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Unit 2: e-Human Resource Management

Objectives Notes

After study this unit, you will be able to:
• Explain the types of e-HRM
• Understand the e-HRM outcomes
• Discuss about consequences for the HRM department
• Explain in detail about e-HRM goals
• Discuss about the use of the e-HRM technology
• Understand the impact of e-HRM on the effectiveness of the HR system

• Understand finalizing the theoretical framework
Introduction

Human Resource (HR) function was an early adopter of computing technology, playing
catch-up to other business functions in terms of integrating Information Technology (IT) into
their processes. During the nineties, organizations became experienced in using IT for
Human Resource Management (HRM). Although, a little later as within other business
functions, IT retailers offered more and more new solutions for HRM problems. As within
other business functions, IT has become an important tool for supporting the processes of
the HR function and the HR function is now closing the gap in terms of applying new IT
capabilities to traditional functions.
The HR function of an organization is responsible for complying with the HR needs of the
organization. As with other business functions, strategies, policies and practices have to be
implemented to ensure smooth operation of the organization and prepare the organization
in such a way that smooth operation can be guaranteed in the (nearby) future. Using e-HRM
technology is a way of implementing these HR strategies, policies and practices. The e-HRM
technology supports the HR function to comply with the HR needs of the organization
through web-technology-based channels. The e-HRM technology provides a portal which
enables managers, employees and HR professionals to view, extract, or alter information
which is necessary for managing the HR of the organization. Lawler III suggests that e-HRM
and it self-service characteristics can be the cheapest and fasted way to provide specific HR
activities. Modern technology can be helpful in creating a strategic HRM-policy, reducing
costs, higher productivity, increasing quality of your labour force and more responsibility
of managers and employees in the execution of HRM-tasks.

With e-HRM, managers can access relevant information and data, conduct analyses, make
decisions, and communicate with others and they can do this without consulting an HR
professional unless they choose to do so. For example, a manager who wants to make a merit
pay decision may access files containing text, audio, and video describing how best to make
the decision. Then, the manager can access the data file containing information on his/her
employees. With a click of the mouse, the decision is recorded and other departments (such
as finance) are notified. Hours of processing are reduced to minutes, and much paperwork
is avoided by the use of this technology.
With e-HRM employees control their own personal information. They can update records
when their situations change and make many decisions on their own, consulting HR
professionals only when they deem it necessary. For example, an employee who wishes to
increase investments in a retirement plan can do so from work or home using the Internet.
Employees may also, participate in a training program at home after working hours. Self-
service for managers (MSS) and employees (ESS) are the key concepts of these technologies.

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