. Farhan Akhtar (10 MBA 47) 4. Taufeeque Ahmad (10 MBA 48) SUPERVISED BY:-


INTRODUCTION : The rapid developments in the information technology have not left any sphere of the human work life untouched. The organisations are growing in size, functions, are working across nations and thus are becoming more and more complex to handle. More and more organisations are integrating information technology (IT) in their human resource (HR) activities to improve their effectiveness.. 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 newterm for this IT supported HRM, especially through the use of web technology. The knowledge-intensifying process of the economy and the correlated rise of organizational networks, with their greater dependency on qualified and committed employees, identify the need for a form of Human Resource Management that meets the demands and needs of the management and the employees. So in IT based today economy the need for e-HRM has become imperative to meet the HR .challenges of 21st century

DEFINITION : The processing and transmission of digitalized HR information is called electronic humanresource management (e-HRM). e-HRM is a way of implementing HR strategies, policies, and practices in organizations through a conscious and directed support of and/or with the full use of webtechnology-based channels. The word ‘implementing’ in this context has a broad meaning, such asmaking something work, putting something into practice, or having something realized. E-HRM',therefore, is a concept - a way of ‘doing’ HRM. therefore, is a concept - a way of ‘doing’ HRM.. Information technology is changing the way HR departments handle record keeping and information sharing. Employees can gain information through self-service.


NOW : -

Leveraging of technology to deliver HR solutions that brings about convergence in human capital, .processes, data and tools as a catalyst towards achieving business strategies Cutting-edge IT solutions play a significant role in HR management.The HR department of any organization cannot function without IT solutions to make its task easier and more efficient. Use of technology in HR management now goes beyond the context of just managing the payroll system and other databases. Organizations today see it as an effective tool for talent management and a means .for increasing employee productivity and skills "IT platforms free the HR professionals from being mere bookkeepers of labour statistics. They provide them with an opportunity to play a key role in organizational renewal and revitalization" Applications and solutions provided by IT vendors for HR departments are making the lives of HR managers and executives much easier. This is the primary reason why organizations are continuously strengthening their HR departments with updated IT solutions. Describing the importance of eapplications in today’s HR practices, H Venkatesan, Senior Vice-president, Global Human Resource, ISGN, states, “IT platforms free the HR professionals from being mere book-keepers of - H Venkatesan labour statistics. They provide them with an Senior Vice-President, opportunity to play a key role in organizational Global HR ISGN renewal and revitalization.”

Giving his views on the growing integration of IT in HR, Andrew Whelan, Director Quality & IT-Business Lines sector, Xchanging states, “Employee data must be stored somewhere,

and even if personnel files are held in paper form, certain data is always held electronically. Small organizations may hold employee data in spreadsheet form while larger organizations may implement enterprise-wide systems that do far more than just hold employee data. They can be put to multi-purpose use like providing employees with Web-based self-service access to HR, managing recruitment of new staff, using to underpin performance management and much more.''

TYPES : ;There are 3 tier of e-HRM • OPERATIONAL The first area, operational HRM, concerns the basic HR activities in the administrative area. One could think of salary administration (payroll) and personnel data administration • RELATIONAL The second area, relational e-HRM, concerns more advanced HRM activities. The emphasis here is not on administering, but on HR tools that support basic business processes such as recruiting and the selection of new personnel, training, performance management and rewards • TRANSFORMATIONAL Transformational e-HRM, the third area, concerns HRM activities with a strategic character. Here we are talking about activities regarding organizational change processes, strategic re.orientation,strategic competence management, and strategic knowledge management

-:Use of IT in Performance Appraisal
Technology helps to measure and manage employee performance. It helps to automate the process of HR and save time and cost and reduce effort required and paperwork. According to a survey more than 30% of respondent organisations are already using ore are planning to buy software for performance management in the organization. To help and automate the processes of Performance appraisal management, organisations are increasingly taking the -:help of various performance management softwares like
• •

workforce performance management (WPM) suite systems and talent management softwares

which help to systematically record all the data about the employee performance, predetermined targets and the results achieved, compensation, succession planning and other .related HR systems. The various forms can be filled online and can be submitted to the HR The information is systematically stored in metrics where the current employee performance can be compared with the targets and the standards. These systems also help to analyze the training needs of the employees, systematically monitor their progress and their review and feedback and the improvement in the performances. Such software systems are provided by IT companies which they help to implement and integrate in the processes of the organisations. The organisations today have the choice of buying a ready to use licensed software package or can get a customized software system prepared according to its own .needs and requirements

E Learning:Implementing e-learning promises substantial benefits for organizations: it will potentially eliminate corporate training travel budgets, save 50% in training time (one to three weeks versus six months), and cut an estimated 40% to 60% from conventional classroom training costs. Furthermore, the printing of large training manuals is virtually eliminated, and because e-learning is infinitely flexible, courses can be completed during scheduled downtimes (which is, of course, important for a variety of industries.) Besides cost benefits, e-learning promises to increase employee retention by ensuring that employees always have the right knowledge and tools to work effectively. The nature of the media allows for rapid course development and deployment, meaning that the key messages are always up-to-date. Learning can occur across borders and time zones with a continuity of message not ordinarily found in classic instructor-led training. On top of this, studies suggest that comprehension levels and retention rates derived from e-learning may be up to 250% better than traditional methods E Recruitement:Also known as “Online recruitment”, it is the use of technology or the web based tools to assist the recruitement process.The tool can be either a job website like, the organisation’s corporate web site or its own intranet. Many big and small organizations are using Internet as a source of recruitment. They advertise job vacancies through worldwide web. The job seekers send their applications or curriculum vitae (CV) through an e-mail using the Internet. Alternatively job seekers place their CV’s in worldwide web, which can be .drawn by prospective employees depending upon their requirements The internet penetration in India is increasing and has tremendous potential. According to a study by NASSCOM – “Jobs is among the top reasons why new users will come on to the internet, besides e-mail.” There are more than 18 million resume’s floating online across the .world – The two kinds of e-recruitment that an organisation can use is Job portals – i.e. posting the position with the job description and the job specification on .1 the job portal and also searching for the suitable resumes posted on the site corresponding to .the opening in the organisation Creating a complete online recruitment/application section in the companies own .2 website. - Companies have added an application system to its website, where the ‘passive’ job seekers can submit their resumes into the database of the organisation for .consideration in future, as and when the roles become available

- :Resume Scanners
Resume scanner is one major benefit provided by the job portals to the organisations. It enables the employees to screen and filter the resumes through pre-defined criteria’s and .requirements (skills, qualifications, experience, payroll etc.) of the job Job sites provide a 24*7 access to the database of the resumes to the employees

facilitating the just-in-time hiring by the organisations. Also, the jobs can be posted on the site almost immediately and is also cheaper than advertising in the employment newspapers. Sometimes companies can get valuable references through the “passers-by” applicants. Online recruitment helps the organisations to automate the recruitment .process, save their time and costs on recruitments -:Online recruitment technique Giving a detailed job description and job specifications in the job postings to attract candidates with the right skill sets and qualifications at the first stage. E-recruitment should be incorporated into the overall recruitement strategy of the organisation.A well defined and structured applicant tracking system should be integrated and the system should have a backend support. Along with the back-office support a comprehensive website to receive and process job applications (through direct or online advertising) should be developed.

Use of IT for New Ways of Work :With Internet and (more broadly) Information-and-Communications-Technology (ICT) development in the full swing for the last two decades, organisations have been provided with 'a whole range of new possibilities for performing work and structuring organisations' , which will undoubtedly extend even more in the future and therewith grasp even wider sphere of employees. Two of new ways of work are discussed below. 1. Teleworking Telework is a wide concept, whose 'common element' is 'the use of computers and telecommunications to change the accepted geography of work'. It means that we are 'moving the work to workers instead of moving the workers to work', with help of information technologies. 2. Project-oriented work with subcontracting According to economics theory, two of the main reasons for pooling of human resources into companies are the cost reduction that is achieved with partitioning of work and the need for management of work, which is divided between numerous employees. Though, today's ICT enables efficient collection of people with similar interest and complementary skills, and their cooperation in short- or long-term projects. All that without necessarily being a formal part of the company.

Use of IT for Employee-Development:Internet-based technology offers numerous possibilities for getting hold of new knowledge and skills. information technology has an impact over Organizational Learning as IT facilitates OL at both the individual level and the organizational level in creating knowledge which ultimately enables organizations to improve capabilities and enhance performances to cope with change. Companies are using various IT application or tools to promote OL either through knowledge depository database, online training, staff rotation planning or various IT based communication channels. The use of knowledge management strategy and the role of

IT on OL coincide with the strategic objective set by the company. Companies also use different combinations between tacit and explicit knowledge in respond to the strategic goal.

An Analysis of E-Human Resource Management Practices:A Case Study of State Bank of PakistanKeeping in view the increasing importance of e-HRM, companies are adopting it all over the world,is case in Pakistan. The SBP is established in 1948. Initially all work was done manually but in 1985 bank management to procure computers to convert its work on IT solutions. At present the bank has latest IT system and a full fledge IT directorate. The Human Resource Division at the State Bank manages issues related to the HR i.e personnel planning, transfer, compensation administration,recruitment and up to date incorporation of employee record in Oracle database. Followingunits/areas of work mainly are included in this division: (i) Compensation & Benefit Planning Unit is responsible to carry out all activities related to developing best market strategies regarding compensation and benefits for our employees. (ii) Employees Database Unit is responsible for maintaining & updating employee data and HR Broadcast of various messages/ circulars/ orders etc. for prompt communication to Bank’s employees. (iii) Service Record & Compliance Unit maintains and updates employees’ personal files, verify employees’ particulars, and ensure timely confirmation of eligible employees in the Bank’s service. (iv) HR Automation Unit focuses on Oracle Human Resource Information System and to solve the issues in smooth implementation and management of HRIS. HR Automation unit works for customization of Oracle HRMS with emerging needs of HR processes.


A case study method is chosen for this research. A case study has five main components: Research questions, theoretical propositions, units of analysis, the logic linking data to these theoretical propositions, and the criteria for evaluating these propositions. By including these five components, case study is seen as “proper”. This research is done at the HR department of State Bank of Pakistan in its head office at Karachi. It has a total of 47 employees. Out of these, three were chosen that included the senior personal from the department. A detailed questionnaire was prepared and distributed among the respondents. The demographic detail of respondents is given in in Table 1. The researchers have tried to find out the reasons for adoption of e-HR practices and Identifying critical success factors in e-HR adoption.

Results and Discussions

The unit analysis for this study was the organization. Therefore, researchers looked at the data which was gathered individually from randomly selected employees through the survey being conducted. An open-ended questionnaire was developed to gather

information about E-HR practices in the organization. The questionnaire consisted of 14 questions. The response of each department is recorded separately and then all three responses are compiled together and made one. The question wise details are given in Table 2.

We can say that the State Bank is emphasizing on the employees and developing their potential to the fullest. It wants to be recognized as the No.1 choice for people looking for employment. The main area where HR problems seem to be coming is the administrative side. The company needs team work on its ranks with decision making done all across the board; while at the same time more IT systems should placed for integrating the data. The Bank needs to move its HR dept. to Transformational eHRM with more emphasis on strategy making and freeing time from administrative chores. The company has an elaborate e-Recruitment infrastructure considering the size of the company. Thousands of CV’s are received each time it wants to hire employees. The systems have become part and parcel of the Bank and it would be impossible to go about business without them. This is no surprise as companies who are in a global are actually getting better through streamlining their processes so as to make them in line with the strategy, goals of the organization. The researchers found that the employees of the Bank had to be taught how to transform data (raw) into a meaningful lot. To analyze complex data structures and then make decision on a routine to make it aligned with the company polices. The speed at which the employees could now process data i.e. compensation, recruitment etc has come down. The Bank takes administrative tasks dearly especially when it comes to data verifications. It is increasingly using relational e-HRM for recruitment and talent management. Example of TRINTECH:-

Trintech, a provider of transaction management and payment infrastructure solutions to financial institutions, payment processors, enterprise retailers and network operators.The company found itself unable to optimize its human assets as its rapid growth and business acquisitions had resulted in a number of disparate human resources packages being used across global sites. From the central HR system at its headquarters in Dublin, Ireland, Trintech had no direct access to personnel information from its regional offices. Data had to be transferred manually between the different systems, a costly and time consuming operation. A few years ago, the company decided to replace its legacy HR systems with the Oracle Human Resources Management System (HRMS), a single, Web-enabled solution accessible by all its global human resources departments. Oracle HRMS has provided Trintech with vastly enhanced reporting capabilities and business intelligence, while improving the accuracy of information and reducing duplication. The system has eliminated the silos of information that existed across the group, thus enabling seamless collaboration across business units. The company's managers can view relevant data about teams from any location and therefore make faster, more informed decisions. As a result, HR staff have time for valuable strategic activities such as ensuring the company has the necessary skills to meet its future needs.

Conclusion:Information Technology has played an important role in HRM practices. E-HRM is the application of IT for HR practices which enables easy interactions within employee and employers. It stores information regarding payroll, employee personal data, performance management, training, recruitment and strategic orientation. It decreases the paperwork substantially and allows easy access to voluminous data. The employee can also keep track of his/her achievements without having to go through litigious procedures. It uses intranet or other web technology channels. It can also be used for implementation of different HR strategies. The authorization of different HR functions can be distributed through E-HRM. The dependence of organizations on IT based systems is increasing so is case with e-HRM function. The HRM department is having a strategic position in any organization and through eHRM, the companies are getting many strategic benefits. The significance of IT has grown considerably in the last years in all the fields and IT has been identified as an impetus of HR’s transition to becoming a strategic business partner.

References:1. 2. 3. 4. e-HRM by N. Venkateswaran Asst. Professor Department of Management Studies Panimalar Engineering College Chennai 5. 6. 7. 8. 9. 10. 11. 12. European Journal of Social Sciences – Volume 15, Number 1 (2010) 13. 14.

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