E-HRM
Encyclopedia
E-HRM is the application of information technology
for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.
E-HRM is not the same as HRIS (Human resource information system) which refers to ICT systems used within HR departments. Nor is it the same as V-HRM or Virtual HRM - which is defined by Lepak and Snell as "...a network-based structure built on partnerships and typically mediated by information technologies to help the organization acquire, develop, and deploy intellectual capital
."
E-HRM is in essence the devolution of HR functions to management and employees. They access these functions typically via intranet or other web-technology channels. The empowerment of managers and employees to perform certain chosen HR functions relieves the HR department of these tasks, allowing HR staff to focus less on the operational and more on the strategic elements of HR, and allowing organisations to lower HR department staffing levels as the administrative burden is lightened. It is anticipated that, as E-HRM develops and becomes more entrenched in business culture, these changes will become more apparent, but they have yet to be manifested to a significant degree. A 2007 CIPD survey states that "The initial research indicates that much-commented-on development such as shared services
, outsourcing and e-HR have had relatively little impact on costs or staff numbers".
Operational E-HRM is concerned with administrative functions - payroll and employee personal data for example.
Relational E-HRM is concerned with supporting business process
es by means of training, recruitment, performance management
and so forth.
Transformational E-HRM is concerned with strategic HR activities such as knowledge management
, strategic re-orientation. An organisation may choose to pursue E-HRM policies from any number of these tiers to achieve their HR goals.
within the HR department, and allow HR to become a strategic partner in achieving organizational goals.
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
for both networking and supporting at least two individual or collective actors in their shared performing of HR activities.
E-HRM is not the same as HRIS (Human resource information system) which refers to ICT systems used within HR departments. Nor is it the same as V-HRM or Virtual HRM - which is defined by Lepak and Snell as "...a network-based structure built on partnerships and typically mediated by information technologies to help the organization acquire, develop, and deploy intellectual capital
Intellectual capital
The value of an enterprise is made of physical assets, various financial assets and, finally, intangible assets, i.e., intellectual capital . The term intellectual capital conventionally refers to the difference in value between tangible assets and market value. ....
."
E-HRM is in essence the devolution of HR functions to management and employees. They access these functions typically via intranet or other web-technology channels. The empowerment of managers and employees to perform certain chosen HR functions relieves the HR department of these tasks, allowing HR staff to focus less on the operational and more on the strategic elements of HR, and allowing organisations to lower HR department staffing levels as the administrative burden is lightened. It is anticipated that, as E-HRM develops and becomes more entrenched in business culture, these changes will become more apparent, but they have yet to be manifested to a significant degree. A 2007 CIPD survey states that "The initial research indicates that much-commented-on development such as shared services
Shared services
Shared services refers to the provision of a service by one part of an organization or group where that service had previously been found in more than one part of the organization or group. Thus the funding and resourcing of the service is shared and the providing department effectively becomes an...
, outsourcing and e-HR have had relatively little impact on costs or staff numbers".
Types
There are three types of E-HRM. These are described respectively as Operational, Relational and Transformational.Operational E-HRM is concerned with administrative functions - payroll and employee personal data for example.
Relational E-HRM is concerned with supporting business process
Business process
A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product for a particular customer or customers...
es by means of training, recruitment, performance management
Performance management
Performance management includes activities that ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many...
and so forth.
Transformational E-HRM is concerned with strategic HR activities such as knowledge management
Knowledge management
Knowledge management comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable adoption of insights and experiences...
, strategic re-orientation. An organisation may choose to pursue E-HRM policies from any number of these tiers to achieve their HR goals.
Goals
E-HRM is seen as offering the potential to improve services to HR department clients (both employees and management), improve efficiency and cost effectivenessCost-effectiveness
Cost-effectiveness analysis is a form of economic analysis that compares the relative costs and outcomes of two or more courses of action. Cost-effectiveness analysis is distinct from cost-benefit analysis, which assigns a monetary value to the measure of effect...
within the HR department, and allow HR to become a strategic partner in achieving organizational goals.