Introduction To Electronic Human Resource Management Commerce Essay Example
Introduction To Electronic Human Resource Management Commerce Essay Example

Introduction To Electronic Human Resource Management Commerce Essay Example

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  • Pages: 15 (3934 words)
  • Published: July 14, 2017
  • Type: Research Paper
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Since the mid-1990s, organizations have been increasingly using electronic Human Resource Management (HRM) systems, also known as e-HRM, digital HRM, and web-based HRM. The widespread availability of the Internet has greatly simplified the adoption and utilization of e-HRM in recent times. Studies conducted by HR consultants consistently indicate a rising trend of organizations incorporating e-HRM into their operations.

CedarCrestone (2005) states that e-HRM is becoming more widespread and could bring about substantial transformations in organizations. This trend is also supported by anecdotal evidence from practitioner studies (Anonymous, 2001). It should be emphasized that the changes in HR's role within the organization and the adoption of e-HRM are interrelated and should not be considered as separate issues (Gardner et al.).

According to research, it is important for organizations to align the implementation of e-HRM with their strategic needs, particularly in

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terms of HR redesign. However, there is a lack of comprehension regarding this alignment. Therefore, when assessing the acceptance of e-HRM systems, it is crucial to consider the perception that some may view it as an attempt by the organization's strategic level to assign operational HR tasks to individual managers.

Over the past decade, the Internet has greatly influenced Oman's society and economy. It has had a significant impact on how organizations are managed, particularly in terms of human resource practices and strategies for attracting and retaining employees. In today's competitive economy, these strategies have become crucial as organizations heavily depend on their workers' knowledge, skills, abilities, and other qualities (KSAOs). Furthermore, the Internet has enabled greater collaboration, connectivity, and adaptability within organizations to meet the evolving needs of their workforce.

The introduction of e-HR systems has revolutionized job applications,

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job-related benefits handling, and web-based training for improving knowledge, skills, and abilities (KSAs). HRM has embraced various information technology types like HRIS, HRMS, HRDIS, and the popular e-HR. In today's business environment characterized by disruptions such as mergers and downsizing, IT utilization by HRM is crucial. To effectively plan and manage workforce allocation and reconfiguration while nurturing a skilled workforce, HRM executives need precise real-time information. Analytics generated from IT systems enable HR professionals to align management goals with employee objectives and corporate strategy to develop strategic plans that produce measurable outcomes while proactively addressing change. Information engineering advancements have enabled efficient handling of KSAs by HRM professionals to showcase how it positively impacts a company's financial performance.

The utilization of Information and Communication Technologies (ICTs) within Human Resource Management (HRM) departments, which is referred to as e-HRM, is becoming increasingly vital. It converts traditional labor-intensive tasks into efficient actions that offer companies a competitive edge by enabling them to predict and capitalize on environmental changes. However, there is an absence of clear definitions for e-HRM. The existing definitions primarily concentrate on how the internet aids HR policies and activities. According to these definitions, e-HRM can be defined as the employment of information technology to connect and support at least two individuals or corporate actors in their collaborative execution of HR activities. This definition highlights various crucial aspects of e-HRM.

At the start, e-HRM uses information technology in two ways: Firstly, technology is needed to connect actors who are not physically together and allow them to interact, whether they are in the same room or on different continents. In this sense, technology serves as a medium for

connection and integration. Secondly, technology supports actors by partially or even completely replacing them in performing HR activities. Thus, information technology also acts as a tool for task fulfillment. The planning aspect emphasizes the systematic and anticipated use of information technology.

The collaborative participation of multiple actors in undertaking activities highlights the inclusion of HR activities as an additional characteristic, emphasizing interaction and networking. The concept of e-HRM being a multilevel phenomenon acknowledges the involvement of individual actors as well as corporate actors such as groups, organizational units, and entire organizations, who interact in performing HR activities. In addition to e-HR(M), there are other concepts that also pertain to the same phenomenon. Commonly accepted terms include virtual HR(M) (e.g.).

, web-based HR (M) (e.g., Ruel et al., 2004) or business-to-employee ("B2E") (e.g., Huang, Jin, ; A; Yang, 2004).

"Virtual HRM" is the term used to describe technology-mediated networks of various internal and external actors that provide HR services to a company without the need for a traditional HR department, making it "virtual." E-HRM also includes less advanced forms of technology application, such as the joint participation of a traditional HR department and an applicant in an application process via the Internet. "Web-based HRM" combines this concept with Internet technologies.

E-HRM is primarily web-oriented and includes technologies like networked ERP systems. "Business-to-employee" focuses on the internal roles of line managers, HR professionals, and employees. On the other hand, e-HRM encompasses additional actor classes such as applicants and consultants. In summary, these terms highlight important aspects of the same phenomenon but with slightly different connotations.

Hence, to comprehensively cover all relevant aspects, the term e-HRM is used. The primary definition of HRM

provided by many scholars is "the management of people who work in an organization" (Gomez-Mejia, Balkin & Cardy, 2001). Another common definition of HRM specifies that it is the "top management of the corporation" as the sole employer of the HRM staff (Renckly, 1997). Based on this concept, HRM's role is to effectively establish, develop, maintain, and communicate personnel policies throughout the entire company, and therefore, to represent, assist, advise, and consult with the employees of the organizations.

The definition of HRM varies depending on the perspective. Some define it from an employer's standpoint, emphasizing that it should prioritize the best interests of top management. Others define it from a relationship perspective, focusing on managing the relationship between employees and the organization. Another viewpoint defines HRM as an organized learning experience aimed at improving job performance and growth. As HR departments increasingly adopt web-based technology, there is a need for more research on the use of electronic HR management (e-HRM), particularly in employee self-service (ESS) applications that allow employees to access and maintain their personal HR information online.

There is a growing trend called managerial self-service (MSS) which allows directors to access various HR tools and information online (Gueutal, 2003). With MSS applications, managers can complete many HR-related tasks including compensation management, performance management, staffing, and employee development (Gueutal, 2003). Another term for these tools used in an organization is human resource information systems (HRIS), which Kavanagh and Thite (2008) define as "the system used to acquire, store, manipulate, analyze, retrieve, and distribute information regarding an organization's human resources." Lepak and Snell (1998) mention the four 'pressures' of virtual HRM.

In essence, HRM sections are required to prioritize

strategic inquiries and be adaptable in terms of policy and practices. Furthermore, these sections should operate efficiently while being mindful of costs. Lastly, HRM sections should be service-oriented towards both management and employees. In summary, HRM sections must be strategy-focused, flexible, efficient, and client-oriented simultaneously (Lepak and Snell, 1998) (Ruel et al.).

The aspect highlighted in 2004 that is covered well above but interesting to explain further is the changing nature of the employment relationship. With a shortage of labor in the market during the economic upturn of the 1990s, society becoming more individualized, and citizens (including employees) having higher education degrees, the balance of power in the employment relationship has shifted towards employees who want to control their own career paths. According to Ruel et al. (2004), moving towards e-HRM can support this development. This aspect aligns with earlier mentioned drivers like improving service for internal clients, but also has a societal impact.

According to a study conducted by Ruel et al (2004), it is important to recognize that improving a company's global orientation can be a strong motivation to implement e-HRM. Theoretical arguments propose that the goals of e-HRM include reducing costs, improving HR services, and enhancing strategic orientation (Brockbank, 1997; Lepak and Snell, 1998; Stanton and Coovert, 2004). However, few empirical findings support these goals with the emphasis on globalization as a driving force for e-HRM in large international organizations. These findings also indicate that these goals are not clearly defined in practice, with e-HRM primarily focusing on cost reduction and HR service efficiency rather than strategic orientation of HRM (Gardner et al, 2003; Ruel et al, 2004; Ruta, 2005). Enhancing HRM effectiveness is

often mentioned as a contribution to firm performance (see, for example, Kane et al, 1999; Ostroff and Bowen, 2000; Wright et al, 2001).

Over the past decade, the HRM literature has shown that implementing progressive HR practices leads to improved firm performance (Wright et al, 2005; Hope Hailey, 2005). A groundbreaking study by Huselid (1995) demonstrated that a set of HR practices known as High Performance Work Systems were associated with reduced turnover, increased accounting profits, and higher firm market value. Since then, numerous studies have attempted to empirically establish the linkages between HR practices and firm performance (see comprehensive reviews by Delery and Doty, 1996; Ostroff and Bowen, 2000; Boselie et al, 2001; Tsui and Wang, 2002; Wright et al, 2005). For example, MacDuffie (1995) discovered that bundles of HR practices were correlated with productivity and quality in his study of car assembly plants.

The study by Delery and Doty (1996) found significant links between HR patterns and accounting net incomes in a sample of Banks. Similarly, Youndt et al. (1996) discovered that specific combinations of HR patterns in their sample of manufacturing firms were associated with operational performance indicators. Recent research conducted by Batt (2002) examined the relationship between HR patterns, employee quit rates, and organizational performance in the service sector. The study revealed that call centers that emphasized high skills, employee engagement, and HR incentives such as employment security experienced lower quit rates and higher sales growth.

Problem Statement

One of the main objectives outlined in Oman's Vision 2020 is to enhance its human resources. The significance of Human Resource Development (HRD) has been given priority in Oman's consecutive Five-Year Development Plan. During the economic conference

held in Muscat in June 1995, His Majesty stressed the importance of active participation from the private sector in economic development and achieving national goals.

In Oman, the significance of developing national human resources is acknowledged as an essential part of overall development. His Majesty Sultan Qaboos Bin Said emphasized that "Development is not a goal in itself; it exists for building man, who is its means and maker. Therefore, development must not stop at the achievement of a diversified economy. It must go beyond that and contribute to the formation of citizens who are capable of participating in the process of progress and comprehensive development" (Vision 2020 Conference, June 1995). This recognition arises from various factors such as reduced reliance on oil resources, decreased dependence on foreign workers, Omanization efforts, successful privatization programs, diversification, industrialization, technological innovation, and an increasingly competitive global market.

Electronic human resource management is crucial for the development of human capital and essential for businesses in Oman to meet the goals of Vision 2020. However, implementing effective e-HRM is challenging for companies in Oman, as it is a new concept for them. Henson (2005) emphasizes that workforce and technology are vital components for HR operations today. HRM is responsible for managing and developing the workforce, so it must address factors and trends that drive workforce changes. Researchers in the 21st century recognize the significant workforce crisis caused by the aging population in industrialized countries (Dychtwald, Erickson & Morison, 2006), which leads to an unprecedented shift in the age distribution of the general population and labor force.

Research Question:

  • Does the use of an e-HRM

tool impact the e-HRM map?

  • Is there a correlation between e-HRM tools and HRM map?
  • Is there a relationship between HRM map and overall performance in e-HRM pattern?
  • Research Aim:

    • The main aim of this survey is to investigate the effectiveness of e-HRM in the oil industry in Oman.
    • To examine the relationship between e-HRM tools and HRM map.
    • To explore how e-HRM tools influence HRM maps.
    • To assess the impact of e-HRM on overall company performance.

    Significance of the Study

    This survey will provide human resource professionals with a more effective way to implement HR functions in the oil industry in Oman. It will also identify e-HRM features that deserve attention and resources from HR practitioners and organizations. This comprehensive analysis of e-HRM features can also serve as valuable tools for management to make decisions regarding future adjustments to their e-HR system and the implementation of new systems. From a practical perspective, performance outcomes, whether generated by specific business divisions like HR or by organizations as a whole, reflect an organization's capabilities in implementing competitive strategies and tools, as well as aligning its resources and goals.

    In order to effectively manage IT-related issues and benefit from the use of e-HRM, HRM practitioners need to establish and learn the relationships between the usage of e-HRM system, the perceived importance of e-HRM characteristics, HRM's functional performances, organizational performances, and the

    perceived importance of the dimensions of organizational performances. This study focuses on the oil industry in Oman, but its findings can also be applied to other organizations such as education and manufacturing to enhance the effectiveness of online human resource management.

    Scope of the study

    This study specifically investigates the impact of technology factors and the implementation of HRM through online platforms on HRM effectiveness.

    There are additional opportunities for researchers to investigate the effectiveness of e-HRM in Oman. In the future, they can incorporate the strategic aspect of organizations along with these variables. Strategic factors such as organizational goals and objectives can be explored further. Additionally, technology factors such as system implementation can also be included.

    Study Limitations

    One of the main issues in this study concerns the sample size.

    This survey has the potential to include a larger sample size, but there are restrictions that prevent it. The limited amount of time available to the researcher forces them to focus on a few select houses for this thesis. Additionally, there is a shortage of funds for this research, leading the researcher to use their own money to conduct the study. As a result, they are unable to cover a wide area or include many more houses for analysis.

    Administration of the survey: Chapter two: Literature Reappraisal

    Theoretical positions

    There is an ambiguity surrounding theories, models, and other conceptualizations in the literature. Only a small portion of the studies rely on theoretical foundations. The employed theories vary widely, often using multiple perspectives in an eclectic manner. The predominant focus is on micro-level theories of psychological and behavioral influences. Examples include attribution theory and correspondence inference theory (Elgin

    & Clapham, 2004), the attraction-selection-attrition and similarity-attraction paradigm (Dineen, Ash, & Noe, 2002), change management theories (Ruta, 2005), and organizational citizenship behavior (Huang, Jin, et al.).

    Various theories are used to explain individual perceptions and reactions in e-HRM, including privacy theories (Harris, van Hoye, & Lievens, 2003), procedural justice theory (Dineen, Noe, & Wang, 2004), signaling theory (Cober, Brown Levy, & Cober, 2003), and social cognitive theory (Williamson, Lepak, & King, 2003). These theories are complemented by a learning theory that compares instructor-led and web-based learning (Coppola & Myre, 2002). Additionally, information systems research provides theories such as the technology acceptance model (Huang, Yang, Jin, & Chiu, 2004), the integrated theory of acceptance and use of technology (Ruta, 2005), and the theory of serviceability (Williamson, Lipak, & King, 2003) to address individual reactions and usage issues.

    Additionally, the use of a conceptual IT-framework is employed to construct e-HRM impacts on HR-professionals (Gardner, Lepak, & Bartol, 2003). One particular study adopts a microeconomic approach to explain e-employment markets (Nissen & Gates, 2004). In summary, current empirical research in e-HRM is predominantly non-theoretical. The theories utilized are focused on the micro-level, varied in nature, and often applied in an eclectic manner.

    Interestingly, the recognized macro-level theories of HRM (Wright & McMahan, 1992) were not considered.

    HRM Effectiveness

    To know the effectiveness of e-HRM, HRM functions are relatively clear. The American Society for Personnel Administration (ASPA), the predecessor to SHRM, first defined HRM functions in 1975 as the technical competencies in the following areas (HRCI, 2006):

    • Employment, arrangement and workforce planning.
    • Training and development.
    • Compensation and benefits.
    • Health, safety and security.
    • Employee and labor relations.
    • Personnel research.

    Smith and Mazin (2004) reports

    that the scope of the HRM functions covers the following areas of functionality:

    • Employee selection
    • HR policies, performance management
    • Performance Management
    • Training and development
    • Employee relations and retention
    • Compensation
    • Benefits
    • Regulatory Issues
    • Workforce force and investigation
    • Termination and discharge

    Researchers also observed other dimensions to HRM as well, for example, Huselid, Jackson, and Schuler (1997) report that HRM effectiveness has two essential dimensions. The first, the technical HRM, includes the delivery of HRM basics such as recruiting, compensation, separation etc.The second aspect of HRM, known as strategic HRM, involves presenting HR services in a way that directly supports the implementation of the company's strategy.

    Other academics and HRM professionals also analyze HRM functions from different perspectives, such as the areas of activity (Nadler,1990) and the areas of service provided. Nadler (1990) categorizes HRM functions into three specific areas of activity: (1) training, which involves learning related to the current job, (2) education, which involves learning to prepare the individual for a different but identified job, and (3) development, which involves learning for personal growth not specifically related to a current or future job. This further emphasizes the idea that HRM is driven by learning.

    Implementing e-HR

    Kehoe, Dickter, Russell, and Sacco (2005) argue that an organization's overall culture and HRM strategy determine how organizations will implement their e-enablement systems. The e-enabled programs can be implemented as part of a broader e-enablement of HR processes and systems or independently from other HR processes and systems. It is also possible to implement specific e-enabled assessment applications separately from each other.

    Regardless of the situation, organizations need to establish guidelines regarding the following issues in managing an e-enabled HR environment:

    • Risk management related to employment discrimination
  • Buy versus build and the roles of internal HR IT and third party suppliers
  • HR expertise versus automation in the e-enabled appraisal process
  • Whose functions the system will be designed to support
  • Ownership
  • The integration of e-enabled appraisal with other HR systems and processes
  • "Free market" versus "regulated" procedures
  • E-recruitment

    In terms of the organization's objectives, the primary goal of the recruitment process is to attract potential applicants (opportunities) who have the KSAOs needed to meet the requirements of organizational roles. Therefore, organizations are increasingly using the Internet to advertise job openings and attract qualified opportunities. The web-based advertisements often provide opportunities with information about (a) job vacancies, (b) job descriptions, (b) the organization's culture and its "brand identity," and (d) the incentives (e.g., salary, fringe benefits, learning opportunities, promotion opportunities) offered to its employees.

    Interestingly, it has been estimated that 100% of large houses currently utilize the Internet to identify job vacancies, while 82% use intranet systems to post vacancies or place qualified employees within the organization (Cedar, 2002). For example, organizations have developed advanced web-based recruiting systems to share information about job opportunities and allow applicants to complete online applications (Stone, Johnson, Navas, & Stone-Romero, 2005; Stone, Lukaszewski, & Isenhour, 2005). Additionally, organizational intranet systems are often used to search employment records to determine if the skills, knowledge, abilities, and other characteristics (KSAOs) of current employees align with the requirements of vacant or soon-to-be vacant roles. These systems can

    automatically generate lists of qualified employees for managers and notify individuals about new job opportunities. Furthermore, these same systems can send messages to employees to inquire about their interests in job openings.

    Overall, e-HR-based recruiting systems are believed to offer a greater range of opportunities compared to traditional recruiting systems (Gueutal & Stone, 2005; Stone, Lukaszewski et al., 2005). Internet-based e-HR systems are also utilized to provide job applicants with virtual previews of organizations. For example, certain organizations use "real-time" cameras to give applicants a glimpse into the daily work life within the organization. Additionally, other organizations (e.g.

    Cisco Systems and other companies use e-recruiting systems to allow job applicants to make connections within the organization. This helps applicants gain valuable information about the benefits and challenges of working for the company. By accessing information about job requirements and incentives, applicants can determine if their needs can be met and if they have the necessary skills and qualifications. While many organizations believe that e-recruiting systems allow them to reach a larger pool of candidates with unique talents and abilities, research shows that these systems mainly attract a higher number of applicants but not necessarily higher quality or best-suited candidates compared to traditional methods (Chapman & Webster, 2003; Galanaki, 2002). McManus and Ferguson (2003) argue that the use of e-recruiting systems may impact the characteristics of new hires, as certain types of candidates are more likely to use these systems, such as job hoppers or experienced internet users. This in turn may influence the overall composition of the workforce.

    According to McManus and Ferguson (2003), Galanki (2002), and Zusman and Landis (2002), there are age, gender, and cultural differences

    in reactions to and use of online recruiting sources. Therefore, organizations should not solely rely on online recruiting as their exclusive source of recruitment.

    E-Selection

    Kehoe, Dickter, Russell & Sacco (2005) state that there are three purposes for HR e-enablement: minimizing costs, maximizing the use of human capital, and enabling sustainability. Sustainability refers to an organization's willingness and ability to not only maintain an e-enabled system but also adapt it to meet changing needs and take advantage of technological advancements and improvements.

    The purposes for e-enabling selection are no different from the above. When maximizing the use of an organization's human capital, organizations must incorporate two measures into the e-enabled selection system: the evaluation of each individual's "capital", which includes text scores, interview evaluations, resume quality indices, background check results, drug test results, and any other quantifiable assessment of skills and experiences.

    ) , and (2) "the extent to which the procedure consequences in determinations that maximize the use of that capital" (for illustration, ratio or difference between mean trial tonss for selected campaigners to mean trial tonss for all campaigners, per centum of campaigners who satisfy minimal demands such as for drug trials or background cheques, keeping rates, post-hire, new hire public presentation direction results.. ..etc.). Organizations besides need to enable sustainability by stressing on: clear ownership, funding scheme, concern part, user satisfaction, and professional support. As for the execution, Kehoe, Dickter, Russell and Sacco studies that more and more organisations presents prefer to get a seller's e-selection system because of the appealing characteristics of specialised and flexible system solution merchandises available on the market.

    E-Performance Management

    Researchers have previously compared online disposals and traditional paper-and-pencil (P&A;P)

    disposals of organizational studies (Thompson et al., 2003), psychological concepts assessments (Cole et al., 2006), upward feedback evaluations (Smither et al., 2004), and item responses to a 3608 appraisal (Penny, 2003).

    While researchers have studied the differences between online and P&P groups' responses to choice tools (Richman-Hirsch et al., 2000), there has been no research comparing online and P methods in the context of performance assessment (PA). PA is not only a measurement tool but also a social and communicative process where a supervisor assesses an employee's behavior at work and provides evaluations and feedback (Murphy and Cleveland, 1995). This study aims to bridge this gap in the existing literature by examining how an online PA system affects employees' reactions to their performance assessments.

    We believe that HR directors need to know the answer to this important applied research question before implementing e-HRM/HRIS PA tools. While Cardy and Miller (2005) argue that "the level of performance made possible by technological advancement has changed the standard for acceptable.

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