Evolution of Human Resource Management - Essay Example

Evolution of HR The proliferation of internet has impacted all business functions including e-commerce and maintaining an integrated supply chain. Competitive pressures have transformed the way companies plan and function through e-hubs. This has exerted pressure on the companies to offer customized service which requires flexibility and speed to response. This in turn needed better, faster and smarter HR solutions (Paauwe & Farndale, 2004, p10). Traditionally the HR department managed recruitment, selection, training, labor relations, payroll, compensation, and retirement and they always avoided embracing new technology (Shani & Tesone, 2010). The HR departments came under pressure with routine work trying to cope with administration and providing more services online, that they could not provide value-added services such as knowledge management, culture management, and strategic direction and renewal. Gradually the focus shifted from playing a purely technical administrative role to being actively involved in the strategic planning and management of an organization. It became essential to add value to enhance competitive advantage. The second perceived need was to incorporate IT in HRM practices. HR functions were transferred to digital formats and even though technology is underutilized, it is increasingly being used in functions such as recruitment, selection, training, promoting, terminating and in complying with legal requirements. IT systems led to the introduction of e-HRM which saves time and costs particularly with online recruitment and training systems. While HRIS can bring substantial savings to an organization, it is necessary that the managers and employees understand the benefits of the new system and are actually ready to use it. Getting the system to adapt to a new system is the greatest difficulty according to Beulen (2009). Benefits in developing and implanting HRIS E-HRM can increase the amount of information provided to people as they obtain online access to HRM policy and practice handbooks. Online notification of holidays and other events facilitate strategic processes while people can even register for training courses online (Paauwe & Farndale, 2004, p11). E-HRM enables help people be constantly ready for change while encouraging online training and learning activities. It also facilitates collaboration between individuals through discussion groups and video-conferencing. It is also known to enhance employee interaction, work-life balance as they can deal with certain personal tasks while at work. In addition to improved accuracy, timely and quick access to information and cost savings, Ngai and Wat (2006) find several benefits of HRIS. These include increased competitiveness by improving HR operations and reengineering the entire HR functions of companies. It also becomes possible to produce greater number and variety of HR-related reports and the focus shifts from HR to strategic HRM. Fast decision-making becomes possible on the development, planning and administration of HR because it becomes easier to store, update, classify and analyze data. However, apart from initial costs being high, the system designers may lack knowledge of HR and the HR users may lack knowledge of applications. E-recruiting The different e-recruiting methods include job boards, corporate career websites and e-recruiting consortia. E-recruiting benefits can be accomplished when there is extensive use of centralized database and system for web-enabled integrated applications exists (Lee, 2004). Only some companies do not accept hard copies of resume by fax or email because of the costs involved in transferring them to the database, while most still do. The corporate career website is the most preferred mode of e-recruiting but since they allow multiple applications for different job roles their websites are often flooded. Moreover, most do not have any pre-screening or online interview tools to screen out candidates which can filter the qualified job applicants and match the profile with job requirements (Lee, 2004, p93). The candidates are willing to provide self-service to match their skills with job requirements but there is no tool available for such practices. The recruitment portal should provide sufficient information to the job seekers on organizational attributes but this appears to be lacking on the corporate career websites. The job seekers seek information on training and career progression which is seldom found on the websites. Specific information can lead to positive impact on the job seekers. Employee-organization fit is essential for long-term association and talent retention. Besides, when any vacancy arises in the organization, since the system is not integrated, they are unable to retrieve the right candidate from the database. Many have failed to achieve the benefits of e-recruiting because they do not have an integrated system and the right e-recruiting practice in place. E-selection Once the resumes are received through emails or the internet, they can be scanned for keywords identifying the required knowledge, skills, competence and experience (Shani & Tesone, 2010). Background checks are now available online and this enables greater efficiency and accuracy in selecting honest and suitable employees. However, e-selection poses a challenge as far as interviews and tests are concerned. Tests are usually conducted online and telephone interviews have become commonplace. Internet-based testing results in cost saving for the organization apart from more efficient administration while the candidate has the freedom to choose the time of the test. E-selection blurs the majority-minority group differences and helps reduce recruiter discrimination. Further advancement has brought in virtual reality technology (VRT) which enables the situational testing of candidates by simulating the actual work environment. While interviews are also conducted through videoconferencing, candidates are comfortable with face-to-face interviews. Self-service & HR portals HRIS technology enables integration of different functions which are tied together in the overall system (Shani & Tesone, 2010). A common database for different function units such as payroll, benefit administration, and pension can be created which eliminates duplication of work, and the entire process becomes more efficient. All information about any employee can be obtained from any company location by simply entering the employee ID number. Intranet-based employee self-service (ESS) provides employees direct access to personal HR-related information (Shani & Tesone, 2010). This reduces the workload on HR as employees can directly handle work such as changing name and address, choosing benefits and filing timecards, travel reimbursements and enrolling in training programs. However, implementation of such system can attract resentment by certain employees. To adapt to ESS organizational efforts are essential which means effective HRIS would require change management at all levels. Employees can even carry out the pay-roll related activities themselves which includes direct deposits, changing voluntary deductions, and filling out forms. The employees can even manage their own benefit plans such as retirement pensions, healthcare, disability and savings. The employees enjoy freedom, privacy and better control while it also eliminates the interactions with HR staff on personal financial matters. However, online security remains a major concern which deters employees from using it. E-learning & Training Training is now conducted through modern computer-based multimedia can enhance training programs through the use of electronically controlled graphics, animation, text and audio (Shani & Tesone, 2010). However, this may involve high initial costs and managerial commitment to achieve success. To overcome the challenge of storage of such programs in CD-Roms, organizations now provide internet-based learning programs which is accessible to them through their corporate network. Web-based training can be delivered at any time in any country and can be accessed based on their time zones. Consistent training material can be transferred to a wide range of employees and although the design costs are higher, the delivery costs are significantly lower. Today work pressures being high, web-based training programs enable employees to access training at their convenience. Updating of training material is inexpensive and regular. However, e-learning has its own challenges because not all employees may be computer literate. Many may not be aware how to download and install the plug-ins to access the course. Moreover the initial costs are high for the organization. Besides, training programs usually require high bandwidth and slow connections may slow down the performance for sound, video and extensive graphics. Some employees may also experience anxiety due to lack of human contact in web-based training programs. Besides, such training programs cannot inculcate qualities such as leadership, service quality and training in dealing with difficult customers. Performance management HRIS has very little role to play in performance management because the HR executives still rely on paper-and-pencil administration and documenting employee evaluation in the traditional way (Shani & Tesone, 2010). However, computer performance monitoring (CPM) is now being introduced which can capture performance quality. Factors such as attendance, work speed, number of assignments completed, the duration for which the workstation is left inactive, the time spent of different tasks, can all be measured. Such a system requires no physical presence of the supervisors and the frequency of feedback can be as desired. CPM can also improve perception and sense of control and fairness among employees as this is an objective assessment. However, through such measure it is likely the focus is on quantity and not on quality. Moreover, the feedback does not suggest how to improve performance. Online evaluation and appraisal software is being used for appraisal management. If performance evaluation is integrated into HRIS, then it becomes easier for managers to identify high performers as all employee records including training appraisal and past performance are available at one place. It also enables identify training gaps and future training needs. Online evaluation allows for frequent evaluation for more number of employees and provides a better link between training and evaluation. Through the software the managers are able to focus on the content rather than on the forms. Overall, the appraisal process is less cumbersome and less tedious for the managers. Conclusion It can thus be seen that HRIS has definite benefits and advantages to the organization as well as the employees. The benefits of HRIS are many which include timely and accurate information, access of data from any location at any time and quick-decision making. However, challenges too are many which can undermine the benefits. The initial investment in HRIS can be substantial and moreover the entire process requires change management within the organization. For this to be successful top management commitment and involvement becomes essential. While changes have taken in all HR functions such as recruitment, selection, training and performance management, challenges too are many. Many employees may not be computer literate and this can be a deterrent. Top management has to be convinced of the benefits of the system which would make it easier for them to allocate resources and also encourage others to implement the system effectively. The HRIS has improved functions such as performance appraisal and evaluations, improved employer-employee relationship and provided anonymity to employees when they use functions such as ESS. References Beulen, E. (2004). The contribution of a global service provider’s Human Resources Information System (HRIS) to staff retention in emerging markets, Information Technology & People, 22 (3), pp. 270-288 Lee, I (2004). E-Recruiting: Categories and Analysis of Fortune 100 Career Web Sites, Chapter IV, E-Human Resources Management: Managing Knowledge People, IDEA GROUP PUBLISHING, http://www.epubbud.com/read.php?g=CPYWPQUF&p=9 Ngai, P.W.T., & Wat, F.K.T. (2006). Human resource information systems: a review and empirical analysis, Personnel Review, 35 (3), 297 Paauwe, J., & Farndale, E. (2004). Web-Based Organizing in Traditional Brick-and-Mortar Companies: The Impact on HR, Chapter I: E-Human Resources Management: Managing Knowledge People, IDEA GROUP PUBLISHING, http://www.epubbud.com/read.php?g=CPYWPQUF&p=3 Shani, A., & Tesone, D. V. (2010). Have human resource information systems evolved into internal e-commerce? Worldwide Hospitality and Tourism Themes, 2 (1), pp. 30-48 Read More