Huub J.M Ruel and Tanya Bondarouk defines e-HRM (Electronic Human Resources Management) as a way of implementing policies, strategies and practices in organizations through the conscious support of, and/ or with the full use of channels based on web technologies. "E-HRM is a common practice throughout Europe since two thirds of all organizations have already adopted e-HRM. Major general Determinants of e-HRM adoption are size, work organization and configuration of HRM." (Stefan Strohmeie, Rüdiger Kabst(2009). "Organizational adoption of e-HRM in Europe" Journal of Managerial Psychology - vol 24. no-6p p482-501)
The main goal of E-HRM is mainly to improve human resource's administrative efficiency to achieve total cost reduction within the organization by using various e-HRM processes like using e-HRM to recruit employees etc. cuts the manual cost of the whole recruitment process as it is done digitally. In the essay we are going to be discussing about the use of E-HRM to deliver a more cost effective service to the business and why it was adopted or why it is preferred, what is expected out of it, what are its advantages and disadvantages? How it is functioned? Is it actually helping in cutting the cost of the organizations a lot? What are the outcomes?
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What exactly is E-HRM? Well, it is basically the planning, implementation and application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of human resource activities ( N. Venkateswaran Asst. Professor, Department of Management Studies, Panimalar Engineering College, Chennai, 2007 ). Here the word "implementing" has a very broad meaning, for example to make something work or to put something into practice in order to have it realized. Therefore, in short E-HRM is a concept - it is a quick way of "doing" Human resource management
E-HRM was adopted or in other words discovered in the first place, for both the profit and the non-profit organizations they have replaced the online - based HRM tools with the face to face HRM for the employees and the managers since the 90's.
Organizations generally prefer E-HRM because of its numerous advantages.
In order to have better productivity and efficiency gradual implementation is adopted in organizations, another important feature of electronic human resource management is its nature of adapting to any client, it collects information as the basis for strategic decision-making, integral support for the management of human resources and all other basic and support processes within the company. E-HRM also helps in giving a prompt insight into reporting and analyzing the organization's functions, it also has a main role in giving a more dynamic workflow in the business process, its efficiency, productivity and better employee satisfaction.
Since E-HRM is a decisive step towards a paperless office, it helps in lowering the business costs more effectively and efficiently.
According to ( N.Venkateswaran, department of management studies, Panimar engineering college ) for a more cost effective benefit, most of the organization's choose E-HRM as compared to the other available options because of its modularity, the solution can be accessed and used in a web browser, there is a good level of security of data, protected levels of access to individual modules, it records the documents and their component parts, it has a parametric and customizability character, access to archived records and documents, it has a user-friendly interface, connectivity with the client's existing information system (payroll accounting, ERP, attendance registration, document systems and lastly it also has a multi-language support.
In order to standardize and harmonize the human resource processes and policies the multinational companies also seem to use the introduction of e-HRM. Therefore from the above mentioned details we can sum up the reasons or goals of organizations in making steps toward e-HRM There are mainly three of them, firstly to improve the strategic orientation of human resource management, secondly to Reduce the costs of the organization and thirdly to improve the Client service by facilitating the management and the employees.
By now we are aware that the use of e-HRM helps in reducing the cost of the business, but we are not aware of how e-HR Management reduces the cost of the business. Here we will be discussing about how it does so. Basically e-HRM automates the key human resource business process which in turn reduces the services delivery costs, it also reduces the correction costs by improving the accuracy of the human resource information, since the information's are available on the web to the employees the printing and distribution costs are eliminated, which might also be found as an "eco-friendly" plus and the employees productivity is also improved by providing universal access on 24/7 basis, lastly it enables more cost effective decision through improved analysis of human resource information (Human resource management, John Storey, (2007) ).
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Based upon Beer et al.'s ideas about the expected outcomes of human resource management, it is clear that e-HRM also aims to achieve a certain set of outcomes. People usually confuse the E-Human Resource Management goals with the E-HRM outcomes but in reality there is a clear difference between the two. As mentioned earlier, E-Human Resource Management is a way of carrying out human resource management. It is a way of thinking about and implementing human resource management strategies, policies and practices. Organizations, companies expect to achieve certain goals by following specific E-HRM directions: "an improvement in the Human Resource's strategic orientation, an improvement in client focus and satisfaction, and a decrease in costs or increased efficiency. Besides these goals that can lead to anticipated outcomes, a number of so-called 'overall' organizational goals can be distinguished regarding an organization's 'social capital'. All human resource management activities and therefore also all e-HRM activities will implicitly or explicitly be directed towards these goals.
Depending upon the way in which individuals and parties want to be affected by e-HRM, in line with the defined goals, outcomes will to some extent emerge in turn, these outcomes may change the state of human resource management in an organization, or through individuals and/or groups within an organization actually result in a new human resource management state. Therefore, this closes the circle. (academic review - Ruel, HuubÂ andÂ Bondarouk, TanyaÂ andÂ Looise, Jan KeesÂ (2004)Â E-HRM: Innovation or Irritation : An Explorative Empirical Study in Five Large Companies on Web-based HRM.Â Management Revue, 15 (3). pp. 364-380)
Therefore we can conclude by stating that the main though E-HRM has its disadvantages, for example the use of e-human resource management can lead to the separation of staff members in the organization that needs personal support the need for interaction among the staff members and the manager also reduces i.e. the managers and the staff members have lesser face-time and the risk of 'losing touch' with the staff members also increases, it is also Subject to corruption, hacking and data losses as it is done using IT. Yet the advantages takes over its disadvantages as it helps the organizations to deliver a more cost effective service to its business and it is indeed a boon to any organization especially the multinational or very large firms as it gets very difficult to manage the employees at different levels and to gather massive amount of information about them, their achievements, history of career, analyzing it, comparing etc. becomes very difficult, therefore E-HRM makes it easier for the organizations to function smoothly by improving the human resource's administrative efficiency to achieve cost reduction, by helping to improve the employee competences, resulting directly in cost reduction and a reduction of the administrative weight. Clearly E-HRM is a new and intriguing field of research at the intersection of human resource management and information systems for all sort of companies around the world.
Therefore in layman's language we can conclude by stating that e-HRM is the next "it" thing and a boon for huge companies as it makes their work more efficient by making all the work "just a click way"!