E-HRM (Electronic Human Resource Management) refers to conduct business transactions particularly Human Resource Management transactions, using the internet along with other technologies (Lengnick-Hall and Moritz, 2003). It was inspired by the popular term of e-commerce. As per the literature, it can also be called as online HRM, web-based HR, virtual HR (M), HR intranet, e –HR, HR portals and computer-based human resource management systems (CHRIS). In 1990, this term E-HRM was introduced, when electronic commerce (e-commerce) was speeding in the world of business.It is an advance business solution which provides a complete on-line support in the management of all processes, actions, data and information required to handle human resources in an advance company.
It is an effective, consistent, easy-to-use system which can be used by groups of different users. It is a technology which allows the staff to have an access to HR and other departments of the organization. According to Ruel Huub & Bondarouk Tanya, E-HRM helps to execute HR policies, strategies and practices in the company by using web technologies. The objectives of an organization to take E-HRM are: 1.Developing the strategic orientation of HRM 2. Reduction in cost and effective gains 3. Improvement in client servicing and helping management and employees.
The choices of HRM strategies in an organization can be divided into three categories (Beer et al. ): the bureaucratic policy, the market policy, and the clan policy. Each category has its own specific characteristics about the HRM policy areas. TYPES OF E-HRM:- Based on the current literature, E-HRM can be distinguished into 3 categories in the companies as per their focus areas, which are: operational, relational, transformational E-HRM (Wright &Dyer, 2000, Lepak & Snell, 1998,). Operational E-HRM: – this area involves the basic HR activities. In some organizations, the HRM gives importance to administration and registration. Operational E-HRM gives the choice to the employees either to keep their own personal data up-to-date through a HR website or to have an administrative power in place to do this for them.
• Relational E-HRM: – this area, concerns on more advanced HRM activities. The helps the HR techniques that support basic business processes such as: recruiting and selecting of new personnel, training of new employees, performance appraisal, and rewards.It gives the option of selecting and recruiting the candidates either through a internet based application process or by using the process of manual application. • Transformational E-HRM: – this area involves HRM activities with a planned character. Here the emphasis is about the activities regarding organizational change processes, strategic re-orientation, strategic competence management, and strategic knowledge management. It is a mixed internet technique which enables the personnel to develop in line with the company’s choices.HOW E-HRM HELPS THE HRM (HUMAN RESOUCE MANAGEMENT) OF THE ORGANISATION:- It covers all aspects of human resource management like personnel administration, training, career development, corporate organization, job descriptions, selection and hiring process, employee’s data base etc.
Therefore E-HRM is a method of doing HRM. By following the path of E-HRM, an organization expects to achieve certain targets such as; a development in the HR’s strategic orientation, an improvement in client focusing, and a decrease in costs or increased efficiency. Improving HR services:Use of E-HRM, satisfied the HR to the maximum level. It raises flexibility in work, endorses modernism and allows the employees to increase development, and motivation. Furthermore, it reduces the repetitive questions of employees such as in regards to the training packages, and a policy guideline etc and also allows consultation at any time. It also helps in announcing job vacancies and important events within the organization. Cost reduction: E-HRM facilitates HR to provide efficient services to clients or customers, with fewer restrictions on time, place or availability (Alleyne, 2003).
It decreases the HR operational costs by providing the information to a large number of people on online basis. It allows the employees or their managers to handle their operational activities such as salary, training, holidays or leave entitlements by themselves. Redefining employee responsibilities in HR: In recent years, it can be seen that there is a significant change in the role of managers in the organizations due to some changes in the market developments and new technologies used by the organizations.Due to this, the duties that were performed by HR Professionals earlier such as : performance appraisals, reviewing employee costs, producing HR reports on turnover, absenteeism, processing training requests and overlooking competence management are now presenting by managers and employees (Ruel 2004, Ruta 2005, Martin 2005). E-HRM turns it easier for managers to merge these roles with their other roles effectively. E-HRM enables employees to update their data and manage their personal file by accessing it directly which refers to their training, performance appraisal and transfers. This is called employee self services.
This increases their motivation and contribution towards employment; also improves their performance, talent management through self selection and assessment. (Roehling et al. 2005). Improving HR strategic orientation: Use of E-HRM can create more real customer relationships within the. Through social networking, it can improve employee voice (Martin et al 2009). It liberates the HRM managers ( Strohmeir, 2006) to connect HRM to business by becoming strategic members of the top management team. It gives HR increased credibility and power through allowing them to make more reliable data which improves decision making.
Online recruitment:It is one of the most broadly functions of E-HRM. It refers to the vacancies posted on the company’s web site or on an online recruitment‘s website. It allows the candidates to send their resumes electronically via e-mail or in some electronic format (Galanaki, 2002). It can be benefited in terms of cost, time, candidate pool and quality of response. However, over loading of resumes is always a risk with the low reputation and effectiveness of various web sites and databases, not to mention its questionable effectiveness for senior executive positions (Ensher et al. , 2002). This can also help to sort and contact the candidates.
The selection procedure becomes easy while using this technology especially where long distances are involved. The selection can be done through Video conferencing and online tests, and the candidates can be selected at the initial stages of the selection procedure which saves the cost and time of the organisation. E-HRM enables the performance appraisal (PA) to be conducted on-line on the corporate website. This means that the managers and the employees are able to submit performance data directly to the HR department in via company’s website. This function decrease time and cost for the HR department remarkably.It enables the managers and employees to enter the performance appraisal results with an immediate effect and plan their performance on their personal HR page. E-HRM helps the managers and employees to communicate in the organisation effectively via email.
It is a useful approach to interact with the management. E-HRM RESULTS OR OUTCOMES:- Besides these objectives mentioned above, there are some outcomes of E-HRM that needs to be considered. According to Beer et al. (1984) there are four possibilities of outcomes which are: high dedication or commitment, high competition, cost effectiveness, and higher congruence. High commitment they means that the workforce is motivated and understanding, and that they are willing to interact with the management about changes in the organisational environment and the impact that this can have on the internal organisation. High commitment implies a high level of trust between management and employees. • High competence indicates towards the capabilities of employees to learn new roles and tasks if the situation demands it.
• Cost effectiveness indicates to the competitiveness in levels of pay and employee revenue rate, and to the adequacy of costs resulting from employee conflicts such as strikes. Higher congruence refers to the internal organization, the reward system, and the ‘input, throughput, and output’ of personnel, which need to be structured in the interests of all stakeholders.Below is the E-HRM model that explains the effect of E-HRM in an organisation. [pic] (Journal article: – “E-HRM: INNOVATION OR IRRITATION” by Ruel, Huub ; Bondarouk, Tanya) BARRIERS IN ADOPTIING E-HRM: Although there are many benefits of using the E-HRM in the organisation, but there are some aspects where E-HRM has some barriers and disadvantages which needs to be considered. According to the findings of Ruel Huub ; Bondarouk Tanya, if an organisation wants to become a global, then globally their HR practises, policies should also be the same wherever the company is present. Differences in the culture and languages, it is hard to adopt the newly introduced technology that is E-HRM. • In order to introduce E-HRM in the organisation, it is very difficult for the HR department to change their HRM practises.
Implementation of E-HRM can reduce the HR staff. It is hard to change the mindset and behaviour of HR personnel, employees and line management. E-HRM helps the employees to update their databases, performance charts, involve themselves in online discussions and opt their career paths. However many employees do not wish to accept this change. Some studies shows that the employees are rely on their managers to develop their carrier paths. • It can produce loss of privacy and confidentiality. If these points can be considered, E-HRM would be very useful for the organisation to grow.
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