Dec 12, 2015 - To study âRole of Technology for HR Transformation Enabling Higher ... To determine if HR Technology (HRIS, e-HRM, SaaS, Cloud based HR ...
Ashutosh Jani 20132002 December 12, 2015
Working Paper - Role of HR-Technology for HR Transformation Enabling the Higher Organizational Performance (An Journey towards Empirical Study in area of HR Technology, HR Transformation and Organizational Performance in India)
Overview Introduction
Objective Literature Proposition Development
Conceptual Model Conclusion
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INTRODUCTION
Global organizations - striving to meet the unexpected, unpersuaded business challenges
Highly competitive business demands organizations to ready to respond to change rapidly to remain in healthy business and meeting stakeholder’s expectations.
Key important factor - ability of employees to meet the challenges
Key aspect of HR Dept. - developing and enhancing the capability of Human Resources
Emerging Information Technology evolved from traditional Orientation of Administrative Support to more Strategic Role
In the domain of Human Resources, Technology has changed paradigm of basic electronic data processing administrative P&A to sophisticated HRIS
HRIS has started strategically contributing to the business and organization.
Over the period of years researchers have contributed mainly in area of adaptation / application of e-HRM / HRIS. 3
Introduction
Leveraging Information Technology, HR become more Strategic, Flexible, Costefficient (Snell, Stueber, Lepak (2002))
Transformational effect of e-HR on HR (Srivastava & Shaw (2003)) Influence of Technology on future of HRM (Stone et al (2014))
Strategic HR Practices leads performance (Huselid (1995))
to
Over 20 + Years available Literature on HR Technology is mainly focusing on
Organizational Adaption Florkowski (2006))
e-enablement of HR (Bondarouk & Ruël (2005), Strohmeier (2007))
e-HRM Adoption (Lepak & Snell (1998), Strohmeier (2007))
firm
2 separate reviews by Hoobler, Johnson (2004), 1% article in leading HR Journal Strohmeier (2007) identifies only 57 relevant studies in peer reviewed Journals since 1995
(Ball
(2001),
HRM studies are mainly related to
Changing Roles, Functions & Future of HRM
How HRM changes effect the organizations
Technology is hardly discussed in HRM Studies
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OBJECTIVES Key Objective :To study “Role of Technology for HR Transformation Enabling Higher Organization Performance” Key Objective of study further divided into following objectives To determine if HR Technology (HRIS, e-HRM, SaaS, Cloud based HR Applications, HR dominant use of social network (Facebook, Linked-in etc.), mobile technology) significantly increases the HR effectiveness in the organization. To determine if Improved HR effectiveness has significant correlation with HR Transformation. To determine if HR Technology (HRIS, e-HRM, SaaS, Cloud based HR Applications, HR dominant use of social network (Facebook, Linked-in etc.), mobile technology) promotes HR Transformation To determine the significance of effective and Transformed HR for higher organizational performance 5
CONCEPTUALISATION HR Technology
DeSanctis (1986),Tannenbanm(1990), Broderick(1992), Ruel et al (2004), Strohmeier (2007), Kavanagh(2012) has provided different interchangeable definitions of HRIS, e-HR, e-HRM, HR Intranet, Web based HR etc.
“Undergoing some dramatic changes, and technology is propelling it in some entirely new directions, labeled electronic Human Resources Management (eHR)” (Gueutal and Stone, 2005)
Information Technology helps enabling the HRM to transform from the administrative role to eventually the “strategic player” (Fletcher, 2005)
Interesting parallels between the evolution of Information Technology and the development of Human Resources Management have long been observed by scholars like Sleezer, Wentling and Cude (2002)
Lepak and Snell (1998) posited that IT might have operational, relational and transformational effects on HR. Empirical evidence for the achievement of these goals are rare 6
CONCEPTUALISATION HR Effectiveness
HRM effectiveness is often mentioned as HRM contribution to firm performance (for ex., Kane et al, 1999; Ostroff and Bowen, 2000; Wright et al, 2001).
HRM effectiveness is addressed by a great number of studies that strive to demonstrate the value of what HR professionals do for the rest of the organization and how HRM practices are linked to desired organizational outcomes (Huselid, 1995; Boxall and Purcell, 2003; Baron and Kreps, 1999, Wright et al, 2001)
During the past decade the HRM literature made attempts to show that progressive HR practices result in higher firm performance (Wright et al, 2005; Hope Hailey, 2005)
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CONCEPTUALISATION HR Transformation
Ulrich et al (2009) defines “A true HR Transformation is an integrated, aligned, innovative, and business focused approach to redefining how HR work is done within an organization so that it helps the organization deliver on promises made to customers, and other stakeholders.”
Technology helps enabling the HRM to transform from the administrative role, to “polite and police phase”, to “business partner” to “top management with insights”, to eventually the “strategic player” (Fletcher, 2005).
Organizational Performance
Huselid’s (1995) pioneering study has shown that a set of HR practices labelled High Performance Work Systems were related to turnover, accounting profits, and firm market value.
Icchiowski(1990) , Delaney(1990) result of HR Practices on Turnover and Productivity
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Background & Review of Literature
Lit on /Organizational Business Performance
Lit on IS
Lit on High Performance HR Practices
Lit on HR Effectiveness
Lit on HRIS
Lit on HRIS and Managerial Issue Lit. on eHRM
Lit related to HRIS Effectiveness and relevant Studies in India
Lit. on Organization Performance
Lit on Performance Management
Lit with HRIS as Change Agent
Lit. on Impact of HRIS
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Literature Review (Conti..) Sr
Year
Author
Theme
1
2015
Cristina Cabanillas et al.
Specification and automated design-time analysis of the business process human resource perspective
2
2015
Martin Reddington et al.
Electronic HRM in Theory and Practice
3
2014
Khalil Ghazzawi
The Effect of Implementing Technology in HRM on the Level of Employee Motivation
4
2014
Stefan Strohmeier
Research Approaches in e-HRM: Categorization and Analysis
5
2013
Nikhil Kumar
Managerial perceptions of the Impact of HRIS on Organizational Efficiency
6
2012
Normalini Md.
Antecedents and outcomes of human resource information system (HRIS) use in Malaysia
7
2012
Anjali Gupta
Electronic Human Resources Management (eHRM):- Growing Role in Organization
8
2012
Johnson et al.
Moving Beyond Automation:- A Framework & Research Agenda Studying the Role of Information Systems in e-HR
9
2012
S.C.Kundu
Applications of HRIS in Human Resource Management in India: A Study
10
2011
C.Y.Krishna
Assessment of Support & Benefits of HRIS in Medium Scale Textile Industries 10
Literature Review (Conti..) Sr
Year
Author
Theme
11
2011 Cleophus Gaines
Information Systems as a Strategic Partner in Organizational Performance
12
2011 H. Kristl Davison
Friend or Foe? The Promise and Pitfalls of Using Social Networking Sites for HR Decisions
13
2011 Emma Parry and Shaun Tyson
Desired goals and actual outcomes of e-HRM
14
2010 Panayotopoulou et.al
Adaptation of Electronic Systems in HRM:- Is National Background of Firm Relevant?
15
2010 A. Chamaru De Alwis
The Impact Of Electronic Human Resource Management On The Role Of Human Resource Managers
16
2009 Martin Reddington
Reconceptualising absorptive capacity to explain the e-enablement of the HR function (e-HR) in organizations
17
2009 Stefan Strohmeier
Organizational adoption of e-HRM in Europe ,An empirical exploration of major adoption factors
18
2009 Stefan Strohmeier
Concepts of e-HRM consequences: a categorization, review and suggestion
19
2009 T.V. Bondarouk
Electronic Human Resource Management: challenges in the digital era
20
2008 Schuessler, E.
Designing and Implementing e-HRM – a Structuration Approach to Investigating 11 Technological and Organizational Change
Literature Review (Conti..) Sr
Year
Author
Theme
21
2007 Huub Ruël
HRIS An integrated Research Agenda
22
2006 Bradford S. Bell
The Impact of eHR on Professional Competence in HRM:- Implications for the Development of HR Professionals
23
2006 Bondarouk, T
Does e-HRM contribute to HRM Effectiveness? Results from a quantitative study in a Dutch Ministry
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2005 Kristine Dery
Necessary but not sufficient: ERPs and strategic HRM
25
2004 Hal G. Gueutal
The Brave New World of eHR
26
2003 Samir Shrivastava
Liberating HR Through Technology
27
1999 J C Henderson
28
1997 Michael Beer
Strategic Alignment- Leveraging Information Technology for Transforming Organization The Transformation of Human Resources Function :- Resolving the tension between a traditional Administrative and a new Strategic Role
29
1996 Mark A Youndt
Human Resources Management, Manufacturing Strategy, and Firm Performance
30
1986 Gerardine DeSanctis
Human Resource Information Systems: A Current Assessment 12
Overview of Special Issues in peer-reviewed international Journals on e-HRM (2004-2014) Sr.No
1
2
3
4
5
Year
Journal
Special Issue title / focus
Guest Editors
2004
Human Resource Management
e-HR: the intersection of Information Technology and Human Resource Management / a variety of ways in which IT affects the HR profession
2009
The International T. Bondarouk Journal of Human Electronic HRM: challenges in the digital era / a reflection on a two-year and Resource debate after first e-HRM and HRIS conferences H.J.M. Ruël Management
2010
International Journal of Training and Development
Dynamics of e-learning: theoretical and practical perspectives / benefits and limitations of e-learning and blended learning in a business context
2010
International Journal of Technology and Human Interaction
The intersection of IT and workforce management – a maturing research T. Bondarouk field / overview of the recent developments within e-HRM and addressing and methodological issues in e-HRM research H.J.M. Ruël
2010
International Journal of Technology and Human Interaction
Framing e-HRM in a cross-national context / conditions for successful implementation of e-HRM in a global context
J.M. Stanton and M.D. Coovert
T. Bondarouk and H.J.M. Ruël
T. Bondarouk and H.J.M. Ruël 13
Overview of Special Issues in peer-reviewed international Journals on e-HRM (2004-2014) Sr.No
6
7
8
9
10
Year
Journal
Special Issue title / focus
Guest Editors
2012
German Journal of Research in Human Resource Management
Electronic Human Resource Management – transformation of HRM? / S. Strohmeier, building a research framework for cross-cultural and cross-national e-HRM T. Bondarouk, research based on the constructivist approach and U. Konradt
2013
Human Resource Management Review
Emerging issues in theory and research on electronic human resource management (e-HRM) / offering new directions for research on the topic and enhancing effectiveness of e-HRM
D. Stone and J. Dulebohn
2013
European Journal of International Management
e-HRM in a global context: challenges and prospective / institutional and cross-cultural aspects of e-HRM in multinational corporations
H.J.M. Ruël and T. Bondarouk
2013
Journal of Strategic Information Systems
Realizing the strategic potential of e-HRM / explaining limited exploitation of e-HRM by people factors
D. Grant and S. Newell
2014
Employee Relations
HRM in the digital age – digital changes and challenges of the HR profession / denotes along three foci, digital employees, digital work, and digital employee management
S. Strohmeier and E. Parry
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PROPOSITION I. HR TECHNOLOGY PROMOTES HR EFFECTIVENESS
In theory, there is a sound belief that e-HRM should facilitate the role of HR as strategic partner by freeing staff from the burdens of administration towards undertaking critical people management activities (Lepak and Snell, 1998)
Beginning from late 1990s up till now, HRM is said to be “Undergoing some dramatic changes, and technology is propelling it in some entirely new directions, labeled electronic Human Resources Management (eHR)” (Gueutal and Stone, 2005)
Number of other studies of Beer et al (1984), Hendrikson (2003), Ruel et al (2006) supports the relationship between e-HRM , HRIS with HR Effectiveness.
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PROPOSITION II. HR EFFECTIVENESS PROMOTES HR TRANSFORMATION Tansley et al. (2001) contend that technology plays a critical part in driving HR transformation, where technology acts as a stimulus for a fresh approach to Human Resource practices based on improved HR Effectiveness Snell et al (2002), suggests that e-HRM technology is capable of more than simply automating business processes, enabling organizations to become more strategic and flexible as well as cost-efficient, by supporting people management. Several other writers including Davenport (1993), Gourley and Connolly (1996), Hannon et al (1996), Liff (1997), Othman (2003) and Tyson and Selbie (2004) have argued the potential of a shift away from administrative applications towards supporting people management processes hence by improving overall HR effectiveness in organization. Fletcher (2005) observed that with help of technology, HRM personnel is freed from daily routine and tedious work, and thus is able to focus their energy and 16 time towards strategic work which helps enabling HR to Transform
PROPOSITION III. HR TECHNOLOGY ENABLES THE HR TRANSFORMATION
Introduction of HR Technology, often in combination with new HR Delivery Models can transforms HR’s internal operations (CIPD, 2005; Gueutal & Stone, 2005; Martin, 2005). Based on the above literature review and proposition we can defined following conceptual HR Technology Value Chain for HR Transformation.
Common Understanding • • • •
Strategy Goals Processes Policies
Clear Expectations • • • • •
Performance Development Delivery Behavior Competency Required
Build Capability • • • • •
Ease of Access Reduce Redundancy Accuracy Ready Analytics Right and quick decision making based on data • Improves service ability • Reduce dependency on HR through ESS
Enhance Commitment • Improves Transparency • Process streamlining • Seamlessness
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PROPOSITION IV. HR EFFECTIVNESS AND HR TRANSFORMATION ENHANCE ORGANIZATIONAL PERFORMANCE
Mark Huselid (1995)’s work on impact of HPWS on productivity is one of the remarkable study which helps to establish the relationship between strategic HRM practices and firm performance.
Recent studies of S.C.Kundu (2012), De Alwis, A.C(2010) also supports view of changed role of HR being “Strategic Partner” getting more involved in “Strategic Decision Making” helps improving organization performance.
Studies by Delaney (1990), Ichhiowski (1990) and (1993), Khalil Gazawi et al (2004), Emma Parry(2011 and 2013), Kumar and Parumasur (2013), Maier et al (2013) also advocates the Transformed HR Practices (HPWS) and firm performance relationship
Work of Much of debate in HRM literature since 1990 and empirical evidences worldwide on HRM practices and firm performance, however there is lack of agreed “conceptualization” of how this relationship between the Transformed or HPWS HRM practices and firm performance actually works. Hope Hailey et al (2005)
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RESEARCH MODEL P1
P2
P4
P3
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LIMITATION
Working Paper
Only concentrated on Literature and Development of Concept
Absence of Instrument for Data Collection and Data
Literature Review Scope is very wide, possibility of missed important literature
Different academic researches conducted in various different domain of HR Technology, HR Transformation – view of experts may differ. However it was taken care to verify the feasibility and relevance of the study with experts
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FUTURE DIRECTION
Paper reviews the ocean of literature and studies available for HR Technology and examined the various dimensions like Development of Information Technology Evolution of HRM & Information Technology Changes in HRM Practices, Journey of HRIS, e-HR etc. HR as Strategic Partner
Strohmeier (2007) suggested that the question of whether e-HRM is “able to transform HR into an appreciated business partner that provides value to the organization is only parenthetically addressed” and concluded that there is a need for further research into the impact of e-HRM in all three of Lepak and Snell’s areas.
Bondarouk and Ruel (2009) stated “organizations are definitely silent about whether their HR departments become more strategic with e-HRM”
However there is lot of scope for further study in area of measuring the correlation between the use of HR Technology and HR Transformation and an comprehensive model which can help understand the significant impact of HR Technology and HR Transformation on Organizational Performance
Hence further empirical research in the area will add significant contribution to the empirical results for “Role of technology for HR Transformation”, which is relatively lacking in current literature and 21 knowledge repository.
REFERENCES Bell, B.S., Lee, S.W. and Young, S.K. (2006) The Impact of eHR on Professional Competence in HRM: Implications for the Development of HR Professionals, Working Paper Series, Cornell University School of Industrial and Labor Relations Center for Advances Human Resource Studies Becker, B. E., & Huselid, M. A. (2006). Strategic human resource management: Where do we go from here? Journal of Management, 32(6), 898–925. Becker, B. E., Huselid, M. A., & Ulrich, D. (2001). The HR scorecard: Linking people, strategy, and performance. Boston: Harvard Business School Press. Beckers, A. M., & Bsat, M. Z. (2002). A DSS classification model for research in human resource information systems. Information Systems Management, 19(3), 41–50 Brockbank, W. (1999). If HR Were Really Strategically Proactive: Present and Future Directions in HR's Contribution to Competitive Advantage. Human Resource management, 38:337-352. Broderick, R., & Boudreau, J. W. 1992. Human resource management, information technology, and the competitive edge. Academy of Management Executive, 6(2): 7-17. Chabrow, Eric. (2004). World-class companies use IT more effectively for HR. InformationWeek, 1014, 1 22
References (Conti..) Cascio, W.F. & Awad, E.M. (1981). Human resources Management: An Information Systems Approach. Reston, VA: Reston Publishing Company, Inc. Strohmeier, S. (2007) Research in e-HRM: Review and Implications, human Resource Management Review, 17, 19-37 Hannon, J., Jelf, G., & Brandes, D. 1996. Human resource information systems: operational issues and strategic considerations in a global environment. International Journal of Human Resource Management, 7(1): 245-269 Lawler, E. E., Levenson, A., & Boudreau, J. W. 2004. HR Metrics and Analytics: Use and Impact. Human Resource Planning, 27(4): 27-35. Lawler, E. E., & Mohrman, S. A. 2003. HR as a Strategic Partner: What Does It Take to Make It Happen? Human Resource Planning, 26(3): 15-29. Lengnick-Hall, M. L., & Moritz, S. 2003. The Impact of e-HR on the Human Resource Management Function. Journal of Labor Research, 24(3): 365-379. Martinsons, M. G. 1994. Benchmarking human resource information systems in Canada and HongKong. Information & Management, 26(6): 305-316 23
References (Conti..) Walker, A. J. 2001. How the web and other key trends are changing human resources. In A. J. Walker, & T. Perrin (Eds.), Web-based human resources: the technologies and trends that are transforming HR xiii-xxviii. New York: McGraw-Hill. S.C.Kundu, Rajesh Kadian 2012. Application of HRIS in Human Resources Management in India – A Study, European Journal of Business and Management Vol 4,No 21,2012 De Alwis, A. C. 2010. The Impact of Electronic Human Resources Management on the Role of Human Resources Managers. Ekonomie A Management, 4, 47-60. CedarCrestone, (2013), Going Global – HR Tech -2014, CedarCreston 2013-2014 HR Systems Survey White Paper Sierra-Cedar (2014), Sierra-Cedar HR Systems Survey, White Paper 17th Annual Edition
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