Strength And Weaknesses Of Electronic Human Resource Commerce Essay

2759 words (11 pages) Essay in Commerce

5/12/16 Commerce Reference this

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In our report discusses about strength and weaknesses of electronic Human Resource and discusses some future implications. E-HR’s software can helps to bring a high degree of standardization platform for smooth working in an organization. It allows the control and efficiency as required by HR. An initial framework and the review analyzes by HR professionals within the organization, that brings in a management information system (MIS), based on new Internet technology. This system allows the employees to be more efficiently in their administration (in theory) through an impersonal system to bring into conformity with rules for payroll, attendance and punctuality. Hence, e-HR software that, interface with in salary decisions and others linked to Human Resource issue. The e-HR systems are core applications which would helps to reduce the over time of Human Resource Management. It has achieved data from an administrative function, which responsible from payroll to help in strategic decision making that can add value to an organization. Companies have now realized. The role e-HR has developed as grow of organization the primarily administrative becomes business partner. At same time e-HR provide the business possess such as stable, reliable which makes high recognition within the organization.


Human Resource Information System (HRIS) basically is a human resource database system that allows you to keep track of all kind of Human Resource information within the organization and it’s human capital.

HRIS may or may not be part of an ERP implementation. Not all companies can afford an ERP, thus some organization, especially those small organization, may own a effective HRIS system, but not ERP. Human Resource Information System without ERP may not be comprehensive enough. For some instances, human Resource system may only able to handles one or two basic functions, example such as benefits like administration or payroll, then we do not consider it as a comprehensive HRIS. (Bondarouk & Ruel, 2009)

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Due to market development, the manager roles has changed in recent years, and partly also due to new technologies being used by the organization that they are working in. As a result, organization needs to examine their own organizational Human Resource role. (Alleyne et al, 2007)

In today global markets, organizations and companies recognize that in order to compete, they need to reply on the quality and effectiveness of the employees within their organization to succeed. Human Resource managers today need a world class Human Resource management system to help them in daily strategic and operational decision.

Over the last decades, with the fast advancement of the technologies in Intranet and Internet, Human Resource tools known as electronic Human Resource management (HRM) emerged. (Hooi, 2009)

Recent Development in E HR or HRIS

Back in the old 1990s client/ server systems are the most ideal configuration for most companies. But in recent years, companies are beginning the tasks of trying to migrate, their old legacy systems to more advance structure packages. And they are usually what we know today as Human Resource Information System (HRIS), which is part of the Enterprise Resource Planning (ERP). ERP are able to offer companies the advantage in term of functionality, storage capacity, performance and an opportunity to reengineer their HR processes.

Due to the fast rapid growth in the development of technologies and changes in the fundamental of business, the Human Resource Department today cannot operate like the old days. It is not enough to have a group of people who only need to know all about the benefits plans, salary program, and career opportunity within the organization. The demand for skilled workers, especially “knowledge” workers, also helps to accelerate the need for HRIS to assist in strategic role of HR. (Stone et el, 2006)


E HRM According to a group of Researcher from Singapore Ministry of Manpower, Human Capital Development Division, E-HRM are known as a usage of electronic media and allow the participation of employees with technology to helps to save cost or lower administration costs, and improve the communication of their employee with quicker access to work related information, and reduce the time needed in processing. (Hooi, 2009)

Electronic Human Resource (EHR) it refers to conducting business transaction in human resource related using the Internet. (LengnickHall & Moritz 2003) Usually refer usually to Employee Management System that is normally refers to browser based Human Resource web portal. Unlike HRIS, E-HR or Employee Management System can usually handles limited functions or benefits, such as payroll and leave application. The growth of E-HR was due to the rapid development of Internet technologies in the 1990s. With point and click ease of use, E- HR are usually very user friendly and easy to use. Widely used by company’s especially small and medium enterprise, who can’t afford a comprehensive Human Resource System such as HRIS.

Human Resource Management (HRM) it refers to a form of support function that services its own internal customers, example employee. (Alleyne et al, 2007)

Critical Analysis of Electronic Human Resources (e-HR)

In recent years, with the advancement or growth of intranet and Internet, enable a series of new human resource (HR) technology to emerge, with the aim to assist human resources daily administrative functions. With these e-HRM functions, HR service is expected to improve by both the management and employees. (Hooi, 2009)

As more and more Human Resource Departments moving toward Internet or Web-based Technology, we need to evaluate and make comparison between the Online Human Resource Management and Traditional Human Resource Management System. (Payne et al, 2009)

Strength of E-HR

The major functional roles of E-HR are to support Human Resource processes such as are recruiting, training and performance management. (Stone el, 2006)

Modern HR system or e-HR, which we commonly know today, allows their employees to control, accessing and updating their very own personal profile information or records. Allowing managers to make decision using the information and data, which they can access, to make analyses and decision without the need to go through Human Resource department. (Panayotopoulo et al, 2007)

E-HR can bring impact and benefits on every area of HRM. The six key HR process that benefit from the effects of technology are: (Panayotopoulo et al, 2007)



Evaluation (Employee performance appraisal)


Rewarding (Reward Employee)

Development and training (Career management)

The growing trend in E-HR allows the development of tools such as

Employee Self- Service (ESS)

Employee Self Service or ESS gives the employee of the organization the ability to access, maintaining his or her own personal HR Information online. The employee self-service (ESS) has the capabilities to allow and enable the end user employees of the organization, to create, view, and modify data anytime and anywhere all by themselves, using multiple technologies.

Managerial Self-Service (MSS)

Enable the managers of the organization to access a variety of HR-related tools and HR-related information online. Most managers can complete HR-related tasks via MSS applications example like payroll, daily administration, work jury compensation, staff performance appraisal management system, hiring, and employee job related training and career development.

Overall, the main strength that an Electronic Human Resource System allows:

Helps employees to improve or maintain their job performance

Set proper standards for Human Resources work process

Give recognition to job related accomplishments

Enhance Communication and working relationship between employee and departments

Identify the performance of individual employee

Outline the responsibility of employee and supervisory.

(Payne et el, 2009)

Developing human resources:

With the help of Internet and intranet in development and training, Human Resource Professional with the assistance of E-HR or HRIS, are able to play a much more active roles in human resource development. The return that comes along, are immeasurable, in term cost and benefits. Web-based application or software, usually part of the E-HR or HRIS, is often used today for in house assessment, job training and career management. For the less paperwork and more benefit including getting more information on training, and assessment it provide e-mail and electronic forms of intranet or the restricted web site.

Changes in the role of the HR function:

The adoption of e-HR has help to support in the daily Human Resources functions. It helps to make daily Human Resource administrative tasks much easier and more productive. Apart from the daily administrative processes, E-HR or HRIS are able to assist modern day Human Resource professional in other daily Human Resources work processes or tasks such as communication with employees within the organization, and career planning. With the implementation of e-HR, organization will be expecting a great improvement of the daily human resource activities with the supported and assistance of the e-HR. As the result, e-HR not only supports the traditional Human Resource role but also the helps the organization’s in the planning of its strategic objectives. However, on the real, Return on investment (ROI) or benefits for investing on the Electronic Human Resource, it still has a long way to go before, we can see any actual results and benefits of e-HR adoption, especially, in term of the Human Resources development, the real benefits will be tangible “The benefits as show in fig:

Weaknesses of E HR

Limited usefulness

These usually apply to companies that are very small in scale and do not have a lot of headcount within their organization

Security Concerns

Since every transaction is going to goes online, there will be security concern like unauthorized access, and virus.

Inconsistency with practices used.

The application or the design of the software does not fit into organization structure.

Practical problems

Companies might not have the necessary right infrastructure to support the application. And sometimes it is much easier and economical to do the manual way if the company or organization got very low number of headcount.

Social Interaction

Due to the reason that all the transaction goes online, they decrease the chance of social interaction. (Stone El, 2006)

The pitfalls of moving to E HR are it is not always easy. The HR technology that does the processes, and the capability of the employee going to work on the system. And organization should not pay too much attention on technology, but instead focus how to prepare the employee for it. And of course, how can it really fit into the business. (Pollitt 2006)

Example of companies implementing E HR


E-HRM offers Philips a chance to make their HR specialists to concentrate on the strategic aspect of their daily jobs. Senior Human Resource strengthen their claim for implementing E-HR, by declaring that their people are their most important asset.

The employee at Philip also responds positively to e-HRM, which is easy to use and backed up by good IT support. (Phillips, 2008)


The new Human Resource system helps the organization to monitor various Human Resource program such as absence management, as well as training and development. The new system allows the manager to review the skills and competencies of their employee. (Pollitt 2006)

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Nowadays, organization leverage on the capability of existing technology to run HR operations more efficiently. For more efficiently work we need to combined together in one hand for this gather the information and communication technology. The rapid fast development in the technology of the electronic HR systems, allows the modern Human Resources professional to work in a far more efficient and strategic roles.

Is e-hr becoming more strategic?

Most of us, I believe will be convinced that using E-HR will significantly help the company to improve the delivery of the HR services to the organization. Higher efficiencies, and higher customer satisfaction, no doubt will help to lower costs, due to redesigned processes and eliminate manual work process.

Definitely e-hr has the potential to be able contribute towards HR becoming more strategic. But for E-HR to be able to play a more strategic role, there must be a strong business case. Emerging strategic e-HRM research tend to fit and focus on business strategy. (Marler, 2009)

A business case can be mystifying. For the case of web-based or E-HR business can be used to address all types of questions, for example:

Do we really need a Web-Based solution?

Do we need to implement employee or manager self services?

Can we use our existing intranet for HR transaction?

Are we going to use the existing legacy human resource system as the underlying database for web solution, or an Enterprise Resource Planning (ERP) System?

Can we plan and implement a shared services group as part of the Web initiative?

Should we go for one-vendor HR portal strategy, or should we go with a “best-of-breed” approach?

A business case must always, built around objectives like type of business, financial, functional, operational, or some combination. Meaning we need to provide the business management with cost benefit and return on investment data in hard economic terms.

How can E-HR help the organization in strategic role? To business, the core objective is to make more money. The concern and questions ask by management is how E-HR can help the business to reduce expenses or increase in their revenue strategically? (Marler, 2009)

Questions on the mind of the management like, what can we gain from:

Productivity savings

Improve quality and reduced rework

Sourcing Saving

Make services more cheaply and higher quality

Information System Saving

Reduce the maintenance of existing systems

Other Saving.

Save the cost of material like paper, computer printout.

But the most important aspect and core functions of E-HR strategic benefits can bring to an organization are:

Recruitment – What talent do we need?

Sourcing and attracting – Who is the right talent? Where is the right talent? How to attract the talent to joins us.

Assessment and evaluation – Identify, evaluate and select the right people we want.

Hire – What is the right offer that we can offer attracts the candidate to join the organization?

Deployment – Move people into the right position in the organization that can utilize their talent.

Retention- how can we keep the talent invested, and engaged in the organization?

In today’s globalization competition, the strong demand for skilled workers, especially “knowledge” workers, also helps to accelerate the need for HRIS to assist in strategic role of HR. (Stone et al 2006)


The HR plays a very important role in any Origination, as well as HR builds a bridge between top management and employers. Nowadays there is a big competitive market for any organization. So they want to expand their organization up to certain level to meet their requirements. Once the organization grows the workload for HR will increase and they will be unable to manage all the work manually. So for avoiding this kind of situation in the organization they need an integrated system in their company. That time e-HR comes in the picture, which suits their needs, Such as

Employee Self- Service (ESS)

Managerial Self-Service (MSS)

Management Information system (MIS)

Developing human resources

Changes in the role of the HR function

The future of E-HR will become more sophisticated, and more individualized tools for both managers and employees. Improved decision making tools will benefit both the organizations and employee. (LengnickHall & Moritz 2003)

After implementation e-HR in any organization, company can easily save there cost. Because e-HR use enterprise and Internet, efficiently connect people such a way if gives all information they need. It also manages relationship, streamlines processes and improves the se of information to make strategic and operational decisions. E-HR or HRIS is all about connecting people – customers, suppliers, employees – with information. It’s about making organizations more efficient and more profitable

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