Challenges and Issues of E-HRM Practices in India

Our Heritage ISSN: 0474-9030 Vol-68-Issue-30-February-2020 Challenges and Issues of E-HRM Practices in India Girisha M C1 Dr. K Nagendrababu2 Research Scholar, DOS in Commerce, University of Mysore. Mysuru 1 Associate Professor, Department of Studies in Commerce, University of Mysore, Mysuru 2 Abstract The big trend that is driving the other trends is the disruption of business models. Most of the big business companies are going through reinventing their businesses revolving around digital challenges and change, driven either by competition or an opportunity to improve what they‟re doing. HRM has got prime importance in today‟s business organizations. There is an adequate supply of labor in the labor market, but question arises in terms of „skilled labor‟. Hence, the importance is given to the selection of right employees for the right positions. Organizations are now realizing and focusing on the value of good employees because they make a difference through their job performance. Over the past three decades human resources process and procedure have been supported by everything from file folder of systems to automation, web based technology by using multiple systems and data base to single version. The emergence of internet as widespread means of communication, production and commerce has elevated important parts of the information and communication with knowledge based economy to new economy . The term new economy has been used interchangeably with the term “knowledge economy” this research paper focusing on challenges and issues of E-HRM practices in Indian companies. Introduction The beginning point of this research is the challenge of managing technological change in HR management in organization. Implementation of e- HRM is problematic and situations in which changes undertaken are shifting from conventional method of HR management to e- HRM practices. This is harder for organization and particularly HR managers as well as employees. Here managers are the change agents to prepare for manage the changes in a ways that satisfy the demands of organization and employees. P a g e | 5123 Copyright ⓒ 2019Authors Our Heritage ISSN: 0474-9030 Vol-68-Issue-30-February-2020 How do organization decide about making structured or unstructured technical changes in HR management? How to cope up with the resistance to change? It‟s not new thing about changes in HR practices this increase the attention from researchers and practitioner of HR management. This research focused on understanding the challenges and perception of HR managers and employees regarding e-HRM practices in an organization. According to Ruel, Bondarouk and loosie, E-HRM is a good way of implementing HR strategies, policies, and practices in an organization through continue and directed support by full use of Web technology-based channels and networks. Human resource planning is one of the complex functions in an organization. It is a process of planning for human resources with intellectual skill. Human resource planning may be viewed as forecasting the human resources requirements of the organizations. As HR the human resource planning is based on data relating to human resources, the same should be maintained in a proper manner in the industrial organizations. If the absence of reliable data, it becomes difficult to develop effective human resource plans. Recruitment, selection induction, training and development, performance appraisal rely up on effective human resource management planning This research address two major research questions relevant to organizational change management. What perceptions influence employees to resist to change and support to change? Employees’ reactions to change P a g e | 5124 Copyright ⓒ 2019Authors Our Heritage ISSN: 0474-9030 Vol-68-Issue-30-February-2020 Key differences between HR and e-HRM Face to Face HR (Direct Presence) e-HRM (Mediated Presence) Everyone is equal, everyone is given all the Everyone can access information individually information. Labor force at the company can be ordered into The labor force consists of individuals homogenous groups Here listen to requests, analyses the situation Documented questions and answers, accesable, with HR, make valuable suggestions and everyone can learn. solutions. Distinguishing e-HRM, Virtual HR, Web based HR, HR intranet and HRIS e-HRM e-HRM is the application of Information technology for both networking and supporting in an organization at least two people in their shared performing HR activities. Virtual HR Network based structure built on partnership typically mediated by information technology to help the organization to develop and deploy intellectual capital. Web based HR HRM function being transformed by the Web based function and show HR professionals how to use technologies through Web to offer more services to employees at lower cost. HR intranet Intranet connects many levels inside the organization, its network based protocol belongs to an organization accessible by only insiders, members, employees and authorized person of organization. HRIS Its computerized human resource information system, database, tools, transaction, this is integrated wide network related to HR. P a g e | 5125 Copyright ⓒ 2019Authors Our Heritage ISSN: 0474-9030 Vol-68-Issue-30-February-2020 Need for the study The primary need of this study is to give attention to present human resources management practices with application of ICT, In general the most important question of a research often provide information about overall purpose of the research. Although the purpose is not stable always and can change over time. Since three decades every organization experiencing volatile economic world and faced aggressive global competition, every organizations are force to keep pace with innovative developments in order to survive. Every sector with leading role in economy initiating innovative and creative approaches to sustain economic growth with integration of technology in every aspects in and outside of the organization. This study aims at determine the weather automotive industry integrated with electronic Human resource management. Statement of problem With increased competition in market, there is a need that automotive industries are able to easily and rapidly adapt and adjust to changes as well to gain a competitive advantageous and outcome of changes. Generally, companies integrate technology in their human resources management to increase performance and reduce costs. The bright prospect for HR to add value to organization is playing significant role in implementation of several strategy. Many researchers argued that HR should move to the role of strategic innovative partner in addition to the performing administrative and transactional role. Research Gap The gap in this study identified in the literature is a lack of research in automotive industry in India. Only few conducted on E-HRM implementation in manufacturing and service sectorbanking sector, public and private sector industries, hotel industries, and in different universities. Majority of research study has been conducted to analyze the outcome of e-HRM practices but there is minimal studies on the perception of HR executives and employees in automotive industry. This makes it difficult to analyses issues of causality in the relationship between E-HRM and perceptions of HR executives and employees in automotive industry in Karnataka. As the direction of the relationship depends on the theoretical perspective underlying P a g e | 5126 Copyright ⓒ 2019Authors Our Heritage ISSN: 0474-9030 Vol-68-Issue-30-February-2020 the study design and testing the relationship empirically. Interestingly, as more and more organizations adopt E-HRM and complete their implementation, Objectives of the study 1. To interpret the challenges and barriers impeding (delay) the implementation of E-HRM at automotive industries in India 2. To understand the perception of Employees and HR managers about Implementation of E-HRM. Literature review Extensive research has been done on the topic of e-HRM. The common theme that emerges from the review is that no single theory or approach that defines e-HRM. The review of literature has conducted to generate a theoretical and scientific knowledge about particular phenomenon and results in synthesis of what is known and unknown about the phenomenon. The primary purpose of literature review is to gain a broad background available related to problems in conducting research. Many studies have been conducted from time to time at national and international level to study the various aspects of the e-HRM, HR practices, and evolution of HRIS, HRMS, E-HRM, sophisticated tools for e-HRM. 1. Yogesh Sharma 2005“e-Recruitment: A New Paradigm, Srajan Consultancy Services” revealed in his research study that internet became effective and powerful tools for every one for their disposal. In case of business internet range is very wider and enormous. In case of e-recruitment is simply using tool to hire whom to desire. The conventional process of recruitment consumes time and resources. Online recruitment is just a restricted to specific job and they use internet to receive CVs and transfer to human resource department for further process. By using internet the recruitment became a productive tool for the organization. The effective use of software application and available electronic mode resources led to effective and efficient recruitment process with short period of time and less cost. For employers online recruitment allows for better way of searching candidates than does advertisement in general news papers, resulting in a greater percentage of qualified applicants. 2. Pramila Rao (2006)“The Role of National Culture on E-recruitment in India and Mexico” the researcher states that E-recruitment can either be in the form of corporate or third-party recruiters. Corporate recruiters allow potential job applicants to post their resumes directly on their job sites without using any other intermediaries. Researcher also provided a good perspective on internet usage, internet penetration and role of culture in two leading emerging economies like Mexico and India. E-recruitment brings out P a g e | 5127 Copyright ⓒ 2019Authors Our Heritage ISSN: 0474-9030 Vol-68-Issue-30-February-2020 the cultural importance of a very personalized and collective approach that some national cultures have towards staffing. Internet recruiting will definitely continue to play a very prominent role as the world becomes more digitized. Multinationals are going to rely increasingly on this method of recruitment as it proven to bring high-caliber worldwide talent to your doorstep. Practitioners and researchers would benefit from making a “what if” chart or spreadsheet based on cultural dimensions scores and adaptability to internet usage. This would help identify as to why some countries still prefer a very different approach to staffing. 3. Sandeep Ray Choudhari (2006) “Trends in recruitment of executives in IT sector of India” the author indicated that recruitment practices have undergone several changes from last two decades. This study conducted to find emerging trends in recruitment frameworks with organizational and social perspective. In traditional method of recruitment followed some traditional sources like newspapers, magazine adds, campus drive, recruitment through consultants, it involved considerable costs for the organization. At the same time attrition rate continued uncontrollable. To counter these problems HRM practices changed the journey from traditional method to technological way. Intervention of information technology in HRM practices lifted the organizations and made them to increase competitiveness across the globe. 4. Verma et al., (2010) “The implications of implementing electronic human resource management (EHRM) systems in companies” the authors highlighted on Implications of (e -HRM) Systems in Companies with the objective to identify the challenges to meet implementation and maintenance of eHRM systems and also to offer recommendations for enhancing the effectiveness of e-HRM systems. The study presented a comparative picture between the services Vs. manufacturing sector concerning the adoption of e-HRM systems in Indian companies. The study was confined to the state of Maharashtra, India with a sample size of 1000 companies of the private sector. The research instruments was based on questionnaires and interviews. Researchers found that, the topmost common driver for introducing eHRM systems to companies for both the services and manufacturing groups is to enable HR cost saving and control, reducing time spent on routine administrative tasks by HR staff and reducing paper transactions. 5. S Ganeshan (2010) “A Study on application of electronic human resource management in organizations at Chennai” the aim of the author in his study is to identify the influence of information and communication technology in HRM practices and the impact of factors for the effectiveness of electronic human resource management (E-HRM) practices in the software as well as IT enabled organizations in Chennai. The study focused on six objectives which covers the profile of demographic variables, opinion on E-HRM practices by HR Executives and Non-HR Executives, factors contributing the effectiveness of P a g e | 5128 Copyright ⓒ 2019Authors Our Heritage ISSN: 0474-9030 Vol-68-Issue-30-February-2020 E-HRM and the impact of various factors on the effectiveness of E-HRM. Based on the findings in this research study, suitable recommendations have been given for the improvement of E-HRM as well as updating existing E-HRM practices according to the size and capacity of the organizations and which can be used for further research and implementing E-HRM practices in other sectors of the industries and adopt suitable information and communication technology oriented human resource management practices and strategies in order to tap the untapped industrial sector. 6. Yusuf et al., (2011) “HR roles and e-HRM: Some initial evidence from Malaysia” the study seeks to examine the impact on adoption and usage of HR information system (HRIS) among HR executives and HR professionals worked in companies in Penang, revealed that compatibility and visibility were positively related and complexity was negatively related to extent of use of the HRIS. A preliminary investigation on HR roles and e-HRM, some initial evidence taken from Malaysia to study perceived usefulness, perceived ease of use, and attitude towards using e -HRM among 51 HR professionals. The Study found that the use of e-HRM at work participants indicated that 76 per cent have use e-HRM at work, only 22 per cent have not used e-HRM technology at work ,attitude towards using e-HRM had a strong and positive relation with perceived usefulness. 7. Asha Nagendra et al., 2014“Human Resource Information Systems (HRIS) in HR planning and development in mid to large sized organizations”theauthors highlighted in their research about HR executive‟s efficiency and awareness about technological phenomenon in organization. The research also found that HR executives well aware that they can increase the efficiency of HR planning through Information technology, saving time and cost. If the implemented technological operation it adds strategic value and competitive advantage for documentation and strategic decision purpose. HR executives believed that managers can find detailed training and relevant for the situation in an organization and employees development. Sometime this required subsystem to avoid unnecessary malfunction in the execution and documentation. Organization must synchronize the business function with the relevant information technology. 8. Gani et al., (2017) “e- Human Resource Management (e-HRM)” the study has observed that The integration of information technology and Human resource management turn the systems of management with focused goals of managers and employees of the companies. e- HRM is the process of transmission of digitalized Human Resource information. e- HRM is a technique of executing Human Resource (HR) plans, policies, and practices in an organization. In the present scenario, a number of organizations has replaced the Human Resource Management activities with e- HRM in their business. The process of eHRM has played an efficient role in increasing the overall Human Resource capabilities of management. P a g e | 5129 Copyright ⓒ 2019Authors Our Heritage ISSN: 0474-9030 Vol-68-Issue-30-February-2020 This research paper elaborates on e-HRM in detail on the following aspects: Introduction of e-HRM, Scope of e-HRM, functions of e-HRM, objectives of e- HRM, outcomes of e- HRM. This paper is an attempt to study the e-HRM and its various aspects. Findings and discussion According to literature study about E-HRM in india, the concept of E-HRM is throwing light upon technological advancement in HR practices followed by E-HR , HRIS and other concepts. Gradually this technology eliminating the relationship between HR managers and employees in an organization. 1. More than 95% of the Indian companies purchased software related to E-HRM but majority of the companies fail to adopt 100% E-HRM tools in India. 2. E-HRM technology is very useful for relational concept such as recruitment, selection, training. 3. E-HRM facilitate the quick learning and development for every employees in the company. 4. E-HRM has a positive impact on employee motivation and learning 5. HR managers are not willing to implement E-HRM in a companies. 6. Its observed that the ability of HR managers activities become easy as a result of E-HRM implications. 7. Some small and medium companies not willing to implement E-HRM because more expensive and requires trained employees and HR to operate. 8. Some of the HR practitioners did not have clarity on the E-HRM adoptability. Conclusion E-HRM practices can lead to innumerable efficiency gains if they are utilized effectively. This technological changes can made remarkable strides in Indian companies. Though the companies are employing a basic tools of HR management and applications through digital mode will lead to upgrade their technology by E-HRM. On the other side HR managers are not happy with implementation of electronic mode of transaction with employees. They perceived that electronic mode will erase the human relation in companies and there will be lack of motivation factors. This study provides that E-HRM practices in Indian companies might be slow in application. This shows every employee and HR personnel require proper training about application of E-HRM tools in all the department. P a g e | 5130 Copyright ⓒ 2019Authors Our Heritage ISSN: 0474-9030 Vol-68-Issue-30-February-2020 References [1] Huub J.M. Ruelet,al., (2007), “The contribution of E-HRM to HRM effectiveness. Results from a quantitative study in a Dutch Ministry”, EmployeeRelations, Vol. 29 No. 3, 2007, pp. 280-291 [2] Yogesh Sharma (2005), “e-Recruitment: A New Paradigm, Srajan Consultancy Services”, [email protected]. [3] Pramila Rao (2006), “The Role of National Culture on E-recruitment in India and Mexico”, [email protected]. [4] Verma s., & Gopal R., (2010), “The implications of implementing electronic human resource management (E-HRM) systems in companies” PHD thesis submitted to Dr. D. Y. Patil University, Department of Business Management, Mumbai pp. 168-169. [5] Ganeshan (2010) “A Study on application of electronic human resource management in organizations at chennai . Manonmaniamsundarnar”. University, Tirunelevli, Tamilnadu. [6] Yusuf, Y., Ramayah, T. & Ibrahim, H. 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P a g e | 5131 Copyright ⓒ 2019Authors Our Heritage ISSN: 0474-9030 Vol-68-Issue-30-February-2020 [11] Shilpa V Varma, (2010), “The Implications of Implimentating Electronic Human Resource Management (E-HRM) Systems In Companies”. PadmashreeDr.D.Y.Patil University, Navi Mumbai. [12] Ball, K.S. (2001). “The use of human resource information systems”: a survey. Personnel Review, 30(5/6), 677 P a g e | 5132 Copyright ⓒ 2019Authors