E-HRM Implementation

Author: Sachidanand R. Kulkarni


I am glad to put across my thoughts on how Human Resource Management (HRM) function in the organization can make use of technology and enhance efficiency of processes and practices that they drive and there by achieve the state of high employee involvement and create conducive environment for better performance.

Before I jump on to the subject, we need to understand importance of organizational democracy. "Organizational democracy is achieved when the organization applies the principles of democracy to design the way it operates, cultivating a workplace that enhances potential, achieving its business goals, and positively impacting the community". Generally organizational democracy refers to all efforts that, within an organization, seek to harmonize individual and collective goals. Everyone is capable of actively participate in decision making that affects his or her work life, everyone is equally entitled to be heard and respected, everyone’s opinion counts equally, everyone is a leader in achieving goals, and everyone collaborating yields better results.

E-enablement of HRM function can give space for everyone to contribute and operate on one platform for betterment of the organization and create healthy workplace. For effective E-HRM functioning, organizational democracy is critical factor, it is the foundation for the success of E-HRM initiative.

E-HRM (Electronic HRM):

E-HRM is the web-based solution that takes advantage of the latest web application technology to deliver and online real-time human resource management solution.

The knowledge economy is characterized by core assets such as intelligence, understanding, skills and employees experience. This idea is associates with decentralization and the necessary access to information. Traditional HRM is no more effective, its functioning has moved from the state where HR uses to operate solo, now each employee takes part in designing, building culture in the organization, people’s ideas are called for considerations.

In other words, Electronic HR Management (E-HRM) can be considers as a way to implement HR strategies, policies and practices in organizations through the use of web-based technology.


Benefits of Using Technology in HRM:

• An E-HRM can perform number of functions from the simple storage and communication of information system to more complex transactions.

• As technology advances, the range of functions that an E-HRM can undertake increases.

• The use of E-HRM can provide a number of benefits to the HR function, line managers, and the wider organization.

• The use of technology has lead to faster, more accurate and more efficient processes and reduced HR costs.

• Technology can also be used to provide HR information and to enable managers and employees to perform simple HR tasks themselves.

• The use of E-HRM to reduce the administrative and transactional burden on the HR function can lead to change in the structure of HR and allow the function to play a more strategic role in the organization.

E-HRM – Activities:

E-HRM includes following activities:

1. Recruitment

2. Selection

3. Training & Development

4. Performance Management

5. Compensation & Benefits

6. Reward & Recognition

7. Employee Relations & Employee Engagement

The list can go on as the HR function widens its scope of activities that are to be e-enabled; however above are the primary functions of HRM.

E-HRM implementation:

The implementation of E-HRM brings additional complexity by integrating an HRM, people management, and related aspects to its implementation. This is complex, stress generation among HR professionals, user’s dissatisfaction and line manager’s resistance.

There are various other departments, functions and employees who would access E-HRM application and making use of it day-in-day out. Activities like leave applications, salary slips, project allocation, training, appraisals etc. HR professionals have to consider employees and managers as primary customers of E-HRM application and hence take their views, ideas in consideration while designing and implementing any E-HRM application. This process of involving multiple people and arriving at final conclusion and defining roadmap for E-HRM implementation organization wide takes lot of commitment and dedication from top to bottom and vice versa.

Stages at which implementation can be called as “complete”-

Implementation is complete when… Study

A new system (or more changes in the system) is technically installed Lucas (1981), Nutt (1986)

The system is accepted by its users Venkatesh (2000), Brown, Massey, Montoya-Weiss, & Burkman (2002)

The system is appropriated Ruel (2011), Hettinga (2002)

Satisfaction with the system is achieved Schuring and Spil (2002)

Intended objectives are met Leader and Salmela (1996)

The system is antiquated, and there is a need for removing the system or for a major change in it Pipek and Wuff (1999)

Process in E-HRM Implementation:

It is obvious that HR professionals have to dedicate their time and energy in making the E-HRM as part of organizations day-to-day activity and hence it requires systematic planning and process oriented approach while implementing the E-HRM organization wide.

As far as my personal experience goes in the matter of subject, I would describe the E-HRM Implementation process through following 8 step approaches:

Step 1: Objective setting & Assigning Accountability:

HR professionals must anchor and drive the initiative of E-HRM implementation, as a part of Step 1, organize meetings with all relevant stakeholders such as various department heads, line managers, and functional heads. Also choose few employees who has been with the organization for as long as and few who are very fresh and come from other organization with different experience. This mix of various stakeholders would help HR for clarifying the objective of the initiative at all the level of audience.

HR professionals must do proactive preparation and announce accountability of various aspects involved in implementation. For example, IT Infrastructure Manager must be accountable for providing required systems, software and hardware for installing E-HRM application.

Step 2: Process Familiarization:

It is extremely important that stakeholders involved are aware of how E-HRM application works and the various HRM functions it offers to users. HR professionals with the help of E-HRM application development team should organize Process Familiarization sessions and create overall sense of understanding in stakeholders and begin the journey together.

Step 3: System installation & Configuration:

IT Infrastructure team have to provide required IT infrastructure to install and configure E-HRM application. It has to also ensure that the application is stable and running up with no issues. Representative from IT team has to be nominated to support the application if any technical issue arises.

Step 4: Integration and Accessibility:

E-HRM installation can be independent of any other e-enabled applications in the organization, however if there is a need of integrating other e-enabled applications used by various functions then it needs to be integrated with E-HRM application. The end objective of integrating multiple applications with E-HRM should be to achieve data sanity, larger information and accuracy across the functions for data.

Access control needs to be established with the guidance of HR, who should have what level of access has to be defined by HR and ensure the system configuration has taken care of it to avoid post implementation issues.

Step 5: User Acceptance:

This is where the real challenge HR professional faces. Acceptance by users is very difficult activity as the system is viewed differently from different perspectives and hence there is no one opinion. In day-to-day use it can emerge various other suggestions which were not spotted during designing the applications and hence user finds himself that application is not up to the expectation. This is where HR has to ensure that people are involved from beginning and it doesn’t become bottleneck at the end.

Step 6: Objective Evaluation:

After having E-HRM installation done organization wide, seek people’s opinion, conduct survey and collect inputs to evaluate whether the system meets the objective of its existence.

Step 7: Change Management:

Suggestions received from people after implementation of E-HRM, evaluate each suggestion in the context of future enhancement of the application and see whether it makes sense to incorporate in the application. If it, then take help from technology team and explore possibilities of incorporating changes in application or customizing it. The objective behind customization should be clear that it enhances quality and process from current state to better state.

Step 8: Antiquated/Removal of system:

Over the period of time E-HRM application may become outdated, and that state comes if it has not been reviewed regularly for its betterment. In the changing business, it is equally difficult to manage your e-enabled applications and keep them in line with future context. If the desired output is not recorded and system yielding issues frequently then it becomes antiquated and calls for un-installation or removal from its usage.

HR professionals must organize a meeting with all relevant stakeholders and take final decision about removal or enhancement of the system in the interest of organization.

Conclusion:

At the concluding note, it is important to mention that any successful implementation can be called as successful when it achieves its utmost stability. At the end of implementation of E-HRM the adoption of its offerings during the transition between E-HRM application installation and its effective use by stakeholders and HR professionals is must in order to reach the ultimate objective of E-HRM implementation.



References:

Worldblu, 2007, Drucker, 2011

Electronic HRM in Theory & Practice, Chapter 1, Gottschalk, 1999

Franciso Javier Forcadell, Universidad, Rey Juan Carlos, Spain

Emma Parry, Cranfield School of Management, UK