European Journal of Business and Management ISSN (Paper) ISSN (Online) Vol 4, No.6, 2012

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1 Europan Journal Businss and Managmnt Th Impact Informa Tchnology () Human Rsourc Managmnt (HRM): Empirical vidnc from Nigria Banking Sctor. Cas Study Slctd Banks from Lagos Stat and Oyo Stat in South- Wst Nigria Adwoy J. O. (Ph.D) Dpartmnt Managmnt Scinc, Ladok Akintola Univrsity Tchnology, Ogbomoso, Oyo Stat, Nigria Obasan, Khind, A Dpartmnt Businss Administra, Olabisi Onabanjo Univrsity, Ago - Iwoy Ogun Stat, Nigria. obasankhind@yahoo.com Abstract Informa tchnology () has bcom an indispnsabl part ctmporary world whil human rsourc managmnt globally has qually bing affctd in a numbr ways through its and applica. Dspit th csidrabl growth in th us informa tchnology in human rsourc managmnt (HRM), th lvl impact is still undr-rsarchd. Using th dscriptiv statistics, this study sks to harnss th ovrall and gnralizd impact HRM in th Nigria Banking Sctor by xploring som aspcts HRM that hav bn affctd by and th ffct such HRM activitis through primary data collctd with a structurd qusnair administrd to slctd Banks in South-Wst Nigria.It was rvald that has significantly incras th fficincy HR managmnt activitis and procsss through an ffctiv and fficint mploy communica and ngagmnt whil th rols and skills HR managrs has xpand csidrabl ovrtim du to thir and ctinuous upgrad knowldg in th us in th discharg thir primary funcs. Hnc, it is duty bound for Banks policy formulators to dtrmin th right siz rquird to drivd th bst rsult in an organisa. Kywords: Tchnology, Informa Tchnology (), Human Rsourc (HR), Human Rsourc Managmnt (HRM), Nigria Banking Sctor INTRODUCTION Informa Tchnology () has provd to b a catalyst to fundamntal changs in th world s comis and socitis by crats mor avnus to arn incom, allows accss to usful informa, nhancs th world work and maks th world a global villag. Th industry spans broadcast, lctrics and print mdia, computrs, human rsourcs managmnt, tlcommunicas and -commrc activitis. David (2006) opind that th rcogni th pivotal rol Informa Tchnology () for dvlopmnt bcam minnt in Nigria with th formula and approval th Naal Informa Tchnology () Policy in March, Th formula th policy was a csultativ procss that brought togthr major stakholdrs such as Computr Associa Nigria (COAN) now known as Computr socity Nigria, Naal Informa Tchnology Prssal Associas (NDA), and Associa Licnsd Tlcommunica Companis in Nigria (ALTCON) as wll as all Nigrians in th Diaspora. Whil Brodrick and Boudrau (2001) provids that policy has vry clar-cut policy goals th dvlopmnt th naal informa backb to ngndr samlss intrcnctivity in ICT infrastructur dvlopmnt and human rsourc managmnt in Nigria. 28

2 Europan Journal Businss and Managmnt In modrn tim, has bn td in most sctors th Nigrian comy with th aim achiving th vis 2020 and th Millnnium Dvlopmnt Goals (MDGs). It is also imprativ to not that, as othr sctors th Nigria comy mbrac th rvolu, th Nigria banking sctor is not lft out as most banking opras ar now bing automatd through th us and incorpora automatd tllr machins (ATM) for withdrawals, us sophisticatd databas stwar to maintain customrs transacs with intra and intr-bank fund transfr opportunitis, smart cards and ATM cards with scurity labls for customr idntifica, lctric doors with mtallic dtctors at ntrancs to nhanc scurity during banking hours, survillanc camras placd at stratgic posis targtd at capturing mploys, customrs and intrudr s unholy activitis during and aftr th fic hour, my counting machin instad th ad-hoc manual way counting nots, lctric and mobil banking srvics (-banking) to nabl customrs to mitor thir mtary transacs anywhr and anytim from ithr th intrnt or thir mobil phs. Ball (2005) obsrvd that has brought a grat rvolual chang to th Nigria banking systm, but fficint and ffctiv managmnt human capital managmnt in this sctor th comy has progrssd to an incrasingly imprativ and complx procss. Th func Human Rsourcs Managmnt dpartmnt is gnrally administrativ and comm to almost all organizas but to rduc th manual workload ths administrativ activitis, banks bgan to lctrically automat many ths procsss by dvloping and introducing orintd stwar applicas which latr ld to th dvlopmnt spcializd Human Rsourc Managmnt Systms (HRMS). As a rsult this dvlopmnt, th us informa tchnology in HRM has grown csidrably in rcnt yars and thr ar now xtnsiv applicas across a wid rang HRM activitis in th banking sctor. According to Rul t al, (2008) th trm -HRM was first usd in th lat 1990 s whn -commrc was swping th businss world. -HRM is intrnal applica -businss tchniqus to add valu to th managmnt through mor ffctiv and fficint informa flow and is a way doing HRM. As informa tchnology improvs, organizas spcially banks, could manag an incrasing numbr HRM procsss in an ffctiv mannr, thrby ctributing to th availability informa and knowldg. This in turn has hlp HRM prssals to play a stratgic rol in attaining improvd comptitiv advantag. This intrac and intrsc btwn and HRM lads to th mrgnc HRMS a trm usd to dscrib th systms and procsss at th intrsc btwn human rsourc managmnt (HRM) and informa tchnology (). It mrgs all HRM activitis and procsss with th informa tchnology fild whil th programming data procssing systms volvd into standardizd routins and packags ntrpris rsourc planning stwar. This has bn dvlopd sinc thir incrasd visibility in th lat 1990s and wr largly usd for administrativ and data rcording purposs and hav prsntly mtamorphos into HRM supporting applicas for rcruitmnt and slc, flxibl bnfits, dvlopmnt, -larning and so. Human Rsourc Managmnt Systm is any systm that hlps an organiza to acquir, stor, manipulat, analyz, rtriv and distribut informa about an organiza s human rsourcs. Whil th trm -HRM is usd to xprss th us informa tchnology within th HRM func. Martin t al (2005) provids th main aras in which HRM practirs hav tradially introducd capabilitis. 29

3 Europan Journal Businss and Managmnt Tabl 1: HRM Capability Modl Sourc: th Naal Grid HR Capability Framwork, adaptd from Martin t al (2005) Addially, th HRM func may also b involvd in organizaal dvlopmnt and chang managmnt. CIPD (2005) obsrvd that human rsourc is th most snsitiv dpartmnts in th bank and that th succss or failur a bank lis in its HRM capability. Tabl 2: Aras in HRM Potntial Us Sourc: CIPD Popl Managmnt and Tchnology Survy, 2005 Thr is no doubt that th introduc and implmnta informa tchnology within th human rsourc dpartmnt banks is a complx mattr and that th rquirmnts for th implmnta and th impact th tchnology diffr according to th natur th bank s human rsourc managmnt stratgis and th tchnology. Martin t al (2009) opind that th us ICT can stablish mor virtual customr rlaships within th organiza thus nabling it to provid stratgic valu. Through social ntworking, it can also improv mploy voic. Whil Wachira (2010) cclud that HRM in Africa should b ccrnd with applica intrnt and wb basd systms and incrasing mobil tchnologis to chang th natur intracs amg HR staff, lin managrs and mploys. Howvr, th introduc informa tchnology to human rsourc managmnt activitis is usually drivn by potntial improvmnts such as in th spd and fficincy procsss, cost savings, nhancd customr satisfac, incrasd accuracy data, improvd transparncy and csistncy procsss, incrasd availability informa and th facilita a chang in th rol human rsourc managrs. 30

4 Europan Journal Businss and Managmnt Th dsign a human rsourc managmnt systm normally involvs som trad-f btwn using th solu and customizing it to fit with th human rsourc managmnt and organizaal nds. Csulta with human rsourc managrs th dsign and dvlopmnt th systm is ssntial in ordr to map out procsss and to nsur that th systm will b usabl. This must b csidrd carfully, as should th branding th solu, which should fit with th human rsourc and organizaal brand. Finally, xtnsiv tsting th systm with human rsourc managrs is ssntial in ordr to produc a product that is usabl and ffctiv. This will hav a major positiv impact human rsourc managmnt procsss by making thm fastr, mor fficint, chapr, mor accurat, mor rliabl, mor transparnt and csistnt. Informa tchnology has nhancd th ability human rsourc managrs to produc rliabl data via a human rsourc managmnt systm; this in turn allows human rsourc prssals to mak data-drivn dciss and to provid othr managrs with csultancy basd up this data. Finally, with rgard to th human rsourc managmnt rol, it is apparnt that human rsourc managrs may b abl to t a mor advisory or stratgic rol du to th incrasd availability rliabl human rsourc managmnt data. Many banks hav g byd th tradial funcs and dvlopd human rsourc managmnt systms that support rcruitmnt, slc, hiring, job placmnt, prformanc appraisals, mploy bnfit analysis, halth, safty and scurity. Th rcnt aras implmnta human rsourc managmnt systm includ: Payroll Work Tim Bnfits Administra HR Informa managmnt Rcruiting Training/Larning Managmnt Systm Prformanc Rcord Th payroll modul automats th pay procss by gathring data mploy tim and attndanc, calculating various dducs and taxs, and gnrating priodic pay chqus and mploy tax rports. Data is gnrally fd from th human rsourcs and tim kping moduls to calculat automatic dposit and manual chqu writing capabilitis. This modul can ncompass all mploy-rlatd transacs as wll as intgrat with xisting financial managmnt systms. Th work tim gathrs standardizd tim and work rlatd fforts. Th most advancd moduls provid broad flxibility in data collc mthods, labor distribu capabilitis and data analysis faturs. Cost analysis and fficincy mtrics ar th primary funcs. Th bnfits administra modul provids a systm for banks to administr and track mploy participa in bnfits programs. Ths typically ncompass insuranc, compnsa, prit sharing and rtirmnt. Th HR managmnt modul is a compnt covring many othr HR aspcts from applica to rtirmnt. Th systm rcords basic dmographic and addrss data, slc, training and dvlopmnt, capabilitis and skills managmnt, compnsa planning rcords and othr rlatd activitis. Lading dg systms provid th ability to rad applicas and ntr rlvant data to applicabl databas filds, notify mployrs and provid posi managmnt and posi ctrol. Human rsourc managmnt func involvs th rcruitmnt, placmnt, valua, compnsa and dvlopmnt th mploys an organiza. Initially, businsss usd computr basd informa systm to: produc pay chcks and payroll rports; maintain prsnl rcords; 31

5 Europan Journal Businss and Managmnt pursu talnt managmnt. Onlin rcruiting has bcom th primary mthods mployd by HR dpartmnts to gathr potntial candidats for availabl posis within an organiza. Talnt Managmnt systms typically ncompass: analyzing prsnl usag within an organiza; idntifying potntial applicants; rcruiting through company-facing listings; rcruiting through lin rcruiting sits or publicas that markt to both rcruitrs and applicants. Th significant cost incurrd in maintaining an organizd rcruitmnt ffort, cross-posting within and across gnral or industry-spcific job boards and maintaining a comptitiv xposur availabilitis has givn ris to th dvlopmnt a ddicatd Applicant Tracking Systm, or 'ATS', modul. Th training modul provids a systm for banks to administr and track mploy training and dvlopmnt fforts. Th systm, normally calld a Larning Managmnt Systm (LMS) if a stand-al product, allows HR to track duca, qualificas and skills th mploys, as wll as outlining what training courss, books, CDs, wb basd larning or matrials ar availabl to dvlop which skills. Courss can thn b frd in dat spcific ssss, with dlgats and training rsourcs bing mappd and managd within th sam systm. Sophisticatd LMS allow managrs to approv training, budgts and calndars algsid prformanc managmnt and appraisal mtrics. For this ras, a random survy th gnral but substantial impact HRM in Nigria banking sctor will b carrid out as wll as th lvl impact in masurd in dgrs. Mthodology For th purpos this study, data wr sourcd from both primary and scdary. Th scdary data sourcs includ xtnsiv dsk rsarch through library, diffrnt publishd and unpublishd matrials and th world-wid wb whil primary data was collctd through structurd qusnairs and intrviws with th major playrs including HR managrs and mploys in th banking industry in ordr to solicit thir viws th volu, and bnfits drivd from th applica informa tchnology in Nigria banking sctor and its impact HRM activitis. Th qusnairs wr dsignd basd thr indpndnt variabls HRM activitis that had bn idntifid during oral intrviw with HR managrs, ths includ: Efficincy HR managmnt activitis and procsss, Employ communica and ngagmnt and th changing rols and skills HR managrs. Rspdnts wr srving HR managrs with a minimum 20 yars xprinc in HRM in th sam bank and othr bank mploys with a minimum 20 yars work xprinc as wll. This was to nabl th rspdnts to attnd practically to quss about HRM activitis bfor th in HRM in thir rspctiv banks. Th rspdnts gradd th dpndnt variabls dtrmining th impact ach HRM activity in prcntag (%). Th Banks wr slctd at random using critria such as ownrship structur, yars in businss, turnovr, human capital siz and rlvanc to. Th slctd Banks includ First bank Nigria (FBN), Unitd Bank for Africa (UBA), Sky Bank Plc. and Un Bank in Lagos and Oyo stats South-Wst Nigria. It can b obsrvd that most ths banks had bn in opra bfor th volu and in HRM activitis banking industry and wr slctd basd thir high ccntra in th rg with a viw to achiving maximum rprsnta within Nigria banking sctor vis-à-vis th objctiv this study. 32

6 Europan Journal Businss and Managmnt It is paramount to stat that th dpndnt variabls, for ach th thr idntifid indpndnt variabls to masur th impact HRM, wr idntifid through oral intrviw with HRM prssals and ar statd blow: Changing rols and skills HR managrs Dpndnt Variabls: Rduc administrativ and transacal work; Facilita chang in HR structur; Facilita a stratgic data-drivn HR rol; incrasd managmnt vital informa; Tim and labour managmnt Efficincy HR activitis and procsss Dpndnt Variabls: Spd and fficincy HR activitis; Accuracy informa; Transparncy and csistncy; Cost Savings; Timlinss informa procssing; -larning Employ communica and ngagmnt Dpndnt Variabls: Availability informa; Work flxibility; Rsourcing and rcruitmnt; Employ communica from Top to Bottom; Employ Slc; Employ training and dvlopmnt Intrviws wr cductd and qusnairs rports wr gnratd in 10 branchs ach th rspctiv banks slctd in ach th two stats. Th avrag rsult all th valus supplid for ach dpndnt variabl was administrd as a gnralizd rsps from ach th banks in th two stats to dtrmining th impact HRM activitis. wards, ovrall avrag valu ach impact variabl obtaind from th gnralizd rsps from ach bank rprsntd was takn for th two stats. Thraftr, th prcntag impact ach HRM activity (indpndnt variabl) was dtrmind basd th rsults obtaind. A comparis th dgr ffctivnss and fficincy HRM activitis bfor and aftr th in HRM in th slctd banks was prsntd basd th rsults obtaind from th data analysis carrid out in th study and stands to rprsnt th impact informa tchnology HRM in th Nigria banking sctor. DATA ANALYSIS AND RESULTS DISCUSSION Th statistical analyss usd wr simpl and dscriptiv in natur basd th prcntag impact mtrics variabls. Th dpndnt and th indpndnt variabls usd had bn initially statd and xplaind in th mthodology sc. Howvr, th rsps from th slctd banks rprsnting th Nigria banking sctor basd th impact HRM activitis for th thr indpndnt variabls ar shown in Tabl 3-8 in th appndix. It can b obsrvd that th ovrall man rsps th impact mploy communica and ngagmnt is 79 % as against 49 % bfor its in HRM. Ovrall man rsps th impact HRM rols and skills is 78 % as against 43 % bfor its in HRM. Ovrall man rsps th impact HRM activitis and procsss is 85 % as against 49 % bfor its in HRM. Empirical vidncs th impact HRM Aras impact HRM Bfor Efficincy HR managmnt activitis and procsss Employ communica and ngagmnt Rol and skills HR managrs Ovrall avrag valu in % Sourc: Fild survy (2011) From th rsult th data analyzd and prsntd in th tabl abov, it can b obsrvd that th ovrall man fficincy and ffctivnss HRM activitis was 47% bfor th and latr improvd aftr by 81%. 33

7 Europan Journal Businss and Managmnt Efficincy HR managmnt activitis and procsss, through improvd spd and fficincy HR activitis, accuracy informa, transparncy and csistncy, cost savings, timlinss informa procssing and -larning, was 49% bfor th infrastructurs in th whol managrial procss and 85% aftr th. Employ communica and ngagmnt, through improvd availability informa, work flxibility, rsourcing and rcruitmnt, mploy communica from top to bottom, mploy slc and mploy training and dvlopmnt, was 49% bfor th infrastructurs in th whol managrial procss and 79% aftr th. Rol and skills HR managrs, through rduc administrativ and transacal work, facilita chang in HR structur, facilita a stratgic data-drivn HR rol, tim and labour managmnt and incrasd managmnt vital informa, was 43% bfor th infrastructurs in th whol managrial procss and 78% aftr th. CONCLUSION Th study has particularly providd mpirical vidnc that indd th in th Nigrian banking sctor and spcially in its HRM dpartmnt, going by what th analyzd data collctd from th banks slctd hav rvald, has largly impactd HRM activitis in th Nigria Banking Sctor. Thr indpndnt variabls HRM activitis hav bn idntifid, ths includ: Efficincy HR managmnt activitis and procsss, Employ communica and ngagmnt and Rol and skills HR managrs. Efficincy HR managmnt activitis and procsss was 49% bfor th in th managrial procss and 85% aftr th (tabl 5), mploy communica and ngagmnt was 49% bfor th infrastructurs in th HR managrial procss and 79% aftr th (Tabl 8) whil rol and skills HR managrs was 43% bfor th infrastructurs in th whol HR managrial procss and 78% aftr th (Tabl 6). In a rlatd mannr, th study rvald that in th Nigria banking sctor as rprsntd by th slctd banks in th study, th ovrall man fficincy and ffctivnss HRM activitis was 47% bfor th and latr improvd by 81% aftr th (Tabl 9). Th ovrall cclus, howvr, is that flxibility in th us in HRM in Nigria banking sctor can b nhancd if th latst infrastructurs ar incorporatd assuming impact lvl byd 81% obtaind in this study is dsird. REFERENCES Ball (2005) Th us human rsourc managmnt systms: a survy. Prsnl Rviw. Vol.30 i Brodrick, R. and Boudrau, J.W (2001)., Human rsourc managmnt, informa tchnology and th comptitiv advantag. Acadmy Managmnt Excutiv. Vol. 6 i CIPD (2005) Popl Managmnt and Tchnology Survy, 2005 David (2006), Human rsourc managmnt, informa tchnology and th comptitiv advantag. Acadmy Managmnt Excutiv. Vol.6 i Martin, G., Rddingt, M. and Knafsy, M.B. (2009), Wb 2.0 and human rsourcs: groundswll or hyp?, Rsarch Rport, Chartrd Institut Prsnl and Dvlopmnt, Ld. Martin, G., Rddingt, M. and Alxandr, H. (2005), Tchnology, Outsourcing and HR Transforma, Buttrworth Hinmann, Oxford, pp Rul, H.J.M. and Bdarouk, T.V. (2008), Exploring th rlaship btwn -HRM and HRM ffctivnss: lsss larnd from thr companis, in Martin, G., Rddingt, M. and Alxandr, H. (Eds), Tchnology, Outsourcing and HR Transforma, Buttrworth Hinmann, Oxford, pp

8 Europan Journal Businss and Managmnt Wachira F.N (2010) Improving th Managmnt Human Rsourcs in th Public Srvic through applica Informa and Communica Tchnologis (ICTs): Th Africa Public Srvic Human Rsourc Managmnt Ntwork: Cotou, Bnin 12th -16th April, 2010 Tabl 3: Man rsps th impact HRM activitis and procsss variabls in % HR activi tis & proc sss varia bls Slct d Bank s Spd and fficincy HR activitis Bfor t t Accuracy Informa bfor t aftr t Of Transparnc y csistncy bfor t and aftr t Cost Savings bfor t aftr t E-Larning Bfor t t Timlinss Informa Procssing Bfor t FBN UBA UNIO N SKY E Avra g (%) Sourc: Fild Survy (2011) t Tabl 4: Ovrall Man rsps th impact HRM activitis and procsss variabls in % HR activitis & procsss Bfor Ovrall avrag valu in % Sourc: Fild Survy (2011) 35

9 Europan Journal Businss and Managmnt Tabl 5: Man rsps th impact HRM rols and skills variabls in % HR Rols and Skills Variabl s Banks Slct d Rduc Facilita Facilita a Incrasd Facilita administrativ chang in HR stratgic datadrivn managmnt tim and labour & transacal work structur HR rol informa managmnt Bfor ti ti Bfor ti ti Bfor ti ti Bfor ti ti Bfor ti ti FBN UBA UNION SKYE Avrag (%) Sourc: Fild Survy (2011) Tabl 6: Ovrall Man rsps th impact HRM rols and skills variabls in % HR Rols and Skills Bfor Ovrall avrag valu in % Sourc: Fild Survy (2011) 36

10 Europan Journal Businss and Managmnt Tabl 7: Man rsps th impact mploy communica and ngagmnt variabls in % HR mploy communi ca variabls Banks Slctd Availability Work Rsourcing Employ communicat Employ Employ flxibility and from Slc training and informa rcruitmnt Top to dvlopmn Bottom t Bfo r Bfo r Bfo r Bfo r Bfo r Bfo r FBN UBA UNION SKYE Avrag Sourc: Fild Survy (2011) Tabl 8: Ovrall Man rsps th impact mploy communica and ngagmnt variabls in % HR mploy communica Bfor Ovrall avrag valu in % Sourc: Fild Survy (2011) 37

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