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THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON

HUMAN RESOURCES

Conference Paper · January 2016

DOI: 10.15308/Sinteza-2016-369-375

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 SINTEZA 2016
INTERNATIONAL SCIENTIFIC CONFERENCE ON ICT AND E-BUSINESS RELATED RESEARCH

E-BUSINESS

THE IMPACT OF INFORMATION AND COMMUNICATION

TECHNOLOGY ON HUMAN RESOURCES

Abstract:
Snežana Lj. Lazarević,
Information and communication technology (ICT) has penetrated all the
Jelena M. Lukić areas of our lives and work and has become their integral part. The success
of modern organizations, regardless of their size and activity, is increasingly
Singidunum University, becoming molded by ICT. Thereby, numerous researches have attempted to
Faculty of Physical Culture and Sports identify what determines the success of using this technology. The conclusion
is that the employees, as the most important resource of every organization,
Management,
along with human knowledge, skills, potentials and abilities, are one of the
Belgrade, Serbia
crucial factors which determine the success of ICT application. The subject
of this paper is the analysis of the impact of contemporary ICT on human
resources. Along with the positive effects, the paper also presents negative
implications of ICT on employees, which have started to appear in practice.
Key words:
human resources, information and communication technologies,
employee knowledge and skills.

1. INTRODUCTION

One of the main change in organizations over the last couple of years
is the growing use of information and communication technology (herein-
after ICT) [1]. Corroborating this is the fact that until recently, managers
took no notice of decisions about introducing and applying ICT, while
today this is not viable [2]. Until the 1980s, the primary role of technology
was reflected in the automatization of business processes and reduction
of their execution time. In the last decade of the 20th and during the first
two decades of the 21st century, the impact of ICT, as a significant factor
for designing an organization, has become the fundamental topic in both
managerial and ICT literature [3, 4]. Research has shown that ICT has
generated new competencies, positions as well as a new nomenclature
of positions [6]. Consequently, organizations are faced with numerous
challenges and issues regarding the way of applying contemporary ICT,
while the greatest changes are in the human resources (hereinafter: HR)
area, that is, to be handled by the employees working with new technolo-
Correspondence: gies. Thus, the topic of this paper is to present the significance of ICT
Snežana Lj. Lazarević for an organization, and to indicate the role and significance of HR in its
application. Along with the advantages, the paper also points to the key
e-mail: disadvantages, that is, the negative impact which ICT has on employees,
[email protected] which is increasingly more noticeable in practice.
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DOI: 10.15308/Sinteza-2016-369-375
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INTERNATIONAL SCIENTIFIC CONFERENCE ON ICT AND E-BUSINESS RELATED RESEARCH

2. THE SIGNIFICANCE OF ICT FOR attention of the top management. In the organizations
CONTEMPORARY ORGANIZATIONS in which ICT has an essential relevance for the current
business processes and activities but the impact on the
strategic position of the organization is still not visible,
With the mass recognizing of the significance of
its activity is of a factory nature. However, in the organi-
information and communication technology by organiza-
zations in which ICT is considered to be crucial for the
tions in the last few decades, there increasingly appears
future survival and growth of the organization, it has the
the question whether ICT really transforms organizations
features of a driving force. The greatest impact of ICT is
and in which way [7]. Many people see in ICT a “magic
seen when the functioning and survival of an organiza-
wand” which can solve all the problems of an organiza-
tion is affected by its application, due to which ICT is
tion, overlooking the fact that the key to success is in total
considered a strategic resource and an integral part of
organizational change [8], that is, in a new organizational
the organization [10]. ICT has a strategic significance
design which would enable using all ICT potential ad-
due to numerous indirect effects embodied in new pos-
vantages [9]. Numerous research has confirmed that it
sibilities. The organizations which are aware and react to
is necessary to adapt the design of the organization, i.e..,
these possibilities ahead of others can obtain a significant
its strategy, structure, processes, culture and HR, for suc-
advantage. In order to achieve this, organizations must
cessful application of technology [4]. Also, it is important
carry out innovations in business practices or else, if they
that the organization has the developed and informed
mechanically implement technology without making
work environment which represents a good technological
changes in the existing practices and processes, their
support for redesigning work, business and information
investment will be ineffective [11].
processes (workflow management) [5]. Through time
it is shown that one of the key factors which determine The influences of ICT on an organization are numer-
the success of applying ICT are human resources, that is, ous and can be seen on the operational level, the organi-
knowledge, skills and abilities of employees [20, 21]. In zation itself and business strategies [12]. The impact of
order to perceive the significance of ICT for the organiza- ICT on the operational level is reflected on the products
tion, it is useful to examine Table I which considers the and services which increasingly obtain the element of
strategic impact of the portfolio development by applying information, markets which become fluid categories and
ICT and its strategic impact on the existing operating the economy of production which is characterized by
systems [10]. changes in the planned structure of costs. On the level
of the organization, the impact of ICT is reflected in the
influence of the purchasers (transferring of costs and
Strategic impact on the consumer information); the influence of the suppliers
development portfolio by
by reducing their powers (by undermining or partition);
applying ICT
substitution of products/services through numerous inno-
WEAK STRONG vations (new products and value adding); the appearance
of new competition via creating or destroying obstacles for
Strategic market entry; rivalry through changing its basis (competi-
impact WEAK Support Reversal
tion or cooperation). The impact of ICT on the level of
on the
the business strategy is reflected through cost efficiency,
existing
differentiation of product and focus.
operating STRONG Factory Strategic
systems The process of formulating a business strategy re-
Table I. ICT strategic network quires taking into consideration plentiful information
Source: Adapted according to McFarlan F. W., and McKenney J. L. from different sources. The data which has to be mainly
(1983). Corporate Information System Management: issues facing considered are data of purchasers, regulations, data on
senior executives. Homewood: Dow Jones – Irwin.
competitors, inputs, needs of the stakeholders, limits of
resources, and trends in their given branch. Organizations
Within the organizations where ICT has a minor in- must be aware that all the collected data is correlated
fluence or it is likely that it will have a minor influence and they need to schedule their processing [13]. Great
in the future, its key activity is in supporting the exist- support can be found in the use of ICT considering that
ing business processes and activities which requires an its primary role is to improve the collection, processing
average or below average investment and intermittent and exchange of information.
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The research of ICT impact on the competitve ad- acquiring new knowledge and skills through professional
vantage of the organization started in the 1980s [14]. training by applying e-learning and computer simula-
The widely accepted approach is that the application of tions – these are just some of the forms of HRM activities
ICT can lead to costs reduction, time reduction, the ap- which have undergone transformations by applying ICT.
pearance of new channels of distribution, differentiating Table II shows some of the technologies and their impact
of products and services, as well as better understanding on HRM activities.
of purchasers’ needs and desires [15]. Along with this,
organizations can acquire numerous other advantages
as ICT enables the following: collecting and processing Technology Impact on HRM
of information at a significantly higher speed than in the
past; making information accessible to all employees; Employees can independently up-
enabling quicker access to information; stimulating the Web portals date their data, follow and manage
their benefits package.
participation of staff in sharing and applying information
and using information to adapt to the environment in a Mobile web and
suitable manner [1]. Used to help employees access the
wireless access to
organization’s HR activities.
It is very important for the organization to estab- the Internet
lish an ICT strategy which represents a set of decisions
Software for fol- Enables following employees to use
jointly brought by ICT and business management and
lowing activities the Internet for private purposes or
which support and enable the realization of business on the Internet monitors their work performance.
strategies [16]. ICT strategy, along with the description
of technology, must also include the connections and Assists HRM in monitoring HR
Data storage and
relationships between technology and business activi- systems and keep data accurate and
analytical software
ties of the organization [18]. Thereby, it is obvious that updated.
formulated ICT strategy must be harmonized with the Table II. The impact of ICT on HRM activities
business strategy [17] and that the implemented ICT ap- Source: Adapted according to Dessler, G. (2007). Human Resource
plications and infrastructure must support the strategic Management. New Jersey: Prentice Hall.
aims of the organization [19].
Certain authors stress that “technology was never a
3. THE IMPACT OF ICT scarce resource” but rather a collection of managerial
ON HUMAN RESOURCES abilities needed to create a new value by applying this
technology [24, p. 14]. Any organization which imple-
ments new technologies and new work processes must
Contemporary organizations base their business suc-
cess and competitive advantage on the strategic manage- also have employees who can use them [25]. On the other
ment of human resources. In that sense, it is noticeable hand, some consider that contemporary ICT will in the
that ICT turns out to be a strategic partner of human future lead to a radical work transformation and that the
resource management (hereinafter: HRM), and the lev- principle “I think, therefore, I produce” will prevail [26, p.
el of acceptance and implementation determines the 382], and that those employees with no ICT skills cannot
structure of the e–HRM system. The application of the expect respect from colleagues and supervisors [27, 28].
e-HRM concept implies a change in HRM activities [22], Also, with the influence of ICT, labor will become largely
that is, with the development and introducing of new orientated towards teamwork, an increase of goods and
technologies in the organization, there occur relevant services quality, meeting set deadlines, independence
implications on HRM applied policies and practice in of staff, and a higher level of individual as well as team
the organization. HRM activities such as planning hu- responsibility.
man resources (through planning supply and demand) Research of the impact of technology on employees
by applying contemporary quantitative methods and was carried out on various levels, starting from the entire
information systems, recruiting and selection of potential organization, work groups and the level of the individuals.
candidates via the Internet, social networks, the intranet On the macro level, the key change was in the fact that top
and other (e-recruiting and e-selection), change of the management came from technical science backgrounds or
nature of work – a more extensive designing of new jobs had substantial ICT skills [29] in contrast to the previous
and redesigning existing ones, introducing new jobs, years, when social science degrees prevailed. A new work
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position is formed in the organizations –Chief Informa- The expression “infoworker,” put forward in 1957,
tion Officer (CIO), with the role of correctly implement- underscored that in the future those employees who can
ing ICT within an organization [19]. ICT has a large create new values for an organization based on informa-
impact on the professional commitments of managers tion would prosper [35], and today it is experiencing a
by making some routine and simple decisions automatic, real renaissance. The prediction is that by 2020, over 85%
enabling the delegating of rights and obligations to the of the world population will be working as “infoworkers”
middle and low-level management, whereas decision [36, p. 77], and the hypotheses which [37] put forth in
making can also be made by staff not in managerial posi- 1988 that employees will be forced to develop new skills
tions. Many managers claim that ICT has enabled them and knowledge in order to work with new technologies
to leave the office and do field work, and that they have as they imply a new way of thinking are totally confirmed
more time for activity planning [29]. Along with this, ICT today. Knowledge, which is increasingly permeating tech-
enables employees at all hierarchical levels to access the nological achievements, has replaced physical labor as
information needed for a more efficient planning process, a key component of economic development [38], while
decision making, coordination and control [1]. investing in human resources, human knowledge, skills
ICT is a significant challenge for employees [30], but and competencies is considered a key determinant of
they are the ones who to a large extent determine the success and gaining a competitive advantage.
destiny of ICT within an organization [31]. Primarily,
what is expected from them is a high level of educa- 4. NEGATIVE IMPACTS OF ICT
tion which will help to acquire technical skills but also
ON HUMAN RESOURCES
business knowledge. Employees must have the abilities
and motivation for continuous learning and knowledge
acquisition as well as a high degree of self-control, vari- Certain weaknesses in ICT use have started to ap-
ous interpersonal knowledge and skills and the analytical pear over time, along with numerous advantages. These
approach to problem solving. The additional challenges weaknesses can be viewed from the aspect of technology,
appear from the following facts: 1) new ICT possibili- information security and work conditions [39]. The key
ties grow exponentially, something that human abilities negative consequences for employees are reflected via the
cannot follow; 2) human capital and the labor market are influence of ICT on 5the a work environment. The ICT
specific as they consist of individuals who have expecta- work environment may cause alienation and frustration
tions, needs and desires; 3) ICT experts have different of employees, as well as anxiety, stress, fear of job loss,
motivation factors and needs in comparison with other and similar.
experts [32]. Many employees who use ICT to a large extent in their
Along with the fact that ICT is necessary for the func- work place may undergo a loss of identity and the effects
tioning of any organization, research has shown that in of alienation due to a specific feature of ICT – a lack of
practice ICT has a positive impact on employee produc- physical contact. Communication is carried out via e-mail
tivity, as well as satisfaction, efficiency, autonomy and without physical presence, and gives no possibility of
flexibility [33]. viewing all the elements of non-verbal communication,
One of the most significant changes is that employ- gesticulation, or perceiving the tone of voice [1]. The re-
ment is not fixed to a certain place and time as ICT has action of the collocutor is unspecified until the message
enabled the occurrence of virtual organizations and the is answered, and even then there is no assurance that
self-styled organizations without borders. Employees words have been chosen carefully and that the message
can work from anywhere where there is a telephone, fax replicates the essence [45].
machine, e-mail and Internet access [33] and the key Information technology and the Internet enable em-
positive effects for the employees are time free from com- ployees to be mobile, to work with co-workers from a
muting, as well as a greater freedom in organizing work distance and in all time zones, to do business in various
time and balancing private lives and business careers. forms and outside the traditional office environment
Also, there are some negative effects of working from [40]. In virtual organizations, employees are geographi-
home, such as the impossibility of quality assessment of cally dislocated and work from their homes without any
staff performance, a feeling of isolation due to the lack physical contact, often worried that they are less valued
of physical contact and no development of loyalty and and appreciated, that is, that they are “out of sight, out of
identification with the given organization [34]. mind” [41, p. 19]. Numerous research regarding those who
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work from home (in virtual organizations) haa indicated 5. CONCLUSION

some of the aspects of the negative mindset which can be
encountered. Primarily, these are the feelings of isolation,
The world around us has been changing lately due
a lack of appreciation and respect, non-inclusion in all
to the effect of ICT. It is very likely that in the following
relevant decisions, difficulties in keeping step with the
decades ICT will have a great impact on all areas of life
changes in the organization as well as receiving feedback
and work. Contemporary organizations are increasingly
in real time.
applying ICT and finding ways to acquire a competitive
Information anxiety represents the frustration of
advantage. The actual application of ICT requires nu-
employees due to impossibility to keep pace with the
merous changes in human resources. One of the most
enormous amounts of data. The human brain has a lim-
significant factors thet determines the success of using
ited capacity for memorizing, processing and applying
ICT are human resources, that is, knowledge, skills and
information – psychologists claim that individuals cannot
abilities of employees. Principally, analogously with the
work concurrently with more than 5 to 9 information
development and introduction of new technologies in
segments [13, p. 8]. Computers and ICT have signifi-
organizations, there is a need for new work places, that is,
cantly spread the power of information processing, thus
new knowledge and skills. Also, the job descriptions and
enabling organizations to overcome the problem of the
commitments of the employees undergo changes, as they
limitations of the human mind [13], but at the same time
attain a powerful weapon – ICT, which enables working
they have led to information anxiety due to presence of
information from various social networks, smart phones, from everywhere where computers and the Internet are
blogs, and e-mail. Consequently, various health problems available. ICT has intensified employee learning processes
can appear, such as insomnia, insufficient or poor sleep, through various training sessions, retraining, skills and
tension and apprehension, loss of concentration, frequent career development. However, in spite of numerous ad-
headaches, etc. [29]. vantages of ICT application that are primarily reflected in
the advancement of productivity and employee efficiency,
ICT can be important support for an organization’s
some negative aspects have been identified in practice,
downsizing strategy, which has to a large extent impacted
such as alienation, negative psychological influences,
on the eliminating of certain work places and reducing
information anxiety, stress, and fear of job loss. All these
the number of organizational levels. These processes have
influences represent new challenges and tasks for human
caused the loss of some jobs and working positions [42]
resource management.
which is the greatest fear for employees who fear that
they may lose their jobs due to new technologies. On the
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