Research Article: 2024 Vol: 28 Issue: 6
Ahmad Ibrahim Abu alhaija, The World Islamic Sciences & Education University
Shaker Jaralla Alkshali, The World Islamic Sciences & Education University
Citation Information: Abu Alhaija, A.I., Alkshali, S.J.,(2024). The Impact of Electronic Human Resource Management On Organizational Performance at Jordanian Islamic Banks. International Journal of Entrepreneurship, 28(S6),1-18
This study aimed to explore the impact of electronic human resource management in its dimensions (electronic staffing, electronic training, electronic performance appraisal, and electronic compensation) on organizational performance in its dimensions (financial, customers, internal operations, learning and growth, and environmental) at Jordanian Islamic Banks. The sample size included in the study was 155 managers, from whom data was collected through a questionnaire developed by the researchers. Simple and multiple linear regression coefficients were used to achieve the objectives of the study. The study concluded that there is a high level of application of electronic human resource management and organizational performance, and that electronic human resource management has a significant impact on organizational performance. Electronic human resource management has a significant impact on all dimensions of organizational performance
Electronic Human Resources Management, Organizational Performance, Electronic Compensation, Balanced Scorecard, Islamic Banks, Jordan.
Organizations in the business world today face a number of economic, social, cultural, political, legal and technological challenges, which directly affect the organization's activities. They also live in a highly competitive environment, and they also live in a turbulent, unstable and uncertain environment, in addition to other challenges represented by globalization, openness and digitalization.
Attention has been paid to E-HRM, which enables access to E-HRM functions and obtaining, auditing and retrieving information in a timely manner by relying on web systems (Dulebohn & Stone, 2018, 2).
Dessler (2020, 606-607) indicates that with the growth of organizations' businesses in today's business world, it has become difficult to rely on manual human resource management systems. Therefore, many organizations have relied on E-HRM, where computerized programs are used to manage staffing, training, performance appraisal, and compensation processes electronically, thus the organization gains many advantages provided by these cloud systems that can be easily updated and in line with the requirements of the current era.
E-HRM focuses on finding innovative electronic methods that enable a noticeable change in the organization and in line with the current era, as in order to confront the business developments witnessed by the business world today, it has become necessary to prepare human resources so that they are able to deal with the requirements of technology (Manuti & De plama, 2023, 3-4).
Organizational performance OP is considered the cumulative results of all work activities that the organization works to accomplish in order to achieve the desired goals, so managers need to understand all the factors that contribute to developing OP (Kaul, 2015, 247). The balanced scorecard provides a comprehensive framework that enables the organization to manage its long-term strategy through a coherent set of performance measures. To determine financial goals, one must consider focusing on revenue growth, profitability, or cash flow generation. From the customer perspective, the management team must be clear about the target customers and market segments. As for internal operations, one must focus on the internal operations cycle to achieve outstanding performance for customers and shareholders, which represents one of the main innovations and benefits of the balanced scorecard approach. As for learning and growth, it is represented in retraining employees to enhance organizational procedures to generate innovations and improvements (Kaplan & Norton, 1996, 10-12). Therefore, this study came to reveal the impact of E-HRM on OP in these Banks.
Study Problem and Questions
The study problem lies in the OP in Jordanian Islamic Banks, where the impact of E-HRM on OP will be studied. In light of the multiple challenges that Jordanian Islamic banks are experiencing, such as fierce competition, changes in the banking and technological environment, as well as the rapid development in the banking sector, it has become imperative for them to pay attention to their performance to confront these challenges. These banks may think about developing their performance by trying to improve their image in the minds of customers and shareholders, or by increasing attention to internal operations so that customer requirements are met and thus customer satisfaction is achieved and shareholders' trust is gained, or by empowering employees in these banks, or by applying standards that preserve the environment.
Jordanian Islamic banks can use electronic human resource management, which works to transform human resource work from the traditional role to the electronic role that is compatible with the current era through the use of computer and web technologies in recruitment, training, performance evaluation and compensation.
The study of Al-Hassan and Al-Saleem (2023) confirmed the existence of a statistically significant impact of using E-HRM practices in improving performance, as it is possible to benefit from electronic human resource management practices to create a positive work environment, achieve organizational excellence, and work on conducting continuous evaluation to achieve quality performance. The study of Masoudi and Fattah (2021) also confirmed the existence of a significant relationship between E-HRM practices and OP, as to increase the organization's response to environmental changes, attention must be paid to creative ideas and developing work methods.
Based on the above, the study problem revolves around the following questions:
• What is the impact of E-HRM in its dimensions (electronic staffing, electronic training, electronic performance appraisal, and electronic compensation) on OP in its dimensions (financial dimension, customer dimension, internal operations dimension, learning and growth dimension, and environmental dimension) at Jordanian Islamic Banks?
• The following sub-questions emerge from the main question:
• What is the importance level of E-HRM and its dimensions (electronic staffing, electronic training, electronic performance appraisal, and electronic compensation) at Jordanian Islamic Banks?
• What is the importance level of OP and its dimensions (financial dimension, customer dimension, operations dimension, learning and growth dimension, and environmental dimension) at Jordanian Islamic Banks?
Study Importance
The importance of the study comes in the following:
Scientific importance: the scientific importance of this study stems from the importance of E-HRM in its dimensions (electronic staffing, electronic training, electronic performance appraisal, and electronic compensation) as well as OP in its dimensions (financial dimension, customer dimension, internal operations dimension, learning and growth dimension, and environmental dimension) and the role of these variables in developing the future of Jordanian Islamic Banks, and the success of these banks in the presence of these variables, which are considered contemporary concepts that attract the attention of researchers and scholars due to their importance in the ability of organizations to deal, adapt, and respond to the changes surrounding them, as well as in the presence of competition, and the technological and scientific progress that has swept the business world today, which requires the management of electronic human resource that helps organizations develop organizational performance.
Therefore, the study seeks, through delving into these concepts, to identify the impact of E-HRM on OP by reviewing the latest writings on these variables and what is of interest to researchers in this field, and presenting it within this study to be a tributary for researchers and professionals, and thus fill the gap in the Arab library on these concepts, in addition to bridging the knowledge gap through the researcher's simple and modest effort to enrich the Arab library.
Applied importance: the importance of the study comes from the applied aspect in the extent to which the departments in Jordanian Islamic Banks benefit from the results it reached, and the recommendations it presented, and what is related to the study variables represented by E-HRM in its dimensions, and OP in its dimensions, as well as the importance of the sector in which it was applied and its role in contributing to the gross domestic product.
Study Objectives
This study aims to identify:
1. The importance level of E-HRM at Jordanian Islamic Banks.
2. The importance level of OP at Jordanian Islamic banks.
3. The impact of E-HRM on OP at Jordanian Islamic Banks.
Electronic Human Resource Management
E-HRM is a new way to address human resource management through technical means represented by information systems that facilitate the communication process in the organization, and it also enables employees to control and update personal information continuously, thus increasing the efficiency and effectiveness of the organization by improving the capabilities of managers and employees to make better decisions (Deb, 2009, 478).
E-HRM is an integrated system based on information technology that automates and supports human resource activities through web-based systems, with the aim of creating value for employees and management by updating the areas of human resource represented by staffing, training, performance appraisal and compensation (Samanta & Mahajan, 2022, 214).
E-HRM includes the organization's adoption of a new methodology that includes the use of technologies that help managers and employees in the areas of human resource management, represented in staffing, training, performance appraisal and compensation. This is done through the conscious use of information and communication technologies in human resource management practices. This is built according to a new method based on new thinking and the use of new mechanisms to achieve the specified goals. It is an administrative work that depends on technologies and communications in human resource management and in a way that achieves integration in administrative work in the organization. (Yaseen, 2022, 225).
Coronas and Oliva (2005, 178) see electronic human resource management as the management capable of adding value such as knowledge management, culture management, strategic reorientation, renewal, and implementation of transactions and tasks through information technology systems, and gradually transforming through increasing the electronic provision of human resource, which saves time and cost with staffing and training systems, and in a way that ensures the continuity of the business model via the internet and intranet, as it works to enable human resource specialists to divide people and activities and direct them towards operational and strategic operations and activities, as the use of technology leads to supporting operational processes and increasing the amount of available information, and accessing human resource management policies and practices through websites.
Al-Sharif et al. (2013, 284) defined electronic human resource management as a new type of administrative thought and practices, as it works to transform human resource work from the traditional administrative form to a new, broad form stemming from the importance of the human resource management cycle as a strategic partner, which suits the requirements and technologies of the new era, and works to apply them, and invests information and communication technologies in performing its functions, and is able to deal with the internal and external environment of the organization, and determine the strategic objectives of human resource, and deal with the requirements and developments of the human resource structure and modify recruitment and selection plans in line with current developments, and is able to distribute responsibilities to the human resource available in the organization to keep pace with technical developments, and work with knowledge management effectively so that knowledge is distributed to human resource to develop the competitive capabilities of the organization.
It has been defined as one of the most important modern trends in management science, which is an inevitable result of the modern era. It works to provide an appropriate environment to increase the effectiveness of human resource performance and ensure the achievement of the desired goals. It is characterized by flexibility capable of adapting to the requirements of the current era, which requires the transition from paper and manual jobs to electronic jobs, which contributes to raising productivity and reducing costs, time and effort spent, as the application of electronic management requires modern technological means and human resource capable of using modern technologies, and the existence of ongoing plans and programs to qualify human resource in the electronic field (Marzouq et al., 2018, 153-154).
E-HRM is an online tool that supports human resource operations, and it is an opportunity to enter data to employees to facilitate the process of electronic entry into markets by working to create what is called self-service for employees. It is a group of technologies that work to find electronic solutions that enhance knowledge for human resource. (Al-Taie 8 Al-Abbadi, 2015, 390).
E-HRM tracks the activities and needs of employee training and development, performance evaluation and work relations, and all areas of human resource management. It simplifies human resource management processes, enables human resources specialists to add value to the organization in new and innovative ways that suit the current era, in addition to supporting decision-making processes (Fsher, 1996, 612).
E-HRM dimensions
1. E-staffing: E-staffing is the process of attracting potential employees via the internet using the organization's staffing website or through the staffing website of a commercial company or through electronic advertisements on other websites, as e-staffing allows the collection and processing of job applications around the clock, as it includes an internet-based staffing source and technology-supported organizational management practices (Tyagi, 2016, 7).
E-staffing is available through the use of information technology networks that provide the organization with the opportunity to advertise its available vacancies, with the aim of attracting external talents and competencies for the purpose of selecting suitable candidates, and it also allows job applicants to follow up on the application through the website (Saleh, 2020, 239).
E-staffing allows for direct dealing and the continuation of the staffing process around the clock. It also facilitates the process of advertising the vacant position. It is faster by (70%) than traditional staffing methods because it increases the speed of the staffing cycle. It is less expensive than traditional staffing, as its cost is 90% less than the cost of traditional staffing methods. It also enables the employer to reach the right person through electronic staffing sites, which in turn provide the expertise and knowledge of the people to be searched for. E-staffing also maintains confidentiality between the employer and the job seeker because it allows the employer to communicate directly with the job seeker, and also provides a reference base for the organization by providing many CVs and the possibility of screening to reach the desired one (Suleiman, 2020, 279-277).
E-staffing relies on information technology, starting from identifying vacancies and moving to publishing the advertisement and obtaining and classifying CVs through artificial intelligence. It uses technology and the internet to advertise vacancies and receive job applications. This is done by using online job boards, company websites and social media platforms to reach potential candidates. E-staffing has reduced time by 90% compared to traditional recruitment, and it has also reduced the cost to 5% of the cost of traditional recruitment (Alareeni & Elgedawy, 2023, 8).
E-staffing enables employers to post job advertisements on their organizations’ websites, as well as on smartphone applications, and enables the use of job boards available online. Here, simulation systems and artificial intelligence can be used, which in turn help employers attract, collect, screen, compile, manage, and prepare the required reports for applicants. The employer can also provide the job applicant with the opportunity to take a test via the website in order to filter through telephone and video interviews to reach the people most suitable for the job. Virtual job fairs (online) have become another option that enables job seekers to visit these fairs, browse available jobs, and leave a CV. E-recruitment has many advantages, as it leads to rapid response and is characterized by its strong impact on attracting applicants at a lower cost. On the other hand, e-staffing has some disadvantages, such as overloading the internet and the possibility of bias due to the fact that some elderly people find it difficult to access this type of recruitment sites (Dessler, 2020, 142-143).
2. E-training: E-training is considered one of the modern tools that have spread after the spread of the internet. E-training may be synchronous, so that the trainer and trainee are present at the same time, but they do not necessarily have to be present in the same place. It may be asynchronous, so that the trainer and trainee are not present at the same time and place. E-training facilitates communication and interaction between the parties, and allows the possibility of contributing to different points of view that may enrich the topic of discussion. This is done through discussion rooms and electronic dialogue. Trainees also feel equal, as any trainee can give his opinion without embarrassment. E-training also enables easy access to the training material and the trainer at any time through communication via e-mail. It also contributes to reducing administrative burdens and costs, as digital technology has contributed to reducing costs by shortening the halls, their equipment, and services (Amer, 2013, 142-145).
The design of the e-training program has revolutionized the world of training by providing employers with training programs that enhance cooperation between employees, especially when they work on a single training project. E-training includes computer-based interactive activities that increase the skills and knowledge of trainees through secure methods that enable trainees to replay content and answer questions wherever they are and at any time. E-training has become realistic and effective through the use of interactive training based on graphics and images as well as the use of simulation systems (Dessler, 2020, 247-252).
3. E-performance appraisal: The performance evaluation system expresses a systematic, periodic process that evaluates the employee's job performance through pre-determined criteria. This term is currently referred to as the electronic evaluation system, as some employees are forced to work from different places. The electronic evaluation system is an integrated performance management system. It is characterized by its ease and enables employees to judge their performance and thus generate motivation. It is equipped with web access, thus eliminating paper transactions and repeated reviews of employees regarding the evaluation, as this system sends an electronic evaluation message to the employee so that it completes the evaluation process self-assessment and then send it to the manager who in turn adds recommendations, thus saving time and enhancing objectivity in the evaluation process (Goel, 2023, 99-101).
E-performance appraisal, also known as electronic assessment, is an employee monitoring process that is done and delivered electronically. These electronic and internet-based systems provide managers and employees with accurate, continuous and timely information about employee performance. This is done through the use of dashboards, performance cards and standards. The use of electronic assessment also simplifies the evaluation process and shortens the time, cost and effort required to manage employee performance. Through this system, there is speed and accuracy in identifying problems and finding solutions to them by meeting managers with employees to discuss their performance and required improvements and the possibility of organizing the necessary reports. Thus, there is alignment between employee activities and behavior and the organization's goals and strategy, and thus employees feel empowered and involved, which leads to a decrease in employee turnover and an increase in revenue (Stone et al., 2024, 304).
4. E-compensation: E-compensation relies on the use of computer and web technologies for the purpose of planning employee compensation, as these technical systems provide sufficient information about the compensation and benefits systems adopted by the organization, and allow managers the opportunity to manage many human resources functions at the same time, in addition to the opportunity to prepare the necessary reports, as well as the opportunity to access accurate and timely information with the required speed and reliability. The use of e-compensation mechanisms also helps human resource specialists’ access higher levels of data, which can contribute significantly to increasing the effectiveness of compensation and reducing the level of error, thus maintaining wage equality, and discovering any error that may occur and addressing it immediately (Meral, 2019, 277).
E-compensation is one of the most powerful factors that an organization can use to maintain competencies in light of the talent war that the business world is witnessing today. When an organization has an electronic compensation system capable of sorting employee benefits, its goals will be achieved by employing and owning employee loyalty, commitment and performance. E-compensation technologies are able to include tasks starting from collecting, storing and processing compensation data to analyzing, using and distributing it within the organization. These technologies also provide compensation information via the internet, and enable employees to design their own compensation according to their needs by choosing the appropriate compensation package for them that is available electronically on the system, which leads to reducing administrative burdens (Chen et al., 2019, 6).
Organizational Performance
Kaplan and Norton (1996, 222) consider OP to be a balanced performance resulting from an administrative system that links the tasks of business units to specific and clear procedures, in addition to finding the required alignment between all employees within the organization and the strategy, in order to facilitate the process of setting goals and obtaining correct responses to the organization's strategic path. The balanced scorecard provides executives with a comprehensive framework that includes translating the organization's vision and strategy into a coherent set of performance measures, by communicating the core values and beliefs to all employees and providing energy and motivation in the organization (Kaplan & Norton 1996, 24).
OP is the process through which the main methodology for the organization's mission, goals and strategy is determined, which enables it to move on the right track by identifying measurable performance indicators, and taking the necessary corrective and preventive measures, in order to achieve outstanding performance, and thus achieve the desired success De Waal, 2017, 5).
OP is considered an approach that works to create an environment that allows OP to be the daily function of everyone, by providing a clear understanding by everyone in the organization of the strategic direction, competitive advantage, and collective responsibility for continuous improvement. It works to help the organization formulate, implement, improve, and evaluate the strategy on an ongoing basis. It also works to refine strategic thinking, empower employees, and gain strategic visions that enable the organization to make sound decisions that enable it to face internal and external challenges (Marr & Gary, 2012, 3).
Several definitions of OP have emerged. Al-Tawil and Jassim (2019, 83-85) described it as the mirror that reflects the image of the organization by implementing its strategy through performing various functions to achieve the desired goals. It is a vital state for evaluating the reality of the organization and achieving the desired goals in the best possible way, meaning that it is the point that determines the current position of the organization and through which acceptable results can be reached and thus obtain what is planned efficiently and effectively.
OP represents a comprehensive cognitive structure in the organization, as it reflects the success of the organization and its ability to adapt and survive, and includes criteria derived from the organization's mission and strategic objectives. It is a central axis for assessing the success and failure of the organization's decisions, as it reflects the strategic direction and the correct actual choice of the appropriate strategic approach. Also, through OP, effective control can be achieved, and thus provide the required feedback. It includes increasing the efficiency and effectiveness of administrative activities and thus achieving competitive advantage (Sayed, 2016, 274-275). Al-Saad et al. (2012, 177) believe that OP is the performance that works to increase the efficiency and effectiveness of administrative activities, as well as choosing strategic objectives, and reducing the strategic gap, and thus achieving sustainable competitive advantage.
OP dimensions
1. Financial dimension: The financial dimension can be summarized through the image that the organization should have in the minds of owners or shareholders, as this dimension works to measure the economic effects of implementing the strategy, and there are indicators to measure financial performance, including: profitability, productivity measures, sales growth rate, and cash flows (Jarar, 2018, 185-188).
The financial dimension depends on the revenue growth strategy, which is achieved by adding new channels to generate revenue, or by increasing the value of existing customers by working to increase their satisfaction and deepen relationships with them. The financial dimension also depends on the production strategy that works to improve the cost structure in order to achieve a competitive advantage. The financial dimension also depends on the organization's investment in human, material, technological, and financial resources so that the organization becomes more efficient (Al-Labdi, 2015, 69).
The balanced scorecard does not conflict with the financial goal, which is a vital goal for the organization. It is a long-term goal that provides the organization with superior returns based on the capital invested in the unit. The balanced scorecard makes the financial goals clear and allocates them to business units at each stage of their growth. They include profitability, asset returns, and revenue improvement. The balanced scorecard also helps allocate motives in the financial perspective of the industry and the competitive environment through revenue growth, productivity improvement, cost reduction, and asset utilization. The balanced scorecard links financial goals to the actions that must be taken with financial operations, customers, internal operations, employees, and systems in order to improve results in the long term (Kaplan & Norton 1996, 61-62).
2. Customer dimension: Customer dimension includes the necessity for managers in organizations to have an idea about the target customers and to determine the superior value that should be provided to them related to the product features (function, quality, and price), as well as using measures such as market share, customer retention, acquisition, satisfaction, and profitability for the target sectors, in order to achieve the objectives of marketing, operations, and product development in the organization (Kaplan & Norton, 1996, 85).
Organization must carefully identify its customers by establishing a network of relationships that ensures access to customers, identifying their requirements, and working to meet these requirements in the best possible way, in order to accomplish the required task before shareholders, and in order to achieve the required and desired results, the customer dimension must be placed as the organization's first priority (Niven, 2003, 34).
Customer dimension focuses on measuring the current and future position of the organization from the point of view of suppliers and customers, as this dimension depends on many indicators, including: the organization's market share, customer satisfaction, and supplier satisfaction (Al-Shumili, 2017, 53).
Customer dimension revolves around the image that the organization should appear to its current customers, and how to attract new customers while taking into account profitability and maintaining quality. In this regard, many indicators can be relied upon, including: market share, maintaining current customers and gaining their loyalty, attracting new customers, and customer satisfaction, which provides the required feedback (Jarar, 2018, 190-191).
The customer dimension focuses on the customers and markets through which the organization competes, and also focuses on the organization's performance and its ability to achieve customer satisfaction by providing products at the appropriate price and quality. The focus is also on the market share, current and targeted customers, and determining the mechanisms of competition required in the organization's business field, so that its performance can be measured in light of the targeted market share in this field, and this dimension must reflect the customer's point of view regarding the organization's business (Al-Saad et al., 2012, 50).
3. Internal operations dimension: The internal operations dimension refers to what the organization must do to achieve customer satisfaction and gain the trust of shareholders, as this dimension includes a set of non-financial measures, including: the production cycle time, the rate of minor errors in quality and quality control, as well as feedback on the outputs of the organization's internal operations, which falls under the responsibility of total quality management (Al-Naimi & Al-Tamimi, 2007, 150).
Internal operations dimension depends on the organization's internal operations, which work to develop two aspects, as they work to add value to the customer on the one hand, and on the other hand, they work to increase the wealth of shareholders, as this dimension includes the innovation process, which works to create products that meet customer requirements, and also includes operating processes, which include processes related to production, logistics, and processes to maintain the required quality and after-sales services (Muhammad, 2016, 260).
Organization must be able to plan well and update internal plans and operations continuously, and be able to predict problems that may occur and take the necessary steps to avoid them, and that there must be effective internal communications to increase the efficiency and effectiveness of internal operations. In this regard, there are many sub-measurement areas that can be relied upon to measure the performance of internal operations, including: finding or identifying markets, product design, after-sales services, and the structure that facilitates the production process (Radwan, 2013, 72).
Internal operations are considered one of the basic keys to achieving customer satisfaction and thus achieving shareholder satisfaction. This is done by the organization focusing on maintaining, improving, and developing the performance of internal operational operations, in order to achieve the desired goals (Kahraman et al., 2012, 227). Marr (2015, 47) believes that the internal operations dimension focuses on the organization's performance from the perspective of the operations that are implemented within the organization, so that the main systems and operations are identified, and the internal operational objectives are covered to reach the customer's goals and objectives.
4. Learning and growth dimension: The learning and growth include employees possessing the capabilities and tools that enable them to effectively implement the strategy. In this regard, the organization may rely on experience to benefit from performance, as the organization sets performance goals to bridge the skills gap, as these goals help in the effective implementation of the strategy adopted within the framework of the balanced scorecard (Idris and Al-Ghalbi, 2009, 115).
The learning and growth aim to derive goals to measure organizational learning, and to invest in human resources through training and continuous learning. This is done by changing routine procedures and creating work procedures that are able to keep pace with the requirements of the modern era. Organizations must create an appropriate work environment that enables employees to benefit from learning, training and continuous development programs that are reflected in performance, and thus reach continuous improvement that enables the organization to achieve its goals in the appropriate manner and achieve the desired results. In this dimension, organizations must balance between the capabilities of employees, the capabilities of information systems and the general climate of the organization (Al-Malkawi, 2009, 160-162).
The learning and growth enable the financial dimension, the customer dimension, and the internal operations dimension. It is the foundation on which the balanced scorecard is built. By relying on this dimension, organizations will be able to establish measures that enable them to bridge the gap between human capital, which includes the skills and capabilities necessary to implement the strategy and compete effectively in the market, and information capital, which includes the information infrastructure and support systems for the strategy, and organizational capital, which includes intangible assets that provide the ability to change and grow (Niven, 2005, 16, 75).
The learning and growth can be relied upon to achieve the organization's ambitious goals, through sound investment in the main categories of this dimension, which are: employee capabilities, information systems capabilities, motivation, empowerment, and alignment. Through these categories, the strategic function can be covered, the necessary strategic information can be provided, and personal and administrative alignment with the organization's strategic goals can be achieved (Kaplan & Norton, 1996, 126-127, 146).
5. Environmental dimension: The environmental dimension focuses on achieving the competitive advantage of the organization by providing good jobs that include occupational safety and security for the employee, with the necessity that these jobs take into account compliance with the prevailing rules and laws, and also by caring for the community and suppliers, as these parties together are considered vital factors for the success of the strategy (Goldsmith et al., 2002, 22).
Achieving environmental goals has a positive impact on one or more of the balanced scorecard perspectives, as environmental efficiency management is a two-pronged task, consisting of achieving the announced environmental goal and achieving economic benefits, whether financial or non-financial (Chenai, 2012, 354).
The environmental dimension is one of the dimensions that fall on the shoulders of contemporary business organizations as part of their responsibility towards society. It focuses on the processes of applying knowledge related to environmental protection, and includes analyzing the effects of their activities and operations on the surrounding environment and identifying these effects in a way that ensures that the organization bears them and protects the environment. There are internal and external reasons that push organizations to apply this dimension, as internal reasons include: achieving marketing advantages and financial savings, reducing costs, and increasing cooperation with government and regulatory legislation. External reasons include: protecting the organization from government violations, and spreading environmental awareness among customers, shareholders, borrowers, and contractors (Falaq, 2019, 110-113).
When applying performance measures, the approved performance measurement processes must shed light on the organization's environment, which consists of the internal and external parties with which the organization works (Muhammad, 2014, 258). The environmental dimension provides information to the organization about the boundaries that separate it from its environment, and about the elements that operate within it, represented by the membership of individuals, which must be clear since these individuals are bound by employment contracts in exchange for their contributions to the organization and their obtaining a financial return, pride, or any other gains. The environmental dimension also provides information about the parties that govern the external environment in which the organization operates (Al-Salem, 2018, 19).
The Relationship Between e-HRM and OP.
Some researchers have tested the impact of E-HRM practices on OP, such as the study of Al-Hassan and Al-Saleem (2023), which aimed to identify the impact of E-HRM practices on improving performance. The study concluded that there is a statistically significant impact of using E-HRM practices in improving performance, as it is possible to benefit from E-HRM practices to create a positive work environment, achieve institutional excellence, and work on conducting continuous evaluation to achieve quality performance.
The study of Saraa (2023), which aimed to reveal the role of electronic management in balanced strategic performance through human resource development. The study concluded that there is a positive direct relationship between electronic management and human resource development, as well as a positive direct relationship between electronic management and strategic performance, as it is necessary to provide the requirements of electronic management and attention to human resource development and attention to strategic performance.
As shown by the study of Masoudi and Fattah (2021), which aimed to identify e-HRM practices in improving OP, the study concluded that there is a significant relationship between E-HRM practices and OP, as to increase the organization's response to environmental changes, attention must be paid to creative ideas and developing work methods.
As for the study of Situmorang (2024), it aimed to identify and analyze the impact of E-HRM on OP, and the study concluded that E-HRM has a positive impact on improving OP, and that the presence of an e-HRM system empowers employees and thus increases their productivity through intensive training and increases cooperation between teams.
In another study conducted by Khammadee (2023), its results indicated a positive relationship between E-HRM practices and OP, as human resource management practices represented in (electronic recruitment, electronic selection, electronic training and development, electronic compensation, electronic performance appraisal, and electronic communication) have a major role in OP.
Finally, the study of Obama et al. (2020) which aimed to identify the impact of E-HRM practices on OP. The study concluded that there is a clear impact of E-HRM practices on OP, as focusing on E-HRM practices leads to improving the effectiveness of OP.
Study Hypotheses
Based on the study problem and its questions, the study hypotheses can be determined as follows:
H1: There is a significant impact of E-HRM on OP of Jordanian Islamic banks.
H2: There is a significant impact of E-HRM on financial dimension of Jordanian Islamic banks.
H3: There is a significant impact of E-HRM on customer dimension of Jordanian Islamic banks.
H4: There is a significant impact of E-HRM on internal operations dimension of Jordanian Islamic banks.
H5: There is a significant impact of E-HRM on learning and growth dimension of Jordanian Islamic banks.
H6: There is a significant impact of E-HRM on environmental dimension of Jordanian Islamic banks.
Data Collection
The study population consists of all managers in top and middle management at Jordanian Islamic banks, which number (3) banks, and the number of managers in them reached (266) managers. The researchers relied on a comprehensive survey strategy where all members of the study population were studied, which consists of all managers in Jordanian Islamic banks, which number (262) managers. An electronic questionnaire was distributed to the managers of the study population and 155 valid responses were obtained for statistical analysis.
Study Tool
The study tool was represented by the questionnaire that the researchers developed in accordance with the nature of the study and its variables. The questionnaire contained the following parts:
Part one: Contains demographic variables for the study population members, including: sex, age, education, and experience.
Part two: Includes items that measure the independent variable represented by E-HRM in Jordanian Islamic banks, which includes the following dimensions: e-staffing, e-training, e-performance appraisal, and e-compensation.
Part three: It contains the items that measure the dependent variable, which is OP, which includes the following dimensions: financial dimension, customer dimension, internal operations dimension, learning and growth dimension, and environmental dimension.
Table 1 indicates that the study sample was mostly male 64.5%. As for the age group, the majority of the sample was between 30 and less than 40 years old 48.4%. The majority of the sample members held bachelor’s degree 52.3%. In terms of practical experience, the percentage was close, but the largest was less than 10 years 38.7%.
| Table 1 Demographic Characteristics | ||
| Variable | Frequency | Percentage |
| Sex | ||
| Male | 100 | 64.5 |
| Female | 55 | 35.5 |
| Age | ||
| Less than 30 | 30 | 19.4 |
| 30- less than 40 | 75 | 48.4 |
| 40 - less than 50 | 30 | 19.4 |
| 50 and more | 20 | 12.8 |
| Education | ||
| Diploma | 26 | 16.8 |
| Bachelor's | 81 | 52.3 |
| Master's | 39 | 25.2 |
| PhD | 9 | 5.7 |
| Experience | ||
| less than 10 | 60 | 38.7 |
| 10- less than 15 | 38 | 24.5 |
| 15 and more | 57 | 36.8 |
Looking at Table 2, which concerns the values of the mean and standard deviation of the items of the dimensions of the study variables, it became clear that the means of all dimensions of E-HRM were high, but the items of the dimensions of e-staffing and e-compensation were the highest with a high mean of 4.03 for both dimensions and a standard deviation of 0.49, 0.42 respectively. As for the dimensions of OP, the values of the mean of all dimensions were high, but the items of the financial dimension were the highest compared to the other dimensions with a mean of 4.06 and a standard deviation of 0.40.
| Table 2 Descriptive Statistics | |||
| Dimension | Items | Mean | Std. deviation |
| E-Staffing | 5 | 4.03 | 0.49 |
| E-Training | 5 | 3.98 | 0.48 |
| E-Performance appraisal | 5 | 4 | 0.45 |
| E-Compensation | 5 | 4.03 | 0.42 |
| Financial dimension | 5 | 4.06 | 0.4 |
| Customer dimension | 5 | 4.01 | 0.47 |
| Internal operations dimension | 5 | 3.99 | 0.49 |
It is noted from the information in Table 3, which includes the results of the H1 test, that there is a significant impact of E-HRM on OP, as the value of R2=0.65 and the value of F=70.03, with a significance level of Sig.=0.00, which means that E-HRM explains 65% of the variance in OP. With regard to the significance of the dimensions of E-HRM and the extent of their significance on OP, the information in Table 3 indicated that three of the dimensions were significant, namely: e-training, e-performance appraisal, and e-compensation, while e-staffing was not significant.
| Table 3 Impact of E-HRM on OP | |||
| Variable | B | T | Sig. |
| E-Staffing | 0.06 | 1.25 | 0.22 |
| E-Training | 0.25 | 4.62 | 0 |
| E-Performance appraisal | 0.27 | 4.81 | 0 |
| E-Compensation | 0.23 | 3.57 | 0 |
| R2 =0.65 | F=70.03 | Sig.=0.00 | |
H2, H3, H4, H5, and H6 were tested using simple linear regression coefficient. Table 4 shows the results of testing H2, which includes the impact of E-HRM on financial dimension. The results showed that there is a significant impact of E-HRM on the financial dimension with an explanation rate of 38%.
| Table 4 Impact of E-HRM on Financial Dimension | |||
| R2 | B | F | Sig. |
| 0.38 | 0.65 | 93.89 | 0 |
Table 5 shows the results of testing H3, which includes the impact of E-HRM on customer dimension. The results showed that there is a significant impact of E-HRM on customer dimension with an explanation rate of 45%.
| Table 5 Impact of E-HRM on Customer Dimension | |||
| R2 | B | F | Sig. |
| 0. 45 | 0.83 | 125.27 | 0 |
Table 6 shows the results of testing H4, which includes the impact of E-HRM on internal operations dimension. The results showed that there is a significant impact of E-HRM on internal operations dimension with an explanation rate of 55%.
| Table 6 Impact of E-HRM on Internal Operations Dimension. | |||
| R2 | B | F | Sig. |
| 0.55 | 0.96 | 185.29 | 0 |
Table 7 shows the results of testing H5, which includes the impact of E-HRM on learning and growth dimension. The results showed that there is a significant impact of E-HRM on learning and growth dimension with an explanation rate of 38%.
| Table 7 Impact of E-HRM on Learning and Growth Dimension | |||
| R2 | B | F | Sig. |
| 0.38 | 0.76 | 93.16 | 0 |
Table 8 shows the results of testing H6, which includes the impact of E-HRM on environmental dimension. The results showed that there is a significant impact of E-HRM on Environmental dimension with an explanation rate of 38%.
| Table 8 Impact of E-HRM on environmental dimension | |||
| R2 | B | F | Sig. |
| 0.38 | 0.82 | 91.83 | 0 |
This study focused on testing the impact of E-HRM on OP in Jordanian Islamic Banks. Study results showed that there is a high level of application of E-HRM. Banks rely on electronic recruitment, selection is done electronically, and so is training, as banks rely on technology and communication networks to train their employees, and the same thing with regard to performance evaluation, which is done electronically, salaries and rewards are also electronic. With regard to organizational performance. Study results showed that Islamic banks enjoy high performance, especially in financial and environmental aspects, as they have plans to manage their financial resource, and they also enter into investment projects to increase their financial revenues. Banks clearly take into account the environmental aspect in their work, in addition to their interest in their customers, learning and growth, and their internal operations in a high manner.
Study results indicated there is a clear significant approval of E-HRM on OP, as three dimensions contributed to this impact, namely: electronic training, electronic performance appraisal, and electronic compensation. This means that when banks manage their human resources electronically, such as training, for example, this gives employees sufficient flexibility to choose the appropriate time for training. Similarly, for electronic performance appraisal, employees feel fair in evaluation process, and so on for electronic compensations, which save a lot of employees' time in trying to obtain their financial dues. All of this is positively reflected in employees' focus on their tasks, which helps in rationalizing the bank's financial spending, meeting customers' needs, communicating with them, solving their problems, and providing them with appropriate support, in addition to their efforts to improve the quality of service provided to customers and their commitment to the regulations adopted by the bank.
Study results showed that E-HRM has a significant impact on all dimensions of organizational performance of Jordanian Islamic Banks, whether in terms of the financial dimension, customers, internal operations, learning and growth, or environmental dimension.
• Enhancing e-training practices for employees, due to its clear impact on OP by sending employees to study in their field of specialization, and organizing more e-training courses.
• Enhancing learning and growth in banks, by providing sustainable development opportunities for employees, participating in workshops, building a competitive environment that encourages employees to develop professionally, and involving employees in training courses to develop their skills.
• Enhancing the internal operations of banks, by applying standards to improve the quality of financial services, supporting functional relations between various administrative units, working to measure the extent of employees’ commitment to the regulations approved by the bank, updating the organizational structures of banks, seeking institutional accreditation, and adopting electronic systems in completing work.
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