Everything you need to know about eHRM – e-human resource management. 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.
It is comprehensive but easy to use, feature-rich yet flexible enough to be tailored to your specific needs.
E-HRM has the potential to change all traditional HRM functions. For example, employees in different geographic areas can work together. Use of the Internet lets companies search for talent without geographic limitations.
Recruiting can include online job postings, applications, and candidate screening from the company’s Web site or the Web sites of companies that specialize in online recruiting, such as Monster(dot)com or Yahoo or Hotjobs. Employees from different geographic locations can all receive the same training over the company’s computer network.
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Learn about:- 1. Introduction to E-Human Resource Management 2. Meaning of E-Human Resource Management (E-HRM) 3. Electronic Human Resource (E-HR) Perspective to Organizational Effectiveness 4. Aspects 5. Work 6. Implications for HRM Practices.
eHRM: Introduction, Meaning, Perspective, Aspects, Model and Implications
Contents:
- Introduction to E-Human Resource Management (E-HRM)
- Meaning of E-Human Resource Management (E-HRM)
- Electronic Human Resource (E-HR) Perspective to Organizational Effectiveness
- Aspects of E-Human Resource Management (E-HRM)
- E-Human Resource Management (E-HRM) Model
- Implications for E-Human Resource Management (E-HRM) for HRM Practices
E-Human Resource Management (e-HRM) – Introduction
HR technology can improve the management of HR and so contribute to the organization’s competitive advantage. It is now established that the benefits of the use of technology far outweigh the benefits of just engaging in traditional practices of HR. For example, software companies like Microsoft, Satyam Computers and Infosys have been performing most of their HR management (HRM) online.
Technology has increased and access made readily available of HR information; improved communication; improved the speed at which HRM transactions and information are gathered; and reduced costs making it easier to administer HRM functions, such as recruitment, training, and performance management.
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Survey evidence showed that firms using technology, and especially information technology, are listed in the Fortune 500 firms. The majority of these firms have invested in computer applications designed to aid HRM through computerized employee records, payroll, and compensation and benefits administrations. What emerged, as a common trend, was that such investments led to more efficient information management of HRM.
This example shows that technology can improve HR administrative, operational, and planning decisions. Unfortunately, many firms continue to ignore the use of technology in aiding its operations, and where technology is used in HRM; it is limited to a narrow range of function, especially those in administrative management of payrolls or employee record management.
HRM technology provides a number of conveniences to organizations.
They include:
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i. Enabling employees to gain complete control over their training and benefits
ii. The creation of a knowledge-based decision support system which allows employees and managers to access data as and when it is needed on the profile of the employee within a firm;
iii. Allowing employees and managers to select the type of media they want to use to send and receive information;
iv. Allowing the concept of “home office” to be implemented for some employees.
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v. Creating paperless office; streamlining of HRM departments;
vi. Allowing employer to closely monitor the performance of their employees; and
vii. Enabling the firm to re-structure to remain competitive through reducing the cost of human resource operations, downsizing or rightsizing of its employees, as well as, the establishment of more learner and flexible ways of operating.
Information System Applications in Human Resource Management:
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A unified data model provides a single, accurate view of HR activities ranging form recruitment, employment, training, performance management, compensation management and real time management. Oracle human resource leverage workflow and internet-based processes optimize various HRM activities. The system maintains global HR data in case of trans-national companies and total organizational human resource data in case of national companies in a single location for accurate and easy availability.
The system of applications of information technology (IT) in HRM is referred to as human resource management information system (HRIS) or human resource module. HRIS merges some of HRM functions with the IT field, wherein the planning and programming of data processing systems have evolved into standardized routines and packages of enterprise resource planning (ERP) software. ERP integrates the human resource module with finance, production, and sales and administration modules.
Generally, traditional HRM functions are common to all organizations. They consist of tracking data regarding personal histories, family details, skills, capabilities, experiences, pay, benefits and grievances. Performance of these functions is increasingly complex, must be performed at the lowest possible cost and also at a fast rate, leading to increased challenges for HR professionals. Organizations have started to automate these functions by introducing HRIS technology.
Development of client-server HRIS enables HR executives to assume responsibility and ownership of their systems compared to client-server architecture, which came largely in the form of mainframe computers and necessitated heavy capital investment to purchase program proprietary software. HRIS is developed around six main areas of human resource management size-recruitment/applicant tracking, e-training, e-payroll, e-benefits, e-self service and e-time and labour management.
E-Human Resource Management (e-HRM) – Meaning
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. It is comprehensive but easy to use, feature-rich yet flexible enough to be tailored to your specific needs.
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A recent research report on e-HR people management strategies is associated with a nearly 2% increase in a company’s market value. e-HR helps maximize a company’s progress toward a knowledge economy and increased shareholder value.
Many HRM activities have moved onto the Internet. Electronic HRM applications let employees enroll in and participate in training programs online. Employees can go online to select from items in a benefits package and enroll in the benefits they choose.
They can look up answers to HR-related questions and read company news, perhaps downloading it as a podcast. This processing and transmission of digitized HR information is called electronic human resource management (e-HRM).
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E-HRM has the potential to change all traditional HRM functions. For example, employees in different geographic areas can work together. Use of the Internet lets companies search for talent without geographic limitations.
Recruiting can include online job postings, applications, and candidate screening from the company’s Web site or the Web sites of companies that specialize in online recruiting, such as Monster(dot)com or Yahoo or Hotjobs. Employees from different geographic locations can all receive the same training over the company’s computer network.
Peculiarities of e-HRM:
The e-HRM business solution excels in the following capabilities:
1. Modularity
2. The solution can be accessed and used in a web browser
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3. Security of data, protected levels of access to individual modules, records documents and their component parts
4. Parametric and customizability
5. Access to archived records and documents
6. User-friendly interface
7. Connectivity with the client’s existing information system (payroll accounting, ERP, attendance registration, document systems)
8. Multi-language support
Electronic Human Resource (e-HR) Perspective to Organizational Effectiveness
“e-HR refers to the broad access to human resources data, tools and transactions available directly on the web in most workplaces today. It describes the “net effect” of the explosion in web technologies and the dramatic impact this growth has had on the way employees now receive employment-related information through integrated self-service applications. It also includes the variety of new technologies available that help connect multiple systems, tools and databases, both inside and outside organizations” (Watson Wyatt Research Report – The Net Effect).
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Much has been written in the past several years about HR acting as a strategic partner. HR leaders have been told repeatedly that they must earn a “seat at the table” with top management in order to play a significant role in the development of organizational strategies and business success.
But, while many HR leaders have become active participants in strategy sessions occurring in boardrooms around the world, they are continually hindered by the need to think and act strategically, while still overseeing the time-consuming administrative aspects of day-to-day HR. It is clear that HR must find a way to relieve itself of administrative burdens (without abdicating their administrative role) in order to maximize its contribution to business strategy.
Technological change is a key driver for HR transformation, providing the foundation to support HR’s growing strategic focus. In particular, Web and Internet technologies have already given workers direct access to each other, to HR, and to business information with such ease and intelligence that every worker can contribute more directly to business results.
Although great strides have been made in recent years to use technology to simplify HR, technology until now offered only partial solutions to HR’s challenges. Consider the employee self-service model that evolved throughout the 1990’s. Developed in part due to employee and manager complaints about the impersonal and inefficient services offered by outsourced solutions of the early 1990’s, self-service has proven to be extraordinarily popular.
E-Human Resource Management (e-HRM) – 16 Important Aspects: E-Job Design and Job Analysis, E-Human Resource Planning, E-Recruitment and a Few Others
Thus, electronic aspect of E-business processes transmits the information in the original form and/or in the processed form to all the parties concerned.
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Electronic aspect is embodied in all the areas of HRM where there is transmission of information from one employee to another and from one client to the another, both internally and in the processed form is highly essential in most of the functions and activities of HRM.
Aspect # 1. E-Job Design and Job Analysis:
Most of the organisations tended towards ‘dejobbing’ environment and introduced alternative work-schedules, flexi-work, broad job banding, employee empowerment, multiskilling etc.
HR Manager’s job under this environment is identifying the skill requirements of the company, identifying the employee skills and matching these two. HR Managers do these activities through ‘listing skills’ and ‘competency mapping’. 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/activity. Thus, the e-HRM plays a vital role in a de-jobbed environment.
Aspect # 2. E-Human Resource Planning:
Computer programmes are developed and used extensively for the purpose of planning human resource requirements based on the data and information. These programmes indicate the number of employees required at each level for each category of the jobs based on sales and production forecasts.
“Human Resource Planning,” the recent trends in this function are outsourcing and contingency clause. The extranet which connects the intranets of different organisations identifies the suitable people from other organisations for the purpose of outsourcing and also to draw them where and when contingency situations arise.
Aspect # 3. E-Recruitment/Applicant Tracking:
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Organisations advertise the job vacancies through the World Wide Web (www) or send the information directly to the most competent people through e-mail. The job seekers send their applications through e-mail using the internet. Alternatively, job seekers place their CVs in the World Wide Web through various sites like hot jobs.com and jobs.com, which can be drawn by the prospective employers depending upon their requirements.
E-recruitment manages job descriptions and job vacancies, search for candidates and the interview process. It is also referred to as an applicant-tracking system; this is a web-based application that enables the electronic handling of organizational employment needs. These activities include posting job advertisement on web sites to stimulate and attract candidates, known as job boards.
Job boards allow candidates to apply on-line and the candidates’ data are stored on a database that allows searching, screening and filtering of applications. The application tracking system shortlists the candidates and arranges for interview and recruitment related activities.
E-recruitment maintains profiles, searches for and refers jobs to colleagues and follows the recruitment process. It integrates resume extraction capabilities using the Magnaware/Mohomine extraction engine to search for potential candidates. It uses event-driven applicant tracking and manages positions on multiple external websites. E- recruitment/applicant tracking systems reduce administrative tasks, cost and time required to perform recruitment activities.
Thus, e-recruitment carry out:
i. Storage of applicants’ details
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ii. Retrieval and modification of those details
iii. Matching CV to job specifications and short listings
iv. Link with internet recruitment processes
v. Letter-writing, acknowledgement, short listing intimation, call for interview, offers and rejections
vi. Management reports, analysis of response to media etc.
Advantages of e-recruitment include:
i. A click on the mouse presents 240,000 job sites to the candidate;
ii. It reduces the cost by 95 per cent of the traditional recruitment;
iii. It reduces the time from normal 43 days of traditional recruitment to just a few days;
iv. It presents the list of job opportunities to the candidate when he submits details of his/ her skill set;
v. It shortlists the candidates by matching the candidate’s qualifications, skills etc., with those of skills and the right competencies inbuilt in the software;
vi. It also prepares interview schedules and communicates the same to the candidates;
vii. It streamlines the entire recruitment process for a given time and unlimited job requirements; and
viii. The number of people required for handling of applications are reduced drastically.
In view of these advantages, a number of employers around the world recruit the people using Internet.
Aspect # 4. E-Selection:
E-selection has become popular with the conduct of various tests through on-line, contacting the candidates through e-mail and conducting the preliminary interviews and final interview through audio-conferencing and video-conferencing. Further, the employers get the reference letters/ opinions from the referees through e-mail.
i. The candidate need not move from his place to take the written test, preliminary interview, provide additional information and final interview. Thus, it eliminates inconveniences, reduces cost and time required to conduct the selection process;
ii. It reduces the time required for other selection techniques;
iii. It drastically reduces the overall cost of selection process. However, there are certain limitations of e-selection.
i. It cannot operate certain selection-tests like psychological tests;
ii. Mechanical defects in transmitting information reduce the efficiency of selection techniques; and
iii. Judgement based on the e-selection process cannot be as perfect as traditional process.
Aspect # 5. E-Performance Management:
Several software packages are developed to measure employee performance and offer suggestions for improvement of employee performance. Many employers tend towards using these software packages and computerize the employee performance appraisal systems.
The software on employee performance appraisal provides a number of statements and sub-statements on each of the performance categories. The appraiser selects and clicks the appropriate rating for each statement. The system generates a detailed report, by the time the appraiser has moved all the performance categories and sub-factors. This report can be modified, comments can be added or deleted by the appraiser and a final report can be prepared by the manager.
Further, organisations use computer networks, sophisticated telephone systems, and video equipment to monitor and record the employee work activities.
Advantages of E-Performance Management are:
i. Managers can manage more number of employees with less effort;
ii. Appraising performance can be done in less time; and
iii. Employees can also know the areas/categories of appraisal, ratings of appraisal
Aspect # 6. E-Training and Development:
Companies started providing on-line training and on-line executive development. Employees learn various skills by staying at the place of their work. Participants complete course work from wherever they have access to computer and internet.
E-learning via intranet/internet is now a global phenomenon and is central to training and development in many companies.
E-learning represents the total category of technology-based learning while on-line learning is synonymous with web based learning. The term e-learning covers a wide set of applications and processes, including computer-based learning, web-based learning, virtual classrooms and digital collaboration.
E-learning is enabled by the delivery of content via all electronic media, including the internet, intranets, extranets, satellite broadcast, audio/video tape, interactive TV and CD-ROM
The content of various training and executive development programmes are placed on the internet/ intranet and the trainees are supplied with the audio/video tapes and CD-ROM. The trainees move on to the programmes relevant for their skill development based on training needs. They go through the content, which is modeled based on the interactive sessions and acquire the necessary skills.
E- Training provides a complete, scalable and open infrastructure that allows organizations to manage, deliver, and track employee training participation in on-line or classroom-based environments. Trainees interact with content and! or trainers at their own pace. Managers set the business flow from order processing to delivery and performance management to training output automatically. E-training systems deploy content to global learners, makes use of mixed media and multiple learning modalities.
They also create learning paths, establish multiple discrete sites on a single instance of the application, define competencies attained by trainees, and update the trainees’ competency profiles. It aims to ensure that HRM provides the right resources, competent and experienced trainers, and consolidate training initiatives on a scalable and cost effective basis. In addition, it aims to measure training effectiveness.
E-training, provides learning opportunities not only to employees, but to customers and all other stakeholders by providing one-stop administration, automate catalogue distribution and enrolment, and collaborative sites with other strategic partners.
Thus, E-Training and Development Provides for:
i. Storing e-learning modules and enables trainee to select appropriate modules to meet specific learning needs
ii. Analysing training recommendations based on performance review reports and training needs
iii. Arranging for off-the-job courses
iv. Informing employees about training arrangements
v. Handling correspondence about training details
vi. Generating instructions, and
vii. Storing progress reports.
Advantages of E-Training and Development:
Advantages of E-Training and Development:
i. E-training helps the employees specify corporate competencies and build up knowledge management strategies;
ii. The HR department gets the IT department to its side; and
iii. Training material will be available more widely.
Essential Conditions for E-Training and Development:
E-training would be effective, if the following conditions are present:
i. Facility of interaction with the tutor;
ii. Facility of interaction with the peers;
iii. Opportunity for differential learning;
iv. Availability of training material readily; and
v. Motivating the trainees to learn.
Aspect # 7. E-Compensation Management:
Almost all the organisations started using computers for salary fixation, salary payment, salary calculations, fixation and calculation of various allowances, fixation and calculation of various employee benefits, welfare measures and fringe benefits.
Aspect # 8. E-Payroll:
E-Payroll models automatically collect data regarding employee attendance and work record for purposes of evaluating work performance, they calculate various deductions including tax, and generate periodic pay cheques and tax reports. Payroll modules in turn send data and accounting information to the general ledger for posting and subsequent operations as they frequently integrate e-payroll with e-finance management.
Payroll systems can define standard rules for automatically assigning and changing employee salary by using simple formulas. They are able to control processing rules and calculations using fast formula and conditional logic for complex cases. They can manage global compensation with one application by implementing a core payroll engine and installing local extensions to add the necessary functionality, reporting and process for individual countries.
E-payroll is able to process from data entry simultaneously fully reconciled results and multiple employee groups. By preparing paperless online pay-slips, the system is able to reduce administrative costs and time for the total operations. Employees too can view their exclusive data and get personalized reports.
Aspect # 9. E-Benefits:
E-benefit administration models enable HR professionals to track and administer diverse and complex benefit plans and employee benefit programs which may involve housing, transportation, medical and health care, insurance, pension, profit sharing, and stock option benefits. Such modules, through internet-based automation, can enable HR to improve benefits support and analysis whilst reducing time and costs involved in the administration, whilst increasing the consistency of decisions on compliance issues.
Aspect # 10. E-HR Records:
Human resource records are created, maintained and updated with the help of computers easily and at a fast rate. Human resource records, either partially and fully, can be shifted or transferred from the branch/regional office to head office or from one department to another department through intranet/internet.
Aspect # 11. E-HR Information:
Human resource information is generated, maintained, processed and transmitted to the appropriate places or clients with the help of software with high speed and accuracy. In fact, this function of HRM is done completely, more accurately and perfectly with the help of computers, internet and intranet.
Aspect # 12. E-HR Audit:
The standard human resource practices or the desired human resource practices are fed into the computer. The data and information regarding the actual practices are also fed into the computer; the software automatically completes the human resource audit and produces the audit report. The human resource manager then can modify the report by deleting or adding any comments.
Aspect # 13. E-Self Service Human Resource:
E-self Service HR modules collect process and manage all other kinds of data and information, for example, employees’ demographic profiles and addresses, recruitment, selection, training, development, promotions, capabilities, skill mapping and compensation planning. Such a module would allow individual employees to update and use employee-specific information, personalized to an individual’s role, experience, work content, language and information needs. Thus, individual employees and managers are empowered to update information in order to streamline business processes, reduce costs, and errors, increase speed, and enhance service.
This module helps employees in managing everything from profiles including skills, resumes, contact details, self-appraisal data, bank data, learning, benefits and pay roll. It empowers managers to operate transfers, regarding, employee training enrolment, performance appraisals, competency mapping, career planning and development and terminations.
Aspect # 14. E-Time and Labour:
E-time and labour automates entire time and attendance record keeping process and operations through an automatically generated virtual time card. It provides an intuitive, web—based interface. The time and labour management module by integrating information technology and time and labour management practices collects and evaluates time and work information. This module provides broad flexibility in data collection methods, human resource distribution capabilities and data analysis, and helps in establishing organizational cost accounting capabilities.
This module allows entering time via web browser, mobile device and timecard. It defines rotation plans based on shifts and work plans, and employee mobility among departments or units. It supports policies for holidays, overtime, and rounding. It improves reporting, extracting, and processing with a single database of employee time-related information. This module is integrated automatically with other modules of human resource management like payroll, and benefits.
Aspect # 15. Employee Scheduling:
Employee scheduling matches the number of employees to business needs. The process of employee scheduling include, multi-skilling, the use of contract workers, human resource outsourcing, use of people working at home, twilight shifts, job sharing etc.
Employee scheduling deals with assessment of demand and supply of people, scheduling policies and possibilities, flexi-time, flexi-workloads, flexi-work and flexi-place of work.
Aspect # 16. Employee Profiling:
Employee profiling deals with matching of staff to workloads in order to ensure that the right numbers of people are available to meet fluctuations in activity levels over time.
Profiling models are used to:
i. Monitor and analyse employee utilisation
ii. Test the effects of moving some activities to different times of the year
iii. Monitor movements in expenditure on pay and benefits
iv. Forecast future employee requirements
v. Synchronise permanent and temporary employees and in-sourcing and outsourcing of employees
vi. Control employee budgets
vii. Skill inventories
Equal Opportunity Monitoring:
The system provides for:
i. Storing records about ethnic composition of workforce
ii. Analysing data on the distribution of gender, region, ethnic group, minorities, religion, age, job grade, occupation etc.
iii. Analysing the distribution by ethnic group and by job grade
iv. Analysing career progression by ethic group etc.
E-Human Resource Management (E-HRM) – Model
Venkateswaran et al. had proposed a model describing how e-HRM works in an organization.
e-HR Softwares:
By using Virgo, an organization can ensure that its business is supported by a business information systems platform that will evolve and change as the organization develops its business or respond to marketplace changes.
A. Virgo:
Virgo is designed from the ground up to support all products and services that clients may provide, and to provide whole-of-business reporting and online analysis. Virgo Recruitment is a comprehensive business solution for multi-facetted Recruitment and Consultancy Services Firms.
Virgo provides complete end-to- end, whole-of-business functionality to support everything from strategic discussions on pre-market diversification and Tender Response processing, through to pre-sales, order entry and processing, order fulfilment, payroll and invoicing, etc.
Furthermore, being based on web technologies Virgo fully supports remote users such as clients, candidates, mobile consultants, affiliates, etc.
Virgo integrates with the Accounting and Finance system of your choice, meaning that you do not need to change accounting system, and that your finance and accounting department can use the accounting system of choice.
Virgo Supports:
1. Project-based consulting, training, out-placement, management services, team-based consulting, etc.;
2. Temporary and contract placements across all industries and niche markets;
3. Shift-based placements across all industries and niche markets including nursing and health, human services, aged care, childcare, hospitality, retail, etc.;
4. Call centres and help-desk;
5. Permanent and Executive Search;
6. Miscellaneous items such as sale of licensed intellectual property, research documents, standard fixed-price services, etc.
Virgo Provides:
1. End-to-end, fully integrated order processing that spans all operational processes, as well financial reporting and operational controls;
2. Integrated Activity and Performance Management and Reporting;
3. Integrated Payroll and Accounting systems—either our offering, or your preferred products;
4. Multiple business entities with integrated support for divisions, departments, branches, teams, and projects supported by performance monitoring and exception-based control;
5. Inherited Skills and attributes recorded against clients, client divisions and branches, order types, job types, and personnel that are defined once and included automatically in the integrated Skills Search and Select processing;
6. Customizable workflows, business processes, security, etc.;
7. Automated notification of all events;
8. Diary, Business Development Schedules (call planning), etc.; Low-cost/no-cost enhancements that support your specific competitive.
B. Adrenalin:
Adrenalin, one of India’s most chosen human capital management software, aids the CEO of an organization in alignment, streamlining the organization vision with HR. The software empowers people to multiply their performance dramatically through a web-based software application.
Adrenalin transforms people and working, departments and mind-sets, productivity and profits. Business leaders can now seamlessly align human resources with business results. It facilitates people and processes to work seamlessly and maximize productivity. Performance and efficiency can now be showcased more effectively with the help of Adrenalin. Adrenalin is developed and marketed by Adrenalin eSystems Ltd., a group company of Polaris Software Lab Ltd.
Salient Benefits of Adrenalin:
1. Stimulates employee alignment
2. Creates a performance culture
3. Aids better planning, better decisions
4. Delivers significant cost savings
5. Improves administrative responsiveness and efficiency
6. Enables greater employee satisfaction, fuels organizational productivity
Adrenalin has been successfully implemented in several reputed Indian organizations like Hero Honda. Adrenalin provides the users with a good workflow system. The system has the flexibility to address business rules of various employee levels as well as departments. This gives our employees flexibility in their routine work. This was the comment made by Mr. Umesh Malhotra, Manager-IT, Hero Honda Motors.
The benefits acclaimed by Hero Honda by using Adrenalin were as follows:
1. The online HR, administrative, claim and reimbursement processes have reduced the process time and follow up. Accuracy of data has also helped in quickening processes.
2. With processes going online, the company has moved closer being a paperless office.
3. The system provided flexibility to employees, while bridging the gap between distributed teams.
4. With the Travel and Expense module, status of requests and approvals can easily be available and the team can focus on their work instead of worrying about the expenses.
5. Increased profitability, by providing a high value for money solution, streamlining all financial and administrative tasks which has freed up time for productive work.
E-Human Resource Management (e-HRM) – Implications for HRM Practices
1. Analysis and design of work- Employees in geographically dispersed locations can work together in virtual teams using videos, e-mail, and the internet
2. Recruiting – Post job opening online, candidate can apply for job online.
3. Training – Online learning can bring training to employees anywhere, anytime.
4. Selection – Online simulations including tests, videos and e-mail, can measure job candidates’ ability to deal with real-life business challenges.
5. Compensation and benefits – Employees can view salary and bonus information and seek information about and enroll in benefit plans.
Privacy is an important issue in e-HRM. A great deal of HR information is confidential and not suitable for posting on a Web site for everyone to see. One solution is to set up e-HRM on an intranet, which is a network that uses Internet tools but limits access to authorized users in the organization.
However, to better draw on the Internet’s potential, organizations are increasingly replacing intranets with Web portals (Web sites designed to serve as a gateway to the Internet, highlighting links to relevant information). Whether a company uses an intranet or a Web portal, it must ensure that it has sufficient security measures in place to protect employees’ privacy.