IT and HRM 1

The Role of Information Technology In Human Resource Management

 IT and HRM 2

Executive Summary

This dissertation set out to investigate the roles played by information technology in

human resource management. In achieving this, it adopted a qualitative research methodology

that narrowed down its scrutiny on one company: Wipro Limited, an IT company based in

Bangalore, India but with distribution centres in over seventy countries. By using questionnaires

as well as direct retrieval of data from the company official websites and other authentic sources

the dissertation found out that indeed IT plays a huge role in shaping an organization’s HRM

strategy and by extension the overall competitive strategy. Essentially, Wipro employs a wide

range of IT-powered HRM programs which include Six Sigma, Employee Performance

Management (EPM), Software as Service (SaaS), and Business Process Outsourcing (BPO)

among others, all which assist in the streamlining of the company’s HRM and IT strategies as

part of mission to being the leading IT products distributer in the whole world. Even so, the

study finds the integration of IT tools with HRM processes is costly and usually consumes a lot

of time. In this regard, organizations can only start enjoying its benefits once a full

implementation is realized. The study also, recommends for future research particularly in the

areas of appraisal of the exact cost-benefits analysis as well as the time frame within which

organizations can fully implement IT-HRM integrated services.

 IT and HRM 3

Table of Contents

Executive Summary ........................................................................................................................ 2

Acknowledgements ........................................................................Error! Bookmark not defined.
1.0. CHAPTER 1: INTRODUCTION ............................................................................................ 5
1.1. Overview .............................................................................................................................. 5
1.2. Structure of the Dissertation ................................................................................................ 6
1.3. Problem Statement ............................................................................................................... 8
1.4. Aims and Objectives .......................................................................................................... 10
2.0. CHAPTER 2: LITERATURE REVIEW ............................................................................... 11
2.1. Introduction ........................................................................................................................ 11
2.2. General Overview of the Realm of HRM .......................................................................... 13
2.3. Modern Trends in HRM..................................................................................................... 15
2.4. IT and Hiring/Staffing........................................................................................................ 16
2. 4. IT and Employee Training ................................................................................................ 19
2.5. IT and Employee Development ......................................................................................... 21
2.6. IT and Employee Rewarding ............................................................................................. 24
3.0. CHAPTER 3: METHODOLOGY ......................................................................................... 25
3.1. Introduction ........................................................................................................................ 25
3.2. Research Design................................................................................................................. 27
3.3. Research Context ............................................................................................................... 28
3.4. Participants and Sampling Criterion .................................................................................. 29
3.5. Data Collection .................................................................................................................. 31
3.6. Rationale for Questionnaire Items ..................................................................................... 33
3.6. Data Analysis ..................................................................................................................... 34
3.7. Ethical Issues ..................................................................................................................... 35
3.8. Study Limitations ............................................................................................................... 36
4.0 CHAPTER 4: RESULTS ........................................................................................................ 37
4.1. Introduction ........................................................................................................................ 37
4.2. Company Profile ................................................................................................................ 37
4.3. Overview of the Questionnaires Responses ....................................................................... 39
4.4. Hiring ................................................................................................................................. 41
4.5. Employee Training and Development ............................................................................... 43
4.6. Employee Rewarding System ............................................................................................ 44
4.7. General Results .................................................................................................................. 45
 IT and HRM 4

5.0. CHAPTER 5: DISCUSSIONS .............................................................................................. 47

6.0. CHAPTER 6: CONCLUSIONS and RECOMMENDATIONS ............................................ 52
7.0. REFERENCES ...................................................................................................................... 55
8.0. APPENDICES ....................................................................................................................... 60
8.1. Study Questionnaire ........................................................................................................... 60
The Role of Information Technology in Human Resource Management .......................... 60
Contact Information: ................................................................................................................. 61
 IT and HRM 5

1.0. CHAPTER 1: INTRODUCTION

1.1. Overview

The Human Resource Management (HRM) is undeniably the most important department

in an organization. This is because it encompasses the critical processes of hiring, training,

development, and rewarding of the most critical organizational resource of human capital

(Nagadevara, Srinivasan & Valk, 2008). The extent that these tasks leverage the smooth running

of an organization’s operations cannot be downplayed given they directly influences the overall

utility of the most important organizational resource – human capital (Barney & Wright 1998).

In this regard, stakeholders as well as theorists alike have all along explored a gamut of

headways aimed at streamlining these critical tasks. No doubt such efforts a real-time as they are

aimed at revitalizing the HRM strategies adopted by organizations to mitigate contemporary

organizational and marketplace challenges such as absenteeism, employee turnover, and pressure

from labor unions among others (Florjancic, Bernik, & Bernik, 2003). It is for these reasons that

the realm of Information Technology (IT) has emerged as the most explored field capable of

inducing efficiency in HRM processes (Bernik et al, 2007). For example the realm of knowledge

management, itself a facet of IT (Wang & Noe, 2010), and as commonly applied in conventional

HRM practices holds that, “[t]he people are the knowledge carriers and the IT enables them to amass

the knowledge, organize it, access it and use it” (Bernik et al, 2007, p.130).

Essentially, the contemporary marketplace has gone global - goods and services produced

in one part of the globe can easily find their way to far destinations courtesy of the gains from

modern IT innovations where buyers and sellers can easily communicate, carryout transactions

through a variety of money transfer services on offer and easily arrange for quick delivery

through a variety of delivery services available online or otherwise (Wang & Noe, 2010). In this

regard, it is only fair to assert that organizations need to work on their internal and external
 IT and HRM 6

communication systems if they are to remain competitive at the global marketplace (Marchand et

al., 2001). No doubt, they can only achieve this through investing in modern IT tools on offer in

the market - this can take a host of processes which goes beyond the mere launching of

expensive IT-powered HRM programs (Wang & Noe, 2010). As a matter of fact, organizations

should engage highly qualified and motivated personnel capable of enabling the maximum

utilization of modern IT-enabled HRM tools. Again, organizations should formulate practical

plans of action with realistic objectives whose achievability can be realized either as short-term

goals or even as long-term goals that can easily be measured and reported (Marchand et al.,

2001).

This paper intends to carryout an explorative qualitative research methodology to find out

the roles of Information Technology (IT) in the management of human capital. In doing this, the

dissertation adopts a two-pronged approach where it will first conduct an intensive literature

review of the existing research work on the study topic and then it adopts a case study approach

on an IT-based multinational company that has its services spread across the globe. The selected

study company is Wipro Limited, a Bangalore, India based IT corporation with support centres

in over seventy countries worldwide.

1.2. Structure of the Dissertation

The manner in which a research study is presented and/or reported emboldens the validity

and reliability of its findings. Drawing from conventional wisdom, most research studies are

succinctly and neatly presented so that its audience can easily get a glimpse of what the study’s

main findings are. As a matter of fact, research studies should be structured into various chapters

that clearly delineate how data was collected, where it was collected, who were involved in the

actual collection, how it was analyzed, what are the findings, what are the implications of such
 IT and HRM 7

findings vis-à-vis the study topic, the conclusions, and lastly the literary works consulted in the

overall preparation of the study. In a nutshell, these chapters are meant to induce clarity and easy

flow of ideas, hence making it easy to read and understand.

Essentially, the presentation of the various sections as well as the findings and the

discussions of this dissertation are done in a manner that clearly delineates the roles played by IT

tools in the core tasks of HRM. In this regard, the various chapters and sub-chapters recruitment

of new employees, training and orientation of such employees, development of employees skills

and knowledge in respect to their current and future job tasks, as well as the evaluation of

employees potentials and rewarding and/or reinforcing of such.

Precisely, this dissertation is structured into a number of chapters which are successfully

built from each other. They are:

1) Introduction – it is the most informing part of the dissertation given that it gives vivid

descriptions about the study topic, the study company, the aims and objectives as well

as the research problem.

2) Literature review – offers a comprehensive literary analysis of the existing studies

touching on the study topic. It acts as a strong platform on which the dissertation

findings and discussions were based.

3) Methodology – offers a step-by-step breakdown of how the study was conducted,

where it was conducted, who were involved, what methods of collecting, analyzing,

and reporting data were used as well as the limitations experienced during the study.

4) Results – provides a succinct report of the data collected during the study – the results

are broken down into units for easy understanding.

5) Discussions and theory construction – provides a detailed discussion of the study

 IT and HRM 8

results. The discussions are linked to various theoretical postulations on the realm of

HRM.

6) References – details all sources consulted in the overall preparation of the research

proposal well formatted in Harvard style.

1.3. Problem Statement

Many research studies have been dedicated to studying the roles that IT plays in various

aspects of human lives (Florjancic et al, 2003). As it will be seen later in the literature review

chapter, there is substantial evidence from existing literary works discussing the impacts of

blending IT tools with HRM processes in an organization (Bernik et al, 2003; Florjancic et al,

2003; Laudon & Laudon, 2003). In this regard, it is conventionally held that IT tools occupy a

prime position in the overall modernization and strengthening of core HRM processes to levels

capable of meeting modern organizational and marketplace challenges (Florjancic et al, 2003). It

is conventionally held that since its inception the field of IT has significantly revitalized how

organizations manage their human capital as it has brought with it precision, speed, coherence,

reliability, as well as efficiency in how key HRM processes are carried out at the organizational

level (Bernik et al, 2003). Even so, as Nagadevara et al (2008) argue, the state of events in HRM

among organizations shows that these benefits are yet to be fully utilized.

For instance, many organizations still run the same HRM programs that have been in

operations for decades despite the apparent realization that the contemporary organizational and

marketplace challenges have greatly changed (Nagadevara et al, 2008). It is a reality that despite

the obvious gains brought about by efficient HRM departments there is still a serious imbalance

between the supply and demand forces in regard to the number of qualified HRM experts the

market can offer at any given time against the organizational capability to absorb such (Moore &
 IT and HRM 9

Burke, 2002). As a matter of fact, there is a serious problem of lack of enough HRM personnel

endowed with the appropriate IT skills to fill the available opportunities. An industry analysis

concede that this is a real challenge that is facing organizations in both developing and

developed countries alike particularly among the large capital intensive organizations with

operations that spans many jurisdictions (Nagadevara et al, 2008).

Precisely, though it is evidential that there is a significant number of research studies

discussing the impacts of IT on HRM, very little concern has been given to the credible analysis

on how different types of organizations (profit and non-profit) can entrench IT tools into their

HRM processes with substantial success. Again, though it is worth noting that a number research

works have been dedicated to the evaluation of the costs involved in implementing IT-enabled

HRM programs, very little concern has been given on the cost-benefit analysis of entrenching IT

tools into mainstream HRM processes particularly among multinational organizations with

complex IT and HRM processes spanning several countries. Moreover, some of the existing

research studies’ findings do not meet pertinent validity test probably due to a number of glaring

hitches in the way they were conducted such as the length of time it took to conduct them, nature

of study sample, methods of sampling of study participants, methods of data collection and

analysis, method of reporting as well as the credibility of the persons who carried out the

research. In connection to these validity snags the findings presented by such studies may not be

reliable when making critical decisions regarding how best organizations can switch from

traditional HRM practices to IT-supported ones.

In essence, this phenomenon is certainly a sad one given that it is taking place at the

backdrop of a wide range of modern innovations made in the realm of information technology. In

regard to this, it may be wondered why organizations continue to experience gross inefficiencies
 IT and HRM 10

with their HRM departments despite of all the evidential benefits from IT. No doubt, this is a

pertinent question whose answer(s) demands an empirical analysis of closely collected data from

a large organization (probably a multinational entity whose operations spans a number of

countries) with complex IT-enabled HRM programs. Basing on the complexities inherent in the

HRM realm, it is only fair to assert that there may be a host of causes leading to this

phenomenon. Even so, an analytical view of a number of possible causes to this trend adopted by

this dissertation leads to the conclusion that it is partly brought about by lack of full utilization of

the IT tools on the part of organizations. Perhaps this is as a result of biased or even inadequate

reporting on the part of authors and researchers alike on this sensitive realm of organizational

management. These generalizations will be fully elaborated later in the discussions chapter in

this study.

Consequently, this study embarks on a mission to fill these glaring empirical gaps by

narrowing down its concern on an IT-based multinational company whose operation spans more

than seventy countries. It does so by adopting a closely coordinated explorative qualitative

research design that utilizes a two-pronged data collection methodology on twenty senior-level

and long serving employees of the study company.

1.4. Aims and Objectives

The main aim of this research study is to fill the empirical gap left by prior studies

particularly in delineating the cost-benefit analysis of entrenching IT tools into the mainstream

HRM processes particularly among multinational organizations with complex IT and HRM

processes spanning several countries. Moreover, it will seek to address some of the existing

research studies’ findings such as pertinent validity snags that have been noted in some prior

research studies. As hinted in the title, this research study main objective is to establish through
 IT and HRM 11

exploration the roles played by IT tools in the management of human capital. In essence, from

this main objective a number of other smaller objectives can as well be drawn. In this regard the

study also seeks to explore the following objectives:

(a) Analyze empirical evidence collected from the study company in view of establishing the

costs (benefits versus cost) involved in restructuring HRM departments to accommodate

IT tools.

(b) The relationship between the study company’s HRM and IT departments with view of

establishing IT tools are applied in key HRM processes.

(c) Juxtapose the study company’s core HRM strategies before the entrenchment of the IT

tools vis-à-vis

(d) The possible changes in human resource management when the information technology

is integrated in the work processes.

(e) The role of information technology in determining the value of HR services.

(f) Time needed for human resource to appreciate the new information technology processes.

2.0. CHAPTER 2: LITERATURE REVIEW

2.1. Introduction

So as to shed more light on this dissertation’s topic this chapter adopts a “what should

organizations do to induce efficiency in their HRM departments” approach. Ideally, this

approach enables the chapter to consult several theories and notions regarding how IT tools can

best be utilized in HRM processes to bring about efficiency and a sense of focus in the pursuit of

the set organizational goals. To achieve this, the chapter utilizes a wide range of literary sources

(at least thirty). Essentially, the chapter is structured into a number of sections that help to

address the four main functions of HRM, that is, hiring, training and orientating, motivation and
 IT and HRM 12

development, and rewarding. These sections include:

a) Introduction – gives a general overview of the entire chapter and also delineates

important issues to be discussed in the chapter.

b) General overview of the realm of HRM – gives a brief analysis of existing literature on

the basic elements espoused by HRM with a keen concern accorded to the functions of

HRM in an organization.

c) Modern trends in HRM – presents an intensive literary analysis of a wide range of

transformations brought about by modern IT innovations in the realm of HRM.

d) IT and hiring – delineates the roles of IT tools in the hiring and staffing needs of an

organization.

e) IT and employee training – offers an analytical account on how IT tools have impacted

the process of orientating and training of employees.

f) IT and employee development – gives a literary analysis on how IT tools influence

employee enrichment practices.

g) IT and rewarding – accords a substantial review on existing literature regarding the roles

of IT in evaluating organizational strength/weaknesses and rewarding/reinforcing those

who deserve such.

All realms of human life have in one way or the other been influenced by the emerging

technologies particularly, in the way information is gathered, processed, shared and managed

(Bartlett, & Ghoshal, 1997). In essence, and as Baloh and Trkman (2003) assert, the gains made

in the IT realm particularly on internet services have positively impacted on the “way of life” of

the human beings, as today people can use IT in a wide range of their normal daily activities

such as learning, work, leisure, networking, socializing, as well as communication with much
 IT and HRM 13

ease than ever before.

Perhaps this phenomenon can better be explained by Barley (1996) opinion that, “the

future will depend more on brain than brawn” as organizations are switching off from labour

intensive operations to capital intensive operations, and indicator that “… prosperity is likely to

hinge on the use of scientific and technical knowledge, the management of information and the

provision of services (p. xvii). From this postulation it is arguable that the future of HRM solely

rests on how best organizations invest in transforming their HRM departments from the

traditional practices that involved manual and sometimes lengthy processes of hiring, training,

development, and rewarding to vibrant outfits capable of addressing the 21st century human

capital management challenges.

2.2. General Overview of the Realm of HRM

The realm of HRM is multifaceted (Jackson, & Schuler, 1997). It encompasses a wide

range of organizational tasks such as hiring, training, motivating, and rewarding (Huselid,

Jackson, & Schuler, 1997; Nagadevara et al, 2008). In their respective studies, Bartlett and

Ghoshal (1997) and Barney and Wright (1998) assert that, HR experts in an organization play the

crucial roles of making and implementing the critical policies on the staffing needs of the

organization and how such needs can be fulfilled. In essence, HR experts directly participate in

the overall process of engaging new employees, taking them through the set organizational goals,

imparting them with the necessary skills and knowledge to achieve such goals, identifying

potential organizational shortcomings and devising methodologies for mitigating them,

identifying hardworking employees and devising methodologies for regarding them, and acting

as the link between the junior level employees and their senior level counterparts (Barney &

Wright, 1998; Nagadevara et al, 2008).

 IT and HRM 14

Such decisions are very critical to organizations as they directly impact on their

competitive advantage (Nagadevara et al, 2008). This is true given that the human capital is the

most important organizational resource that plays the core role of leveraging other resources

towards the achievement of the set goals (Huselid, Jackson, & Schuler, 1997; Bartlett & Ghoshal

1997; Barney & Wright, 1998).

Perhaps the roles played by the HRM department in an organization can better be

described using the words of Nagadevara et al (2008) who assert that:

Human resources are not only the drivers and principal value creators of the output of

the knowledge industry, but they are also the intellectual capital or the ‘infrastructure

investment’. Therefore, attracting, training, retaining and motivating employees are the

critical success determinants for any knowledge based organization (p.1).

Indeed the HRM “arm” of an organization encompasses more than just a hiring, training,

and rewarding entity, it serves as the manufacturer of critical knowledge and skills, disseminates

such knowledge, and most importantly manages such knowledge so that it fulfils the

organizational needs. As it will be elaborated later on in the dissertation HR experts in an

organization acts as the custodians and managers of critical knowledge (whether formal or

informal) and always endeavour to ensure that such knowledge fully utilized for productive gains

(Barney & Wright, 1998). In fact, Baloh and Trkman (2003), Florjancic et al (2003) and Bernik

et al (2003) postulate that one of the most practical ways for organizations to maintain a strong

competitive advantage is through instituting strong HRM teams responsible for among other

things, the constant monitoring of both the external and internal trends that may affect the normal

running of the organization, and most importantly, provide necessary response measures to such

trends.
 IT and HRM 15

2.3. Modern Trends in HRM

A critical analysis of the modern practices of managing human capital employed by

various companies reveals significant changes (Marchand et al., 2001). Today many

organizations have realized that in order to succeed they need to do more than merely hiring

persons with colourful resumes - they need to put in place modern information technology tools

to supplement what their employees can offer (Bartlett, & Ghoshal, 1997). Perhaps this new

trend has been advised by the conventional wisdom that organizational success is largely

determined by how a company organizes its social, human, and information resources rather than

how it invests in material resources (Wang & Noe, 2010). In this regard, organizations need to

integrate their human and information technology capital in a way that will ensure the maximum

sharing of information between employees, as well as the timely reaction and management of

such information (Marchand et al., 2001).

Laudon and Laudon (2003) opine that, contemporary HRM systems must meet the

objectives of the highly dynamic organizational tasks as well as marketplace challenges. In this

regard HRM systems need to be highly flexible, adaptable, enduring, as well as focused so as to

address these changes (Huselid et al, 1997). In extension, the HRM experts need to grasp modern

professional skills capable of effectively making sound organizational decisions in mitigation of

potential organizational challenges (Baloh & Trkman, 2003). All these prerequisites bear a direct

impact to an organization’s overall competitive edge and hence they need to be addressed with

utmost concern.

Due to these changing organizational trends particularly regarding the HRM realm,

human resource experts need systems capable of handling these new changes as well as other

conventional tasks (Bartlett, & Ghoshal, 1997). In this regard, the realm of Human Resource
 IT and HRM 16

Information Systems (HRIS) has been developed to provide a highly interactive interface that

enjoins IT and HRM processes in an organization (Ngai & Wat, 2006). Precisely, HRIS occupies

a central position in the overall positioning of an organization at the market ladder. This

postulation is based on the espoused notion that, linking key departments in organization helps to

reduce duplication of services, redundancy, and above all it eliminates unnecessary

bureaucracies (Kovach et al., 2002). As a matter of fact, a well coordinated HRIS is capable of

transforming a HR department from a mere administrative unit to a vibrant division forming a

paramount part of an organization’s strategic plans (Ngai & Wat, 2006).

As Kovach et al. (2002) argue applying HRIS practices streamlines the HRM department

hence making it more effective in the contribution of services towards the achievement of on an

organization’s goals. This is possible through the growing technological innovations where new

software capable of handling complex HRM tasks such as hiring and training have been

successfully entrenched into the mainstream HRM practices. For instance, a streamlined HRM

system makes it easy for tasks planning, task equipping, as well as overall workplace

coordination among employees. Ngai and Wat (2006) assert that HRIS imparts a greater control

of HRM practices by making it possible for experts to easily follow through critical

organizational processes. Consequently, through streamlined HRM systems, experts are capable

of diagnosing organizational anomalies and hence embarking on the necessary measures to

mitigate such.

2.4. IT and Hiring/Staffing

Staffing forms one of the critical tasks of HRM (Zane, 2002). Through the application of

proper staffing practices companies can fill positions with the right persons (Davenport, Long &

Beers, 1998). However, when poorly coordinated staffing can be expensive and unyielding. In
 IT and HRM 17

this regard, organizations need to keep databases of academic and job-specific qualifications for

potential employees’ so that when there is a recruitment drive a lot of time is not wasted in trying

to search who is qualified for which position and who is not (Baloh & Trkman, 2003).

Apparently, this is an area that is gaining substantial popularity among large organizations.

According to the Global 500 Web Site Recruiting (2000), 79% of companies in the Global 500

Group were noted to employ IT tools (internet) in their recruiting drives. The trend has been

noted to be on a rapid growth as more organizations continue to embrace modern IT innovations.

Perhaps the benefits of cost cutting, time management, diversity, and efficiency are responsible

for this change (Baloh & Trkman, 2003, p.299).

With the inception of the internet as a form of communication the management of human

capital has taken a completely new shape (Warhurst & Thompson, 1998). Today many

organizations have reverted to outsourcing as an alternative to the traditional methods of

managing human capital – organizations also share the same workers as professionals

(particularly the high qualified) find it difficult to fully commit themselves to a single employer

(Drucker, 2001). This postulation is advised by the notion that organizations engage new

employees purposely to tap in their skills in a more cost effective manner – and hence the

traditional belief that engaging workers directly makes workplace planning and allocation of

tasks easier as HRM experts are spared the hassles of having to spend time and extra resources

coordinating workers stationed at far places (Baloh & Trkman, 2003).

Even so, with the inception of internet organizations’ have found an alternative staffing

solution that is more cost effective than the traditional methods. The new staffing method is

outsourcing. Ideally, outsourcing carried out online with persons who are linked to potential

employers through internet connections can be reached at a short notice by organizations when
 IT and HRM 18

employment opportunities arise is more economical and efficient (Warhurst & Thompson, 1998).

These people who are popularly referred to as “virtual” employees are flexible in their

qualifications and scheduling – they can handle a wide range of tasks at odd hours. Most

importantly, as Warhurst and Thompson (1998) assert outsourcing as well as the reliance on

internet services by organizations has led to the blurring of the boundaries dividing companies

courtesy of the virtual community where organizations are linked to other organizations, the

suppliers, customers, as well as other service providers. From these virtual communities

organizations can save much from labour costs as they only “recruit” when there is the need to

do so unlike in the traditional method of recruiting where workers are mostly engaged on

permanent basis particularly on social benefits as well as healthcare costs (Drucker, 2001).

Again, organizations stand a better chance of tapping in the industry talented persons who find it

hard to work for a single organization on permanent basis (Warhurst & Thompson, 1998).

The concept of using computers as well as telecommunication equipments to carryout

organizational tasks at flexible venues has over the years gained substantial ground among HRM

teams (Baloh & Trkman, 2003). Perhaps this is as a result of the contemporary labour market

trends where organizations have resolved to methods that enhances maximum productivity

(Laudon & Laudon, 2003). Telecommuting entails flexibility on the part of the employees where

they can carryout organizational tasks from anywhere including their own homes (Nilles, 1998).

This is made possible through highly interactive IT systems that allow for both intra and internet

services linking employees and their organizations (Johnstone & Nola, 2001). No doubt

telecommuting leads to higher productivity as employees are able to dedicate themselves to work

chores for relatively long hours than it would be in conventional workplace engagements (Nilles,

1998). Moreover, cases of employees absenting themselves for no good reasons are greatly
 IT and HRM 19

reduced as they tend to gain satisfaction when they draw their own schedules (Telework, 2000).

In the long run, telecommuting helps to reduce employee turn-over rates as employees are

discouraged to look for new opportunities if the current ones are motivating, rewarding, and

flexible (Dash, 1999). Consequently, if employee turn-over is very low then the company

competitive advantage is likely to increase as talented employees are retained for long periods.

2. 4. IT and Employee Training

Part of the core tasks of HRM entails the orientation and training of newly engaged

employees (Alavi & Leidner, 2001). Organizations adopt various strategies in achieving this

objective, for instance the findings of a study carried out by Laudon and Laudon (2003) on the

impact of Executive Information System (EIS) in an organization’s strategic planning indicated

that organizations derive a substantial part of their competitive edge from how best they manage

information. In essence, the creation of information, storage, protection, as well as putting such

information into active use is a critical facet of EIS (Daniels, 2007). Apparently, these processes

of managing information can only be made a reality through a highly unified and interactive IT

system capable of tackling the day-to-day performance of an organization and presenting such

data in meaningful forms to line managers as well as the HRM experts in an organization to

enable for strategic planning and normal decision-making purposes (Choo, 1991).

Such integrative endeavours can be enhanced through the application of the tenets of

HRM as well as sound knowledge management (KM) practices that are espoused by IT practices

(Turk, & Jaklic, 1998). Since it has been advanced that employees’ morale is boosted by the use

of modern IT tools (Skyrme, 1998), organizations can endeavour to create positive and

productive environments that will positively stimulate their employees and reinforce positive

advancement of worthwhile skills and knowledge towards the achievement of the set objectives.
 IT and HRM 20

Literally, how information and knowledge flows from one employee to another in an

organization determines the overall productivity of an organization (Alavi & Leidner, 2001). No

doubt a purposive integration of the best HRM and IT practices can elicit potentially rewarding

results at the organizational level.

A fair number of existing studies support the importance of managing information at the

organizational level (Chen & Huang, 2007; Daniels, 2007; Tokar et al. 2007; Wang & Noe,

2010). This is an indicator that the concept of managing knowledge and/or information is not

new at the organizational level. Indeed the practices of compiling information, and storing it in a

manner that it can be easily retrieved and transmitted has a far reaching history, nonetheless, it is

fair to assert that the knowledge-based management of information is precisely a contemporary

practice. As a matter of fact, (Alavi & Leidner, 2001) assert that practices such as transfer of

worthwhile organizational practices, knowledge audits, benchmarking, as well as personnel

development and appraisal drills are all new practices allied to knowledge management. Both

Rotter (1945) and Bandura (1977) in their respective advancements in social learning theory

opine that, for learning to take place there must be an impulse behind it. In an organizational

context these impulses comes in the form of sound knowledge management practices that

enhances positive stimulation, reinforcements as well as the desire to want to excel as some else

(colleague) did (Owen, 2001).

On his part, Skyrme (1998) opines that knowledge management plays a core role in

keeping the acquired knowledge relevant to organizational challenges. This is very crucial to

HRM given that organizational challenges are dynamic and diversified – rigid HRM departments

are incapable of meeting contemporary organizational challenges. Modern IT equipments and

services ensure that employees are imparted with new and versatile knowledge strands that can
 IT and HRM 21

be applied in a variety of situations.

Perhaps to understand the application of information creation and management practices

in a HRM context it is better to look at it deeply from a social learning theory. In his book Social

Learning Theory, Bandura (1977) offers that for the process of learning to take-off successfully

there must be sufficient and purposive attention to what is being observed. Such attention and

leads to the actualization, retaining, remembrance, and ultimately the comprehension of what has

been learned. Apparently, this can only be achieved if the acquired knowledge is put into active

use and most importantly if real-time efforts are made to ensure that there are clear motives for

engaging in a learning activity. For example, employees should have good reasons for engaging

in collaborative activities at the workplace for them to learn the spirit of teamwork – maybe

because such collaborative activities make work easier or even induce meaning to specific tasks.

In this regard, employees should be made to yearn to fit into their organizational environments

by learning the basic skills and knowledge inherent in the performance of the specific tasks

entrusted to them. When utilized well, IT tools and services can certainly impart these skills and

knowledge among the employees, through the employment of a barrage of work-specific

bonding sessions, training workshops, constant evaluation of employee performance to identify

their strong and weak areas.

2.5. IT and Employee Development

Precisely, IT tools and services can successfully enhance employees’ capabilities to

withstand the social and psychological conditions that characterize their immediate at the

workplace environment particularly if such environments are against universal individual tastes

and preferences (Akers & Jensen, 2010). Given that organizational knowledge and behaviors are

mostly learned through observations, imitation and reinforcements such as reward and
 IT and HRM 22

punishments organizations should plan their HRM departments so that they allow for the smooth

transfer of knowledge from one point to another (Alavi & Leidner, 2001). One way of achieving

such is through the use of internal information systems established for purposes of storing,

organizing, processing, maintenance, as well as sharing of critical organizational information

(Turk & Jacklic, 1998).Most software and hardware tools offer information management

solutions that makes it possible for critical organizational information to be easily accessed by

the employees but also helps to keep such information within the “walls” of an organization

(Drucker, 20010). At the long run, organization gains a competitive edge by inducing efficiency

on its HRM practices as well as by enhancing the security of information (Marchand et al, 2001).

In enhancement of the roles played by the management of knowledge and information in

the overall management of organizational resources Marchand et al (2001) opined that the

overall performance of organizations is not only determined by the nature of the IT tools they

employ but also how they use such tools in the management of both formal and informal

knowledge generated thereof. Chen and Huang (2007) justify this claim by holding that

knowledge is the tool that pushes an organization into achieving its objectives. As a matter of

fact, Skyrme (1998) holds that organizations that are not ready to embrace modern methods of

information management are likely to face stiff competition at the market place from their rivals

who have already put in place knowledge management structures. Precisely, Skyrme asserts how

organizations manage information and exploit it at the market place greatly determines their

overall market positioning. On the other hand, Tokar et al (2007) solidifies this assertion by

holding that knowledge (formal or informal) is of no value if it is not shared amongst the

employees or even when it is not subjected to the appropriate processing procedures to make it

compatible with organizations unique needs .

 IT and HRM 23

Such postulations lead to the differentiation of knowledge into three basic facets of data,

information, and knowledge. Whereas data is the bare (raw) answers, figures, and numerals,

information is the compiled data, while knowledge is the information that has been reacted to

and effective put into productive ends (Tokar et al, 2007). Apparently, this conversion of data to

information and knowledge is subject to a number of forces – it requires strong IT stimulus to

successfully develop and manifest into “resource” that can be managed for production gains

(Davenport, Long & Beers 1998). In essence, the process of converting information requires the

collaboration of human mind and both software and hardware tools offered by IT (Huselid et al,

1997). On the other hand, so as to effectively put into effective use of the developed knowledge

there must be proper capabilities to channel it from one person to the other (Marchand et al,

2001). Essentially, this is done through three main forms, that is, through spoken, written, and

practical activities (Skyrme, 1998).

From an organizational context particularly organizations with large numbers of

employees, IT can play a core role in ensuring that critical information and knowledge is quickly

and constructively passed through video conferencing, online chatting, electronic messaging, or

even through virtual training interfaces (Turk, & Jaklic, 1998). On the other hand, basing on the

notion that knowledge only exists within the minds of individuals and its transfer is determined

by how best the individual can use it in conversing with others or even carrying out tasks. In this

regard, for employees to achieve certain organizational goals they must be able to exhibit a

certain level of knowledge (Skyrme, 1998). To achieve this, organizations need to identify

worthwhile knowledge codes and establish the most appropriate IT tools for achieving those

ends. This may entail identifying a few employees, training them how to handle the IT tools and

then using them as imitation and reinforcement models to pass on the skills learnt thereof to the
 IT and HRM 24

other employees (Davenport, Long & Beers 1998).

2.6. IT and Employee Rewarding

In order to gain a competitive edge over their rivals many companies are investing

heavily in IT (Baloh, Trkman, 2003). This is in concurrence with (Skyrme, 1998) argument that,

a well equipped and staffed IT department can give an organization an upper hand in studying

what their rivals are doing to mitigate conventional operational challenges such as increased

costs of acquiring raw materials or even increased costs of carrying out market research. These

sentiments are shared by (Marchand et al., 2001) when they assert that proper information

management practices that are powered by modern IT innovations allow organizations to identify

their markets, their product potentials as well as well as their suppliers’ potentials. Moreover,

through access to HRM practices databases organizations can easily develop the best methods of

identifying and utilizing “informal internal knowledge” that can be used to identify hardworking

employees for rewarding as well as those who need to be reinforced (Turk & Jaklic, 1998).

These facets of KM as employed by organizations can be very useful in helping a company make

short and long term plans and hence make appropriate market decisions capable of improving the

overall market share enjoyed by an organization and in extension better terms for the employees

(Davenport, Long & Beers, 1998).

Employee satisfaction is one of the critical facets of the complex HRM processes

(Nelson, 2005). Organizations seeking to increase their overall productivity, to satisfy their

customers, and to shrug off their competition from their rivals acknowledge that they should

kick-start such dreams by providing competitive working conditions for their employees

(Nelson, 2005). In this regard, strategies provide competitive hiring, training, development, and

motivation services to their workers enhances probability of such workers to develop positive
 IT and HRM 25

attitudes toward serving customers professionally and efficiently (Maxwell & Lyle, 2002). When

delineated in simple terms such strategies succeeds in creating a soothing yet realistic

environment to the employees and clients alike by offering compensatory services that replaces

some of their life values lost during normal tasking daily activities (Nelson, 2005). Apparently

this is seemingly a tall order that cannot be achieved by ill-motivated and qualified employees

(Maxwell and Lyle, 2002). In reaction to this many focused organizations endeavour to put in

place, modern IT tools that makes tasks easy and more cheaper to accomplish, that create

competitive terms for employees especially those at the low-end of the organizational ladder, as

well as those that link the low-end employees with their high-end counterparts (Maxwell & Lyle,

2002).

3.0. CHAPTER 3: METHODOLOGY

3.1. Introduction

This methodology chapter describes the processes that were involved in the collection

and analysis of data in this dissertation’s practical-based research inquiry on Wipro Limited, an

IT company that extensively employs IT tools in running all its sectors including the HRM

department. Ideally, the study focuses on the impacts IT tools have on “everyday” HRM tasks

such as hiring, training, development, motivation, and rewarding. This was studied in the context

of how the company’s HRM department has fared since it started utilizing IT tools in processes

outside the “traditionally” accepted IT processes. Overall, this approach involved the

interpretation of the company’s HRM department overall performance and most importantly how

juggles HRM and IT tools to mitigate organizational challenges. In a nutshell, this chapter

provides the main source of reference in making generalizations that were used to support the

study’s findings. Precisely, the chapter improves the existing knowledge base on the most
 IT and HRM 26

appropriate IT tools for HRM practices that organizations can utilize.

Perhaps to present the ideas and discussions presented in this chapter in more operational

terms, the study set out to fulfil the following practical objectives: the possible changes in human

resource in human resource management when the information technology is integrated in the

work processes; the role of information technology in determining the value of HR services; time

needed for human resource to appreciate the new information technology processes. In a

nutshell, this chapter’s underlying essentiality can be better summarized in the words of

Buckminster Fuller when he attempted to define design science (Design Science, 2010).

Precisely, he postulated that:

The function of what I call design science is to solve problems by introducing into the

environment new artefacts, the availability of which will induce their spontaneous

employment by humans and thus, coincidentally, cause humans to abandon their previous

problem-producing behaviours and devices. For example, when humans have a vital

need to cross the roaring rapids of a river, as a design scientist I would design them a

bridge, causing them, I am sure, to abandon spontaneously and forever the risking of

their lives by trying to swim to the other shore.

In the same note it is expected that the results from this chapter will provide real-time IT

“artefacts” capable of addressing various operational and organizational challenges facing the

management of human capital. Specifically, the chapter provides the most critical section of the

research study given it delineates the modalities involved in the process of gathering and

analyzing of data. In this regard, due care was taken in the choice and the arrangement of all the

critical processes. As a matter of fact, the chapter is structured into the following seven sections

which are built in a successive manner from each other to enhance clarity and easy flow of ideas:
 IT and HRM 27

(1) Introduction: covers a detailed account of study purpose as well as an outline of

the various sections of the chapter.

(2) Research design: gives an account of the modalities of the qualitative research

strategy employed in the study such as the sampling method and the target

demographic, and most importantly the reasons underlying the choice of the research

strategy.

(3) Research context: covers the relevant details about the research strategy being

used in the study.

(4) Participants: gives a detailed account of the study’s participants as well as the

rationale for their selection.

(5) Data collection: offers a clear procedure on the methods and steps involved in

the process of data collection as well as the rationale behind such procedures.

(6) Data analysis: covers the modalities involved in organizing, analyzing, and

displaying the collected data as well as the rationale for the chosen methods.

(7) Limitations and problems: offers a wide range of problems encountered in the

overall process of tackling the research topic.

3.2. Research Design

Based on Babbie (2004) postulations, a number of research strategies can be applied in

studying the roles played by IT tools in the study company’s HRM department. In this regard

both exploratory and explanatory methodologies can be applied with considerable ease. For

instance, he postulates that exploratory methodology can only be applied in a qualitative research

scenario, explanatory method can be applied with significant success in either qualitative or

quantitative scenarios.
 IT and HRM 28

Essentially, this study utilized a qualitative research methodology. The decision to choose

this methodology was based on the fact that it is very easy to identify a wide range of roles IT

tools play in HRM processes when using a qualitative research design. As a matter of fact, a

qualitative methodology ensures that all key issues that affect a particular phenomenon such as

the salient IT features that enhance efficiency in the management of a company’s human capital

are clearly delineated (Babbie, 2004). Moreover, basing on Creswell (2003) postulations on

interviews and case studies it is most probable that a qualitative research will offer the best

results for the study given that the underlying research problem centres on how IT tools affect

HRM practices in the study company.

Basically, the selection of the study company was purely based on meritocracy. As a

matter of fact, it was selected on the platform of its modern IT-enabled HRM program that was

developed to induce efficiency while reducing redundancy in the way core HRM practices are

carried out in its wide range of business outfits spread across the globe. On the other hand, the

study sampling criteria only required participants with a fair knowledge of company’s IT and

HRM practices.

To enhance participation, the selected participants were assured that their views would be

treated with utmost anonymity and that only the information they were willing to divulge would

be used in the study. After all, the researchers were only interested with information relevant to

the research topic. Ideally, this strategy was indeed a necessary one as it helped to eliminate any

potential cases of mortality (withdrawal) on the part of the sampled participants during the study.

3.3. Research Context

This research study took a period of two months to complete - starting from starting May

2010 to June 2010. The first week of the first month was spent conducting the selection and
 IT and HRM 29

sampling procedures, where a total of twenty participants were successfully selected. The period

of four weeks following the selection of the study participants the researcher was involved the

process of the actual collection of data. Then next three weeks (final weeks) were spent on

interpreting the data, analyzing it, drawing implications and reporting the findings.

Essentially, the research involved a case study where critical information touching on the

study topic was gathered through questionnaires and direct scrutiny of the company’s official

website as well as other online sources.

3.4. Participants and Sampling Criterion

This study demographic was made up of the study company HRM experts, IT experts, as

well as other junior employees. In total only twenty participants were selected. Ideally, out of the

twenty participants ten were experts from the HRM department, five from the IT department

while the rest were junior employees who had worked for the company for quite a long period of

time (not less than five years).

By fair terms this sample size was of average size basing in mind that only a single

company was studied. Specifically, the decision to choose was advised by Ader, Mellenbergh,

and Hand (2008) perception of a study sample. Precisely, they opine that a study sample should

not be too big or too small. In clarification, they argue that a big study sample may pose

challenges in data processing and may end up consuming a lot of resources. On the other hand,

they argue that a small sample may not offer a complete representation of the targeted

demographic.

The selection of the study company was based on a simple criterion made up of three

core factors. They are:

(a) The company must have a global presence - have subsidiaries, outlets, or even joint
 IT and HRM 30

ventures in at least three continents, and;

(b) The company’s HRM processes must be powered by IT tools.

(c) At least one of the company’s products should fall in the realm of IT.

Though only one company was finally selected, a total of ten companies that met the

selection criteria were sampled. The companies were send letters requesting their consent to

allow their employees to take part in the study. This was necessary as it served to dispel any

feelings of “intruder” on the part of the companies as the process of collecting data from their

employees would consume a substantial part of their overall working hours and most importantly

it would lead to “leaking” of critical company secrets. Out of the ten sampled companies five

gave a positive response (willingness to take part in the study) three declined the requests, while

two never answered the request letters all together. A random selection was carried out where the

five companies that returned positive responses were subjected to a random selection, hence the

selection of Wipro Limited. This was unnecessary as it gave the study an element of

impartialness in the selection of its demographic.

The main reason for choosing a single company was advised by the notion that it is easier

to collect and analyze data in a deeper manner when dealing with a single company than a

situation where many companies are involved. As a matter of fact, studying a single company

gives the researchers the opportunity to thoroughly explore all available information by

scrutinizing a large number of resource materials, talking to a large number of persons well

versed with the study company’s past, current, and future, strategic plans, as well as subjecting

the collected data to more rigorous methods of analysis.

On the other hand, the selection of the study participants was also done on a voluntary-

cum random basis. Even so, the participants were required to be persons endowed with a fair
 IT and HRM 31

knowledge of company’s past, present, and future IT and HRM practices. In this regard, experts

from the IT and HRM departs, as well as junior employees with a relatively long service working

for the company (at least five years) were considered as the most appropriate. Basically, the

processes involved formal consultation with the potential participants through request letters,

which were sent to fifty employees (agreeable with the selection prerequisite) to seek their

mutual consent to participate in the study. Out of these, thirty-nine responded back while the

others did not. Thirty-five of these thirty-nine responses were positive (agreed to take part) and

five were negative (refused to take part). Consequently, the choice of the twenty participants was

randomly done among the thirty-five potential participants who sent back positive responses.

In essence, this rigorous selection criteria was necessary as it sought to enhance

flexibility and the probability of the narrowed down Wipro employees to agree to take part in the

study. This selection criterion was also crucial as it helped to reduce eventualities for

participants’ withdrawal during the course of the study. Most importantly, this criterion helped to

debunk any potential ill feelings of coercion and interference with the participants’ normal work

schedules as it was them (employees) who made the final decision on whether to take part in the

study or not as opposed to the tradition where the researcher makes the decision.

3.5. Data Collection

The process of gathering data for this study involved two levels - structured

questionnaires as well as direct scrutiny of the company’s official website and a range of other

authentic sources such as journal articles, textbooks, newspaper articles, and magazine articles as

advanced by Babbie (2004). Moreover, the questionnaires were structured in simple and straight

forward language to elicit easy understanding as per Kvale and Britmann (2008) postulations.

For instance, the questions were arranged in an ascending order to ensure that information
 IT and HRM 32

gathered was successfully built from the preceding one. Again, the questions were framed in

both open and closed formats to allow for both short and descriptive answers. A wide range of

questions were asked that required the participants to give explanations, descriptions, stating,

opinions, as well as reasons for such opinion. This was necessary given the nature of the study

topic - it required a lot of information on how the study’s company has been carrying out its

HRM processes (before and after it launched the new IT-enabled system).

The first level involved dispatching the structured questionnaires to the participants

through the company’s postal address. To enhance accuracy and hence validity and reliability the

participants were given a period of two weeks to keenly study the questions and answer all of

them as instructed in the questionnaire to the best of their knowledge. Upon the lapse of the two

weeks the filled questionnaires were collected and taken for interpretation and analysis. Then the

returned questionnaires were studied, checked for any potential errors, interpreted, transcribed,

coded and analyzed as per the selected data analysis methodology.

The second level of the data collection process and perhaps the most impartial, involved

the gathering of information from both primary and secondary sources regarding the salient

features of the company’s HRM practices. This was carried out from the companies’ official

websites as well as from a host of authentic sources available online. It was reasoned that

participants might be tempted to enter untrue information in the questionnaires hence leading to

invalid findings. To this end, the use of primary information from the company websites as well

as secondary information from unbiased online sources served to mitigate such eventualities.

Overall, this method took a total of two weeks as it involved the intensive scrutiny of a wide

range of information regarding the study company past, present, and future HRM strategies.

3.5.1. Questionnaire Item

 IT and HRM 33

[Please see Appendices for Questionnaire Item]

3.6. Rationale for Questionnaire Items

This research study major instrument of data collection was the questionnaire. Though

substantial information was extracted from the study company’s official website as well as from

a wide range of other sources, it was the questionnaire that provided the most important/primary

information. Essentially, this was partly as a result of the structuring of the questionnaire and

partly because of the fact that the information it provided was first hand, that is, coming from the

study company’s IT and HRM experts as well as long serving employees with a good knowledge

of the company’s past, present, and future HRM policy prospects.

Basically, the questionnaire was structured in a manner that allowed for the maximum

retrieval of information from the participants. As a matter of fact, the questions were structured

in a varied manner so as to elicit different forms of answers. These varied answers formats were

indeed very helpful in the overall interpretation and analysis of the data collected particularly in

trying to establish an appropriate IT/HRM theoretical framework through which the study

findings would be looked at. Again, so as to mitigate the effects of too short/brief answers that

do not reveal much information or even too long/descriptive answers that digress from the study

topic, the questionnaire also included both open and closed type of questions.

Generally, the preparation of the questionnaire item was advised by the salient HRM

tasks of hiring, training, development, and rewarding. In essence, questions were framed to

capture how IT tools are used in enhancing efficient management of an organization’s human

capital. Specifically, the arrangement of the questions was also phenomenal – it comprised of

two sections: general questions (pertaining to HRM and how it is related to IT) and specific

questions (pertaining to the study company HRM strategies). The general questions were placed
 IT and HRM 34

at the beginning of the questionnaire so as to capture the participants overall understanding on

the uses of both the IT and HRM departments in an organization. The second question was built

from the first section as it sought to capture the participants’ perception regarding to the study

company’s HRM strategies. Overall, the two sections served the main purpose of the study as

they elicited both the company specific as well as the general information regarding the realm of

HRM. [Please see Appendices for Questionnaire Item]

3.6. Data Analysis

Due to the intensive nature of the proposed research problem, empirical information

collected through the structured questionnaires as well as from the direct scrutiny of the study

company official website and other authentic sources was analyzed using a qualitative data

analysis continuous method of memoing and coding as described by Kvale (1996) and Trochim

(2006).

The first step in this process involved a purposeful scrutiny of all the empirical

information with a view of evaluating its accuracy and succinctness. The data then was then

hypothetically interpreted and all important information (main points) pertaining to the research

topic was identified and jotted down in a memo in the form of short notes. For purposes of

making information more meaningful and hence easy to conceptualize, the short notes were then

transcribed using Microsoft word processor. This method also facilitated the easy analysis of the

data.

Secondly, the transcribed data was subjected to coding. In this process, the transcribed

data was codified (broken down into smaller chunks). Next, the coded information was subjected

to an ad hoc analysis process that involved the use of comparative tables where the coded data

was entered into well labelled columns and rows as advanced by Maxfield and Babbie (1998)
 IT and HRM 35

and Kvale (1996).

3.7. Ethical Issues

During the process of gathering data, this research study ensured that it adhered to all the

potential ethical issues, such as, the right to refuse participating in the study, right to refuse

disclosing ones identity, right to confidentiality, and right to “gentleman’s” treatment on the part

of the potential participants. In this regard, a number of precautionary measures were observed

during the study so as to safeguard the rights. For example, so as to ensure that the participant’s

rights to privacy, the right not take part in the study, as well as to ensure that the study did not

disrupt the normal work schedules for participants, efforts were made to ensure that proper

permission was sought from the relevant company authorities prior to the actual visit. Moreover,

the participants were formally requested to seek their consent in taking part in the study. To this

end, the actual sampling of the study demographic involved only those who expressed their

willingness to take part.

To ensure the right of anonymity the participants were referred to, not by names but by

numbers. This ensured that potential feelings of victimization in case of the revelation of

information considered as secrets did not crop up. Again, so as to enhance the right to

confidentiality, the participants were assured that only the information that will comprise the

study topic would be enquired. Again, they were assured that the information they were

providing would only be accessed by the researchers.

On the other hand, so as to ensure the participants rights to gentlemanly treatment during

the study were honoured, the researchers’ maintained a good a rapport with participants by

engaging in only activities that were already stated within the participation request letters. This

included asking questionnaires using kind and gentle words as well as providing sufficient
 IT and HRM 36

information to clear any potential uncertainties within the questionnaires.

In a nutshell, these ethical practices helped to mitigate any potential social interaction

limitations, as participants were freer in the answering of the various questions in the

questionnaire item without fear of future victimization or even disclosure of their identities.

3.8. Study Limitations

Some of the problems encountered during this study included selection-mortality threat

during the study demographic sampling process. Not all the HRM experts and other company

employees earmarked for selection were willing to commit themselves to the entire process of

the study. Again, not all the selected participants were willing to avail critical information about

their departments as well as allowing their juniors to participate in filling the questionnaires.

Again this trend was visible during the actual process of data collection where some

participants delayed with returning the distributed questionnaires and /or agreeing to avail

themselves during interview-appointment dates without giving good reasons for such failures.

Such delays occasioned significant disruptions to other study activities. On a positive note, the

whole process was accomplished within the set timeframe despite these glaring time

management snags.

Being a qualitative research, this study was also prone to a barrage of social interaction

threats such as compensatory rivalry, resentful demoralization, compensation equalization threat,

and imitation (Trochim, 2006). For instance, some of the answers given during the interviews

and questionnaires may have been artificial, in that, participants may have been tempted to give

answers that would give the impression that their company had the most competitive It and HRM

departments. Again, basing on the natural desire to withhold key secrets, participants may have

been tempted to avoid giving correct information regarding their company’s services after sales
 IT and HRM 37

IT and HRM strategies for fear that its rivals would act on such information to initiate undue

competition in future. Again, the participants may have been under instructions from their

company management not to disclose any information considered very sensitive to the

company’s HRM strategy.

4.0 CHAPTER 4: RESULTS

4.1. Introduction

This chapter coherently presents the data that was collected using the two levels of data

collection, that is, questionnaires and scrutiny of the study company websites and other

materials. For purposes of clarity and coherence the chapter is divided into a number of sections,

which clearly outline the impacts of IT tools on the four major HRM processes of hiring,

training, motivation, and rewarding. This was necessary as it allowed the easy interpretation and

objectiveness during the discussion stage of the dissertation (Glatthorn & Joyner, 2005).

Moreover, this was done in accordance with the dissertation’s main objective of

exploring the various roles IT tools play in the process of managing human capital, as well as the

other derivative objectives. In a nutshell, the chapter provides a set of carefully analyzed data

presented in a clear and precise manner to accord the audience an opportunity to judicially make

draw out inferences regarding the roles of IT in HRM at Wipro in particular and across the

organizational divide in general.

4.2. Company Profile

Wipro is a global information technology company specializing in a wide range of

services in the realms of information technology, healthcare, transportation, engineering,

telecommunication and media services, lighting, and consumer care services. The company has

its headquarters in Bangalore, India; however, it has distribution centres spread in over seventy
 IT and HRM 38

countries. Wipro boasts of a relatively long and complex history that dates back to 1945 when it

started as a vegetable products entity serving the Maharashtra state market segment. Even so, the

company has managed to expand steadily over the years, moving into a range of new consumer

products then to hydraulics and now information technology products. Its IT section did not

begin until 1980 when it entered into the industry at a time when there were a lot of

opportunities. Since then company has not stepped down on its pace in expanding its activities to

new market segments as well as expanding its already acquired ones. In this regard the company

embarked on a serious drive that culminated into a new brand of computers that hit the market in

1981. The success realized from the sale of these first models of India-made computers propelled

the company into the world of IT (Wipro, 2010).

Today the company manufactures a wide range of IT products that offers service

solutions to other big companies, employing over 111, 000 employees in all its distribution and

manufacturing centres across the globe. Through this wide range of services, Wipro has managed

to cut a niche for itself as a global organization committed to partnering with its customers in

relatively non-conventional realms such as service solutions for the betterment of human life.

Even so, the company’s image is coloured not by the wide range of products it provides but

specifically by its IT segment. Precisely, Wipro offers a variety of technological service

solutions to its customers who are spread all over in Europe, America, Africa, as well as Asia. As

a matter of fact, its customer base has been on a bulging mode since 1980 when it launched its IT

segment. Specifically, the company has more than 100, 000 associates spread all over the world

in more than seventy countries. The company also has got more than seventy distribution centres

that serve over 800 large-scale active clients globally as well as over 150 Global Fortune 500

organizations. The company achieves these high customer figures as a result of high levels of
 IT and HRM 39

satisfaction, with return customers’ figures standing at 95 percent of all customers (Wipro,

2010).

Today, Wipro has one of the most effective HRM departments in the globe courtesy of its

wide range of employee evaluative programs that it utilizes to monitor the staffing needs of its

globally spread distribution centres so as to make timely and appropriate reaction. Ideally, the

company’s transformational IT services solutions that forms the bulk of its product range are also

tested and applied in the management of its more than 111, 000 employees to help mitigate any

potential HR challenges as well as improving productivity (Wipro, 2010).

It offers a range of service solutions to its customers that include: technology consulting,

system development, behavioural skills, change management, training needs analysis, technical

writing, among a gamut of other service solutions. As a matter of fact, majority of electronics

such as mobile phones, microwaves, television sets, aircrafts, etc. have got at least a component

(whether software or hardware) manufactured at Wipro. This positions the company at a pivotal

point in the global IT industry (Employee Relationship Management, 2010).

Basically, the company achieves this through committing itself to developing and

manufacturing a wide range of IT products which range from architectural applications,

embedded software, both electronic and mechanical hardware, maintenance and repair of a wide

range of electronic and mechanical equipments, as well as system testing units. In essence, this

trend can also be explained by the company’s high level of innovation as exhibited by the

number of patents it owns. Precisely, the company has a total of 136 business co-innovation

patents and disclosures (Wipro, 2010).

4.3. Overview of the Questionnaires Responses

Overall, all the twenty questionnaires issued out to the twenty participants were returned
 IT and HRM 40

for analysis. About 98% of the questions were answered with only one participant failing to

answer two questions from the questionnaire. To dispel bias as well as for purposes of clarity

questionnaires results were analyzed concurrently with that of the direct retrieval of data from

the company official websites as well as other sources.

A general observation on the analyzed data from the questionnaires showed that about

95% of the participants clearly understood the functions of HRM and IT departments in an

organization, and in extension, the importance of integrating IT tools with HRM practices. The

remaining percentage seemed to have stint knowledge about the exact roles played by both IT

and HRM departments in an organization particularly from a contemporary trends standpoint.

Even so, all the participants seemed to have a good knowledge regarding the company’s past,

present, and future HRM-IT strategies. Perhaps this was a result of the fact that part of the

sampling procedure required participants to have a fair knowledge about the company’s past,

present and future policy trends.

The broken down results indicated that as much as 95% of the participants were well

aware of the main functions of HRM in an organization. Precisely, in sufficient detail they

described each of the four (hiring, training, development, and rewarding/reinforcing) main tasks

that HRM fulfils in an organization. Responses from the remaining percentage showed that they

were aware about the functions of HRM but did not provide clear explanations as to what these

functions entail.

On the other hand, regarding the question about the importance of IT department in an

organization, 90% of the participants indicated that they were aware about the importance of

integrating IT tools in HRM processes. In extension, the same percentage acknowledged that

Wipro has benefited by integrating its IT and MRM departments, while the remaining
 IT and HRM 41

participants were not ware about such benefits.

All the participants indicated they were well aware of the company’s mission and vision,

as well as its overall HRM strategies. In extension, 90% of the participants acknowledged that

the company has incurred considerable costs while formulating and implementing its IT-powered

employee hiring, training, development, and rewarding programs while the rest were not clear in

their explanations. On the other hand, the remaining percentage also acknowledged that Wipro

has incurred costs in implementing such programs but fell short of indicating precise figures.

Overall, the participants were in agreement that the company has gained a significant

upper-hand in regards to its overall productivity and in extension its market share index since it

started utilizing IT-HRM collaborative strategies in coordinating employee productivity,

interpersonal relations as well as enriching their career dreams.

4.4. Hiring

The hiring process at Wipro takes a number of stages to facilitate for maximum

examination of the potential employees capabilities. The first step involves a verbal interview

that seeks to test the interviewee’s general knowledge; the second step involves an aptitude test

where complex topics such as time management, interpersonal relationships are tested. The third

step is the technical test which is divided into four rounds. Round one aims to test the overall an

interviewee’s general knowledge regarding technical concepts in areas such as Linux, Java, basic

hardware and software troubleshooting skills, etc. Round two entails deeper examination of the

technical skills and it also the elimination stage, while round three involves HR questions where

interviewees are taken through traditional HR questions and also regarding Six Sigma concepts.

Round four, on the other hand entails the actual placement of a candidate, with employee

numbers issued by the HRM department. This marks the formal journey for such candidates
 IT and HRM 42

gaining full employment (Wipro, 2010).

The company’s successful IT-powered HRM processes of hiring, training, development,

and rewarding of employees is advised by the strong belief that, technological input plays a key

role in the overall organizational development. Most importantly, Wipro recognizes the reality

that contemporary organizations need to be supported through transformative solutions hinged

on modern IT innovations (Som, 2006). In this regard, the company partners with other like

minded organizations in developing tailor made technological service solutions to address

critical organizational challenges. This is also made a reality by company’s well organized

research and development unit that is well equipped and skilfully staffed to tackle the new

prospects of Cloud Computing, Social Computing, Mobility Application, Green Technologies as

well as Information Management and Security (Wipro, 2010).

No doubt, this ambitious research and development program is advised by the company’s

held conviction that modern organizations are not stagnant – they are constantly in the move in

response to the contemporary marketplace challenges that demands contemporary solutions

(Som, 2006).In this regard, the company through its EQM program ensures that potential leaders

are carefully identified from the all the production sections through the regular employee

appraisal drills. Again, the company ensures that it taps all the critical leadership skills and

knowledge from those employees who have indicated their intention to leave the company. This

helps in creating continuity as well as making a rich “database” of worthwhile HRM practices

that can be utilized in the future to formulate strategies for addressing recurring HRM

challenges. It achieves this by deploying a robust screening and selection criterion that is carried

out through sophisticated system that tracks and maintains the record of emerging talent

(Employee Relationship Management, 2010).

 IT and HRM 43

4.5. Employee Training and Development

While recognizing that the engine of any organization is usually the employees, Wipro

develops a wide range of technological service solutions that helps to tap the maximum service

from such employees. Through these programs the company successfully links key HRM

processes with IT practices and hence helping to reduce duplication of services and hence

significant reduction of operation costs. The linking of the HRM and IT processes also plays to

create good rapport between experts of the two departments. At the long run this helps to reduce

organizational conflicts between workers a thing that negatively impacts on the overall

production as it reduces the morale and commitments to the organization’s goals. The company

also enjoys uninterrupted employee succession planning as it is very easy to identify which

employees have left through whichever reasons and duly replace them within an appropriate time

frame that allows for continuity of services to its customers (Employee Relationship

Management, 2010).

The EPM program Wipro can easily identify new organizational as well as marketplace

labour demands and duly arrange for refresher courses to train its employees on how best to

achieve such. Again, Wipro also keeps a close tab of the status of the implementation of key

HRM policies through the multi-tier response system that accords the employees an opportunity

to pass their concerns regarding the effects of new changes and how best such changes would

have been implemented. Precisely, such multi-tier response system accords the HRM experts an

opportunity to correctly analyze the employee concerns from a wide range of indicators as it

would not have been possible if only a few areas were sampled. In a nutshell, working for Wipro

has got one important indication, that is, to gradually learn and grow up the organizational and

career ladder through the utilization of modern IT tools (Employee Relationship Management,
 IT and HRM 44

2010).

4.6. Employee Rewarding System

Wipro pursues a complex and result-driven employee rewarding strategy. It achieves this

through a number of appraisal programs that seek to constantly evaluate, reward, reinforce, and

recommend on the best course of action regarding the overall employee preparedness to

successfully carryout their mandate as expected of them. One such programme is the Employee

Performance Management (EPM) which is implemented through two methods – either through

the use of a software known as Software as Service (SaaS) or even the use of the Business

Process Outsourcing (BPO). Under this program, the company easily, cheaply, and efficiently

evaluates its employee’s overall performance vis-à-vis the company expectations. Ideally, this

program is very accurate and reliable in terms of highlighting the critical areas that employees

must work on, so as to perfect their general weaknesses in any area identified thereof (Wipro,

2010).

Basically, the company derives many benefits from this program. The company enjoys

refined focus on its overall goals as one of the major objectives of the EPM project is to assist

the company to stay focused to achieving its set goals through the purposeful engagement of its

most valuable resource – human capital. Again, the company also enjoys decreased operation

costs as the problem of time wastage and redundancies are completely eliminated. Under the

EPM, workers who are not committed to their work can be easily identified and taken through

the necessary morale building procedures as well as re-orientation of the company mission and

vision. No doubt this serves to boost productivity while at the same time cutting down

redundancy which of course is one of the greatest factors that lead to the accumulation of

unnecessary operation costs (Wipro, 2010).

 IT and HRM 45

4.7. General Results

The hallmark of Wipro’s HRM and IT strategy is that an organization can provide more

value for the products it sells to its customers if it incorporates IT-powered strategies in its

overall production processes. In extension, the integration of organizational processes, as well as

the management of potential risks through IT-powered mitigation plans is phenomenal to the

achieving competitive advantage. Part of the company’s main goals is to offer a wide range of

technological business solutions to other companies all year round. In essence, the company can

be described as “transformation catalyst” due to its ability to provide to other companies

transforming service solutions on how to tackle critical operational challenges such as

outsourcing, system overhaul, as well as the integration of various system departments (Wipro,

2010).

First and foremost, Wipro acknowledges that the realm of HRM is very crucial in shaping

an organization’s future plans and hence the need for engaging the right persons to fill key

positions. It also acknowledges that organizations spend a substantial part of their time in making

plans concerning hiring, training, development, and rewarding, and following up such plans so as

to enhance the achievability of the set short and long term goals. Moreover, it recognizes that

plans to fill the various tasks and programs with the necessary persons should also be done in

tandem with grooming of persons to take leadership positions when the right time comes. The

company acknowledges that such critical tasks require substantial amount of funds to finance

and that to economize on how such funds are spend an organization needs to source for the best

strategy capable of inducing efficiency and eliminating redundancy. Most importantly, Wipro is

well aware that the use of IT tools can enhance the probability of achieving these key dreams

while still keeping the overall time and money spend at a minimal level (Employee Relationship
 IT and HRM 46

Management, 2010).

Wipro employs a number of globally recognized people management models. It boasts of

the People Capability Maturity Model (PCMM) as well as Level 5 of the SEI Capability

Maturity Model and version 1.1 of the CMM. The gist of these models of people management

lies on the notion that employee competencies should be in tandem with the changing

organizational and marketplace needs (Som, 2006). Additionally, Wipro also employs the Six-

Sigma methodology. This methodology helps to streamline critical human capital management

processes as well shortening the time in the process of making key decisions. Through this Six

Sigma methodology, Wipro can easily identify areas in its overall HRM strategy that needs

urgent reinforcement and make the necessary reinforcements in real-time. The wisdom behind

this methodology is that if organizational challenges are identified in good time then it becomes

very easy for them to be solved. The backbone of the Six Sigma methodology is a statistically

collected employee and customer specifications which the company puts into consideration.

Such considerations have resulted into employees working smartly as opposed to working for

long hours. As a matter of fact, the company achieves completion in as much as 91% of all its

projects within the scheduled time courtesy of this Six Sigma methodology. This high success

rate is way above the industry average which is at 55% (Employee Relationship Management,

2010).

During the implementation of the Six Sigma program, the company incurred huge costs

that almost made the program to be dropped altogether. Even so, the company went ahead to

implement it given that it put it on a pilot mode so as to identify its strengths and weaknesses.

During the pilot stages the program showed high prospects of improving the company’s HRM

processes and therefore the company concentrated on identifying its strengths rather than its
 IT and HRM 47

weaknesses. The overall verdict on whether to adopt the program or drop it altogether was made

following a benefit cost analysis where it was appraised from the employee and customer

satisfaction lenses (Wipro, 2010).

The expenses were incurred in the overall process of equipping the various tasks that

were created as well as training the employees on the most appropriate methods of implementing

it. The actual training program involved a number of steps that sought to: define; measure;

analyze; improve and control; as well as to increase employee and customer satisfaction. Again,

the company also faced serious challenges in finding the right persons to fill these positions

given that there was a under-supply of well qualified IT experts with HRM skills. Even so, to

mitigate this problem the company also developed its own hiring unit that was run as a

consultancy outlet to indentify talent and follow-up on such with the view of engaging it.

Overall, these processes were made possible through accurate benchmarking and data gathering

of the pertinent issues pertaining to the overall implementation of the program. Basically, the

company relies on the national Skill Registry (NSR) as well as online recruitment drives to fill

these competitive positions (Employee Relationship Management, 2010).

The success of the Six Sigma methodology has been as a result of the company’s

integration of IT tools and traditional practices HRM. In extension, the integration of the IT tools

involved the restructuring of the existing HRM practices, the hiring of a crop of new employee

well versed with IT skills, the training and development of the existing employees to equip them

with the necessary IT-HRM skills, the creation of new HRM tasks to accommodate the IT input,

as well as the allocation of the necessary manpower to the various tasks created thereof (Wipro,

2010).

5.0. CHAPTER 5: DISCUSSIONS

 IT and HRM 48

Som (2006) assert that the liberalization of the Indian market economy is partly

responsible for the improvement of the overall performance of many companies in India. In fact,

he goes ahead to argue that many overseas companies have found their way into the Indian

market since late 1980s. This he attributes to the apparent gains that the liberalized market

provided to companies willing to sink huge chunks of capital particularly in the technological

and automobile sectors. Apparently, this liberalization led to the increment of competition as

new companies as well as new products all converged in the local market to tap the fruits of

liberalization, this he argues acted as a catalyst to change of strategies. Precisely, organizations

changed their HRM strategies to accommodate the high production rates, increased completion,

as well as high customer demands. This discussions chapter attempts to explain the HRM

changes witnessed at Wipro, with emphasis given to the reality that such changes have been

made possible by a wide range of IT-powered programs that the company has invested in as part

of its overall HRM strategy to mitigate the inherent organizational and marketplace challenges.

Wipro’s employee enrichment program is in tandem with the notion that, in order to form

strong HRM teams there is need to engage highly competent persons capable of juggling an

organization’s human capital with other types of resources with the aim of creating goods and

services in an efficient and effective manner (Cheatle, 2001). Strong HRM teams should be made

up of highly qualified and ready persons who regularly trained, motivated, and strategically

positioned persons who can take up any HRM responsibility and deliver accordingly (Blyton &

TurnBull, 1992). Apparently, to achieve this seemingly “easy” endeavor organizations’ must

initiate and strive to uphold the core employment cycle procedures (Cheatle, 2001). For instance,

new employees need to be fully trained and oriented to enhance their ability to understand and

subscribe to the unique organizational cultures as well as to develop the sense of patriotism and
 IT and HRM 49

longevity (Armstrong, 2003). However, this cannot be achieved if an organization is not wiling

to invest heavily on IT-powered programs such as the Six Sigma, the EPM, as well as a gamut of

other HRM programs that Wipro runs. These programs enhance the smooth flow of all these

important procedures of hiring, training, development, and rewarding (Blyton & TurnBull,

1992). Conclusively, as witnessed on Wipro’s strategy of hiring, organizations should endeavor

to evaluate both job-specific and IT skills so as to mitigate the challenges brought about by the

modern HRM demands (Som, 2006). Most importantly, organizations should work toward the

building of strong HRM teams which then can enhance the overall organizing and juggling of the

human capital with other key resources in an organization.

The genesis of Wipro IT-powered HRM programs can be attributed to a gamut of

inferences drawn from theoretical frameworks advanced by various studies on the field of HRM

particularly those that advocate for purposeful integration of key organizational tasks to avoid for

the duplication of services as well as wastage of resources (Som, 2002). This is in tandem with

Som (2006) postulations that organizations change their strategies as a result of changing

organizational and marketplace trends. In implementation, the company espoused the convictions

that such inferences were critical for the maximization of the human capital utility. It is such

convictions that culminated in the actual implementation of the results of the inferences drawn

thereof. This implementation took the form of the integration of IT tools with traditional HRM

processes to come up with new HRM strategies that would easily identify potential talent from

young professionals while still in campuses, recruit such talent, develop it, and evaluate it on

regular basis to determine its overall positioning in respect to the achievement of the set

organizational goals. In support of this postulation and as advanced in the literature review

chapter of this dissertation, a substantial number of changes made in the realm of HRM have
 IT and HRM 50

adopted a similar methodology in imparting change, that is, as a mitigation measure to

contemporary organizational and/or marketplace challenges (Som, 2006).

Wipro employs a number of IT-powered HRM programs that spans all the critical HRM

tasks. Basing on the conventional wisdom that organizational success is largely influenced by

how a company structures its social, human, and information resources (Cheatle, 2001), Wipro

has engaged in a number of sound information and knowledge management practices. This has

been necessary for the organization particularly in its pursuits for excellence in the highly

competitive and result driven IT industry. The barrage of employee evaluation programs has

enabled the organization to realize maximum benefits by integrating its human and information

capital, a thing that has enabled the maximum sharing of information between employees as well

as the timely reaction and management of the shared information. Such integrative endeavours

have been made a reality through the application of the tenets of social learning theory as well as

sound knowledge management practices (Armstrong, 2003). These employee evaluation and

development programs have been modelled around the core strategic objectiveness of defining

the organizations brand, integrating the organizations employees, balancing the organization

HRM scorecard, and most importantly propelling the organization in a forward motion while still

honouring employee acknowledgement practices (Maxwell & Lyle, 2002, p. 252). To achieve

this, Wipro has endeavoured to create rewarding environments capable of enhancing maximum

employee interactions and sharing of knowledge as well as reinforcing positive advancement of

worthwhile skills and knowledge toward the achievement of the organizational objectives. This

has been done in tandem with empirical findings that, employees tend to learn and shape their

behaviours traits based on their immediate social environment (Armstrong, 2003).

 IT and HRM 51

Through the Six Sigma program, Wipro exposes its employees to numerous

organizational operations as well as regular workshops to develop multi-skills in working in

different production positions. This helps to open up new career doors within the company’s

organizational ladders and ultimately boosting the overall employee morale and quality of

service delivery. Again, it has helped in reducing the employee turnover as employees tend to

dedicate themselves more in anticipation of career development and growth within the

organization (Maxwell, 2004; Hall & Taylor, 2002). Such attitudes are very crucial among

employees as they engage in their tasks more diligently as they perceive themselves as part of the

organization and hence work very hard so that they do not fail. Overall, these HRM strategies

have born many fruits gauging from the high productivity levels as well as high customer

positive surveys (Maxwell and Lyle, 2002; Maxwell and Watson, 2004).

Drawing from empirical analysis of the Indian market where many companies were

forced to restructure their HRM strategies so as to accommodate the stiff competition that

resulted from the liberalized economy, it can be asserted that IT tools serve to improve an

organization’s HRM strategies particularly in inducing efficiency and dedication to the set

organizational goals on the part of the employees. Companies that adopted technologically

powered programs such as the dynamic corporate structures, HR synergies, professionalized

recruitment drives, outsourcing, as well as employee development have harvested substantial

gains even during these hard economic times (Som, 2002, 2006). Apparently, Wipro success

story is wholly built on its ability to develop and implement key HRM strategies. For instance,

the EPM program has played a huge role, as the company identifies talent at a relatively early

time than its rival and makes plans to tap in on such. Indeed this skilled manpower has been a

pivotal factor, particularly on the company’s IT sector where a wide range of IT-HRM
 IT and HRM 52

technological service solutions are produced on a large scale basis. Arguably, the success of this

mass production of technological service solutions has been made possible through a gamut of

employee development and reward system that helps to reduce the rate of employee turnover

while providing upward mobility opportunities to grow up the organizational ladder. Precisely,

the Six Sigma plays a key role in ensuring that all the necessary organizational skills as well as

the task-specific skills are successfully drawn from departing employees. As

In a nutshell, Wipro human capital utilization strategy entails four pillars of, making

“almost accurate” forecasts on future human labour needs for the company; provide the

necessary manpower that can mitigate any unforeseen organizational and marketplace changes;

utilize all its labour force in productive ways as per the set mission and vision, and; carryout

employee development drives to enhance the overall productivity (Armstrong, 2003).

6.0. CHAPTER 6: CONCLUSIONS and RECOMMENDATIONS

The findings presented in this dissertation were drawn from questionnaire responses from

the twenty participants involved in the study as well as the direct scrutiny of the study company

official websites as well as other authentic sources. Moreover, data collected thereof was

analyzed using a qualitative continuous analysis design of memoing and coding which makes the

interpretation of the results easy. As part of its ethical issues obligations, the study also honoured

all the necessary participants’ rights. In this regard, it is strongly believed that the study met the

minimum validity and reliability measures for conventional academic research of this nature.

Conclusively, the overall aim of this dissertation was to establish through exploration the

roles played by IT tools in the management of human capital. Specifically, this major objective

was to be achieved through a number of other smaller objectives which included:

(a) Analyze empirical evidence collected from the study company in view of establishing the
 IT and HRM 53

costs (benefits versus cost) involved in restructuring HRM departments to accommodate

IT tools.

(b) The relationship between the study company’s HRM and IT departments with view of

establishing how the company utilizes IT tools in key HRM processes.

(c) To carryout a comparative study between the study company core HRM strategies before

and after the entrenchment of IT tools.

(d) To investigate the possible changes in HRM when the IT tools are integrated in the work

processes.

(e) To investigate the role of information technology in determining the value of HRM

processes.

(f) To identify the time needed for the processes of managing human capital to appreciate

the new information technology tools.

In light of the above listed study objectives, this chapter aims to carryout a recap of what

was addressed in the dissertation in regard to the set objectives. Such recap will serve the

purpose of providing a succinct conclusion about the extent which these objectives were met as

per the study findings. The conclusions will be based on the findings of the study and will act as

the platform on which the study recommendations will be based on. Most importantly, the

conclusions will discuss the overall contribution of this study on the roles of IT in HRM

processes, while the recommendations will be advanced in terms of how this study’s findings can

be made more valuable by future studies.

The dissertation has provided substantial evidence that attests to the generalization that,

integrating IT tools with HRM processes leads to the increment of an organization’s overall

competitive advantage. It has achieved so in a number of ways as demonstrated in the case of

 IT and HRM 54

Wipro Limited, a company that started on a very humble note and which has managed to steadily

grow up the ladder to gain a global pivotal position in the category of technological service

solutions.

In regard to the first sub-objective of carrying out a cost-benefit analysis, the dissertation

has clearly indicated that, during the launching as well as the piloting of the Six Sigma program

as well as other IT-powered HRM programs that the company utilizes, huge costs were incurred

in recruiting new employees with the necessary IT and HRM skills, in equipping the programs

with the necessary hardware and software tools, as well as other miscellaneous costs incurred

during the actual implementation of the of the programs. Even so, as extensively explained in the

study, the benefits of the program have surpassed the costs the company incurred during its

piloting and implementation processes. In regard to the second sub-objective the dissertation, one

of the key perquisites for recruitment for any post is that candidates should have basic IT

knowledge as well as the skills about the Six Sigma program and other IT-HRM programs alike

to qualify to be recruited by Wipro.

On the other hand, the dissertation has explicitly outlined the various benefits that Wipro

continues to experience courtesy of the Six Sigma as well as other IT-HRM programs

particularly in the overall appraisal of its employee performance as well as the making of critical

HRM decisions. In regard to the sub-objective about the possible changes brought about by the

integration of IT tools with HRM processes, the literature review chapter has drawn from a

barrage of literary studies and dutifully provided an extensive account of some of the potential

outcomes brought about by embracing modern IT innovations.

Even so, as concerns the last sub-objective it is only fair to assert that, apart from the

mere explanation that benefits from integrating IT tools and HRM practices within an
 IT and HRM 55

organization can only be enjoyed upon the full implementation of such programs, the dissertation

did not provide a strong account on the timeframe within which organizations can start enjoying

such benefits. This objective proofed somehow elusive given that it is subject to a wide number

of factors that made it hard to predict. In the case of Wipro, the implementation of the Six Sigma

program for instance, took a lot of time, that is, it was first taken through pilot stage then

subjected to further rectifications as per the piloting results. A balanced account on the overall

achievability of this research is that it has successfully achieved its mandate insofar as the set

objectives are concerned.

Moreover, this partial achievability of the final sub-objective as well as the highlighted

study limitations deals the study a substantial validity blow. In this regard, it is hereby

recommended that future research work that will build from the findings of this study is

necessary particularly if the highlighted gaps will be filled. Moreover, since this study has

fulfilled by its mandate by 83% while utilizing only a single case study, it is also recommended

that future studies should incorporate at least three case studies so as to provide a good ground

for comparative purposes. As highlighted in the study, the selection of Wipro was phenomenal

particularly in regard to the elements of comparison as well as impartiality. In this measure,

Wipro fared relatively well given that it has distribution centres in over seventy countries and

employs over 111, 000 employees.

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8.0. APPENDICES
8.1. Study Questionnaire

The Role of Information Technology in Human Resource Management

 IT and HRM 61

Contact Information:
Company Name: Wipro
Job Title: ...............................................................................
Length of Time Working for the Company: …………………
NB: Please Answer All the Questions Below, Unless Otherwise Instructed
1. General Questions
a) In precise terms please describe the importance of the human resource department in an
organization?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
b) Please state at least three functions that information technology department plays in an
organizations.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
c) Do you think there is any link between IT and HR departments? YES/NO: Please give
reasons for your answer.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
d) In precise terms describe your understanding of the roles information technology plays in
human resource management processes.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
e) Do you believe it is important for organizations to link their IT and HRM departments?
YES/NO: Please give reasons for your answer.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
2. Company Specific Questions
f) In very precise terms please describe your company’s mission statement and vision.
______________________________________________________________
______________________________________________________________
______________________________________________________________
 IT and HRM 62

______________________________________________________________
______________________________________________________________
g) Do you think the company has been achieving its set objectives? YES/NO: Please give
reasons for your answer.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
h) Do think your company employs IT tools in running its HRM processes? YES/NO: Please
give reasons for your answer.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
i) If the answer for the question above is YES, please describe at least four HRM areas that
have been positively impacted by the IT tools.
(1) __________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
(II) ___________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
(III) __________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
(IV) __________________________________________________________
______________________________________________________________
______________________________________________________________
j) Please describe at least four benefits your company enjoys from linking its IT and HRM
departments.
(1) ___________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
(II) ___________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
(III) __________________________________________________________
______________________________________________________________
______________________________________________________________
 IT and HRM 63

______________________________________________________________
(IV) __________________________________________________________
______________________________________________________________
______________________________________________________________
_____________________________________________________________
k) Please give a rough estimate of the costs your company incurred in implementing the IT-
powered HRM program.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
l) Do you think the competitive edge your company has over its rivals is as a result of the
new IT-powered HRM program?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
m) According to your perceptions of your company’s HRM policies where do you think the
company is performing poorly? What should be done to correct such poor performance?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
n) If given an opportunity to make the final decision regarding the future of your company’s
HRM department would you support IT-based renovations? YES/NO: Why?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
o) Do you think this questionnaire has left something that according to your perceptions
should have been included? Please feel free to state/explain/describe it in reasonable
detail.
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
 IT and HRM 64

1 The End -