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CHAPTER - 6

BHR 21003
(MANAGING THE IMPACT OF
INFORMATION TECHNOLOGY ON HRM)
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TECHNOLOGY CHANGES THE ROLE OF
ORGANIZATION HUMAN RESOURCE
• Internet use has changed the way human resource
practitioners work.
• Technology has also changed the way human resource
professionals run their business and communication
with employees.
• However, not all employees and manager can accept
changes and use this new technology.
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IMPACT OF INFORMATION TECHNOLOGY ON
THE OPERATIONS OF AN ORGANIZATION
Reduce Manpower Cost
• An attempt to replace manpower force.
• Calculation functions such as salary payment and
benefits have become priority function in introducing
the use of information technology.
• Manpower force needs may be reduced in the human
resources management sector but increased in other
section such as the information, communication and
technology department.
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IMPACT OF INFORMATION TECHNOLOGY ON
THE OPERATIONS OF AN ORGANIZATION
Increasing Productivity
- The productivity of employee is improve in a way that
they can manage data efficiently
- Able to manipulate and to rearrange database for other
administrative.
- To gained from owning a storage place for data
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IMPACT OF INFORMATION TECHNOLOGY ON
THE OPERATIONS OF AN ORGANIZATION
Institutionalizing Organization Memory
- Able to generate huge quantity of information which
was previously not available in the organization.
- The manager can use decision support systems to
raise productivity and workflow.
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THE EFFECT OF INFORMATION TECHNOLOGY
ON ORGANIZATION RELATIONS
Internal – relations between staff and department.
External – relations between organization with
outside parties.

a) Providing Access in Remote Areas

- line managers and employers can store, edit and
retrieve their data especially data from remote
area.
- able to access the data from a database through
a system
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THE EFFECT OF INFORMATION TECHNOLOGY
ON ORGAIZATION RELATIONS
b) Improving the Level of Service
- customers can access data in a systematic, fast
and easy manner where the data is always current.

c) Improving Relational Systems

- Able to coordinate the various systems (payroll
system and time keeping system)
- Can lessen problems related to time and
distance.
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THE IMPACT OF INFORMATION TECHNOLOGY TOWARDS THE
TRANSFORMATION OF THE ORGNIZATION

a) Reengineering Work Process

- reengineering the work process involves the
organization rethinking and to redesign the way
they fulfill the customers’ needs.
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THE IMPACT OF INFORMATION TECHNOLOGY TOWARDS THE
TRANSFORMATION OF THE ORGANIZATION

b) Establishment of a Virtual Team

- To manage certain projects.
- To allocate human resources in a speedy
manner and able to assemble resources in facing
any situation.
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THE IMPACT OF INFORMATION TECHNOLOGY TOWARDS THE
TRANSFORMATION OF THE ORGNIZATION

c) Establishment of Organization Job Network

- A configuration comprising various separate
business units (either internal or external)
- Involve identification, allocation and arrangement
of human resources in a organization
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DETERMINING PRIORITY FOR INFORMATION
TECHNOLOGY APPLICATION

(a) Reconciling/integrating Information Technology with

Organization Strategy.
- to enable the potential brought by information
technology
- must align information technology with
organization strategy
- the top management has to be alert in
evaluating how technology can support existing
organization strategy.
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DETERMINING PRIORITY FOR INFORMATION
TECHNOLOGY APPLICATION

(b) Coordinating Information Technology with Human

Resource Strategy
- senior management must be careful when
evaluating how information technology can be adapted
to organization human resource strategy.

(c) Viability/capability evaluation

- senior managers must take into account viability
evaluation in determining the reality of its
implementation.
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DETERMINING PRIORITY FOR INFORMATION
TECHNOLOGY APPLICATION
Human resource is able to play an important part in
introducing new technology by:
• Identifying methods that can minimize disturbance and
negative perceptions among employees.
• Providing guidance to determine technology skills that
need to developed.
• Identifying and making an evaluation on the potential of
change in the relations brought by new technology in
improving service, increasing productivity and reducing
costs in an organization.
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