International Journal of Science, Technology & Management www.ijstm.

com
Volume No 04, Special Issue No. 01, April 2015 ISSN (online): 2394-1537

ELECTRONIC HUMAN RESOURCE MANAGEMENT:

AN OVERVIEW
Shoeb Ahmad
Associate Professor, Dept. of MIS, College of Business Administration,
University of Ha’il, Saudi Arabia

ABSTRACT
Electronic HRM is the new technological tool which is gaining widespread importance within business
organizations around the world. It proves to be beneficial for business in many aspects among which, the major
ones are to make organizations go paperless, be more proficient and competent, and become more adaptable to
the contemporary needs. Internet technology, especially the World Wide Web, in the last two decades has helped
transform many HR processes and practices such as, recruitment, selection, performance management,
compensation and many more in a positive way. In facilitating these HR services, e-HR plays a significant role
at all levels - basic, intermediate and top . The paper- highlights the importance of e-HRM in business
organizations. It also provides with a brief overview the aims and scope of e-HRM in these organizations .The
paper finally concludes with some basic suggestions.

Keywords: E-HRM, HR Process, Human Resources, Internet, Organizations

I. INTRODUCTION

Computerized technology (Digital, ICT, IT, Automation and many more) along with other technological
advances has reshaped the world perhaps positively in a significant way. Everything including our way of
thinking, living, communicating and working has changed drastically. On a major landscape, our culture,
economies, demographics and even society has been affected by these technological changes.
Modern scientific inventions and fast changing technologies have changed the face of the universe. Distances
between the countries have been reduced and a new era of co-operation and international business has dawned.
No nation now can live in isolation unmindful of the state of affairs in other countries of the world. Changing
business scenario has cast its spell on all aspects of life and industrial relations have to be judged in the new
perspectives. Human resources have to be utilized and nourished in an entirely new grammar of administration
and technology. These technological paradigm shifts in business has brought about a colossal change in
delivering HR functions, organizational environment, managerial initiatives and employee management in the
form of what we call the term, „e-HRM‟.
Today e- HRM has become a tool that facilitates fast, accurate and paperless dispensation of various HRM
processes namely: Payroll; Time & Attendance; Benefits Administration; HR Management Information System;
Recruiting; Training; Employee Self-Service and many more. Further it empowers both the management and the
employee within organization, as they can access the typical HR functions through intranet or other
communication networks related to computer technology .“The empowerment of managers and employees to

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Volume No 04, Special Issue No. 01, April 2015 ISSN (online): 2394-1537
perform certain chosen HR functions relieves the HR department of these tasks, allowing HR staff to focus less
on the operational and more on the strategic elements of HR, and allowing organizations to lower HR
department staffing levels as the administrative burden is lightened”[1] .

II. OBJECTIVE OF THE STUDY

The paper aims to:

- present a brief overview on the different aspects of e-HRM in a simplified manner that may help the reader
to gain a basic understanding of the topic and,
- add to the extant literature related to the area of e-HRM research and development.

III. LITERATURE REVIEW

We all know that human resource is all about managing people, the most vital of all the resources in an
organization. It is the total skill, knowledge, talent, creative ability and aptitude of people in a workplace along
with the approaches, beliefs, values and aptitude of the individuals in an organization. This definition of human
resource is quite wide spread but in the present scenario this definition needs a revision because now internet
technology has been associated profoundly with HRM. The term e-HRM came into existence in early 1990s at
the time when e-commerce was spreading its wings within the business arena. Complementing the trend was
recent technological developments, which realized the concept of paperless office and business at finger touch
.In fact e-HRM has transformed the traditional business into a more realistic, informative and interactive
business.
Researchers in the area of e-HRM became active somewhat late and, to an extent, have not yet reached their
desired aim to catch up with practice. Hence, we can say that research on e-HRM is still in its nascent stage with
researchers still looking out for relevant and adequate theory with empirical evidences that can fully
comprehend the concept of e-HRM.
We define the term e-HRM as implementation of HRM practices in organizations together with use of internet
or web based technology .Similarly the term e-HR is used to describe technology‟s role in enabling the
transformation of HR activity. It describes the impact of internet on how HR management is practiced or raises
HR issues prompted by employees‟ use on the internet in an organization. E-HRM can be used for transactional
activities (i.e. those that involve day-to-day transactions and record keeping); traditional HRM activities such as
recruitment, selection, training, compensation and performance management; and transformational activities that
add value to the organization [2].It is the (planning, implementation and) application of information technology
for both networking and supporting at least two individual or collective actors in their shared performing of HR
activities[3].
Electronic Human Resource Management System (e-HRM System) is a web-based solution that takes advantage
of the latest web application technology to deliver an online real-time human resource management solution [4].
Previous literature suggests that e-HRM can augment the effectiveness of HR activities, improve, HR service
delivery and transform the role of the HR function into one that is more strategic [5].e-HRM is the complete
integration of all HR systems and processes based on common HR data and information and on interdependent
tools and processes, properly developed e-HRM could provide the data gathering tools, analysis capabilities and

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Volume No 04, Special Issue No. 01, April 2015 ISSN (online): 2394-1537
decision support resources for HR professionals to hire, pay, promote, terminate ,assign, develop, appraise and
reward employee[6].

IV. E-HRM IMPLICATIONS

Computer technology has streamlined our way of living, working, communicating and even the way of
conducting business .The emergence of Information technology in business world has significantly changed the
way how HR departments handle their record keeping and information sharing process.
Today, more HR functions are becoming available electronically or done over the internet. Everyday
organizational tasks such as approving pay rises, sorting out training and checking holiday entitlements, which
were earlier performed by skilled professionals are now being handled by the computers. Moreover, in addition
to performing the traditional tasks of accounting and pay roll calculations, computers are now being engaged to
maintain easily accessible employee data that are valuable for job placement and labor utilization, to track and
report affirmative action activity, employee training, compensation management etc.
A large number of HR managers are now using internet to recruit personnel, conduct research using electronic
data bases, send e-mails and also engage in valuable networking and discussions on line. Adoption of e-HR
seeks to minimize or eliminate intervention from HR staff, change the way many HR managers operate and
allows managers and employees to perform HR tasks directly with the self service tools. E-HRM improves the
strategic orientation of HRM, helps in Cost reduction/efficiency gains, improve the Client service and
facilitating management and employee [7].
The main objective of e-HRM is to facilitate the monitoring of human resources demand and supply imbalances
within an organization. This system eventually automates employees‟ related information and leads to faster
response to employees‟ related services and HR related decisions. E-HRM also offers the potential to improve
efficiency and cost effectiveness within the HR department, and allow HR to become a strategic partner. Above
all, it provides data security and personal privacy to the users which are the most in demand concept in today‟s
world. e-HRM provides an opportunity to improve HR services within both employees and management
perspective as well as facilitates efficiency and cost effectiveness within HR department.

V. TYPES OF E-HRM

e-HRM is a fully integrated, organization-wide electronic network of HRM related data, information, services,
databases, tools, applications, and transactions that are generally accessible at any time by the employees,
managers, and HRM professionals [8]. Wright and Dyer [9] specify three areas of HRM where organizations
can choose to „offer‟ HR services face-to-face or through an electronic means: transactional HRM, traditional
HRM, and transformational HRM. Lepak and Snell [10] also made a distinction regarding e-HRM, namely,
operational HRM, relational HRM and transformational HRM.

5.1 Operational E-HRM

Operational E-HRM is deals with the basic administrative activities of the HR department such as payroll,
Personnel data management, departmental record maintenance besides others. According to Snell et al. [11],
about 75-75 percent of the workload is related to this type of activities.

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5.2 Relational E-HRM
Relational e-HRM, emphasizes upon HR activities that support a mutual relationshipbetween HR department
and other departments both inside or outside the organization. The major activities concerned with this type of
e-HRM are e-recruitment, e- learning, E-performance management and so on. Strohmeier [12], considers
relational e-HRM as a means of interaction and networking among different players associated with an
organization. About 15-30 percent of HR workload is related to this type of activities [13].

5.3 Transformational E-HRM

Transformational e-HRM is the most complex type concerned with the strategic activities of HRM, such
organizational change processes, strategic re-orientation, strategic competence management, and strategic
knowledge management. “Finally, in terms of transformational HRM, it is possible to create a change-ready
workforce through an integrated set of web-based tools that enables the workforce to develop in line with the
company‟s strategic choices or to have paper-based materials[14].
It totally depends upon an organization to practice E-HRM policies from any number of these three types to
achieve their HR goals.

VI. FUTURE DIRECTIONS FOR SOME E-HRM FUNCTIONS

An increase in quality and pace of HR tasks is achieved due to e-HR. The traditional administrative processes
were quite slow and inefficient, but now with the help of e-HR not only manpower saving is attained but,
processing time can also be reduced drastically. E-HR also reduces the workload of HR department as the
employee could log in online anywhere and anytime without being in the office and without the leave card. The
important Hrm functions that has benefited due to e-HR are discussed below.

6.1 Recruitment and Selection

E-recruiting is the hottest area of all HR field and includes posting of open positions on the worldwide web
home page and various other career services. In the HR arena websites such as Career Mosaic, Higher Ed.,
Monster, Naukri.com offer employer profiles, job openings career information and human resource forums.
With e-recruitment the company gets an additional possibility besides the normal application by paper to recruit
people over the web in an online-application process. With appliance of ICT in recruitment process,
organizations can post their job vacancies online, can attract the best from the world wide talent pool investing
less time, effort and ,cost.
e-HR performs multiple functions which are similar to the functions of resource management. Functions such as
matching CVs to person‟s specifications for short listing purposes and linking with internet recruiting processes
are performed by e-HR. Procedures like letter writing, acknowledgements, invitations to interview, offers and
rejections, management reports, analysis of response by media and monitoring recruitment costs, and evaluating
applicants, employees and analyzing and designing jobs become systematized and convenient and helps in
selecting, placing, promoting, terminating and transferring employees.

6.2 Payroll and Performance Appraisal

E-HR technology is used for forecasting future payroll costs on the basis of assumptions about members,
promotions and pay levels and administering pay reviews, producing review forms, analyzing proposals against

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Volume No 04, Special Issue No. 01, April 2015 ISSN (online): 2394-1537
the budgets and calculating the cost of performance related pay awards in accordance with different assumptions
about amounts and the distribution of awards within a budget. The technology can also be used for generating
forms, analyzing and reporting on the results of performance reviews showing the distribution of people with
different degrees of performance at different levels, highlighting individuals with particular skills or special
characteristics, writing role definitions, and generating employees opinion surveys online.

6.3 Training and Development

In the sphere of training and development, e-HR technology can be utilized for training and developing
employees, storing e-learning modules on the database which enables trainers to select an appropriate module or
mix of modules to meet a specified learning need, analyzing the training recommendations contained in
performance review reports to identify collective and individual training needs, and informing employees about
the arrangements for courses.
As organizations become more e-HR savvy, they are beginning to see the benefits almost immediately
because, with modern technology every document, transaction, records have become paperless and hence there
is no need to maintain a heavy stack of written records. It is advisable to collect data and information available
through the e-HR process that can be later communicated across all organizations. These include employer
facilities such as learning opportunities and flexible benefits. It can provide links that enable managers and other
employees to interface directly with HR applications and make changes or enquiries.

VI. LIMITATIONS

Although E-HRM majorly contributes positively to the organizations, it is not free from flaws and limitations. e-
HRM is accompanied by its own negative consequences, that can be best described as computerized or
digitalized scrap or junk. The primary function of e-HRM is to collect and store online data, but associated with
this came complexities and delays, which are the key elements to reduce for which E-HRM was incorporated
and introduced in modern organizations.
Establishment of e-HRM can prove to be quite costly in terms of both investment and human resource
requirements as it needs induction of sophisticated technology and highly skilled personnel who are adept in
handling these technologies. Further, the users do not get exactly the reports which they want as computers
cannot substitute human being. At best they can aid human effort. There is lack of face to face communication
between the employee and the employer which may have an adverse effect on the assessment of the employees
by the employer and vice-versa. Our proposition to these negative aspects of e-HRM is that the solution should
not be looked for, in innovating new technologies, instead should be looked within the innovative thinking about
core HR practices and systems. HR practitioners should concentrate on incorporating innovative HR functions
rather follow a traditional path in their service delivery system.
The automation of various tasks results in the staff reducing strategy of an organization which may further lead
to the de-motivation of the employees as they will always be under the pressure of great threat of using their
jobs. The traditional social task of HR department may be affected badly since their tasks were confined to small
localized area which has now been converted into a global expansion with the implementation of e-HR. To
capitalize on these e-developments, the HR function needs to embrace changing technology and provide both

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Volume No 04, Special Issue No. 01, April 2015 ISSN (online): 2394-1537
transactional and transformational services. In facilitating these HR services, e-HR can be analyzed at all levels
- basic, intermediate and top.
A basic-level e-HR might incorporate the internet provision of all live information. This can be on training
courses, vacancies, employees‟ benefits entitlement and the staff handbook. Further, the online availability of
HR policies and procedures such as discipline, grievance and health and safety can also find their way.
Interactive facilities such as changes in employees details, management reporting and requests for basic
information on staff turnover or pay rates are next to be incorporated.

VIII. CONCLUSIONS AND SUGGESTIONS

Currently e-HRM has become an inseparable part of the functioning of almost all the business niches of
different levels irrespective of size and capacity. It has established a positive connection between different
organizational initiatives at departmental levels and provide precise and opportune personnel information on-
line without any time limitations.
E-HRM is a way of applying HR strategies, policies, and practices within organizations with a deliberate and
intended for assistance of a complete web-technology-based network. Nevertheless, each technology has its own
inherent risk associated with its implementation- that of huge financial investment, reduction of human
involvement and materialistic approach, e-HRM is no exception. Introduction of new technologies and the
management approaches have added to the challenges facing human resource managers. To meet these
challenges of the future, 21st century corporations must adapt itself to management related via web.
Though, e-HRM is a novel and hot topic for research, it lacks the impetus or the driving force that can inspire
academicians and experts in the field to explore its potential to its full extent. In other words, the academic
community can apply new thinking to suggest alternative ways to do HRM. Combining technology, theory and
empirical research with innovative exploration and science, the field of HRM can let go of its past and move
into a new realm (Welbourne,2010)

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