Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Research Article: 2022 Vol: 28 Issue: 2S

Role of E HRM Practices on Business Effectiveness in the Digital Era an Empirical Study

Gitanjali Shrivastava, Symbiosis Law School

Neeraj Kataria, University of Petroleum and Energy Studies

Zakaria Chabani, Canadian University

Korakod Tongkachok, Thaksin University

Anas A. Salameh, Prince Sattam Bin Abdulaziz University

Citation Information: AShrivastava, G., Kataria, N., Chabani, Z., Tongkachok, K., & Salameh, A.A. (2022). Role of E-Hrm practices on business effectiveness in the digital era- An empirical study. Academy of Entrepreneurship Journal, 28(S2), 1-9.

Keywords

E-HRM, Business Effectiveness, Digital Era, Multiple Regression

Abstract

 The economy of nations is mostly dependent on the flawless technology which is being used in the current digital era to gain the most out of businesses. To harness the best results through optimized usage of resources, it is necessary for businesses to function effectively. The enterprises can only run effectively if the technology is used to its fullest capacity. Digitization in Human resources is a concept which states the use of HR technologies for the different functions in HRM (Strohmeier, 2020). This can be done via HR tools and technologies, applications, tracking systems, databases, job boards, HR software and so on. In the current scenario, the firms have involved e-HRM practices to gain a competitive edge over its competitors. This paper deals with the facets of e-HRM and its application in businesses for producing best results. “Change is the only constant”, as it is widely pronounced. The enterprises are adapting themselves with the technological trends to keep pace with the other companies. The innovative e-HRM practices shall help companies to attract the best talent and to retain them as well (Ghazzawi & Accoumeh, 2014). Thus, the aim of this study is to understand the role played by e-HRM in businesses to yield positive results. In the present study the data were collected from 197 organizations from various sectors. The analysis was carried out with the help of multiple regression and the study concludes that there is a significant impact of E-HRM Practices on Business Effectiveness in the Digital Era.

Introduction

In the current scenario digitization seems to be a trending word. The term is in wide use because of the evolution of technology in almost all the fields. The usage of electronic media has surpassed the traditional methods of communicating, interacting, or connecting to different parts of the world and even participating in daunting tasks of analyzing huge data sets (Dash et al., 2019). Technology has made it possible with the help of just a few clicks. In the human resource domain of businesses which revolves around the employees of a particular enterprise dealt with the usage of traditional data entry methods. However, with the advent of technology, digitization and e-HRM practices the scenario has transformed from its usual being. The HRM functions have become much easier and more interesting with analytics into place. The e-HRM concept has gained much importance in the digital era (F?nd?kl? & Beyza, 2015).

The Human Resource Management functions areupgraded with the help of digital tools.The internet, mobile and electronic media supports the digital operations of Human Resource Management. The digital media makes the functioning easier and user-friendly. The repetitive tasks performed by human beings can easily be done and monitored by the help of software (Lacity& Willcocks, 2016). Optimization of digital media, analytics, cloud has enabled the organizations to increase their level of productivity. Technology has acted as a catalyst in enterprises to give an edge over the conventional practices for outperforming other competitors. The enterprises equipped with technology in human resource functions can expect better results in each financial year. The future is all about technology and its optimum usage. The e-HRM is a buzzword now, but it is going to be an essential requirement in near future. Without the intervention of digitization, HRM will lack the infrastructure to perform at its fullest potential (Dash et al., 2019). The management of several companies are trying to incorporate the best of human resource technology for enhancing the overall performance.

The present scenario is termed as “Digital era” because of the advancements and disruptions created by technology in almost all the industries. “The business model that has been driven by certain disruptions linked to the implication of digitization in all the factors associated to human society,” is a definition of digital transformation as given by few authors (Loebbecke& Picot, 2015). The operation of organization has focused on the incorporation of digital technology, it has now become an impeccable part of the strategies made by corporate leaders. Digitization in Human Resources has helped in creating predictive models for better performance. The attrition rate, productivity of employees, attendance tracking, leave records etc. can be precisely monitored with the use of e-HRM tools (Babaei, 2014). Along this line, the marketing and sales strategies of the companies can be well-laid out with digitized methods, it also has the ability to impact the behavior of consumers, their intent in buying certain products and services, the consumer expectations with respect to the companies can also be analyzed better with the aid of electronic and digital equipment.

Digitalization in HRM shall create a systematic and structured process which will eventually make the organization more productive and pertinent in the future. Without the advancements in technology and innovative changes, HRM will linger a long way behind the demands of the other enterprises around the world. This study attempts to feature the job of E-HRM in working on the development of organizations and the additional advantages which makes individuals and enterprises to create much more for themselves as well as for the overall work environment. The information utilized for this paperis mostly secondary in nature. The result of the paper could be insightful and vital for a business enterprise to execute E-HRM practices and to improve the talent in the organization by working on the requirements identified using E-HRM techniques. It shall further be beneficial for improving and upgrading hierarchical implementation of talent.

The pattern of business models is being changed with those that carry the ability to meet the needs and demands of the customers (Santos et al., 2015). The digital transformation is said to be an optimization tool catering to the future needs of organizations. Each day an organization encounters various unstructured data. This data is invariably known as big data. The humongous amount of data that an organization accumulates throughout the working hours is segregated and analyzed by transforming them into comprehensive visual stories (Gomberet al., 2018). This data can be captured and analyzed only with the help of digital tools and software related to all the functions in different departments. These tools work with specific algorithms and analyzed according to the need of individuals working in managerial categories.

Literature Review

Several papers have been reviewed to determine the concept of digitalization. The definition of digitalization is recorded along with its explanation in the social context in almost all the papers. It is a process of using technologies set in a digital framework to suit the business needs (Le Dinhet al., 2018). This process is necessary for individual small firms as well as big enterprises involving large amount of workforce. The trend of using digital and electronic tools have compelled the conventional firms to adapt to the trends. This allows them to meet the customer needs and demands in the appropriate ways. The analysis carried out while referring to different papers, gives an understanding of the growing desire for digital methods in the corporate firms. The digital places of work have spurled up with a lot of options. The Human resource managers and leaders shall have the opportunity to transform the businesses with the use of technology-based models (Stone & Deadrick, 2015). These technological solutions contain enough adequate data to support the perfect strategy for the betterment of an organization. The Information Technology embedded in the Human Resources practices is called as E-HRM (Kulkarni, 2014). The application entails information pertaining to performance management, payroll, personal data of employees, training and development, talent acquisition and so on and so forth.

Data is very critical for businesses to prosper. The leaders are benefitted with the pertinent insights that data can bring into the forefront while building strategies and policies. Data serves the purpose of analyzing the trends and formulating the appropriate HR policies. Many at times it is witnessed that the data pertaining to Human Resources of a company is stored in isolated systems. The fact that the data is not centralized and coherent makes it unworthy of consideration. It poses a problem for HR managers to make employee centric policies and procedures. The data can be used in maximum potential if the decentralized data can be structured and analyzed while connecting to the individuals working in the firm to build metrices that can add value to strategy designing in the top-level management.

The data in organizations remains in an unstructured manner unless and until it is segregated into visual reports that could portray a global perspective of the talent existing in the enterprise with the help of factual data and making a storyline out of the data captured. The E-HRM helps the business HR managers to incorporate employee data into the business metric and take decisions accordingly (Marler, & Parry, 2016). The analytics present in E-HRM tools assist in producing real time data for taking business decisions in a very dynamic ecosystem (Ellmer, & Reichel, 2018).

The important step to find the best talent for organization requires an assessment of the top skills, the existing skills, and the gap between both in the organization. The gap analysis shall be advantageous for the firms to understand the need to re-skill and up-skill its employees. The gap analysis can be performed with the help of e-HRM tools. The E-HRM practices shall constitute software shall be readily having a diverse talent pool to find the best talent for the organization (Bondarouk & Brewster, 2016). Along the same line, to cater to training needs, the analytics present in the software can be helpful in doing the gap analysis and provide the adequate resources to the workforce. E-HRM can help in assisting the functions of learning and development and talent management functions effectively.

To take part in the competitive race of organizations, reskilling is the need for the hour. The re-skilling can take place if the data set pertaining to the learning of employees is collected on a real time basis and the HR leaders have access to the data to carve out the insightful information from the same. The technology consisting of Artificial Intelligence, Robotic Process Automation, Machine Learning and so on gives an additional help to employees for tracking their learning hours and remain consistent in the process. The platforms also help in building adequate learning habits for sustaining in the competitive corporate sector. The AI based tools in HRM provides an opportunity to learn niche skills while also receiving rewards for putting up good performance in the learning courses and trainings. The skill metrices in the e-HRM tools can help build profiles in the talent management portals that ensures right talent is matched with the right set of jobs or projects to deliver the best (Malik et al., 2020). HR leaders have to make sure the competency mapping is done accurately to deploy the right set of talent in accordance with the kind of projects they can add value. This strategy works best for the company as it enables a proper talent pool consisting of permanent employees, contractual workers, business partners, associates, vendors, consultants and so on.

The E-HRM practices enables in managing the talent pool by giving an access to data about the multi-skill-based talent pipeline for achieving the business objectives. The manual practices in the organization are outdated and the processes have become monotonous and cumbersome. The businesses are in line to adapt to the technological developments and make them user-friendly for meeting the customer expectations. The E-HRM practices in organizational context has made the employee experience more personalized and created a holistic environment which caters to the business needs in a more structured manner than ever (Trenerryet al., 2021).

Automation in the Human resource processes, chatbots, AI, and so on has improved the employee experience. AI based platforms which gives a Learning Experience to employees, help taking in the workforce to move from making content to making valuable conditions for discovering the learning processes which can be inserted into to the progression of work: empowering customized and social learning and engaging the employees in expert training and learning courses, which have been improvised and customized, in addition to social skill development and many other forms of learning. The portals of E-HRM also help in adding sick leaves or casual leaves in the system progressively. Technology entailing robotized dashboards consider simple and easy reach to individual information, leave adjustments and impending occasions progressively on an individual’s cell phone. The employee experience can just be improved with a progressive design technology with respect to time that can be brought about by digitization. The documentation of employee records with the help of papers is a huge cumbersome process and has many disadvantages as well. There are various risks associated to employee record data, such as shortage of storage space, loosing or theft of data, and it also takes a lot of time to record this pertinent information with the help of manual methods. Technology has simplified this process and helped managers to achieve compliance while shortening the storage space required for the huge data sets. E-HRM is characterized as a method of carrying out HR techniques, strategies, and practices in the enterprises through a cognizant and coordinated help of full utilization of web-innovation based channels or, as more comprehensively described as planning and executing and use of data frameworks for both systems administration and supporting aspects in their common processes of Human resource functions (Shah et al., 2020).

Robotic Process Automation (RPA) is a technology which has given assistance in taking on dreary and monotonous jobs in any process that does not need explicit information, comprehension, or insight. RPA can do certain exercises like control of organized or semi-organized information, communicate with different frameworks (office apparatuses, ERP, centrally managed servers, and so forth), and trigger routine activities such as sending emails, scheduling meetings, call for discussions and so on. RPA can also cater to gathering individual information through the process of onboarding, overseeing personal information changes, and grouping records where data should be mentioned and fed into at least one of the structures, just as employee’s personal records and documents. The application of RPA to these sorts of cycles limits treatment of sensitive information and initiates interaction to accomplish a more proficient and powerful result (Papageorgiou, 2018).

Human Resource Management (HRM) divisions utilizing data and technology used for communication are turning into an undeniably significant process or tool generally alluded to as e-HRM. Computerized HR strategies and practices are changing the conventional paper-and-pen, work concentrated HR jobs, into productive and effective exercises that empower organizations to expect and benefit from the existing surplus of data available to make a truly necessary advantage for the success of an organization. In the perspective on Michael Armstrong, E-HRM delivers the data needed to oversee the HR policies and processes. All in all, E-HRM is a method of carrying out the HRM systems, approaches, and practices in an enterprise through association of web innovation-based channels along with the jobs carried out in the organization (Al-Dmouret al., 2017). E-HRM is a moderately new term for this IT infrastructure based HRM, particularly using web technology. E-HRM can possibly change the way customary HRM processes are performed.

For instance, in the examination, planning and scheduling of work, representatives in topographically scattered areas can cooperate in the digital platforms, where the virtual teams are carrying out their daily jobs using video conferencing, calls, emails, and so forth under the talent acquisition function, employment opportunities can be displayed or advertised on the website, and the jobseekers can apply for suitable positions on the website.On the issues related to compensation and benefits management e-HRM has the ability to make it simple for representatives to survey compensation and reward data and make decisions related to bonus and pay scale of employees (Suchitra, 2014). E-HRM is the arranging, execution, and utilization of technology and innovation for both systems administration and supporting the HR functions. The E-HRM system is not the same as Human Resource Information System (Masum et al., 2015). Its system is also not quite the same as that of Virtual HRM.

E-HRM has been alluded by many authors as an HR exercise, either a part of administrative function or as a change-maker or transformational function, as much as that can be endorsed by data related technology or innovation. Nonetheless, E-HRM is considered as an electronic innovation system that utilizes most of the unstructured and scrupulous data and technology used for communication to give an access to real time innovative solution to the Human resource problems encountered within an organization. An author has characterized e-HRM as the planning, execution and utilization of innovation and technology for both systems administration and supporting of something like “two individual or collective actors” in their common performing of HR exercises (Bhatt, 2015). One has stated the expression "virtual HR" to envelop an organization put together design-based framework with respect to organizations and interceded by data innovations to assist the businesses with acquiring, creating, and allocating the intellectual capital to specific projects. The author sees e-HRM as a method of executing HR techniques, arrangements, and practices in associations through a cognizant and coordinated help of and additionally with the full utilization of technology-based channels. In any case, various authors have put strong emphasis on various facets of e-HRM.

Objective

1. To find different roles of E-HRM in business of digital era.

2. To know the impact of e-HRM Practices on Business Effectiveness in the Digital Era.

Research Methodology

A sample of 197 people was surveyed with the help of a structured which was specially designed for the present study. Respondents were from the HR department and had shared their opinion about different role of E-HRM and its impact on business effectiveness in the digital era. The study is empirical in nature and the data collection method used was random sampling. Statistical tool called multiple regression was applied to get the end results of the study.

Findings

Table 1
Role of E-Hrm In Business Of Digital Era
SI. No. Role of E-HRM in business of digital era Mean Value
1. E-HRM delivers the data required to manage the HR policies and processes 3.80
2. The portals of E-HRM are helpful in adding sick leaves or casual leaves in the system progressively 3.60
3. The E-HRM practices helps to manage the talent by allowing data access about the multi-skill-based talent for achieving the business goals 3.59
4. E-HRM assists the functions of learning and development and talent management in effective manner 3.68
5. E-HRM is helpful in producing real time data for taking business decisions 3.95
6. E-HRM is helping HR managers to incorporate employee data into the business metric 3.97
7 E-HRM includes information pertaining to performance management, payroll, and personal data of employees, training and development, talent acquisition etc 3.77
8 E-HRM helps to improve and upgrade hierarchical implementation of talent 3.84
9 Due to E-HRM systematic and structured process make the organization more productive and pertinent 3.73
10 E-HRM helps to measure the behavior of consumers, their intent in buying certain products and services, the consumer expectations with respect to the companies 3.63
DV Overall impact of e-HRM Practices on Business Effectiveness in the Digital Era 3.82

Table 1 is showing different roles of E-HRM in business of digital era. It is observed that E-HRM is helping HR managers to incorporate employee data into the business metric with the mean score 3.97 and E-HRM is helpful in producing real time data for taking business decisions with the mean score 3.95. E-HRM helps to improve and upgrade hierarchical implementation of talent with the mean score 3.84 and E-HRM delivers the data required to manage the HR policies and processes with the mean score 3.80. the respondent says that E-HRM includes information pertaining to performance management, payroll, and personal data of employees, training and development, talent acquisition etc with the mean score 3.77 and due to E-HRM systematic and structured process make the organization more productive and pertinent with the mean score 3.73. E-HRM assists the functions of learning and development and talent management in effective manner with the mean score 3.68 and E-HRM helps to measure the behavior of consumers, their intent in buying certain products and services, the consumer expectations with respect to the companies with the mean score 3.63. The portals of E-HRM are helpful in adding sick leaves or casual leaves in the system progressively with the mean score 3.60 and E-HRM practices helps to manage the talent by allowing data access about the multi-skill-based talent for achieving the business goals with the mean score 3.59.

Analysis of Multiple Regression

Table 2, 3, and 4 shows the relationship of the 10 independent variables and 1 dependent variable which is “Overall impact of e-HRM Practices on Business Effectiveness in the Digital Era.”

Table 2
“Model Summary”
“Model” “R” “R Square” “Adjusted R Square” “Std. Error of the Estimate”
1 0.895a 0.802 0.791 0.37605
a. Predictors: (Constant), Delivers the data required to manage the HR policies and processes, Adding sick leaves or casual leaves in the system progressively, Manage the talent by allowing data access about the multi-skill-based talent, Assists the functions of learning and development and talent management producing real time data for taking business decisions, Produces real time data for taking business decisions, Incorporate employee data into the business metric, Includes information pertaining to performance management, payroll, and personal data of employees, training and development, talent acquisition etc, Improve and upgrade hierarchical implementation of talent systematic and structured process make the organization more productive and pertinent, Systematic and structured process make the organization more productive and pertinent, Measure the behavior of consumers, their intent in buying certain products and services, the consumer expectations with respect to the companies

The Value of adjusted R square is 0.791, which means that the model explains around 80% of the variation. Table 3 shows the values of ANOVA, which is significant (sig. value below 0.05) which reflects the impact of independent variables is significant on dependent variable.

Table 3
“Anova”
“Model” “Sum of Squares” “df” “Mean Square” “F” “Sig.”
Regression 106.479 10 10.648 75.297 0.000b
Residual 26.303 186 0.141    
Total 132.782 196      
DV: Overall impact of e-HRM Practices on Business Effectiveness in the Digital Era
b. Predictors: (Constant), **

** Delivers the data required to manage the HR policies and processes, Adding sick leaves or casual leaves in the system progressively, Manage the talent by allowing data access about the multi-skill-based talent, Assists the functions of learning and development and talent management producing real time data for taking business decisions, Produces real time data for taking business decisions, Incorporate employee data into the business metric, Includes information pertaining to performance management, payroll, and personal data of employees, training and development, talent acquisition etc, Improve and upgrade hierarchical implementation of talent systematic and structured process make the organization more productive and pertinent, Systematic and structured process make the organization more productive and pertinent, Measure the behavior of consumers, their intent in buying certain products and services, the consumer expectations with respect to the companies

Table 3 presents the value of ANOVA and F value. The value in the significance column of the table 3 is .000 which means that one or more variables are significant on dependent variable. The impact of independent variables on dependent has been explained in the table 4.

Table 4
“Coefficient”
“Model” “Un standardized Coefficients” Standardized Coefficients “t” “Sig.”
“B” “Std. Error” “Beta”
(Constant) 0.232 0.243   0.955 0.341
Delivers the data required to manage the HR policies and processes -0.074 0.031 -0.080 -2.369 0.019
Adding sick leaves or casual leaves in the system progressively 0.077 0.033 0.084 2.312 0.022
Manage the talent by allowing data access about the multi-skill-based talent 0.010 0.041 0.011 0.257 0.797
Assists the functions of learning and development and talent management producing real time data for taking business decisions -0.079 0.041 -0.081 -1.950 0.053
Producing real time data for taking business decisions 0.016 0.038 0.017 0.420 0.675
Incorporate employee data into the business metric 0.002 0.050 0.002 0.040 0.968
Includes information pertaining to performance management, payroll, and personal data of employees, training and development, talent acquisition etc 0.212 0.057 0.204 3.706 0.000
Improve and upgrade hierarchical implementation of talent systematic and structured process make the organization more productive and pertinent 0.587 0.059 0.568 9.883 0.000
Systematic and structured process make the organization more productive and pertinent 0.190 0.051 0.195 3.762 0.000
Measure the behavior of consumers, their intent in buying certain products and services, the consumer expectations with respect to the companies .004 .034 .004 .110 .912
DV: Overall impact of e-HRM Practices on Business Effectiveness in the Digital Era

Table 4 shows that out of 10 variables, 6 variables namely Delivers the data required to manage the HR policies and processes, Adding sick leaves or casual leaves in the system progressively, Assists the functions of learning and development and talent management producing real time data for taking business decisions, Includes information pertaining to performance management, payroll, and personal data of employees, training and development, talent acquisition etc, Improve and upgrade hierarchical implementation of talent, and Systematic and structured process make the organization more productive and pertinent Systematic and structured process make the organization more productive and pertinent shows significant impact of e-HRM Practices on Business Effectiveness in the Digital Era as the value in the significant is below the significant value (0.05) and the variables namely Manage the talent by allowing data access about the multi-skill-based talent, Producing real time data for taking business decisions, Incorporate employee data into the business metric and Measure the behavior of consumers, their intent in buying certain products and services, the consumer expectations with respect to the companies has no significant impact of e-HRM Practices on Business Effectiveness in the Digital Era as the value in the significant column is above (0.05).

Conclusion

E-HRM is a concept of digitization and inclusiveness of information technology in HRM. The paper concludes with the understanding that, E-HRM is a specialized cycle of changing over simple data into advanced data for managing difficult problems in business decision making purposes (Mukherjee et al., 2014). A simple instance which complements this statement could be a system wherein candidates are applying in paper-based medium. This lengthy and monotonous process can easily be digitized with the help of E-HRM tools. In this manner, E-HRM is a platform giving the feasibility to perform the Human Resource functions through a digitized medium. Technological advancements and change agents of HRM is a grounded argumentation which guarantees a fact that the functional utilization of digital innovations infers a "freedom" of HR experts from functional burdens that as it takes into account the important strategical exercises performed by HR experts.

The study concludes that E-HRM plays different roles such as Delivers the data required to manage the HR policies and processes, Adding sick leaves or casual leaves in the system progressively, Assists the functions of learning and development and talent management producing real time data for taking business decisions, Includes information pertaining to performance management, payroll, and personal data of employees, training and development, talent acquisition etc, Improve and upgrade hierarchical implementation of talent, and Systematic and structured process make the organization more productive and pertinent Systematic and structured process make the organization more productive and pertinent in business. It is also found that there is a significant impact of e-HRM Practices on Business Effectiveness in the Digital Era.

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Received: 25-Nov-2021, Manuscript No. AEJ-21-9593; Editor assigned: 27-Nov-2021, PreQC No. AEJ-21-9593 (PQ); Reviewed: 13-Dec-2021, QC No. AEJ-21-9593; Revised: 18-Dec-2021, Manuscript No. AEJ-21-9593 (R); Published: 05-Jan-2022.

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