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E HRM pdf - Hrm easy notes

Human Resources Management (University of Calicut)

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Electronic Human Resource Management (E-HRM)

Meaning

E-HRM is a strategic initiative to implement HR activities with a conscious use of internet based
technologies in organisations. The conventional HRM is costly, time consuming and easy to
manipulate whereas E-HRM is cost-effective, transparent and efficient.

Features of E-HRM

1. E-HRM practices are the methods of implementing HR strategies, policies and practices
with the use of modern communication technologies

2. It is not simply the use of internet based services in HRM but a careful adoption of modern
technologies in HR practices and policies with active support of employees.

3. E-HRM replaces all conventional paper and file systems with electronic or web-based
information and data management system.

4. It is a safe and secure system of maintaining employee information keeping privacy and
protection of data. Only authorised persons have access to these data and information.

5. There is greater uniformity, standardization and automation of HR process under this system.

6. Reporting and analysing of data are done easily and quickly under E-HRM.

7. E-HRM facilitates handling of large volume of data from multiple locations fairly and
accurately.

Objectives of E-HRM

The objectives of E-HRM are the following:

1. To monitor human resources data and update employee information on a real time basis.

2. It is used to forecast human resource requirements and to decide HR policy according to the
latest developments in the organisation.

3. To facilitate quick and efficient processing of data for discharging various functions like
recruitment, training, transfer, promotion etc.

4. To build employee confidence and trust in the HR policies and practices by providing
transparent services to employees.

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5. To facilitate central storage of data and faster access to information by HR staff through
networking.

[Link] provide complete security and privacy of HR information and data.

7. To provide faster and transparent solutions to employee grievances and problems.

Advantages of E-HRM

E-HRM offers the following advantages to an organisation:

1. E-HRM reduces the cost of administration of the HR department. The number of staff in the
HR department can be reduced substantially with the adoption of E-HRM.

2. It helps to simplify the operations of HR department like recruitment, selection, training,

employee remuneration etc.

3. It uses uniform and standardized practices in HR activities

4. It is less costly, efficient and facilitates better time management,

5. It offers seamless and transparent services to employees.

6. It increases corporate image and promotes better employer-employee relationship.

7. It provides favourable work environment in the organisation and creates more satisfied
employees.

Disadvantages of E-HRM

In spite of several advantages of E-HRM, it is criticized on the following grounds:

1. It is a costly system. The implementation and maintenance of E-HRM require investment in

computers, softwares, internet services etc.

[Link] is not much useful and affordable to small organisations.

3. Since the E-HRM system is completely depending on infrastructure support, any failure of the
system like internet, software errors etc. can cause delay in providing services.

4. Employees are likely to resist change in the system, therefore, it is difficult to get employee
cooperation and support.

5. There are more chances of errors and omissions under the system compared with
traditional HR system.

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6. There are also chances of risk of losing security and privacy of information under E-HRM

7. E-HRM reduces human relations in the organisations. HR managers' personal contact with
employees is minimum in E-HRM as most of the functions are handled by machines and
systems.

Types of E-HRM

E-HRM is a way of implementing HR strategies, policies and practices in organisations through

a conscious and direct support of information [Link] are three areas in an organisation
where E-HRM can be effectively implemented. These are:

1. Operational E-HRM

2. Relational E-HRM

3. Transformational E-HRM

Operational E-HRM

Operational E-HRM is concerned with implementation of electronic human resource

management in the operational or administrative area. These include maintenance of electronic
employee profile, discharge of basic HR functions like recruitment, training, salary
administration etc. with the help electronic technology channels. The collection, processing and
analysis of data will be easier under this system. The system can be used by HR professionals for
quick decision making. Employees will co-operate with the system since it is transparent, fair
and easily accessible to them.

The important activities under operational E-HRM are:

1) E-Recruitment

Internet is now widely used as a recruiting media by advertising job positions in job portals and
websites. For example, employers or companies advertise in [Link], [Link],
[Link], LinkedIn etc. seeking prospective candidates for job positions in their organisations.
It is online recruitment where prospective candidates can submit their resumes online. An
important advantage of this method is that it can attract large number of applicants for the job.

(2) E-Selection

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The selection process like screening of application, conducting selection tests and interviews can
be done online. Many bodies like Institute of Banking Personnel Selection (IBPS), RBI
Recruitment Board etc. are using this method for selection of candidates. The cost and time
involved in selection process is substantially reduced under E-Selection.

3) E-Employee Profile

The company can maintain an E-Register of its employees containing employee profiles. It is a
comprehensive database of employees and can be integrated with Electronic Human Resources
Information System or E-HRIS. Employee profile consists of their names, addresses, contact
details, job positions, qualifications, certifications, awards, training, skills, work experience,
working hours, leave particulars, transfers, promotions, pay scales, disciplinary actions taken etc.
It provides central storage of information and accessibility to HR officials at a single point.

4) E-Training

A number of electronic platforms are developed to facilitate E-learning and E-training and
development of employees. E-learning resources like virtual classroom, audio and video
presentations, use of Interactive Communication Technologies (ICT) can be made use of for
training of employees. It is more flexible, less costly and more convenient method of training
and development of employees.

5) E-Performance Management

Managers can evaluate the performance of employees, their knowledge and skills using web
based tools and techniques. Employees may be require to submit online questionnaires or
feedback forms as part of the evaluation process. It ensures less paper work, lower administration
cost and higher response rate from employees.

(6) E-Compensation

Employee compensation is an area where large amount of paper work is involved. Timely
payment of employee benefits is an important factor affecting company image and employee
satisfaction. Electronic compensation system can handle all remuneration matters Nike
determination of pay scales allowances, deductions, increments, incentives and bonuses,
promotion benefits etc.

(7 E-Grievance Redressal

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Employee grievances and problems can be easily solved using electroic or web-based redressal
system. It is a transparent system where employee grievances may be raised through e-mails or
links provided in the employee portals. The system provides quick and fair remedies to employee
grievances and problems.

Relational E-HRM

Employer-employee relationship is the core of HRM practices in any organisation. Relational E-

HRM emphasises on building employee relationship credibility and trust with the use of internet
based systems and services. The adoption of relational E-HRM makes HR practices and policies
transparent to employees.

Relational E-HRM assumes that employees can directly access to information regarding
employees. It is designed to manage and sustain relationship with employees by improving HR
services efficiently. The employees are empowered directly and their trust in the HR department
is increased E-HRM system.

Objectives of Relational E-HRM

Relational E-HRM is used in an organisation with the following objectives

1. It is used with the objective of building better employer relationship and trust.

2. Employees feel that they are treated fairly well in their relationship with management and
fellow employees.

3. It enables employee empowerment and recognition.

4. It provides accurate and comprehensive employee data and their work in the organisation.

5. It facilitates faster processing of information and data with the use of web based systems and
services.

Transformational E-HRM

Transformational E-HRM is concerned with the use of information technology in areas like
employee development, employee motivation, knowledge management, employee reorientation
etc. Employees can make use of the E-HRM system for their personal development, career
planning, career choice, promotion plans etc. The object of Transformational E-HRM is to make
the employees more dynamic, competitive and change ready.

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