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TOPIC
AN EXAMINATION OF E-HRM AS A MEANS TO INCREASE THE VALUE OF THE HR

DEFINITION

HUMAN RESOURCES: Defined as the total knowledge, skills, creative abilities, talents and aptitudes of an organization's workforce of the individuals involved in the affairs of the organization. HRM: Can be defined as managing (planning, organizing, directing, controlling) the functions of employing , developing and compensating human resources.

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DEFINITION OF E-HRM
Mary

Gowan 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 online real-time human resource management solution.
Lawler

III (2005) suggests that e-HRM and its self-

service characteristics can be the cheapest and fasted way to provide specific HR activities.

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EARLIER

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NOW

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The Trends Shaping E-HR:

Similar to E-business, certain market and business trends are shaping the world of E-Human Resources. These trends are driven by users and clients, processes and services, organizational entities, and, of course, technology.

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EVALUATION OF E-HRM
The evaluation of the E-HRM department is based on driving forces. These forces need to responded to as companies approach the 21st century.

Information Technology: HRM professionals are facing a digital future. The rapid growth in the field of computer hardware, software, networking, and telephony services is absolutely essential to the virtual HRM movement.

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EVALUATION OF E-HRM

Processes Reengineering; strategic HRM managers are constantly looking for ways to streamline and improve core business processes to make them efficient. High-Speed Management; to be competitive, Virtual HRM is definitely a smarter and quicker form of service delivery than traditional HRM. Globalization; to complete successfully in the 21st century, all companies must develop a global business strategy. This means that HRM departments must be capable of providing services to their employees anywhere 10 10/ on earth 45

Why Is Internet-Enabled HR Technology Important For HR?

E-HRM is the cheapest way of providing some HR activities. E-HRM, enables managers access to relevant information and data, conduct analysis. E-HRM, increase efficiency and effectiveness of the organization by improving the capabilities of both managers and employees in taking better, timelier decisions. E-HRM, enables the HR system to create value for the organization in new ways.

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OBJECTIVES OF E-HRM
To offer an adequate on-going information system about people and jobs at a reasonable cost. To provide support for future planning and also for policy formulation. To facilitate monitoring of human resources demand and supply imbalance . To automate employee related information; To enable faster response. To offer data security and personal privacy.

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TYPES OF E-HRM

Administrative Functions

Supportive Business

Strategic HR Activities Transformat ional

Operational

Relational

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TYPES OF E-HRM
Lepak and Snell(1998) distinguished three areas of HRM:

Operational HRM: e-HRM is concerned with administrative function like payroll, employee personal data, etc. Relational HRM: e-HRM is concerned with supportive business process by the means of training, recruitment, performance management, and so forth. Transformational HRM: e-HRM is concerned with strategic HR activities such as knowledge management, strategic reorientation, etc
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THE IMPORTANT ASPECTS OF E-HRM

E-Job Design and Job Analysis E Human Resource Planning E-Recruitment E Selection E-Performance Management E-Training & Development E Compensation Management E HR Records E HR Information E HR Audit

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E JOB DESIGN AND JOB ANALYSIS

The information of listing skills and competency mapping are placed on the net. Then the system matches the listing skills and competency mapping and produces the output of identifying the employee suitable for a particular task.

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E-HUMAN RESOURCE PLANNING

Computer Programs are developed and used extensively for the purpose of planning human resource requirements based on the data and the information These programmes indicate the number of employees required at each level for each category of the jobs based on sales and production forecasts.

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E TRAINING AND DEVELOPMENT

Companies started providing online training and online executive development. Participants complete course work from wherever they have access to a computer and an internet. 67% of companies use e-learning 76% of these will use e-learning techniques within the next 3 years 94 % of HR managers and HR directors think the investment in e-learning is efficient for utilising training resources
Source : Management Center Europe : 500 European companies, interviewed in April 2009, during the HR European Congress organised by MCE

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E COMPENSATION MANAGEMENT
Almost

all the organizations started using computers for salary fixation, salary payment, salary calculations, fixation and calculation of various allowances , employee benefits, welfare measures and fringe benefits

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E HR RECORDS
HR records are created, maintained and updated with the help of computers easily and at a first rate.

E HR INFORMATION
HR info is generated, maintained , processed and transmitted to the appropriate places or clients with the help of software with high speed and accuracy.

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E HR AUDIT

The standard human resource practices or the desired HR practices are fed into the computer. The data and info regarding the actual practices are also fed into the computer The software automatically completes the HR audit and produces the audit report. The HR manager then can modify the report by deleting or adding any comments.

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E-HR ACTIVITIES
E-recruitment

is the process of personnel recruitment using electronic resources, in particular the internet. The two kinds of e- recruitment that an organization can use Job portals: posting the position with the job description and the job specification on the job portal Own-website: Companies have added an application system to its website, where the passive job seekers can submit their resumes into the database of the organization Job sites provide a 24*7 access to the database of the resumes to the employees facilitating the just-in-time hiring 2220/ by the organizations 45

E-HR ACTIVITIES
E-performance

management tends to increase productivity, competitiveness and motivate employees as indicates. This is possible through two ways: may facilitate measuring an individuals performance via computer monitoring activities. become a tool to facilitates the process of written reviews or generating performance feedback

Technology

Technology

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ADVANTAGES OF E-RECRUITMENT
Lower costs to the organization. Also, posting jobs online is cheaper than advertising in the newspapers. No intermediaries. Reduction in the time for recruitment Facilitates the recruitment of right type of people with the required skills. Improved efficiency of recruitment process. Gives a 24*7 access to an online collection of resumes

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DISADVANTAGES OF E-RECRUITMENT:

Screening and checking the skill mapping and authenticity of million of resumes is a problem and time consuming exercise for organizations. There is low Internet penetration and no access and lack of awareness of internet in many locations. Organizations cannot be dependant solely and totally on the online recruitment methods. The employers and the employees still prefer a face-toface interaction rather than sending e-mails.

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LITERATURE REVIEW:

There has been much discussion in the literature about the possible goals and outcomes of e-HRM (Hawking, Stein and Foster 2004; Ruta 2005; Ruel et al. 2006). Similarly, Ruel et al. (2006) suggested the four goals of cost reduction, improving HR services, improving strategic orientation and global orientation. Past research in the field of e- HRM has been criticized for a general lack of theory (Stroehmeier 2007; Bondarouk and Ruel 2009).
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RESEARCH OBJECTIVES:
Research Questions

The objective of this research is translated in the following research questions:

How

to measure the effectiveness of e-HRM? is the effectiveness of e-HRM? an e-HRM tool affect e-HRM function?

What Does To

offer recommendations and suggestions for enhancing the effectiveness of e-HRM systems.

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RESEARCH METHODOLOGY:

Research Design: I did descriptive study. Data Collection Method: I did secondary research.
I used a scholarly Internet search engine (scholar. google.com) and several online data bases, Business Source Premier and INFODATA), that cover all leading journals not only in the fields of human resource and general management but also in information systems, the recently developing field of e-business
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FRAMEWORK
In

past to explain individual perceptions and reactions arising from e-HRM these theories are presented: Attribution theory Correspondence inference theory The attractionselectionattrition and the similarityattraction Change management Additionally, a learning theory is adopted to compare instructor-led and web-based learning 29 27/ (Coppola & Myre, 2002). 45

DATA ANALYSIS METHOD

Given different interpretations and assessments of theory, there is an ambiguity concerning theories, frameworks So current study in e-HRM is mainly non theoretical. A general framework based on previous conceptual work is considered as most appropriate to structure e-HRM. The framework distinguishes between configuration and consequences of e-HRM, proposing that the configuration will determine the consequences of e-HRM,
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FRAMEWORK

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E-HRM ACTORS
Actors of e-HRM are all those who (plan, implement and) perform e-HRM, and hence are of vital importance, as e.g. HR professionals, line managers, employees, consultants, applicants, etc. Reactions of actors to e-HRM, comprising for instance preferences, perceptions of image, perception of attractiveness, acceptance, or satisfaction,

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E-HRM STRATEGY
E-HRM strategy as a component of a functional HRM strategy refers to the establishing of constitutive objectives and the implementation of e-HRM Findings concerning the e-HRM strategy at first hint, case study shows that two out of five major organizations do have a clearly defined e-HRM strategy while the other organizations at least had ideas about general objectives, but the link to e-HRM and the overall HRM strategy was less clear

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E-HRM ACTIVITIES
E-HRM activities means the single HR functions, like recruiting and selection, training and development, compensation and benefits, etc. Empirical evidence for a wide spread use of e-recruiting in North America where the Internet has become an ordinary recruiting source. Besides corporate web sites, primarily Internet job boards are utilized in order to realize e-recruiting (Hausdorf & Duncan, 2004). Compared to e-recruiting, e-selection seems to be in an earlier and developing stage since findings reveal a rather limited application

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TECHNOLOGY OF E-HRM

Though HRM is a non-technical discipline, the technology of e-HRM like portals, self-service systems, etc. should be of interest. Two studies examining recruiting websites report that the recruiting websites of private sector organizations show increased functionality and usability and interactive tools (Cober et al., 2004). A further content analysis shows that a single ERP-System provides functionalities in most of the key process areas of the so called people capability maturity model (Tretken & 35 32/ Demirrs, 2004)
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CONSEQUENCES
Individual Consequences: Overall findings of two case studies concerning HR Portals (Ruta, 2005) and employee self service systems (Hawking et al., 2004) reveal increased employee acceptance and satisfaction due to added value like time savings or increased accuracy of results. Another study demonstrates that applicant perceptions of electronic job search were even more positive owing to a clearly greater number of jobs found and an improved quality of information (Van Rooy, Alonso, & Fairchild, 2003). At the intersection of e-recruiting and e-selection, findings reveal that applicants react more positively One study examines reactions to a special variety of e36 33/ compensation and e-benefits. Findings employees with 45 citizenship behavior (Huang, Jin et al., 2004,

CONSEQUENCES
One of case study reveals an extensive decentralization of executing HR activities by shifting responsibilities to line management and employees Another findings of case studies also expose clearly increased relevance of the HR-department as a flexible and proactive business partner

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SECOND THEORETICAL FRAMEWORK FOR MEASURING E-HRM EFFECTIVENESS

Informational E-HRM Support: The digitalisation of HR information and data, and the provision and recording of this information and data through web-based channels

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SECOND THEORETICAL FRAMEWORK FOR MEASURING E-HRM EFFECTIVENESS

Relational E-HRM Support: Providing HR processes through web-bases channels to the people of the HR function the interaction between the customers of the HR department and the HR department

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SECOND THEORETICAL FRAMEWORK FOR MEASURING E-HRM EFFECTIVENESS

Aim at fundamental transformations concerning the general scope and the function of HRM, comprising the ability to contribute to overall organizational performance. Automation of the HR activities, new ways of conducting HR activities are adopted

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ADVANTAGES OF E-HRM:
Ease of recruitment, selection and assessment Ease of administering employee records Reductions to cost, time and labour Prompt insight into reporting and analysis A more dynamic workflow in the business process, productivity and employee satisfaction A decisive step towards a paperless office Makes the work to get over fast Global Reach

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DISADVANTAGES OF E-HRM

Employees and line managers mindsets need to be changed: they have to realize and accept the usefulness of web-based HR tools. They generally feel that they lack the time space needed to work quietly and thoughtfully with web-based HR tools and so, if there is no need, they will not do it. Guaranteeing the security and confidentiality of input data is an important issue for employees in order that they should feel in safe when using web-based HR tools.
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SIGNIFICANT OF THE STUDY

This study will provide the human resource professional to more effective way to implement the human resource functions implementation. This study also identified e-HRM features that deserve HRM practitioners' attention and organizational resources. This in-depth examining of the set of e-HRM features can also serve as potential tools for the management to decide on the future adjustments of their e-HR system, and the implementation of the new systems.
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IMPLEMENTATION OF E-HRM
There are five main phases in the implementation of the EHRM business solution. Analysis (Infrastructure): Analyzing the existing infrastructure with regard to quantity of data and classification of business activities. Business processes in the company: After the existing processes have been analyzed, the options for automating these processes in the clients environment are proposed. Finally a project plan is developed based on the model of the processes identified. Implementation: After the fundamental analysis of the processes in the work team, individual modules are deployed in the clients environment 44 40/
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IMPLEMENTATION OF E-HRM
Implementation and Training: A complete knowledge of the components of the solution is a key factor for successful implementation. The entire team of project managers and human resources specialist are thus involved in user training and implementation Maintenance: A maintenance contract typically includes: Technical support experts available by phone, through email Application software adjustment to changes in the system environment or Functionality improvement and software upgrades in the 45 41/ form of new versions 45 Consultation about further development of the system.

ORGANISATIONS ADOPT E-HR FOR REASONS THAT INCLUDE

The aim of HR service improvement, making it more strategic and business focused. The objective of cost cutting and aiding operational efficiency The desire of the HR function to change the nature of its relationship with employees and line managers The transformation of HR into a customer-focused and responsive function The offer of services that fits the new world of work and is attractive to current and future staff The ability to produce comprehensive and consistent 46 42/ management information. 45

IN CONSIDERING E-HR, ORGANIZATIONS HAVE A NUMBER OF DESIGN DECISIONS TO MAKE

What are the best means of delivery voice, web or call centre technologies, for what circumstances

What proportion of services will be delivered through employee and manager self service?

Redesigning the HR function will impact on the roles and skills of HR staff.
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A NUMBER OF CHALLENGES FACE THOSE MOVING TO E-HR

There is an imperative to align any investment in E-HR with the strategy of the business. It is desirable to customize your E-HR offering wherever possible (within reasonable costs). This could be by location or activity . Resistance to change is likely, especially within the HR function. Information overload managers and employees may get 48 weighed down by the volume of communication. 43/
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LIMITATIONS OF E-HRM
E-HRM also has many problems which need to be addressed to before it can really be useful: It can be expensive in terms of finance and manpower requirements.

It can be threatening and inconvenient to those who are not comfortable with computers Computers cannot substitute human being The quality of response is dependent upon the accuracy of data input. The garbage-in garbage-out is the key 44/ 49 expression in any computerized system. 45

SUGGESTIONS

The pay structure defined currently is insufficient so HR department has to given in a description on how assessment of the employee performance is made online in order to realize the payments calculated online. E-HRM still has to be responsible to build high level performing teams by taking more reviews and training in order to pick out high performing teams.

E-HR can also improve organizational performance through reframing the HR policies according to the preferences of the employees

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SUGGESTIONS

The HR department can often make use of chat rooms, fairs, networking etc. for recruiting in order to make them effective The HR department has to give in a detailed employment contract offer online HR department should also give preferences to policies that change the nature of relationship with the employees and managers

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COCLUSION
E- HRM is advance business solution which provides a complete on-line support in the management of all processes, activities, data and information required to manage human resources. It covers all aspects of human resource management like personnel administration, education and training, career development, job descriptions, hiring process, employees personal pages, and annual interviews with employees. Therefore E-HRM is way of doing HRM. 52 45/

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53 END