Modernizing the Function of HRM: The Impact of E-HRM (HRIS)
Modernizing the Function of HRM
People are what give a company its functionality. As a result, it's important to find, select, and retained qualified staff (Laumer et al. 2010). The human resource management (HRM) divisions of organizations oversee all workforce-related concerns, such as employee performance, training, recruitment, staffing, and payments (Stolt 2010). Stolt (2010) HRM is a strategy for proactively managing the most precious asset of an organization—the person who, individually or collectively, contributes to its success. In the past, HRM has been essential to raising an organization's performance. According to Opatha (1995), HRM is the efficient and effective use of HRs to accomplish an organization’s goals. There is a strong correlation between organizational effectiveness and HRM. Throughout the past few decades, technological advancements have led to innovative commercial developments. Technology has also changed how HR professionals interact with one another, do business, and manage staff members. It has two immediate consequences on businesses: (1) a rise in productivity, effectiveness, and efficiency; and (2) a change in how people build, arrange, run, and manage a company (Zhang and Wang 2006). The proliferation of the internet and other specialized equipment, along with these considerable technological advancements, have forced businesses to make the most of their potential for performance and to improve the effectiveness of their HRM departments. As a result, HR professionals must adjust to the intensifying competition, shifting employee attitudes, and quickening pace of HR technology development.
The Impact of E-HRM
E-HRM is a way for integrating HR practices, policies, and procedures in businesses by leveraging the use of web-based technology-based channels (Ruel et al. 2007). Employers, employees, and HR professionals can see, retrieve, and edit data needed for managing the organization's HRs through a portal created using e-HRM technology. Strohmeier (2007) defines E-HRM is the application of information technology to support collaboration between at least two individuals or groups of players in the HRM process. According to Surveys, both the quantity of firms embracing E-HRM and the variety of applications used by those organizations are growing. "E-HRM has the potential to increase the HR function's effectiveness and efficiency." Efficiency can be improved by reducing office work cycle times, improving data quality, and minimizing the HR workforce. Efficiency can be increased through enhancing practitioners' and employees' capacity to make better, more appropriate judgments. Moreover, E-HRM empowers HR to investigate novel approaches to support organizational effectiveness via knowledge management and the growth of intellectual and social capital (Lengnick-Hall & Moritz 2003).
Based on the previous definitions, we can state that E-HRM is the application of information technology to HR procedures to facilitate communication between employers and employees as well as to help businesses develop their HR capabilities.
What is HRIS?
Human Resources Information System is what it's called. A system called the HRIS is used to gather and keep track of personnel data. An applicant tracking system (ATS), payroll, benefits, time & attendance, training, performance management, employee self-service, and other things are frequently included in this (Vulpen, 2022). According to Vulpen (2022) an organization's employees' name, address, age, income, benefits, time and attendance, performance evaluations, and other personal information is gathered and stored using a system called the human resource information system (HRIS). This information is a crucial starting point for data-driven HR decision-making.
The most popular solution used by HR departments to streamline daily operations is this one. advantages of HRIS systems for HR departments doing people activities. The HRIS functions listed below were mentioned by Vulpen (2022) on the AIHR website:
- Applicant Tracking System (ATS)
- Payroll
- Benefits administration
- Time & Attendance
- Training
- Performance management
- Succession planning
- Employee self-service
- Reporting & Analytics
Conclusion:
This blog specifically mentions how technology is being used to modernize HR processes. To make their work effective and efficient, numerous systematic processes are used to manage HR functions and daily tasks. The HRIS system is the one that most large organizations utilize globally. According to my research investigations, the traditional HRM system is shifting in favor of digitalization, which has aided the HR department's management of its workforce.
References :
Laumer, Sven, Andreas Eckhardt, and Tim Weitzel. 2010. Electronic HRM in an ebusiness environment. Journal of Electronic Commerce Research 11: 240–50.
Opatha, Henarath H. D. N. P. 1995. HRM Personnel. Colombo: European Institute of Professional Education
Ruel, Huub J., Tanya Bondarouk, & Mandy Van der Velde. 2007. The contribution of e-HRM to HRM effectiveness: Results from a quantitative study in a Dutch Ministry. Employee Relation 29: 280–91.
Strohmeier, Stefan. 2007. Research in e-HRM: Review and implications. HRM Review 17: 19–37.
Vulpen, E.van (2022) What is a Human Resources Information System (Hris)? an HR practitioner's guide, AIHR. Available at: https://www.aihr.com/blog/human-resources-information-system-hris/#Benefits (Accessed: March 31, 2023).
Great information regarding the HRIS system. Some big-scale businesses in Sri Lanka are currently converting their departmental manual tasks to software solutions. Nonetheless, due to financial constraints, small businesses continue to employ manual processes.
ReplyDeleteBecause software systems frequently hold a lot of sensitive employee data, including Social Security numbers, addresses, and financial information, therefore, large organizations also refuse to utilize them. Hackers utilize such private data to commit serious online crimes including identity theft, financial fraud, and other offenses.
I appreciate your suggestions. Having between 30 and 50 employees is when HRIS starts to get interesting. Big and medium-sized businesses are already implementing these technologies to streamline their operations and save data digitally rather than manually. Even now, some businesses are having trouble adjusting to new technological devices. But, it is our duty as research students to at the very least train our firms to use these tools to support our HRM's people management.
DeleteJanaka, yes You and I both agreed. And in order to convert the small-scale & disinterested firms to digitalization, it is imperative to deploy highly secure, economical revolutionary software solutions.
DeleteGreat writing Janaka. According to my readings, electronic human resource management (e-HRM) has transformed the way HR activities are carried out in organizations. E-HRM involves the use of digital technologies to manage HR processes, including recruitment, performance management, training, and development (Suliman & Abdallah, 2015). The impact of e-HRM on organizational performance has been widely studied, with evidence suggesting that it can lead to increased efficiency, cost savings, and improved decision-making (Bussler & Davis, 2008). Moreover, e-HRM can improve employee satisfaction and engagement by providing greater access to HR information and services, enhancing communication, and promoting greater transparency (Cappelli & Keller, 2014). However, e-HRM can also present challenges, such as the need for employees to adapt to new technologies and potential security risks associated with the storage and management of sensitive HR data (Shen & Benson, 2016). Overall, the impact of e-HRM on organizational performance depends on how well it is implemented and managed, with effective use of technology and a focus on employee needs and engagement being key factors for success. I hope you can agree with me.
ReplyDeleteYes Lasni I agree with your approaches towards my article.
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ReplyDeleteHi Janaka, I completely agree with your assessment of modern HRIS applications. With the rise of cloud-based solutions and AI, HRIS technology has transformed the way HR professionals manage their workforce data. The ability to access real-time information, automate manual procedures, and generate insightful reports has made HR more strategic and efficient than ever before. However, it's important to remember that technology alone cannot achieve the desired results. HR professionals still need to invest time and effort in understanding their organization's exclusive needs, choosing the right HRIS solution, and applying it successfully to achieve maximum benefits. Overall, modern HRIS applications have the potential to transform the way we work, but it's up to us to make the most of them.
ReplyDeleteThank you your interest on my article Praveen.
DeleteI agree with the article's premise that technology has had a significant impact on the field of HRM, leading to increased efficiency and effectiveness. The adoption of e-HRM and HRIS systems has allowed HR professionals to streamline their daily operations and make data-driven decisions. By integrating technology into HR practices, organizations can better manage their workforce and respond to changing employee attitudes and expectations.
ReplyDeleteThank you your interest on my article Hansika.
DeleteHi Janaka, I completely agree with your Embracing E-HRM (HRIS) can revolutionize the way Human Resource Management functions in the modern era. The use of technology in HR processes can streamline operations, enhance employee experience, and optimize decision-making (Smith, 2023). From automated recruitment processes to data-driven analytics, E-HRM is transforming HRM into a strategic driver of organizational success. It's time for HR professionals to embrace the power of E-HRM and unlock its potential to shape the future of work.
ReplyDeleteThank you your interest on my article and the value addition Hadhil.
DeleteHi , great information about when, according to researchers suggest three goals of e-HRM: reducing cost, improving HR services, and improving strategic orientation.
ReplyDeleteHR managers can make a human resource plan more quickly and accurately, make decisions faster, define jobs more clearly and enhance communication with the employees and the external community.
Do you think in Sri Lanka majority of the major organizations are into eHRM?
Yes more MNC companies are use to EHRM and with the 5th industrial revolution more companies in Sri Lanka are transferring from Traditional HR to modernized SHRM with the use of E-HRM.
DeleteWell penned.
ReplyDeleteAgree that technology has brought about massive transformations in HRM. However, the cost involved and the skills needed by the HR employees to adopt the technological advancement is a fact that is under debate. Not that all organisations (varying on their size) can adopt the technological advancement. There are small / medium scale organisations who still go on the traditional methods but may face difficulties to compete in the fast moving technological market.
Yes it's a cost for an organization but it's a good investment for a long term planning and to compete in the industry with the use of Tech.
DeleteAccording to the article, the efficiency and efficacy of HR activities like as recruiting, selection, performance management, and training may be improved by automating jobs, eliminating paperwork, and simplifying workflows with HRIS. This results in a digitalized era that is more convenient for HR personnel. Janaka, you wrote an excellent essay. keep up the fantastic job
ReplyDeleteThank you for the interest on my article Khan.
DeleteHi Janaka, it’s a comprehensive report of EHRM. At the current global context convert the manual HRM to eHRM is very important to compete with competitors. All the HR functions are now digitized, and system generated records and information are accurate and dependable. Introducing HRIS system is make the employee life easy. In using new technology in HR management, the new concepts of agile work environment, WFH concept, remote working employment have been introduced and implemented. It has also been drastically reducing the operational cost and resulted to increase the bottom line of the organization.
ReplyDeleteHi Chamara! I agree with you and thank you for the value addition.
DeleteVery good article Janaka. There are many takeaways. HRIS can make an epic impact on the HR function as it allows organizations to store large amounts of information quickly. This type of process helps to reduce work of duplication/repetition and ensures a streamlined process. Then it will help to minimize costs. Because of HRIS, HR staff also spends less time on administrative tasks and they can utilize that time for planning future programs.
ReplyDeleteThank you for the interest on my article Kasun.
DeleteHi Janaka , great information about eHRM, eHRM practice provides a more efficient and strategic way of working to reach the goals. E-HRM facilitates human resource functions with the chance to create new avenues for committing to organizational success.
ReplyDeleteThank you for the interest on my article.
DeleteI appreciate you providing this useful article. It's fascinating to observe how technology is transforming the field of human resources management, especially in large organisations where HRIS systems are starting to predominate. It's important to note, though, that this trend is not just affecting big businesses; small and medium-sized businesses (SMEs) are also increasingly using HRIS systems to manage their HR operations. While there may be some implementation and financial difficulties for SMEs as a result, it is obvious that there are too many advantages to digitization to ignore. As a result, it's critical for SMEs to consider their options and discover methods to use technology to simplify their HR operations and increase the effectiveness and efficiency of their work.
ReplyDeleteAs described in one of my previous articles "OVERCOMING CHALLENGES: SUCCESSFULLY DEPLOYING HRMS IN SMALL BUSINESSES", While it can be beneficial for organizations of any size, small businesses often face unique challenges during the implementation process. Some of the common challenges faced by small businesses in the implementation process of EHRM are:
1. Limited resources
2. Lack of IT expertise
3. Resistance to change
4. Data security and privacy concerns
Dear Nadeer!! Thank you for the value addition to my article.
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