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Unit 2: e-Human Resource Management

As most projects will have an evaluation stage, these costs should also be included. Evaluation Notes
costs are the costs for: Conducting surveys, analysing data, and the distributing documents.
The last costs that could be included are overhead costs. Typical overhead costs are: Costs
for support, space and utilities. Besides the costs, you also need the savings or the revenues
the investment realises. The savings and revenues used for calculating the ROI were divided
into four aspects:
1. Output increases.
2. Savings on costs concerning quality.
3. Cost savings on operation and overhead.
4. Time savings.
Every organization has some sort of “basic” measurement of work output, appearing in
various forms as: Productivity, forms processed, and tasks completed.
Further, every organization is concerned about quality and e-HRM technologies might affect
quality. Type of quality costs savings are for instance: Costs saved on data error corrections,
and costs saved on dealing with “customer” complaints.
Another significant effect of the adoption of e-HRM technologies is the decrease of costs in
general. Different kind of costs savings can be distinguished like: Savings in overhead costs,
and savings in operating costs. The last cost saving is time saved. Time savings may mean
that activities are completed faster and thus new activities could be initiated earlier. Types
of timesaving are for instance: Cycle time reduction of HR activities, the decrease of
downtime of the availability, and processing time improvements.

2.6.6 HR Effectiveness
The multiple constituency approach of HR system wants to be effective; it should meet its
stakeholder’s expectations and demands. The multiple constituency approach, were the HR
system should meet stakeholders needs and demands, is an indicator of the effectiveness of
the HR system.
• At the highest level there should be an integration of the HR strategy with the
organization’s business strategy.
• At the policy level there should be consistency of focus, although more research is
perceived necessary.
• At the process level it is important how different activities are performed.
Effectiveness of the three levels is related to effectiveness of the HR system. Therefore, an
elaboration is made on how to measure effectiveness at the three different levels. Another
distinction is the distinction between different types of personnel. Three types are categorised
namely: The HR professional, the manager and the employee. This distinction is created
because the three types have different position within the HR system and therefore can
perceive the effectiveness of the HR system differently. For instance a HR professional can
perceive that an activity is well organised while the manager who uses that activity is less
positive.

Effectiveness at the Philosophy Level of the HR System
The HR system at the HR philosophy level is effective when there is an alignment of the
HR strategy with the organization’s overall strategy. The use of e-HRM technologies is
dependent on the strategy of the organization. The value and uniqueness of an HR activity
were identified as determinants for mapping the HR activities in the HR architecture of
responsibilities. When the HR activities are mapped, a choice for the delivery of an HR
practice should be made and providing an HR activity through web-based-channels is such
a choice. The value and uniqueness in this way have an influence on what activities are
provided through web-based-technologies and an alignment of the e-HRM technology with

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