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European Journal of Social Sciences – Volume 15, Number 1 (2010)
An Analysis of E-Human Resource Management Practices: A Case Study of State Bank of Pakistan
Junaid Zafar Adjunct Faculty Member, Institute of Management Sciences Bahauddin Zakariya University, Multan (Pakistan) E-mail: [email protected] Muhammad Shaukat Assistant Professor of Management & Human Resources Institute of Management Sciences Bahauddin Zakariya University, Multan (Pakistan) E-mail: [email protected] Norazuwa Mat Senior Lecturer, Management Studies (HRM) College of Business, Universiti Utara Malaysia, Kedah E-mail: [email protected] Abstract The knowledge-intensifying process of the economy and the correlated rise of organizational networks, with their greater dependency on qualified and committed employees, identify the need for a form of Human Resource Management that meets the demands and needs of the management and the employees. So in IT based today economy st the need for e-HRM has become imperative to meet the HR challenges of 21 century. EHuman Resource Management in Pakistan is in its initial stages. There are changes taking place in the IT landscape of Pakistan. There are lots of hurdles that are to be met with. The purpose of this paper is to know where Pakistan stands in terms of IT adoption especially in the HR field and at what level e-HR is being implemented, at its major institutions like State Bank of Pakistan. The results of this research showed that as the latest advanced technologies offer the potential to streamline many organizational functions, so is case with HR. The State Bank of Pakistan is increasingly utilizing Information Technology (IT) to design and deliver their HR practices. A lot has been done and much more is yet to be achieved in this regards Keywords: E-Human resource management, Human Resource Information Management
Introduction
Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business (Armstrong, 2006). One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 5 fields for the HRM function: i) Strategic business partner ii) Change Agent iii) Employee champion iv) Company champion v) Administrative expert. 18
European Journal of Social Sciences – Volume 15, Number 1 (2010) Bhatia(2008) also explain the same HR role Figure 1. However, many HR functions these days struggle to get beyond the roles of administration and employee champion, and are seen rather more reactive than strategically proactive partners for the top management. In addition, HR organizations also have the difficulty in proving how their activities and processes add value to the company. In the recent years HR scholars and HR professionals are focusing to develop HR models that can adds value (Smit, 2006). Classic HRM models such as those from Harvard (Beer at al., 1984) and Michigan (Fombrun et al., 1984) assume that HRM can only be effective if it connected to an organization’s strategy. Strategic HRM assumes a direct and interactive relationship between the management of employment relationships and the organizational strategy. Ulrich (1997) tries to show that the e-component adds a new dimension that ‘rocks the HR boat’. In order words, e-HRM forces ‘traditional’ HR professionals to re-think and redefine polices and practices and, indeed, their own profession. Limburg et al (1998) carried out a case study into the application of IT for HR purposes and found only one case in which an e-component was used for HR purposes and that could really be labeled as e-HRM. The case concerned Dow chemicals that launched a global HR intranet. This company remains a forerunner in terms of e-HR. Ruel (2002) has also presented results of a case-study in which research is carried out in Dutch companies. A quarter of the companies claim that e-HRM has a priority, and more than half at least a moderate priority (Ruel, 2002). It means only attracting applicants, not using the support of the back office processes, or the selection itself (Ruel, 2002).
Figure 1: HR-Tree. Bhatia (2008) PP 1-10
STRATEGICPARTNER
PERFORMANCE MANAGEMENT, ORGANIZATION MANAGINGTALENT, DESIGN SUCCESSIONPLANNING BUSINESSPARTNER ADMINISTRATION PORTAL, BUSINESSFUNCTIO TRACKINGAPPLICATIONS, N ATTENDANCE, SALARY, COMPENSATION PERSONALDATA MANAGEMENT
KNOWLEDGEMANAGEMENT
Beer et al (1984) speaks about another aspect of HRM i.e. policy choices. According to him the set of HRM policy choices within an organization can be categorized into one of the three types; 1) The bureaucratic policy- Bureaucratic policies are especially found in organizations that operate within a stable environment, both technologically as well as socio-economically. 2) The market policy- A market policy is often seen in organizations that have to react rapidly to changes in their environment, for example to strongly fluctuating markets. 3) The clan policy- Finally, the clan policy can be found in organizations that quite heavily rely on de livering quality and innovation. According to Snell (1998) HRM departments must be strategy-focused, flexible, efficient, and client oriented; and all at the same time (Lepak & Snell, 1998; Ruël , 2002). Human resource information system is much more than a computerized record of employee information. It is an integral approach to acquiring, storing, analyzing and controlling the flow of 19
European Journal of Social Sciences – Volume 15, Number 1 (2010) human resources information throughout an organization. The primary purpose of human resource information system is to assist both human resource manager and line managers in decisions making using computers to systematically generated accurate, timely and related information to achieve organizational strategic business objectives. If Human Resource information system is related to the organizational strategic business and human resource objectives, it gives more strategic advantages (Stone, 2002). E-HRM is the planning, implementation and an application of IT for both networking and supporting at least two individual or collective actors in their shared performing of HR activities (Strohmeier, 2007). Lepak and Snell (1998) make division of e-HRM as followings; Operational e-HRM:- The first area, operational e-HRM, concerns the basic HR activities in the administrative area. Relational e-HRM:- The second area, relational e-HRM, concerns more advanced HRM activities. The emphasis here is not on administering, but on HR tools that support basic business processes such as recruiting and the selection of new personnel, training, performance management and rewards. Transformational e-HRM:- Transformational e-HRM, the third area, concerns HRM activities with a strategic character. Here we are talking about activities regarding organizational change processes, strategic re-orientation, strategic competence management, and strategic knowledge management. E- Usefulness is defined by Davis et al (1997) as a specific application system that will increase his or her job performance within an organizational context. In relation to HR planning, e-HR, particularly through the functions of employee and manager self-service applications, has brought substantial progress in terms of employee data updates, personnel changes and job requisitions (Adamson & Zampetti, 2001). Some of the advantages of e-HRM as identified by many researchers are as follows: i) e-HRM is online recruitment. It refers to posting vacancies on the corporate web site or on an online recruitment vendor’s’ website, and allowing applicants to send their resumes electronically via e-mail (Galanaki, 2002). It also includes the active search of the internet and the location of resumes. However, there is always the danger of resume overload, as well as low reputation and effectiveness of various web sites and databases, not to mention its questionable effectiveness for senior executive positions (Ensher et al., 2002). ii) E-HRM can also provide managers with information on how to conduct a Performance Appraisal, the specific criteria and measurements of given positions and roles as well as examples and models of effective appraisals (Adamson & Zampetti, 2001). iii) The penetration rate of computer-mediated communication, mainly e-mail, is higher than 75 percent in corporate environments and e-mail has emerged as the communication medium of choice (Bontis et al., 2003). The e-mail and electronic forms on the intranet of the company or a restricted web site are used to gather information on training needs assessment, inducing benefits in terms of less paperwork, lower administration cost, shorter distribution and response time, and higher response rate (McClelland, 1994) iv) E-learning can offer a solution to training in remote or disadvantaged locations (Hirschman, 2001), as well as tailor-made learning that fits the particular needs of the learner (Mumford, 2003), but it can also create barriers to learning, due to lack of hardware, fear of technology and learner isolation (Sambrook, 2003). v) Rampton et al (1997) think that by the use of IT for HRM purposes there will be more time left for strategic decision-making. Fewer administrative tasks and a decrease in HR related questions from employees and line management. 20
European Journal of Social Sciences – Volume 15, Number 1 (2010) vi) According to Trapp (2000) the HR function in the future will be the prime target for outsourcing. Consequently organizational resistance to the new changes implied by the use of the e-HRM application is minimized and customer satisfaction is increased (Lee & Lee, 2007). The researchers and HR practitioners have developed many methods to make e-HRM successful in the company. These include; (i) When a company implements a new e-HRM system, some of the HR processes must be reengineered in order for the e-HRM system to be more effective i.e., the inevitable alignment of processes and activities with the new systems requirements (Remus, 2007); (Bingi et al, 1999). Such reengineering mechanism is applied when transforming HR manual processes to paperless forms. Reengineering should begin before choosing the software system to make sure changes are accepted by the stakeholders and the process can actually be aligned with the new system (Nah et al, 2001). Lee and Lee (2007) insist that good planning consumes a considerable amount of time prior to implementation. (ii) Training and education is a critical step in managing change itself, as employees must be educated about the new system to understand how it changes business processes (Nah et al, 2001). Education is the catalyst that brings the knowledge of the users up to the point where they can familiarize themselves with the new e-HRM system quickly and sufficiently (Remus, 2007). (iii) Managing change within the organization could be a full time job by itself as it requires the management of people and their expectations, resistance to change confusion redundancies and errors (Remus, 2007). (iv) In order for e-HRM implementation to be successful, top managers have to approve and continuously support the responsible parties during the implementation stage to make sure no obstacles prevent or delay the progress. (v) One of the most critical success factors for implanting an e-HR system is the support and involvement of top managers in the project during its life cycle (Al-Sehali, 2000Also an executive sponsor should be appointed to coordinate, communicate, and integrate all aspects of the project between the development team and top management (Remus, 2007). The executive sponsor should communicate, integrate and approve the shared vision of the organization and the responsibilities and a structure of the new e-HRM system (Nah et al, 2001) (vi) Alongside, interdepartmental communication as well as communication with customers and business partners is a key element in the success of implementing the system (Remus, 2007). Employees should also be informed in advance the scope, objectives in order to meet their expectations (Nah et al, 2001). Managing the implementing and development of e-HRM system is a crucial step towards successful results. The scope of the project must be clearly defined including aspects such as the amount of systems implemented, involvement of business process reengineering needed (Nah et al, 2001). The project itself must have clearly defined business and technical objectives and goals corresponding to the project deliverables (Remus, 2007). Like world IT is being applied aggressively in all Pakistani organizations. The most recent systems like Siebel, Fidelity, SAP, Oracles etc. have become the common use now in Pakistani companies(Shaukat & Zafarullah, 2009). Like other functions in HR too the use of IT is very common. Keeping in view the increasing importance of e-HRM, companies are adopting it all over the world, so is case in Pakistan. The SBP is established in 1948. Initially all work was done manually but in 1985 bank management to procure computers to convert its work on IT solutions. At present the bank has latest IT system and a full fledge IT directorate. The Human Resource Division at the State Bank manages issues related to the HR i.e personnel planning, transfer, compensation administration, 21
European Journal of Social Sciences – Volume 15, Number 1 (2010) recruitment and up to date incorporation of employee record in Oracle database. Following units/areas of work mainly are included in this division: (i) Compensation & Benefit Planning Unit is responsible to carry out all activities related to developing best market strategies regarding compensation and benefits for our employees. (ii) Employees Database Unit is responsible for maintaining & updating employee data and HR Broadcast of various messages/ circulars/ orders etc. for prompt communication to Bank’s employees. (iii) Service Record & Compliance Unit maintains and updates employees’ personal files, verify employees’ particulars, and ensure timely confirmation of eligible employees in the Bank’s service. (iv) HR Automation Unit focuses on Oracle Human Resource Information System and to solve the issues in smooth implementation and management of HRIS. HR Automation unit works for customization of Oracle HRMS with emerging needs of HR processes.
Methodology
A case study method is chosen for this research. A case study has five main components: Research questions, theoretical propositions, units of analysis, the logic linking data to these theoretical propositions, and the criteria for evaluating these propositions. By including these five components, case study is seen as “proper”. This research is done at the HR department of State Bank of Pakistan in its head office at Karachi. It has a total of 47 employees. Out of these, three were chosen that included the senior personal from the department. A detailed questionnaire was prepared and distributed among the respondents. The demographic detail of respondents is given in Table 1. The researchers have tried to find out the reasons for adoption of e-HR practices and Identifying critical success factors in e-HR adoption.
Table 1: Study Demographic
Level of Education Master Bachelor 100% 0% Job Duration 10Y or above Below 5y 66.6% 33.3% White Color 100%
Gender Job Category Age Male Female Below 29 Blue color Above 40 100% 0% 0% 33% 66.6%
Results and The unit analysis for this study was the organization. Therefore, researchers looked at the data which Discussions
was gathered individually from randomly selected employees through the survey being conducted. An open-ended questionnaire was developed to gather information about E-HR practices in the organization. The questionnaire consisted of 14 questions. The response of each department is recorded separately and then all three responses are compiled together and made one. The question wise details are given in Table 2.
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Table 2: Response from the Bank
Question There are a of people in the HR department? 1 -Number total of 45-50 people in the HR department. Question 2 -HRM strategy? The HRM strategy is to be the “Employer of choice”. Question 3 -Main HRM problems? According to the respondents there are many HR problems like “data satisfaction”, “counting (of) particulars”, and “verifications”. Question 4 -Major HRM challenges? One respondent said that the main challenge is employee engagement while other says that more means for “data abstraction” are needed. Question 5-What e-HR systems do you use? The systems used are mainly of the Relational e-HRM with recruitment and talent management. Questions 6-Areas of e-HR use? The systems used are mainly for recruitment, talent management and the administrative tasks. Question 7- Frequency of use? Usage of e-HR according to the respondents is on daily basis. Question 8 - Reasons for e-HR adoption? As said by the respondents, the reasons for e-HRM adoption are to be more efficient and effective. Question 9- What was the adoption process? Awareness of IT is the prime concern when it comes to adopting e-HRM in the Bank. Question 10 -What were the employees’ reactions to eThe reaction to the e-HRM linkage according to the HR? respondents was a blessing in disguise for the employees. Question 11 -Factors enabling acceptance of e-HR? Downtime to process data is a key factor. Question 12 -Satisfaction from e-HR. The respondents view is that the employees at the State Bank are well satisfied with the e-HR implementation. Question 13- Effect of e-HR on the role of the HR The HRM dept and the Bank are increasingly utilizing IT department. for working transactions related to compensation, recruitment, selection etc. Question 14- Major challenges regarding e-HR adoption. One of the challenges is to make IT easily accessible to employees.
We can say that the State Bank is emphasizing on the employees and developing their potential to the fullest. It wants to be recognized as the No.1 choice for people looking for employment. The main area where HR problems seem to be coming is the administrative side. The company needs team work on its ranks with decision making done all across the board; while at the same time more IT systems should placed for integrating the data. The Bank needs to move its HR dept. to Transformational e-HRM with more emphasis on strategy making and freeing time from administrative chores. The company has an elaborate e-Recruitment infrastructure considering the size of the company. Thousands of CV’s are received each time it wants to hire employees. The systems have become part and parcel of the Bank and it would be impossible to go about business without them. This is no surprise as companies who are in a global are actually getting better through streamlining their processes so as to make them in line with the strategy, goals of the organization. The researchers found that the employees of the Bank had to be taught how to transform data (raw) into a meaningful lot. To analyze complex data structures and then make decision on a routine to make it aligned with the company polices. The speed at which the employees could now process data i.e. compensation, recruitment etc has come down. The Bank takes administrative tasks dearly especially when it comes to data verifications. It is increasingly using relational e-HRM for recruitment and talent management.
Conclusion & Based upon the literature review and our detail study of SBP, we can say that IT use in Pakistan is as Recommendations
par with the world. All the organizations in Pakistan are using the latest IT hardware and software systems. The dependence of organizations on IT based systems is increasing so is case with e-HRM 23
European Journal of Social Sciences – Volume 15, Number 1 (2010) function. The HRM department is having a strategic position in any organization and through e-HRM, the companies are getting many strategic benefits. The research showed that as the latest advanced technologies offer the potential to streamline many HR functions, the SBP too, is increasingly utilizing information technology to design and deliver their HR practices to have a greater opportunity for HR professionals to become a strategic partner i.e. moving beyond administrative expertise and becoming an expert in areas such as strategic business partnership, change management, and employee advocacy. The significance of IT has grown considerably in the last years in all the fields and IT has been identified as an impetus of HR’s transition to becoming a strategic business partner. HR executives at the State Bank are looking to technology and the information it provides to help them drive decisions that will lead to success of the organization as a whole. Based upon our findings we recommend that for e-HRM implementation, the SBP and other organization must do followings: 1) A plan must be agreed upon by the project manager or the responsible parties to follow during the project life cycle. ii) Education and training be imparted to the uses to make them familiarizes themselves with the new eHRM system quickly and sufficiently. iii) The organization should realize the impact of this new change on employees, managers, and HR staff and understand its dimensions in order to manage the effects with a corporate strategy that is open to change. iv) Interdepartmental communication as well as communication with customers and business partners is improved.
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(ERP) in the international Arab Gulf states and United States companies with special emphasis on SAP software. Retrieved September 08, 2009 from www.ProQuest.com Adamson, L. & Zampetti, R. (2001). Web-based manager self-service: adding value to the work. Web-Based Human Resources, McGraw-Hill, New York. Armstrong, Michael (2006). A Handbook of Human Resource Management Practice. Kogan Page, London Bhatia, T. (2008). Evolution of the HR function. HR Practices, 9, 1-10 Beer, M., Spector, B., Lawrence, P.R., Quinn-Mills, D., & Walton, R.E. (1984). Managing Human Assets. New York Publishers, NY, 1-10 Bingi, P. & Sharma, & M.K, Godla, J. (1999). Critical issues affecting an ERP implementation. Information Systems Management, 45(2), 7-14. Bontis, N., Fearon, M. & Hishon, M. (2003). The e-flow audit: an evaluation of knowledge flow within and outside a high-tech firm. Journal of Knowledge Management, 7 (1), 6-19. Castells, M. (1996). The rise of the network society. BlackwellPublishers, NY, 1-10 Davis, J.H., Schooman, F.D., & Donaldson, L., 1997. Toward a stewardship theory of management. Academy of Management Review, 22, 20–47 Dietch, J. (2001). Web-delivered employee benefits. From ‘Why?’ to ‘Wow!’. Web-Based Human Resources, McGraw-Hill, NY, 36-51. Ensher, E. A., Nielson, T. R., & Grant-Vallone, E. (2002). Tales from the hiring line: Effects of the Internet and technology on HR processes. Organizational Dynamics, 31(3), 224-244. Fombrum,C., Ticky,N. & Devana, M.(1984). Strategic human resource management. John Wiley ,New York,1-10 Galanaki, E. (2002).The decision to recruit online: a descriptive study. Career Development International, 7 (4), 243-51. Hirschman, C. (2001).Alternatives to business trips can pay off. Retrieved September 08, 2009 www.Workforce.com. Huiskamp,R. & Schalk, R. (2002). Psychologische contracten in arbeidsrelaties: De stand van zaken in Nederland. Gedrag en Organisatie, 15, 370 - 385. Kavanagh, M.J., Gueutal, H.G. & Tannenbaum, S.I. (1990). Human resource information systems: development and application. PWS publishing company:Kent. Kemal, A. R. (1998).Electronic commerce and international trade of Pakistan. Pakistan Development Review, 12, 01-10 Lee, F & Lee, F. (2007). The relationships between HRM practices, Leadership style, competitive strategy and business performance in Taiwanese steel industry. Proceedings of the 13th Asia Pacific Management Conference, Melbourne, Australia, 953-971. Lepak, D.P., & Snell, S.A. 1998. Virtual HR: Strategic human resource management in the 21st century. Human Resource Management Review, 8, 215-234. McClelland, S.B. (1994). Training needs assessment data-gathering methods: Part 1, survey questionnaires. Journal of European Industrial Training, 18(1), 22-6. Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis (2nd ed.). Thousand Oaks, California,1-10 Mumford, A. (2003). Learning Styles in E-learning. Retrieved September 08, 2009 from www.cipd.co.uk/subjects/lrnanddev/elearning/lsinel.htm Nah, F.F.-H., Lau, J.L.-S., & Kuang, J. (2001). Critical factors for successful implementation of enterprise systems. Business Process Management Journal, 7 (2), 285-96. Rampton, G.M., Turnbull, & I. Doran, J.A. (1997). Human Resources Management Systems. Scarborough:ITP Nelson,Canada,1-10 25
An Analysis of E-Human Resource Management Practices: A Case Study of State Bank of Pakistan
Junaid Zafar Adjunct Faculty Member, Institute of Management Sciences Bahauddin Zakariya University, Multan (Pakistan) E-mail: [email protected] Muhammad Shaukat Assistant Professor of Management & Human Resources Institute of Management Sciences Bahauddin Zakariya University, Multan (Pakistan) E-mail: [email protected] Norazuwa Mat Senior Lecturer, Management Studies (HRM) College of Business, Universiti Utara Malaysia, Kedah E-mail: [email protected] Abstract The knowledge-intensifying process of the economy and the correlated rise of organizational networks, with their greater dependency on qualified and committed employees, identify the need for a form of Human Resource Management that meets the demands and needs of the management and the employees. So in IT based today economy st the need for e-HRM has become imperative to meet the HR challenges of 21 century. EHuman Resource Management in Pakistan is in its initial stages. There are changes taking place in the IT landscape of Pakistan. There are lots of hurdles that are to be met with. The purpose of this paper is to know where Pakistan stands in terms of IT adoption especially in the HR field and at what level e-HR is being implemented, at its major institutions like State Bank of Pakistan. The results of this research showed that as the latest advanced technologies offer the potential to streamline many organizational functions, so is case with HR. The State Bank of Pakistan is increasingly utilizing Information Technology (IT) to design and deliver their HR practices. A lot has been done and much more is yet to be achieved in this regards Keywords: E-Human resource management, Human Resource Information Management
Introduction
Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business (Armstrong, 2006). One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 5 fields for the HRM function: i) Strategic business partner ii) Change Agent iii) Employee champion iv) Company champion v) Administrative expert. 18
European Journal of Social Sciences – Volume 15, Number 1 (2010) Bhatia(2008) also explain the same HR role Figure 1. However, many HR functions these days struggle to get beyond the roles of administration and employee champion, and are seen rather more reactive than strategically proactive partners for the top management. In addition, HR organizations also have the difficulty in proving how their activities and processes add value to the company. In the recent years HR scholars and HR professionals are focusing to develop HR models that can adds value (Smit, 2006). Classic HRM models such as those from Harvard (Beer at al., 1984) and Michigan (Fombrun et al., 1984) assume that HRM can only be effective if it connected to an organization’s strategy. Strategic HRM assumes a direct and interactive relationship between the management of employment relationships and the organizational strategy. Ulrich (1997) tries to show that the e-component adds a new dimension that ‘rocks the HR boat’. In order words, e-HRM forces ‘traditional’ HR professionals to re-think and redefine polices and practices and, indeed, their own profession. Limburg et al (1998) carried out a case study into the application of IT for HR purposes and found only one case in which an e-component was used for HR purposes and that could really be labeled as e-HRM. The case concerned Dow chemicals that launched a global HR intranet. This company remains a forerunner in terms of e-HR. Ruel (2002) has also presented results of a case-study in which research is carried out in Dutch companies. A quarter of the companies claim that e-HRM has a priority, and more than half at least a moderate priority (Ruel, 2002). It means only attracting applicants, not using the support of the back office processes, or the selection itself (Ruel, 2002).
Figure 1: HR-Tree. Bhatia (2008) PP 1-10
STRATEGICPARTNER
PERFORMANCE MANAGEMENT, ORGANIZATION MANAGINGTALENT, DESIGN SUCCESSIONPLANNING BUSINESSPARTNER ADMINISTRATION PORTAL, BUSINESSFUNCTIO TRACKINGAPPLICATIONS, N ATTENDANCE, SALARY, COMPENSATION PERSONALDATA MANAGEMENT
KNOWLEDGEMANAGEMENT
Beer et al (1984) speaks about another aspect of HRM i.e. policy choices. According to him the set of HRM policy choices within an organization can be categorized into one of the three types; 1) The bureaucratic policy- Bureaucratic policies are especially found in organizations that operate within a stable environment, both technologically as well as socio-economically. 2) The market policy- A market policy is often seen in organizations that have to react rapidly to changes in their environment, for example to strongly fluctuating markets. 3) The clan policy- Finally, the clan policy can be found in organizations that quite heavily rely on de livering quality and innovation. According to Snell (1998) HRM departments must be strategy-focused, flexible, efficient, and client oriented; and all at the same time (Lepak & Snell, 1998; Ruël , 2002). Human resource information system is much more than a computerized record of employee information. It is an integral approach to acquiring, storing, analyzing and controlling the flow of 19
European Journal of Social Sciences – Volume 15, Number 1 (2010) human resources information throughout an organization. The primary purpose of human resource information system is to assist both human resource manager and line managers in decisions making using computers to systematically generated accurate, timely and related information to achieve organizational strategic business objectives. If Human Resource information system is related to the organizational strategic business and human resource objectives, it gives more strategic advantages (Stone, 2002). E-HRM is the planning, implementation and an application of IT for both networking and supporting at least two individual or collective actors in their shared performing of HR activities (Strohmeier, 2007). Lepak and Snell (1998) make division of e-HRM as followings; Operational e-HRM:- The first area, operational e-HRM, concerns the basic HR activities in the administrative area. Relational e-HRM:- The second area, relational e-HRM, concerns more advanced HRM activities. The emphasis here is not on administering, but on HR tools that support basic business processes such as recruiting and the selection of new personnel, training, performance management and rewards. Transformational e-HRM:- Transformational e-HRM, the third area, concerns HRM activities with a strategic character. Here we are talking about activities regarding organizational change processes, strategic re-orientation, strategic competence management, and strategic knowledge management. E- Usefulness is defined by Davis et al (1997) as a specific application system that will increase his or her job performance within an organizational context. In relation to HR planning, e-HR, particularly through the functions of employee and manager self-service applications, has brought substantial progress in terms of employee data updates, personnel changes and job requisitions (Adamson & Zampetti, 2001). Some of the advantages of e-HRM as identified by many researchers are as follows: i) e-HRM is online recruitment. It refers to posting vacancies on the corporate web site or on an online recruitment vendor’s’ website, and allowing applicants to send their resumes electronically via e-mail (Galanaki, 2002). It also includes the active search of the internet and the location of resumes. However, there is always the danger of resume overload, as well as low reputation and effectiveness of various web sites and databases, not to mention its questionable effectiveness for senior executive positions (Ensher et al., 2002). ii) E-HRM can also provide managers with information on how to conduct a Performance Appraisal, the specific criteria and measurements of given positions and roles as well as examples and models of effective appraisals (Adamson & Zampetti, 2001). iii) The penetration rate of computer-mediated communication, mainly e-mail, is higher than 75 percent in corporate environments and e-mail has emerged as the communication medium of choice (Bontis et al., 2003). The e-mail and electronic forms on the intranet of the company or a restricted web site are used to gather information on training needs assessment, inducing benefits in terms of less paperwork, lower administration cost, shorter distribution and response time, and higher response rate (McClelland, 1994) iv) E-learning can offer a solution to training in remote or disadvantaged locations (Hirschman, 2001), as well as tailor-made learning that fits the particular needs of the learner (Mumford, 2003), but it can also create barriers to learning, due to lack of hardware, fear of technology and learner isolation (Sambrook, 2003). v) Rampton et al (1997) think that by the use of IT for HRM purposes there will be more time left for strategic decision-making. Fewer administrative tasks and a decrease in HR related questions from employees and line management. 20
European Journal of Social Sciences – Volume 15, Number 1 (2010) vi) According to Trapp (2000) the HR function in the future will be the prime target for outsourcing. Consequently organizational resistance to the new changes implied by the use of the e-HRM application is minimized and customer satisfaction is increased (Lee & Lee, 2007). The researchers and HR practitioners have developed many methods to make e-HRM successful in the company. These include; (i) When a company implements a new e-HRM system, some of the HR processes must be reengineered in order for the e-HRM system to be more effective i.e., the inevitable alignment of processes and activities with the new systems requirements (Remus, 2007); (Bingi et al, 1999). Such reengineering mechanism is applied when transforming HR manual processes to paperless forms. Reengineering should begin before choosing the software system to make sure changes are accepted by the stakeholders and the process can actually be aligned with the new system (Nah et al, 2001). Lee and Lee (2007) insist that good planning consumes a considerable amount of time prior to implementation. (ii) Training and education is a critical step in managing change itself, as employees must be educated about the new system to understand how it changes business processes (Nah et al, 2001). Education is the catalyst that brings the knowledge of the users up to the point where they can familiarize themselves with the new e-HRM system quickly and sufficiently (Remus, 2007). (iii) Managing change within the organization could be a full time job by itself as it requires the management of people and their expectations, resistance to change confusion redundancies and errors (Remus, 2007). (iv) In order for e-HRM implementation to be successful, top managers have to approve and continuously support the responsible parties during the implementation stage to make sure no obstacles prevent or delay the progress. (v) One of the most critical success factors for implanting an e-HR system is the support and involvement of top managers in the project during its life cycle (Al-Sehali, 2000Also an executive sponsor should be appointed to coordinate, communicate, and integrate all aspects of the project between the development team and top management (Remus, 2007). The executive sponsor should communicate, integrate and approve the shared vision of the organization and the responsibilities and a structure of the new e-HRM system (Nah et al, 2001) (vi) Alongside, interdepartmental communication as well as communication with customers and business partners is a key element in the success of implementing the system (Remus, 2007). Employees should also be informed in advance the scope, objectives in order to meet their expectations (Nah et al, 2001). Managing the implementing and development of e-HRM system is a crucial step towards successful results. The scope of the project must be clearly defined including aspects such as the amount of systems implemented, involvement of business process reengineering needed (Nah et al, 2001). The project itself must have clearly defined business and technical objectives and goals corresponding to the project deliverables (Remus, 2007). Like world IT is being applied aggressively in all Pakistani organizations. The most recent systems like Siebel, Fidelity, SAP, Oracles etc. have become the common use now in Pakistani companies(Shaukat & Zafarullah, 2009). Like other functions in HR too the use of IT is very common. Keeping in view the increasing importance of e-HRM, companies are adopting it all over the world, so is case in Pakistan. The SBP is established in 1948. Initially all work was done manually but in 1985 bank management to procure computers to convert its work on IT solutions. At present the bank has latest IT system and a full fledge IT directorate. The Human Resource Division at the State Bank manages issues related to the HR i.e personnel planning, transfer, compensation administration, 21
European Journal of Social Sciences – Volume 15, Number 1 (2010) recruitment and up to date incorporation of employee record in Oracle database. Following units/areas of work mainly are included in this division: (i) Compensation & Benefit Planning Unit is responsible to carry out all activities related to developing best market strategies regarding compensation and benefits for our employees. (ii) Employees Database Unit is responsible for maintaining & updating employee data and HR Broadcast of various messages/ circulars/ orders etc. for prompt communication to Bank’s employees. (iii) Service Record & Compliance Unit maintains and updates employees’ personal files, verify employees’ particulars, and ensure timely confirmation of eligible employees in the Bank’s service. (iv) HR Automation Unit focuses on Oracle Human Resource Information System and to solve the issues in smooth implementation and management of HRIS. HR Automation unit works for customization of Oracle HRMS with emerging needs of HR processes.
Methodology
A case study method is chosen for this research. A case study has five main components: Research questions, theoretical propositions, units of analysis, the logic linking data to these theoretical propositions, and the criteria for evaluating these propositions. By including these five components, case study is seen as “proper”. This research is done at the HR department of State Bank of Pakistan in its head office at Karachi. It has a total of 47 employees. Out of these, three were chosen that included the senior personal from the department. A detailed questionnaire was prepared and distributed among the respondents. The demographic detail of respondents is given in Table 1. The researchers have tried to find out the reasons for adoption of e-HR practices and Identifying critical success factors in e-HR adoption.
Table 1: Study Demographic
Level of Education Master Bachelor 100% 0% Job Duration 10Y or above Below 5y 66.6% 33.3% White Color 100%
Gender Job Category Age Male Female Below 29 Blue color Above 40 100% 0% 0% 33% 66.6%
Results and The unit analysis for this study was the organization. Therefore, researchers looked at the data which Discussions
was gathered individually from randomly selected employees through the survey being conducted. An open-ended questionnaire was developed to gather information about E-HR practices in the organization. The questionnaire consisted of 14 questions. The response of each department is recorded separately and then all three responses are compiled together and made one. The question wise details are given in Table 2.
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Table 2: Response from the Bank
Question There are a of people in the HR department? 1 -Number total of 45-50 people in the HR department. Question 2 -HRM strategy? The HRM strategy is to be the “Employer of choice”. Question 3 -Main HRM problems? According to the respondents there are many HR problems like “data satisfaction”, “counting (of) particulars”, and “verifications”. Question 4 -Major HRM challenges? One respondent said that the main challenge is employee engagement while other says that more means for “data abstraction” are needed. Question 5-What e-HR systems do you use? The systems used are mainly of the Relational e-HRM with recruitment and talent management. Questions 6-Areas of e-HR use? The systems used are mainly for recruitment, talent management and the administrative tasks. Question 7- Frequency of use? Usage of e-HR according to the respondents is on daily basis. Question 8 - Reasons for e-HR adoption? As said by the respondents, the reasons for e-HRM adoption are to be more efficient and effective. Question 9- What was the adoption process? Awareness of IT is the prime concern when it comes to adopting e-HRM in the Bank. Question 10 -What were the employees’ reactions to eThe reaction to the e-HRM linkage according to the HR? respondents was a blessing in disguise for the employees. Question 11 -Factors enabling acceptance of e-HR? Downtime to process data is a key factor. Question 12 -Satisfaction from e-HR. The respondents view is that the employees at the State Bank are well satisfied with the e-HR implementation. Question 13- Effect of e-HR on the role of the HR The HRM dept and the Bank are increasingly utilizing IT department. for working transactions related to compensation, recruitment, selection etc. Question 14- Major challenges regarding e-HR adoption. One of the challenges is to make IT easily accessible to employees.
We can say that the State Bank is emphasizing on the employees and developing their potential to the fullest. It wants to be recognized as the No.1 choice for people looking for employment. The main area where HR problems seem to be coming is the administrative side. The company needs team work on its ranks with decision making done all across the board; while at the same time more IT systems should placed for integrating the data. The Bank needs to move its HR dept. to Transformational e-HRM with more emphasis on strategy making and freeing time from administrative chores. The company has an elaborate e-Recruitment infrastructure considering the size of the company. Thousands of CV’s are received each time it wants to hire employees. The systems have become part and parcel of the Bank and it would be impossible to go about business without them. This is no surprise as companies who are in a global are actually getting better through streamlining their processes so as to make them in line with the strategy, goals of the organization. The researchers found that the employees of the Bank had to be taught how to transform data (raw) into a meaningful lot. To analyze complex data structures and then make decision on a routine to make it aligned with the company polices. The speed at which the employees could now process data i.e. compensation, recruitment etc has come down. The Bank takes administrative tasks dearly especially when it comes to data verifications. It is increasingly using relational e-HRM for recruitment and talent management.
Conclusion & Based upon the literature review and our detail study of SBP, we can say that IT use in Pakistan is as Recommendations
par with the world. All the organizations in Pakistan are using the latest IT hardware and software systems. The dependence of organizations on IT based systems is increasing so is case with e-HRM 23
European Journal of Social Sciences – Volume 15, Number 1 (2010) function. The HRM department is having a strategic position in any organization and through e-HRM, the companies are getting many strategic benefits. The research showed that as the latest advanced technologies offer the potential to streamline many HR functions, the SBP too, is increasingly utilizing information technology to design and deliver their HR practices to have a greater opportunity for HR professionals to become a strategic partner i.e. moving beyond administrative expertise and becoming an expert in areas such as strategic business partnership, change management, and employee advocacy. The significance of IT has grown considerably in the last years in all the fields and IT has been identified as an impetus of HR’s transition to becoming a strategic business partner. HR executives at the State Bank are looking to technology and the information it provides to help them drive decisions that will lead to success of the organization as a whole. Based upon our findings we recommend that for e-HRM implementation, the SBP and other organization must do followings: 1) A plan must be agreed upon by the project manager or the responsible parties to follow during the project life cycle. ii) Education and training be imparted to the uses to make them familiarizes themselves with the new eHRM system quickly and sufficiently. iii) The organization should realize the impact of this new change on employees, managers, and HR staff and understand its dimensions in order to manage the effects with a corporate strategy that is open to change. iv) Interdepartmental communication as well as communication with customers and business partners is improved.
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