Strategic HRM
The integration of information technology into the HR development leads to newer capacities for an organization. This includes a definition of the information interface among staffs, an exchange of their contributions and their participation in virtual enterprises (Wang 2005).
Rapid organizational restructuring needs are calling for new ways of HRM to stimulate administrative change. Technology enables HRM to focus more on value addition in its activities for full realization of the business’s strategy (Wang 2005).
Gong and Chow (2010) show that for technology-intensive industries, knowledge and skills embodied in human capital directly raise productivity. Their research supports the need to integrate technological innovation and HRM to achieve directorial performance.
Organizations existing in performance-oriented cultures prefer formal procedures within the HR department. These include standardized selection methods, systematic performance appraisals, official job evaluations and formal recruitment channels (Panayotopoulou, Galanaki & Papalexandris 2010). Companies in such a culture will readily adopt technology to enhance their HRM.
Adoption of technology in HRM practices depends on the success of HRIS, HRM department sizes and the resources used to train employees to increase a firm’s performance (Panayotopoulou, Galanaki & Papalexandris 2010).
Institutes operating in knowledge-intensive industries require technological innovation, which is critical for responding to constant changes in market conditions. They need to acquire new knowledge, and have to exploit all their resources and capabilities.
The organization’s human-resource accumulates and embodies much of the knowledge required to remain competitive. For these firms, it is crucial to advance their HRM capability to improve their technological uniqueness (Gong & Chow 2010).
Role of Technology in Serving HRM
The role of HRM is to nature long-term social capital in the organization. Technology employed by the HRM should ensure that trust and sense of reciprocity exists to maintain networking for unrestricted capital progression. Technology could serve two purposes in HRM, and the conceivable outcomes depend on the overall aim of the business.
First, it can make it possible to increase the work hours in a day. Second, it can transform traditional work environments and make them flexible, thus liberating employees (Porter & Kakabadse 2006).
Technology allows HRM to enhance its personnel strategy. Here, HR practices facilitate employee high performance values, teamwork attitude and leadership skills. In addition, the HR department enhances cross-functional and cross-cultural competencies to bring a greater compatibility in the work teams within the organization.
Technological processes assist HRM, in this case, by facilitating or availing the use of virtual team networks and an electronic human-resource distributive design (Wang 2005).
The present information era produces a continuous urgency to generate and transport data in easier forms (Chandra 2009). This leads to an increase in the expectations for employees to use the data faster.
Businesses having a short-term goal of increasing shareholder value focus on lean and mean structures. The structures reward workers who have extra job hours and are always connected to the work environment through information and communication technology (Porter & Kakabadse 2006).
Human Resource Information System
Electronic-HRM (e-HRM) is a universal term refereeing to the integration methods of HRM and IT to create value for employees and managers (Panayotopoulou, Galanaki & Papalexandris 2010). There are front-end and back-end e-HRM systems.
The former connect different actors in the organization. They are web-based and include HR portals, self-service systems and interactive voice response systems. They form the core category of e-HRM. On the other hand, back-end systems include HR data warehouses and HR modules of Enterprise Resource Planning (ERP).
These are used to store, process and retrieve data. The back-end e-HRM is also termed as Human Resource Information System (HRIS) (Panayotopoulou, Galanaki & Papalexandris 2010)
Human Resource Information Systems (HRIS) offer seemingly endless possibilities for integration. Over the years, the HRIS market has grown between large and small businesses. HRIS software vendors are offering flexile, low cost, generic software, which make it possible for small organizations to implement HRIS.
However, full-scale implementation of the system remains in the prevalence of large establishments (Ball 2001). HRIS information helps the administration to reduce costs and time (Chandra 2009).
Additionally, it aids analytical decision-making in the institute. HRIS sophistication occurs when it encompasses recruitment and selection, training and development, or HR planning and information management.
Newer establishments prefer low-cost options of HRIS and where possible, settle on in-house database development options (Ball 2001). The greatest benefit of HRIS comes when the system supports decision-making rather than administrative tasks.
To realize additional benefits, companies choose to purchase additional modules to add to their installations. Overall, most HRIS additions involve capacities to manage time and attendance (Ball 2001).
Company Example
Gamma is an example of an international company using HRIS. It employs 3000 health care professionals and made major changes to its HRIS to provide support and service to its senior management.
The company reduced costs and met its quality expectations. This was possible after focusing on three key areas of quality performance, IT infrastructure and management of information (Rodger et al. 1998).
The HRIS is the core of HR function at Gamma. Before the reengineering, the HRIS was a patchwork of applications offering basic database functions. It has become a collaboration tool for solutions in decision-making.
The innovative HRIS enables human resource developers to play a tactical role in the institute. It offers data conversion to new HR software and an improvement to report validations. It could offer file layout options for both old and new data, depending on the needs of the user.
It has better support for open-ended comments and contains fields to capture information by employee, department, position and facility affiliation. As a result, there is no need for separate databases.
The HRIS offers an integrated and sophisticated method of understanding internal customers and staffs (Rodger et al. 1998). It links information systems at Gamma using information technology.
Writer’s Opinion
Researching and writing the essay on the role of technology in linking HRM with organization goals was, eye opening in various ways. Previously, I knew little about the importance of a HRIS in simplifying information flow from one department to another.
Findings on the research demonstrate that the quality of the HRIS is as important as the system itself. I realized this when looking at the case of Gamma, discussed above. As far as human capital goes, having a vibrant HRM system ensures the organizations goals and visions remain within reach.
Refusing to adopt technology to streamline and enhance the capacities of HRM, leads to an erosion of the company’s competitive advantage. The subject of this essay allowed me to understand the importance of organization’s vision in leading the implementation of HRIS.
The benefits of HRIS to an organization are immense. I think even small companies should embrace comprehensive HRIS to improve their HRM and human capital.
Conclusion
The collaboration offered by HRIS enhances knowledge-related performance of an institution. Adoption of technology into HR practices also allows the firm to become adaptive and responsive to environmental changes (Gong & Chow 2010).
The adoption of HRIS depends on the technological readiness of the establishment and its environment. Increasing the size of the business permits the adoption of high-tech innovations to increase process automation and efficiency.
Moreover, high-performing organizations place more emphasis on putting resources to support HRM policies, and they are more likely to embrace HRIS. The diverse ways of implementing HRIS and its influence and dependence on company leadership made this essay interesting to research and write.
Reference List
Ball, KS 2001, ‘The use of human resource information systems: a survey’, Personnel Review, vol 30, no. 6, pp. 677-693, via EBSCOhost database.
Chandra, RP 2009, ‘Role of HRIS in improving mordern HR operations’, Advances in management, vol 2, no. 12, pp. 21-24, via Emerald Insight database.
Gong, Y & Chow, I 2010, ‘The linkage of HRM and knowledge-related performance in China’s technology-intensive industries’, The International Journal of Human Resource Management, vol 21, no. 8, pp. 1289-1306, via EBSCOhost database.
Panayotopoulou, L, Galanaki, E & Papalexandris, N 2010, ‘Adoption of electronic systems in HRM: Is national background of the firm relevant?’, New Technology, Work and Empowerment, vol 25, no. 3, pp. 253-269, via EBSCOhost database.
Porter, G & Kakabadse, NK 2006, ‘HRM perspectives on addiction to technology and work’, Journal of Management Development, vol 25, no. 6, pp. 535-560, via Emerald Insight database.
Rodger, JA, Pendharkar, PC, Paper, DJ & Molnar, P 1998, ‘Reengineering the human resource information system at Gamma’, Facilities, vol 16, no. 12/13, pp. 361-365, via Emerald Insight database.
Wang, Z 2005, ‘Organizational effectiveness through technology innovation and HRM strategies’, International Journal of Manpower, vol 26, no. 6, pp. 481-487, via EBSCOhost database.