Project Work

1. “A STUDY ON EFFECTIVENESS OF e-HRM”
“A STUDY ON EFFECTIVENESS OF ELECTRONIC
HUMAN RESOURCE MANAGEMENT (e-HRM) AT
LARSEN & TOUBRO (L&T), RANOLI”
RESEARCH GUIDE: RESEARCHER:
MR. RAJENDRA PARMAR MR. CHINTAN P. MODI
STUDENT ID: 1111005
EXAM NO:
31st
MARCH - 2013

2. “A STUDY ON EFFECTIVENESS OF e-HRM”
“A STUDY ON EFFECTIVENESS OF ELECTRONIC
HUMAN RESOURCE MANAGEMENT (e-HRM) AT
LARSEN & TOUBRO (L&T), RANOLI”
A
RESEARCH DISSERTATION
SUBMITTED TO
SHREE J. M. PATEL INSTITUTE OF SOCIAL, ANAND
AFFILIATED TO
SARDAR PATEL UNIVERSITY
VALLABH VIDHYANAGAR, ANAND
FOR THE DEGREE OF
MASTER OF HUMAN RESOURCE MANAGEMENT
RESEARCH GUIDE: RESEARCHER:
MR. RAJENDRA PARMAR MR. CHINTAN P. MODI
STUDENT ID: 1111005
EXAM NO:
31st
MARCH - 2013

3. Preface I
PREFACE
Human Resources (HR) departments play a critical role in contributing to the overall
productivity and strength of an organization; as HR helps to build a stronger
workforce through better selection, recruitment, training, compensation, Performance
with the help of e-HRM. To improve employee and organizational efficiency and
contribute to the organization’s bottom line, many human resources organizations are
transforming to an e-HR business model, moving traditional HR tasks, tools and
processes into internal intranets or the Internet via portal. Organizations are using
e-HRM to solutions to make automate tasks and streamline, workflow, and improve
the efficiency of the workforce by providing self-service tools, training and
information.
The e-HRM is importance in way of access to variety of learning resources,
immediacy to information, anytime learning, collaborative learning, multimedia
approach, authentic and up to date information, access to online libraries/documents,
training for different subjects and made it interesting, documentation data storage,
access to the source of information, access to open resource for selected person,
reduces time on many routine tasks and Multiple communication channels-e-mail,
chat, forum, blogs, video calling etc. By automating processes of e-HRM can better
align itself with the business and organizational objectives of the enterprise and focus
on higher value of business services and employee needs, such as training and
development.
This executive summary share how e-HRM Solve problems of HR and software
provides the framework and tools for automating human resources processes with a
single point of access to people, processes and applications, human resources
organizations can deliver self-service support to employees, automate processes and
manage the complexity of administering benefits, and focus on developing and
delivering new productivity-enhancing services to increase the overall efficiency and
productivity of the business.
Chintankumar P. Modi

4. Acknowledgement II
ACKNOWLEDGEMENT
Completion of any task small or big isn’t possible without the support and wishes of
many people, who are of important in my life. Throughout the completion of this
study, there are many people who have directed me, supported me and encouraged me
to contribute my best to the study. This study work also had support from many hands
and above all the blessings of my parents.
I express my gratitude to my research guide Mr. Rajendra Parmar who has been
constant source of inspiration and guidance. Throughout my research study the work
has a future of undergoing an inspection and I have an opportunity to learn under his
guidance.
I express my sincere gratitude toward to Mr. Sanjay Suthar (Dy. General Manager
of L&T. at Ranoli) for allowing me permission for undertakes this project. I am
extremely thankful to Mr. Amit Vaishnav (officer, IR and Personnel of L&T. at
Ranoli) for his support and guidance. I am sincerely thankful to all the respondents for
their co-operation to make this study possible.
I express my heartfelt gratitude to Mr. Bipinchandra P. Patel (Vakil) (President of
APMS) and Mr. Parth B. Patel (CEO of APMS) for giving me an Admission in
Shree J. M. Patel Institute of Social Work, Anand and resourceful educational
atmosphere in the campus; I am also sincerely thankful to Mr. Dipak Mackvana, I/c,
Principal of Shree J. M. Patel Institute of Social Work, Anand who has provided me
the necessary help and facilities to make the study easier. I am thankful to Miss.
Manisha Parmar, Vice Principal of Shree J. M. Patel Institute of Social Work,
Anand for her support and encouragement.
I would also like to acknowledge with thanks, the support received from the all
faculties of BSW, MSW and MHRM, who have been helpful for successful
completion of the project. I also extend my thanks to my family and friends for their
constant moral support and encouragement throughout my research.
Chintankumar P. Modi
Date: 31st
March 2013
Place: Anand

5. Contents III
CONTENTS
Sr. No. Chapter Page No.
* Preface I
* Acknowledgement II
* List of Table IV
* List of Chart VIII
* List of Abbreviations X
* Index XI
1. Introduction 01
2. Review of Literature 40
3. Research Setting 51
4. Research Methodology 62
5. Data analysis and Interpretation 66
6. Findings, Conclusion and Suggestion 123
* Reference and Bibliography 139
* Appendix (Questionnaire) 141

6. List of Tables IV
LIST OF TABLES
Table
No.
Title/Topic
Page
No.
1.8 Implication of e-HR. 11
1.18 Expected benefits of using e-tools for HRM practices. 22
1.18C e-selection Decision points. 29
1.18D Advantages and Disadvantages of e-learning. 32
5A Showing age of respondents. 66
5B Showing gender of the respondents. 67
5C Showing department of the respondents. 68
5D Showing educational qualification of the respondents. 69
5E Showing work experience of respondents with L&T. 70
5.1
Showing that working with e-HRM is clear and understandable to
employees.
71
5.2 Showing that the e-HRM reduces time and overhead costs. 72
5.3
Showing that the implementation of e-HRM has enhanced the
efficiency of administration and amplified productivity.
73
5.4
Showing that the e-HRM works towards forecasting HR needs
and reducing the workload of people management.
74
5.5
Showing that the e-HRM has clearly defined the system of self-
service update of personal details.
75
5.6
Showing that the implementation of e-HRM has improved the
total quality of HR support to employees.
76
5.7
Showing that it is easy to obtain management information from
e-HRM and the data held within e-HRM were accurate.
77
5.8
Showing that the e-HRM process allows your company to
influence your investment in current systems.
78
5.9
Showing that the policies formulated under e-HRM were easy to
comprehend, trustworthy and user friendly.
79
5.10
Showing that the e-HRM has reduced the time and effort for
preparing the job description and job specification.
80

7. List of Tables V
5.11
Showing that the e-recruitment process operates with the need to
match employee profile with vacant positions in the organization.
81
5.12
Showing that the e-recruitment has implemented recruitment
through chat rooms, fairs, networking were effective.
82
5.13
Showing that the e-recruitment process, recruit staff in ways
consistent with policy.
83
5.14
Showing that the e-HRM makes initiatives to identify the
recruitment need and arrive at the recruitment decision.
84
5.15
Showing that the pre-selection stage, interviewing and other
assessment activities done via e-HRM process were effective.
85
5.16
Showing that the induction meetings held by the e-HRM were
efficient and also determines local induction requirements.
86
5.17
Showing that the use of e-induction has increased the efficiency
level of the employees.
87
5.18
Showing that the e-HRM has clearly defined the automated
employment contract offer.
88
5.19
Showing that the candidate application maintained and recorded
online has made the applicant tracking system easily available.
89
5.20
Showing that the wage and salary administration has proved
effective in the e-HRM.
90
5.21
Showing that the Pay cheques reach at time to the employees
after implementing e-HRM process.
91
5.22
Showing that the Pay structure has been clearly defined in the
e-HRM.
92
5.23
Showing that the recording of employee absence, vacation,
sickness etc. via e-HRM affects the pay roll system.
93
5.24
Showing that the e-HRM process has made provisions for
employees to enroll for flexible benefits administration.
94
5.25
Showing that the compensation framework implemented by the e-
HRM allows calculating incentives and commissions for the
employees online.
95
5.26
Showing that the e-compensation and e-Performance help to
calculate performance related pay.
96

8. List of Tables VI
5.27
Showing that the e-HRM has been able to select and build high
level performing teams.
97
5.28
Showing that the e-performance management work to shape the
personnel’s long term development plan.
98
5.29
Showing that the e-HRM enables to identify and encourage the
individual talents and help them to raise their performance.
99
5.30
Showing that the e-HRM participates in realizing organizational
values and culture changes made within the organization.
100
5.31
Showing that the e-HRM process has been responsible enough for
writing role definitions.
101
5.32
Showing that the e-performance management motivates
employees and makes them feel part of the organization.
102
5.33
Showing that the e-HRM applies long term HR policies to
improve organizational performances.
103
5.34
Showing that the e-learning support employees to keep their
knowledge and skills up to date.
104
5.35
Showing that the self-service of e-learning opportunities have
proved effective and efficient.
105
5.36
Showing that the Performance appraisal evaluation methods
followed by the e-HRM were effective.
106
5.37
Showing that the e-learning strategies have brought effective
changes in leadership development.
107
5.38
Showing that the e-HRM provides sufficient opportunities for
employees career planning and development.
108
5.39
Showing that training through e-HRM recommend people for
promotion and individual compensation awards.
109
5.40
Showing that the e-learning has rooted through-out the
organization.
110
5.41
Showing that the intranet delivered communication system makes
opportunity for respondents to participate in communication and
consultation activities.
111
5.42
Showing that the e-HRM process is a flexible system that will
meet the needs of all employees who have access to it.
112

9. List of Tables VII
5.43
Showing that the communication about e-HRM has been
informative and useful.
113
5.44
Showing that the e-HRM understands and follow grievance,
disciplinary and poor performance issues in a timely and
compliant manner.
114
5.45 Showing that the e-HRM evaluates the job satisfaction level. 115
5.46
Showing that the e-HRM provides consultation and negotiation
on proposed changes in working practices.
116
5.47
Showing that the e-HRM increases employee’s commitment with
the organization.
117
5.48
Showing that the e-HRM process ensures compliance with policy
and procedures.
118
5.49
Showing that the e-HRM provides high standards of safety,
counseling and welfare support to employees.
119
5.50
Showing that the e-HRM makes attempt to represent company
and promote the employment brand.
120
5.51
Showing that the e-HRM process allows the workers to
participate in the management decision.
121
5.52
Showing that the e-HRM manage in a fair way, without reference
to race, gender, disability etc.
122

10. List of Charts VIII
LIST OF CHARTS
Chart
No.
Title/Topic
Page
No.
5A Showing age of respondents. 66
5B Showing gender of the respondents. 67
5C Showing department of the respondents. 68
5D Showing educational qualification of the respondents. 69
5E Showing work experience of respondents with L&T. 70
5.1
Showing that working with e-HRM is clear and understandable
to employees.
71
5.2 Showing that the e-HRM reduces time and overhead costs. 72
5.4
Showing that the e-HRM works towards forecasting HR needs
and reducing the workload of people management.
74
5.10
Showing that the e-HRM has reduced the time and effort for
preparing the job description and job specification.
80
5.12
Showing that the e-recruitment has implemented recruitment
through chat rooms, fairs, networking were effective.
82
5.15
Showing that the pre-selection stage, interviewing and other
assessment activities done via e-HRM process were effective.
85
5.17
Showing that the use of e-induction has increased the efficiency
level of the employees.
87
5.20
Showing that the wage and salary administration has proved
effective in the e-HRM.
90

11. List of Charts IX
5.26
Showing that the e-compensation and e-Performance help to
calculate performance related pay.
96
5.28
Showing that the e-performance management work to shape the
personnel’s long term development plan.
98
5.34
Showing that the e-learning support employees to keep their
knowledge and skills up to date.
104
5.36
Showing that the Performance appraisal evaluation methods
followed by the e-HRM were effective.
106
5.38
Showing that the e-HRM provides sufficient opportunities for
employees career planning and development.
108
5.44
Showing that the e-HRM understands and follow grievance,
disciplinary and poor performance issues in a timely and
compliant manner.
114
5.45 Showing that the e-HRM evaluates the job satisfaction level. 115
5.47
Showing that the e-HRM increases employee’s commitment
with the organization.
117
5.50
Showing that the e-HRM makes attempt to represent company
and promote the employment brand.
120
5.51
Showing that the e-HRM process allows the workers to
participate in the management decision.
121

12. List of Abbreviations X
LIST OF ABBREVIATIONS
Sr. No. Abbreviation Full Form
1. e-HRM Electronic Human Resource Management
2. HRM Human Resource Management
3. IT Information Technology
4. e-HR Electronic Human Resource
5. CHRIS Computer based Human Resource Information systems
6. HRIS Human Resource Information Systems
7. LAN Local Area Network
8. WAN Wide Area Network
9. CD Compact Disc
10. ROI Return On Investment
11. ERP Enterprise Resource Planning
12. BPO Business Process Outsourcing
13. CRM Customer Relationship Management
14. CBT Computer Based Training
15. ESS Employee self service
16. IRCS Intelligent Character Recognition System

13. Index XI
INDEX
Sr.
No.
Title/Topic
Page
No.
1 INTRODUCTION
1.1 Overview of HRM. 1
1.2 Meaning of HRM. 1
1.3 Functions of HRM. 2
1.4 Definitions of HRM. 3
1.5 Introduction of e-HRM. 4
1.6 Meaning of e-HRM. 5
1.7 Definition of e-HRM. 6
1.8 Nature of e-HRM. 10
1.9 Types of e-HRM. 11
1.10 Objectives of e-HRM. 13
1.11 Scope of e-HRM. 13
1.12 Function of e-HRM. 14
1.13 Evaluation of e-HRM. 17
1.14 The State of e-HRM in an Organization. 18
1.15 Benefit of e-HRM. 18
1.16 Limitation of e-HRM. 20
1.17 Goals of e-HRM. 21
1.18 e-HRM Tools 21
1.18A e-Employee Profile 23
1.18B e-Recruitment 24
1.18C e-Selection 27
1.18D e-Learning 29
1.18E e-Training 33
1.18F e-Performance management 33
1.18G e-Compensation 34
1.18H Other Important aspects of e-HRM 35

14. Index XII
1.19 Implementation of e-HRM 36
1.20 Challenges of e-HRM in Software Organization 37
1.21 The Challenges of e-HRM 38
2 REVIEW OF LITERATURE 40
3 RESEARCH SETTING 51
3.1 About L&T 51
3.2 History of L&T 52
3.3 Vision, Mission and Values of L&T 53
3.4 L&T at a Glance 54
3.5 Leadership Team 54
3.6 Office Timing 55
3.7 I Cared guideline 55
3.8 Attendance 55
3.9 Refreshments and Meals 55
3.10 Get Connected 55
3.11 Leave guidelines 56
3.12 Code of conduct 58
3.13 Respects for Individuals 58
3.14 Sharing of Official Information 58
3.15 Use of Company Assets 59
3.16 Working Environment 59
3.17 Safety, Health & Environment 59
3.18 Prohibited Items 59
3.19 Gift Policy 59
3.20 Security 59
3.21 Dress Code 60
3.22 Change of Residential Address 60
3.23 Protection of Women at Workplace 60
3.24 Facilities 61
3.25 People Initiatives 61

15. Index XIII
4 RESEARCH METHODOLOGY 62
4.1 Title of the study 62
4.2 Sub Title 62
4.3 Importance of the study 62
4.4 Objective of the study 62
4.5 Research Design 63
4.6 Universe 63
4.7 Sampling Method/Sampling Technique 63
4.8 Sample Size 63
4.9 Tools of Data Collection 63
4.10 Reference Period 64
4.11 Limitation of the Study 64
4.12 Operational Definition 64
4.13 Presentation of the study 65
5 DATA ANALYSIS AND INTERPRETATION 66
6 FINDING, CONCLUSION AND SUGGESTIONS 123

16. e-HRM

17. Introduction 1
CHAPTER I
INTRODUCTION
1.1 Overview of Human Resource Management
Behind production of every goods and service there is human mind, effort and time
invested. Without human being no product or service can be produced. Human being
is the fundamental resource for making anything. Today many experts claim that
machines and technology are replacing human resource and minimizing their
importance. But in fact machines and technology are build by the human, there has
been continuous pressing need for talented, skilled and qualified professionals to
further improve machines and technology.
1.2 Meaning of Human Resource Management
Human Resource Management is the process of recruitment, selection of employee,
providing proper orientation and induction, providing proper training and the
developing skills, assessment of employee (performance of appraisal), providing
proper compensation and benefits, motivating, maintaining proper relations with
labour and with trade unions, maintaining employee’s safety, welfare and health by
complying with labour laws of concern state or country.
"You must treat your employees with respect and dignity because in the most
automated factory in the world, you need the power of human mind. That is
what brings in innovation. If you want high quality minds to work for you,
then you must protect the respect and dignity.”
- Mr. N.R. Narayana Murthy
(Indian Business and Co-founder of Infosys)
Altogether, Human Resource Management is the process of proper and maximizes
utilization of available limited skilled workforce. The core purpose of the human
resource management is to make efficient use of existing human resource in the
organization. The Best example at present situation is; construction industry has been
facing serious shortage of skilled workforce.
Every organization’s desire is to have skilled and competent people to make their
organization more effective than their competitors.

18. Introduction 2
Humans are very important assets for the organization rather than land and buildings,
without employees (humans) no activity in the organization can be done. Machines
are meant to produce more goods with good quality but they should get operated by
the human only.
For any organization to function effectively, it must have resource of men (Human
Resource), money, materials and machinery. The resources by themselves cannot
fulfill the objectives of an organization, they need to be collected, co-ordinate and
utilized through human resources. And, the effective management of human resources
is also vital. Hence, Human Resource Management (HRM) has emerged as a major
function in organizations. Human Resource Management is the organizational
function that deals with issues related to people such as compensation, hiring,
performance management, organization development, safety, wellness, benefits,
employee motivation, communication, administration, and training.
The administrative discipline of hiring and developing employees so that they become
more valuable to the organization;
1.3 Functions of HRM
The functions of Human resource Management are;
 Job Design (JD)
 Job Analysis
 Human Resource Planning (HRP)
 Recruitment
 Selection
 Hiring
 Induction
 Performance Evaluation
 Compensation Management
 Training and Development

19. Introduction 3
 Employee Movements
 Welfare Administration
 Health and safety Administration
 Discipline Administration
 Grievance Handling
 Labour Relations
 Exit Policy
1.4 Definitions of HRM
Many great scholars had defined human resource management in different ways and
with different words, but the core meaning of the human resource management deals
with how to manage people or employees in the organization.
Edwin Flippo defines Human resource management (HRM) as “planning,
organizing, directing, controlling of procurement, development, compensation,
integration, maintenance and separation of human resources to the end that individual,
organizational and social objectives are achieved.”
The National Institute of Personal Management (NIPM) of India has defined
human resources – personal management as “that part of management which is
concerned with people at work and with their relationship within an enterprise. Its aim
is to bring together and develop into an effective organization of the men and women
who make up enterprise and having regard for the well – being of the individuals and
of working groups, to enable them to make their best contribution to its Success.”
According to Decenzo and Robbins “HRM is concerned with the people dimension
in management” Since every organization is made up of people, acquiring their
services, developing their skills, motivating them to higher levels of performance and
ensuring that they continue to maintain their commitment to the organization is
essential to achieve organsational objectives. This is true, regardless of the type of
organization – government, business, education, health or social action”.

20. Introduction 4
1.5 Introduction of e-HRM
The processing and transmission of digitalized HR information is called
electronic human resource management (e-HRM). e-HRM is the application of IT
for HR practices which enables easy interactions within employee and employers. It
stores information regarding payroll, employee personal data, performance
management, training, recruitment and strategic orientation. Information technology
is changing the way HR departments handle record keeping and information sharing.
It decreases the paperwork substantially and allows easy access to voluminous data.
The employee can also keep track of his/her achievements without having to go
through litigious procedures. It uses intranet or other web technology channels. It can
also be used for implementation of different HR strategies. The authorization of
different HR functions can be distributed through e-HRM.
Competitive business environments have compelled the organizations to think
speedily to innovate and excel for their survival. Technology advancement is one of
the powerful driving forces. It has reshaped the way we communicate, live, work and
also the way a business is conducted. Corporations need to shift from physical
technology to information technology, from capital centered economy to human
centered economy, and further from conflict to cooperative working relationships.
Since many years now, information technology seems to be affecting individuals and
organizations communication and behaviors.
The change in Information Technology is faster than any other processes in the
organization. One of the major hurdles which the HR department needs to cross is the
changing technological environment. The IT possibilities for HRM are endless; in
principle all HR processes can be supported by IT. Computers have simplified the
task of analyzing vast amounts of data and they can be invaluable aids in HR
management, from payroll processing to record retention. With computer hardware,
software and databases, organization can keep records and information better as well
as retrieve them with greater ease.
e-HRM is the relatively new term for this IT supported HRM, especially through the
use of web technology. e-HRM is the new field of technology that is widely spreading
in organizations around the world. It aims at transforming the HR functions into one

21. Introduction 5
that is paperless, more flexible and resource efficient. With the state of IT, HRM has
become more effective through the use of e-HRM technologies. e-HRM has the
potential to change the way traditional HRM functions are performed. For e.g. in the
analysis and design of work, employees in geographically dispersed locations can
work together in virtual teams using videos, e-mail etc. Under recruitment function,
job openings can be posted online, and candidates can apply for jobs online. On
compensation and benefits issues, e-HRM will make it easy for employees to review
salary and bonus information and seek information about bonus plans.
1.6 Meaning of e-HRM
People mean different things by the term “e-HRM” It is a web-based solution that
advantages 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. It also refers to the
processing and transmission of digitized information used in HRM, including text,
sound, and visual images, from one computer or electronic device to another. It will
be able to meet the demands of today's Human Resource Management.
e-HRM refers to conducting HRM transactions using the Internet and other IT.
Although the ‘e’ part is a reflection of the “electronic” meaning that it has in “e-
business” or “e-commerce”, it really means online HR. An e-HR system aims to
provide useful information to managers and employees anytime, anywhere. For
instance, it allows employees to take over some of the administrative roles of the HR
department, by controlling their personal information, updating records and keeping
control of timing and agenda. As for managers, it helps them to access information
and data, conduct analyses, and make HR related decisions without consulting the HR
department.
Typically, the term e-HR is used to describe technology’s role in enabling the
transformation of only HR activity. Instead of a centralized personnel team handling
everyday tasks such as approving pay rises, sorting out training and checking holiday
entitlements, these can be handled by the employees themselves or their line manager
Crucially, the adoption of e-HR seeks to minimize or eliminate intervention from
HR staff, allowing managers and employees to perform HR tasks directly with the

22. Introduction 6
self service tools. These can contrast with the shared service center environment,
where the service would normally be expected to be delivered by a customer service
operative or other category of HR staff.
Before starting to define e-HRM, it is also important to identify terms that possibly
carry similar meanings to the term e-HRM, Wright and Dyer (2000). In addition to
e-HR and e-HRM terms are used such as virtual HRM, HR intranet, web-based HR,
computer based human resource information systems (CHRIS) and HR portals. We
are excluding Human Resource information systems (HRIS), since there is a
fundamental difference between HRIS and e-HR in that basically HRIS are directed
towards the HR department itself. Users of these systems are mainly HR staff. These
types of systems aim to improve the processes within the HR department itself, in
order to improve the service towards the business. With e-HR, the target group is not
the HR staff but people outside this department: the employees and management.
HRM services are being offered through an internet for use by employees. The
difference between HRIS and e-HR can be identified as the switch from the
automation of HR services towards technological support of information on HR
services. Technically speaking it can be said that e-HR is the technical unlocking of
HRIS for all employees of an organization. e-HRM is a more specific vision of how
HRM and its associated processes can benefit from a rational use of IT.
“Our progress as a nation can be no swifter than our progress in education.
The human mind is our fundamental resource.”
- John F. Kennedy (35th
President of the United States)
1.7 Definition of e-HRM
“e-HRM is Seen as the intersection between human resource management and
information technology. It merges HRM as discipline and in particular its basic
HR activates and Process with the information technology field”
According to Parry and Tyson (2010), e-HRM is supposed to support the role of
traditional HRM in fulfilling its goals. Those are similarly divided into; operational,
relational and trans-formational.

23. Introduction 7
As for operational goals, they mainly concern the reduction of costs and
improvements of efficiency. Further, relational influence of e-HRM helps employees
to administer their data themselves (i.e., performance measurements, training options
on- line) and managers to speed up some important processes (i.e. selection of job
applicants). Lastly, transformational e-HRM provides employees with endless
possibilities when it comes to communicating from different parts of the world and
during different times of the day.
According to Bondarouk and Ruel, (2009); e-HRM, “an umbrella term covering all
possible integration mechanisms and contents between HRM and Information
Technologies aiming at creating value within and across organizations for targeted
employees and management.”
Hensi Margaretta (2008); as the increased of internet users nowadays, many people
try to build their business through internet. (Arti Bakshi) quotes Information
Technology has played an important role in HRM practices. e-HRM is the application
of IT for HR practices which enables easy interactions within employee and
employers. It stores information such as company payroll, employee data, training,
recruitment.
Voermans and Van Veldhoven (2007) defined “e-HRM as the administrative
support of the HR function in organizations by using Internet technology”
As said by Andors (2005), there are many ways in which employers utilize
technology to enhance and support the HR function. Technology is used for
recruitment, career planning, and performance management, determination of rewards
and recognitions, training and development, and employee relations.
As said by Dolan and Acosta-Flamma (2005), it would seem that global
multinational corporations experience more of the benefit gained from implementing
e-HRM in term of costs and downsizing than less developed global organizations.
According to Jaquenoud (2005), e-HRM supports HR measurement in recruitment,
people administration, competence development, training administration, career and
succession planning and performance management.

24. Introduction 8
According to Ruel, Bondarouk and Looise (2004), “e-HRM is a way of
implementing HR strategies, policies, and practices in organizations through a
conscious and directed support of and/or with the full use of web-technology-based
channels”
According to Hawking, stein and Foster (2004), the application of web-based
technologies to the human resource function combines two elements, namely the use
of electronic media and the active participation of people in the process. People are
the drivers behind the technology. They make use of the technology that helps
organisations lower administration costs, improves employee communication and
satisfaction, provides real time access to information,
As defined by Kettley P and Reilly P (2003), a Computerized Human Resource
Information System (CHRIS) consists of “a fully integrated, organization-wide
network of HR related data, information, services, databases, tools and
transactions.”Such a system can be described as e-HR, meaning the application of
conventional, web and voice technologies to improve the HR administration,
transactions and process performance.
As stated by Ernst Biesalski (2003) “Electronic-Human Resource Management (e-
HRM) is a web based tool to automate and support HR processes.” The
implementation of e-HRM is an opportunity to delegate the data entry to the
employees. e-HRM facilitates the usage of HR market places (e-recruitment) and
offers more self-service to the employees. e-HRM is a collection of many different
technologies.
Jones and Arnold (2003) mention further applications of e-HRM such as virtual
career centers, integrated personnel assessments, e-learning platforms, web-based
surveys, and online performance appraisals.
The Institute for Employment Studies at U.K. (2002) quotes e-HR as “the
application of conventional, web and voice technologies to improve HR
administration, transactions and process performance.”
According to Watson Wyatt (2002) “The application of any technology enabling
managers and employees to have direct access to HR and other workplace services for
communication, performance reporting, team management, learning and other

25. Introduction 9
administrative applications. e-HR encompasses similar applications of technology but
being more confined to those activates that typically fall within the HR function.”
According to Walker (2001), e-HRM is also seen as a collective of Knowlwdge,
principles and best-practices approaches to effective human resource management.
According to Adam and Vanden Beg (2001), “Using web-based technologies
(internet, intranet, extranet) for the best of personnel management, that decreases the
administrative work, gives that opportunity to employees to plan their career actively,
giving the management the opportunity or taking well founded decisions and
increasing the effectiveness and efficiency”
Noe, Hollenbeck, Gerhart and Wright (2000), Electronic human resource
management (e-HRM) refers to the processing and transmission of digitized
information used in HRM, including text, sound, and visual images, from one
computer to another electronic device.
Lepak and Snell (1998) used the term ‘virtual HR’ to describe a “network-based
structure built on partnerships and mediated by information technologies to help the
organization acquire, develop, and deploy intellectual capital”
Broderick and Boudreau (1992) defined Human Resource Information Systems
(HRIS) as the “composite to data basis computer applications and hardware and
software that are used to collect or record, store, manage, deliver, present and
manipulate data for human resources.”
Desanctis (1986) kicked off an early definition of HRIS as a “specialized information
system within the traditional functional areas of the organization, designed to support
the planning, administration, decision-making, and control activities of human
resource management” This definition emphasized an information system and could
be interpreted to exclude the process of its adoption, which plays an important role in
achieving its goals. Studies that employ an HRIS-focused definition do not state any
human resources as a research population. Nor do they include HRM-related
outcomes. A decade later, Haines and Petit (1997) considered HRIS as a system used
to acquire, store, manipulate, analyze, retrieve, and distribute pertinent information
about an organization’s human resources. Although the term HRIS is still in use, we
assume that there is a difference between the early information systems for HRM and

26. Introduction 10
the currently used information technologies for HRM, or e-HRM. The main and
foremost difference is the magnitude and reach of e-HRM.
Mary Gowan has defined Electronic Human Resource Management System (e-HRM
System) as 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.
As said by MS Kauffman “An automation system is a precisely planned change in a
physical or administrative task utilizing a new process, method, or machine that
increases productivity, quality and profit while providing methodological control and
analysis. The value of system automation is in its ability to improve efficiency; reduce
wasted resources associated with rejects or errors; increase consistency, quality and
customer satisfaction; and maximize profit.”
According to Panayatopoulou; e-HRM refers to conducting HRM transactions using
the Internet and other IT. Although the, “e” part is a reflection of the “electronic”
meaning that it has in “e-business” or “e-commerce”, it really means online HR. An e-
HR system aims to provide useful information to managers and employees anytime,
anywhere. For instance, it allows employees to take over some of the administrative
roles of the HR department, by controlling their personal information, updating
records and keeping control of timing and agenda. As for managers, it helps them to
access information and data, conduct analyses, and make HR related decisions
without consulting the HR department.
1.8 Nature of e-HRM
When HR department make use of the internet and related technologies to support
their activities, the process becomes e-HRM. It is the complete integration of all HR
system and processes based on common HR data and information and on
interdependent tools and processes. Fully developed e-HRM could provide the data
gathering tools, analysis capabilities and decision support resources for HR
professionals to hire, pay, promote, terminate, assign, develop, appraise and reward
employee, in ways that fully engage them in managing their own outcomes, maximize
the contribution of each employee and support execution of firm’s strategy.

27. Introduction 11
e-HRM has the potential to change all traditional HRM function. Table No 1.8 shows
major implications of using electronic media in support of HR activities. For example,
employee in different geographic location can work together. Use of internet enables
companies to search for talent cutting across times and distance constraints.
Recruiting can include online job postings, application and candidates screening from
the company’s website or the website of recruiting firms, such as monster.com,
naukri.com, and clickjobes.com. Employees from geographic location can all receive
the same training over the company’s computer network.
Table No 1.8 Implication of e-HR
HRM practices Implication of e-HRM
Analysis and design of
work
Employee in geographically dispersed location can work together
in virtual teams using video, e-mail and the internet.
Recruiting Post job opening online, candidates can apply for jobs online.
Selection
Online simulations, including tests video, and e-mail, can
measured candidates’ abilities to deal with real-life business
challenges.
Training
Online learning can bring training to employee anywhere,
anytime.
Compensation and
benefits
Employee can review salary and bonus details and seek
information about and enroll in benefits plans.
1.9 Types of e-HRM
e-HRM is not a specific stage in the development of HRM, but a choice for an
approach to HRM. Wright and Dyer (2000) distinguish 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.

28. Introduction 12
Lepak and Snell (1998) make a similar distinction, namely operational HRM,
relational HRM and transformational HRM.
 Operational HRM
 Relational HRM
 Transformational HRM
The first area, Operational HRM, concerns the basic HR activities in the
administrative area. One could think of salary administration (payroll) and personnel
data administration. The second area, Relational HRM, concerns more advanced
HRM activities. The emphasis here is not on administering, but on HR tools that
support basic business processes such as recruiting and the selection of new
personnel, training, performance management and appraisal, and rewards.
Transformational HRM, the third area concerns HRM activities with a strategic
character.
Here we are talking about activities regarding organizational change processes,
strategic re-orientation, strategic competence management, and strategic knowledge
management.
The areas mentioned could also be considered as types of HRM that can be observed
in practice. The operational type of HRM provides the choice between asking
employees to keep their own personal data up-to-date through an HR website or to
have an administrative force in place to do this. For relational HRM there is the
choice between supporting recruitment and selection through a web-based application
or using a paper-based approach (through advertisements paper-based application
forms and letters etc.) Finally, in terms of transformational HRM, it impossible to
create a change-ready workforce through an integrated set of web-based tools
trainable the workforce to develop in line with the company’s strategic choices or to
have paper based materials. In cases where an organization consciously and in a
focused way chooses to put in place web technology for HRM purposes, based upon
the idea that management and employees should play an active role in carrying out
HR work, we can speak of e-HRM.

29. Introduction 13
1.10 Objectives of e-HRM
e-HRM is designed to achieve the following objectives:
 To offer an adequate, comprehensive and on-going information system about
people and jobs at a reasonable cost;
 To provide support for future planning and also for policy formulations;
 To facilitate monitoring of human resources demand and supply imbalances;
 To automate employee related information;
 To enable faster response to employee related services and faster HR related
decisions and;
 To offer data security and personal privacy. Data security is a technical
problem that can be dealt with in several ways, including passwords and
elaborate codes. In the information age personal privacy is both an ethical
and moral issue.
1.11 Scope of e-HRM
 A decisive step towards a paperless office;
 Higher speed of retrieval and processing of data;
 Increased access to HR data and ease in classifying and reclassifying data;
 Collection of information as the basis for improving the strategic orientation
of HRM;
 More regular and higher accuracy of information/report generated;
 Fast response to answer queries;
 A higher internal profile for HR leading to better work culture;
 Establishing of standardized and systematic procedures; More transparency in
the system;

30. Introduction 14
 Cost savings achievable through process improvements and due to reduction
in duplication of efforts;
 Significant reduction of administrative burden;
 Adaptability to any client and facilitating management;
 Integral support for the management of human resources and all other basic
and support processes within the company;
 A more dynamic workflow in the business process, productivity and employee
satisfaction.
1.12 Function of e-HRM
Resource Management:
 Storage of applicants details;
 Retrieval and amendment of those details;
 Matching CVs to person specifications for short listing purposes;
 Link with internet recruiting processes;
 Letter writing, acknowledgements, invitations to interview, offers and
rejections;
 Management reports, analysis of response by media and monitoring
recruitment costs;
 Evaluating applicants and employees;
 Selecting placing, promoting, terminating and transferring employees;
 Analyzing and designing jobs.
Compensation and Reward Management:
 Analyze and report on average pay or pay distribution by jog, grade, age
or length of service;

31. Introduction 15
 Assist in job evaluation;
 Forecast future payroll costs on the basis of assumptions about members,
promotions and pay levels;
 Administer pay reviews, producing review forms, analyzing proposals
against 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;
 Provide information to line managers which will guide them to do their
pay decisions;
 Generate instructions to adjust pay as well as letters to individuals
informing them of their increases;
 Managing employee wage and benefit plans.
Performance Management
 Generating forms;
 Analyzing and reporting on the result of performance reviews showing
the distribution of people with different degrees of potential or
performing at different levels;
 Highlighting individuals with particular skills or special promise; Writing
role definitions;
 Generating employee opinion surveys online.
Training and Development:
 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;

32. Introduction 16
 Analyzing the training recommendations contained in performance
review reports to identify collective and individual training needs;
 Identifying suitable training courses to meet training needs;
 Making arrangements for off the job courses;
 Informing employees about the arrangements for courses;
 Handling correspondence about training courses;
 Storing data on standard or individually tailored induction, continuation
or development
 training programmes, including syllabus, routings, responsibilities for
giving training, test procedures and progress reporting;
 Generating instructions and notes for guidance for all concerned
with providin or undergoing on-the-job training programmes;
 Storing progress reports and monitoring achievements against training
objectives
 Producing reports summarizing current and projected training activities
and calculating the output of training programmes;
 Recording and monitoring training expenditure against budget.
Employee Relations:
 Promoting employer brand;
 Providing high standards of safety and welfare facilities to
employees through easy accessible e-HR solutions;
 Frame employment policies online;
 Provide a network of internal communication; Consultation and
negotiation facilities for employees.

33. Introduction 17
1.13 Evaluation of e-HRM
The evaluation of the e-HRM department is based on six driving forces. These forces
need to be harnessed and responded to as companies approach the 21st
century. The
following six forces must be addressed by HRM departments that want to
continuously increase their value while reducing costs.
Information technology; HRM professionals are facing a digital future. The rapid
growth in the field of computer hardware, software, networking, and telephony
services is absolutely essential to the virtual HRM movement. It is not accident that
virtual HRM departments will become the norm in the near future. This is especially
true with the increase sophistication and lower costs of information age technology
and automated processes.
Processes reengineering; strategic HRM managers are constantly looking for ways
to streamline and improve core business processes to make them efficient. All
business processes especially those in the HRM department can be reengineered and
improved through the skillful application of information technology.
High-speed management; to be competitive, all companies must work smarter and
faster. Virtual HRM is definitely a smarter and quicker form of service delivery than
traditional HRM.
Networked organizations; virtual HRM departments are more likely to emerge in
networked organizations than in traditional and bureaucratic companies. The
proliferation of information technology such as local area networks, e-mail, and
corporate intranets are the trademarks of a flatter networked company. These new-
wave organizations offer state-of-the-art technology and information sharing to
empower all levels of personals.
Knowledge workers; the 21st
century organization will compete on strategic
information and knowledge. These learning organizations´ will be staffed with self
directed and computer savvy, knowledge workers. These workers will excel at using
information to quickly identify and capture lucrative business opportunities while also
diligently identifying and resolving costly problems.

34. Introduction 18
Globalization; to complete successfully in the 21st
century, nearly all companies must
develop a global business strategy. This means that HRM departments must be
capable of providing services to their employees anywhere on earth. Obviously, a
technology-assisted HRM department that is skilled at traversing the information
super highway is in the best position to support a globalized work force.
In summary, all of the aforementioned forces are designed to get rid of outmode
organizational processes, procedures, layers and boundaries that add cost and form
barriers between the HRM department and the company employees. Moreover, all of
these forces reflect the enormous impact that information technology has, and will
continue to have, on every process and procedure in the HRM department. Successful
information of a virtual HRM department will clearly increase a company competitive
advantage.
1.14 The State of e-HRM in an Organization
e-HRM is a way of implementing HR strategies, policies, and practices in
organizations through a conscious and directed support of and/or with the full use of
web-based channels. e-HRM is a concept a way of doing HRM. This is not to ignore
the fact that e-HRM can transform the nature of HRM strategies, policies and
practices. Researchers are searching for relevant and adequate theory that can fully
grasp the concept of e-HRM, and frequently present fragmented empirical evidence,
particularly on e-HRM sub-fields such as e-recruitment and e-learning, these-called
“early bird” areas where web technology was first adopted.
1.15 Benefit of e-HRM
The main benefits of e-HRM are an increase of quality and pace, because the existing
administrative processes were slow and inefficient conditional upon mainly paper-
based processes.
Standardization: By standardizing the system used within the group and by
providing employees with direct access to records, particularly leave records, the
company can achieve a significant reduction in employee queries and reduce the
need for HR to undertake data entry of employee records.

35. Introduction 19
Ease of recruitment, selection and assessment: e-Recruitment can be one of
HR’s nightmares. 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. Although this, and like processes, will always need significant
human intervention. e-HRM systems can streamline the process and reduce errors.
Ease of administering employee records: Whether be it leaves, benefits, personal
details, accident and discipline reports, etc; it is generally accepted that once everyone
can overcome the initial it phobia, HR and employees will experience fewer
headaches and efficiency will rapidly increase.
Reductions to cost, time and labour: Reduced duplication, reduced time spent
fixing errors, reduced labour costs through ESS, reduced or no hard-copy entry. Not
only manpower can be saved, the processing time can also be shortened. With this e-
HRM reaches the prime objective of cost effectiveness.
Access to ESS training enrolment and self development: e-Training can enable
employees to search for and enroll in training programmes on-line and validating
course availability. This can streamline the training administration process enabling
employees to access computer based training. Cost and pace can be individualized as
well.
Cost and ESS: ESS reduced the workload of HR department by more than 50%, for
instance in the traditional method the employee has to type in a formal leave
application get approved from his/her direct boss who will send it to the HR
department for further approval which would consume lot of time to be processed. On
the other hand, with e-leave, the employee needs only to log in and make his/her leave
application and his/her boss will be alerted to approve. Upon approval the leave
balance is automatically updated and this is just one aspect.
Location and timeliness: With ESS, the employee could log in online anywhere and
anytime without being in the office and without the leave card could be sitting at the
boss’ table for a few days, lost or buried.

36. Introduction 20
1.16 Limitation of e-HRM
While the Electronic Human Resource Management described earlier has many
benefits, it also has many problems which need to be addressed to before it can really
be useful. Some of them are described below:
 It can be expensive in terms of finance and manpower requirements.
 It can be threatening and inconvenient to those who are not comfortable with
computers. For computerized information to be useful at all levels there is an
urgent need for large scale computer literacy.
 Often the personnel designing e-HRM do not have a thorough understanding
of what constitutes quality information to the uses. Thus, the users do not get
exactly the reports which they want. Producing information that is of quality
to the users requires an investment in time, effort and communication on the
part of e-HRM managers.
 Computers cannot substitute human being. Human intervention will always be
necessary. Computers can at best aid the human effort. The quality of response
is dependent upon the accuracy of data input and queries fired. The “garbage-
in garbage-out” is the key expression in any computerized system.
 Employees and line managers’ mindsets need to be changed: they have to
realize and accept the usefulness of web-based HR tools.
 They generally feel that they lack the time space needed to work quietly and
thoughtfully with web-based HR tools and so, if there is no need, they will not
do it.
 Guaranteeing the security and confidentiality of input data is an important
issue for employees in order that they should feel ‘safe’ when using web-based
HR tools.

37. Introduction 21
1.17 Goals of e-HRM
The main goals of e-HRM are as followed:
 Improving the strategic orientation of HRM
 Cost reduction/efficiency gains
 Client service improvements/ facilitating management and employees.
1.18 e-HRM Tools
Fig 1.18 e-HRM Tools
e-HRM Tools
Staffing Compensation
Training &
Development
Performance
management
e-Recruitment
e-Selection
e-Compensation e-Learning
e-Performance
management

38. Introduction 22
Table No 1.18 Expected benefits of using e-tools for HRM practices
e-HRM tools Expected benefits
Staffing
e-recruitment  Creating brand identity
 Increasing employee retention levels
 Increasing efficiency recruitment process
 Decreasing administrative burdens in
recruitment process
 Increasing organizational attractiveness
e-selection  Decreasing administrative paper burden (used
for first selection)
 Minimizing costs and maximizing of the
human capital
 sustainability
Compensation
e-compensation  Effectively designing, administering and
communicating compensation programs
 Enabling to look at external payments
 Analyzing market salary data
 Streamlining bureaucratic tasks
 Greater access to knowledge management
databases
 Internal information process quicker
Training & development
e-learning  Delivering information about learning,
knowledge and skills
 Enabling web based training
 More flexible and cost efficient than normal
training and development
 Just in time
 Control over learning
Performance management
e-performance management  Generating figures and statistics about
performance more easily
 Enlarging span of control for managers
 Facilitating process of writing reviews and
generating feedback

39. Introduction 23
1.18A e-Employee Profile:-
The e-Employee Profile web application provides a central point of access to the
employee contact information and provides a comprehensive employee database
solution, simplifying HR management and team building by providing an employee
skills, organization chart and even pictures. e-Employee profile maintenance lies with
the individual employee, the manager and the database manager. e-Employee profile
comprise of the following:
 Certification
 Honor/Award
 Membership, Education
 Past Work Experience
 Assignment Skills
 Employee Assignment Rules
 Employee Availability
 Employee Exception Hours
 Employee Utilization
 Employee tools
 Job information
 Sensitive job Information
 Service Details
 Calendar
 Calendar Administration
 Employee Locator

40. Introduction 24
1.18B e-Recruitment:-
e-recruitment, also known as online recruitment, is the practice of using technology
and in particular Web-based resources for tasks involved with finding, attracting,
assessing, interviewing and hiring new personnel.
The purpose of e-recruitment is to make the processes involved more efficient and
effective, as well as less expensive. Online recruitment can reach a larger pool of
potential employees and facilitate the selection process.
The internet has become a leading tool for recruiting and selecting employees. The
use of web sites by both employers and the job seeking public has made recruiting
one of the most successful applications of the Internet for business purposes.
Several reasons for the use of e-recruitment are mentioned by Stone et al. (2005).
Increasing the effectiveness of the recruitment process could be possible by: reaching
large numbers of qualified applicants, also in international markets, reducing
recruitment costs, decreasing cycle time, streamlining burdensome administrative
processes, and enabling the organization to evaluate the success of its recruitment
strategy.
The online promotion of an organization as a desirable place to work, through the
corporate website or other venues, is one element of e-recruitment. e-recruitment
software and systems are available as separate applications, product suites and
services. A recruitment management system is an integrated product suite or portal
that streamlines and automates the processes involved.
Companies and recruitment agents have moved much of their recruitment process
online so as to improve the speed by which candidates can be matched with live
vacancies. Using database technologies, and online job advertising boards and search
engines, employers can now fill posts in a fraction of the time previously possible.
Using an online e-Recruitment system may potentially save the employer time as
usually they can rate the e-Candidate and several persons in HR independently review
e-Candidates.

41. Introduction 25
Surveys show that 70 and 90 per cent of large firms now use e-recruiting systems.
And it is anticipated that over 95 per cent of organizations plan to use them in the near
future. Cisco systems recruit employees only through e-recruitment.
Cautions while using e-recruitment
The following guidelines regarding e-recruitment will be highly useful for recruiters:
 e-recruitment needs to be aligned with organization’s strategic goals. For
example, if a firm has an innovation strategy that focuses on developing new
information technologies, e-recruitment shall identify individual with skills
that can help meet these goals.
 Organizations that have reputation can benefit from e-recruitment.
 Firms need to use e-recruitment as one of the sources but not the only source
of attracting talents.
 May attract frequents job hoppers.
 The website should be designed for easy use, simple to navigate and attract
candidates rather than simply screening them.
 Organizations should develop online screening system based on job analysis
and ensure that inferences made from the system are reliable and valid.
 The system should give adequate information about the company and the
positions to the candidates.
 Organizations should website to promote values that will be attractive to most
employees rather than just select those that fit with traditional culture e-
recruitment.
 E-recruitment should not be used as fed but should be measured in terms of
successful placement made.
 Collect feedback from job application on the direct and indirect messages
conveyed by the website regarding the climate of the organization.

42. Introduction 26
 Companies should use appropriate languages in the website for people with
diverse background can use the website.
 The system should be simple and should not cause anxiety in the minds of job
applications while negative the site
 Should meet all legal requirement and without any bias on caste and religion.
 Should attract disadvantaged sections of the society.
 Protect the privacy of individual. The web should have limited access to data
and the data collected are relevant the job.
Advantages of e-Recruitment:
 Lower costs to the organization
 No intermediaries
 Reductions in the time for recruitment (over 65% of the hiring time).
 Facilities the recruitment of right types of people with the required skills.
 Improved efficiency of recruitment process.
 Gives a 24*7access to an online collection of resumes.
 Online recruitment helps the organizations to weed out the unqualified
candidates in an automated way.
 Recruitment websites also provide valuable data and information regarding the
compensation offered by the competitors etc. which helps the HR managers to
take various HR decisions like Promotions, salary trends in industry etc.
Disadvantages of e-Recruitment:
 Apart from the various benefits, e-recruitment has its own share of short
comings and disadvantages. Some of them are
 Screening and checking the skill mapping and authenticity of millions of
resumes is a problem and time consuming exercise for organizations.
 There is low Internet Penetration and no access and lack of awareness of
internet in many locations across India.
 Organizations cannot be dependant solely and totally on the online recruitment
methods.

43. Introduction 27
1.18C e-Selection:-
Next to e-recruitment is e-selection; it’s includes such activities as 800 numbers
scheduling, web based testing, face-to-face interviewing and job offering.
Most employers seem to be embracing Internet recruitment with enthusiasm, the
penetration of on-line assessment tools such as personality assessments or ability
tests, has so far been limited. A survey has showed that although more than half
respondents organizations already use either psychometric or other assessment during
the recruitment process, only few of these companies use on-line assessments prior to
interview. Fewer still include a core fit questionnaire in the recruitment pages of their
websites.
The purposes of e-selection are mainly three:
A. Achieving cost reduction:
Cost reduction is the objective and infect, it is mainly for cost saving that
organizations switch over to e-selection from conventional selection process. e-
selection help cost reduction in several ways. Loss rates between events in the
selection process are minimized, administrative costs involved in the selection
process are reduced and cost of sourcing candidates into the employment process
become less.
B. Maximum utilization of human capital:
To achieve maximum utilization of human capital; this is being achieved through
high retention rates, increased percentage of candidates who meet employment
requirement and improved productivity after the new hires.
C. Sustainability:
Sustainability is the last objective of e-selection. Sustainability refers to the
organization ability and willingness to maintain the e-enabled system and also
progressively evolve the system to satisfy changing requirements. Sustainability is
necessary to ensure that the business continues to reap ongoing benefits from e-
enabled system.

44. Introduction 28
e-selection process Fig.1.18C 1is a typical flow chart to introduce e-selection system.
Organizations planning to introduce e-selection need to consider a variety of
procedural requirements, including process to design upfront, vendor selection and
project steps, assessment steps and protocol for the lost event, feedback to candidates
and internal clients method of processing after testing and management of candidates
flow and testing itself.
Fig.1.18C e-selection Process
Technology considerations which technology to use in selection is a criteria decision
to be made by an organization. One option is to implement technology as a new
module within an existing company system or as an intranet application. For example,
certain type of HRIS system can be programmed to administer and score selection
assessment. Alternatively, type web-based assessment tool can be implemented on a
company intranet the third implementation method is an internet application
administered via an application service provider model by the testing vendor. This
model is becoming increasingly popular for implementing e-assessment via computer.
It allows the company outsources the implementation, maintenance and support of the
assessment. Table 1.18C provides score of the key decision points that influence
Recruiter
extends
job offer
to
candidate.
TA
givesC
feedback
from with
disqualifi
ed result
Recruiter
informs C
that C did
not qualify
Fail
Fail
C reads instructions;
takes first computerize
battery of test.
C takes second
computerized battery of
test (if any)
TA gives C feedback
from with qualified result
next steps. R receives
result by emails, calls C
for follow-up interview.
R schedules interview by
hiring manager.
Pass
Candidate (C) visits
company website and
enter a resume
Recruiter (R) screens
resumes for potential
job fit.
R e-mails/calls
candidates & schedules
onsite testing. R alerts
test administrator.
Test administrator (TA)
greets candidates,
connects to website for
testing.
Recruiter
informs C
that C did
not qualify
Hiring
manager
conducts
interview.

45. Introduction 29
which of the alternative model to choose and also indicates where each method falls
in terms of each. As can be made out, no single model is an answer to all the
requirements.
Table 1.18C e-selection decision points
Considerations Pc-based
Technology
alternatives
intranet
Application
service
provider
Cost Low Moderates High
Centralized data basing Low High High
Ease of updating support Difficult Easy Easy
Implementation timeline Moderate Moderate Fast
Integration with other HT
system
Difficult Moderate-easy Moderate-easy
Demands on internal IT
resources
Moderate-high High Low
Support Difficult Moderate Easy
1.18D e-Learning:-
e-learning refers to the use of internet or an organizational internet to conduct training
on-line. e-learning is becoming increasingly popular because of the large number of
employee who needs training.
Take Wipro, for example, out of its 17,500 employee, 2,500 are on site and 15,000
employees are in offshore centers at Bangalore, Hyderabad, Chennai, Pune and Delhi.
How to organize training for all these? Wipro also has a policy of subjecting any
employee for a two-week training every year. e-learning helps Wipro considerably.
Similarly, at satyam nearly 80% of the 9000 employees are logged into the in-house
learning management system for various courses. Infosys has almost 10% of its total

46. Introduction 30
training through e-learning. e-learning has come a long way from its early days when
I was used extensively for technical education such as learning new language and
familiarization with new technologies. Today, firms are introducing soft skill modules
as well. Satyam uses e-learning modules on management provided by Harvard
manage mentor plus.
It is not that e-learning replace traditional training system. In fact, e-learning become
more effective when blended with traditional learning method. Many firms use e-
learning as a prerequisite before classroom training popularly called blended training
a combination of e-learning with classroom approach. Routine training such as
orientation, safely and regulation compliance is best handled in classrooms. Learning
that requires discussion, tutoring and team-work can go on-line it might also stay in
the classroom
e-Learning refers to any programed of learning, training or education where electronic
devices, applications and processes are used for knowledge creation, management and
transfer. e-Learning is a term covering a wide set of applications and processes, such
as web-based learning, computer-based learning, virtual class room, and digital
collaboration. It includes the delivery of content via Internet, intranet/extranet
(LAN/WAN), Audio-and Videotape, Satellite Broadcast, Interactive TV, CD – Rom,
and more. Training program provides.
Classical and Virtual Learning: This classical learning model especially from non-
reversible flow of information. AT the beginning is the pedagogue, which governs the
course. For students, pedagogue offers information, knowledge, and educational
materials mostly in the representation of educational lecture notes for lessons. For the
most part the feedback is weak, inconsistent, or even missing. Virtual education
environment by its communications links collects the feedback of participants,
simplifies teaching and simplifies teamwork of students with pedagogue. The virtual
learning system enables horizontal and vertical communication. For required
information, participant can often gets much more information than in classical model
of education as here the other participant also share which is not a real happening in
the classical model.

47. Introduction 31
Characteristics of e-Learning:
 e-Learning outcomes extend beyond learning to strategic outcomes.
 e-Learning is much more than e-training for skill outcomes.
 e-Learning involves information and communication technology.
 e-Learning is about people learning in a given context.
A requisite for e-learning: e-learning does not simply mean putting existing courses
and materials on a website. Following requisites need to be provided before launching
learning on-line.
 Sufficient top management support and funding needs to be committed to
develop and implement e-learning.
 Manager and HR professionals need to be “retrained” to accept the idea that
training is being decentralized and individualized.
 Current training methods are not adequately meeting organizational training
needs. Potential learners are adequately computer literate and have ready
access to computer and the internet.
 Sufficient numbers of learners exist and many of them are self-motivated to
direct their own learning.
Advantages and disadvantages of e-learning:
e-learning is advantages in as much as it is self paced, allows for consistency and
incorporates built in guidance and help. There are problems nevertheless. e-learning
tends to cause trainee anxiety, as many may not be ready to accept or have access to
computers and internet. Table1.18D brings out the advantages and disadvantages
more comprehensively.
Success factors it is worth pointing out that organizations using e-learning exhibit a
number of common success factors.
 Cultural change has taken place about how training and learning happens and
delivered.

48. Introduction 32
 e-learning is closely aligned to the need of the business.
 e-learning is closely “blended” with other type of training such as classroom
activities and is not used to wholly replace other activities.
 Learning needs that drive the technology rather than the way around.
 e-learning has ongoing support from a senior level and marketed effectively
throughout the organization.
 A range of people with different skill are involved including expert trainers
facilitators champions of e-learning and specialist web graphic designers.
Table 1.18D Advantages and Disadvantages of e-learning
Advantages Disadvantages
 It is self paced, trainees can
proceed on their own time
 May cause trainee anxiety
 It is interactive, tapping multiple
trainee senses
 Not all trainees may be ready for
e-learning
 Allows for consistency in the
delivery of training
 Not all trainees may have easy
and uninterrupted access to
computers
 Enables scoring of
services/assessments and the
appropriate feedback
 Not appropriate for all training
content
 Incorporates built-in guidance and
help for trainees to use when
needed
 Requires significant upfront cost
and investment
 It is relatively easy for trainers to
update content
 No significantly greater learning
evidenced in research studies
 Can be used to enhance inductor-
led training
 Requires significant top
management support to be
successful

49. Introduction 33
1.18E e-Training:-
Most companies start to think of online learning primarily as a more efficient way to
distribute training inside the organization, making it available ”any time”,” anywhere”
reducing direct costs (instructors, printed materials, training facilities), and indirect
costs (travel time, lodging and travel expenses, workforce downtimes). Attracted by
these significant and measurable advantages, companies start to look for ways to
make the most of their existing core training available online, and to manage and
measure the utilization of the new capabilities.
Characteristic of e-Training:
 Rich learning interface.
 Personalized training programs.
 Training from
 work place/home
 Virtual and Class room.
1.18F e-Performance Management
Performance management is another area which has been e-based. The use of
technology in performance management tends to increase productivity. This is
possible through two ways: (i) technology may facilitate measuring an individual’s
performance via computer monitoring activities, (ii) technology become a tool to
facilitate the process of writing reviews or generating performance feedback. Example
here include multi-rate appraising that supervisors or team member generate online, as
well as off-the-shelf appraisal software packages that actually construct an evaluation
for a manager. This particular technological approach occurs more often in the
context of jobs that involves personal judgment and high discretion.
Technology can be applied in performance management in several ways. In the first
place, routine or low discretion jobs can be subject to computerized performance
monitoring system that helps generate performance data.

50. Introduction 34
Second software are available that help generate appraisal forms and accompanying
narrative. Third, performance management system can be integrated with an overall
enterprise resource planning software system.
This approach helps HR professional to identify high performance, spot skill and
competency gaps and to analyses pay relative to performance. With this information
being available, HR manager can plan for training, coaching and education. Forth,
firm intranets and internet may also help performance-management process. Fifth,
stand-alone software packages are a great help in performance management system.
Some of these packages are relatively inexpensive and easy to use. The greatest
benefits of appraisal software are the elimination of paperwork and simplification of
the logistics for evaluation enabling managers to focus on contents of the evaluation
process rather than on forms. In addition, some programmes allow user to click
buttons on a screen for each rating and simultaneously create sentences and paragraph
of text. Appraisal software may also include a coaching utility that provides
information to evaluators about coaching individuals they evaluate.
Some packages contain psychometric features. Psychometric features help check
evaluators from inflating ratings. Such built-in check boosts robustness and accuracy
of ratings.
Thus, technology available to e-base performance-management process is enormous.
But there is the dark side to the e-enabled ratings. It may be observed that
performance appraisal is person centric and no machine can substitute one-on-one
interaction. Face-to-face interaction is vital for objective assessment of anybody’s
performance. e-performance tends to forgo this important feature. Care should,
therefore, be taken to ensure that technology intervention between an assesses and as
assesses is confined to the extent it is essential.
1.18G e-Compensation
e-Compensation represents a web-enabled approach to an array of compensation tools
that enable an organization to gather, store, manipulate, analyses, utilize and distribute
compensation and information. Using an internet browser the internet and analytic
tools from anywhere their office their home on vacation and on the other side of the
globe;

51. Introduction 35
1.18H other Important aspects of e-HRM
 e-Job Design and e-Job Analysis
 e-Human Resource Planning
 e-Grievance Redressal
 e-HR Records
 e-HR Information
 e-HR Audit
e-Job Design and e-Job Analysis
 Information of listing skills and competency mapping are placed on the net
 System matches the listing skills and competency mapping and produces the
output by identifying the employee suitable for a particular task
e-Human Resource Planning
 Computer programs are developed and used extensively for the purpose of
planning human resource requirements based on the data and the information
available
 Programs indicate the number of employees required at each level for each
category of the job.
e-Grievance redressal
 Employees send their grievance through e-mail to the superior concerned who
in turn solves the problems / redress grievances and communicates the same to
the employee
 This reduces the time in the process and avoids face to face interaction
e-HR Records
 HR records are created, maintained and updated with the help of computers
easily and at a first rate

52. Introduction 36
e-Information
 HR information is generated, maintained , processed and transmitted to the
appropriate places or clients with the help of software with high speed and
accuracy
e-HR Audit
 The standard human resource practices or the desired HR practices are fed into
the computer
 The data and info regarding the actual practices are also fed into the computer
 The software automatically completes the HR audit and produces the audit
report.
 The HR manager can then modify the report by deleting or adding any
comments
1.19 Implementation of e-HRM
e-HRM enhances your human resources management; There are five main phases in
the implementation of the e-HRM business solution.
(A) Analysis (Infrastructure)
We analyze the existing infrastructure with regard to quantity of data and
classification of business activities.
(B) Business processes in the company
After the existing processes have been analyzed, the options for automating these
processes in the client's environment are proposed. Finally a project plan is
developed based on the model of the processes identified.
(C) Implementation
After a fundamental analysis of the processes in the work team, individual
modules are deployed in the client's environment. With modular design a gradual
implementation is possible. Company-specific functionalities are discussed with
the client and built upon request.

53. Introduction 37
(D) Implementation and training
A complete knowledge of the components of the solution is a key factor for
successful implementation. The entire team of project managers, information
technology professionals and human resources specialist are thus involved in user
training and implementation. SRCI.SI provides well planned and quality training
of future users, including initial training in their work environment.
(E) Maintenance
Fast technological development and development of new modules make
cooperation after the implementation indispensable. A maintenance contract
typically includes:
 technical support experts available by phone, through e-mail or on-site
 adaptation of existing modules or development of new ones
 application software adjustment to changes in the system environment or
operating system
 functionality improvement and software upgrades in the form of new versions
 consultation about further development of the system
1.20 Challenges of e-HRM in Software Organization
(Varma Shilpa, Gopal R) Among the most prevalent issues facing management are
control, business requirements and best practices. Some of the major challenges that
have been identified are
 Cost Implications
 Aligning the e-HRM system with the business requirements
 Security of the information generated
 Training the users a crucial issue
 The Return On Investment (ROI) on an e-HRM project to be justified
 ERP to function along with other systems to be successful
 Attrition and Retention

54. Introduction 38
1.21 The Challenges of e-HRM
Among the most prevalent issues facing management are control, business
requirements, and best practices. Some of the major challenges that have been
identified are,
 Cost Implications: Costs tend to be proportional to requirements and the type
of organization. Given the costs, companies must e-enable only those
operations that are vital, essential or desirable.
 Aligning the e-HRM system with the business requirements: ERP
applications vary widely in their allowance for control, typically assuming
either a corporate or business-unit locus of control, Hence management must
consider the ERP’s stance on control to ensure it will meet the business
requirements of the company;
 Security of the information generated: A company needs to ensure that
outsiders or competitors should not access the information. In this context
proper vendor selection is a critical condition to ensure confidentiality.
 Managing the data: Managing the huge amount of data generated through
HRMS is a relatively new challenge for companies;
 “Overkill” and loss of the ‘human touch’: Another challenge is the
avoidance of ‘overkill’ and loss of the ‘human touch’. It should not be the case
that in a bid to be techno-Savvy we neglect the human side.
 For traditional companies the task is more so difficult: e-HRM is more so a
challenge for the traditional companies which need to bring about a change in
the mindsets to a large extent. These companies as compared to those in the IT
sector, BPOs etc. are having a tougher time getting people to speed up on
these e-HR tools.
 Customization to be taken up in the right perspective: Most of the
packages are of international standards and based on best practices. Hence
customization is huge in the Indian context and needs to be taken up in the
right perspective. Customizations can also be costly and maintaining and
upgrading customizations can be cumbersome.

55. Introduction 39
 Training the users a crucial issue: Training the users is many a time a long
drawn out process, as many people do not find them to be user friendly;
 The Return on Investment (ROI) on an e-HRM project to be justified:
The ROI on an e-HRM project is the projected cost reduction brought about
by the system and its impact on revenue/profits over time. The e-HRM
initiative should align itself with the overall HR and IT strategy and
ultimately, with the business strategy to ensure ROI.
 ERP to function along with other systems to be successful: Companies
wanting to integrate their value chains with the business activities of their
suppliers, business partners and customers typically have to implement
systems other than ERP like Customer Relationship Management (CRM) and
others.
 Continuous monitoring and feedback: Continuous monitoring and feedback
are critical for the success of any e-HRM effort in an organization.

56. CHAPTER-2
REVIEW
OF
LITERATURE

57. Review of Literature 40
CHAPTER II
REVIEW OF LITERATURE
Chapter 2 elaborates on the portrayal of past and present research findings from time
to time by researchers in India and abroad.
According to Broderick and Boudreau [1992], over the years Human Resource
information Systems have been acknowledged as important inputs of corporate
decisions making process. Operational and strategic business objectives are now not
being considered in isolation of HR objectives. Hence, HRIS is now enterprise-wide
decision support systems. Traditionally, e-HR is considered as automated record
keeping of employees and computerization of their payroll. However, it is now
well established with HR managers with information systems can play a greater role
beyond their administrative role. In fact they are now being able to play even a
strategic support role. Technology not only substitutes manpower, they also
substantially contribute to efficiency, automating representative operations Dealing
with human resource information manually hardly allows any complexity to human
resource professionals to address monitorial issues of human resource management.
In the view of Noe, Hollenbeck, Gerhart And Wright [2000] in their view „HR
functions can become critical partners in driving success, but to do so requires that
HR changes its focus, its role, and its delivery systems‟. Electronic human resource
management (e-HRM) refers to the processing and transmission of digitized
information used in HRM, including text, sound, and visual images, from one
computer to another electronic device. e-HRM has the potential to change all
traditional human resource management functions. Employees do not have to be in
the same geographic areas to 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 website or the websites of
companies that specialize in online recruiting, such as monster.com or hotjobs.com.
Employees from different geographical locations can all receive the same training
over the company‟s intranet. It also can increase the speed with which employees can
bring a product to market by facilitating communications between employees on
virtual teams using internet discussion forums, video and audio-conferencing, and
global-scheduling.

58. Review of Literature 41
As stated by Mark Doughty and Simon Pugh [2000] today, within the HR software
market there are a numerous of HR systems, payroll, training administration, 360
degree feedback, psychological testing and competency software tools-typically
operating in their own software fiefdoms. Evidence suggests that most
organizations fail to recognize that nearly all HR software on the market today is at
the foundation level of e-HR. “very few organizations have reached the strategic level
of e-HR.” This involves the development and deployment of tasks that allow
managers, employees and HR to use the massive amount of data created and housed
within the foundation and service levels of emerging internet technology.
Perhaps it could be argued that instead of wasting money on lots of paper, HR is now
wasting money on non-strategic databases. More importantly, the buyers of this
software (i.e. HR) fail to realize that most HR software solutions available today are
based on client server (old) technology. PeopleSoft (v8.1) the world‟s number one HR
software has only recently moved to a web platform, yet it could be argued that this
latest offering is little more than what was available in its client server application.
HR as a profession is still struggling to make the impact and earn the respect it
deserves, yet HR and organizations are being duped into spending money for
something which is fundamentally flawed. However, it does not have to be this way.
People can and do make the difference.
The human resource management function has changed dramatically over time
evolving. Alfred J Walker [2001] states that if HR technology is to be considered
successful, it must change the work performed by the Human Resources personnel by
dramatically improving their level of service, allowing more time for work of higher
value, and reducing their costs. Many systems have been implemented by cutting HR
staff, outsourcing and imposing technology on what was left. But Walker argues that
survey results demonstrate that overall HR departments have actually upward
their staffing levels over the past decade to do the same work.
Walker advocates the business process re-engineering the HR function first, and then
e-engineering the HR work. He suggests the formation of re-engineering teams of
providers, customers and users to examine the whole range of HR activities including
those which are not being done at present. The end product is a set of processes
organized into broad groupings such as re-sourcing, compensation or training and

59. Review of Literature 42
development. These processes should then be examined by the re-engineering team
and re-designed. From this redesign comes the picture of a new HR function but
Walker argues that the most effective approach is to introduce new technology to deal
with the redesigned processes.
According to Biswanath Ghosh [2002], in an organization the most valuable input is
the human element. The success or failure of an organization depends to a large extent
on the persons who manage and run the organization. In business the greatest asset is
the human resource of the enterprise and not the plant, equipment or the big buildings
it owns. There was a time when manpower was considered as a cost factor but not it is
recognized as an investment. The e-HRM can range from basic personnel records to
sophisticated networks of sub-systems with definite purposes. Today most of these
will be computer systems. The manpower information system can provide necessary
information in a form which can be integrated with any other business data. With
most data base systems, there are facilities to pull out any of the data and present them
in the required form.
The Institute for Employment Studies at U.K. [2002] quotes e-HR as “the
application of conventional, web and voice technologies to improve HR
administration, transactions and process performance.” It involves using
technology to provide HR services, such as recording and monitoring systems,
automating administrative tasks like recruitment and dissemination information such
as HR policies on the internet. As an enabling tool technology has the capacity to
transform the way in which HR is delivered to an authority. Together with the
exponential rise in the use of technology in the corporate field, it now plays a
vital role in effective people management.
According to L. M. Prasad [2003] the concept of computerized Human Resource
Information System is derived “as an organized method of providing information
about human resources, their functioning, external factors relevant to managing
human resources.” Large organizations generally install e-HR because it enables them
to collect, store, process and manipulate large amount of data inputs, reduce costs of
maintaining human resource data, and provide accurate information about human
resources anytime and anywhere. In a computerized Human Resource Information
System various subsystems are interlinked and the outcomes of all the systems

60. Review of Literature 43
are kept in the form of human resource inventory. Whenever a change takes place in
any respect of an employee such a change is incorporated in the computer input.
“Changing the existing ways of thinking”: Yeow Chun Fey [2003], states that
changing your employee‟s mindset is often one of the main challenges with the
introduction of new processes and systems. Frequently the resistance to change
comes from the fear that the new system will require more effort or responsibility. He
recalls that during an employee briefing session, one employee asked the question:“So
with us entering the application into the new leave system, aren‟t we doing your
work?”
To which Yeow responded, “Yes, to some extent you are right, but then under the
manual system, you had to complete your application in hardcopy after which we
effectively duplicated your work with data entry into the system With the new leave
system, the second data entry step has been removed, which means that HR has more
time to provide more value-added assistance to you in other areas.” Typically there is
some resistance to change but generally most employees welcome and appreciate the
convenience and efficiency of the new technology.
Andrew Macintyre [2003] of out-smart, says it all comes down to HR reducing the
operational tasks and getting on with strategizing and with 100% employee self-
service, as HR‟s ultimate Utopia: “the trend is firmly towards introducing
transactional related services that allow employees to get HR related administration
work done faster and more efficiently than before. Companies with positive
experiences are starting to add on more features such as training and performance
appraisal. The ultimate dream solution is a single portal from which employees can
perform HR, finance and other work-related administration functions.”
E-appraisal and e-recruitment are two of e-HR‟s latest trends, more out of
convenience than pure need: “managing of appraisal forms and resumes are one of the
biggest headaches for HR practitioners and managers. Something like e-leave, on the
other hand is already history”, said Jan Wong [2003], business development manager
at PROSOFT. As a more general trend however, Wong suggests that any e-HR
usually reaps quick benefits, including a paperless and more efficient working day for
many HR professionals: “as organizations become more e-HR savvy, they are

61. Review of Literature 44
beginning to see the benefits almost immediately.” The reason being, with modern
technology, paper has become extinct. We can put behind us, the nitty-gritties of leave
applications, which are important to most employees‟ life but very troublesome to
manage. With e-HR in place, all these little unseen headaches, like unproductive time
spent managing paper, merely disappear.
In the view of Michael Armstrong [2003] “the e-HR provides the information
required to manage HR processes.” These may be core employee database and payroll
systems but can be extended to include such systems as recruitment, e-learning,
performance management and reward. The system may be web-based, enabling
access to be remote or online and at any time. The information provided by the e-HR
process can be communicated across organizations. If posts static data such as
information on HR policies and communications about employer facilities such as
learning opportunities and flexible benefits. It can include links that enable
managers and other employees to interface directly with HR applications and make
changes or enquiries.
In the view of Ketlley P, and Reilly P [2003], technology has only recently developed
in a way that enables e-HR to make its mark, especially the introduction of corporate
intranets and web-enabled HRIS. The nature of the development path, however, varies
considerably from organization to organization. Before embarking on e-HR,
organizations should review and optimize their business processes. This may be a
case of major process redesign, or a more tactical exercise tackling areas of concern.
Following a process review, a common next step is to introduce a form of self service.
This is likely to involve employee self service, where staff can access their personal
record and update it or add new information. Manager self service is usually a logical
development, allowing the sign-off of various decisions or proposals. Redesigning the
HR function will impact on the roles and skills of HR staff. There will be many areas
of up skilling as the move away from transactional work gathers pace. This will
stretch the capability of staff, not just in terms of technological facility but also in
customer and relationship skills.
The development of e-HR systems is growing, allowing the HR function to
become more strategic. This can most easily be observed by the fact that today
employees tend to ask for advice rather than administrative assistance. This is the

62. Review of Literature 45
reverse of the situation in the late 90s. Furthermore, the nature of HR departments
has changed because of the development of e-HR. A few years ago businesses tended
to have more, but less qualified HR staff whereas today the reverse applies said Hun
Nam Chung [2003] “today‟s trend is adopting measurement-based management with
emphasis on organizational objectives and performance metrics, e-HR solutions that
provide such features along with best practices should be able to deliver results. Once
this HR infrastructure is put in place, you may embrace virtual work place initiative to
support the increasingly dynamic and mobile workforce”.
According to Perrin [2003] the use of e-HR technologies has for some time helped
HR to perform the more administrative responsibilities of the department.
However, recent research by towers Perrin indicates that most companies, that have
introduced e-HR, have so far limited themselves to just a few basic electronic
transactions (particularly static transactions). Nonetheless, as systems improve,
technology advances and HR itself becomes more accustomed to e-HR – things are
starting to change. Furthermore, many of the obstacles to e-HR are psychological
rather than technical, but that does not remove the need to overcome them. Successful
implementation requires a pro-active and committed project team that can react to and
pre-empt the problems that could arise. The business challenge for each company is to
find the appropriate e-HR solution for their company.
According to Garry Dessler [2004], technological applications play an increasingly
important role in HR. Technology improves HR functioning in four main ways: self
service, call centres, productivity improvement and outsourcing. Using internet the
firm‟s employees can self-service many of their HR transactions such as updating
personal information and changing benefits allocations. HR internet and data
warehouse provide its managers with desktop access to HR related information such
as “how does turn over in my department compare to that of other
departments”. Technology also enabled to create a centralized call centre. The
improving productivity through HRIS proves another example. These days more
firms are installing internet and computer-based systems for improving HR
productivity. Technology also makes it easier to outsource HR activities to specialist
service providers by enabling service providers to have real-time, internet-based
access to the employer‟s HR database.