Sunday, May 20, 2018

HRM in the Digital Age


The world has changed in cultural, societal and economical sectors due to digital technological changes. Those changes play a role in employees’ lives and HRM. According to Ashbaugh and Miranda (2002), in this digital age, HRM has transferred as E- HRM, as companies have to be adopted for the digital technological changes in recruit to retire functions, to be success. Evolution of HRM in according to technology changes is given below.

        Figure 1- Evolution of HRM according to technological changes. (Ashbaugh and Miranda, 2002)
Table 1- Evolution of HRM according to technological changes

Stage
Functions
Example
Paper-Based Systems/Legacy mainframe systems
  • HR was the sole custodian of the data.
  • Reporting was very rudimentary
In earlier time HR manager send employees to HR department to get their all their needed personnel information noted down by a HR officer.
Personal Computer (PC) Technology and local area network (LAN) systems
  • HR data were stored on a client server which is HR network.
  • Able to produce reports that simply listed employee information.
In Hemas Ltd. earlier time all the information on HRM practices are entered in to a PC and stored there.
Electronic Database Systems
  • Emergence of relational database that stored a piece of data in more than one file, with different types of data.
  • Develop more complex reports that integrated several data elements.
  • Enterprise-wide system was initiated (SAP) which interrelate HR functions with all other departments.
  • E-HRM has begun.
Singer HR department was able to generate employee report could from different databases that included name, address, and salary and benefit information.
Web-Based Technology
  • Interactive voice response (IVR)
To interact with databases to get information or enter data into it a touch-tone phone is used.
  •  Web-based applications
Applications that use a Web browser as a user interface
Omega Line Ltd. HR department used to get basic information needed from candidates for the recruitment process via website information forms.


(Author developed based on Ashbaugh and Miranda, 2002)

If considered 21st century, most of the HRM functions are linked with this digital technology.
Table 2- Electronic technological tools used in HRM functions in 21st Century 

Function
Technology Tools
Process/ ac
Employee recruitment, selection and placement.
  • E-recruitment web portals
  • Social Media Sites (Facebook, LinkedIn)
Post available job positions and qualifications in web portals and job seekers select their expertise and apply.
Employee Development
  • E-learning
  • Career Development Online Appraisal System (e-performance)
Employees are able to increase their skills through e-learning as they are provided with necessary inputs for career growth and feedback on their performance via E-learning.  
Compensation
  • E-compensation,
  • Compensation settlements Flexi-reward Packages Facilities
Determine the cost to company for the compensation plan awarded to employee and employee can determine the pay he will get in hand via e-compensation system they have lounged.
Employee Relations, Communication and Work Environment
  • Intranet
  • OD and Team Development
OD exercises help in bringing organizational change and effective team development and build better employer employee relations.
Decision Making
  • Decision Support System (DSS) 
  • Artificial Intelligence (AI) System
  • Online Analytical Process (OLAP)
  • Group Decision Support System(GDSS)
DSS Technology tool used to get HR decision enable for taking quick business decisions as it summarize large amount of data with speed to a useful result.  
Human Resource Information System (HRIS)
  • Intranet availability of Data record of  Employees

All the information on company portals, employee portals, company policies, employee feedback etc. of Google.com is available in company intranet.
(Author developed based on Beer, 1997)

Challenges of E-HRM on organizations

It can be analyzed that with the concept of E-HRM, all the HRM data are mainly stored and handles via technological systems. According to a research done in China on E-HRM by Shrivatsava and Shaw (2003), it is a challenge for HRM, with the advance of technology, security of the data privacy also has to be advanced. HRM will have to lounge security systems, prevent privacy breaches and provide trainings for employees on data securing, which will cost high and time consumable and it will directly impact on company profits.  
According to a web based survey 136 US and Canadian on E-HRM by Tansley and Watson (2000) stated that with rapid technological changes in according to remain competitive advantage, companies will have to adopt for the technological changes. Therefore companies will have to lounge new digital systems with the trend. It is required to provide trainings for employees which will be a cost for the company that have to be bared anyhow. 

According to Ulrich (1997) a research done on  Motorola in Russia he has stated that, changes in technology can result in anxiety and resistance among employees. Most of the roles of employees are replaced by a machine or computer which is cheaper and fast, but this enables lack of trust on employees towards the company and de-motivated.  It is a challenge for HRM for assure employees of their worth and meaningful place within the business and by help to see the technology as an aid not a hindrance to their work. 
Figure 2 - Technology and Employees (Beer, 1997)
According to above saying it can be analyzed that due to this technological development employees will even tent to be like machineries. Innovative and Creative ideas might not pop up and it is a great challenge for HRM to pop up and develop creativeness from the employees. 
  
Figure 3- Author's suggestion corner (Author developed) 

References

Ashbaugh. S. and Miranda. R. (2002), “Technology for Human Resource Management: Seven questions and answers”, Public Personnel Management, Sage Publication, 31(1).
Beer. M. (1997), “The transformation of the human resource function: Resolving the tension between a traditional administrative and a new strategic role”, Human Resource Management, 36(1).
Fernandes. A. (2017). The Digital Age of Real Estate. Deja Vu Real Estate Broker, 4-9.
Shrivatsava. S. and Shaw. J. B. (2003), “Liberating HR through technology”, Human Resource Management, John Wiley & Sons Ltd. 42 (3).

Tansley. C. and Watson. T. (2000), “Strategic exchange in the development of human resource information systems (HRIS)”, New Technology, Work and Employment, 15 (2).

Ulrich. D. (1997). Human Resource Champions: The Next Agenda for Adding Value and delivery Results. Harvard Business School Press, Boston.  












17 comments:

  1. You have gathered decent amount of data to present HRM in digital age. Mentioned that securing data is one of the challenges. Well structured .Good work Thameera.

    ReplyDelete
  2. You have read and researched a lot on the subject. very interesting write-up. but try to limit 350-400 wards.keep it up good work..

    ReplyDelete
    Replies
    1. I appreciate your valuable comments. But in academic writing, words that included in tables and graphs are not counted for the word count. I have wrote this blog limiting for the given word count.

      Delete
  3. Under the topic of HRM in digital age, you have talked a lot. Actually it is very interesting and Challenges of E-HRM in an organization is presented attractively. Keep continuing !

    ReplyDelete
  4. Looks like you have researched a lot regarding the topic, good job, if you could add few latest references, it would be great, keep it up

    ReplyDelete
  5. Temporal topic & the essay contains some good references. Well done

    ReplyDelete
  6. Wel structured and nice flow Thameera

    ReplyDelete
  7. Great references and great way of writing

    ReplyDelete
  8. Good referencing and nice arranged flow. Keep it up

    ReplyDelete
  9. well structured with informative points.

    ReplyDelete

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