CONCEPT OF INFORMATION COMMUNICATION TECHNOLOGY

Leading management thinkers suggested that, “It is not technology, but the art of human and
humane management” that is continuing challenge for executives in the 21st century (Drucker,
Dyson, Handy, Saffo, & Senge, 1997). Similarly, Smith & Kelly (1997) believed that future
economic and strategic advantage will rest with the organizations that can most effectively
attract, develop, and retain diverse group of the best and the brightest human talent in the market
place. Many HR (human resource) executives and managers are so busy taking care of their daily
duties, which are generally administrative, that they neglect to consider important issues that are
coming down the road. This is a trap that any department can fall into, but it can be especially
devastating for Human Resource, which must battle decades of preconceived notions about the
department‟s ability to contribute to corporate planning. Thus, today with an increase in the
number of organizations, Human Resource is now viewed as a source of competitive advantage
(Michael et al., 2012). It is necessary for firms to have highly skilled human capital to provide
them with a competitive edge. So, an effective management of Human Resource in a firm is to
gain advantage in the marketplace which requires timely and accurate information on current
employees and potential employees in the labor market. With the changing world and evolution
of new technology, meeting this information requirement becomes important. Human Resource
managers need to be aware that the change in technology will not only increase the quality of
employee information, but also will have a strong effect on the overall effectiveness of the
organization. Shammy Shiri (2012).

To reduce the routine transaction and traditional Human Resource activities and to deal with the
complex transformational ones, the organizations began to electronically automate many of these
processes by introducing specialized HRIS (human resource information system) or HRMS
(human resource management system). Human Resource Information System refers to the
systems and processes at the intersection between HRM (human resource management) and
information technology. It is a system used to acquire, store, manipulate, analyze, retrieve, and
distribute information regarding an organizations human resource. An integrated Human
Resource Information System is a database shared by all Human Resource functions that provide
common language and integrates all Human Resource services. Data base nuclear containing

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information about the competency is required of jobs and competencies of people by all Human
Resource functions. Shammy Shiri (2012).

One of the most salient factors impacting organizations and employees today is technological
change and advancement (e.g., computer-supported supplemental work-at-home, Duxbury,
Higgins, & Thomas, 1996; overall labor changes, Rothman, 2000; organizational structure, Scott,
1990; organization of work, Van der Spiegel, 1995). In particular, the prominence of information
technology (IT) has grown substantially in recent years. Sharyn D. et al,. (2003).

It has been scientology proven that one of the supporting pillars which can contribute to the
fulfillment of the personal policy is the usage of IT technologies in Human Resource. Seyni
Mamoudou, et al., (2014). Information and Communication Technologies (ICT) - a catchall term
for techniques associated with mobile communication, internet, new media and PCs – allow
companies to improve their internal processes, core competencies, organizational structures as
well as relevant markets on a global scale. Information Communication Technology is spreading
throughout every sector of the economy and has implications for almost every enterprise
(Helfen& Krüger, 2002).

According to Kamal et al (2013), computers have simplified the task of analyzing vast amounts
of data, and they can be invaluable aids in Human Resource management, from payroll
processing to record retention. With computer hardware, software, and databases, organizations
can keep records and information better, as well as retrieve them with greater ease. Information
Technology (IT) as a structural factor and instrument transforms architect of organizations,
business processes and communication and is increasingly integrated into Human Resource
Management. While Information Technology has impacts on Human Resource at the same time
managers, employees, customers and suppliers increase their expectancies for Human Resource
functions. The importance of knowledge and human capital make extra suppression on Human
Resource functions and new competencies for Human Resource professionals are expected. With
the arrival of information technology, human resource management practices are changed.

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According to Chamaru De Alwis. A, (2010), states that the concept of Electronic Human
Resource Management known as e-HRM meaning “the adoption of technology in delivering
Human Resource [HR] practices due to the digital revolution in the world is such a tool that
organizations can employ to manipulate the performance and behaviour of the people on whom
they rely on to achieve business Success”. Since the dawn of the information era, organizations
are increasingly incorporating Information Communication Technology [ICT] in their work
processes through different tools and techniques. With the evolution of Human Resource
Management [HRM] from largely a maintenance function to a source of sustainable competitive
advantage, it has become a challenge for Human Resource to transform from Human Resource to
electronic Human Resource.

Human resource processes should be focused on the strategic objectives. These strategies are led
to prepare an IT strategic plan that in turn translates into an appropriate human resource strategic
plan in the field of IT (Sameni & Khoshalhan, 2006).

DEFINITION OF E-HRM

According to Valverde et al,. (2006), Human Resource function is “all managerial action carried
out at any level regarding the organization of work and the entry, development and exit of people
in the organization so that their competencies are used at their best in order to achieve corporate
objectives”. It includes the actors as well as their relevant responsibilities and tasks. Human
Resource managers are facing many challenges in present business scenario like Globalization
workforce diversity, technological advances and changes in political and legal environment
change in information technology. All these challenges increase the pressure on Human
Resource managers to attract, retain and nurture talented employee.

According to Kettley P & Reilly (2003), a computerized Human Resource Information System
(CHRIS) consist of “a fully integrated, organization wide network of Human Resource related
data, information services, databases, tools and transactions”. Such a system can be described as
E-HIZ, meaning the application of conventional, web and voice technologies to improve the
Human Resource administration, transactions and process performance.

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Mary Gowan (2000) has defined Electronic Human Resource Management System (E-HRM)
System as a web-based solution that takes advantage of the latest web application technology to
deliver an outline real-time human resource management solution. It is comprehensive but easy
to use, feature-rich yet flexible enough to be tailored to your specific needs.

Similarly, Chamaru De Alwis (2010) defined Human Resource Information System (HRIS) as a
computerized system used to collect, record, and store, analyze and retrieve data pertaining to an
organization‟s human resources. He also defines Human Resource Management System (HRMS)
as a tool designed to ensure that the organization‟s human resources are recruited, selected,
developed, employed, deployed, and supported effectively.

After reviewing the many definitions of an HRIS, Kavanagh et al., (1990) defined it as a system
used to acquire, store, manipulate, analyze, retrieve, and distribute information regarding an
organization‟s human resources. An HRIS is not simply computer hardware and associated HR-
related software. Although an HRIS includes hardware and software, it also includes people,
forms, policies and procedures, and data.

According to me, information technology refers to computer mediated work where a task is
accomplished through the medium of the information system rather than through direct physical
contact with the task and HRIS is a system used to acquire, store, manipulate, analyze, retrieve
and distribute information regarding an organization‟s human resources.

THE PURPOSE OF HRIS

The purpose of the HRIS is to provide service, in the form of accurate and timely information, to
the “clients” of the system. As there are a variety of potential users of HR information, it may be
used for strategic, tactical, and operational decision making (e.g., to plan for needed employees
in a merger); to avoid litigation (e.g., to identify discrimination problems in hiring); to evaluate
programs, policies, or practices (e.g., to evaluate the effectiveness of a training program); and/or
to support daily operations (e.g., to help managers monitor time and attendance of their

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employees). All these uses mean that there is a mandatory requirement that data and reports be
accurate and timely and that the “client” can understand how to use the information. Kavanagh et
al., (1990)

THE MAIN GOALS OF E-HRM ARE AS FOLLOWS:

E-HRM is seen as offering the potential to improve services (e.g. e-recruiting, e-selection,
pension management, e-benefit, e-compensation, storage of employee data) to Human Resource
Department clients (both employees and management).

Improve efficiency and cost effectiveness within the Human Resource Department, and allow
Human Resource to become a strategic partner in achieving organizational goals. Traditionally
Human Resource goals have been broken into three categories; maintaining cost effectiveness,
the enhancement of service for internal customers and addressing the tactics of the business.

With E-HRM there is a fourth goal added to the three categories and that is the improvement of
global orientation of human resource management.

E-HRM has increased efficiency and helped businesses reduce their Human Resource staff
through reducing costs and increasing the overall speed of different processes.

E-HRM also has relational impact for a business: enabling a company‟s employees and
managers with the ability to access Human Resource information and increase the connectivity
of all parts of the company and outside organs. This connectivity allows for communication on a
geographic level to share information and create virtual teams.

And finally E-HRM creates standardization and with standardized procedures this can ensure
that an organ remains complaint with Human Resource requirements, thus also ensuring more
precise decision-making.

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Scope of E-HRM

The e-HRM is useful in reducing the cost in the organization. e-HRM is using of information
technology for both networking and supporting at least two individuals or more than two in their
shared performing of Human Resource activities and practices. E-HRM is different from HRIS
(Human resource information system) and Virtual Human Resource Management. E-HRM is
mediated by information technologies to help the organization to acquire, develop, and deploy
the intellectual capital. It is a web-based solution that uses the latest web based application
technology it is online and real-time Human Resource Management Solution is possible through
e-HRM. The e-HRM technology provides a portal which enables managers, employees and
Human Resource professionals to view extract or alter information which is necessary for
managing the Human Resource of the organization and for making decisions quickly. The World
Wide Web has helped modify many Human Resource processes including human resource
planning, recruitment, selection, performance management, work flow, and compensation. These
new systems have enabled Human Resource professionals to provide better service to all of their
stakeholders (e.g., applicants, employees, managers), and it can reduce the administrative burden
in the field. And it is very cost effective. Reddi Swaroop, (2012).

E-HRM is a good way of implementing Human Resource strategies, policies, and practices in
organizations through a continuous and directed support by full use of web-technology-based
channels and networks. The word 'implementing' in this context has a broad meaning, such as
creating something to work, putting something into practice, or achieving something. E-HRM,
therefore, is a concept a way of 'doing' Human Resource Management. The e-HRM business solution
is designed for human resources professionals and executive managers who need support to manage
the work force, monitor changes gather the information needed in decision-making and controlling
them and to co-ordinate the employees in organization. At the same time it enables all employees to
participate in the process and keep track of relevant information.

Organizations have increasingly been introducing web-based applications for Human Resource
Management purposes, and these are frequently labeled as electronic Human Resource Management
(e-HRM). Much is expected of e-HRM in terms of improving the quality of Human Resource
Management, increasing its contribution to company performance and freeing staff from

6
administrative loads. The empowerment of managers and employees to perform certain chosen
Human Resource functions relieves the Human Resource department from all these tasks, allowing
the most Human Resource staff to focus less on the operational and more on the strategic elements of
Human Resource in organization, and allowing the organizations to lower the Human Resource
department staffing levels. It is anticipated that, as E-HRM develops and becomes more important in
business culture, these changes will become more prominent, but they have yet to be manifested to a
significant degree. If some changes are done in the organization and employees are not satisfied with
it then the results of those changes are not in favor of the organization. So, the employees' perception
towards e-HRM is also important.

OBJECTIVES OF E-HRM

The objectives of E-HRM are to offer an adequate, comprehensive and on-going information
system about people and jobs at a reasonable cost. E-HRM also facilitates monitoring of human
resources demands and supply imbalance. It is also aimed at automating employee related
information. It helps to provide support for future planning and also for policy formulation.
E-HRM enables faster responses to employee related services and faster Human Resource related
decisions and it offer data security and personal privacy.

TYPES OF E-HRM

There are three types of E-HRM. These are described respectively as Operational Human
Resource Management where E-HRM is concerned with administrative function like payroll,
employee personal data etc. The Relational HRM which is concerned with supportive business
process by the means of training, recruitment, performance management, and so forth and
Transformational Human Resource Management where E-HRM is concerned with strategic
Human Resource activities such as knowledge management, strategic orientation etc.

ISSUES TO CONSIDER IN E-HR

The issue to consider in E-HR include; implementation strategies available to Human Resource
Executive moving toward e-HR, the use of Human Resource technology to support recruitment,
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selection, training, performance management, compensation and benefits administration. The
effectiveness of E-HR and its acceptance by employees, issues influencing the strategic use of e-
HR technology and avoiding common pitfalls in a technology-based Human Resource delivery
model.

THE IMPACT OF E- HRM ON ORGANIZATION PERFORMANCE

According to Ikhlas Altarawneh (2010) argues that the emergence of Strategic HRM (SHRM)
approach has created a real need for information about HR. Therefore; HR practitioners were
encouraging to innovate in their IT usage, arguing that resulting new roles for the HR/personnel
department as information center; internal consultant; changing agent; service provider; cost
manager; business partner; facilitator; and consultant (Ball,2001). And regardless of some
contradictory evidence (Hall and Torrington, 1998) suggestions of an increase in the strategic
influence of HRM and continued shift of HR practices to the line (IES/IPD, 1997) implies an
imperative roles for HRIS in sustaining the HR department and increasing its importance to the
organization (Ball,2001).

Human Resource Information System has increasingly transformed since it was first introduced
at General Electric in the 1950s. Human Resource Information System has gone from a basic
process to convert manual information-keeping systems into computerized systems. Because of
the complexity and data intensiveness of the Human Resource Management function, it is one of
the last management functions to be targeted for automation (Bussler & Davis, 2001/2002). This
fact does not mean that Human Resource Information System is not important; it just indicates
the difficulty of developing and implementing it compared with other business functions (e.g.,
billing and accounting system). Powered by information system and Internet, almost every
process in the every function of Human Resource Management has been computerized today.
Currently, Human Resource Management System encompass: payroll; time and attendance;
appraisal performance; benefits administration; Human Resource management information
system; recruiting; learning management; training system; performance record; employee self-
service; scheduling; and absence management. Shammy Shiri (2012).

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Information Technology can bring numerous improvements to organizations. Snell, et al.,
(2002), pointed out that Information Technology has the potential to lower administrative costs,
increase productivity, lower speed response times, improve decision making and enhance
customer service, simultaneously. The effective management of human resources also has an
important role to play in the performance and success of organizations. However, despite
evidence of the increasing use of Human Resource-related technology by individual firms, there
has been little theory development in this area and academia has failed to give the impact of
Information Technology on Human Resource in organizations from different sectors the
attention it deserves. Shammy Shiri (2012).

The design, selection, and use of HRIS are contestation as a range of meanings that are attached
to the technology that either undermine or highlight its perceived value and significance and
which impact on the extent to which it is to be used in a strategic or more administrative fashion.
Recent debates about technology and organization have highlighted the importance of social
context and sought to develop frameworks which acknowledge both the material and social
character of technologies including HRIS (Dery, Hall, & Wailes, 2006). Accordingly, theories
which can be considered as “social constructivist” can play an important role in the study of
technology as they explicitly recognize that technologies, such as HRIS, cannot be evaluated and
analyzed without having an explicit understanding of the context of individuals and groups
which consequently comprehend, interpret, use, and engage with the technology (Grint &
Woolgar, 1997; Orlikowski & Barley, 2001; Williams & Edge, 1996). Sophisticated Human
Resource Management System software in the form of stand-alone products and ERP (enterprise
resource planning) systems gives Human Resource departments the ability to effectively and
efficiently administer data in areas ranging from benefits to regulatory compliance. Also
important, however, is Human Resource Management System‟s potential to transform Human
Resource from a cost center into, if not an outright profit center, a far less expensive department
that can also function as a strategic advisor. The existing literature on Human Resource
Information system suggests that they have different impacts on Human Resource across
organizations, but provides little explanation for this variation. It is early suggested that Human
Resource Information System were used predominantly to automate routine tasks and “to replace
filing cabinets” (Martinsons, 1994).

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Human Resource professionals began to see the possibility of new applications for the computer.
The idea was to integrate many of the different Human Resource functions. The result was the
third generation of the computerized Human Resource Information System, a feature-rich, broad-
based, and self-contained Human Resource Information System. The third generation took
systems far beyond being mere data repositories and created tools with which Human Resource
professionals could do much more (Lloyd, Byars, Leslie, & Rue, 2004). It has the potential to
assist the Human Resource function in developing business strategy, and thus enhancing
organization performance (Barney & Wright, 1998; Broderick & Boudreau, 1992; Gueutal,
2003; Lawler, Levenson, & Boudreau, 2004; Lengnick-Hall & Moritz, 2003). Human Resource
Information System is used to acquire, store, manipulate, analyze, retrieve, and distribute
pertinent information regarding an organization‟s human resources (Kavanagh, Gueutal, &
Tannenbaum, 1990). It provides Human Resource professionals with the time needed to direct
their attention towards more business critical and strategic level tasks, such as leadership
development and talent management. Human Resource Information System provides an
opportunity for Human Resource to play a more strategic role, through their ability to generate
metrics which can be used to support strategic decision-making (Lawler & Mohrman, 2003).

The current generation of Human Resource Information System automates and devolves routine
administrative and compliance functions traditionally performed by corporate Human Resource
departments and can facilitate the outsourcing of Human Resource. More recent research shows
greater use of Human Resource Information System in support of strategic decision making by
Human Resource. With an appropriate Human Resource Information System, Human Resource
staff enables employees to do their own benefits updates and address changes, thus freeing
Human Resource staff for more strategic functions. Additionally, data necessary for employee
management, knowledge development, career growth and development, and equal treatment are
facilitated. The managers can access the information they need to legally, ethically, and
effectively support the success of their reporting employee.

Another benefit of using Information Technology in Human Resource Management as noted by

many scholars is the freeing of Human Resource staff in the organization from intermediary
roles, thus enabling them to concentrate on strategic planning in human resource organization
10
and development. Caudron (2003), has also observed that Information Technology can automate
other routine tasks such as payroll processing, benefits administration, and transactional
activities, so that Human Resource professionals are free to focus on more strategic matters such
as boosting productivity.

The literature shows a variance in the analysis of Human Resource Information System usage
with at least two extremes of use (Ball, 2001). In this regards, Kovach and Cathcart, (1999) and
Kovach et al. (2002) argue that Human Resource Information System information could be used
for administrative purposes that reduce costs and time; Human Resource Information System is
used according to them also for more analytical decision support. Furthermore, Martinsons
(1994) identified different type of Human Resource Information System usages based on its
degree of sophistication. He classified payroll and benefits administration, keeping of employee
and absence records electronically as unsophisticated Human Resource Information System
usage; he also describes this as simple-minded automation. On the other hand, Martinsons (1994)
characterized the usage of Human Resource Information System in recruitment and selection,
Training and Development (T&D), Human Resource planning and performance appraisal as
sophisticated, as the generated information is important and used to provide support for
important Human Resource Management decisions.

Information technology (IT) increasingly affects virtually every aspect of work. Information
Technology has been hailed as one of the most important technological developments in recent
history. It has been argued that advances in automation and Information Technology will result
in increased productivity and product quality as well as increased market shares. These hoped-for
outcomes have resulted in spending on Information Technology in organizations doubling as a
percent of revenues over the past decade (Benjamin & Blunt, 1992).

One of the impacts of Information Technology is that it enables the creation of an IT- based
work place, which leads to what should be a manager‟s top priority-namely, strategic
competence management. Advances in Information Technology hold the promise of meeting
many of the challenges of Humane Resource Management, such as attracting, retaining, and
motivating employees, meeting the demands for a more strategic Human Resource function, and

11
managing the “human element” of technological change in the future. Human Resource
Management could support the efforts of technological innovation‟s to achieve high performance
while such innovation; itself could serve as an approach to enable the Human Resource function
to focus more on value-added activities in order to realize the full potential of technology and
organizational strategy.

In the present context of increasing globalization, employing organizations and their

environments have become increasingly complex. Managers in these organizations face growing
difficulties in coping with workforces that may be spread across a variety of countries, cultures
and political systems. Given such trends, Information Technology has considerable potential as a
tool that managers can utilize, both generally and in human resourcing functions in particular to
increase the capabilities of the organization. Mishra & Akman (2010).

Substantial benefits of communication and information technologies can seamlessly migrate to

Human Resource applications. Those managing the human resource functions have not ignored
such advice and, as a result a widespread use of human resource information systems (HRIS) has
taking place. A Human Resource Information System is a systematic procedure for collecting,
storing, maintaining, retrieving and validating the data needed by an organization for its human
resources, personnel activities and organization unit characteristics.18 HRISs can also provide
the management with a decision-making tool rather than merely a robust data base. Turek (2000)
offers numerous examples of how Human Resource technology has reduced the response time
and enhanced the quality of Human Resource service in the workplace.

Information Technology plays a critical role in leveraging and complementing human and
business resources (Powell & Dent-Micallef, 1997). The importance of using the Human
Resource Information Technology tools, the Seyni. M & Joshi.G (2014) express as follows: in
organizations, despite increasing needs for technological advancement, human and cultural
factors play a more important role than before. However, technology is often seen by
management as essential means to compete in the global market. To that technology, including
information technology, brings the desired results, the most important issue for an organization is
how to manage the technology with respect to human organizational aspects, how to analyze and

12
understand human factors guided by the norms, shared beliefs, and assumptions of the
organization, as well as by individuals‟ unique values-all together known as“ culture. (Zakaria &
Yusof, (2001).

Practically, organizations are hesitated to apply Human Resource Information System unless
they are convinced of the benefits that this would bring to their organizations (Ngai & Wat,
2006). The most common benefits of Human Resource Information System include improved
accuracy, the provision of timely and quick access to information, and the saving of costs (Teze,
1973; Will & Hammond, 1981; Lederer, 1984; Ngai & Wat, 2006). In a similar vein, Beckers &
Bsat (2002) five reasons, which justify why organizations should use Human Resource
Information System. These reasons related to the facts hat Human Resource Information System
helps organizations: to increase competitiveness by developing and enhancing Human Resource
procedures and activities; to generate or create a greater and a range of many Human Resource
Management reports; to shift the role of Human Resource Management from transactions to
(SHRM); and to reengineer the whole HRM/personnel department/section of organizations.
Moreover, Human Resource Information System can be used to support strategic decision
making, to evaluate programs or polices, or to support daily operating concerns (Kundu et al.,
2007).

Information systems in Human Resource can according (Armstrong, 2002), provide better
services to line managers, serve as a pipeline connecting a personal policy and personal
processes in all organization and thus facilitate personal management in the company, provide
important data for a strategic personal decision-making and enable a quick acquiring and
analysis of information for Human Resource Assistants, and Reduce cost labors at performance
of personal activities.

Considerable benefit is an immediate possibility to create various reports and finally to see if
company fulfills the target of a key performance indicator. One of the last advantages of
Information Technology online system is that it helps to provide availability of improvement
proposals anytime and thus enables to avoid paper form. Above mentioned gives overview how
technologies can assistance Human Resource processes in order to reach the business targets.

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In nowadays, managers realize that human capital has become the last competitive benefit and
Information Technology recruiting can broadly support efficient hiring together with forming the
workforce. In order to attract the best candidates, it is vital that both Human Resource and
Information Technology departments cooperate together. The Human Resource role in
Information Technology recruiting is of key importance, including time of crisis. The Human
Resource Information Technology tools can support hiring and retaining a high potential. It
begins with launching the career website what is a very good promotional tool.

The E-HRM business models are designed for human resources professionals and executive
managers who need support to manage the work force, monitor changes and gather the
information needed in decision-making. At the same time it enables all employees to participate
in the process and keep track of relevant information. E-HRM has the potential to influence both
efficiency and effectiveness. Efficiency can be obtained by reducing the cycle times for meting
out paper work, increasing data precision, and reducing excess Human Resource. Effectiveness
can be affected by improving the competence of both managers and employees to make better,
quicker decisions. This is done through; collection and store of information regarding the work
force, which will act as the basis for strategic decision-making, providing integral support for the
management of human resources and all other basic and support processes within the company
and can be used to provide prompt insight into reporting and analysis.

The reasons behind an organization‟s decision to adopt technology within its Human Resource
function may vary. Kettley & Reilly ( 2003) give the reasons for adopting e-HR as including cost
cutting and adding operational efficiency, the desire of the Human Resource function to change
the nature of its relationship with employees and line managers, the transformation of Human
Resource into a customer-focused and responsive function and the ability to produce
comprehensive and consistent management information. The Kettley & Reilly (2003) report uses
information from empirical research to divide the potential benefits of e-HR into three areas.

Operational efficiency: Reducing overhead costs, enhancing the accuracy of data, eliminating
the costs of printing and disseminating information, minimizing Information Technology

14
infrastructure costs by moving towards a common Human Resource service platform and
enhancing the ability to distribute Human Resource information and services globally.

Relational impact: Change the nature of the relationship between Human Resource, line
managers and employees.

Transformational impact: Transform Human Resource‟s role into that of a strategic business
partner, adding greater value to the business by increasing Human Resource‟s influence as
customer focused consultants, enabling new, flexible and responsive methods for delivering
Human Resource services expanding Human Resource‟s reach as the experts of an
organization‟s people processes and developers of value propositions for different employee
groups.

In the context of higher education institutions, Rawat (2008) states that the efficiency and
effectiveness quality of an Human Resource Information System will enable universities to
format a profile of their staff their strengths and weaknesses, so they will know what they have
in the personnel sense. Accordingly, they will be able to structure appropriate development
promotion training and recruitment. Therefore, then, right people will be in the right place at
right time-quality human resource and personnel management.

Rawat (2008) also argues that nowadays higher education institutions face a significant task;
improving learning environments at the same time, reducing administrative operating cost.
Moreover, the ability to effectively budget for and managing different types of employees,
recruiting and retaining skilled members requires full integration of Human Resource data with
student information systems. Therefore, with so many demands, higher education institutions
need a powerful business solution that will help them managing student, graduates and
employment information and financial data. Therefore, application of Human Resource
Information system in higher education institutions provide the utmost updateability use of
resources, speed, compatibility, updateability, accessibility, data integrity, privacy and security
(Rawat, 2008).

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An automating technology seeks to deskill the processes that make up the work. With this type
of technology, greater control and continuity over the work process can be achieved through
substituting technology for human labor (Zuboff, 1988). An informating technology, on the other
hand, is designed to upgrade or enrich the work processes. Through removing the most boring,
repetitious, dangerous and mindless tasks from the work, human labor is left to perform the
creative, challenging, intellectual and satisfying aspects of the work (Orlikowski, 1988).

CHALLENGES OF E-HRM

The literature of HRIS implementation shows that many organizations have problems when
implementing new technologies including HRIS, due to many barriers. These barriers include:
lack of sufficient capital and skills (Ngai and Wat, 2006); Cost of setting up and maintaining
HRIS (Bekers and Bsat, 2002); lack of money; a lack top management support and commitment;
lack of Human Resource knowledge by system designers; the lack of applications for Human
Resource users (Kovach and Cathcart, 1999); lack of qualified HRIS staff; lack of a HRIS
budget; a lack of cooperation with other departments; the lack of information technology support
(Institute of Management and Administration, 2002).

Lack of time and space: They generally lack the time and space needed to work quietly and
thoughtfully with web-based Human Resource tools and so, if there is no need, they will not do
it.

Guaranteeing the security: guarantee the security and confidentiality of input data is an important
issue for employee in order that they should feel „safe‟ when using web-based Human Resource
tools.

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Specialized knowledge: one of the advantages of E-HRM is that it may help the organization to
reduce the cost of Human Resource personnel though it could increase the requirements for
technical staff with knowledge specific technology and functional area as well.

Improper use due to rigid mindset: Threat to Human Resource itself. The probability of being
dependent on technology will reduce the reliance on manpower, thus it poses a great risk on the
basic foundation of Human Resource, where the Human Resources are considered as an asset
and capital to achieve original objectives and fulfill the mission and vision of the company.

Data Entry Errors: E-HRM can only perform as good as its human programmers and end users.

Threat to Human Resource Itself: The propensity of being dependent on technology will reduce
the reliance on manpower, thus it poses a great risk on the basic foundation of Human Resource,
where the Human resources are considered as an asset and capital to achieve organizational
objectives and fulfill the mission and vision of the company.

E-HRM OUTCOMES

According to Beer et al., (1999) all E-HRM activities, will implicitly or explicitly be directed
towards distinguish four possibilities: high commitment, high competence, cost effectiveness,
and higher congruence.

These outcomes, in turn, may change the state of Human Resource Management in an
organization, or through individuals and/or groups within an organization actually result in a new
Human Resource Management state. This closes the circle. With the addition of the E-HRM
outcomes, the building blocks which are needed to finalize our E-HRM model have been
identified.

Literature suggests that the various goals of E-HRM and the different types of E-HRM are
expected to result in outcomes including more efficient Human Resource Management
processes, a higher level of service delivery and a better strategic contribution. Such expected

17
outcomes can be “encapsulated” in one concept, which could be counted as Human Resource
Management effectiveness. E-HRM, as the matter of fact, is expected to contribute to the
effectiveness of Human Resource Management, which consequently could help achieve the
organization‟s goals .Nenwani et al., (2013).

STRATEGIES TO ADDRESS THE E-HRM CHALLENCES

Redesign and streamline Human Resource processes when implementing e-HR tools.
Remember, e-HR is a powerful way to implement a Human Resource strategy but in and of
itself, e-HR is not and Human Resource strategy.

Automate basic Human Resource administrative tasks and use the Human Resource Information
System to support managerial decision making.

Communicate with employees so they understand how and why e-HR data are being collected
and used.

Use data from the Human Resource Information System to ask more complex and strategic
Human Resource questions metrics matter, and the Human Resource Information System can
offer powerful analytic tools to help managers make tough choices.

Empower employees to control their own data via the Human Resource website and delegate
basic Human Resource transactions to employees. Design the Human Resource website to have
timely information, make it easy to navigate and make it aesthetically pleasing. Make the Human
Resource web presence consistent with employees‟ expectations. If employees cannot find what
they need on the website, they will call Human Resource.

Balance technology with person-to-person contact. Do not let technology manage the
relationship with your employees. Losing a personal link with applicants and employees is a real
risk with a strong e-HR strategy.

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Use non-technological solutions when appropriate. Though e-HR should be a central component
of an organization Human Resource strategy, it should not be the exclusive solution. Technology
is not a replacement for sound Human Resource strategy and strong employees.

Remember that e-HR is not just for large organizations. Small and medium-sized businesses also
can benefit from technological support of Human Resource. As vendors continue to develop
more solutions for such companies, opportunities will only grow.

ANALYSIS OF E-HRM TOOLS AND THEIR APPLICATION

According to Reddi Swaroop. K (2012) argues that nowadays top leaders fully realize the power
of information technology (IT) tools for reaching business targets. The utilization of Information
Technology tools help not only to fulfill defined company‟s goals but to optimize the work
processes as well. Trends and results of the contemporary studies constantly confirm
contribution of the Information Technology tools in Human Resources (HR) area i.e. to
accomplish assigned Human Resource tasks by using the source of Information Technology
capabilities. They are discussed as below;

E- EMPLOYEE PROFILE:

The E-Employee Profile web application provides a central point of access to the employee
contact information and provides a comprehensive employee database solution, simplifying
Human Resource management and team building by providing an employee skills, organization
chart and even pictures. E-Employee profile maintenance lies with the individual employee, the
manager and the database manager.

E-Employee profile consist of the following: Certification, honor/award, membership, education,

past work experience, assignment skills, competency, employee assignment rules, employee

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availability, employee exception hours, employee utilization, employee tools, job information,
sensitive job Information, service details, calendar, calendar administration, employee locator.

E-RECRUITMENT:

Organizations first started using computers as a recruiting tool by advertising jobs on a bulletin
board service from which prospective applicants would contact employers. Then some
companies began to take e-applications. Today the internet has become a primary means for
employers to search for job candidates and for applicants to look for job. As many as 100,000
recruiting web sites are available to employers and job candidates and which to post jobs and
review resumes of various types. But the explosive growth of internet recruiting also means the
Human Resource professionals can be overwhelmed by the breadth and scope of internet
recruiting. E-Recruiting Methods: Job boards, Professional/Career, websites, Employer
Websites.

The web-based technology used by e-recruiting helps organizations attract a stronger and more
diverse applicant pool. The choice to move to an e-recruiting model is driven by several business
objectives, including the need to; improve recruiting efficiency and reduce costs, increase quality
and quantity of applicants, established, communicate and expand brand identify, increase the
objectiveness of, and standardize, recruiting practices and increase applicant convenience.

Web-based recruiting who is considered an applicant: The individual expresses interest in an

advertised position through the internet or related technology, the contractor considers the
individual for employment in a specific position. The individual expressing interest specific that
he or she meets the basic qualifications for the position and the selection process before
receiving an offer does the individual remove his or her name from consideration or indicate that
the position is no longer of interest

Potential pit falls of E-recruiting include; increase in application quantity but not application
quality and loss of personal relationships with applicants.

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BEST PRACTICES: E-RECRUITING

The recruitment website should be interactive, aesthetically pleasing and user-friendly.

Individuals are used to highly sophisticated, socially oriented customer websites and will judge a
potential employers website in light of these experiences.

The recruitment website should allow applicants to customize how they view information. This
can lead to reductions in poor-fit applicants to assess their fit with the organ.

The recruitment website should include a rich mix of information about the company culture,
Human Resource brand and work environment.
E- Recruiting should not be a firm‟s only method of recruiting because this may lead to adverse
impact and a decline in diversity-Diversity issues and risk of adverse impact.

E-SELECTION:

Most employers seem to be embracing Internet recruitment with enthusiasm, the penetration of
on-line assessment tools such as personality assessments or ability tests, has so far been limited.
A survey has shown that although more than half respondents organizations already use either
psychometric or other assessment during the recruitment process, only few of these companies
use on-line assessments prior to interview. Fewer still include a core fit questionnaire in the
recruitment pages of their websites.

E-Selection uses technology to help organs more efficiently manage the process of identifying
the best job candidates – those who have the right knowledge, skills and abilities for each job and
who may best fit the organ.

Faced with pressures to continually improve on the accuracy of selection methods and to meet
legal requirements, organs view technology as a way to manage the selection process more
actively and to provide more evidence of the effectiveness of the chosen selection method. The
business drivers behind the adoption of e-selection technology include: reducing the time and

21
resources required to manage the selection process, increasing flexibility in selection test
administration, improving the utility of selection tests and enhancing an organs ability to provide
adaptive testing of applicants.

Potential pitfalls of E-Selection include; security of contact, cheating, privacy and security of
responses and legality of screening and selection tests.

BEST PRACTICES: E-SELECTION

Before implementing E-Selection, ensure any performance differences on the online test are not
related to the delivery method or lack of comfort or experience with technology, but are
reflective of underlying knowledge, skills or abilities.

Ensure any online selection test is not only reliable and valid in general, but also for your
specific organ. While web-based testing can save time and money, these tools must meet the
same standards as paper and pencil tests.

The use proctored web-based selection to deliver the initial selection tests only when security
and cheating are not an issue.

Link the data from selection to other functions, such as the performance management system, to
better assess and improve your selection techniques.

E-LEARNING:

E-Learning refers to any programmed of learning, training or education where electronic devices,
applications and processes are used for knowledge creation, management and transfer. E-

22
Learning is a term covering a wide-set of applications and processes, such as web-based
learning, computer-based learning, virtual class room, and digital collaboration. It includes the
delivery of content via Internet, intranet/extranet (LAN/WAN), audio-and videotape, satellite
broadcast, interactive TV, CD – Rom, and more. Training program provides. Nenwani et al.,
(2013).

When training materials, course interactions and course delivery are enabled by and mediated
through technology, your firm is engaging in e-learning or e-teaching

The characteristics of E-Learning include; rich learning interface, personalized training

programmes, training from work place/have virtual and classroom.

The business drivers behind e-learning include: reducing training costs, increasing employee
flexibility and control over learning and better tracking and management of employee training.

CURRENT AND FUTURE OPTIONS IN E-LEARNING:

Learning management System (LMS).
Can be used to manage the administration, tracking and reporting of training in the organization.
By allowing the organization and employees to develop talent and skill profiles, sign up for
courses, and register course attendances on LMS can cut costs, streamline training and empower
employees to manage effectively.

A second option is the potential use of a learning content system (LCS), which manages the
delivery and content of courses for employees. Together, these systems help the organization to
control content, original learning processes, and delivery on line materials.

BEST PRACTICES: E-LEARNING

Design courses to promote contact and interaction with other employees. This can promote the
development of learning communities and knowledge networks, improving overall original

23
learning and consider blended learning that can help employees overcome. Some inherent
feelings of isolation.

E-TRAINING:

Most companies start to think of online learning primarily as a more efficient way to distribute
training inside the organization, making it available any time anywhere reducing direct costs
(instructors, printed materials, training facilities), and indirect costs (travel time, lodging and
travel expenses, workforce downtimes). Attracted by these significant and measurable
advantages, companies start to look for ways to make the most of their existing core training
available online, and to manage and measure the utilization of the new capabilities.

The characteristic of E-Training include: rich learning interface, personalized training programs,
training from work place/home, virtual and class room.

E-PERFORMANCE MANAGEMENT SYSTEM:

A web-based appraisal system can be defined as the system which uses the web (intranet and
internet) to effectively evaluate the skills, knowledge and the performance of the employees. E-
performance management uses technology to automate the collection of performance data,
monitor employee work and support the development and delivery of performance appraisal.
Organizations have many motivations for implementing e-performance management including;
improving access to performance data, providing data that can make performance appraisals
more objectives and valuable, reducing biases in appraisal and linking performance information
to other Human Resource data.

Potential pitfalls in E-performance management include; objectiveness can outweigh importance,

production increases, but quality decreases, job complexity Vs. performance expectations and
myopic focus.

BEST PRACTICES: E-PERFORMANCE MANAGEMENT

24
Design the system so that data can be captured and reviewed at multiple levels of detail, and so
that employees can see relationships among measured behaviors, performance expectations and
rewards.

Work with employees to determine the types of data the system will capture, capture data that
help them be more effective in their jobs and update the data collected to support continued
performance improvement.

Remember that human beings are good at determining what is rewarded and what is not. When
rewards are based on computer-captured metrics, behaviours that are not easily captured by the
e-performance management system are apt to decrease.

If data not captured by the e-performance management is important for performance appraisals,
be careful that data collected by the system does not inadvertently become the sole source of the
performance appraisal.

The focus of a performance maintaining system should be on providing feedback to employees

to enhance performance, not simply gathering information on them

E-COMPENSATION:

All companies whether small or large must engage in compensation planning. Compensation
planning is the process of ensuring that managers allocate salary increases equitably across the
organization while staying within budget guidelines. As organizations have started expanding
their boundaries, usage of intranet and internet has become vital. The usage of intranet and
internet for compensation planning is called E-Compensation Management.
E-compensation uses web enabled technology to help managers, design, implement and
administer compensation process.

25
Human Resource Information System allows organizations to streamline and automate the
compensation planning process, to model proposed changes in compensation plans to track
employee compensation history, to allocate incentive pay and bonuses, and to provide higher
quality information to decision makers.

Multiple business drivers support the growth of e-compensation technology, pressure to contain
labour costs, increasing employee knowledge of external market salary data, more rapid
identification of inadequate pay structures, internal equity, external equity and individual equity.

Streamlining, performance and sharing information in E-compensation include; E-compensation

streamlines the salary planning process, reducing both time and costs, organizations should use
the Human Resource Information System to share compensation information with their
employees and the e-performance management system should be integrated with e-compensation
system.

Potential pitfalls in e-compensation include; E-compensation is only as good as the data stored in
the system, substituting technology for judgments and letting the system or vendor determines
your compensation.

E-BENEFITS:

An e-benefits approach uses the web to communicate information on benefits to employees and
allows them to elect and manage their benefits to employees and allows them to elect and
manage their benefits online. Motivation for using e-benefits include; reducing the costs for
delivering benefits, improving employee access to benefits information, streamlining benefits
administration and empowering employees to manage their own benefits.

BEST PRACTICES FOR E-COMPENSATION AND BENEFITS

To integrate the e-compensation system with your e-performance management system, ensure
the data in your e-compensation system are current. Without current internal and external salary

26
data, it is unlikely the system will support the design of fair and effective compensation plans,
Ensure vendors provide accurate and timely information to employees regarding benefits such as
health care coverage and retirement planning and organize the benefits portion of the website
around key life events to simplify employee navigation.

Potential pitfalls in e-benefits include; websites cannot replace skilled staff members and an
organization cannot depend exclusively on the website to communicate complex benefits
information.

CONCLUSION

E-HRM is a web-based tool to automate and support Human Resource process. The
implementation of E-HRM is an opportunity to delegate the data entry to the employee. E-HRM
facilitates the usage of Human Resource market place and offers more self-service to the
employee. E-HRM is advance business solution which provides a complete on-line support in
management of all processes activities, data and information required to manage human resource
in a modern company. It is an efficient, reliable, easy to use tool, accessible to a broad group of
different users. With the various advantages and little disadvantages it can be recommended that
all the organs use E-HRM technology, that promises to provide a useful, efficient and increase
performance through this E-Human Resource Management technology in spite of all barriers it
has to face. E-HRM is a way to implementing Human Resource strategies, policies, and practices
in organs through a conscious and directed support of and /or with the full use of web-technology
based channels. It covers all aspects of Human Resource Management like personnel,
administration, education and training, career development, corporate organization, job
description, hiring process, employee‟s personal pages and annual interviews with employees.
Therefore, E-HRM is a way of doing Human Resource Management.

27
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