Professional Documents
Culture Documents
HR portals are complex information technology (IT) applications that can be accessed by all
employees of a given organization. By placing more applications and information online, HR
portals reduce the reliance employees have on HR personnel. Given this relational change, from
human to computer, the HR portal implementation process must take into account the chal-
lenges of both change management and technology acceptance. By integrating change man-
agement theories with IT user acceptance models, this article adds to HR's collective knowledge
of ways to effectively implement HR portals. In addition, this article describes the cross-national
challenges that exist when a global firm attempts to implement an HR portal around the world.
Thus, this article will present a model that (1) integrates change management theories and IT
user acceptance models and (2) illustrates the ways in which change management plans may
need to be adapted to be effective in various subsidiaries. A case study of Hewlett-Packard's
(HP's) worldwide implementation of their @HP Em.ployee Portal in the Italian subsidiary of HP
illustrates the key issues of these theories. © 2005 Wiley Periodicals, Inc.
Correspondence to: Cataldo Dina Ruta, Organization and Human Resources Management Department, SDA
Bocconi School of Management, IOSI Bocconi University, Viale Isorizo, 23, 20135 Milan, Italy, (39) 02
58362632, dino.ruta@unibocconi.it
Human Resource Management, Spring 2005, Vol. 44, No. 1, Pp. 35-53
© 2005 Wiley Periodicals, Inc. Published online in Wiley InterScience (www.interscience.wiley.com).
DOI:10.1002/hrm.20039
36 HUMAN RESOURCE MANAGEMENT, Spring 2005
like. Other administrative activities, such as the introduction of the HR application, the
the updating of an employee's personal data context includes all the internal and external
(e.g., change of address), are the responsihil- factors affecting the employees and man-
ity of employees themselves. Through HR agers who will use the HR portal, the process
portals, employees also may have access to includes all the change management activi-
Although the customized and personalized news, re- ties organizations may implement to encour-
technical sources, applications, and e-commerce op- age employee usage, and the criterion is
installation tions (Cascio, 2000; Collins, 2001). HR whether employees use the new HR portal,
challenges can portals offer different services to employees how long it takes for employees to start using
he great, it is
the human than to management. Through HR portals, the HR portal, how satisfied they are wdth
challenges managers are able to generate reports (e.g., the HR portal, and so on. The model pre-
associated with headcount, salary listings, time reports), sented in this article integrates these change
change that examine employee activities (transfers, pro- management concepts into the overall theo-
cannot he motions, terminations, etc.), and manage retical framework for HR portal implementa-
overlooked
their own activities (e.g., travel arrange- tion (see the left side of Figure 1). Given that
(although often
are) during the ments, expense management). many HR portals are often implemented by
implementation larger, global organizations that spread
phiase of an HR HR Portal Implementation: Integrating across geographically distributed regions, the
portal. national contextual issues (such as culture)
Change Management Theories with IT User
Acceptance Models are considered in greater detail.
A recent review of IT user acceptance re-
Implementing an HR portal is a complex search found eight competing models and in-
process hecause it requires firms to manage tegrated them into one unified model, called
hoth significant changes for the employees as the Unified Theory of Acceptance and Use of
well as the technical challenges for the orga- Technology (Venkatesh, Morris, Davis, &
nization's project installation team. Although Davis, 2003). The eight models that have
the technical installation challenges can be been integrated into the unified theory of
great, it is the human challenges associated Venkatesh et al. are: the theory of reasoned
with change that cannot be overlooked (al- action (Fishbein & Ajzen, 1975), the tech-
though often are) during the implementation nology acceptance model (Davis, 1989), the
phase of an HR portal. Employee users must motivational model (Davis, Bagozzi, & War-
become accustomed to establishing a new shaw, 1992), the theory of planned behavior
kind of relationship with HR, as well as ac- (Ajzen, 1991; Taylor & Todd, 1995b), a
cepting interaction with a computer rather model combining the technology acceptance
than with a person, and, for some, to actually model and the theory of planned behavior
using new technology. These challenges—IT (Taylor & Todd, 1995a), the model of per-
acceptance and organizational change man- sonal computer utilization (Thompson, Hig-
agement—can be daunting, especially when gins, & Howell, 1991), the innovation diffu-
not managed effectively. sion theory (Rogers, 1995), and the social
This article discusses and integrates cognitive theory (Compeau & Higgins,
change management theories with IT user 1995). Though a discussion of each of the
acceptance models. Armenakis and Bedeian eight models comprising the unified model
(1999), in their review of organizational of Venkatesh et al., is beyond the scope of
change literature, found four issues that this article, three basic concepts common to
were common to all change efforts: (1) con- all theories are particularly relevant for HR
tent issues focusing on the substance of the portal applications: (1) individual reactions
change; (2) context issues focusing on forces to using information technology will affect
internal and external to the organization; (3) (2) their intention to use information tech-
process issues focusing on how the change nology, which will, in turn, (3) affect the ac-
was implemented; and (4) criterion issues tual use of information technology. The
focusing on outcomes commonly assessed. model presented in this article integrates
In the case of an HR portal, the content is these three concepts into the overall theoret-
The Application of Change Management Theory to HR Portal Im.plementation 37
Cotitexi Process
General General
Contextual Implementation
Factors Plan , 1
Individual
I I .2a I Fteactions to ~
Using IT
Local Local
Contextual Implementation
Factors Plan
indicates that contextual factors determine how general and locai pians need to be designed to be more effective
indicates there is a cause-effect reiation between veriables
the general context for change, considering Managerial actions can help manage
there will be a new application for users and change and develop successful IT implemen-
that it will modify the relationship hetween tation plans (Leonard-Barton & Deschamps,
employee and organization. 1988). Greater involvement causes greater
"ownership sentiment" and will result in
When introduc- Local Contextual Factors more positive attitudes toward the change
ing an IT ap- (Barki & Hartwick, 1994). When future
plication such The context for change in multinational users (i.e., employees) participate in the im-
as an HR por-
tal, it is neces- firms is somewhat more complex. In addi- plementation hy giving suggestions (which
sary to take tion to the general factors common are heeded and adopted), their commitment
into account throughout the company, there are specific to the project will increase (Strauss, 1998).
the general local or cultural factors unique to specific People must he sure their contrihutions will
context for suhsidiaries or divisions. The literature he relevant to the quality of the output (Re-
change, consid- ichers, Wanous, & Austin, 1997). The imple-
shows that national culture is a well-ac-
ering there will
be a new appli- cepted factor that influences international mentation team collects feedhack on the sys-
cation for users relations, and its impact is extremely rele- tem, adapts the system accordingly, and
and that it will vant to understanding processes and hehav- shares progress reports and results. This pos-
modify tfee iors (Adler, 1993; Ulijn, Lincke, & itive attitude, in turn, can generate a high de-
relationship Karakaya, 2001). For these reasons, the gree of system knowledge that increases per-
between em-
ployee and same innovation can have both general and ceptions and intention to use (Barki &
organization. local issues. Local differences depend on Harwick, 1994).
the physical presence of local units in dif- Though perception is fundamental for
ferent countries, which requires that com- influencing the use of an HR portal, it may
panies follow local regulations. Local con- he mediated hy employees' self-efficacy to-
texts depend hoth on local policy and ward mastering the new system (Venkatesh,
cultural features that can produce a differ- 2000). Self-efficacy heliefs can he affected
ent context. Multinational companies usu- through training or "from-the-start" involve-
ally possess a corporate culture that fits var- ment in the HR portal implementation proj-
ious contexts and leads to different ect. Companies offer training in the early
management styles (Hofstede, 1991, 2001). stages of the project to reduce uncertainty of
the new technology hy providing information
Process ahout its characteristics and to motivate
users to engage in use hehaviors (Bostrom,
General Im^plementation Plan for the HR Olfman, & Sein, 1990; Davis & Bostrom,
PoHal 1993). HR portal implementations should
identify influential individuals or technology
Once the context is defined, the implemen- champions (Orlikowski, Yates, Okamura, &
tation phase progresses through successive Fujimoto, 1995) to facilitate the flow of in-
steps: (1) unfreezing: helping users become formation in the new system and the phases
aware of the new change and bringing to the of the project.
surface the values upon which these actions The hehavior of top management is ex-
may he hased; (2) moving: introducing users tremely critical to communicating the need
to new mental frameworks and behavioral for change (Kotter, 1995). The head of the or-
patterns and helping users with these new ganization has to demonstrate strong sponsor-
patterns; and (3) refreezing: helping users in- ship of the project (Zmud, 1984), hecause
ternalize these new behaviors and habits when people see their hosses fail to remain in-
(Lewin, 1947). Based on this contribution, volved in the innovation introduced, they stop
other researchers pointed out different and making an effort in the process. In successful
more detailed phases that all refer to a com- change management projects, top manage-
mon framework hy which change is intro- ment keeps employees informed of the
duced, adopted, and finally institutionalized process of change. Change agents must work
in organizational hehaviors. to avoid the dissemination of rumors. Rumors
The Application of Change Management Theory to HR Portal Implementation
are a signal that communication is poor and national culture (Hofstede, 1991). Among
the change process is failing (Reichers et al., the many differences, "power distance" (Hof-
1997). In addition to sponsorship, top man- stede, 1991) and the "focus on relationships"
agement needs credihility to develop mutual (Schell & Solomon, 1997) can lead to vari- ...the best
trust and a friendly environment with the rest ous changes in implementation plans at the implementation
of the organization (Conger, 1998). Trusting plan may need
local level. For example, in cultures with a to be varied
the team leader is a critical prerequisite to high level of power distance (i.e., France, when
having employee cooperation in implementing India), leaders communicate what to do with considering a
strategic decisions (Korsgaard, Schweiger, & clear direction and specific instruction. In general
Sapienza, 1995). Armenakis, Harris, and Field other cultures with lower power distance implementation
(1999) identified seven influence strategies: (i.e.. United States, Sweden), leaders are to account for
(a) persuasive communication; (h) active par- local variations
more likely to share all the different aspects
in cross-
ticipation hy those affected; (c) human re- of a certain decision with collahorators, in- national HR
sources management practices; (d) symholic volving them in the decision process. In environments.
activities; (e) diffusion practices; (f) manage- these cultures, people work with great au-
ment of internal and external information; tonomy hecause that seems to represent the
and (g) formal activities that demonstrate sup- hest model for them to he directed and man-
port for change initiatives. Collectively, these aged. When the managerial style hecomes
efforts should produce an effective HR portal too vertical and authoritative, people react
implementation plan geared toward increas- negatively and do not willingly collahorate
ing employee usage. with others. This would have implications on
the extent to which employees hecome in-
Local Implementation Plan for the HR volved in the HR portal implementation.
Portal Another cultural implication for an HR
portal implementation involves relation-
HR portal acceptance can he positively influ- ships. Some cultures are more focused on
enced hy developing a comprehensive "doing husiness," while others are more
change management strategy (or implemen- focused on "building husiness through rela-
tation plan) to increase employee usage. tionships." In cultures where relationships
That said, the best implementation plan may carry greater weight, people will spend more
need to he varied when considering a general time networking and discussing work-
implementation to account for local varia- related ideas than working hard on specific
tions in cross-national HR environments. tasks. Likewise, countries differ in high ver-
This is especially relevant given that HR por- sus low context. In countries with high-con-
tals in large multinational organizations are text cultures (i.e., Italy, Japan, China), con-
implemented on a worldwide scale and textual cues are critical to the interpretation
therehy include suhsidiaries in many coun- of a message, while in low-context cultures
tries. Given the common platform of most (i.e., Germany, Switzerland, United States),
HR portals, the technical application tends words spoken have a direct meaning and do
to he standard around the world. The imple- not have difficult or suhtle interpretations
mentation plan of the HR portal, unlike the (Czinkota & Ronkainen, 1998). People char-
portal itself, can he more locally adapted to acterized hy high-context cultures try to get
ensure maximum usage within suhsidiaries. needed information hy accessing their per-
Grover, Segars, and Durand (1994) sonal information networks. People emhed-
found that firms in the United States, ded in low-context cultures are more likely
France, and Korea differ in their perception to use nonhuman sources, such as reports,
of IT'S competitive role, the level of integra- datahases, the Internet, and so on (Morden,
tion in information systems and strategic 1999). These cultural dimensions—power
planning, and other important issues for the distance, focus on relationships, and high
use and acceptance of IT. Every suhsidiary in versus low context—should he taken into ac-
a multinational company has distinctive count as part of an HR portal implementa-
traits that vary according to the suhsidiary's tion plan.
40 HUMAN RESOURCE MANAGEMENT, Spring 2005
IT User Acceptance of the HR Portal other researchers have addressed the critical
role of performance expectancy as a prerequi-
User acceptance models study factors that site to increasing intention to use. A system
predict intention to use IT and its relation- can he considered ahle to enhance individual
ship with actual system usage. Venkatesh et performance (Thompson et al., 1991) or to
User al. (2003) defined the Unified Theory of Ae- give a relative advantage to new users
acceptance ceptance and Use of Technology and identi- (Moore & Benhasat, 1991). Furthermore,
models study fied four main constructs as prerequisites of when a person accepts a new system, it may
factors that the actual system usage: effort expectancy imply she has outcome expectations of the
predict
intention to use (i.e., perceived ease of use), performance ex- work itself (Compeau & Higgins, 1995) or of
IT and its pectancy (i.e., perceived usefulness), social individual development (pay, promotions,
relationship influence (i.e., suhjective norms), and facili- etc.; see Davis et al., 1992).
with actual tating conditions (i.e., compatihility). Some Moving from a performance measure-
system usage. of the main theoretical contrihutions related ment to a more context-hased approach (so-
to these constructs are presented helow. cial influence), social pressure is a critical
To hetter predict success in the accept- factor that leads people to hehave like others
ance of HR portals, it is important to under- (Fulk, 1993), since they cannot do otherwise
stand how employees will develop and experi- without being considered "misfits" or indi-
ence IT. Perceived ease of use {effort viduals who behave inappropriately. The in-
expectancy) is the belief that a system's use is tention to use is an individual attrihute, not
simple and requires little effort (Davis, an organizational one, and it is huilt and per-
Bagozzi, & Warshaw, 1989). Employee users ceived through social interactions. In these
are more willing to tolerate difficult, if not situations, people are inclined to accept IT
complex, technological interfaces if they pro- through suhjective norms as they see other
duce great functional henefits, whereas no colleagues doing so (Ajzen, 1991; Taylor &
degree of ease justifies a rather functionally Todd, 1995h; Thompson et al., 1991). As a
useless system. Perceived usefulness {per- matter of fact, they wish to he a part of the
formance expectancy) is an employee's level of organization, so they conform to the behav-
conviction (or helief) that a particular system ior of others.
will increase their work performance (Davis Consequently, when the IT application is
et al., 1989). The relationship hetween per- introduced, the innovation must he per-
ceived ease of use and perceived usefulness ceived as consistent with existing organiza-
also may change over time (Szajina, 1996). tional values {facilitating conditions), needs,
The fact that the system has to be easy to use and experiences of potential users (Moore &
is most important during the initial phases of Benhasat, 1991). Moreover, users observe
any project. As one would expect, this effect objective factors that can enhance IT accept-
diminishes over time when familiarity with ance, such as the provision of computer sup-
procedure becomes more conventional port, resources needed to access and use IT,
(Adams, Nelson, & Todd, 1992; Chau, 1996; and technological compatihility (Ajzen,
Davis, 1989; Davis et al., 1989). Thus, per- 1991; Taylor & Todd, 1995b; Thompson et
ceived ease of use can definitely influence ac- al., 1991).
ceptance, hut once a given technology is ac-
tually accepted, its importance diminishes Outcome of IT Im^plementation: Actual Use
(Davis, 1989). Once in use, a feedback mech- of the HR Portal
anism derived by widespread "use" sets off a
virtuous cycle: increased use increases per- Literature on management of information
ception of ease, which, in turn, increases per- systems descrihes the success of an IT im-
ception of usefulness (Goodhue & Thomp- plementation mostly through IT system
son, 1995). This cycle is determined, for the usage (Davis et al., 1989; Igbaria, Zinatelli,
most part, hy a given user's learning curve. Cragg, & Cavaye, 1997; Strauh, Limayem, &
Besides the relationship hetween per- Karahanna-Evaristo, 1995; Thompson et al.,
ceived ease of use and perceived usefulness. 1991) and user satisfaction (Amoroso &
The Application of Change Management Theory to HR Portal Implementation 41
Cheney, 1991; Igharia, 1990), while other re- concepts, and local adaptation of the @HP
searchers have studied these two dimensions Portal's implementation plan in European
together (Baroudi, Olson, & Ives, 1986; Gel- subsidiaries generally and the Italian suh-
derman, 1998; Kim, Suh, & Lee, 1998; Tay- sidiary specifically. The primary
lor & Todd, 1995h). Discussing hoth meas- purpose of the
@HP Employee
ures, Al-Gahtani and King (1999) pointed The Hewlett-Packard @HP Employee Portal system
out that system usage is a more precise Portal was to simplify
measure of IT acceptance. Moreover, Igharia the relationship
et al. (1997) also defined system usage as the In January 2000, Hewlett-Packard (HP) hetween HR
primary indicator for IT acceptance and said, CEO Carly Fiorina provided a vision for the functions and
"System usage has a notable practical value those internal
@HP Employee Portal, stating, "This world- clients the
for managers interested in evaluating the im- wide entry point would he rolled out to every function
pact of information technology." For these subsidiary around the world, connecting em- serves—namely,
reasons, in this study, success of HR portal ployees who can access corporate informa- the employees
acceptance is measured by the degree of tion, personal data, services, HP resources, of Hewlett-
usage. Specifically, the dependent variahle of Packard,
and execute internal transactions." The pri-
this article is Web site usage, a concept sim- mary purpose of the @HP Employee Portal
ilar to the variahle IT usage in information system was to simplify the relationship he-
systems research. Portal usage can he meas- tween HR functions and those internal
ured independently of the user, for instance, clients the function serves—namely, the em-
hy taking the numher of hits on the entire ployees of Hewlett-Packard. Fiorina recog-
site via system logs, documents viewed, vis- nized the @HP Employee Portal would have
its, and single visitors in order to have a het- improved HP's HR effectiveness and would
ter representation of users and their use. have increased employees' satisfaction with
The model presented in Figure I offers the HR department in general.
two propositions: The @HP Employee Portal was designed
to increase the ease and speed of access to
Proposition 1: When change management internal communications and corporate in-
principles are integrated with an IT user formation in an attempt to increase manage-
acceptance model in developing an imple- ment effectiveness and production capacity
mentation plan, the individual accept- of HP employees. Information on the @HP
ance of HR portal use will increase. Employee Portal is standardized and glohal,
while addressing local concerns hy using
Proposition 2a: In cross-national im.ple- multilingual formats. By introducing the
mentation of an HR portal, general im- @HP Employee Portal, HP counts on reduc-
plementation plans should be adapted to ing HR and IT operating costs without sacri-
the local context in order to increase the ficing high-quality and up-to-date services
actual use of the HR portal in the sub- and content. Ultimately, HP's aim was to in-
sidiary. crease integration among the diverse busi-
nesses and to reap the henefits derived in
Proposition 2b: In cross-national imple- terms of cost reduction, increased efficiency,
mentation of an HR portal, unique imple- and overall HR effectiveness. The scope of
mentation plans should be developed that the project was to go from a vision of HR pre-
consider the local context in order to in- dominantly oriented toward providing per-
crease the actual use of the HR portal in sonnel with hasic services (i.e., bureaucratic
the subsidiary. and administrative) to one that sees HR pro-
vide added value and consultancy in its typi-
In the following section, Hewlett- cal functions, such as recruiting, compensa-
Packard's worldwide implementation of their tion and henefits, training, and so on. The
@HP Employee Portal will be discussed. declared ohjective was to create an HR de-
This case illustrates the user acceptance partment that would hecome a strategic part-
model, a numher of change management ner in managing company change and pro-
42 HUMAN RESOURCE MANAGEMENT, Spring 2005
fessional growth for all employees. A descrip- employees considered the effect the portal
tion of the contents of the @HP Employee would have on the HR department staff itself.
Portal is provided in Appendix 1. HR Country Leader Riccardo Benini said, "At
the outset, I wasn't completely in favor of the
Context at HP: General Contextual Factors portal. I was afraid it would reduce the HR
HP's hopes for for the @HP Emploryee Portal Im.plementation staff. It wasn't the headcount I was worried
the success and about, but rather I didn't want anyone to find
utility of the HP's hopes for the success and utility of themselves in a bad situation. In our depart-
@HP Employee ment, relationships matter a lot and therefore
Portal were
the @HP Employee Portal were demon-
demonstrated strated hy the CEO personally and enthusi- people are not just simply colleagues. With
hy the CEO astically presenting the implementation regard to our activities, I didn't know what
personally and plan. The proposed change to the delicate would have hecome of our function. I
enthusiastically employee-company rapport was entrusted thought a part of our work would have heen
presenting the to the HR Executive Director who would outsourced to the Weh and I didn't want the
implementation technology to steal a certain joh sense from
plan. manage this vital and large-scale corporate
change. In addition to the corporate bene- any of my staff hy demotivating them." After
fits derived by using the portal as a corpo- his initial resistance, Benini began an analy-
rate tool, HP top executives explicitly indi- sis of the project hecause it was difficult for
cated the HR department also would he the him to predict how HP employees in Italy
recipient of significant henefits. It was would accept the new portal and, conse-
therefore quite evident that from the outset quently, how HR's role would have changed.
the new portal would have a radical impact Although the loss of administrative HR
on what role and services HR would man- johs is real, the introduction of portals and
age within the new HP. In an effort to cre- B2E logic gives HR the technological solu-
ate a new, more unified, efficient, and ef- tions that can increase efficiency in its
fective HR organization, the following processes. Technology cannot change the way
strategies were implemented across the en- HR works, hut it can focus the function's at-
tire organization: tention on a specific issue or prohlem. As
Benini commented, "Technology can help us
• Create a new husiness model that redefine our service, but not everything de-
eliminates duplicate organizational pends on technology. Perhaps wathout the
structures in an aim to empower a portal everything we are currently doing
single glohal organization. would have been more difficult, hut what we
• Designate standard processes to a are accomplishing is much more than the im-
glohal service delivery model plementation of an e-business application."
throughout the entire company Despite Benini's comments, HP
worldwdde. planned to launch and "go live" with the
• Define an e-husiness strategy as a @HP Employee Portal around the world hy
first step in realizing a business-to- 2002, and thus developed a centralized im-
employee portal for use hy every HP plementation plan. This plan, though com-
employee worldwide. prehensive, made allowances for regional or
• Identify a foundation technology, national variation as needed. The first
which is a framework that integrates countries involved in the project were the
all the current systems connected to United States and the "Big Countries" in
the employee's "realm." Europe (France, Germany, and the United
Kingdom), where the first version of the
Context at HP: Local Contextual Factors for portal was released in April 2000. The sec-
@HP Employee Portal Implementation in Italy ond release, in Septemher 2000, saw the in-
volvement of Italy, Spain, the Netherlands,
Although the @HP Employee Portal would and Ireland, as well as updates for the Big
have an impact on employees' daily jobs by Countries. The portal was expected to go
making them easier and more productive, few live on March 5, 2001.
The Application of Change Management Theory to HR Portal Implementation 43
tion success—attributed to the skill of Ric- the entire building. The metaphor (if fol-
cardo Benini at balancing concepts of inno- lowed long enough) was that the arrows led
vation versus tradition and technology versus nowhere but took employees everywhere at
local labor legislation. Mr. Benini praised In- the same time. Like the stepping stones, the In addition to
dustrial Relations Director Rino Furlan, who @HP Employee Portal would lead employees legal and labor
relations
coordinated the project, by saying, "In multi- wherever they wanted. In retrospect, these challenges,
nationals, one knows restructuring is effec- unique stepping stones encouraged informal certain cultural
tively taking place when the smallest local communication about the portal that was im- challenges were
branch is able to unite vwth the entire global- portant in encouraging information ex- also a factor,
tree. And speaking of HR, the biggest chal- change within the Italian context. and HP Italy
decided to
lenge was not to allow any of the value and Complementing the nontechnological implement a
contribution put forth by everyone in the en- channels, the portal did make use of an number of
tire HR department to go unnoticed." The e-mail campaign, only as an informative memo additional
choice to involve Industrial Relations from to get people's attention. In Italy, the HR coun- communication
the outset in Italy may have lengthened plan- try leader sent out e-mail messages that explic- methods more
ning time but surely diminished acceptance closely linked to
itly described the new tool and asked employ- Italian culture.
time in the long run. ees to use it to improve organizational
In addition to legal and labor relations performance. In Italy, as elsewhere, a corpo-
challenges, certain cultural challenges were rate e-mail is often read as one of many general
also a factor, and HP Italy decided to imple- pieces of information that trickles down the
ment a number of additional communication ranks (i.e., new products, institutional events,
methods more closely linked to Italian cul- etc.), whereas a local or in-house e-mail is
ture. The Italian HR staff launched an im- more often than not from someone a person
portant campaign that utilized some unique knows or feels will have a direct impact on her
channels. For instance, the managing direc- actual job, and is therefore more likely to get
tor (MD) of HP Italy periodically held early- the attention it deserves.
morning talks in the company cafeteria with After the launch date, specific e-mail
the entire staff. These morning meetings usu- boxes were set up to collect feedback on the
ally discussed issues ranging from market new portal. The button "feedback/support" at
conditions to results and economic indicators the top of the portal interface was added to
for a given period. During the introduction collect comments, suggestions, and, most
phase of the employee portal, the topic was, important, proposals for the release of the
for the first time, an HR project—the @HP second version. These initiatives are closely
Employee Portal. Given the respect for local related to the strategy of "high level of em-
hierarchy and the personal credibility of this ployee involvement" adopted by HR. In de-
managing director, employees acknowledged signing the Italian site, key organizational
the importance of the employee portal. functions. Industrial Relations, and other
Given the (personal) communicative na- HR figures were involved, as well as the
ture within the Italian context, and that managing director and marketing depart-
e-mail alone is overused as a communication ments, as mentioned earlier. European-level
tool, the Italian team believed e-mail com- teams also were created to collect and share
munication alone might have failed. The im- approaches, problems, and solutions.
plementation team contacted HP's own mar- Consistent with the implementation
keting department to help create internal model, the "feedback/support" function
interest and enthusiasm. This was the first opened up the opportunity for all employees
time they were asked to market something to participate in the improvement of the por-
internally. In addition to trinkets, the mar- tal. In this way, the @HP Employee Portal is
keting department developed what they seen as something in constant evolution, be-
called "stepping stones," which were arrows coming a tool that satisfies the users' needs
placed on the floors of the building indicat- in research and transaction execution. Since
ing the @HP Employee Portal "virtual" path going live on March 5, 2001, other releases
in the departments themselves throughout have followed, some not entirely evident to
46 HUMAN RESOURGE MANAGEMENT, Spring 2005
all users, while others are already making a Outcome of IT Implementation: Actual Use
notable difference. of the @HP Employee Portal
IT User Acceptance of the @HP Employee In this case, consistent with the model,
Portal success was measured by the number of hits
Among the on the @HP Employee Portal site in relation
risks of this Among the risks of this implementation to the number of employees in the sub-
implementation project was the possibility that general and sidiaries. As a corporatewide project, the
project was the
possibility that Italian context could negatively influence @HP Employee Portal was a success in all
general and user perception. Employee perplexity could countries. Italy, however, represented one of
Italian context lead to refusing the new tool and continu- the most successful launches, with better re-
could ing to manage HR function communica- sults in terms of hits, pages viewed, users' ses-
negatively tions using traditional channels (telephone, sions, and unique visitors (see Table II). The
influence user e-mail, meetings). The acceptance level on indicator "hits" refers to the number of times
perception.
Employee behalf of all personnel was a continuous a server is accessed by Web site users. For the
perplexity cause for concern for employees. As one purpose of determining Web site usage, hits
could lead to employee said, "All HR initiatives increased could be potentially misleading, because they
refusing the HR portal perception of usefulness among do not reflect the amount of content accessed
new tool and us. I think the biggest challenge is to orient by a user. Other more appropriate indicators
continuing to
people toward the HR portal, at least for could include "pages viewed," "users' ses-
manage HR
function the first time. In this way, everyone can di- sions," and "unique visitors." Page views are
communications rectly test utility and quality." Undertaking the number of times a visitor sees a page of
using different actions, a great feeling of curios- information on the portal. Individuals may
traditional ity arose among the employees. At the same make several hits within a given page view.
channels time, there were positive and negative atti- Another useful indicator is the "users' ses-
(telephone,
tudes toward the new technology. Organi- sions," which include all the hits and pages
e-ntail,
meetings). zational "rumors" created throughout this viewed from the time a person enters the site.
process allowed the HR project team to win One user may enter the site and view ten
the employees' trust, although it was a pages, while another user views only five—
challenging phase. Carla Di Martino, IT each person would represent a single user
manager for HR in HP Italy, said, "Before session. Aggregating across user sessions to
going live, we clearly knew we, as the HR people, a useful indicator is "unique visitors."
function, had finally obtained most of the Unique visitors are the number of individual
future users' trust. They were waiting to users who use a given Web site, regardless of
have the chance to use @HP to be able to how many sessions any one person has. In
judge, criticize, and eventually praise the this case, unique visitors represent the num-
system. We knew it would not be easy. Dur- ber of employees who have used the @HP
ing those days, we lived with this feeling Employee Portal. Collectively, these four in-
and persistent challenge." dicators give a reliable picture of the use of
For all these reasons, HP designed an the @HP Employee Portal.
implementation plan to get people involved Looking at the data (see Table II), it
even after going live. They could send tips seems as though the extra effort put in by the
and suggestions to the implementation Italian team in its implementation plan truly
team by using the same @HP interface. In paid off, whereas most of the other sub-
this way, the users could have the chance sidiaries followed @HP's standard corporate
to contribute to improving the product. implementation plan. In addition to the
Under the guidance of Industrial Relations March 2001 results, Italy had data for the two
Director Rino Furlan, and after some ini- successive months confirming that the major-
tial concern, the position of most of the ity of its employees were habitual users of the
employees changed to a belief that the portal (see Table III).
@HP Employee Portal represented an op- Nearly two years after its initial launch,
portunity. Carla Di Martino, IT manager for HR in HP
The Application of change Managem.ent Theory to HR Portal Implementation • 47
@HP Employee Portal* Usage in Italy, Germany, Spain, and the Netherlands** in March 2001
* @HP Employee Portal in each country were comparable in terms of number of pages and topics covered.
**Ail units were comparable in terms of functions, roles, and age.
Italy, defines the experience a concrete suc- tions." In addition to improved services, each
cess: "At this point, everyone at HP Italy has investment of this kind ought to bring about
correctly learned how to use the instrument. increased efficiency in terms of labor and op-
In Italy, we have a daily average of some 40 erational costs. When comparing time sav-
pages visited, 14 visitors with an average user ings and related costs, the HR department in
time of 12 minutes and 41 seconds, and Italy counts on an average savings of 1 5%,
5,403 documents consulted. The accesses with some differences for services (approxi-
are naturally concentrated around those pe- mately 25%), and HR business managers re-
riods when HR processes are being done, say, port a 5% result, with peaks of as much as
for example, during performance evalua- 50% in the salary revision process. The new
@HP Employee Portal Usage in Italy In March, April, and May 2001
HR portal is designed to simplify people's often measured. The new portal helps HR
work, helping them plan their business activ- close the technology gap that exists between
ity. Fabio Gabbiani, training director at HP departments, and positions the function to
Italy, said, "This is a classic example of how become more strategic. In order to sustain
the @HP Employee Portal permits different competitive advantage, HR has been thought
"This is a HR processes to perfectly integrate with one for some time to be a critical factor (Huselid,
classic example another; performance evaluations, compe- 1995; Pfeffer, 1995) as the debate on intan-
of how the tency mapping, training, and, in part, career gible asset value, knowledge management,
@HP Employee management. Today, we entrust everyone
Portal permits and intellectual capital grows (Davenport &
different HR with their own internal career-development Prusak, 1997).
processes to planning by creating the conditions for self- It is a common belief among HP em-
perfectly growth, which represents a stimulus for ployees in Italy that the portal had four pos-
integrate with learning. Knowledge management, driven to- itive effects. First, it improved the perception
one another: ward the access to corporate expertise, and
performance of the HR function as having greater value
evaluations, HR management are converging toward a added and being less administrative. Most
competency model, which almost semi-automatically re- processes have been standardized and sim-
mapping, duces the filters between knowledge supply plified. The second positive effect was time
training, and, and knowledge demand." savings in terms of employee work activity
in part, career
management.
and transaction costs. The HR function is
Today, we Discussion and Conclusions more strategic and less transactional, more
entrust focused on problem-solving roles and com-
everyone with After the @HP Employee Portal went live, it petencies. Corporate HQ informed staff that
their own was not easy to manage the transition from the $20 million project cost was recuperated
internal career- in only six months, and that savings to date
development the old system. Even though the portal was
planning by presented as mandatory, the HR function did total over $50 million. In Italy, the HR head-
creating the not stop activities processed by the old sys- count remained unchanged, whereas in
conditions for tems (i.e., telephone, e-mail, paper) to avoid other countries it was reduced in terms of
self-growth, increasing resistance. In some cases, em- operative staff, the majority accepting trans-
which ployees still wanted to see their HR repre- fers within the company. A third effect, at
represents a
stimulus for sentative and continue to have face-to-face least in Italy, was the rise of the HR depart-
learning. contact with HR. This initially created some ment in terms of strategic relevance within
Knowledge concern among project team leaders, for in the company. Since successfully managing
management, every change process, resistance can lead to this important strategic transformation for
driven toward discontentment and can threaten the suc- the entire business, HR now supports the
the access to business as a strategic partner. The HR func-
corporate cess of the initiative. These situations were
expertise, and managed "ad hoc," and after collecting ratio- tion modified its daily operations so that it
HR manage- nales for the resistance, users realized that now works on producing global solutions and
ment are only routine jobs with little added value had, not simply attending to routine administra-
converging in fact, been taken over entirely by the new tive paperwork. The HR function is more
toward a technology. Employees knew the face-to-face flexible, so it can adapt quickly to business
model, which
almost semi- relationship was still intact in HR and avail- requirements for new programs and service
automatically able in critical moments of HR processes, delivery needs. HR staff is now proactive in
reduces the and this helped to create a more favorable offering their consultancy and solutions to
filters hetween climate at HP Italy. enable the company to operate within a mar-
knowledge ketplace that continually demands greater
supply and It is true that when technology enters
into the organizational design, the fear that a innovation.
knowledge
demand." machine will substitute for a person is very The organizational success of the @HP
real. HR has always had the role of managing Employee Portal is due to the system's qual-
people. Given the long-held focus on admin- ity as well as its implementation process. The
istrative support and cost containment, the HP case aided in presenting the research
positive influence HR can have on the effec- framework proposed in this article. In partic-
tive management of human talent is not ular, empirical evidence reported in this
The Application of Change Management Theory to HR Portal Implementation • 49
Study underlines the need for an integration and can affect IT implementation. For in-
of user acceptance models and change man- stance, HP could already count on a high-
agement theories (Proposition 1). The theo- level IT culture since it not only sells IT, but
retical contribution seeks to see the same is also a worldwide industry leader. How-
phenomenon (IT individual acceptance) ever, as this case demonstrates, this predis-
through two conceptual lenses. When the position alone may not be enough to guar-
content of the change is an IT application antee implementation, since cultural beliefs
and the context is an HR portal in a multi- and attitude can, and do, affect implemen-
national that requires rollout for all employ- tation. The HR country leader in HP Italy
ees in all subsidiaries, managerial actions adopted solutions in the Italian communi-
must be carefully planned to reach the high- cation plan consistent with local culture by
est degree of individual acceptance. involving all levels and creating widespread
Furthermore, with regard to Proposi- discussion and interest among employees.
tion 2, the HP case study suggests that cul- This case clearly illustrated how the user
tural dimensions are relevant in defining acceptance models, change management
the change management plan and, conse- concepts, and, in particular, local adapta-
quently, in influencing employees' percep- tion will affect ultimate usage with HR em-
tions. Even though a group of people may ployee portals in multinational companies.
have a strong common organizational cul- Future research can be designed in order to
ture, their country culture is still relevant test these two propositions.
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