Human Resources Management - Essay Example

HUMAN RESOURCES MANAGEMENT: INFORMATION TECHNOLOGY By Ron Steele Dr. John Smith Business Management 500 XYZ Any England October 25, 2010 There is movement today for better uses of information technology in the field of Human Resource Management. Potential exists for development in many areas. I will investigate how companies are influenced by information technology with Human Resources Management (HRM). I first will examine the current state of how Information Technology (IT) is applied. Second, I will examine strategic uses of information technology systems in HRM. Third, I will examine examples of progress noted with the use of IT in HRM. The analysis will attempt to show how information technology is a developing field and how this relates to the future of HRM. Human Resource Management today is becoming more influenced by Information Technology, but still companies are using IT to cover HR functions that have been in place for many years. Broderick and Boudreau (as cited in Foster, 2008) mention how the focus for use and investment in IT with HRM has been for a limited number of functions such as basic database uses, payroll, or other standard administrative functions. Research from Ball (as cited in Foster, 2008) mentions how companies utilize HR administrative functions, but overlook better uses of their information technology. Planning from strategic viewpoints is simply one area that is often left undeveloped. As mentioned in the U.S. Office of Personnel Management (1999), some traditional ways of employee evaluation by HR will be relevant despite the IT system involved, as in the case of personnel performance management. Yet, it is shown that the strategies of employee performance do not always match with departmental goals. This is a weakness that can be corrected through the use of IT. The article mentions that HR does not normally compile statistics to prove departmental success, and hence can be left without clear evidence of the benefits of IT. Also, HRM’s concentration on internal operations can have limiting effects in the way the senior management decides to use scarce information technology resource expenditures (U.S. Office of Personnel Management, 1999). Foster (2008) used a survey method with HR managers and line managers to see the current state of IT in regards HRM. The survey found a consensus that change is not rapidly progressing in the area mainly due to budgetary concerns, and IT investment being spent in other areas of the organization besides HR that are deemed by some to be of more importance (Foster, 2008). A study into how IT is being applied to HRM was performed by Dery, Grant & Wiblen (2006). They found three items in particular that prevented companies from moving more rapidly in the area of IT and HRM. The areas noted were: (1) a lack of awareness by senior level managers; (2) a barrier with the traditional mindset of organization management to make any significant IT outlay or investment; and (3) IT being generally undervalued by senior level managers in regards HRM (Dery, Grant, & Wiblen, 2006). Strategic uses of IT in HRM are next examined. A study to find out how organizations are now using their information technology was performed by Hussain & Prouse (2004). The authors sent out surveys to various companies in the United Kingdom to inquire how they were currently making use of strategy in HRM. Positive results were found in that 94 percent of the companies are either now using IT with HRM or will be at some point in the near future. However, only 44 percent were using it for strategic purposes or had plans for strategic use implementation in place (Hussain & Prouse, 2004). A survey was conducted by Beadles, Lowry, & Johns (2005) where HR directors at Universities were asked to rate their current IT systems. Mixed results were found as 90 percent of the directors said they were satisfied with the current IT system. However, 70 percent felt that IT could be utilized in a better fashion. Reasons for satisfaction included the ability to share information easily throughout the company, along with being able to provide more useful information to top level managers. However, 80 percent of the HR directors thought strategic use of IT was not being used to its full potential (Beadles, Lowry, & Johns, 2005). IT has ways of becoming more encompassing for HRM. A first step that Schoonover (2003) describes is the capture and distribution of knowledge regarding employees. Other key ideas include having ways to add value to the organization, and showing ways for the company to profit and grow by improved strategic systems. Examples mentioned include an employee performance development system along with a way to track items to improve on the core processes of the company (Schoonover, 2003). An emerging concept that Sun & Ju (2007) noted is the importance of Knowledge Management (KM). Organizations are often aware of the need to align KM strategy with IT strategy, but will not achieve effective results unless HR strategy is included. The authors gathered data from 161 highly ranked companies from Taiwan which support this idea of a three way alignment (Sun & Ju, 2007). Different areas are outlined by Plessis et. al (2007) in the role of the HR management professional. The role of ‘change agent’ is a critical one for HR since they can not only be in position to understand the organization, but use their knowledge of everything from company culture to being the hub or center of critical company interactions (Plessis et al, 2007). By HRM being central in the company, they have management responsibility for all employee groups. In this way, HRM can share information and knowledge company wide. If given the proper information resources, HRM can utilize both employee ability and various level of management ability to the fullest. Greengard (as cited in Plessis et. al, 2007) states that research studies confirm that organizations using information technology in an effective manner to manage the HRM function will have a considerable advantage over the companies which do not have proper IT in place (Plessis et al, 2007). If HRM has the technology to better select, recruit, and train their employees, then the organization has its value enhanced. Knowledge is often overlooked in providing value since it is not a tangible asset, yet it should not be discounted in importance to the organization (Plessis et al, 2007). HRM should be at the forefront in promoting the idea of having the best company along with the best employees. As Birchfield (as cited in Plessis et al, 2007) mentions, HR cannot become fully utilized unless they are seen as ‘credible’. Credibility is best performed by HR avoiding been seen through a narrow lens as being HR specialists. Having the knowledge provided through effective use of IT can give the department insight into both internal and external drivers of the organization (Plessis et. al, 2007). Important perspectives on the use of strategic IT was made by Plessis, Brewer, & Nel (2006). The authors felt that HRM must be incorporated well with the organization’s business strategy, and a partnership must occur with line management and HR. This would be an effective way for HRM to make advances in organizational strategic planning (Plessis, Brewer, & Nel, 2006). An article by Perry & Mesch (1997) mention that an effective use of strategic IT in HRM will both improve service and lower costs. The authors feel that decentralization is important, so that decision making does not rest with HR alone, but can be used by managers in other departments. A greater amount of services can be provided while HR is free to concentrate on personnel tasks, staffing needs, and other high priority HR needs that sometimes would get not enough attention if IT automation was not present (Perry & Mesch, 1997). New ways of using HRM are presented by Gregeby (2009). The author outlined a ‘change program’ from traditional HRM to new strategic HRM. One of the first steps the author proposes is introducing HR IS software. In addition, new roles for HR staff include: global HR information handling; global HR processes; new HR roles including that of an ‘HR Advisor’; and finally a ‘service centre’ area for providing typical HR administrative functions. (Gregeby, 2009). A third area I examine is with examples of progress for IT in HRM. An example of success with IT in HRM is mentioned by Gasco, Llopis, & Gonzalez (as cited in Boateng, 2007). A Spanish telecommunications firm used newly implemented e-training for their employees. Immediate benefits were seen in the 24 hour a day and 7 days a week availability of the training modules along with their user friendly applications. Another benefit was the consistency in training that the modules could provide (Boateng, 2007). A second example is given by Kanthawongs (2004) where the author shows how one large university can now drastically reduce their time spent with payroll processing. This is advantageous use of the basic IT capabilities that the HR department did not have before their IT system was in place. This was only a beginning step however and further progress for the University is now looked to with both information availability and information analysis (Kanthawongs, 2004). According to Plessis, et al (2007), HRM is progressing. Areas such as outsourcing; telecommuting; use of IT on an analytical level; and also the HR manager becoming more of a line manager than in the past have been noted from research (Plessis et al, 2007). Yet another example of progress was found by Ruel, Bondarouk, & Looise (2004) where five large corporations were looked at in how they were implementing IT and HRM. The first point the authors found was a large improvement in efficiency. A second point beyond the improved administrative functions was the improved policy to disperse responsibility of some HR functions to line managers. This was not previously possible until the newer IT systems were in place (Ruel, Bondarouk, & Looise, 2004). Other examples of progress are found by Zafar, Shaukat, & Mat (2010) where they found new trends occurring including: (1) better use of IT with recruitment including online recruiting; (2) customized training for employees with online learning; (3) new and improved performance appraisals; and (4) more time allotted for HR to partner with line managers and other departments for strategic improvements (Zafar, Shaukat, & Mat, 2010). New and exciting changes are occurring with the use of IT in HRM. The current use of IT does still find more traditional features being predominantly used as previous studies have indicated. However, more strategy is becoming ever present, and success stories of information technology’s role in HRM are evident. Overcoming the initial barriers to progress with furthering the role of IT in HRM will involve continued education and awareness by leaders of organizations. The companies that can take the lead in doing this could very well be in position to be industry leaders and organizational champions. References Beadles, N., Lowry, C. and Johns, K. (2005). ‘The Impact of Human Resource Information Systems: An Exploratory Study in the Public Sector’ Web. Communications of the IIMA, 5 (4), pp. 39-46. Available from: http://www.iima.org/CIIMA/11%205.4_Beadles_39-46.pdf [Accessed 25 October 2010]. Boateng, A. (2007) ‘The Role of Human Resource Information Systems (HRIS) in Strategic Human Resource Management (SHRM)’ Web. Swedish School of Economics and Business Administration. Available from: http://www.pafis.shh.fi/graduates/agyasa05.pdf [Accessed 25 October 2010]. Dery, K., Grant, D., and Wiblen, S. (2006). ‘Human Resource Information Systems (HRIS): Replacing or Enhancing HRM’ Web. University of Sydney. 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Available from: http://www.opm.gov/studies/alignnet.pdf [Accessed 25 October 2010] Zafar, J., Shaukat, M. and Mat, N. (2010) ‘An Analysis of E-Human Resource Management Practices: A Case Study of State Bank of Pakistan.’ Web. European Journal of Social Sciences 15 (1) pp18-26. Available from: http://www.eurojournals.com/ejss_15_1_02.pdf [Accessed 25 October 2010]. Read More