Information Technology- A Revolution in Hrm
Mr. Abhishek Gupta
Er. Upasana Kanchan
Asstt. Professor,
Lal Bahadur Shastri Institute of Management &
Technology
29, theatre road, cantonment area, Bareilly-243001
E-mail-id: kanchan_upasana@yahoo.com
Abstract—Today, Information technology has totally
transformed our lives. It has changed the way we
communicate, how we learn, how we work and spend
free time, in short – it has more or less changed every
aspect of human society one can think of. Developments
in the field of IT have shape up the way the HR function
is performed in organizations. Over the past 5-10 years,
HRM functions sought to play more strategic role in
their organizations and this requires eliminating
transactional tasks in order to free up time to focus on
traditional & transformational activities.
The use of information technology can both make HR
more strategic and by doing so increase the value that
HR adds to the business. This paper deals with the use
of information technology and internet for better
human resource management. The recent and
inevitably coming changes in the various areas of
human resource management like staffing, motivating
and leading has been observed in this study. The paper
answers to what actually is e-HRM and what are the
objectives of e-HRM? How e- HRM can help an
organization in improving its performance & cost
reduction?
This paper and its conclusions add to the debate on the
importance of information technology for HRM in an
organization, by specifying various uses of IT in
different areas of HR.
Key words: Human Resource Management, Electronic
Human Resource Management, Internet & Information
Technology.
INTRODUCTION
The information technology (IT) revolution has
had an enormous influence on how organizations are
managed. It can credibly be claimed that no other
source of change has had more impact on the
paradigms and practices that underline the
management function. The number of Internet users
has grown over 300 million in year 2000 and
predictions for year 2010 are set for 1.7 billion which
is 25.6% of the world population. These facts already
indicate that the Internet has significant effect on how,
why, where and when people work. The Internet and
IT have the most prominent influence on more
Lecturer
Sri Ram Murti Smarak College of Engineering &
Technology
Bareilly, India
2007abhis@gmail.com
educated, skilled and ambitious people, especially
those, that are regularly working with information and
communication technology (ICT). Since they are also
the ones that occupy important positions in
organizations hierarchy and are therefore of great
significance for the overall success of the company,
we shall focus our attention on the influence of the
Internet on such employees. Any potential advantage
of the Internet-usage that a company can exploit to
recruit, develop and retain these types of personnel, is
even more important due to the fact that there is a
shortage of highly profiled people in the workforce
market. Therefore, human resource departments are
not immune to this technological growth. Human
resource management is a vital part of any
organization’s internal activity and information
technology is supporting to it not only in effective
human resource management but also making its
various HR activities automated and helping the
managers in their regular planning and decision-
making. Jager (2001) believes that HRM will acquire
a new dimension with the emergence of e-business.
Wright & Dyer (2000) also give similar reasoning- “e-
business is emerging and therefore HR and HR
professional are faced with the challenge of
performing in ways that are in line with the business”.
In their view ‘HR functions [can] become critical
partners in driving success, but to do so requires that
HR changes its focus, its role, and its delivery
systems’
E-HRM
E-HRM is a way of doing HRM. It is the
(planning, implementation and) application of
information technology for both networking and
supporting at least two individual or collective actors
in their shared performing of HR activities. Although
There are many other terms also which are similar in
meaning to e-HRM like virtual HR(M), HR intranet,
web-based HR, computer-based human resource
management systems (CHRMS), and HR portals. But
people generally get confused between e-HRM and
HRIS (human resource information systems).
A. Difference between E-HRM and HRIS:
There is a fundamental difference between
HRIS and e-HRM in that basically HRIS is directed
towards the HR department itself. Users of these
systems are mainly HR staff. These types of systems
aim to improve the processes within the HR effectiveness and efficiency. This is illustrated in the
departments itself, albeit in order to improve the below-
figureFrom To
service towards the business. With e-HRM, the target
group is not the HR staff but people outside this Traditional Electronic
department: the employees and management. HRM face-to-face delivery
services are being offered through an intranet for use delivery
by employees. The difference between HRIS and e-
HRM can be identified as the switch from the
automation of HR services towards technological
support of information on HR services. Thus e-HRM
is a way of implementing HR strategies, policies, and
practices in organizations through a conscious and
directed support of and/or with the full use of web-
technology-based channels.

To
GOALS OF E-HRM
Process
From
The rapid developments in IT, and in its possibilities redesign
for HRM, have led to the following goals of e-HRM: informat
Outsour ion
cing technolo
A. Improving the strategy orientation of HRM: gy
HR departments must be able to focus on
strategic questions. They also need to be
flexible in terms of policymaking and
practices.
Figure: HR Activities- change in delivery
B. Cost reduction/ efficiency gains: HR
departments should work efficiently and be
aware of costs. The focus should be on cost
reduction. We explore some examples next-

C. Client service improvement/ facilitating

management and employees: HR
departments should be service oriented
towards management and employees. The
focus should be to improve the client
services.
Many companies use e-HRM with the aim of
improving strategic role of HRM, reducing
administrative HR work, and improving employees’
satisfaction with HR services.
A. RECRUITMENT & SELECTION:
Traditional recruitment and selection processes have
required considerable face-to-face communications
with recruitment firms and potential employees, labor-
intensive assessment devices, and significant
monitoring of managerial decisions to ensure hiring
patterns and decisions do not run afoul of regulatory
requirements. However, technology has transformed
these processes.

Carrying out recruitment activities with the use of the

USE OF INFORMATION TECHNOLOGY IN HRM- OUTCOMES OF
E-HRM
The speed requirements of e-business force HRM
functions to explore how to leverage technology for
the delivery of traditional and transformational HRM
activities. This does not imply that over time all of
HRM will be executed over the web, but that a
number of HRM activities currently delivered via
paper or face to face communications can be moved
to the web with no loss (and even gains) in
internet is one of such new development. E-
recruitment is growing faster and a study reveals that
online recruiting accounted for one of every eight
hires last year, according to k.force.com’s poll of 300
U.S. companies.
The simplest form of online recruitment is where an
organization posts an advertisement of a vacant
position in a website for a fee. Most websites do
maintain a separate webpage or a link on employment
opportunities or else they provide applicants the
opportunity to submit their resume for vacancies that
are likely to occur in future. The most advanced form
of online recruitment is where organizations with
corporate website provide online application or
maintain a separate webpage as ‘Careers’ or
‘Vacancies’ which provide information on existing
vacancies, qualifications required and application
procedure. Organizations with futuristic vision have
gone beyond this level as to add a link on their
corporate website inviting individuals who are
interested in joining the company to provide
information through the website. This particular link
is a part of the database which maintains the list of
future prospects that have shown interest in joining
the company. Some specialists call this as Talent
Resource Management (TRM).
Many Headhunting firms are working towards the
‘electronic’ way and developing and maintaining
websites. They advertise vacant positions and invite
applications online with the use of such websites.
These organizations do maintain a database of future
prospects and interested individuals are provided the
opportunity to apply online. Once applications are
received employers would streamline them to select
the potential applicants. Most advanced HR software
provides sorting out options for selecting suitable
candidates. Initially the sorting out is based on the
policy set by the organization. Most jobs require a test
of various skills and analytical ability of selected
candidates. IQ tests, psychometric tests, general
knowledge tests and language application tests are
highly used for this purpose. Nowadays these tests are
done online or in a networked IT lab and marks are
awarded immediately after the candidate has
completed the tests. Individuals that meet minimum
criteria are selected for the second phase of selection.
E-selection of this nature is carried out to fasten
selection of new employees and to reduce the burden
of the organization and of the HR staff.
For example- firms such as Q-Hire in Austin, Texas,
provide online testing services. Applicants for
positions at a firm are directed to a website where
they complete an assessment device. Their scores are
immediately compared to an ideal profile, and this
profile comparison is communicated to the company
screening manager. Firms can gather considerable
amounts of relevant information about potential
employees long before they ever need to set foot on
company premises.
The main advantages of internet supported recruiting
are:
● Lower costs of recruiting (savings in invitations for
application, postal-costs, data-processing costs…).
● Quicker process of recruitment: period from the
point when the need for a new employee is sensed
until the point when he starts doing his job is,
according to the research, cut for twelve days.
● Possibility to attract better and more candidates –
invitation for application published on a website can
also be spotted by those, who are currently not
seeking new employment actively.
B. COMPENSATION AND REWARDS:
compensation systems in an organization
play a critical role in attracting, motivating, and
retaining employees but still most of these systems
consist of rigid, time-consuming, and ineffective
processes. Leveraging technology may allow firms to
better achieve their compensation goals with less
effort. Companies that specialize in compensation
now offer online salary databases, allowing for faster,
easier comparisons and job posting sites allow
recruiters to compare what other companies are
offering. Although using the Internet is faster, it still
requires some research on the part of HR. Free online
data, like Salary.com, should always be carefully
scrutinized. Nevertheless, for small companies unable
to invest thousands of dollars in a formal survey, the
Internet is invaluable. Also there are softwares which
track core-competencies and provide the manager
with tips for employees needing improvement or
coaching. It can also help the supervisor to analyze
the performance of employees. These appraisal
systems also enable companies with numerous
locations to manage consistently across operations.
C. TRAINING: Using different tools for
delivering training (PC, video, role play etc.)
definitely is not a new concept. Now days most of the
firms have begun delivering training via Web. Their
experience suggests that some types of training can be
done effectively via the internet or an intranet,
whereas others might not. For example- companies
such as IBM and Dell both boast that they have
developed Internet-based training for some parts of
their workforce.
In today’s competitive environment, firms compete to
attract and retain both customers and talented
employees. How well a firm develops and treats
existing employees largely determines how well it
achieves these outcomes. E-training or online training
is emerging and provide participants the opportunity
of high interaction and knowledge sharing. All the
resources are electronically provided and highly
interactive sessions are carried out in much
convenient manner. Generally training schedules,
handouts, and course descriptions are posted on the
company intranet. The advantage of online training is
its 24-hour availability, which is especially crucial for
global enterprises. Online training is also cost
effective, saving travel expenses and time spent away
from the office. Moreover, the fear of the classroom
setting makes online learning attractive to some
employees; it allows them to remain semi-anonymous
while asking questions and allows the ability to learn
at their own pace. In the future, more training will be
brought directly to the desktop through desktop video,
adding interactivity and more fun to the learning
process. Low cost, high focus of employees, increased
flexibility and sustainability of content and learning is
popularizing e-training. Internet connection speed,
computer configurations are vital for a successful e-
training session.
D. EMPLOYEE DEVELOPMENT & found and an improved quality of information. Not
MOTIVATION: Internet-based technology offers
numerous possibilities for getting hold of new
knowledge and skills. Firstly, company wise, it offers
much quicker access to latest scientific and
technological innovations of other companies and
research institutions (Jerman-Blazic, 1996). For each
individual it offers itself as vast searchable database of
web pages, newsgroups, mailing lists, online courses,
forums, etc. Today’s organizations are shown to be
interested in building intranet to increase the
interaction between internal customers and associates
of the organization. The whole idea is to generate
enthusiasm among employees on the importance of
information sharing and communication. If the HR
site is a standalone site then it would be linked up
with the organization’s intranet. Improving self
servicing for internal customers is another objective of
developing intranet. The most advanced site would
provide access to the employee information system, e-
attendance, e-leave application, e-training materials
and previous performance data.
E. EASE OF COMMUNICATION: E-mail
which all of us are familiar with is used for receiving
applications and communicating with employees in
the organization. When organizational units are
geographically dispersed e-mail is used to access all
the units in a short period of time. Reduced paper
work and reaching many numbers of people at one
click are some of the benefits of e-mail.
CONSEQUENCES OF E-HRM
Here in this study, I am also analyzing consequences
along with the outcomes of E-HRM. Thus, in order to
categorize findings concerning consequences,
individual consequences on the micro-level and
operational, relational and transformational
consequences on the macro-level, are distinguished
from each other.
A. INDIVIDUAL CONSEQUENCES: -
Individual consequences refer to e-HRM
impacts on the micro-level. The study reveals
increased employee acceptance and satisfaction due
to added value like time savings or increased
accuracy of results. Findings regarding e-recruiting
show that e-recruiting lead to higher applicant
satisfaction (Rozelle & Landis, 2002). Applicant
perceptions of electronic job search are even more
positive owing to a clearly greater number of jobs
surprisingly, ease of navigation, systems speed, and
user friendliness of the technologies considered lead
to better image and attraction of applicants. Also,
useful content concerning e.g., compensation and
career development as well as feedback concerning
the person-organization fit of applicants lead to
positive attitudes and attraction of applicants.
Besides applicant reactions, attitudes of recruiters are
also positive. Interestingly, paper-résumé applicants
are viewed as more friendly, while electronic-résumé
applicants are viewed as more intelligent,
technologically advanced, and possessing better
overall qualifications. There are positive applicant
reactions towards e-selection procedure. Perceived
fairness of e-selection procedures is influenced by a
hierarchy of justice factors of which the consistency
of the screening system, the opportunity to perform,
the ability to provide additional information, and the
ability to appeal are important. Additional benefits
of information technology like convenience,
delivery, interface, accuracy, price, and security are
factors that influence satisfaction of employees with
satisfaction significantly related to organizational
citizenship behavior.
To sum up, so far E-HRM obviously seems to be
generally accepted and sometimes even preferred to
conventional HRM. Attitudes of individual actors then
seem to pose at least no general problem for E-HRM.
B. OPERATIONAL CONSEQUENCES: -
Another area of our concern is
operational consequences comprising both efficiency
and effectiveness related macro-level consequences of
e-HRM. There are many examples of companies
where productivity has increased due to the
application of E-HRM. The results generally indicate
a reduction of HR staff, faster-processes, cost
reduction, and a release from administrative burdens
resulting from automation. On the other hand, savings
within the HR department are also an effect of simply
shifting responsibilities from HR to line managers and
employees. Also, considerable cost savings are
reported for e-recruiting and e-selection, due to
reduced employee turnover, reduced staffing costs,
and increased hiring efficiency. Not surprisingly, e-
learning is also able to save costs if used for larger
groups of learners. In addition, there are survey based
findings showing HR professionals spent less time on
routine tasks but had to spend additional time on
information technology related activities and on
developing information technology related
qualifications (Gardner et al., 2003).
Besides this, information technology enables HR
professionals to provide increased information
responsiveness to their customers and to have more
information autonomy and more external professional
links. Technology then serves as an “enabler” that
empowers HR professionals to provide more value to
their organizations.
B. RELATIONAL CONSEQUENCES: -
Relational consequences refer to the new and
extended possibilities of interactions between actors/
individuals, leading to heterogeneous networks. With
the help of E-HRM HR professionals are able to
connect to more professional sources outside the
organization. Information technology leads to, or at
least possesses the potential for, (global) integration
and harmonization of HR activities. Since spatially
separated actors can be networked, e-HRM seems to
be a means to standardize HR and to overcome
hurdles of different cultures and languages.
C. TRANSFORMATIONAL
CONSEQUENCES: -
Transformational consequences concern the overall
changes of the HRM function that centrally aim at the
role the HRM plays in company performance and
strategy support. Many organizations are the examples
that demonstrate the potential of IT to move HR
towards global integration and to support international
strategy and at least partially emphasize the role of
HR as a business partner. Now HR professionals can
focus on more meaningful tasks and are empowered
to provide more value to their organizations. In brief,
e-HRM may help a lot to contribute to a more
strategic role of HRM.
CONCLUSION
Certainly IT has carved out a new scope for Human
Resource Management. Firstly, e-HRM seems to be
providing an important ‘push’ to put HR
responsibility in the hands of the line manager. After
15 years of ‘preaching’, an administrative component
of HR is becoming a task for the line management.
Paper based administration consumes 80% of the HR
department’s time and the digital approach is to
reduce the HR administration time and cost, increase
accuracy of HR data, routinized transactional
activities of HR and increase reporting functionality.
The introduction of e-HRM is accompanied by the
decentralization of HR tasks and by the harmonization
and standardization of HR processes. In order to
become a ‘real’ global company, HR policies and
practices need to be the same in ‘all the corners of the
globe’ where a company is present. Differences in
cultures and languages between continents and
countries are a hurdle in the acceptance of newly
introduced web-based HR facilities.
E-HRM is an innovation in terms of HRM. In the
first place because of the opportunities it creates to put
employee-management relationships in the hands of
the employees and line managers. In the second place
because information technology creates possibilities
to design HRM tools and instruments that would not
be possible without this information technology. A
good example is advanced personal assessment and
measurement tools that can be used at any moment of
the day, and in any location. The new role for HRM is
to empower the employee and generate maximum
value for the business by focusing more on strategic
activities rather than transactional activities.
Employees really can begin to steer their careers with
a click of a mouse. HR professionals have to realize
and accept this: it will not go away. It is probable that
we won’t even need to point this out in a few years
time: it will be seen as stating the obvious.
REFERENCES
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and Information Technologyon Work and Human Resource
Management, informing science June 2003
[3] Shamil M M M, Managing HR; the digital way
[4] Huub Ruël, Tanya Bondarouk, Jan Kees Looise, E-
HRM: Innovation or Irritation. An Explorative Empirical Study in
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