International Journal of Humanities and Social Science Invention (IJHSSI)

International Journal of Humanities and Social Science Invention
ISSN (Online): 2319 – 7722, ISSN (Print): 2319 – 7714
www.ijhssi.org Volume 2 Issue 11 ǁ November. 2013ǁ PP.01-09

Electronic Human Resource Management
Hani Abdulhafedh Thabit Yahya, Eman Salim Abdalla Rashid Saho
Phd of philosophy in Management - Limkokwing University of Creative Technology-Malaysia

ABSTRACT: There are many outlines of the technology impact on the role of Human Resource Management
(HRM) that led many organizations to design their online web base and use the best practices in HR technology.
It will improve the quality of HRM and increase the company’s performance. This paper will discuss the
Electronic- Human Resource Management (E-HRM) based on a definition and an initial framework; the review
analyses, the used theories, the importance of using E-HRM, and the shape of the new HR department after
implementing it.

I. INTRODUCTION OF E-HRM
The word of E-HRM means using web-technology-based channels to implement HR strategies,
policies, and practices also usage information technology to perform activities in organizations. Moreover, Rack
Jack presented that E-HRM “is the process and transition of digitalized HR information.” Moreover, E-HRM
means the organization will use internet technology to administer and support HR functions (Voermans and van
Veldhoven, 2007). Further, Hansen and Deimler (2001) described E-HRM “is a system that integrated business
to employee and combined between online business such as employee interaction, search information, work
scheduling and community services such as balancing work and home life by allowing people to deal with
certain personal tasks at work, for example, discount deals and services through different companies.”
According to Jim B (2012) that E-HRM is integrated human-resource management with information technology
to help the human- resource to do their tasks; as a result, business will be more efficient and effective in costs
and productivity of the organization. Another reason for using E-HRM will support communication between
management, and employees also increase their satisfaction and facilitate difficult technical tasks. However, EHRM will not substitute traditional HRM, but it will develop HR department by permitting the business to
streamline detailed duties and prevent it from doing more key work, for instance; E-HRM includes software
dedicated to payroll issues, which traditionally fall within HR department dominant also this program will
abbreviate procedures for candidates to choose alternative jobs instead of open jobs, which would consume time
process. Another else E-HRM will liberate human resources employees to converge on strategic initiatives to
improve the overall health of a company. Further, Zaafar (2009) summarized that “E-HRM influences
traditional HR professionals to rethink and redefine policies, practices and their own jobs.” To sum up, there are
two aspects of E-HRM; first, technology will amalgamate people within organization in same location/place or
different branches or organizations or even countries. Second; information technology will be assistant HR
managers to complete their activities in partially or plenary pursuant to organization‟s strategy and purpose.
Frame (1)

II. MODEL OF E-HRM

Source: http://www.indianmba.com/Faculty_Column/FC555/fc555.html

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Purpose Significant
The purpose of Electronic Human Resource Management Research; is to understand the importance of
E-HRM that will increase the effective of human resource management through the use of its technologies with
the advance Information Technology (IT), E-commerce and E-business; also it will affect its system such erecruit, e-selection, e-compensation and so on.
It will also enable employees to update their personal information and communicate with their
employers. In contrast, human resource management is a foundation concept for employers to manage their
employees. It is a conventional method which was been developed in lately years to circumscribe merge and
combine an aspect from personal management, organizational behaviour, labour relation and industrial and so
on.
Different perspectives on various types of E-HRM
E-HRM is a foundation part of degeneration HR operations to management and employees. It impacted
slightly on costs and staff numbers. There are three kinds Of E-HRM, which are: Operational, Relational and
Transformational.
Operational is related with administrative functions such as payroll and employee personal data. It is
called administrative tasks such as modifying personnel data, keeping records, payroll, company procedures and
processes and so on. What snell et.al (2001) said that "regardless of the activities and their types is related with a
bout of 75% of the workload".Also Strohmeier viewed that functions such as e-learning, e-recruitment, and eselection to review efficiency and effectiveness of e-HRM, it would lead to decrease number of HR staff and
cost, release from administrative burden and develop speed of processes and line managers and employees
carried responsibilities from HR (Buckley et. al 2004). Furthermore, there is a choice between asking employees
to keep their own personal data up to date through an HR website or administrative force.
Rational which can be classified in to internal or external sources in HRM and it requires direct and
two way relationship among HR professionals. Moreover, Strohmeier defined relational is "interacting and
networking of different actors". Further, Bondarouk and Ruel (2006) declared that "business processes are
support by HR tools". Its activities has about 15% -30% of HR workloads as claimed by Snell et.al
(2001).Further, there is a choice between supporting recruitment and selection through a web based application
or using a paper based approach (advertisements, forms and letters).
Transformational: This is the highest level and most complex type of activities also it is the most
strategic with the same pace of the company's mission and vision. It is linked with strategic HR activities such
as knowledge management and strategic re-ordination.It is the fewest activities which has about 5%-15% of HR
workloads. In addition, it will develop in line with company's strategic choices through integrated set of web
based tools to create a change ready workforce.

III. BACKGROUND

Any organization can‟t dispense with human workers. Hence, there is a need of establishing human
resource management despite fluctuate changing in business world and technological invasion.
According to Laumer, Eckhardt, & Weitzel (2010) “the organization needs to recruit, find the best
person-job fit, retain talented employees and manage them.” Further, Stolt (2010) has claimed that “Human
Resource Management is essential for the success of any organization by managing people in either individual
or collective in planned and strategic techniques additionally, performing its functions such as human resource
planning, staffing, training, payment and so on." However, it is not exempt from being influenced by
technological infestation, which is led to create E-Human Resource Management system.
In1990, the personnel department shifted to Human Resource Management.HR role also shifted
beyond automated payroll and benefits transactions through Human Resource Information System (HRIS).
Because of HRIS failure to fulfil its duties, it led to stress return on investment of the HR function and its
programs while the roles of HRIS are operational efficiency, cost reduction and control.
After 1990,” technological advancement and the emergence of strategic HR had influenced most
organizations due to trend changes in economic, increase globalization and technological breakthroughs
(internet web base services) and dynamic competition. As a result, HR re-designed processes such as rightsizing of employee numbers, reducing layers of management, reducing bureaucracy, autonomous work teams
and outsourcing “as accorded by Kavanagah, M.P Thite M (2008).

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Moreover, Ulrich, D., Younger, J. & Brockbank, W. (2008) had argued thatthe beginning of the 21st
century, the goal of HR is creating value for stockholders such as employees have right set of competencies;
employees are committed to organization and communities in which organizations participate to have more
confidence in the organization‟s ability to deliver on its social responsibilities additionally; its functions are
measuring its impact on productivity, data mining and making decisions about talent. During this period, HR is
moving to talent management and recruiting, maintaining talented people personal data and information on a
personal network through wireless.” According to Florkowski, G. & Olivas-Luján, M.R. (2006), “most
companies used one of the following E-HRM technologies: HR functional applications, integrated HR suite
applications, interactive voice responses (IVR), HR intranet applications, Employee Self-Service (ESS) and
Manager Self-Service (MSS) portals, HR extranet applications or HR portals.”
Further, Stone, D.L (2005) is suggested that “technological innovation is played a leading part in EHRM such as self-service systems, interchangeable devices, cognitive software, nan-technology and the
convergence of the internet, digital TV and the wireless technology communication into a vibrant network like
YouTube, Face book, LinkedIn and so on.”
In addition, E-HRM is developed HRM with the help of technological tools in a fast and accurate way.
Doughty (2010) had declared that “there is plenty of HR systems, payroll, training administration, 360 degree
feedback, psychological testing and competency software tools operating in their own software features in the
HR software market that evidence had noted the failure of most organization to recognize that nearly all
software on the market today is at the basis level of e-HR.”
Moreover, Globetronics Multimedia Technology Sdn. Bhd.(2003) had proclaimed that” install System
Manager, HR Manager, Time Manager, Payroll Manager, and Report Manager will lead to success EHRM.”Large organizations use e-HR because it is qualified to collect, store, process and manipulate the large
amount of data inputs, reduce costs of maintaining human resource data and provide accurate information about
human resources anytime and anywhere.
Furthermore, Parasad (2003) had defined “HRIS is a computerized method of providing information
about human resources, their functioning, external factors relevant to managing human resources.” Moreover,
Kettley and Reiley (2003) said that “a computerized human resource information system is contented of a fully
merged organization wide-network of HR-related data, information, services, databases, tools and transactions.”
Technology enabled E-HR to introduce corporate intranets and web-enabled HRIS.
Moreover, Foster, Hawking and Stein (2004) had depicted that “the usage of the internet to the Human
Resource function E-HR had consolidated two elements of using of electronic media and operating participation
of employees in the process to help organization decrease its administration costs, improve employee
communication and satisfaction and provide real time access to information.”
On the other side,” E-HRM can be implemented by organizational democracy where the organization is
applying the democracy to design the method to process, support achieving its goals and impact community in
positive” as accorded by Sachidanand R. Kulkarni (2012). Also he concluded that” in organizational democracy,
most of the employers and employees participate in decision making, equally authorization in respect, opinion
expressing, leader in accomplishing objectives, and team up yields better results.”
E-HRM affects HRM functions to improve organizations and create healthy workplace, and
subsequently, successful organizational democracy.
Advantages and Disadvantages of E-HRM
Most of the democracy and technological companies execute E-HRM to reduce process and
administration costs, for example; it will construct a number of middleman HR managers (Lengnick-Hall &
Moritz, 2003). In addition, it will give quality; accurate and speed information also improves controlling HR
activities. Moreover, it will increase perfect strategic ordination of HRM and customer services. Further, it will
enhance HRM professionals and executive manager that need information to take decisions, manage his work
business and observe modulation. At the same it will enable employees to engage in the process and keep a path
pertinent through use Enterprise Resource Planning (ERP) systems that they can automate their process, also it
will compound their satisfaction (Barker & Frolick, 2003). Besides it, there are many benefits such as
progressive implementation, adaptability to any client, increase employees and organization‟s performance,
productivity also paperless office. On the other side, there are many challenges of E-HRM that faced by
managers to control their businesses which are following with solutions:

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Based in hypothesis relationship
IKEA Company needs marketing manager or assistant who is a sociable and communicative, these
kinds of abilities can't be measured through e-recruitment which may lead to select un-appropriate candidate.
Poor Segmentation of the market
Most companies faced inverse relation between quantity and quality of the candidate, for instance, if
there is increased number of applicants, on the contrast, there is decrease number of qualified which causes
increment the cost time o processing (Pearce & Tuten, 2001, Champan & Webster, 2003, Barber, 2006). Internet
provides broad access positions which causes having less qualified incurring losses for company. Further,
Pen.et.al had observed that most firms losses 59% due to poor segmentation, however, Suvankulov et.al. (2012)
had claimed that "the level of classification of contents in internet is advanced and found the relation domain but
the footprint of this problem".
In addition, Smith &Rupps (2004) had concluded that" e-recruitment causes high rate of employees
because they may interested in another position in another company which is freely accessible through internet".
Despite of the existing, which occurred by poor segmentation or reduction in time or cost for recruiting due to
the high number of applicants that need to be evaluated. Furthermore, there are challenges faced companies such
high fees implementation which data transparency. The best method to solve this problem is using third parties
platforms which advertise not costly.
Aligning the E-HRM system with the business requirements’
Enterprise Resource Planning (ERP) has varied applications, which affect management to control.
Managers should consider the ERP‟s stance on control to meet the business matters.
Hackers of the information
Outsiders or competitors have hacked company‟s information .Security and privacy E-HRM settings
are of considerable importance to candidates, businesses, and regulators. Security breaches of internet
transmissions and databases enable the unauthorized use of candidates‟ confidential information, for instance,
name, address, password, social security and credit card numbers and often result in identity theft and fraud.
Prior research acknowledges the risks to candidates‟ information privacy and misuse. Into realities which lead to
offset any convenience, time, and/or financial savings afforded to employees. The fact that a typical online
transaction entails third-party access to personal data may be a source of worry for some candidates and
employees. In addition, the sophistication of phishing and harming scams has increased and affects more
unsuspecting web surfers each year. Online candidates are unwilling to risk their confidential information,
encounter more risks than they do in face-to-face transactions. For this reasons, E-HR department should secure
candidates and employees information and ensure confidentiality also use a trusted third-party system in which
candidate and employee are made through a well-known intermediary, which authenticates the E-HR
department or employer as a result this enables both parties to be protected from misuse or fraudulent use of
identity data, and employees to be protected from non-alignment of the orders or misuse of their data. Moreover,
E-HR department or employer should use many strategies, including safe-site symbols and guarantees that help
to engender trust in the context, where candidates‟ unwillingness to risk their confidential information. In this
proper vendor selection is a critical condition to ensure confidentiality.
Successful e-HRM Adoption Depends on three kinds of factors
There are some factors had affected both capabilities of the organization and the realization of the
intended objectives to implement e-HRM which are divided into three categories:
Organizational Factors
It is related to the organization itself which success implementation of e-HRM such as following:
Size
Suppose that there are two companies would introduce a course through e-learning. Company (A) would train
1000 employees, as a result, it would decrease economies scale while Company (B) would instruct 50
employees which would raise cost (Strohmeirer). On the other hand, Stro & Kabst (2009) had found that "the
large size of organization, the more successful to adopt e-HRM" Further, Ball (2011) had recognized that "small
companies would get lower risk of Human Resource Information (HRIS) which it's used to acquire; store;
manipulate; analyze; retrieve and distribute information regarding an organization human resources (Kavanagh
et. al. 1990), the more positive relationship between the size of organization and
E-HRM". Moreover, Ruel et al (2004) had advised that "e-HRM is more attractive and suitable in large
companies' size than medium and small sized one".

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Age
Parry (2011) had searched more than 2000 firms across 12 countries through survey if there is relationship
between organization age and both the habit action and the level of e-HRM operations and he had found there is
no connection between them.
Industry
Strohmeire and Kabs t (2009) had found that the sector of a company which had variant tasks structures would
control e-HRM adoption.
Public/Private Organization
Strohmeire (2007) had noticed that" both public and private have comparable in IT practices while have
distinction in terms of the pattern of the system and the level of investment".
Organization Culture
Olivas – Lujan (2007) had said that "the role of organization cultural in the company is technology
transformation" Further, Pollitt (2006) had emphasized that "a company's internal culture may affect the success
or failure of e-HR system. For example, in Smart Building Company, their employees are recognizing that they
will lose their jobs if they don't improve their skills". On the other hand, some companies, their employees are
forcing themselves to adopt the new cultural atmosphere of their company by taking e-learning courses.
Actuarial Factors
It is associated to the employees which were supposed to link with the system. It is presented after
implantation of e-HRM. It has variance factors such as:
Perceive usefulness and ease of use
Perceive usefulness mention which a person believes that using particular framework would support
his/her job performance which leads to build positive use performance relationship, for instance, online
management of one's time would help an employee to become more productive, whereas perceive ease of use
points that a person believes that utilizing specific method would be independent from effort, to illustrate, in eHRM, the schedule is plain to aperture and to engage with employees. Further, Voremans and Veldhoven (2007)
had applied the Technology Acceptance Model in Phillips, they had remarked that using technology will
develop employee's performance usability and easy to work with them which will create an affirmative attitude
toward e-HRM system.
Demographic Characters
Voreman & Veldhoven had assumed that age, gender, education of employees in Phillips if it effects eHR adoption, the result had showed there is no relationship between them.
IT skills
Panayotopoulo et al (2007) had searched whether skills would promote the process of adoption, the
outcome had exhibited that if an organization is processed with the minimum skills enabled employees low
investment while if it's procedures with high skills qualified employees high placement.
External Factors
It is connected the environment to organization. It has two factors are:
National Business System
Companies should think about their share of completely new organizations which were being created to
reinvestment themselves in other countries depending on their Gross Domestic Production (GDP) because it will
affect the success of their national economy, for instance, a country which has low GDP, It will reverse the
success of e-HRM adoption and vice versa (Strohemeir & Kabst 2009)
Social Cultural Factors
Olivas- Lujan el at (2007) had noted that successful of e-recruiting depends in a country/ region which
people strongly prefer to have a face to face or through online. In addition, there are diverse degrees of
difficulties which an employer encounters due to social, cultural, contractual, institutional or in-structural norms.
To illustrate it, Saudi society doesn‟t accept woman to disclose her face mask or Emirate society doesn‟t accept
woman wearing clothing scandalous

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IV. FUNCTIONS OF E-HRM
E-Recruitment
According to Epstein (2003) that” internet has changed dramatically the way of recruitment for most
organizations and job seekers.” Further, Smith (2004) said that “E-recruitment is a non-traditional form of
recruiting process.” Moreover, Breaugh & Starke, (2000) both defined E-recruitment is “identified and attracted
employees by using the internet.” In addition, Galanaki, (2002) claimed that E-recruitment is “advertised and
outsourced job online.” Beyond it, the better technology and easier access, the more incremental of finding, the
best match for a given opening, the reduce application costs, the augmentation qualified job seekers also
improvement screening mechanisms and efforts (Freeman & Autor, 2002). Furthermore, passive and active job
seekers were played an important role in the recruitment market and employer firms. Caggiano (1999) & Borck
(2000) argued that “E-recruitment would not replace to recruit but it would innervate it to become more
successfully.” Cullen (2001) supported this view and declared that e-recruitment is not only stand-alone tool but
also merger overall recruiting and selection strategy.
E-Selection
It proceeds of varied tests through online and contact‟s candidate meanwhile email also makes an
interview by audio and video conferencing. It is the process of interviewing and evaluating candidates for a
specific job and selecting an individual for employment based on certain criteria by online. There are targets to
use e-selection as accorded by Kehoe, Dickter, Russell & Sacco, 2005 “e- selection will minimize cost and
employment human capital additionally enable organization‟s willingness and ability affordable also progressive
system to satisfy changing requirement and capitalize on improvements in technology and the science of
selection, and it will attract features of specialized and flexible system solution products available on the
market.”
E-Compensation
Compensation in traditional organization is based on client server or stand-alone PC system while ecompensation is a website that vests it to gather, store, manipulate, analyze, utilize, and distribute compensation
data and information (Dulebohn & Marler, 2005). It uses the internet to distribute compensation in electronically
in anywhere on the earth. It will increase the effectives adapt compensation procedures to confront challenges,
manage and maintain all aspects of equity in pay plan design, also align it with the strategic management of the
organization. Moreover, it will benefit HRM professionals in dynamic and antagonistic environment in
following:
1)

2)
3)
4)
5)
6)
7)

Simply on an as-needed basis without dependent on IT staffs and sophisticated it infrastructures to assess
access to critical compensation information, for example, knowledge management databases, best
practices inner and exterior, individual equity design and competitive information.
Support decision making by enabling round-the-clock availability of meaningful compensation
information to managers and employees company-wide.
Strength HRM professionals' productivity by streamlining bureaucratic tasks through the introduction of
workflow functionality and real-time information processing.
Develop budgets, model the impact of incentive systems, and ensure the fairness of salary allocation
decisions by giving data about salary, profit sharing, merit increasing, and stock options.
Improve employees‟ performance through linked with the e-performance management system.
Make sure that compensation systems have internal and external equity.
Heighten employees‟ satisfaction and retention level.

E-Performance Management
It is a software program that facilitates the completion of performance evaluations online. Cardy and
Miller (2005) argued that “technology had influenced a performance level also appraisal satisfaction through
contributed to performance management in measurement employees‟ performance by computer monitor, for
example; call center is collected data or number of keystrokes, error rates; Times during a task were data entry
job.” Further, Arnold Anderson who is e. How Contributor concluded that “performance appraisal is a way for a
manager to observe employees' behaviors and it is difficult for the manager to find time for one-on-one
appraisals due to the growth of business so it converted to e-performance appraisal.” Furthermore, he
enumerated the benefits such as
1)

It will save manager‟s time. To illustrate, instead of compiling report, the system will enable to collect
metric data throughout the year and use a formula which is created by the human resources department to
succeed with a performance evaluation number.

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2)

3)

4)
5)

It will increase workflow efficiently and give an accurate appraisal. To illustrate, instead of stacking
papers on a manager‟s desk, the manager can review through e- performance system in his free time then
moves on to the next person who needs to see him, which will improve employee‟s performance and
build promotion.
It will remove a personnel attraction between employee‟s and manager. To illustrate, instead of
discussing, which can be difficult to create a career plan for the employee or to work on a program to fix
the deficiencies in their performance, they will out fill an online form.
It can effortlessly integrate appraisal documents with talent and development activities such as 360degree feedback and talent management.
It is a „living document‟ so all parties can easily access the latest version at any time also facilitate
continuous development and appraisal year-round.

E- Training
It is a web site of training, and it is called e- learning. Marc Rosenberg (2001) accorded that “elearning is delivering an abroad array of solutions that support knowledge and performance through use of
internet technologies.” Furthermore, Allison Rossett (2001) confined that “providing training through host or
server computer that is connected to the World Wide Web.” Further, Clark Adrich (2004) claimed that “elearning will lower management cost, increase accurately of access and measure of employees, also scale
significant parts of a learning value chain that includes management and delivery through use of combination
processes computers and networks, additionally, advanced techniques such as simulations and communities of
practice and included customers and vendors as well.” In addition, Victor Jeurissen, who is a global practice
leader for IBM Management Development Solutions declared that” e- learning will provide new skills and
experience through innovative technologies and transform learning models as well it is a collaboration of
information, interaction, collaboration, and in-person. On the other hand, there are great benefits that a company
can gain from using e- learning that it will save company‟s time and energy with relative ease because it can
give to just one or to a group of employees. Moreover, it will provide quality courses such as leadership and
other, which meet an employee's requirements to develop him/them. Further, it will motivate employees and
adept at handling any situation, as well as improve work quality. Besides, it will make large group of employees
from different locations and countries in their workstation, which will provide worthwhile information through
emails, interactive websites as well as CDs, videos and so on. Further employees can expand their qualifications
by enrolling in online universities as well as continue their present jobs mostly, the company sponsors their
training.
Frame Organization with e-HRM
Frame e-HRM is a major success for any organization to acquire a qualities and reliable services for
their managers and employees. Further, e-HRM is a conception of Implementation Support System (ISS) to
innervate Human Resource Management (HRM) to fulfill its activities and tasks such as taking decisions, recruit
a convenient person in a right time and give appurtenant duties and adapt use new technological skills.
Moreover, e-HRM is a manner of thinking about executing HRM strategies, policies, and occupations which
will lead to accomplish its ambitions and ameliorate HR orientation also clients focus and contentment
additionally super add efficiency farther lessen cost. Beside it, e-HRM is analyzed all the assignments and HR
agencies, described in details how mission is accomplished with its manual and mental actions and how its
element duration, frequency, allocation, complexity, environment conditions, and any other unique factors to
perform job. Beyond it, e-HRM is designed exercises which adequate an employee's skills, experience and
knowledge. Above and over, e-HRM would let the worker to be more creative, self-directed and self-controlled
than their present jobs demands also perform in their abilities. It is created limpid environment because there are
no emotions involve and hence; nobody could blame e-HRM for partiality unlike HRM, which may have
discrimination or subject under human freaks. Further, when there is a shortage in supplying labour to market
due to individualization of society, augment educated citizens, and most employees aim to improve their career
paths, e-HRM is supported those tools to development. To sum up, there are many of the areas that e-HRM can
implement in an organization and improve their processes also advance HRM functions. It has a more fullgrown stage within organizational life; however, scientific proof of these advantages is not clear and needs more
researchers to answer the question, whether e-HRM contributes to HRM effectiveness.

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Conclusion
Electronic human resource management is fundamental prosperous for any organization. It is framework
that bands together human resource management with acquaintance technology to assess the human resource to
perform their tasks which produce's the business to become more efficacious and operative also it will promote
the relationship employees and online business such as employee interaction and seeking initiation. There are
many reasons to use e-HRM that it will facilitate complex technical functions, increase employees satisfaction,
decrease process and administrative costs. Beyond it can get various benefits such paperless and liberal
applications. However, e-HRM is not subrogating traditional HRM but it will improve HR department activities.
It has three sorts which are operational, relational and transformational. According to Kulkarni (2012) that "eHRM can be found in democratic organization that enabled employers and employees to partake in decision
making as teams and replenish targets. It plays diversified roles such as E-recruitment, E-selection, Ecompensation, E-performance Management and E-training. There are three factors had influenced organization
to implement E-HRM which are first, organizational such size, industry and culture. Second factor is actuarial
which has different elements such as perceive usefulness and ease of use, demographic characters and IT skills.
Third factor is external which affected by three operators are national business system, social cultural and
facilitating conditions.

Recommendation
Despite the importance of E-HRM, most organizations neglect it due to its complex challenges such as high
cost of enforcement and difficult to recognize the benefits, also it is hardness to define the activities and
functions additionally learn using it, in my opinion, it needs further research and deal with professional agencies
and third parties also follow with the latest technology in human resource management.

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