THE IMPLICATIONS OF IMPLEMENTING ELECTRONIC- HUMAN RESOURCE MANAGEMENT (E-HRM) SYSTEMS IN COMPANIES

Transcription

1 THE IMPLICATIONS OF IMPLEMENTING ELECTRONIC- HUMAN RESOURCE MANAGEMENT (E-HRM) SYSTEMS IN COMPANIES Thesis Submitted to the Padmashree Dr. D. Y. Patil University, Department of Business Management in partial fulfillment of the requirements for the award of the Degree of DOCTOR OF PHILOSOPHY In BUSINESS MANAGEMENT Submitted by SHILPA VARMA (Enrollment No: DYPPHD ) Research Guide Dr. R. GOPAL DIRECTOR, DEAN & HEAD OF THE DEPARTMENT PADMASHREE DR. D.Y. PATIL UNIVERSITY, DEPARTMENT OF BUSINESS MANAGEMENT, Sector 4, Plot No. 10, CBD Belapur, Navi Mumbai July 2010

2 THE IMPLICATIONS OF IMPLEMENTING ELECTRONIC- HUMAN RESOURCE MANAGEMENT (E-HRM) SYSTEMS IN COMPANIES 2

3 DECLARATION I hereby declare that the thesis entitled The Implications of Implementing Electronic-Human Resource Management (e-hrm) Systems in Companies submitted for the Award of Doctor of Philosophy in Business Management at the Padmashree Dr. D.Y. Patil University Department of Business Management is my original work and the thesis has not formed the basis for the award of any degree, associateship, fellowship or any other similar titles. Place: Navi Mumbai Date: Dr. R. Gopal Dr. R. Gopal Ms. Shilpa Varma (Head of the department) (Research Guide) (Research Scholar) 3

4 CERTIFICATE This is to certify that the thesis entitled The Implications of Implementing Electronic-Human Resource Management (e-hrm) Systems in Companies and submitted by Ms. Shilpa Varma is a bonafide research work for the award of the Doctor of Philosophy in Business Management at the Padmashree Dr. D. Y. Patil University Department of Business Management in partial fulfillment of the requirements for the award of the Degree of Doctor of Philosophy in Business Management and that the thesis has not formed the basis for the award previously of any degree, diploma, associate ship, fellowship or any other similar title of any University or Institution. Also certified that the thesis represents an independent work on the part of the candidate. Place: Navi Mumbai Date: Dr. R. Gopal (Head of the department) Dr. R. Gopal (Research Guide) 4

5 ACKNOWLEDGEMENT In the first place, I am indebted to the Padmashree Dr. D.Y. Patil University Department of Business Management, which has accepted me for the Doctorate program and provided me with an excellent opportunity to carry out the present research project. I would like to thank all persons who have been instrumental in making this dissertation see the light of the day directly or indirectly. I owe my deepest gratitude to my mentor and guide, Dr. R. Gopal without whose insights and guidance my work would never have been completed. He helped me retain my focus during the course of this study and guided me in prioritizing the different phases of this research. Without his guidance and support this research would not have taken this current form and could not have been completed within the scheduled time. I would like to acknowledge the help of Mr. Govind Joshi (GM, Systems - Arch Pharmalabs Limited) for detailed technical discussions on e-technology applications in companies; Mr. Amit Varma (Faculty NMIMS) and Dr. Piyush Saxena (Senior Vice President, Corporate Affairs RIL) for the help with data collection from companies and Mr. J.C. Sharma (Consultant, Social Science Research and Statistics) for his guidance in data analysis. I would also like to acknowledge the enthusiastic support of Dr. Kavita K.M. (CEO, JKITM) and Dr. Anuj Verma (GM, CSD Government of India) during this work. I thank my husband Mr. Amar Varma and my daughters Arushi and Arhana for their perseverance and patience while I was busy completing this research. Place: Navi Mumbai Date: Ms. Shilpa Varma 5

6 TABLE OF CONTENTS CHAPTERS PAGE NO. LIST OF TABLES 10 LIST OF FIGURES 13 LIST OF ABBREVIATIONS 15 EXECUTIVE SUMMARY 17 1 INTRODUCTION Changing Role of the Personnel Department Understanding e-hrm Meaning and Definition of e-hrm Nature and scope of e-hrm Benefits of e-hrm Standalone Institution Software and Full Fledged ERP Software- A Comparison 2 REVIEW OF LITERATURE 36 3 OBJECTIVES OF THE RESEARCH Problem Definition Importance of the Research Statement of Objectives Statement of Hypotheses 64 4 RESEARCH METHODOLOGY Understanding the issues Descriptive Survey Field Survey Research Instruments Sampling Design Data Acquisition Stage Data Analysis Stage Presentation of Findings, Recommendations and Suggestions Limitations of the Research

7 CHAPTERS PAGE NO. INTEGRATION OF HR WITH TECHNOLOGY 5 ENVIRONMENT The Evolution of Technology and MIS Human Resource Information Systems Advantages of HRIS A Generic HRIS Model A Matrix of Information Vs User HRIS and the Strategic, Tactical and Operational use of HR 95 6 E-HRM: AN OVERVIEW HR Administration Employee Life Events E-recruitment Training Management Performance Management System Absence Management Shift Management System Resource Management & Timesheet Planning Payroll Management Employee & Manager Self-service HR & Workgroup Analytics / Reporting Workflow Role Players Key benefits of a good HCM software product THE GLOBAL e-hrm e SCENARIO Emergence of Personnel Management From Personnel Management to HRM HR Transformation in the Digital Age HR in the midst of a seemingly endless Transformation Recent trends in e-hrm Model of HCM Excellence Global trends in e-hrm -Highlights Overall Application Adoption Vendor Solutions Sourcing E-HRM trends in the APAC countries 141 7

8 CHAPTERS PAGE NO. 8 THE INDIAN e-hrm e SCENARIO E-HRM in India: Vendor Solutions over the years Current Scenario Some noteworthy e-hrm Applications Sourcing DATA ANALYSIS AND FINDINGS Profile of Sample Response to the Questionnaire Ranking of the drivers for introducing e-hrm systems in companies Usage of e-technology for each of the considered Human Resource Functions Usage of HR Service Delivery Tools Sourcing Solutions Perception of Respondents regarding their company s position in the e-hrm journey today Perception of Respondents regarding their company s position in the e-hrm journey after five years Ranking of the barriers to progress in the e-hrm journey Expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs. Expectation of respondents w.r.t. the benefits from e-hrm justifying the expenditure on the same Opinion of respondents on various aspects of the e-hrm functioning THE PRE-REQUISITES REQUISITES AND CHALLENGES OF 10 E-HRM The Pre-requisites of e-hrm The Challenges of e-hrm 222 8

9 CHAPTERS PAGE NO. 11 RECOMMENDATIONS AND SUGGESTIONS Planning for employee and organizational issues from the outset Assessing the Flexibility of the HR Technology Service Delivery Applications HR Service Centers: Investments to Consider Outsourcing HR administration Creating an Effective e Statement: a Primer Use of Case Management Tools for Compensation Planning E-Recruitment E- Retirement Data mining tools Investing in Portal Technology Best Practices of HR Portals E-learning HR intranets Internet & policies Web 2.0 and Social Networking Applications Strategic HCM Applications CONCLUSION 251 REFERENCE SECTION 256 BIBLIOGRAPHY 257 QUESTIONNAIRE 263 ANNEXURES 272 I Sample Size 273 II Data Analysis Tables 274 9

10 LIST OF TABLES TABLE TITLE PAGE NO. NO. 1.1 Comparison between Standalone Institution Software and Full Fledged ERP Software Data and data items of employee file Data and data items of job files Data and data items of job applicant s file Accidents file data and data items Claims and injuries file data and data items Examples of Human Resource Information Systems Matrix of Information versus User for a Personnel Function Benefits of an ideal HCM software product Sourcing solutions and Key Drivers a Percentage of Respondents- City wise b % of Respondents by Type of Sector (Services/Manufacturing) c % of Respondents by Type of Company (MNC/Non- MNC) d % of Respondents (MNC/Non- MNC)*(Services/Manufacturing) e % of Respondents by Size of Company (Annual Turnover) f % of Respondents by Size of Company (No. of Employees) g City * Type of Sector (Services/Manufacturing) h Size of Company (Annual Turn-over) * Type of Sector (Services/Manufacturing) i Size of Company (No. of Employees) * Type of Sector (Services/Manufacturing) j City * Type of Sector (Services/Manufacturing) k City * Type of Company (MNC/Non-MNC) a Drivers for introducing e-hrm systems to companies: Mean Ranks by Type of Sector ( Services/ 280 Manufacturing) 9.2b Drivers for introducing e-hrm systems to companies: Mean Rank Order by Type of Sector (Services/ 280 Manufacturing) 9.2c The top five drivers for Services vs Manufacturing groups a Drivers for introducing e-hrm systems to companies: Mean Ranks by Type of Company (MNC/ Non-MNC) b Drivers for introducing e-hrm systems to companies: 281 Mean Rank Order by type of Company (MNC/ Non-MNC) 9.3c The top five drivers for MNC vs Non-MNC groups

11 TABLE NO. 9.4a TITLE Drivers for introducing e-hrm systems to companies (ANOVA)- Descriptive Statistics 9.4b Drivers for introducing e-hrm systems to companies (ANOVA) Usage of e-technology for Human Resource Functions 9.5a by Type of Sector (Services/Manufacturing) Usage of e-technology for HR Functions by Type of 9.5b Sector (Services vs Manufacturing) - A Comparison Usage of e-technology for Human Resource Functions 9.6a by Type of Company (MNC/Non-MNC) Usage of e-technology for HR Functions by Type of 9.6b Company- (MNC vs Non-MNC) - A Comparison Usage of HR Service Delivery Tools by Type of Sector 9.7 (Services/Manufacturing) Usage of HR Service Delivery Tools by Type of 9.8 Company (MNC/Non-MNC) Perception of Respondents regarding their company s 9.9 position in the e-hrm journey today- by Type of Sector (Services/Manufacturing) Perception of Respondents regarding their company s 9.10 position in the e-hrm journey today- by Type of Company (MNC/Non-MNC) Perception of Respondents regarding their company s 9.11 position in the e-hrm journey today ANOVA Perception of Respondents regarding their company s 9.12 position in the e-hrm journey after 5 years- by Type of Sector (Services/Manufacturing) Perception of Respondents regarding their company s 9.13 position in the e-hrm journey after 5 years- by Type of Company (MNC/Non-MNC) Perception of Respondents regarding their company s 9.14 position in the e-hrm journey after 5 years - ANOVA Perception of Respondents regarding their company s 9.15a position in the e-hrm journey today vs after five years Services group Perception of Respondents regarding their company s 9.15b position in the e-hrm journey today vs after five years Manufacturing group PAGE NO

12 TABLE NO. 9.15c 9.15d 9.16a 9.16b 9.16c 9.17a 9.17b TITLE Perception of Respondents regarding their company s position in the e-hrm journey today vs after five years MNC group Perception of Respondents regarding their company s position in the e-hrm journey today vs after five years Non-MNC group Barriers to progress in the e-hrm journey: Mean Ranks by Type of Sector (Services/Manufacturing) Barriers to progress in the e-hrm journey: Mean Rank Order by Type of Sector (Services/Manufacturing) The top five Barriers for Services vs Manufacturing groups Barriers to progress in the e-hrm journey: Mean ranks by Type of Company (MNC/Non-MNC) Barriers to progress in the e-hrm journey: Mean Rank Order by type of Company (MNC/Non-MNC) PAGE NO. 9.17c The top five Barriers for the MNC vs Non-MNC groups a Barriers to progress in the e-hrm journey -ANOVA (one-way)- Descriptive Statistics b Barriers to progress in the e-hrm journey -ANOVA Expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs- 301 Services vs Manufacturing 9.20 Expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs- 301 MNC vs Non-MNC 9.21 Expectation of respondents w.r.t. the benefits from e- HRM justifying the expenditure on the same- Services 301 vs Manufacturing 9.22 Expectation of respondents w.r.t the benefits from e- HRM justifying the expenditure on the same- MNC vs 301 Non-MNC 9.23 Opinion of respondents on various aspects of the e- HRM functioning - Mean Ratings by Type of Sector 302 (Services/Manufacturing) 9.24 Opinion of respondents on various aspects of the e- HRM functioning - Mean Ratings by Type of Company 303 (MNC/Non-MNC) 9.25 Opinion of respondents on various aspects of the e- HRM functioning - (all groups)

13 LIST OF FIGURES FIGURE TITLE PAGE NO. NO. 4.1 Survey Process Chart Technology and Industrial Revolution Functional subsystems in an MIS used by a manufacturing concern Relation of activities to functional subsystems Organizational Behaviour and MIS The key features of HRIS HRIS Acquisition Phases An Employee Record System The uses of an HRIS system (by sub-system) HRIS Objectives A Generic HRIS Model HRIS support the strategic, tactical and operational use of the human resources of an organization HR Processes covered by e-hrm - A broad Overview Confirmation with Appraisal- automatic initiation The e-recruitment System Training System Self Appraisal System Performance Management System The Outputs of a Performance Management System Resource Management ESS- A Bird s Eye View HR Services under ESS and MSS Sample self service flowcharts Transformation of HR to HCM in Business Cedar Crestone model of HCM Excellence for organizations having an ERP-based HRMS as their 133 foundation 7.3 Vendors - Administrative and Service Delivery Vendors- Strategic and Measurement Applications Organizational Support for Web 2.0 Technologies - Asia Pacific Vendors - Administrative and Service Delivery - Asia Pacific

14 FIGURE TITLE PAGE NO. NO. 8.1 IDBI Bank s e-hr process flow- A Sampler GSKCH (India) HRIS Model Opinion of respondents on various aspects of e-hrm - The e-recruitment process operates with the need to 9.1 match employee profile with positions vacant in the 203 organization 9.2 The pay structure has been clearly defined in the e- HRM system The e-hrm process has enabled employees to enroll for flexible benefits administration effectively The e-hrm process has been effective in providing clear role definitions The employees have been provided with necessary resources and sufficient training to be able to use e- 210 HRM technology The e-hrm system has increased employee 9.6 commitment with the organization by boosting their 211 motivation and confidence levels 9.7 E-HRM technology is compatible with other systems in use The e-hrm system is user friendly The e-hrm system provides up-to-date information E-HRM has been an effective change agent for positively molding the employees' attitudes towards the use of technology

15 ANZ APAC APPLECART B2E BPCL BPO CBT CEO CHRIS CIO CRP DSS EDP e-hr e-hrm LIST OF ABBREVIATIONS Australia/ New Zealand Asia Pacific Advanced Payroll Processing & Live Employee Career management, Appraisal, Recruitment and Training Business to employee Bharat Petroleum and Chemicals Limited Business Process Outsourcing Computer Based Training Chief Executive Officer Computerized Human Resource Information Systems Chief Information Officer Conference Room Piloting Decision Support System Electronic Data Processing Electronic-Human Resources Electronic-Human Resource Management EMS Employee Management System e-recruitment Electronic-Recruitment e-retirement ERP ESOPS ESS EU FMCG FTE GSKCH Electronic-Retirement Enterprise Resource Planning Employee Stock Options Employee Self Service European Union Fast Moving Consumer Goods Full-time-equivalent Glaxo Smithkline Consumer Healthcare Limited 15

16 List of Abbreviations continued HCM Human Capital Management HR Human Resources HRIS Human Resource Information Systems HRM Human Resource Management HRMIS Human Resource Management Information Systems HRMS Human Resource Management Systems ICICI Industrial Credit and Investment Corporation of India IDBI Industrial Development Bank of India International Association for Human Resource IHIRM Information Management IOC Indian Oil Corporation IS Information Systems IT Information Technology ITES Information Technology Enabled Services KM Knowledge Management L&T Larsen & Toubro MIS Management Information Systems MNC Multinational Company MSS Management Self Service ONGC Oil and Natural Gas Company P&G Proctor & Gamble SaaS Software as a Service SAP Systems Application Provider SME Small Manufacturing Enterprises SSAD Structured System Analysis and Design TCS Tata Consultancy Services TESCO Tata Electric Supply Company TS Technology Services 16

17 EXECUTIVE SUMMARY 17

18 EXECUTIVE SUMMARY The managers of 21 st century envision that Information Systems will have a major influence on their style of decision making and their management style will be highly innovative and personalized. They will have the ability to extensively browse through large databases for specific data and also to manipulate the same at own will. Their paperless office will be highly automated for routine office activities e.g. resource booking, meeting scheduling. Also, they will be truly online executives who use computers as tools for improving their personal productivity. The objective of this research is to trace the emergence of e-hrm (electronic- Human Resource Management) in the global arena as well as in the Indian scenario; to identify the underlying factors and prerequisites for the success of an e-hrm venture; to identify the challenges associated with the implementation and maintenance of e- HRM systems and to offer recommendations and suggestions for enhancing the effectiveness of e-hrm systems. The study is confined to the state of Maharashtra and a sample size of 1000 companies due to cost and time constraints. For purposes of comparison a broad classification of companies into Services sector vs Manufacturing sector and also into MNC (Multinational company) vs Non-MNC has been considered. The research instruments used are questionnaire and interviews. Appropriate Statistical tools including 18

19 Chi-Square Test, t-test, ANOVA wherever applicable have been applied to draw logical conclusions from the data. The broad framework of the research design incorporates aspects pertaining to- the possible drivers for introducing e-technology to the HR systems, the barriers to progress in the e-hrm journey, usage of e-technology for the various HR functions, usage of HR Service delivery tools like ESS and MSS, nature of sourcing solutions adopted by companies for enabling e-technology to HR systems, perception of respondents on a five-point scale regarding their company s position in the e-hrm journey, expectation of respondents w.r.t. e-hrm system being successful in satisfying employees in their HR needs, expectation of respondents w.r.t. the benefits from e-hrm justifying the expenditure incurred on the same and opinion of respondents on various aspects of the e-hrm functioning. Implementation of e-hrm involves several challenges with its attendant implications like - huge set-up costs to support a robust tech-infrastructure and limitations in mapping all physical HR processes into e-hrm process, focus on aggressive timelines in project execution may create conflicts between the process ownership by HR and IT departments, etc. E-HRM presupposes the presence of an IT culture as well as a culture of Knowledge management (KM), with the Human Resource as a process owner, being clear about the objectives of e-hr and the implementation plan e.g. defining the milestones for implementation, selection of implementation partners, a commitment which involves spending 19

20 long hours, training employees on the optimal use of the portal, etc. The set-up costs as well as maintenance seem to be one of the biggest challenges of e-hrm. Costs tend to be proportional to requirements and the type of organization. Another important concern is the security of the information generated through the e-hrm system. Companies have to protect themselves against the seepage of confidential information and the subsequent misuse of data. Managing the huge amount of data generated through Human Resource Management Systems (HRMS) is a relatively new challenge for companies. Another challenge is the avoidance of overkill and loss of the human touch. The human side should not be neglected in a bid to be techno-savvy. E-HRM is more so a challenge for the traditional companies which need to bring about a change in the mindsets to a large extent. These companies as compared to those in the IT sector, BPOs etc. are having a tougher time getting people to speed up on these HR tools. Most of the packages are of international standards and based on best practices. These packages need to be customized as per Indian Standards in order to make them user-friendly for Indian users. This customization needs to be taken up in the right perspective. Training the users is many a time a long drawn out process, as many people do not find them to be user friendly. Continuous monitoring and 20

21 feedback are critical for the success of any e-hrm effort in an organization. Communicating the value of investment in employee compensation, health insurance, pension plans and other benefits is crucial for engaging and motivating employees. It is also advantageous to separate out Human Resource administration from more strategic work and standardize and centralize this activity in an in-house Human Resource service center. In addition, one has to ensure long term value of the new technology so that it does not become obsolete by the time it is implemented. With the introduction of technology into virtually every HR process, organizations are capturing thousands of pieces of potentially useful employee information every day. However, this data can be useless unless data mining tools are used to put the information to work. Data mining tools use regression and other analytic techniques to discover and report correlations and trends among sets of data. Investment in Portal technology is another important area which needs a careful analysis and prioritization of resources. Two crucial investments in this area which could be taken up on priority basis are Personalization and Smart Search. E-learning is increasingly being used by employers to complement more traditional training methods. While increasingly sophisticated are now available, employers are now designing e-learning resources on the basis of what should be implemented. 21

22 Any e-hrm installation exercise if taken up in the right perspective, keeping all the challenges in mind can take an organization a long way towards success. In companies, which have successfully tackled these challenges, e-hrm has made life easier for employees. It leaves Human Resource professionals with more time to focus on strategic tasks and manage better the company s most important resource- its people. 22

23 CHAPTER 1 INTRODUCTION 23

24 CHAPTER 1 INTRODUCTION 1.1 Changing role of the Personnel Department Over the past decades the role of the personnel department has been transformed from that of an administrator to more recently a critical component in the competitive success of the business. When Human Resources (the Personnel Department) first began to surface as a function in business, executives and other decision makers were focused on tangible goods and financial resources. Human Resources role was to support back-office functions, mainly legislation requirements, payroll, and personnel data maintenance. Today, however, every Chief Executive Officer (CEO) speaks of the people behind the corporation s success. In fact, many corporations brand their workforce as part of their marketing campaigns to attract not only the right talent, but also to attract business and consumer buyers. Savvy executives understand that, in a tighter, tougher, less predictable economic climate, they have to take maximum advantage of the skills and expertise available in the existing employee pool. During these past few years, corporations have begun to embrace a human capital approach, one that considers the money spent on fostering innovation in the workforce as an investment. As with any asset, by nurturing, protecting, and growing this investment, organizations that align workforce strategies with business goals and 24

25 objectives will benefit from capturing and focusing the attention of the workforce. Just as the role of Human Resources continues to change, technology has continued to evolve. If the role of Human Resources has always been to deliver the workforce support and management based on the needs of the business, then technology s role has been that of an enabler. Over the past years, Human Resources processes and procedures have been supported by everything from complicated file-folder systems to automation, going from usage of multiple systems and databases to a single version of the truth with comprehensive Human Resource Management Systems (HRMS). Now companies are not only leveraging technology to support the function of the HR department, but they are also leveraging human capital technologies for use by everyone in the business. Consequently, human resources as a function has evolved into human capital management (HCM). Where HR was the responsibility of a centralized, or sometimes decentralized, department, HCM is the job of everyone in the business, from employees to executives. 1.2 Understanding e-hrm e Meaning and Definition of e-hrm e People mean different things by the term e-hrm. It is a web-based solution that takes advantage of the latest web application technology to deliver an online real-time Human Resource Management Solution. 25

26 It is comprehensive but easy to use, feature-rich yet flexible enough to be tailored to one s specific needs. It also refers to the processing and transmission of digitized information used in HRM, including text, sound, and visual images, from one computer or electronic device to another. It will be able to meet the demands of today's Human Resource Management. Typically, the term e-hrm is used to describe technology s role in enabling the transformation of solely HR activity. Instead of a centralized personnel team handling everyday tasks such as approving pay rises, sorting out training and checking holiday entitlements, these can be handled by the employees themselves or their line manager. Crucially, the adoption of e-hrm seeks to minimize or eliminate intervention from HR staff, allowing managers and employees to perform HR tasks directly with the self service tools. These can contrast with the shared service center environment, where the service would normally be expected to be delivered by a customer service operative or other category of HR staff. Before starting to define e-hrm, it is also important to identify terms that possibly carry similar meanings to the term e-hrm, Wright and Dyer (2000). In addition to e-hr and e-hrm terms are used such as virtual HRM, HR intranet, web-based HR, computer based human resource information systems (CHRIS) and HR portals. We are excluding HR information systems (HRIS), since there is a fundamental difference between HRIS and e-hr in that basically HRIS are directed towards the HR department itself. Users of these systems 26

27 are mainly HR staff. These types of systems aim to improve the processes within the HR department itself, in order to improve the service towards the business. With e-hrm, the target group is not only the HR staff but people outside this department: the employees and management. HRM services are being offered through an internet for use by employees. The difference between HRIS and e-hrm can be identified as the switch from the automation of HR services towards technological support of information on HR services. Technically speaking it can be said that e-hrm is the technical unlocking of HRIS for all employees of an organization. E-HRM as defined by Kettley P and Reilly P (2003), is a Computerized Human Resource Information System (CHRIS) and consists of a fully integrated, organization-wide network of HR related data, information, services, databases, tools and transactions. Such a system can be described as e-hr, meaning the application of conventional, web and voice technologies to improve the HR administration, transactions and process performance. As stated by Ernst Biesalski Electronic-Human Resource Management (E-HRM) is a web based tool to automate and support HR processes. The implementation of e-hrm is an opportunity to delegate the data entry to the employees. E-HRM facilitates the usage of HR market places (e-recruitment) and offers more self-service to the employees. EHRM is a collection of many different technologies. 27

28 Mary Gowan has defined Electronic Human Resource Management System (E-HRM System) as a web-based solution that takes advantage of the latest web application technology to deliver an online real-time human resource management solution. It is comprehensive but easy to use, feature-rich yet flexible enough to be tailored to one s specific needs. Broderick and Boudreau (1992) defined Human Resource Information Systems (HRIS) as the composite to data basis computer applications and hardware and software that are used to collect or record, store, manage, deliver, present and manipulate data for human resources. According to Ruel, Bondarouk and Looise (2004), e-hrm is a way of implementing HR strategies, policies, and practices in organizations through a conscious and directed support of and/or with the full use of web-technology-based channels Nature and Scope of e-hrm e E-HRM is designed to achieve the following objectives- to offer an adequate, comprehensive and on-going information system about people and jobs at a reasonable cost; to provide support for future planning and also for policy formulations; to facilitate monitoring of human resources demand and supply imbalances; to automate employee related information; to enable faster response to employee related services and faster HR related decisions and to offer data security and personal privacy. 28

29 The scope of e-hrm can be said to encompass- a decisive step towards a paperless office; higher speed of retrieval and processing of data; increased access to HR data and ease in classifying and reclassifying data; collection of information as the basis for improving the strategic orientation of HRM; more consistent and higher accuracy of information/report generated; fast response to answer queries; a higher internal profile for HR leading to better work culture; establishing of streamlined, standardized and systematic procedures; more transparency in the system; cost savings achievable through process improvements and due to reduction in duplication of efforts; significant reduction of administrative burden; adaptability to any client and facilitating management; Integral support for the management of human resources and all other basic and support processes within the company and a more dynamic workflow in the business process, productivity and employee satisfaction. E-HRM pervades through each and every function of HR: -- Resource Management, Compensation and Reward Management, Performance Management, Training and Development, Employee Relations Wright and Dyer (2000) distinguish three areas of HRM where organizations can choose to offer HR services face-to-face or through an electronic means: transactional HRM, traditional HRM, and transformational HRM. Lepak and Snell (1998) make a similar distinction, namely operational HRM, relational HRM and transformational HRM. 29

30 The first area, operational HRM, concerns the basic HR activities in the administrative area. One could think of salary administration (payroll) and personnel data administration. The second area, relational HRM, concerns more advanced HRM activities. The emphasis here is not on administering, but on HR tools that support basic business processes such as recruiting and the selection of new personnel, training, performance management and appraisal, and rewards. Transformational HRM, the third area concerns HRM activities with a strategic character. Here we are talking about activities regarding organizational change processes, strategic reorientation, strategic competence management, and strategic knowledge management. The areas mentioned could also be considered as types of HRM that can be observed in practice. The operational type of HRM provides the choice between asking employees to keep their own personal data up-to-date through an HR website or to have an administrative force in place to do this. For relational HRM there is the choice between supporting recruitment and selection through a web-based application or using a paper-based approach (through advertisements, paper-based application forms and letters etc.) Finally, in terms of transformational HRM, it is possible to create a change-ready workforce through an integrated set of web-based tools that enables the workforce to develop in line with the company s strategic choices or to have paper-based materials. In cases where an organization consciously and in a focused way chooses to put in 30

31 place web technology for HRM purposes, based upon the idea that management and employees should play an active role in carrying out HR work, we can speak of e-hrm Benefits of e-hrm e The main benefits of e-hrm are an increase of quality and pace, because the existing administrative processes were slow and inefficient conditional upon mainly paper-based processes. Standardization: By standardizing the system used within the group and by providing employees with direct access to records, particularly leave records, the company can achieve a significant reduction in employee queries and reduce the need for HR to undertake data entry of employee records. Ease of recruitment, selection and assessment: With e- recruitment the company gets an additional possibility besides the normal application by paper to recruit people over the web in an online-application process. Although this, and like processes, will always need significant human intervention. E-HRM systems can streamline the process and reduce errors. Ease of administering employee records: Whether be it leaves, benefits, personal details, accident and discipline reports, etc., it is generally accepted that once everyone can overcome the initial IT phobia, HR and employees will experience fewer headaches and efficiency will rapidly increase. 31

32 Reductions in cost, time and labor: Reduced duplication, reduced time spent fixing errors, reduced labor costs through ESS, reduced or no hard-copy entry. Not only manpower can be saved, the processing time can also be shortened. With this e-hrm reaches the prime objective of cost effectiveness. Access to ESS training enrolment and self development: e- Training can enable employees to search for and enroll in training programs on-line and validating course availability. This can streamline the training administration process enabling employees to access computer based training. Cost and pace can be individualized as well. Cost and ESS: ESS reduces the workload of HR department substantially, for instance in the traditional method the employee has to type in a formal leave application get approved from his/her direct boss who will send it to the HR department for further approval. On the other hand, with e-leave, the employee needs only to log in and make his/her leave application and his/her boss will be alerted to approve. Upon approval the leave balance is automatically updated. Location and timeliness: With ESS, the employee could log in online anywhere and anytime without being in the office and without the leave card could be sitting at the boss Table for a few days, lost or buried. 32

33 1.3 Standalone Institution Software Vs Full Fledged ERP Software- A Comparison Table 1.1 Comparison between Standalone Institution Software and Full Fledged ERP Software Sl. No. Stand alone Institution Software Institutional ERP 1. Redundancy of data entry No redundancy Ambiguity of information as different S/W may show different values for same thing. No inter module communication. For example there will be no way for the library software to know if the caution money for the library is collected at fee counter for a particular student. Data security is generally an issue with stand alone software as the data base is directly accessible by the users. There are always chances for accidental or deliberate loss of data. Central backup for the entire system is not possible. No ambiguity as the data is served from central location. Same logic of processing keeps away any such ambiguity. ERP systems are specially designed for inter module information sharing. Since all modules use the same database and business logic all the modules can interact with each other seamlessly. Generally the data is only accessible only through the software interface in a controlled manner. The server is not in direct access of the users, so critical information is always intact. Backup can be managed centrally with a great ease. 6. Different approach and interfacing for different modules. Generally similar interfacing approach for all modules. Makes it easy for the top level management to interact Physical movement of data is required for reporting. The dependency level even for routine information is higher in stand alone applications. No possibility for developing a common business logic. Multiple access point can eliminate physical movement of reports and other data. Routine information issues are generally available with required users without dependency. Runs on common business logic for the institution. 10. Easy to implement. The implementation period is a bit lengthy. 11. Low initial investment but higher recurring expenditure in terms of man hours and usage of stationary for sharing routine information. Comparatively high initial investment but low recurring expenditure in man hours and information sharing throughout the institution. Source: P. Ramasubramanian & Dr. D. Periasamy, ERP System in Educational Institution-A Survey, Indian Journal of Training and Development, 36(1), Jan-March, 2006, p

34 Table 1.1 illustrates the differences between the Stand alone Institution Software and an Institutional ERP. Through ERP it is now possible to do away with the need for the standalone computer systems in different departments and have a single unified software program divided into software modules that enable a total systems integration which proves to be much more useful and logical. This linking together of different entities ensures that someone in HR can look into the Production software to find out the details of the recommended incentives. Companies have the option of installing ERP software as a totally integrated system spanning all the departments of the organization or they can opt for individual modules like ERP HR or ERP Marketing or any other to start with and then gradually encompass the other departments. Hence companies enjoy a lot of flexibility as far as the usage of ERP is concerned. In the area of Human Resources we can right away think of two most frequently used ERP packages viz. SAP and People Soft. These packages are highly customizable and can address unique needs of companies. Around one hundred and fifty companies in India are currently tuned in to SAP alone. Some prominent names amongst these are ONGC, Asian Paints, L&T, Cadbury, IOC, BPCL, Grasim, Essar, TATA, Jet Airways, GM, Eicher, Bajaj, Wipro, Infosys, Siemens, ICICI, Reliance and many more. It is evident that in the Human Resources arena the use of IT to webenable human resource processes for speed and efficiency is termed 34

35 as e-hr. Holiday homes, conference rooms, guesthouses etc. can be booked in a matter of minutes. One can access the names, contact addresses and numbers of employees across various branch offices and factories of the company across the country. One can readily get information about the seminars, workshops, etc. of fellow colleagues in other locations, and also exchange wishes through e-cards. Latest updates on the stock prices of group companies and information about competitors moves can be availed of without any delay and without any painful waiting periods. E-HRM is a blessing in disguise for companies with scattered operations around the globe with employees required to interact with one another and the administration for various reasons. The cumbersome task of handling huge amount of paperwork manually can be done away with. As is the case with all new systems and concepts, e-hrm too comes with its own set of challenges and issues which require a careful scrutiny before being adopted and launched in any organization. Some of the critical issues and challenges in this context are Cost Implications, Presence of an IT Culture and a Culture of Knowledge Management in the client organization, Security of the Information generated, Training the users and Continuous Monitoring and Feedback. 35

36 CHAPTER 2 REVIEW OF LITERATURE 36

37 CHAPTER 2 REVIEW OF LITERATURE Review of literature was a crucial part of the Desk Research done to gather as much information and data as possible w.r.t. the topic of research. The Desk Research involved collection and review of data from various published and unpublished industry reports, journals, periodicals, books, newspapers, internet, etc. Human Resource Management, a relatively new term emerged during 1970s. The past thirty plus decades have been characterized by the transformation of this role from that of an administrator to, more recently, a critical component in the competitive success of the business. In the 1980s and into the 1990s, the role of the personnel department continued to transform. According to Beer, Michael, et al. [1985] since the inception of modem management theory, the terminology used to describe the role and function of workers has evolved from "personnel" to "industrial relations" to "employee relations" to "human resources." While all of these terms remain in use, "human resources" most accurately represents the view of workers by contemporary management theory: as valuable resources managed in the same manner as other valuable resources. Greenlaw and Kohl [1986] describe three distinct, interrelated fields of interest addressed by the HRM discipline: human relations, 37

38 organization theory, and decision areas. Although the method and degree to which those areas of interest are handled vary among different HRM departments, a few general rules characterize the responsibilities, positioning, and structure of most HRM divisions. In the 1990s several forces were shaping the broad field of HRM and the key force was that the new technologies particularly information technology brought about the decentralization of communications and the shake-up of existing paradigms of human interaction and organizational theory. Satellite communications, computers and networking systems, fax machines, and other devices were facilitating rapid change. According to Broderick & Boudreau [1992], over the years Human Resource Systems have been acknowledged as important inputs of corporate decisions making process. Operational and strategic business objectives are now not being considered in isolation of HR objectives. Hence, Human Resource Systems are now enterprise-wide decision support systems. Traditionally, e-hrm is considered as automated record keeping of employees and computerization of their payroll. However, it is now well established that HR managers with information systems can play a greater role beyond their administrative role. Scarpello et al [1995] posit four factors, the "four Cs," that should be used to determine whether or not an HRM department or individual program is succeeding: commitment, competence, costeffectiveness, and congruence. Revenues and costs per employee, 38

39 when compared to related industry norms, can provide insight into HRM effectiveness. In the opinion of Noe, Hollenbeck, Gerhart and Wright [2000] HR functions can become critical partners in driving success, but to do so requires that HR changes its focus, its role, and its delivery systems. Electronic human resource management (e-hrm) refers to the processing and transmission of digitized information used in HRM, including text, sound, and visual images, from one computer to another electronic device. E-HRM has the potential to change all traditional human resource management functions. Employees do not have to be in the same geographic areas to work together. Use of the internet lets companies search for talent without geographic limitations. Recruiting can include online job postings, applications, and candidate screening from the company s website or the websites of companies that specialize in online recruiting, such as monster.com or hotjobs.com. Employees from different geographical locations can all receive the same training over the company s intranet. It also can increase the speed with which employees can bring a product to market by facilitating communications between employees on virtual teams using internet discussion forums, video and audio-conferencing, and global-scheduling. According to Mark Doughty and Simon Pugh [2000] - today, within the HR software market there are a myriad of HR systems, payroll, training administration, 360 degree feedback, psychological testing 39

40 and competency software tools-typically operating in their own software fiefdoms. Evidence suggests that most organizations fail to recognize that nearly all HR software on the market today is at the foundation level of e-hr. very few organizations have reached the strategic level of e-hr. This involves the development and deployment of tasks that allow managers, employees and HR to use the massive amount of data created and housed within the foundation and service levels of emerging internet technology. The human resource management function has changed dramatically over time evolving. Alfred J Walker [2001] asserts that if HR technology is to be considered successful, it must change the work performed by the Human Resources personnel by dramatically improving their level of service, allowing more time for work of higher value, and reducing their costs. Many systems have been implemented by cutting HR staff, outsourcing and imposing technology on what was left. But Walker argues that survey results demonstrate that overall HR departments have actually upward their staffing levels over the past decade to do the same work. Walker advocates the business process re-engineering the HR function first, then e-engineering the HR work. He suggests the formation of re-engineering teams of providers, customers and users to examine the whole range of HR activities including those which are not being done at present. The end product is a set of processes organized into broad groupings such as re-sourcing, compensation or training and development. These processes should then be 40

41 examined by the re-engineering team and re-designed. From this redesign comes the picture of a new HR function but Walker argues that the most effective approach is to introduce new technology to deal with the redesigned processes. Gordon B. Davis and Margrethe H. Olson [2002] define the scope or domain of management information systems as comprising of a decision support system (DSS) and a knowledge work support system. That part of the information system designed to support organizational operations is an operational support system, the part designed to support decision making is a decision support system (DSS) and the part that supports knowledge work is a knowledge work support system. The information system concept is also broad enough to include information processing support for office work (office automation). A large proportion of employees are knowledge workers ; their duties involve the production and use of information outputs- documents, reports, analyses, plans, etc. Today, computerized processing of transaction data is a routine activity of large organizations. As compared to a data processing system a management information system is more comprehensive; encompasses processing in support of a wider range of organizational functions and management processes. A Management Information Systems (MIS) orientation means users have access to decision models and methods for querying the database on an ad hoc basis. 41

42 According to Biswanath Ghosh [2002], in an organization the most valuable input is the human element. The success or failure of an organization depends to a large extent on the persons who manage and run the organization. In business the greatest asset is the human resource of the enterprise and not the plant, equipment or the big buildings it owns. There was a time when manpower was considered as a cost factor but now it is recognized as an investment. The e-hrm can range from basic personnel records to sophisticated networks of sub-systems with definite purposes. Today most of these will be computer systems. The manpower information system can provide necessary information in a form which can be integrated with any other business data. With most data base systems, there are facilities to pull out any of the data and present them in the required form. According to S.A. Kelkar [2003], the main activities of Human Resources Management where Information systems can be applicable are Employee records and management, Recruitment & promotion, Training, Job rotation, Succession planning, Employee stock options, Evaluation, Compensation and benefits management. Information Systems also facilitate Groupware, Document control, Brainstorming, Collaborative work, Work flow automation. It can definitely be said that Integrated system better than dispersed systems. Enterprise Resources Planning Systems consider systems approach to enterprise and help in planning/ running all business functions. ERP systems support Supply Chain Management systems. Being complex, ERP systems need tuning to fit an organization s 42

43 requirements and their Installation and testing requires assistance from experts. Some popular packages used include: SAP, BAAN, Oracle, PeopleSoft, JD Edwards. According to L.M.Prasad [2003] the concept of computerized HRIS is derived as an organized method of providing information about human resources, their functioning, external factors relevant to managing human resources. Large organizations generally install e- HR because it enables them to collect store, process and manipulate large amount of data inputs, reduce costs of maintaining human resource data, and provide accurate information about human resources anytime and anywhere. In a computerized HRIS various subsystems are interlinked and the outcomes of all the systems are kept in the form of human resource inventory. Whenever a change takes place in any respect of an employee such a change is incorporated in the computer input. E-appraisal and e-recruitment are two of e-hr s latest trends, more out of convenience than pure need: managing of appraisal forms and resumes are one of the biggest headaches for HR practitioners and managers. Something like e-leave, on the other hand is already history, said Jan Wong [2003], business development manager at Prosoft. As a more general trend however, Wong suggests that any e- HR usually reaps quick benefits, including a paperless and more efficient working day for many HR professionals: as organizations become more e-hr savvy, they are beginning to see the benefits almost immediately. 43

44 In the opinion of Michael Armstrong [2003] the e-hr provides the information required to manage HR processes. These may be core employee database and payroll systems but can be extended to include such systems as recruitment, e-learning, performance management and reward. The system may be web-based, enabling access to be remote or online and at any time. The information provided by the e-hr process can be communicated across organizations. If posts static data such as information on HR policies and communications about employer facilities such as learning opportunities and flexible benefits. It can include links that enable managers and other employees to interface directly with HR applications and make changes or enquiries. According to Ketlley P, and Reilly P [2003], technology has only recently developed in a way that enables e-hrm to make its mark, especially the introduction of corporate intranets and web-enabled HRIS. The nature of the development path, however, varies considerably from organization to organization. Before embarking on e-hrm, organizations should review and optimize their business processes. This may be a case of major process redesign, or a more tactical exercise tackling areas of concern. Following a process review, a common next step is to introduce a form of self service. This is likely to involve employee self service, where staff can access their personal record and update it or add new information. Manager self service is usually a logical development, allowing the sign-off of various decisions or proposals. Redesigning the HR function will 44

45 impact on the roles and skills of HR staff. There will be many areas of up skilling as the move away from transactional work gathers pace. This will stretch the capability of staff, not just in terms of technological facility but also in customer and relationship skills. The development of e-hrm systems is growing, allowing the HR function to become more strategic. This can most easily be observed by the fact that today employees tend to ask for advice rather than administrative assistance. This is the reverse of the situation in the late 90s. Furthermore, the nature of HR departments has changed because of the development of e-hrm. A few years ago businesses tended to have more, but less qualified HR staff whereas today the reverse applies said Hun Nam Chung [2003] today s trend is adopting measurement-based management with emphasis on organizational objectives and performance metrics, e-hrm solutions that provide such features along with best practices should be able to deliver results. Once this HR infrastructure is put in place, you may embrace virtual work place initiative to support the increasingly dynamic and mobile workforce. S. Sadagopalan [2004] observes that Information systems to support the personnel function have once again taken the record keeping view rather than the decision support view. Particularly in the Indian context, it is limited to creating large databases often of questionable value and accuracy. Several agencies in the government sector do overlapping functions of collecting the same data. Slowly this trend is changing at least in more enlightened companies. Decision support 45

46 systems that use the database of personnel information to make quick estimates of manpower cost, plan future manpower, plan effective manpower deployment, plan training needs etc. are slowly getting implemented. Exciting ideas like the creation of multimedia databases like personal records that incorporate signatures and pictures are being introduced to provide effective decision support capability. Decision Support systems are systems that support decision making using flexible access to data and models for use by end users; the systems should provide flexible interfaces to support non-routine, unstructured decisions often involving uncertain decision situations and multiple objectives with provision for incorporating the decision maker s individual style of decision making. The distinguishing feature of these systems is their synthesis of data and models in a flexible manner. Laudon and Laudon [2004] explore the digital integration of the firm and the use of internet technology to digitally enable business processes for electronic business and electronic commerce. They focus on new applications and technologies that improve firms relationships with customers and create additional value through closer collaboration with suppliers and other business partners. Talking of Human Resource Information Systems they say that HRIS maintain employee records; track employee skills, job performance, and training; and support planning for employee compensation and 46

47 career development. Strategic level human resources systems identify the manpower requirements (skills, educational levels, types of positions, number of positions, and cost) for meeting the firm s long term business plans. At the management level, human resources systems help managers monitor and analyze the recruitment, allocation and compensation of employees. Knowledge systems for human resources support analysis activities related to job design, training and the modeling of employee career paths and reporting relationships. Human resources operational systems track the recruitment and placement of the firm s employees. Gupta and Chhabra [2004] introduce the Human Resource Management function as a system composed of various sub-systems and strategies, the strategic role of information in Human Resource Management and technology related issues. They describe the various subsystems of Human Resource Information Systems (HRIS) namely compensation Management, relationship management, training and development, Human Resource Planning and analysis and reporting issues and brings to light the contemporary issues in Human Resource Information Systems and its adoption in India. The advantages of Human Resource Information Systems can be identified as Reduced Clerical Effort, Risk Management, Training Management, Financial Planning, Flexible Benefits, Attendance Reporting and Analysis, and Employee Equity Reporting. The twin objectives of any Human Resource Information Systems can be understood as- Operational Efficiency and Effective Managerial 47

48 Decision Making. Of the various recognized forms of HRIS, the four common forms are Concentrated, Distributed, Independent and Hybrid. The choice of the type of HRIS depends upon the-hr strategy and level of computerization in an organization. C.S.V. Murthy [2004] describes Modules of Management Information Systems (MIS), MIS tools and Selection; Structured System Analysis and Design (SSAD) including Tools and Techniques for Systems Development and Systems implementation; Neural Networks in Business including Artificial Intelligence s New Paradigm; Strategic Grid with the Value Chain Model; the ER Model; Information System Security. The Personnel Information System deals with the flow of information about people working in the organization as well as about future personnel needs. An integrated set of files is used by all the personnel administration systems. Some of these are: Employee file, Job file, Job Applicant s file, Accident file, Claims and Injuries file. Leonard Jessup and Joseph Valacich [2004] explore the various kinds of Information Systems and the innovative techniques by which they are being used by organizations for their benefit. To manage Human Resources in a Global Organization several things can be done. First, it is important to hire individuals who are experienced in working in cross-cultural teams, who can speak different languages, and who have the necessary cultural sensitivity to empathize with other cultures. In addition it is also important to hire the proper Information 48

49 Systems leader or Chief Information Officer (CIO) with the ability both to understand the global strategies of the company and at the same time to collaborate successfully with the regional offices to implement those global strategies. The organizational culture needs to be modified to fit the needs of local employees. Finally, the organization as a whole should also be extremely sensitive to the various cultural issues and political problems that exist between people from different countries when they are involved in cross-cultural Information Systems operations. Such sensitivity and awareness can be developed through careful and in-depth research and also by having a diverse mix of employees representing different cultures. According to Garry Dessler [2004], technological applications play an increasingly important role in HR. Technology improves HR functioning in four main ways: self service, call centers, productivity improvement and outsourcing. Using internet the firm s employees can self-service many of their HR transactions such as updating personal information and changing benefits allocations. HR internet and data warehouse provide its managers with desktop access to HR related information such as how does turnover in my department compare to that of other departments. Technology also enabled to create a centralized call centre. The improving productivity through HRIS proves another example. These days more firms are installing internet and computer-based systems 49

50 for improving HR productivity. Technology also makes it easier to outsource HR activities to specialist service providers by enabling service providers to have real-time, internet-based access to the employer s HR database. Susan Foster, Paul Hawking and Andrew Stein [2004] describe that the application of the internet to the Human Resource function (e-hr) combines two elements: one is the use of electronic media whilst the other is the active participation of employees in the process. These two elements drive the technology that helps organizations lower administration costs improve employee communication and satisfaction, provide real time access to information while at the same time reducing processing time. This technology holds out the promise of challenging the past role of HR as one of payroll processing and manual administrative processes to one where cost efficiencies can be gained, enabling more time and energy to be devoted to strategic business issues. The relative quick gains with low associated risk have prompted many companies to realize what can be achieved through the implementation of a business to employee (B2E) model. Employee self service (ESS) a solution based on the B2E model enables employees to access the corporate human resource information system 24 hours a day and 7 days a week. According to Ruel, Bondarouk and Looise [2004], E-HRM is a way of implementing HR strategies, policies and practices in organizations through a conscious and directed support of and/or with the full use of web-technology based channels. W.S. Jawadekar [2005] explains 50

51 all concepts which are used in information systems to make them more effective. It emphasizes the role of decision support systems in Management Information Systems (MIS) and explains the factors behind successful implementation of Management Information Systems within the organization. Organizational Information is the information required by a number of personnel, departments and divisions or the functions in the organization. Such information can be determined by constructing a matrix of information versus the user. It asserts that the information entity is one but its usages are different. For example, the employee attendance information would be used by the personnel department for legal compliance of maintaining the muster recommended by the Factory Inspector. The production manager would use it for scheduling, rescheduling and loading of the jobs on the shop floor depending upon the persons present. The corporate planning and administration will use it for manpower assessment and control and manpower forecasting. James A. O Brien [2005] places a major emphasis on the strategic role of information technology in providing business professionals with tools and resources for managing business operations, supporting decision making, enabling enterprise collaboration and gaining competitive advantage. Human Resource Information Systems (HRIS) are designed to support (1) planning to meet the personnel needs of the business, (2) development of employees to their full potential, and (3) control of all policies and programs. Originally, businesses used 51

52 computer based information systems to (1) produce paychecks and payroll reports, (2) maintain personnel records, and (3) analyze the use of personnel in business operations. Many firms have gone beyond these traditional personnel management functions and developed human resource information systems that also support (1) recruitment, selection and hiring; (2) job placement; (3) performance appraisals; (4) employee benefits analysis; (5) training and development; and (6) health, safety, and security. Gueutal, Stone and Salas [2005] offer practical advice on e-hr for human resource professionals by giving an overview of the major technological trends in e-hr, and demonstrate how to use technology to enhance organizational effectiveness. They trace the transformation of human resources from manual processes to sophisticated CRM and ERP systems and examine the effectiveness of online strategies for attracting talent. They also offer guidelines that can help organizations design, deliver, implement and sustain e- selection systems. Patricia A. K. Fletcher [2005] states that HR has moved from an administrative, support function to the heart of strategic management and the use of technology is the key to that transformation. Fletcher argues that businesses have to adopt a Human Capital Management approach to make the most of any organization s greatest asset: the skills, knowledge and experience of its staff. She described how in the 1990s most large businesses introduced HRIS and that in continuation with re-engineering; this enabled them to replace 52

53 antiquated, time-consuming personnel processes with automation. Fletcher contends that for HR to survive in this brave new world it needs to possess a technology Fletcher instances the creation in some organizations of chief talent officers on talent acquisition and retention. These, like some replacements for traditional HR executives may have no direct experience of human resource management at all. Instead they may have led a line of business and have had P&L responsibility, understand what it means to be accountable for delivering business results. Ayesha Farooq and Nazia Khan [2005] outline the steps in implementing an HRIS. These are: Inception of idea, Feasibility Study, Selecting a project team, Defining the requirements, Vendor analysis, Contract negotiations, Training, Tailoring the system, Collecting data, Testing the system, Starting up, Running in parallel, Maintenance, Audit. E-HR is often characterized as being purely a technological solution, state Martin Reddington, Mark Williamson and Mark Withers [2005], but where it is used and implemented effectively it can be a powerful enabler for broader business change. In simple words they say e-hr refers to the automation of some or all of the current HR processes. The more visionary, advanced interpretations describe a fully integrated organization-wide electronic network of HR related data, information, services, databases, tools, applications and transactions that are generally accessible at any time by employees, managers and professionals. More basic aspirational interpretations 53

54 suggest that an organization s implementation of a new software package for payroll, or the posting of company policies on the internet, signals its adoption of e-hrm. Dr.Aravind.S. & Dr.P.Paramashivaiah [2006] emphasize that human resource is no longer considered a business requirement; rather it has distinguished itself as one of the core assets of any organization. With such a great emphasis on human capital, it is critical for every organization to resort to means that offer quality recruitment solutions at competitive costs. This is where the realm of e- Recruitment starts. The Internet is no longer just a rage; it has now become a very powerful and effective tool at everybody s disposal. E- Recruitment is simply using this tool To Hire the Desired persons. P. Ramasubramanian & Dr. D. Periasamy [2006] have very vividly described the differences between the Stand alone Institution Software and an Institutional Enterprise Resource Planning (ERP) System. Enterprise Resource Planning Systems are specially designed for inter module information sharing. Since all modules use the same database and business logic all the modules can interact with each other seamlessly. Also, generally the data is only accessible only through the software interface in a controlled manner. The server is not in direct access of the users, so critical information is always intact. 54

55 As per Watson Wyatt [2006] e-hr refers to the broad access to human resources data, tools and transactions available directly on the web in most work places today. It describes the net effect of the explosion in web technologies and the dramatic impact this growth has had on the way employees now receive employment-related information through integrated self service applications. It also includes the variety of new technologies available that help connect multiple systems, tools and databases, both inside and outside organizations. The article New research finds e-hr is top priority for a third of UK businesses ( ) talks about the results of a research announced recently by Microsoft Great Plains Business Solutions wherein it has been found that in U.K. nearly a third of companies, 30%, now rank e-hr as their number one e-business initiative. The survey of 500 UK companies explores the growing interest in the use of new technology to enhance HR practices and the gap between the demand for such technology and its current usage in British firms. The findings point to the UK being on the brink of an e-hr explosion, but that business change is still critical. Jeff Sacht [2007] observes that a dramatic change in the employment law arena is forcing Human Resources (HR) to transform its own operations, and its strategic role in contributing to the success of business of all size. Today s business environment along with the 55

56 increasing importance of technology requires smart thinking, quick action and rapid adaptation to constantly changing conditions. The market place increasingly rewards those who respond to the demand for innovation driven by the web and internet, technology advances, globalization, skills shortages, and shifting demographics. This new business landscape means leaving behind old ways of thinking and doing. Technological change is a key driver for HR transformation, providing the foundation to support HR s growing strategic focus. In particular, web and internet technologies have already given workers direct access to each other, to HR, and to business information with such ease and intelligence that every worker can contribute more directly to business results. In the view of K. Aswathappa [2006] people management has traveled a long way, from purely handling industrial disputes; it grew into personnel management which matured into human resource management. Of late, HRM is transforming itself to human capital management. What is to be underlined is that technology also travels along with the management of people in organizations. If HR s role has been to deliver workforce support and management based on the needs of the business, the role of technology has been one of enabler. When HR departments make use of the internet and related technology is to support their activities, the process becomes e-hrm (where e-stands for electronic). During the past years, HR processes and procedures have been supported by everything from complicated 56

57 file folder systems to automation, going from usage of multiple systems and data bases to a single version of the whole system. A.K. Gupta broadly explains Human Resource Management Information System as a system that supports the planning, control, co-ordination, administration, and management of an organization s human resources. E-HR also includes a large number of subsystems that address the information needs of various human resource functions. Since e-hr also facilitate vital information on matters such as payroll, central and state taxes, health benefits, child care, grievance procedures and other personal information that affects employees personal and professional lives, it is imperative that these systems be highly responsive to employee needs. Although many people believe that e-hr can be used only to enhance HR decisions, in fact they can be used to cut costs, increase efficiency, and achieve a competitive edge in the market place. Also the system links the performance of an individual to items such as past training, educational background, and work history so that managers can be better equipped to make such decisions. It is quite startling that every corner you turn, every page you flip and every other business call you take, some company or some product has become e-enabled. Rob Scott [2008] wonders whether the human resources (HR) fraternity had been caught napping, or if it had in fact pondered and debated this fast-growing reality. There is a fair amount of e-hr 57

58 around. If one would separate the HR function into two broad components, namely transactional and non-transactional activities, then it is easy to envisage the transactional components being e- enabled. In most of the non-transactional HR activities, a continuum of e-possibilities exists. The conservative point on the continuum would suggest that no electronic mechanisms should be used to replace people activities, while the radical view on the continuum would suggest that technology could replace all direct human interaction with the HR customer. The most public response to this dilemma is that people cannot be removed from the equation unless you want to create a cold and uninviting work environment. But this is the same argument used when computer-based training (CBT) was rearing its head as an alternative to traditional classroom-based training. Screams of horror were heard from trainers who argued that people could not learn via a computer screen. In reality, CBT has proven itself a very suitable and cost-effective e-method, and as modern software development tools emerge. The debate is not around whether the non-transactional activities can be e-enabled or not- clearly it can be done, and as technologies such as neuro-networks improve, it will enable more human activities to be done via electronic, internet or mobile technologies. The debate for HR is whether the human interaction role currently played by HR staff adds any value to the employee, the organization or the work environment, which could not be done by technology. The bottom line is that services such as employee counseling and legal issues, which 58

59 are definite outsourcing opportunities for organizations, and are likely to remain mainly human intensive activities, are not currently suitable to be e-enabled. It would be a sad day to see a colleague sending an request to the performance management computer system for a review on a proposed demotion. A major finding of the Cedar Crestone Survey [ ] is that HR technologies are increasingly important to business leaders. The first Cedar Crestone Asia Pacific-APAC HR Systems Survey [ ] discovered that the number one business initiative for APAC survey respondents is a focus on metrics and analytics and Self service and moving to an HR service centre approach enables organizations to serve more employees with their HR staff. A Review of Literature in context of e-hrm revealed that a number of studies have been conducted in the western countries w.r.t. e-hrm whereas not much evidence is found in the Indian Scenario regarding the usage and feasibility of the concept. In the existing Indian literature pertaining to e-hrm the focus is on areas like Payroll and Recruitments whereas other areas like Career Planning, Succession Planning have not been covered extensively. No extensive study on Issues and Challenges of e-hrm Practices in Indian Companies has been identified. 59

60 CHAPTER 3 OBJECTIVES OF THE RESEARCH 60

61 CHAPTER 3 OBJECTIVES OF THE RESEARCH 3.1 Problem Definition HR research is undertaken to seek answers to a problem faced by the organization in HRM which cannot be solved without undertaking research. Therefore in formulating the research the most important step is to define the problem clearly and specifically. Practice based e-hrm started earlier than academic research into e-hrm. Although the human resource (HR) function was an early adopter of computing technology, it spent the last decade playing catch-up to other business functions in terms of integrating information technology (IT) into their processes. During the nineties, organizations became experienced in using IT for human resource management (HRM). As within other business functions, IT has become an important tool for supporting the processes of the HR function and the HR function is now closing the gap in terms of applying new IT capabilities to traditional functions. Distributors of the e-hrm technology promise several advantages an organization can benefit from when using these technologies. In practice however, the results mentioned are often not achieved. As the promises of the vendors of e-hrm technology are not achieved and the investments to be made in e- HRM are high, research can be of value for identifying the reasons for not achieving these promises. 61

62 Two main approaches for the research into e-hrm can be identified. These approaches are related to the research fields of Information Technology and Human Resource Management. As different authors look with different perspectives into e-hrm, it is hard to capture the essence of e-hrm - whether it is just an IT tool or a new strategy for HRM? The primary proposal of any e-hrm solution is to diminish costs of HR transactions, condense time value and make resources easily available for utilization, which almost every e-hrm solution promises to give. A research framework is designed in order to determine how far the primary designs of the e-hrm solutions work in an organization. How well it has established its significance among the employees of such an organization which makes use of the e-hrm technology. With the determination of these facts the researcher can come to a conclusion whether e-hrm technology has achieved the promises made. 3.2 Importance of the Research Through this research an endeavor has been made to identify the challenges involved in achieving administrative/service excellence by companies through e-hrm and also the challenges of moving towards performance excellence. By understanding and overcoming these challenges, companies can be successful in achieving the primary objective of any e-hrm venture i.e. to diminish costs of HR transactions, condense time value and make resources easily available for utilization. 62

63 3.3 Statement of Objectives es The objectives of this research are: To trace the emergence of e-hrm in the global arena. To present the overview of the e-hrm functioning in the Indian scenario. To identify the underlying factors and pre-requisites for the success of an e-hrm venture. To identify the challenges associated with the implementation and maintenance of e-hrm systems. Offering recommendations and suggestions for enhancing the effectiveness of e-hrm systems. 63

64 3.4 Statement of Hypotheses H 01 : There is no significant difference between groups and within groups w.r.t. the considered driver for introducing e-hrm systems in companies. H 02 : There is no significant difference in usage of e-technology for the considered HR function between Services vs Manufacturing groups. H 03 : There is no significant difference in the usage of e-technology for the considered HR function between MNC vs Non-MNC groups. H 04 : There is no significant difference in the usage of the considered HR Service Delivery Tool between Services vs Manufacturing groups. H 05 : There is no significant difference in the usage of the considered HR Service Delivery Tool between MNC vs Non-MNC groups. H 06: There is no significant difference between Services vs Manufacturing groups regarding their perception of their company s position in the e-hrm journey today. H 07: There is no significant difference between MNC vs Non-MNC groups regarding their perception of their company s position in the e-hrm journey today. H 08 : There is no significant difference between groups and within groups w.r.t. perception of respondents regarding their company s position in the e-hrm journey today. 64

65 H 09: There is no significant difference between Services vs Manufacturing groups regarding their perception of their company s position in the e-hrm journey after five years. H : There is no significant difference between MNC vs Non-MNC groups regarding their perception of their company s position in the e-hrm journey after five years. H : There is no significant difference between groups and within groups w.r.t. perception of respondents regarding their company s position in the e-hrm journey after five years. H : There is no significant difference in the perception of the Services group regarding their company s position in the e-hrm journey today vs after 5 years. H : There is no significant difference in the perception of the Manufacturing group regarding their company s position in the e-hrm journey today vs after 5 years. H : There is no significant difference in the perception of the MNC group regarding their company s position in the e-hrm journey today vs after 5 years. H : There is no significant difference in the perception of the Non- MNC group regarding their company s position in the e-hrm journey today vs after 5 years. H : There is no significant difference between groups and within groups w.r.t the considered barrier to progress in the e-hrm journey. 65

66 H : There is no significant difference in the expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs between Services vs Manufacturing groups. H : There is no significant difference in the expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs between MNC vs Non-MNC groups. H : There is no significant difference in the expectation of respondents w.r.t. the benefits from e-hrm justifying the expenditure on the same between Services vs Manufacturing groups. H : There is no significant difference in the expectation of respondents w.r.t. the benefits from e-hrm justifying the expenditure on the same between MNC vs Non-MNC groups. H : There is no significant difference in overall opinion on the considered aspects of e-hrm between Services vs Manufacturing groups. H : There is no significant difference in overall opinion on the considered aspects of e-hrm between MNC vs Non-MNC groups. 66

67 CHAPTER 4 RESEARCH METHODOLOGY 67

68 CHAPTER 4 RESEARCH METHODOLOGY This research is largely exploratory in nature since the concept of e- HRM is relatively new especially w.r.t. the Indian Scenario. The research is supported by quantitative analysis and findings. A broad overview of the Research Methodology for this study is presented in the following Survey Process Chart: Figure 4.1 SURVEY PROCESS CHART Understanding the Issues Descriptive Survey Review of Literature Web Search Field Survey Research Instruments Sampling Design Collection of Data Analysis of Data Presentation of findings, recommendations and conclusions 68

69 4.1 Understanding the issues: Initial discussions with some HR executives/it Professionals/Systems Experts were held to get a feel of the issues involved and to confirm the relevance/feasibility of the study. 4.2 Descriptive Survey: Review of literature and other available information: Data from various published and unpublished industry reports, journals, periodicals, books, newspapers, etc. (including databases like EBSCO, Pro-quest, India Business Insight Database and others). Net search was conducted to add relevant information to the secondary sources. Websites of several companies were searched to hunt out case studies which would be relevant to the context of the study. This was done with a view to enabling an in-depth examination of the issue under consideration and to generate new ideas and suggestions. A careful examination of the e-hrm systems in various organizations has helped in widening the arena and an objective analysis of the issue under consideration. The descriptive survey helped in preparing the ground-work for the next step i.e. the field survey. 69

70 4.3 Field Survey Research Instruments The research instruments used for collecting primary data were: - Questionnaire and - Interviews (a patterned interview approach) The questionnaire (REFERENCE SECTION) comprises of questions pertaining to:- Ranking of the possible drivers for introducing e-technology to the HR systems. Ranking of the barriers to progress in the e-hrm journey. Usage of e-technology for the HR functions. For this purpose 18 HR functions were specified. These are- Recruitment and Selection, Payroll Management, Leave Management, Attendance Management, Manpower Planning, Communication, Training and Development, Performance Management, Induction, Selecting Benefits, Compensation Planning, Competency Mapping, Career Planning, Succession Planning, Employee Transition, Travel Management, Exit Management and Maintaining Employee Records. Usage of HR Service delivery tools like ESS, MSS, Web 2.0, Intranet and e-learning Portal. 70

71 Nature of Sourcing solutions adopted by companies for enabling e-technology to HR systems- In-house/Outsourced/ Software-as-a-service. Perception of respondents on a five-point scale regarding their company s position in the e-hrm journey today vs after 5 years. The scale ranges from Neither understand nor value e- HRM to Complete incorporation of e-hrm strategy into the business model. Expectation of respondents w.r.t.- - The e-hrm system being successful in satisfying employees in their HR needs - The benefits from e-hrm justifying the expenditure incurred on the same. Opinion of respondents on various aspects of the e-hrm functioning- Resource Management, Compensation and Rewards, Performance Management, Training and Development, Employee Relations and some general aspects like user-friendliness, timeliness, etc. A five-point scale with the following degrees was used- Strongly disagree/disagree/undecided/agree/strongly agree. Open ended questions were also included in the questionnaire to assess the pre-requisites and challenges of e-hrm and to elicit suggestions from respondents. 71

72 4.3.2 Sampling Design The analysis of data is based on the following classification: - Services Sector including- Accounting/Consulting/Taxation; Airlines & Aviation; Banks; Export Houses; Financial Services; Hightech Services; Hospitals/Healthcare; Hotels/Resorts; Insurance; Law/Legal Consultants; Management/Engineering /Environment Consultants; Media/Entertainment; Mutual Fund/Stock Broking; Office Automation; Placement /HR Training Consultants; Retail; Security; Travel & Tourism. Manufacturing Sector including- Auto Ancillaries/ Auto components; Automobiles; Capital Goods/Machine Manufacturing; Cement; Chemicals; Consumer Goods - Durables/Home Appliances; Electrical & Electronics; Engineering; FMCG; Food Processing/Beverages; Garment/Textiles/Accessories; Gems/Jewelleries/Watches; Iron and Steel; Leather Shoes/Accessories ; Metals/Mining; Paints; Petrochemicals/Oil/ Gas/Refineries; Pharmaceuticals/Bio-tech; Power/Energy; Rubber/Plastic/Glass/Wood; Sports & Toys. A classification of companies into MNCs and Non-MNCs has also been taken for analysis. 72

73 Sample Unit A company which has adopted e-hrm (at least three HR functions being run on e-technology and planning to go further), represented by a manager or Director responsible for HR functions Sample Size: based on assumption of infinite population Since the total population i.e. the number of companies in Maharashtra was not known the sample size on the assumption of infinite population was calculated to be (Refer annexure I). The sample units were identified using Judgement and Convenience Sampling and a list of 1000 companies was prepared. The classification of the sample units was- Services Sector: 344 Manufacturing Sector: 656 Total: 1000 The classification of the sample units into MNC and Non-MNC was- MNC: 170 Non-MNC: 830 Total:

74 4.3.3 Data Acquisition stage Questionnaires were forwarded and responses obtained from the sample units. It was mentioned in the questionnaire that the identity of the respondents would be kept confidential. Interview method was also used to collect data. The interviewees were briefed about the purpose of the interview and its scope in advance so that they would be ready with the necessary details and data. This approach was adopted to overcome the time constraint since all the respondents were executives in companies holding crucial positions and having limited time to spare. In conducting these interviews a structured interview approach was used to avoid wastage of time. A focused interview approach was also used to gain an in-depth insight into the issue of concern and to gain a wider perspective on the subject of study. In certain cases it was not possible to meet the respondents personally so that the researcher had to depend upon telephonic interviews. 74

75 4.4 Data Analysis stage Data and Information collected both from Primary as well as Secondary sources was tabulated and summarized so as to draw logical conclusions. As per the research design the analysis of data is based on the classification- Services Sector/ Manufacturing Sector, hereafter referred to as Services group / Manufacturing group respectively. A sub-classification into MNC/ Non-MNC is also taken for analysis, hereafter referred to as MNC group/ Non-MNC group respectively. Appropriate Statistical tools including Chi-Square Test, t-test, ANOVA wherever applicable have been applied to draw logical conclusions from the data. 4.5 Presentation of Findings, Recommendations and Conclusion: The findings, recommendations, etc. have been presented in the latter part of this report. 75

76 4.6 Limitations of the Research The primary research was confined only to Maharashtra due to cost and time constraints. The primary research is based on companies only in the private sector. The e-hrm scenario in the public sector has been covered to a limited extent through secondary research (refer Chapter 8: The Indian e-hrm Scenario). The sampling units were identified using Judgement and Convenience Sampling. Since the total population of companies (Private Sector) in Maharashtra was not known, the formula for calculation of sample size was based on assumption of infinite population. Findings are based on the assumption that the respondents have revealed the correct information. 76

77 CHAPTER 5 INTEGRATION OF HR WITH TECHNOLOGY ENVIRONMENT 77

78 CHAPTER 5 INTEGRATION OF HR WITH TECHNOLOGY ENVIRONMENT Of all resources at our disposal human resources is the most vital because its activities control all other resources. Formulating a strategy so as to ensure that adequate number of right type of people are selected and made available at right time for carrying out the various activities of the organization. Whether in industrial or service sector the organization requires men, materials and equipments. Organization depends more upon the man as it is the independent resource and the efficiency of an organization is determined through their human resources. Therefore the primary duty of the management is to establish the total human resource into the logical groups to discharge various managerial, Supervisory, skilled & unskilled functions of various disciplines and activities through organization structure. Historically, the information technology was used in selective areas and functions. But at present it has increased the velocity of information flows through organization and handles multiple tasks at a time and serves as a support tool for decision-making. Technology and HR are enablers of business. Integration of the two would mean not only harmonious co-existence but also leveraging one for the other. Leveraging of technology for HR would mean digitizing the HR activities and automating transactional activities related to recruitment, performance management, career planning, and 78

79 succession planning, training and knowledge management. Leveraging HR for technology implies managing change associated with technology by way of communication, training, hiring, retraining, analysis and conscious keeping. Thus they can play complementary roles. In recent times, technology has become synonymous with information technology, as hardly any other technological development of the past would have impacted all spectrum of business as information technology has impacted. Irrespective of the kind of business you are in i.e., services or goods, commodity or branded, trading or manufacturing, contemporary or traditional deployment of information technology in one form or the other is a foregone conclusion. To manage and deploy technology in an effective way, all business Organizations would need knowledge workers. Managing of these knowledge workers is the responsibility of HR function. Hence the integration of technology and HR is an absolute must. Having understood technology and HR in the present context we must understand integration in this context. Integration would not only mean harmonious co-existing but would also mean one enhancing and complementing the other i.e., technology is used to enhance effectiveness of HR and HR functions helps in adopting and managing change brought in by technology deployment. 79

80 5.1 The Evolution of Technology and MIS The evolution of Technology vis-à-vis the Industrial Revolution can broadly be classified in terms of following three phases- Pre-industrial revolution: Exploit material Industrial revolution: Exploit energy Post-industrial revolution: Exploit information Figure 5.1 Technology and Industrial Revolution Source: S.A. Kelkar, Management Information Systems, A Concise Study, Prentice Hall of India Private Limited, 2003, p.3. Figure 5.1 illustrates the phases in the evolution of technology vis-àvis the Industrial Revolution. 80

81 The wide variety of computer resources to perform transaction processing for a formal information and reporting system and to accomplish managerial-decision support are broadly classified as the organization s management information system or MIS. Figure 5.2 Functional subsystems in an MIS used by a manufacturing concern Marketing Production Logistics Personnel Finance and Accounting Information Processing Top Management Data base Management Systems Data base Source: Gordon B. Davis and Margrethe H. Olson, Management Information Systems- Conceptual Foundations, Structure, and Development, Tata McGraw-Hill, New Delhi, 2002, p.15. Figure 5.2 depicts that MIS may be viewed as a federation of information systems- one for each major organizational function. These are Marketing, Production, Logistics, Personnel, Finance and Accounting, Information Processing and Top management. 81

82 Figure 5.3 Relation of activities to functional subsystems Source: Gordon B. Davis and Margrethe H. Olson, Management Information Systems-Conceptual Foundations, Structure, and Development, Tata McGraw-Hill,New Delhi, 2002, p.16. The structure of an information system can also be viewed in terms of the subsystems which perform various activities. These are Transaction Processing, Operational Control, Management Control and Strategic Planning (Refer Figure 5.3). MIS plays a very important role in creating organization behavior which in turn sets the goals for achievement. Technology and people decide the organization structure and style of the management. 82

83 Figure 5.4 Organizational Behavior and MIS Source: W.S. Jawadekar, Management Information Systems, Tata McGraw Hill Publishing Company Limited, 2005, p.48. Figure 5.4 explains the impact and relationship of MIS on the organization behavior in terms of modifying the organization motivation, learning and changes. 83

84 5.2 Human Resource Information Systems The key features of a HRIS are depicted in the following figure- Figure 5.5 The key features of a HRIS Source: P.K. Gupta and Sushil Chhabra, Human Resource Information Systems Himalaya Publishing House, 2004, p.48. Figure 5.5 illustrates the key features constituting a HRIS. These are - Human Resource Data Bank, Administration, Planning Activities and Strategic Planning. Continuous Environmental Analysis is also a key requirement. 84

85 Figure 5.6 HRIS Acquisition Phases Source: P.K. Gupta and Sushil Chhabra, Human Resource Information Systems Himalaya Publishing House, 2004, p.53. Figure 5.6 illustrates the three HRIS Acquisition Phases Need Analysis, Design and Development and Implementation and Maintenance. 85

86 The Personnel Information System deals with the flow of information about people working in the organization as well as about future personnel needs. An integrated set of files is used by all the personnel administration systems. Some of these are- Employee file; Job file; Job Applicant s file; Accident file and Claims and Injuries file. Employee file: provides data relevant to many aspects of employee supervision and administration as well as for workforce planning. Table 5.1 Data and data items of employee file Data (i)identification Data (ii)performance Data Data Items Employee number (File key), name, addresses, telephone numbers, job code, location, shift, citizenship, pointer to next record with same job and location code. Last review date, review type, rating, promotability date, next job, comment, next review date, days tardy, days absent without prior approval, idle time as percentage of total, earned hours as percentage of actual hours. (iii)benefit Data (iv) Skills Data (v) Payroll data (vi)affirmative Action Data. (vii)termination Data Life insurance policy type, effective dates, coverage, pay roll deduction amount, health insurance policy type, effective dates, coverage, retirement plan type code, eligibility date, plan service date, vesting date, pension option date, projected retirement date, projected benefit payment. Lost job title, location, reported to name and position, employer, last pay rate, date left position, reason, months in position, pointer to job history file, highest formal education level, year received highest degree, school major, pointer to education history file, language skill codes, technical skill codes, relocation constraint codes. See payroll system. Race, sex, age, religion. Position at the time of termination, department, part time, reported to name and position, pay rate, months in position, pointer to job history file, date of termination, date notice given, last day of work, termination type code (voluntary, misconduct etc), specific reason code, rehire eligibility, exit interview, comments and codes, date claim protest lodged, date of response to protest and outcome, date of appeal. Source: C.S.V. Murthy, Management Information Systems, Himalaya Publishing House, 2004, Pg Table 5.1 illustrates an Employee file in which the data are grouped under seven headings. 86

87 A typical human resources Transaction Processing System for employee record keeping is illustrated in Figure 5.7 Figure 5.7 An employee record system Source: Kenneth C. Laudon and Jane P. Laudon, Management Information Systems- Managing the Digital Firm Prentice Hall of India Private Limited, 2004, p.50. An employee record system (figure 5.7) maintains basic employee data, such as the employee s name, age, sex, marital status, address, educational background, salary, job title, date of hire, and date of termination. The system can produce a variety of reports, such as lists of newly hired employees, employees who are terminated or on leaves of absence, employees classified by job type or educational level, or employee job performance evaluations. Job file: provides job descriptions covering qualifications, duties and responsibilities. (Refer Table 5.2) 87

88 Data Identification Data Position Description Data Budget Data Performance Data Data Items Table 5.2 Data and data items of job files Location code, job code, shift (all three are file keys), cost centre account number, job title, current number of employees, pointer to first employee record. Summary statement of duties, specific duties, experience, qualifications, educational qualifications, required references, supervisor (name, job code, location) pay range and scale, number of equivalent full time positions authorized, current unfilled positions, cut-off date. Labor hours (budget and actual) (past, current, future periods) Average labor cost/hour Average related expense/hour Total labor cost Total related expense Pointer to next job in same cost centre Turnover rate, tardiness, frequency, absenteeism in frequency Source: C.S.V. Murthy, Management Information Systems, Himalaya Publishing House, 2004, Pg Table 5.2 shows the data items of job files under four broad categories. Job applicant s file: Table 5.3 Data and data items of job applicants file Data Data Items Applicant Identification Data Work History Data Education Data Application Status Data Covers location code, shift, job code, applicant serial number (all in file keys) name, pointer to next name in alphabetical order, address, and telephone. Covers last job title, location, reported to name and position, employer (name, address, telephone), last pay rate, date terminated (or still on job?), months in position, months with the last employer, reason for leaving, relocation constraint code. Covers highest formal education level, year received highest degree, school, major, language skill code, technical skill code. Covers how was the applicant reached? Initial screening results, Interview (date, interview results), notification (date, notice sent, sender). Source: C.S.V. Murthy, Management Information Systems, Himalaya Publishing House, 2004, Pg Table 5.3 shows the data and data items of job applicants file. The application identification data identifies the data and the job for which he or she is applying. The application status data records the actions taken on the written application. 88

89 Accident file: contains a record for each reportable accident. It is usually an event for which the organization may be held responsible for damages. Data (i) Time and Place Data (ii) Characteristics Data (iii) Effects Data Table 5.4 Accidents file data and data items Data Items Serial number (file key), date of accident, date reported, time of accident, day of week, physical location of accident, responsible cost centre, responsible supervisor. Accident type code (preventable), hazard condition code, unsafe act, mechanical failure, vehicle number (motor vehicle accident (MVA type), pavement condition (if MVA type), weather, pointer to claims and injury file. Report made to government agencies, corrective actions taken. Total property damage, total medical expenses, total lost work time, other expenses. Source: C.S.V. Murthy, Management Information Systems, Himalaya Publishing House, 2004, Pg Table 5.4 depicts the constituents of an Accident file. Claims and injuries file: These may be insurance claim recorded by the organization under insurance policies or they may be claimed by employees under group insurance policies managed by the organization. Table 5.5 Claims and injuries file data and data items Data (I) To-Data (ii) From-Data (iii) Basis-Data (iv)when-data (v) Amount- Data Data Items Relation to organization (employee, customer etc), name (both are file keys), employee number (if any), address, telephone, social security number. (in USA) Payment by company, insurance policy involved, general ledger account. Claim type, injury or damage code, description of property damages, safeguards provided, safeguards used, pointer to accident file, pointer to next claim for same accident. Date claim filed, date of final settlement. Expense type code, actual cost and insurance reimbursement amount. Source: C.S.V. Murthy, Management Information Systems, Himalaya Publishing House, 2004, Pg The data and data items in a Claims and injuries file may be as per Table

90 5.3 Advantages of HRIS Human Resource Information Systems maintain employee records; track employee skills, job performance, and training; and support planning for employee compensation and career development. Table 5.6 Examples of Human Resource Information Systems System Description Organizational Level Training and Development Track employee training, skills and Performance Appraisals Operational Career pathing Design Career paths for employees Knowledge Compensation analysis Monitor the range and distribution of employee wages, salaries and benefits Management Human Resources Planning Plan the long term labor force needs of the organization Strategic Source: Kenneth C. Laudon and Jane P. Laudon, Management Information Systems- Managing the Digital Firm Prentice Hall of India Private Limited, 2004, p.50. Strategic level human resources systems (Table 5.6) identify the manpower requirements (skills, educational levels, types of positions, number of positions, and cost) for meeting the firm s long term business plans. At the management level, human resources systems help managers monitor and analyze the recruitment, allocation and compensation of employees. Knowledge systems for human resources support analysis activities related to job design, training and the modeling of employee career paths and reporting relationships. Human resources operational systems track the recruitment and placement of the firm s employees. 90

91 The advantages of HRIS can be identified as Reduced Clerical Effort, Risk Management, Training Management, Financial Planning, Flexible Benefits, Attendance Reporting and Analysis, and Employee Equity Reporting. Figure 5.8 The uses of an HRIS system (by sub-system) system) Source: P.K. Gupta and Sushil Chhabra, Human Resource Information Systems Himalaya Publishing House, 2004, p.46. Figure 5.8 illustrates the uses of an HRIS system (by sub-system). 91

92 The primary objective of HRIS is to function as an efficient and responsive system for managing the human resource of the organization providing complete timely and accurate information for HRM and analysis. Figure 5.9 HRIS Objectives HRIS OBJECTIVES Efficiency in handling administrative tasks Efficiency in managerial decision making Routine HR tasks Improved Communication Transparency Flexibility Efficient HR Planning Effective Data Management HR Information Consolidation HR Process Automation Source: Industry Sources Figure 5.9 depicts the twin objectives of any HRIS system- Operational Efficiency and Effective Managerial Decision Making. These can be further broken down into sub-objectives as shown in the figure. 92

93 5.4 A Generic HRIS Model The structure of HRIS depends upon the nature and size of the organization. It is logical also because the HRIS is viewed from a strategic perspective by most of the HR managers and practitioners. Since the HR strategy is unique to the organization, its HRIS model will be customized. Figure 5.10 A Generic HRIS Model Source: P.K. Gupta and Sushil Chhabra, Human Resource Information Systems Himalaya Publishing House, 2004, p.47. For large organizations the HRIS model includes the generic structure as shown in Figure

94 5.5 A Matrix of Information Vs User Organizational Information is the information required by a number of personnel, departments and divisions or the functions in the organization. Such information can be determined by constructing a matrix of information versus user as shown in Table 5.7. Table 5.7 Matrix of Information versus User for a Personnel Function Information entity Employees Attendance Salary, wages and overtime Human resources information Manager (Personnel) Manager (Production) Manager (Administration) X X X - X X X X X X X - Manager (Accounts) Source: W.S. Jawadekar, Management Information Systems, Tata McGraw Hill Publishing Company Limited, 2005, pg.153. It can be observed from Table 5.7 that the information entity is one but its usages are different. For example, the employee attendance information would be used by the personnel department for legal compliance of maintaining the muster recommended by the Factory Inspector. The production manager would use it for scheduling, rescheduling and loading of the jobs on the shop floor depending upon the persons present. The corporate planning and administration will use it for manpower assessment and control and manpower forecasting. 94

95 5.6 HRIS and the Strategic, Tactical and Operational use of Human Resources HRIS Systems are designed to support (1) planning to meet the personnel needs of the business, (2) development of employees to their full potential, and (3) control of all policies and programs. Originally, businesses used computer based information systems to (1) produce paychecks and payroll reports, (2) maintain personnel records, and (3) analyze the use of personnel in business operations. Figure 5.11 Human resource information systems support the strategic, tactical and operational use of the human resources of an organization Staffing Training and Development Operational systems Strategic systems Human resources planning Labor force tracking Succession planning Performance appraisal planning Contract costing Salary forecasting Tactical systems Labor cost analysis and budgeting Turnover analysis Training effectiveness Career matching Compensation effectiveness analysis Benefit preference analysis Operational systems Recruiting Workforce planning/ scheduling Skill assessments Performance evaluations Payroll control Benefits administration Source: James A. O Brien, Management Information Systems, Tata McGraw Hill Publishing Company Limited, 2005, p

96 Many firms have gone beyond the traditional personnel management functions and developed human resource information systems (HRIS) that also support (1) recruitment, selection and hiring; (2) job placement; (performance appraisals; (4) employee benefits analysis; (5) training and development; and (6) health, safety, and security. (Refer figure 5.11). The great leap forward of web technologies during the past few years has lead to the birth of Electronic Human Resource Management (e- HRM) which is a much more powerful enabler in transforming the role of Human Resource (HR) from an administrator to the more value adding role of a business partner. 96

97 CHAPTER 6 E-HRM AN OVERVIEW 97

98 CHAPTER 6 E-HRM HRM: AN OVERVIEW Growing awareness about e-hrm has lead to the growth of several software products and solutions providers. They specialize in delivering next-generation enterprise applications in the areas of Web-based Human Resources Alignment, Employee and Manager Self Service and Strategic HR Practices like erecruitment, Performance Management and Training Administration and also on Workflow Automation. Figure 6.1 HR Processes covered by e-hrm e - A broad Overview HCM PORTAL Reports & Analytics Organization Structure HR Administration Selection & Recruitment Personal Data Employee Lifecycle Employee Self Service Time & Attendance Portal Management Timesheet Performance Management Shift Planning Training Management E R P Payroll Help desk Policy Compliance Work flow engine Source: Industry Sources Figure 6.1 gives a broad overview of the HR processes covered by e- HRM. 98

99 THE GAMUT OF e-hrm e (Constituents of e-hrm) e 6.1 HR Administration Routine HR administration activities and events now get a technology edge that makes information available on the go. Areas like HR Data Maintenance can now be automated with individual needs customized, hence enhancing the power to human resources for maximum output. Some of the features include- Aligning HR Services to organizational vision, maintaining HR Data, managing employee and employment records, maintaining data masters at multiple levels and others. 6.2 Employee Life Events Employees experience multiple events and changes throughout their careers that can result in anxiety and loss of productivity, such as transfers, promotions, mergers, medical leave, relocation and separation. The Personal Information Management System (PIMS) module helps both employees and HR professionals effectively manage change for all critical employee transitions by providing- Completely customizable portals for socialization and efficient delivery of all relevant information; Employee joining process management; Smoothen inducting employee into the organizational culture and 99

100 habitat with induction plan and schedule; Robust task management to have a defined process; Electronic forms capability to eliminate errors and speed time to completion; Reduced administrative burden of paperwork and managing tasks. Figure 6.2 Confirmation with Appraisal- automatic initiation Confirmation Approval Confirm as per due date Regret Approve/Reject Confirmation Appraisal Extend Probation Period 2. On rejection, it will be sent to the previous level Appraisal Initiation 1. On Approval, notification will be sent to the employee Source: Industry Sources Figure 6.2 shows automatic initiation of Confirmation with Appraisal process. Personal Information Management: Personal details / Qualification details/ Remuneration details/ Attachments. Employment Data: Current Employment/ Past Employment/ Training Data HR Management: Position Management/ Employee Creation/ Employee confirmation/ Employee Separation/ Portal Management 100

101 6.3 E-recruitment E-recruitment turns recruitment hassles into a faster, simpler, more effective process. Not only is recruitment across locations aligned with organizational benchmarks, but right talent and position requirements, and their goals and performance are standardized. Recruitment Master: City Master Careers / Location Master Careers / Region City Mapping / Career Role Master / Functional Role Mapping Vacancy management: Create Vacancy / Group Vacancy / Post Vacancy / Publish Vacancy. Resume Screening: My Vacancies / Resume Search And Short Listing / Resume Screening By Manager / Resume Search. Interview management: Schedule Interview / My Interview Schedule List / Batch Master / Schedule Test / Test Code List / Test Result / Interview Feedback / Candidate History. Candidate Selection: Make Offer / Offer Acceptance / Employee Creation / Offer Document Checklist / Generate Appointment Letter / Compensation Template. Consultant: Create Incentive / Consultant Summary / Billing / Candidate Registration / Consultant Registration Approval / Consultant Reimbursement Rating. Career portal: Hot Links / Vacancy Tags. 101

102 Figure 6.3 The e-recruitment e System Resume Search & Short listing Schedule Test/ Interview Interview Feedback Make Offer Resume posted by external candidates, internal employees, Recruiters Offer Acceptance Approved vacancies posted on the job board Prejoining Activities Vacancy Creation Create Employee Master Setup Generate Appointment Letter Source: Industry Sources Figure 6.3 illustrates the steps in the process of e-recruitment. 6.4 Training Management Right Skills at the right time change everything. Training management involves the following- Create training courses across locations and specific groups; Build an annual training calendar; Identify training needs as a part of appraisal; Create / Assign training for identified 102

103 training needs; Communicate schedule and full course details to employees and invite nominations from employees, manager; Assign trainers and venues and generate related correspondence; Tract attendance; Record faculty and participant feedback; Track undersubscribed course and view course details for corrective action; Generate reports to track training costs; Track the effectiveness of training post the actual training program; Add training records and employee data; Record both internal and external training. Figure 6.4 Training System Participants Attend Training Attendance Training Record Creation Training Appraisal Mapping Nomination by Manager / Self/Training Faculty Course Cost Entry Course Schedule / Reschedule CPE / CPD Master Course Registration Faculty Evaluation Master Setup Participant Feedback Training Details updated in Employment details Post Training Feedback Source: Industry Sources Figure 6.4 illustrates a comprehensive training management system. 103

104 6.5 Performance Management System Performance rating is no longer a grey area. Alignment gives it a clear vision with well-defined goals and measurement against objectives. The process of alignment will be complete only when it is linked to the same measures at the beginning of the process and at the end of the process: goal setting at the start of the process and performance normalization in keeping with organizational performance for the period at the end. This has to cascade to all levels within the organization. The process clarity and transparency would make every employee focus and work with one goal in mind. Performance rating can be communicated to the employee and with a click be made part of the employment data, enabling easy retrieval in the future. Goal Setting A key element of planning a year ahead, this process is really persuasion, insistence and planning combined. In any company this is normally a performance appraisal for the previous year and simultaneously setting up outlook for the New Year. E-HRM supports the process by allowing business leaders to set organizational goals, align employees to the same and review progress periodically. This process culminates in the performance assessment. The benefit to users and management is an objective and transparent performance assessment linked to organizational performance. This also 104

105 seamlessly links into the compensation, talent identification and training needs identification. Figure 6.5 Self Appraisal System Self Appraisal with Goals and Template Template Mapped (Y/N) Self Appraisal with Goals only Self Appraisal Save / submit Goals approved (Y/N) Template Mapped (Y/N) Self Appraisal with Templates only Approval of Self Appraisal Self Appraisal Either Goals or Templates have to be set / mapped Mail Notification to employee Source: Industry Sources Figure 6.5 illustrates the format of a self-appraisal system. 360 degree feedback The 360 degree appraisal system is a key process for leadership development within the organization. E-HRM s Performance Management System supports this process. HR managers can now mark out employees who need to go through this special feedback system during the appraisal process. 105

106 Performance Normalization Performance normalization is the process of aligning the overall performance ratings with the organizational standards of performance and excellence. The process is a sequel to the performance appraisal process and through this employee ratings are brought under the organizational standards scale. The benefit to the organization is that rewards (based on the final normalized ratings) are matched to organizational level of expectations. Figure 6.6 Performance Management System Goal Review Intimation Reviewed Goals Submission Appraisal Intimation Goal Submission Self Appraisal Goal Setting Master Setup Normalization Finalization Appraisal record of each employee is updated with the normalized rating Source: Industry Sources Figure 6.6 illustrates a Performance Management System with Normalization as a constituent. 106

107 Figure 6.7 The Outputs of a Performance Management System FUNCTIONALITY PERFORMANCE MANAGEMENT Goal Setting Assessment Development Plan Appraisal Organization Goals Individual Goals & Scores Assessment Scores Development Plan and Scores Performance Appraisal Normalization OUTPUTS Goal Plans Real-time status of individual goals Progress and Integration with goals Individual Performance Appraisal & Competency Gap Analysis / Appraisal Reports Rating Integration with related talent management systems Training Payroll Organization Charting Source: Industry Sources Figure 6.7 illustrates the outputs of an integrated Performance Management System. 107

108 6.6 Absence Management Planning can be made that difference between losing precious time and cost in the absence of people. At the same time, just gathering information to help the employee plan absence can also be a drain on time and manpower as well. Alignment allows the HR to react and respond at the right time, to provide all the information in an easy manner, reducing valuable time on helpdesk calls. The features include- Leave Records: Allows the HR department to maintain various Holiday types, credit balances to employees as per eligibility, ensure clarity and uniformity in policy guidelines, view employee leave records. Holiday Planning: enables the employee to view leave balance under various eligible heads, plan holiday. They can raise leave requests online and be routed for approval. Leave administration: the system enables the employees to regularize leave for exceptions such as failure to sign-out, wrong hours recorded. Role based Workflows: Allows different users such as employees, managers, payroll managers and HR administrators to be part of the application flow as per rules of the organization. 108

109 Reporting: Offers useful reports such as the Punctuality Index for capturing and analyzing trends in leave and attendance of the employees, allowing managers to pro-actively take steps to tackle any irregularities. 6.7 Shift Management Through e-hrm shift management helps in gaining complete control of rotating employees without any surprises. Features include- Assigning / rotating employees through various shifts; Providing an overview of employees working in any shift; Linking shift roster to the transport department and schedule pick-ups. 6.8 Resource Management & Timesheet The Resource Planning System enables organizations and line managers to identify competencies and skills required for projects at all levels and in each job function, manage resources, timeliness, costs and data in real-time. It provides flexible tools that enable collaboration, communication, scheduling and mapping of activities and costs to specific projects and clients. This system facilitates entering and maintaining timesheets and cost details periodically.the timesheet puts the HR manager in complete control of all the people, projects, time and cost- making information visible, and accessible in real time. Using an intuitive timesheet 109

110 software interface the employees are able to capture their timesheets and expenses in an efficient manner, reducing data entry times. Resource Management ensures- Effective utilization of resources; Direct integration with the employee database; Save time by not scheduling people on unavailable days and times; Organize and track hours and costs for all project personnel; Organize and keep track of absence and leave time; Keep staff informed with calendars of leave and schedules; Generate On Demand Margin Analysis report, to support management provide realistic budgeting. Figure 6.8 Resource Management Define & Assess Competencies Expense Management Resource Planning Workforce Scheduling Database Management (Project-wise & Client-wise) Time Management Project Planning Optimum utilization of resources Revenue forecasting Cost controls Investigating un-utilized/under-utilized capacity Source: Industry Sources Figure 6.8 illustrates the constituents of a typical Resource Management System. 110

111 6.9 Planning This includes- Minutes of Meeting / Task Tracking / Task Tracking Management Payroll Management The constituents are- Master Setup: Slab / Pay Group / Payroll User Rights / Pay group Rights / Global parameters / Currency Master / Currency Exchange Rate Master / Corporate Bank Account / Component / Component Settings. Loan: Loan Master / Loan Scheduler / Loan Re-scheduler. Reimbursement: Reimbursement Eligibility / Reimbursement Types / Reimbursement Release Date. Salary: Full and Final Settlement / Salary Hold / Salary Fixed / Salary Variable / Salary Hold Release / Salary Entry / Salary Adjustment / Arrear Days / Adjust Breakup. Tax: Tax Component / Tax Declaration / Asset Perks / Asset Master / Tax Adjustment / Tax Template / Rent Declaration / Rent Free Accommodation / Tax Remittance Process: Pay process / Show Process / Confirm Process 111

112 Utilities: View Salary Data / View Tax Data / Leave Reimbursement Integration / Two Field Master Configuration / Two Field Master / Bank Transfer / Salary Reconciliation Process Employee & Manager Self-service Alignment is the key for keeping objectives on track and also for changing information captured along with it. On one hand, the employee is empowered to track any personal information required at any time. On the other, automating routine processes saves key HR and employee time increases bottom-line savings in a big way. The focus is on the right things, in the right way. The Employee and Manager Self Service features allow employees to view benefits, update personal information, submit time sheets, make vacation requests, and request travel expenses, reimbursement empowering employees and also frees HR staff to deal with more complex tasks. (Refer Figure 6.9) 112

113 Figure 6.9 ESS- A Bird s Eye View Leave Request Leave Cancellation Leave Encashment Leave Regularization Record Resignation Exit Interview Clearance Activity IT Application Request Resource Planning Project Bulk Allocation Project Team Allocation Project Team De-allocation Weekly Timesheet Business Card Request Items Requisition Self Certification Self Certification Results Welcome Letter Exit IT Application Timesheet Course Nomination Nomination Withdrawal Participant Feedback Leave Training Induction Advance Request Salary Advance Request Settlement Expense Claims Employee Self Services Appraisal My Needs Claims & Reimbursement Claims Requisition Goal Setting, Goal Review Goal Submission Self Appraisal 180 Degree 360 Feedback Advance Visa Request Travel Summary Travel Expenses Travel Request Travel Attendance Attendance Regularization Attendance Cancellation Family Details, Hobby Details Language Proficiency Nomination Details Passport Details, Pension Details Vehicle Details, Visa Details Employee Attachments Employee Officiation Officiation Recruitment PIMS Shift Asset Asset Request Asset Return Job Board Search Refer a Friend Manage Shift, Shift Planning Shift Roster, Shift Calendar Employees in Shift Employees not in shift Exception Shift Assignment Transport Pickup Report Source: Industry Sources Figure 6.9 gives a bird s eye view of an Employee Self Service system. Employee and Manager Self Service is enabled through: Core practice areas: Training, Performance Management, Recruitment, Absence Management and Personal Information Management System. Self-service is also available in HR administration and other non HR administration areas. (Refer figures 6.9 and 6.10) 113

114 Personal Information Management to manage and update central employee directory, personnel dossiers, company directories, personal calendars and internal service requests. Holiday/Absence Planning to maintain leave records, view balance, plan holiday, apply for leave and track status of application. Travel Request System to assist employees plan and receive approval for business travel. Advance Request and Expenses System that allows employees to request various advances by eligibility levels, claim expenses and settle balances. Reimbursement System that allows employees to claim eligibility. Staff Scheduling: Employees record work hours, work schedules, vacation requests and obtains approval. Asset tracking: tracks ownership of company assets with employees. Business Requirements such as stationery and business card requests. 114

115 Figure 6.10 HR Services under ESS and MSS Claims & Reimbursement Workflow break-up Employee Movement/ Transfer Attendance Dynamic Claim Construction Workflow Tracker Employee Transfer Attendance Configuration Pay Details Prejoining Organization Setup IT Application Appraisal Feedback Compensation Template Initiate Prejoining Activities Organization Structure IT Application Maintenance Appraisal Intimation View Prejoining Activities Status Manage Role players Normalization Asset On boarding Confirmation My Needs Leave Asset Master Create Employee Employee Confirmation Item Category Leave Configuration Asset Category Offer Document Checklist Confirmation Appraisal Leave Balance Adjustment Generate Appointment Letter Confirmation Letter Induction Training Position Management Appraisal Exit Template Faculty Function Profile Appraisal Calendar Clearance Reminder Induction Schedule Question Template Interview Level Rating Scale Definition Schedule Interview Induction Test Results CPE or CPD Master Position Management Competency Definition Final Closure Key Result Area Definition Employee Deactivation Employee Reinitiation Relieving Letter Recruitment Employee Data Maintenance Training Administration Master Test Template Create Vacancy Post Vacancy Resume Search and Short Listing Schedule Interview Schedule Test Interview Feedback Candidate History Make offer Offer Acceptance Employee Details Contact Details Bank Details Driving License Education Details Certification Details Employment Details Appraisal Record Training Details Skill Details Critical Incident Details Medical History Accident History Past Employment Details Course Registration Course Reschedule Training Appraisal Mapping Training Attendance Training Record Creation Participant Feedback View Faculty Evaluation Source: Industry Sources 115

116 Figure 6.10 illustrates the entire gamut of HR Services that can be catered through Employee Self-service and the management selfservice system. Figure 6.11 Sample self f service flowcharts (a) LEAVE REQUEST Mail Notification to employee Leave Request Approval Leave Request Initiation (b) ASSET REQUEST - BY EMPLOYEE Asset Requisition Approval Mail Notification to Asset Facilitator & Employee Asset Requisition Source: Industry Sources Figure 6.11 illustrates two sample self service flow charts- Leave Request and Asset Request. 116

117 HR & Workgroup Analytics / Reporting Planning and productivity go hand in hand when constant monitoring is done. Alignment helps in being prepared and deliver exact business results, saving in futile cost overruns in a big way. HRMS Reports Employee History / New Joiners List / Components Master / Employee Details Report / Employee Movement / Leave Balance / Leavers List / Leave Transaction / Holiday Master / Location Master Details / Employee Passport Details / Employee Visa Details / Employee Bank Details / Employee Family Visa Details / Emergency Contact Details Report / Employee Salary Details History. Payroll Reports Annual Reports/ Employee Reports/ Master Reports/ Monthly Reports/ Payroll Process Reports/ Statutory Reports. Tax Reports: Summary of Form 16/ Tax computation sheet/ HRA Rent Declaration Summary/ Investment Breakup Summary Workflow The backbone of any good HCM Software product, workflow is a technical facilitator for automating transaction routing and communication steps in a process. It coordinates the work effort to multiple users, sends communication to the respective stakeholders 117

118 during steps in the processes. Enforce business processes by configuration and zero coding, performs routing to various users, managers authorization at each step and enables configurable business process without affecting the front end. Workflow may not necessarily be a module. For each of the processes, users may have a choice either to have workflow or not Role Players Role players are facilitators to manage various transactions in an HCM software product. The software provides great flexibility in defining these role players. Using any combination of these parameters - (location, grade, region, position and city) the role players can be defined in the system. The power of this is that employees of the same grade can be facilitated by different role players depending on which location they operate. This enables the system to be extendable to any complex organizational structure spread across different geographies by any level Key technology benefits of a good HCM software product E-HRM helps customers achieve cost and time savings. It gets translated to hard cost savings, high levels of usage as well as soft value benefits. (Refer Table 6.1) 118

119 Table 6.1 Benefits of an ideal HCM software product Positive & High ROI Easy to Implement High Extent of Usage Easy to Use Robust & STable System Achieved Strategic Objective The cost is (including implementation License, Maintenance, etc) much lower than the savings attained due to employee & HR time saved as well as savings due to reduced communication & stationery costs Can be implemented over existing platforms No large investment required in hardware or software The system is easy to understand and hence easy to roll out All employees in the organization can be covered across regions Web-based to ensure employees on the move can also access the system Automation of routine HR tasks are very high. Very low manual interventions Easy to navigate and self explanatory screens Comprehensive and demarcated modules Easy to learn Can Handle Large number of users Errors, both for data and system are negligible Improves employee productivity Creates a transparent environment Reporting tools assist in informed decision making Communicates and aligns employees to strategic goals Source: Industry Sources Table 6.1 illustrates the benefits of an ideal Human Capital Management software. E-HRM empowers businesses by: Providing a platform for better business-to-employee communication thereby paving the way for a transparent, positive organizational culture and higher productivity levels amongst employees. 119

120 Aiding in alignment of individual goals, providing for a platform to agree on views and actions. Supporting informed decision making through analytics and reporting tools that allow the Business Leaders and managers to review performance and other metrics related to their human capital. Giving all employees single-window web-based access to all their HR processes, reducing time spent on administrative activities, significantly enhancing individual and corporate productivity. Relegating administrative efficiency to the machines while creating a more strategy focussed HR department. Consolidating all employee information in one central repository precluding the need for multiple employee data files maintained by individuals across the HR department. Automating time and error prone manual processes, achieving considerable reductions in administrative time and costs and business process times. E-HRM aims to help organizations and business leaders maximize the human performance within and thereby deliver business growth. In sum, e-hrm empowers HR leaders to engage and manage the real assets in business: the Employees. 120

121 CHAPTER 7 THE GLOBAL e-hrm SCENARIO 121

122 CHAPTER 7 THE GLOBAL e-hrm e SCENARIO Human Resource Management, a relatively new term emerged during the 1970s. Many people continue to refer to the discipline by its older, more traditional titles, such as personnel management or personnel administration. The past few decades have been characterized by the emergence of the personnel department and the subsequent transformation of this role from that of an administrator to, more recently, a critical component in the competitive success of the business. Human resources as a function has evolved into Human Capital Management (HCM). Where Human Resources was the responsibility of a centralized, or sometimes decentralized department, Human Capital Management is the job of everyone in the business, from employees to executives. (Refer figure 7.1) 122

123 Figure 7.1 Transformation of Human Resource to Human Capital Management in Business Source: Hal Gueutal (Editor), Dianna L. Stone (Editor), Eduardo Salas (Foreword by), The Brave New World of e-hr: Human Resources in the Digital Age, Pfeiffer, 2005, Chapter 1- From Personnel Administration to Business Driven Human Capital Management - Patricia A. K. Fletcher, p.3. Figure 7.1 exhibits the Transformation of Human Resources to HCM in the Business graph. 7.1 Emergence of Personnel Management In the early part of the 20th century, tax and wage legislation was introduced to businesses, and by 1943 federal tax was mandated. To comply with these new requirements, a new function/profession was created the payroll professional. This was a huge responsibility, 123

124 with significant consequences for miscalculation and noncompliance. Payroll clerks struggled manually through hundreds and, at larger firms, thousands of payroll records, often with human error, making auditing, efficiency, and control a virtual impossibility. For some companies, technology could not come soon enough. Those who could afford it, like GE, pioneered the automation of the complicated and cumbersome payroll process. GE implemented the first homegrown mainframe payroll solution; they also had the first automated payroll system to process the tens of thousands of employees across the United States. As the 70s approached social legislation such as Affirmative Action, Equal Employment Opportunity, the Occupational Safety and Health Act, and the Employee Retirement Income Securities Act created a demand for companies to collect, store, manage, and report more personnel data than ever before. Due to legislated corporate responsibility for compliance of workforce practices and worker safety, a new function was created the personnel department. Combined with the payroll department in many businesses, the personnel department was primarily responsible for managing personnel information, data, and processes, and ensuring that the business was compliant with employment legislation. The role of technology became more and more important. Some companies, like GE, forced the issue by creating their own technology before one was available on the market. Payroll vendors began to emerge, offering not only technology, but in some cases, also 124

125 services to outsource this function. With the onslaught of legislation, companies began to look seriously at technology to gain control over workforce information without significantly increasing costs to the business. Vendors began to promote Enterprise Resource Planning (ERP) solutions that combined personnel data and payroll applications. Some vendors also integrated financial controlling systems with the Human Resource systems, so that companies could not only make more efficient financial decisions, but also increase control over where corporate dollars were spent. The payoff of technology was not just compliance, operational efficiency, and control; it also helped to focus resources on other activities beyond keeping manual records. As the 1980s came to a close, academicians discussed the changing role of Human Resource Management. They speculated that many Human Resource Departments would transform from a police and polite administrator role into a more strategic role in the business. 7.2 From Personnel Management to Human Resource Management As the 1990s approached, the pace of competition continued to quicken as customers became more sophisticated in their demands and Internet technologies began to emerge and tear down the barriers to entry for competition. Manufacturing and services organizations alike began to decentralize functions, while trying to maintain centralized control through standardized processes and information. 125

126 In markets that rely heavily on knowledge workers, such as services and high-tech industries, companies were beginning to embrace telecommuting or virtual work as part of everyday operations. With a much more diversified workforce in terms of location, gender, race, talent/skills, career aspirations, and culture, companies not only required better, more dynamic insight into personal data, but also tools through which employees could feel empowered and connected to the corporation. From the mid- to late 1990s, for the United States and many other Western countries, the dot-com era was alive and well. With sites like e-bay and Amazon.com, online commerce broke down competitive barriers and opened new opportunities for budding businesses and a new breed of entrepreneurs. As the century came to a close the Y2K scare lead to a migration of core data from old, legacy systems to new enterprise solutions that promised foolproof protection against the potential hazards of Y2K data loss. Companies that operated in the European Union during this time were beginning to feel the heat from privacy protection acts created by the EU to protect employees from information exchange about them. But what companies required most was control and insight into business operations. As globalization continued, so did the rapid pace of competition. Understanding where the talent was needed and how to quickly close the talent gap was a core concern for every CEO, which resulted in a 126

127 push for more strategic technology and human resources practices that were linked to business strategies, which were starting to be coined human capital management. Using data from such companies as Saratoga, Human Resources departments began to collect employee metrics to compare themselves to others in their industry on such measures as cost per hire, time to hire, and Human Resources headcount per FTE (full-time-equivalent). Many of these measurements were used as justification of the purchase and implementation of Human Resource Information Systems (HRIS) to automate the more non-value added transactions for which Human Resources was responsible. The hope for Human Resources was that with the non-value-added processes automated, the Human Resources workforce could concentrate on providing key services to executives, managers, and employees. At companies such as TransAlta Corporation, a major North American utilities player, reducing the amount of time on transactional tasks meant the ability to focus on activities that would positively impact its business. Human Resources was transforming its role from just a payroll and benefits provider into a key business partner who could enable insight and deliver strategies on the business s most important and critical resource: its workforce. As the war for talent raged on in both white-collar and blue-collar jobs, the timing was perfect. By the mid- 1990s, the Internet, or the Worldwide Web, was a common topic of both social and business discussions. Many businesses had branded 127

128 corporate intranets that provided information for their employees, virtual bulletin boards for information ranging from internal job postings to a calendar of events, even allowing employees to post for sale notices of private property. More and more, companies were providing workers with home access to corporate systems via an intranet. Companies were able to offer employees a way to manage their personal and personnel information, working toward work/life balance, while employers were able to keep employees connected to their own information, enabling a better, more accurate depiction. As the Human Resources team members became more visible and value-added programs began to be employed, employees in many businesses began to have a better relationship with Human Resources, often seeking them out for career advice. Despite the turnaround in many businesses, there still were many other companies where Human Resources struggled to be seen as valuable. In order to gain insight into even the most seemingly basic information about the workforce in the 1990s, more and more companies were beginning to embrace a more comprehensive approach to HR automation through which disparate systems and broken processes would be replaced with a Human Resources Information System (HRIS). Moving further into the decade, companies expanded the automation of payroll and personnel data and began to capture time worked, as well as intangible information that helped plan careers and successions to key roles in the business. Human Resources began to 128

129 evaluate self-service applications to help streamline business processes, capture better data, and most importantly put information into the hands of those who most wanted and needed it: managers and employees. Additionally, in order to keep control over the integrity of the data and how the systems were used, many processes leveraged workflow to create checks and balances. Businesses were beginning to rely on data warehousing and analytic tools to gain valuable insight into the workforce through dynamic information gathered from across the business. However, what began to happen and still continues to be a problem with many systems in use today with the advent of the information age came info-glut. Thus, many vendors began to market portal solutions to enable the user to have a window into information he or she would need to perform on the job, manage career decisions, as well as manage personal business more proficiently. Users across the business would gain access to the information needed to make better, more informed decisions on anything from career mobility and job performance to better training options and work/life decisions. 7.3 HR Transformation in the Digital Age From 2000 to the present, the world has seen tremendous change in a very short span of time. Continued globalization, rising customer and shareholder expectations, a volatile social and economic climate plagued by the fear of terrorism, corporate scandal and the resulting rise of corporate governance issues, downsizing, off-shoring, and a 129

130 job-less economic recovery in the Western world have combined to create tremendous pressure on executives to create highly flexible and innovative strategies to outperform the competition and increase profits and market share while decreasing the cost of doing business. Unlike the traditional HR approaches of the past, the practice of human capital management views employee and collective workforce success as a responsibility of everyone in the business. No longer are corporate people issues the exclusive province of the Human Resource team a group that was, and many times still is, distant from strategic decision making and whose contribution to the bottom line often goes unrecognized. In today s knowledge-based economy, how well a company leverages its human capital determines its ability to develop or sustain competitive advantage. As a player in this new business age, Human Resources or the organization focusing on talent must be able to translate business opportunity into strategies that will clearly impact the bottom line. In order to be taken seriously as a player, this function, like any at the decision table, must be able to clearly measure its impact. This requires not only the insight capabilities from data mining and analytics tools created in the 1990s in and into today, but also the new ability to interpret and use this information to make value-creating human capital decisions about investments and divestitures. 130

131 As the role of Human Resources transforms into a partner and player in the business, the focus has broadened and now includes, in some cases, workforce productivity. Now when Human Resources look to technology to enable business functions, it no longer looks to solutions to solely automate back-office functions, both transactional and strategic; they also want solutions that enable a more productive and focused workforce. As a result, many corporations have adopted a portal strategy that leverages not only internal production systems, but also enables collaboration across and outside of the business. As the market is slowly turning around, many businesses are looking at and implementing e-recruiting solutions to not only attract outside talent, but to manage talent internally. New e-recruiting solutions enable employers to maintain a talent pool, with Customer Relationship Management like capabilities to maintain relationships with viable internal and external applicants, alumni, and partners, even if employment is not offered immediately. Human Resources and training organizations alike are increasingly turning to e-learning solutions, many of which provide simulated training so that employees are better prepared to perform their jobs. In many applications, e-learning is also integrated with knowledge management so that employees can access training documents and other related materials. From an individual perspective, many Human Resources organizations are turning to an automated balanced scorecard approach to link employee and team goals to corporate objectives. 131

132 7.4 HR in the midst of a seemingly endless transformation Today, every Human Resources department is in the midst of a seemingly endless transformation, one that not only encompasses the function of the Human Resources department, but also its role within the business, the relationships it maintains, and the technology it uses and is responsible for deploying. It is clear that transformation of Human Resources is inevitable. More and more, businesses are realizing that people are the only true differentiating factor in longterm competitive success. 7.5 Recent trends in e-hrm e This section highlights the global e-hrm trends in recent times Model of HCM Excellence The Cedar Crestone survey on the state of HR technology adoption covering organizations across North America, Europe, Asia and Australia chalks out a roadmap followed by most organizations that have an ERP-based HRMS as their foundation. (Refer figure 7.2) 132

133 Figure 7.2 Cedar Crestone model of HCM Excellence for organizations having an ERP-based HRMS as their foundation Source: CedarCrestone HR Systems Survey Figure 7.2 shows the Cedar Crestone model of HCM Excellence for organizations having an ERP-based HRMS as their foundation. The roadmap followed by most organizations that have an ERP-based HRMS as their foundation is as follows- Administrative Excellence - Core HRMS/ERP Foundation: Organizations begin their journey towards overall HCM excellence with the deployment of core record keeping systems typically a state-of-the-art HRMS along with payroll and possibly benefits administration. 133

134 Workforce Management: This category includes functions for time and attendance, absence management, labor budgeting, forecasting, scheduling, and, increasingly, task management. Keeping these pieces at a best practice level through upgrading to recent vendor releases enables organizations to achieve Administrative Excellence. Service Delivery Excellence Organizations with self service applications, increasingly under a portal umbrella and moving to a service center approach, augmented by call center technology and a knowledge base that couples personspecific content with transactional services, are achieving Service Delivery Excellence. Self Service and Workflow incorporates Benefits, Pay, Personal Data; Promotions, Transfers, Salary Actions; and Approvals and Notifications. Portal Framework incorporates Identity Management and Single Signon. Performance Excellence Organizations with the strategic HCM applications (talent management) along with a data warehouse that brings data in from other sources, and analytics to enable measurement and reporting of workforce performance, are achieving Performance Excellence. 134

135 7.5.2 Global trends in e-hrm e - Highlights (Based on the Cedar Crestone Survey on the state of HR technology adoption ) Topping the list of initiatives are activities around metrics and analytics. Administrative applications are very mature with some movement from in-house to software-as-a-service solutions, hosting, or full business process outsourcing. Service delivery applications continue to be adopted. A move to a service center approach with an HR-oriented help desk is a key differentiator. Web 2.0 innovations are the arena of early adopters. Organizations using social networking for recruiting and branding had double the sales growth of organizations without these tools. The learning management application in any combination with other talent management applications is linked to the strongest revenue growth. An integrated talent management approach with service delivery, talent management, and business applications on the same platform as the core HRMS is a best practice. 135

136 The stance organizations are taking regarding sourcing is not one of total business process outsourcing where processes and systems are lifted and shifted to an outsourcer. It is still one of selective outsourcing. Change management continues to be the one key differentiator towards achieving a successful HR technology project or sourcing change Overall Application Adoption Looking at overall average application adoption, we see the following adoption pattern. Early adopters include high-tech and financial services organizations. For example, these organizations have more aggressively moved to some of the Web 2.0 recruiting and branding technologies as well as the measurement technologies. Mainstream adopters in order of overall average application adoption are: Agriculture/Mining/Construction (a category that includes many of the oil and energy companies), Transportation/Communications/Public Utilities, Other Manufacturing, Other Services, Retail/Wholesale, and Health Care. Late adopters include Higher Education and Public Administration. 136

137 7.5.4 Vendor Solutions Administrative and Service Delivery very: Oracle/PeopleSoft solutions lead in all categories except for time and attendance. Figure 7.3 Vendors - Administrative and Service Delivery % of respondents Source: CedarCrestone HR Systems Survey Figure 7.3 shows the vendors for administrative and service delivery applications. It is observed that- For HR Management System (HRMS), PeopleSoft maintains the lead at 29% and will continue to grow as a choice among respondents (32%). Software-as-a-service solutions such as Workday and Meta4 (international) continue to gain customers. For benefits administration and self service, PeopleSoft leads at 25%. There is a small move from ADP and Lawson, with 137

138 Oracle, SAP, and a myriad of other providers picking up adoption. For payroll administration, ADP is the leading provider of payroll solutions today (25%). Many organizations are shifting from ADP towards integrated solutions. For time and attendance, Kronos maintains a lead today but over the next 12 months, the workforce management solutions of Oracle/PeopleSoft will gain share, again adding to a move towards integrated solutions. Strategic HCM and Measurement Applications: The best of breed vendors such as Taleo and SumTotal/Pathlore give the ERP vendors some competition today. The picture ahead, however, is one indicating a continued move away from these vendors towards an integrated solution based on the core HRMS. (Refer Figure 7.4) 138

139 Figure 7.4 Vendors- Strategic and Measurement Applications % of Respondents Source: CedarCrestone HR Systems Survey Figure 7.4 shows the vendors for Strategic and Measurement Applications. It can be observed that- For compensation management, PeopleSoft (25%) and Oracle (10%) lead. With the acquisition of Vurv, the combination of Taleo/Vurv now leads the talent acquisition category. Over the next 12 months, however, there is indication of a move away from these software-as-a-service vendors towards integrating this application onto either PeopleSoft/Oracle or SAP HR management systems. 139

140 For the learning management category, Pathlore/Sum Total leads PeopleSoft (13% to 12%) today but its customers are clearly looking at other solutions over the next 12 months. The best of breed vendor, Saba, will pick up some of these customers. With succession planning, PeopleSoft (16%) and Oracle (4%) slightly lead the category. Going forward, best of breed vendor SuccessFactors will continue its move to dominate this category. For the performance management category, PeopleSoft (15%) and Oracle (4%) lead today and will surge ahead in the next 12 months (18% and 6% respectively). This increase among PeopleSoft, Oracle, and also SAP respondents again indicates an overall market move towards an integrated solution based on the core HRMS choice. With the BI and/or workforce measurement analytic category, we see a battle for dominance between PeopleSoft (15%)/Oracle (10%) and Business Objects (14%)/SAP (11%) today and over the next 12 months (PeopleSoft 18%, Business Objects 19%, SAP 15%, and Oracle 17%) Sourcing The key drivers for HR solutions vary by the three major approaches as shown in the following Table

141 Table 7.1 Sourcing solutions and Key Drivers Approach Key Driver In-house Achieving return on Investment Outsourcing(systems/processes) Administrative Services expense reduction Software-as-a-service Reduce software implementation times Source: CedarCrestone HR Systems Survey Some noticeable trends are- The payroll application and process is more partially or fully outsourced than the core HR record keeping application and process. The overall move towards outsourcing has increased by 18 % from The stance organizations are taking though is not one of total business process outsourcing, where the entire process and core record keeping system and possibly other applications are totally lifted and shifted to an outsourcer. It is still one of selective outsourcing E-HRM trends in the Asia-Pacific (APAC) countries (Based on Findings of the CedarCrestone HR Systems Survey - Focused on Asia and Australia). This survey focused on getting additional responses from Asia Pacific (APAC) countries 141

142 including Australia, China, Hong Kong, India, Korea, Malaysia, New Zealand, Philippines, Singapore, and Taiwan. Regional Variations Australia/New Zealand (ANZ) The top initiatives where ANZ respondents are spending time is led by work on improving business process improvements. This is a very smart profile before beginning automation efforts. The top automation under way includes portals and employee and manager self service. The top talent management initiative is learning management again a very smart focus in a down economy to focus on developing the workforce. Of all the regions, ANZ is most likely to choose an integrated talent management application approach, again a smart move as this delivers a lower total cost of ownership. ANZ organizations are generally at the leading edge of technology adoption in the APAC region. They take a holistic view of their organizational needs. This includes the incorporation of back office solutions such as financials, human resources record keeping, and staffing, as well as integration to front-office products such as a customer relationship management application and identity management technologies. North Asia (China, Hong Kong, Taiwan) In terms of the initiatives underway, the organizations are following a similar path to other worldwide global organizations. It 142

143 is one based on "doing the basics first," which means developing an HR systems strategy and engaging in business process improvement before technology implementation. North Asia organizations have above average adoption of manager self service and thus are achieving some of the stronger benefits of service delivery automation. For talent management applications, they have then deployed training enrollment, learning management, and competency management. The North Asia respondent organizations are also spending time on aligning employee performance with organizational objectives and some are implementing the performance management application. South Asia (India, Malaysia, Philippines, Singapore, Thailand) The South Asia respondents particularly among the Indian organizations are strongly focused on aligning employee performance with organizational objectives and implementing the performance management application. They are also implementing competency management and succession planning. In fact, the Indian organizations are further along than the other countries of the region in talent management application adoption. Indian organizations are much further along than any other country in their adoption of the HR-oriented help desk. As leading outsourcing firms serving the rest of the world, many of these organizations use this technology to serve customers, and are also applying it to their own employee base. Finally South Asia 143

144 respondent organizations are quite a bit further along than other regions in their adoption of the business intelligence applications, with the most work being done among the Indian Financial Services organizations. Focus on Web 2.0 Technologies In the APAC nations over 40% of respondents are engaged with some Web 2.0 technologies and these are particularly pertinent for talent management for recruiting, branding, learning, and collaboration. Refer Figure 7.5 Figure 7.5 Organizational Support for Web 2.0 Technologies - Asia Pacific Source: CedarCrestone HR Systems Survey (APAC) Of note is that South Asia region respondents are ahead of others in use of Web 2.0. This is because some of the professional services organizations based in India are using social networking tools for recruiting. In fact, some of these organizations exclusively use Facebook and other similar sites for recruiting. 144

145 Worldwide, twice as many early adopters (financial services and hightech organizations) use social networking for recruiting and branding, as well as wikis for collaboration. These respondents also had double the sales growth of those without the tools and are reaping some early advantages in areas including- On-boarding, Recruiting, Learning and Performance management. Focus on Business Intelligence On the warehouse front, APAC respondents report they use a data warehouse fine tuned for HR more frequently than some other warehouse that includes workforce data, although among Australian organizations, the enterprise warehouse is the preferred choice. Vendor Choices PeopleSoft and Oracle lead as the vendor solution in place in all the administrative and service delivery applications and continued growth appears strong. (Refer Figure 7.6) 145

146 Figure 7.6 Vendors - Administrative and Service Delivery - Asia Pacific % of respondents Source: CedarCrestone HR Systems Survey (APAC) PeopleSoft and Oracle also lead with the various talent management and measurement applications and there is likely to be an increase in adoption of these applications using the solution provided by the core HRMS system provider. Over the years a common set of barriers have been observed led by one theme- inadequate funding and the inability to show value. Some other barriers are - Lack of infrastructure (initially web infrastructure for self service and today a business intelligence infrastructure for workforce analytics; Lack of analytical and technical skills; Security fears and Poor /Non-existent change management. 146

147 CHAPTER 8 THE INDIAN e-hrm SCENARIO 147

148 CHAPTER 8 THE INDIAN e-hrm e SCENARIO E-HRM or the use of technology to enhance the value of HR delivery in an organization isn t new to India Inc. But what started with automation of basic HR transactions is now a key element in the HR department s much vaunted transformation into a strategic business partner. As per the HRD Survey 1996 conducted by Business Today-Gallup, the major concerns of the managers regarding their companies' HRD practices included- lack of proper recruitment, absence of effective appraisal systems, low compensation, absence of team spirit, lack of career planning and lack of job satisfaction. Majority of the human resource managers as well as managers felt that there was a need for Integrated Human Resource Management Systems in companies. 8.1 E-HRM in India: Vendor Solutions over the years The pioneers in adopting and apparently in benefiting from the e-hrm initiatives have been companies in the IT, BPO and retail banking sectors where employee numbers run into tens of thousands. But now even traditional FMCG companies are following suit. HR departments in many non-it companies are also adopting e-hrm. Several companies like Maruti, Glaxo SmithKline Beecham, Hero Honda, Ranbaxy Laboratories Ltd. and Dabur have implemented IT to enhance their HR functionalities. 148

149 Way back in 1996, RS Software introduced Icon, a human resource management package and in 1998 human resource management solutions provider Ramco Systems, a division of the Ramco Industries designed the Ramco Marshall, a software for client server computing, comprising over 35 enterprise resource planning (ERP) solutions including human resource management applications. In 1999 Siemens Information Systems Ltd. (SISL) got a contract from ONGC for implementation of SAP R/3 ERP package for the human resource and facility management functions of ONGC and this was the single largest human resource package in the Asia-Pacific region, covering 48,000 employees and over 70 locations of ONGC in India. Abreast of the dotcom surge, SISL undertook the larger Webenabling project work for the S Kumars group. Soingo and Magic Viewer are two very important medical software products SISL has developed (2000). In the telecom segment the company is responsible for setting up call centres for Reliance Telecom, AirTel and the Delhi Police and also the Department of Telecommunications (DoT) of the Government of India and the Indian Railways (IR). The company has main thrust into healthcare, telecom software development and system integration. Ramco Systems launched an ERP solution catering to all the HR requirements of a financial institution (1999). The modules included personnel, payroll, benefits, training, HR analyst and kiosk, the cost 149

150 ranging from Rs. 20 lakh to Rs. 50 lakh depending on configurations, customization, locations and number of users. The initial list of customers of Ramco s HRMS included ANZ Grindlays, ICICI, IDBI Bank, the National Stock Exchange and expanded to several others including HDFC Bank and ITC Hotels Ltd. Later, Ramco Systems also launched the ERP package-ramco ITsuite taking into consideration the peculiar problems of the IT industry such as- mobility of employees, project based work and multi-currency transactions. In 1999, Systime Computers Limited released Calibre, an HRMS software solution targeted at multi-locational companies. The modules included- HumanSys which helps a human resource manager in training analysis and planning, budgeting, objective driven performance appraisals and in-depth recruitment management; PayCalc is a payroll and TimeKeeper helps in tracking employee movements, leave and attendance management. Around the same time Infotrack Systems Private Limited of Hyderabad announced the development of a complete HRMS software- Infotrack-HRMS developed at a total cost of Rs 5 crore and costing Rs. 20 lakh for base installation/implementation and suited for public sector units, banks and IT firms having large number of employees. Infotrack-HRMS allowed a high degree of flexibility by offering a wide range of masters that enable the user to set up the system as per the organization s needs- business group master, company master, skill master, skill hierarchy, qualification and designation master, country, city and state masters. 150

151 In the year 2000 Tata Consultancy Services (TCS) launched TAO Systems as a human resource consulting line of business. The system facilitates the organization transformation by integrating organization development and human resource development interventions with information technology. The system comprises management tools, training interventions, and decision support systems. These would enable the client organization in preparing for as well as meeting challenges on strategy, business process engineering and managing transformational change. Software Technology Group's (STG) development division is responsible for setting up a company-wide Intranet system for Gas Authority of India Ltd (GAIL). The Intranet was to manage the documentation of GAIL's financial and material management systems and Human Resource (HR) system. The Intranet has a built-in online approval system with an enabled notification system. It is also equipped with a Smart Card security system for authentication. Vakrangee Software Ltd (VSL) of Mumbai in 2001 completely automated the Human Resource (HR) Department of Maharashtra government through a Personnel Information System (PIS). The multilingual software consisted of three modules, payroll, establishment and vigilance. 151

152 Ramco Systems Ltd. (RSL) was rated amongst top 100 enterprise product vendors worldwide (Express Computers, July 2002). The company's HR and payroll solutions, Ramco HRMP, has been implemented in over 50 organisations globally, including ICICI Bank, Central Bank of India, Godrej Soaps, Intel, Shopper's Stop, Singapore Sports Council, National Bank of Oman and Radisson Edwardian Hotels of the UK. It is also available in various bundles to cater to the needs of SME organisations, call centres, software companies and payroll outsourcing centres. RSL also received an order from the Government of Andhra Pradesh to design, deploy and implement human resource management solutions (HRMS), self-service and learning management solutions. The RSL-led consortium comprises Hewitt Associates and The Boston Group. The consortium won the order because of its building expertise and solution delivery infrastructure called Ramco Virtual Works. The solutions were deployed to increase the quality of service of the employees of the Government of Andhra Pradesh. In 2003, Kodak India Ltd launched online employee development forms and program, called gold process, as part of its global human resource information system (HRIS) initiative. It was part of the online succession planning initiative to identify successors for the top management of the company for its worldwide businesses. The system identified capable employees through this system with their skill sets to identify if they are suitable for senior management positions in the company. This is an online process. 152

153 The supervisors and subordinates chalk out a 12-monthly action plan, based on goals and capabilities as part of the initiative. The belief was that online initiatives will make the process transparent. The system also has half-year feedback systems that evaluate the achievements and misses of the subordinates. Chennai-based Accel ICIM Systems and Services Limited, provider of information technology solutions implemented JD Edwards enterprise resource planning for various functions including human resources and provided indigenously developed HR and payroll solution (2004). Progen ERP Systems of Mumbai (2003) targeted to install its Enterprise Resource Planning (ERP) software in 200 pharma companies operating in the small and medium sector by The ERP named PERP was specially designed for small and medium size pharma companies, which cannot afford extensive ERP packages like SAP, BAAN or Peoplesoft, which are primarily for large-scale companies and cost Rs1.5 to Rs2 crore. PREP costed only between Rs30, 000 to Rs60, 000. The ERP package comprised of six main modules including Human Resources Development (HRD) and many more applications customised to suit the specific requirements of the clients. Manipal Education and Medical Group (2003) set out to automate its campus management, financial management and human resource management systems, for which it chose enterprise 153

154 applications from PeopleSoft India, Bangalore. Fifteen campuses of the group in Manipal, Nepal, Sikkim and Malacca (Malaysia) were automated. Around 2004, BaaN staged a comeback as a specific enterprise software manufacturing company under the new brand, SSA Global with solutions including BaaN CRM, ERP, etc. The company supports the pharmaceutical, electronics, automotive, projects and process industries. Empower Works Ltd, a part of Polaris Software Labs of Chennai, developed a human resources software tool called Adrenalin to improve productivity (2004). The package had modules such as erecruitment, Performance and Talent Management Systems, Project and Resource Planning Systems, Training and Development. Adrenalin covers human resources, employee process automation and analytics, enabling the transformation of a workplace in terms of greater employee productivity. Oracle Software India Private Limited inculcated India-specific features like Indian Income tax forms to its Human Resource Management Systems (HRMS) Suite (2004). The Indian payroll module enabled new and existing customers to incorporate Indian taxation rules and aid in calculation of taxes. Oracle had about 40 customers in India and the payroll module will be made available to them. With the help of Oracle HRMS, companies could manage varied aspects of their workforce such as payroll and expense management, recruitments, hiring, benefits, administration, and training and performance management. 154

155 HCL Comnet Systems and Services Limited, the information technology (IT) services management arm of HCL Technologies, in 2004, developed an online tool to connect human resource called the Smart Business Manager (SBM). SBM is a workflow- based automation and reporting initiative, which connects all employees at a global level. It tracks, monitors and updates business activities across ten business applications like enterprise resource planning, human resources and sales force automation. It is a real time reporting and time monitoring tool, which is transparent. In 2004, Bharat Electronics Limited signed an agreement with Wipro Infotech Limited for implementation of MySAP Business Suite that included human resources, business intelligence and other modules. In 2005, HCL Technologies Limited reported efficient management of information through the deployment of SAP R/3 enterprise resource planning (ERP) package installed in The package has standardized and integrated all the processes of the company across global locations. In August 2005, New Delhi Power Limited implemented mysap ERP 2004 version by SAP India Consulting. Around the same time Paradyne Infotech of Mumbai developed HrWorQ which is a suite of human resource information management systems. 155

156 In 2005, Kals Information Systems Private Limited of Bangalore, a provider of software development services, established a human resource supply division called Aarohum which would offer a range of products such as annual sourcing contracts and project sourcing services. Kenexa Technologies launched a new product in the human resources domain in June The product, called e-human capital management, is a complete human resources (HR) hiring and retention solution, which can be integrated seamlessly with software architecture planning and enterprise resource planning systems of an organisation. The solution contains modules such as applicant tracking, phone screening and skills and behavioural assessments. Patni Computer Systems Limited implemented Human Resource Management Systems (HRMS) at the Bombay Stock Exchange (BSE). The integrated system enables interaction between human resource management and information technology. Patni Computer has also developed a Web-based application to track issues raised by users (2007). Also, Nimbus Systems (P) Limited launched Crown24KT, a complete enterprise resource planning (ERP) solution designed exclusively for the gem and jewellery industry. The solution is supported by the Microsoft Dynamics AX4.0, an ERP software for midsize and larger companies. Nimbus Systems is India's leading information technology service 156

157 provider to the gem and jewellery industry. Crown24KT will benefit jewellery manufacturing, precious metal/stone/diamond management, jewellery inventory management, financial accounting/crm, human resource management and business reports and MIS. Blueshift India Limited experienced a huge spurt in demand for recruitment automation tools. Blueshift markets Blueshift RMS (recruitment management systems) to help process resumes faster and better. In 2008, Ramco Systems Limited bagged an order for its Human Capital Management solution from Landmark Group, India. The solution was aimed at automating the human resources function and integrating it with other processes within the organization. Also, NIIT Technologies Limited entered into a tie up with Ramco Systems. NIIT Technologies software as a service (Saas) made use of Ramcos OnDemand ERP range for functional processes such as human resource management and payroll, financials and sales and distribution. Ramco Systems used NIIT Technologies operational excellence to expand its solution offering. SAP India Private Limited and the Mahindra Group inked an enterprise agreement for consolidation of the group's systems (2008). Under the agreement, common processes across the Mahindra Group of companies, such as human resources, employee services, administration, finance, procurement and analytics, will be standardised on the SAP technology platform. 157

158 The agreement will cover all software, maintenance, consulting services and support under SAP's support offering Current Scenario In the current Indian scenario we can right away think of two most frequently used names viz. SAP and People Soft. These packages are highly customizable and can address unique needs of companies. A considerable number of companies in India are currently tuned in to SAP alone. Some prominent names amongst these are ONGC, Asian Paints, L&T, Cadbury, IOC, BPCL, Grasim, Essar, TATA, Jet Airways, GM, Eicher, Bajaj, Wipro, Infosys, Siemens, ICICI, Reliance and many more. Amongst the popular HR Packages is EnTrust HR & Payroll solution offered by Comtel Technologies and also Payroll Champion from ProcessWeaver. Greytip Software provide HR and Payroll Software Solutions, called Folklore HRIS, for small and large organizations. Folklore currently enables processing of more than 3,00,000 pay-slips across more than organizations. Some of the clients include Dell Computers, HP Globalsoft, Mphasis-EDS, TESCO. Adrenalin offers a complete online HR & Payroll solution. It offers four custom packages to suit the business needs and budgets- Adrenalin Basic, Adrenalin Suite, Adrenalin Smart-build and Adrenalin SaaS. Saviour has legal activities of all types of payroll and the EmpXtrack Payroll Software is based on SaaS platform and caters to small business to large enterprises. Another popular HR Package in India is Applecart HR & Payroll solution offered by Cosmosoft 158

159 Technologies. Advanced Payroll Processing & Live Employee Career management, Appraisal, Recruitment and Training (APPLECART), provides a comprehensive solution for managing the work force with powerful querying and reporting features. The various subsystems under the APPLECART are Personnel Management, Payroll & Tax Accounting, Leave & Loan management and Joint Venture Passing. Optimizer Consultancy Private Limited is in the business of payroll processing and HR related activities. HumaNET is one of the fastest growing HR software in the industry. With End to End HR functions it captures from recruitment to retirement all the modules. It also has the services available on SaaS. HumaNET payroll is a multi company and multi location product. Ramco HCM with Analytics, an end-to end comprehensive solution for Human Capital Management drives the transformation and automation of HR Service Delivery and enables Best-practice Workforce Management. It also helps organizations to take critical business decisions with confidence, synchronize financial and operational human capital strategies and develop a targeted talent management plan. Functionalities covered are: Workforce Planning, Succession Planning, Core Payroll, Performance, Management Training, Talent Acquisition, Leave Management and Time & Attendance and Employee Data Management. Altec Ipc Information Processing Ltd offers a software package - Agile e-hr. Agile e-hr payroll is multi-user software and an advantage is software can work in multi currency. 159

160 8.2 Some noteworthy e-hrm e Applications ICICI Bank has 26,000 employees on its rolls and an estimated 100,000 potential candidates being interviewed every year. Also consider the case of Reliance Industries with a mammoth employee base, a large proportion being in a state of flux due to transfers, promotions, seeking better pastures, etc. at various points of time. Now, by automating most processes, including recruitment and integrating them into a central HR management system companies of the scale of ICICI Bank and Reliance are able to run their HR departments not only with fewer people but more efficiently as well. What started with automation of basic HR transactions is now a key element in the HR department s much vaunted transformation into a strategic business partner. At ICICI Bank s e-hr portal employees cannot only check their Provident Fund, Gratuity, Leave Travel Allowance status or the current value of their ESOPs online but trade in those options as well. Interestingly so, the week s cafeteria menu is available on the portal. Wipro, shifted most of its routine-hr work to a web-based portal resulting in higher employee satisfaction due to faster HR decisions. If a foreign travel request had to be sent in paper form, earlier it could take nearly an hour. Now, on the web, it can be done in minutes. For a company of its size with several thousand employees spread all over the sheer size of paperwork and HR interaction required was mind-boggling and inefficient. Consider the complexity of paperbased processes if HR has to handle leave requests, reimbursements, 160

161 travel plans, appraisals, recruitment and career planning for each one of them. Godrej has been implementing e-hr with its Godrejite portal to e- enable routine-hr tasks. It also runs an etraining initiative called egyan, where the content is currently out-sourced from Personalitree, Learn At Satyam and Managementor. At Infosys with strength of about 49,000, an employee is appraised on various parameters for every project that he/she executes through the year. When final appraisals are made at the end of the year all the details are already available on the system. At PepsiCo India, employees log on to the company s global HRMS software portal to manage their profiles and set development goals for the future. Their e-hr software called the Connect Survey enables employees to rate their bosses on parameters like whether they recognize their efforts, enable them recognize good work-life balance or connect them beyond day-to-day work. TCS recently launched its digital HR Information System, which allows an individual to apply for leave, get online approvals, file for loans directly and voice grievances. TCS, employee benefits also include Visa Information Processing System (for checking visa status) and the Branch Assets library being maintained on the company s intranet by the HR department. 161

162 Figure 8.1 IDBI Bank s e-hr e process flow A sampler Source: Automating Employee Interactions Indian Management, June 2003, p

163 It can be observed from figure 8.1 that at IDBI Bank, various HR processes have been broken down into a logical sequence outlining the minutest details. This is then mapped onto the e-medium in the form of flow charts. P & G, uses technology to good effect in the form of an employee portal My.pg.com that facilitates internal communication and helps employees to access compensation and benefits using a web-based application. The portal offers payroll information and employee data using SAP HR. There are eforms for registering changes, travel information, HR policies and stock options. It also helps an individual identify and register for training programmes. P&G uses Recruitsoft a web based application management system to significantly improve recruitment. Pgoncampus is a customised Internet portal to enhance the communication between P&G and each individual in targeted B-schools. It offers information about careers in P&G India and other related information. Another web-based application helps senior managers at P&G to plan careers and succession and nurture talent among subordinates. Yet another portal helps managers identify the right candidates and employees to apply for the right jobs within the company. Oracle has implemented e-hrm as two distinct groups. One is employee self-service, in which employees handle such matters as addresses and dependent changes, benefits and tracking vacation days. The other is managerial self-service; in which managers conduct performance reviews, salary adjustments, project staffing, 163

164 and promotions through the portal. The benefits are visible in many forms- fast and direct communications with a large number of people, faster turnaround times and a support tool for employees where they can query for information that s accurate and available 24/7. Technology in the HR field has enabled HR managers to pay more attention to the true HR issues and focusing on the soft skills rather being weighed down by load of routine and mundane requirements and formalities. Now e-hr encompasses each phase of the employee life cycle - from recruitments, compensation and appraisals to exits. Glaxo Smithkline Consumer Healthcare Limited (GSKCH), India has a Training Management System, which takes care of the training requirements of employees and helps HR in planning and monitoring various learning modules. Besides this, the company also has a comprehensive payroll system in place that manages salaries/loans/pf, etc, for all employees. The company also conducts online employee satisfaction surveys. Soon a Human Resources Management System (HRMS) will be implemented, which will automate all HR processes (from recruitment to retirement). All processes like recruitment, appraisal, training, compensation; benefits, employee profile and retirement would be covered. Presently, the company s intranet provides e-learning modules, HR policies, online facilities (booking guest house/meeting rooms), telephone directory, holiday list, etc. 164

165 The impact on employees management and HR personnel has been significant. Reduced paperwork, enhanced productivity, improved planning and decision making are the singular benefits that GSKCH has reaped. It has also helped in information sharing across employees in the GSKCH. The objective of the solution was to leverage technology to design, develop and implement an HRIS to provide complete integration of HR processes and re-engineer them wherever necessary to implement best practices. Figure 8.2 GSKCH (India) HRIS Model Source: glaxosmithklineconsumerhealthcare.htm 165

166 As shown in figure 8.2, at GSKCH the integrated architecture of the solution as provided by Wipro has clearly delivered the benefits of automation-giving employee and HR productivity a tangible boost. Dabur has set up an Employee Management System on its intranet platform. Basically a payroll application, EMS is integrated with all the sites across the country. This helps in making employees more selfsufficient. Managers are able to assess an employee s past history, education qualifications, loans, payroll, taxation details, gratuity and superannuation, providing a perfect combination of both HR and the financial department. Presently offered at the managerial level, the company would soon be extending it to their other employees too. Hero Honda is in the process of starting an ESS system which will enable employees to assess all information about their salary, tax, leave, loan, etc. For its knowledge management requirements, the company is planning to set up a portal where employees can access information, exchange ideas freely and read articles compiled by the- HR department and all employees. Later, they also plan to use the intranet for external and internal recruitment, assessment and appraisal purposes. Samsung India has devised an Electronic Approval System, which has been set up on a SAP system and takes care of all approvals, apart from the financial ones. This initiative has resulted in onsite decision-making and avoiding any delays that would occur in case the concerned people are traveling, since they can access their 166

167 mailbox sitting in any office in India. Some of the other features that are being used on SAP for electronic approval include leave application, travel approvals, tax computation, etc. Steel Authority of India Limited is providing its employees with the option of activities like accessing information about salary, leave, tax, loan and enabling them to make the necessary changes. The company is in the process of devising an Employee Information System, which addresses the basic information requirement of an individual. Later, the intranet will be expanded with more employee related information. All these initiatives have helped in increasing the employee satisfaction level index. Most HR managers reiterate that all these initiatives are part of the corporate strategy to have a satisfied and profitable workforce. Companies are coming with new e-hr innovations every day. Infosys plans to start a 24-hour standardized help desk that will be accessible to all of Infosys s employees across the world. PepsiCo India is in the process of introducing a concept called the Learn Smart Card, which operates like a credit card and has a cash budget or credit limit that the employee can spend from. With this budget the employee can buy books in his or her subject area and nominate himself/herself for training programs. Accenture is also rolling out an alumni portal where former employees can refer candidates make job postings or simply stay in touch. 167

168 8.3 Sourcing Indian organizations are much further along than any other country in their adoption of the HR-oriented help desk. As leading outsourcing firms serving the rest of the world, many of these organizations use this technology to serve customers, and are also applying it to their own employee base. (Cedar Crestone HR Systems Survey focused on APAC countries). The HR outsourcing business opportunity is large and India is likely to garner a larger and larger piece of this pie in the future. India, with its intrinsic geographic positioning, is emerging as a viable destination for HR outsourcing companies to set up their businesses. However people are still not very clear about what exactly is HR outsourcing all about, and issues like quality and trust needs to be addressed properly. Experts say the basic reasons hampering the growth of HR outsourcing in India are confidentiality and cost factors. Moreover, the fear of losing jobs, losing control over confidential data, ethics and quality of outsourcing vendors, security breaches and overall confidence in the vendors deters many organizations. The biggest problem - and this is why the HR outsourcing industry in India is on the back foot - is the government and the industry's failure to tackle issues like data security and data privacy. This is where Indian HR outsourcing companies face a major handicap. The Indian government is still grappling with drafting a data protection law 168

169 designed to quell growing privacy concerns from their offshore clients. However, the future seems to be very promising. It's set to become a $ 51 billion market worldwide in 2005, representing 39 per cent of the total business process outsourcing revenue. Estimates show that the latent size of HR outsourcing in India is about $ 2 billion with a current market of $ 27 million and it is growing at an alarming rate of about 50 per cent. India has immense potential as more than 80% of fortune 1,000 companies are discussing HR outsourcing as a way to cut costs and increase productivity. Right now, India is barely skimming the surface of the HR outsourcing market potential. Indian life Hewitt (ILH), FIDELITY, EXULT and MAFOI are some of the prominent HR outsourcing services providers in India and the clients include giants of manufacturing, software and service industries like GE Capital, Ford Motors, Hyundai Motors, Satyam Group, Infosys, Enron, Haldia Petrochemicals and HSBC, to name a few, but many more needs to be added to that list. Some established service providers like SAP have also adopted a phased approach to introducing the on-demand software as a service (SaaS) model. SAP has been working closely with its customers to tailor the value derived from the SaaS offerings and has a clear on demand strategy for all categories of customers. (Gartenberg, MD- SAP India, 2010). India will take some time to move to the on-demand model. 169

170 E-HRM has become an inseparable part of the functioning of almost all the large business players in the Indian scenario. It helps in integrating the widespread activities of organizations by enabling connectivity between different organizational functions and providing accurate and timely personnel information on-line and round the clock. 170

171 CHAPTER 9 DATA ANALYSIS AND FINDINGS 171

172 CHAPTER 9 DATA ANALYSIS AND FINDINGS 9.1 Profile of Sample Tables 9.1a to 9.1k (refer Annexure II) show the profile of the sample - Percentage of Respondents- City wise; % of Respondents by Type of Sector (Services/Manufacturing); % of Respondents by Type of Company (MNC/Non-MNC); % of Respondents (MNC/Non- MNC)*(Services/Manufacturing); % of Respondents by Size of Company (Annual Turn-over); % of Respondents by Size of Company (No. of Employees); City * Type of Sector (Services/Manufacturing); Size of Company (Annual Turn-over) * Type of Sector (Services/Manufacturing); Size of Company (No. of Employees) * Type of Sector (Services/Manufacturing); City * Type of Sector (Services/Manufacturing); City * Type of Company (MNC/Non-MNC) respectively. 9.2 Response to the Questionnaire Response to Question Mean ranks for the considered drivers for introducing e-hrm systems in companies (Services vs Manufacturing ng groups) The mean ranks by Type of Sector (Services vs Manufacturing) are shown in Table 9.2a (refer Annexure II). Based on this the rank order 172

173 for the considered drivers for introducing e-hrm systems in the companies are given in Table 9.2b (refer Annexure II). Table 9.2c The top five drivers for Services vs Manufacturing groups Rank Services Manufacturing 1 Enable HR cost saving and control Enable HR cost saving and control 2 Improve HR transactions accuracy/speed/integrity Standardize Systems and Procedures 3 Reduce time spent on routine administrative tasks by HR staff Reduce paper transactions 4 Reduce paper transactions Reduce time spent on routine administrative tasks by HR staff 5 Encourage open communication and sharing of Information Increase overall productivity 1: Most Important; 10:Least Important Table 9.2c shows the top five drivers for introducing e-hrm systems in companies by Type of Sector (Services vs Manufacturing). It can be observed from the table that- The topmost driver for introducing e-hrm systems to companies for both the Services and Manufacturing groups isto enable HR cost saving and control. Reducing time spent on routine administrative tasks by HR staff and reducing paper transactions are common drivers for both the groups. For the Services group another major driver is to improve HR transactions accuracy/speed/integrity. 173

174 Mean ranks for the considered drivers for introducing e-hrm e systems in companies (MNC vs Non- MNCgroups groups) Table 9.3a (refer Annexure II) shows the mean ranks by type of Company (MNC/Non-MNC). Based on this the rank order for the considered drivers for introducing e-hrm systems in the companies are given in Table 9.3b (refer Annexure II). Table 9.3c Rank The top five drivers for MNC vs Non-MNC groups MNC Non-MNC 1 Enable HR cost saving and control Enable HR cost saving and control 2 Increase overall productivity Reduce paper transactions 3 4 Improve HR transactions accuracy/speed/integrity Encourage open communication and sharing of Information Reduce time spent on routine administrative tasks by HR staff Standardize Systems and Procedures 5 Reduce paper transactions Improve HR transactions accuracy/speed/integrity 1: Most Important; 10:Least Important Table 9.3c shows the top five drivers for introducing e-hrm systems in companies by Type of Company (MNC vs Non-MNC). It can be observed from the table that- The topmost driver for introducing e-hrm systems in companies for both the MNC and Non-MNC groups is- to enable HR cost saving and control. Reducing paper transactions is common to both the groups. 174

175 Considered drivers for introducing e-hrm e systems in companies (Significant difference between b groups and within groups - ANOVA) Hypothesis 1 H 01 : There is no significant difference between groups and within groups w.r.t. the considered driver for introducing e-hrm systems in companies. The hypothesis is tested w.r.t each of the considered driver (a to j) for introducing e-hrm systems in companies (refer Annexure II - Tables 9.4a and 9.4b). H 01 is rejected w.r.t. the following drivers - Increase Integration within the HR function; Encourage open communication and sharing of Information; Standardize Systems and Procedures; Improve HR transactions accuracy/speed/integrity; Reduce paper transactions; Refocus HR staff on strategic activities; Increase overall productivity and Reduce time spent on routine administrative tasks by HR staff. W.r.t. these drivers there is a significant difference between groups and within groups Services vs Non-MNC, Services vs MNC, Manufacturing vs Non-MNC and Manufacturing vs MNC. H 01 is accepted w.r.t. the following drivers- Enable HR cost saving and control and Better management of data and information. W.r.t. these drivers there is no significant difference between groups and within groups Services vs Non-MNC, Services vs MNC, Manufacturing vs Non-MNC and Manufacturing vs MNC. (Refer Annexure II - Tables 9.4a and 9.4b). 175

176 9.2.2 Response to Question Usage of e-technology e for each of the considered Human Resource Functions (Services vs Manufacturing groups) Table 9.5a (refer Annexure II) shows the usage of e-technology for each of the considered Human Resource Functions by Type of Sector (Services vs Manufacturing). Hypothesis 2 H 02 : There is no significant difference in usage of e-technology for the considered HR function between Services vs Manufacturing groups. The hypothesis is tested w.r.t. each of the considered HR functions- a to r (Refer Annexure II - Table 9.5a). H 02 is rejected for the following HR functions- Recruitment and Selection; Manpower Planning; Communication; Training and Development; Performance Management; Induction; Maintaining Employee Records; Compensation Planning; Competency Mapping; Career Planning; Succession Planning; Employee Transition; Travel Management; Exit Management; Selecting Benefits. There is a significant difference in the usage of e-technology between Services vs Manufacturing groups for these HR functions. The usage of e- technology is comparatively higher in the Services group viz-a-viz the Manufacturing group for these HR functions. (Refer Table 9.5b) 176

177 H 02 is accepted for the following HR functions- Payroll Management; Attendance Management; Leave Management. There is no significant difference in the usage of e-technology between Services vs Manufacturing groups for these HR functions. A very high percentage of respondents in both groups use e-technology for these HR functions. (Refer Table 9.5b) Table 9.5b Usage of e-technology e for HR Functions by Type of Sector (Services vs Manufacturing) A Comparison Approx. % of respondents using e- e technology Very High (about 100%) High (about 85%) Reasonably High (about 60%) Low (about 20-30%) HR Functions Services Recruitment and Selection, Manpower Planning, Payroll Management, Leave Management, Attendance Management Communication, Training and Development, Performance Management, Compensation Planning, Travel Management and Maintaining Employee Records Induction Selecting Benefits, Competency Mapping, Career Planning and Employee Transition. Manufacturing Payroll Management, Leave Management and Attendance Management Recruitment and Selection, Manpower Planning, Communication, Training and Development, Performance Management, and Maintaining Employee Records. Employee Transition, Travel Management Very Low (about 8%) Negligible (about 1%) Succession Planning and Exit Management. Induction, Selecting Benefits, Compensation Planning, Competency Mapping and Career Planning. Succession Planning and Exit Management. Table 9.5b shows that the usage of e-technology is comparatively higher in the Services group viz-a-viz the Manufacturing group. 177

178 Usage of e-technology e for each of the considered Human Resource Functions (MNC vs Non-MNC groups) Table 9.6a (refer Annexure II) shows the usage of e-technology for each of the considered Human Resource Functions by type of company (MNC vs Non-MNC). Hypothesis 3 H 03 : There is no significant difference in the usage of e-technology for the considered HR function between MNC vs Non-MNC groups. The hypothesis is tested w.r.t. each of the considered HR functions- a to r (Refer Annexure II- Table 9.6a) H 03 is rejected for the following HR functions- Recruitment and Selection; Manpower Planning; Communication; Training and Development; Performance Management; Induction; Maintaining Employee Records; Compensation Planning; Competency Mapping; Career Planning; Succession Planning; Employee Transition; Travel Management; Exit Management; Selecting Benefits. There is a significant difference in the usage of e-technology between MNC vs Non-MNC groups for these HR functions. The usage of e-technology is comparatively higher in the MNC group viz-a-viz the Non-MNC group. (Refer Table 9.6b) 178

179 H 03 is accepted for the following HR functions- Payroll Management; Attendance Management; Leave Management. There is no significant difference in the usage of e-technology between MNC vs Non-MNC groups for these HR functions. A very high percentage of respondents in both groups use e-technology for these HR functions. (Refer Table 9.6b) Table 9.6b Usage of e-technology e for HR Functions by Type of Company (MNC vs Non-MNC) A Comparison Approx. % of respondents using e- e technology Very High (100%) High (about 95%) Reasonably high (About 80-90%) Low (about 35-40%) Very Low (about 15-25%) Negligible (about 1%) MNC Recruitment and Selection, Payroll Management, Leave Management, Attendance Management Manpower Planning, Communication, Training and Development, Performance Management, Compensation Planning, Travel Management and Maintaining Employee Records Selecting Benefits, Competency Mapping and Career Planning Induction Succession Planning, Employee Transition and Exit Management HR Functions Non-MNC Payroll Management, Leave Management and Attendance Management Recruitment and Selection, Manpower Planning, Communication, Training and Development, Performance Management and Maintaining Employee Records Travel Management Induction, Compensation Planning and Employee Transition Selecting Benefits, Competency Mapping, Career Planning, Succession Planning and Exit Management Table 9.6b shows that the usage of e-technology is comparatively higher in the MNC group viz-a-viz the Non-MNC group. 179

180 9.2.3 Response to Q Usage of HR Service Delivery Tools (Services vs Manufacturing groups) Table 9.7 (refer Annexure II) shows the usage of HR Service Delivery Tools by Type of Sector- (Services vs Manufacturing). Hypothesis 4 H 04 : There is no significant difference in the usage of the considered HR Service Delivery Tool between Services vs Manufacturing groups. The hypothesis is tested w.r.t each of the considered HR Service Delivery Tools- a. to e. (refer Annexure II- Table 9.7). H 04 is rejected i.e. there is a significant difference in the usage of HR Service Delivery Tools between Services vs Manufacturing groups w.r.t. each of the considered HR Service Delivery Tools - Employee Self Service; Management Self Service; E-Learning Portal; Intranet; Web 2.0 Technology. The usage of HR Service Delivery Tools is comparatively higher in the Services group viz-a-viz the Manufacturing group. In the Services group more than 90% of all the respondents have reported the usage of all the given HR Service Delivery Tools. In the Manufacturing group, the highest percentage of respondents has reported the usage of Intranet (75%) followed by ESS (60%), E-learning Portal (41%), MSS (30%) and Web 2.0 only 13%. 180

181 Usage of HR Service Delivery Tools (MNC vs Non- MNC groups) Table 9.8 (refer Annexure II) shows the usage of HR Service Delivery Tools by type of Company (MNC vs Non-MNC). Hypothesis 5 H 05 : There is no significant difference in the usage of the considered HR Service Delivery Tool between MNC vs Non-MNC groups. The hypothesis is tested w.r.t. each of the considered HR Service Delivery Tool- a. to e. (refer Annexure II - Table 9.8). H 05 is rejected i.e. there is a significant difference in the usage of HR Service Delivery Tools between MNC vs Non-MNC groups w.r.t. each of the considered HR Service Delivery Tools - Employee Self Service; Management Self Service; E-Learning Portal; Intranet; Web 2.0 Technology. The usage of HR Service Delivery Tools is comparatively higher in the MNC group viz-a-viz the Non-MNC group. In the MNC group more than almost 100% of all the respondents have reported the usage of all the given HR Service Delivery Tools. In the Non-MNC group, the highest percentage of respondents has reported the usage of Intranet (82%) followed by ESS (78%), E-learning Portal (57%), MSS (50%) and Web 2.0 (37%). 181

182 9.2.4 Response to Question 4 Sourcing Solutions Response to this question is covered under Chapter 8: The Indian e- HRM scenario Response to Question Perception of Respondents regarding their company s position in the e-hrm e journey today (Services vs Manufacturing groups) Table 9.9 (refer Annexure II) shows the perception of respondents regarding their company s position in the e-hrm journey today by Type of Sector (Services vs. Manufacturing). Hypothesis 6 H 06: There is no significant difference between Services vs Manufacturing groups regarding their perception of their company s position in the e-hrm journey today. H 06 is rejected i.e. there is a significant difference between Services vs Manufacturing groups regarding their perception of their company s position in the e-hrm journey today. On a five-point scale ranging from 1: Neither understand nor value e-hrm to 5: Complete incorporation of e-hrm strategy into the business model the Services group as compared to the Manufacturing group perceives itself to be closer towards complete incorporation of e-hrm strategy into the business model. (Refer Annexure II Table 9.9). 182

183 Perception of Respondents regarding their company s position in the e-hrm e journey today ( MNC vs Non-MNC groups) Table 9.10 (refer Annexure II) shows the perception of respondents regarding their company s position in the e-hrm journey now by Type of Company (MNC vs. Non-MNC) Hypothesis 7 H 07: There is no significant difference between MNC vs Non-MNC groups regarding their perception of their company s position in the e-hrm journey today. H 07 is rejected i.e. there is a significant difference between MNC vs Non-MNC groups regarding their perception of their company s position in the e-hrm journey today. On a five-point scale ranging from 1: Neither understand nor value e-hrm to 5: Complete incorporation of e-hrm strategy into the business model the MNC group as compared to the Non-MNC perceives itself to be closer towards complete incorporation of e-hrm strategy into the business model. (Refer Annexure II Table 9.10). 183

184 Perception of Respondents regarding their company s position in the e-hrm e journey today (Significant difference between b groups and within groups - ANOVA) (Refer Annexure II Table 9.11) Hypothesis 8 H 08 : There is no significant difference between groups and within groups w.r.t. perception of respondents regarding their company s position in the e-hrm journey today. H 08 rejected i.e. there is a significant difference w.r.t. perception of respondents regarding their company s position in the e-hrm journey today, between groups and within groups Services vs Non-MNC, Services vs MNC, Manufacturing vs Non-MNC and Manufacturing vs MNC. (Refer Annexure II Table 9.11). 184

185 9.2.6 Response to Question Perception of Respondents regarding their company s position in the e-hrm e journey after five years (Services vs Manufacturing groups) Table 9.12 (refer Annexure II) shows the opinion of respondents regarding their perception of their company s position in the e-hrm journey after five years by Type of Sector (Services vs. Manufacturing) Hypothesis 9 H 09: There is no significant difference between Services vs Manufacturing groups regarding their perception of their company s position in the e-hrm journey after five years. H 09 is accepted i.e. there is no significant difference between Services vs Manufacturing groups regarding their perception of their company s position in the e-hrm journey after 5 years. On a fivepoint scale ranging from 1: Neither understand nor value e-hrm to 5: Complete incorporation of e-hrm strategy into the business model both the Services group and the Manufacturing group perceive themselves to be at a similar level after five years. (Refer Annexure II Table 9.12) 185

186 Perception of Respondents regarding their company s position in the e-hrm e journey after five years (MNC vs Non-MNC groups) Table 9.13 (refer Annexure II) shows the opinion of respondents regarding their perception of their company s position in the e-hrm journey after five years by Type of Company (MNC vs. Non-MNC). Hypothesis 10 H : There is no significant difference between MNC vs Non-MNC groups regarding their perception of their company s position in the e-hrm journey after five years. H is rejected i.e. there is a significant difference between MNC vs Non-MNC groups regarding their perception of their company s position in the e-hrm journey after five years. On a five-point scale ranging from 1: Neither understand nor value e-hrm to 5: Complete incorporation of e-hrm strategy into the business model the MNC group perceives itself to be near complete incorporation of e-hrm strategy as compared to the Non-MNC group which is way behind. (Refer Annexure II Table 9.13) 186

187 Perception of Respondents regarding their company s position in the e-hrm e journey after five years (Significant difference between b groups and within groups) (Refer Annexure II Table 9.14) Hypothesis 11 H : There is no significant difference between groups and within groups w.r.t. perception of respondents regarding their company s position in the e-hrm journey after five years. H is rejected i.e. there is a significant difference w.r.t. perception of respondents regarding their company s position in the e-hrm journey after five years, between groups and within groups - Services vs Non- MNC, Services vs MNC, Manufacturing vs Non-MNC and Manufacturing vs MNC. (Refer Annexure II Table 9.14) 187

188 Perception of Respondents regarding their company s position in the e-hrm e journey today vs after five years (group-wise) Perception of Respondents regarding their company s position in the e-hrm e journey today vs after five years (Services ( group) (Refer Annexure II - Table 9.15a) Hypothesis 12 H : There is no significant difference in the perception of the Services group regarding their company s position in the e-hrm journey today vs after 5 years. H is rejected i.e. there is a significant difference in the perception of the Services group regarding their company s position in the e-hrm journey today vs after 5 years. On a five-point scale ranging from 1: Neither understand nor value e-hrm to 5: Complete incorporation of e-hrm strategy into the business model there is a significant shift from a lower level today to a higher level after five years. (Refer Annexure II - Table 9.15a) 188

189 Perception of Respondents regarding their company s position in the e-hrm e journey today vs after five years (Manufacturing ( group) (Refer Annexure II - Table 9.15b) Hypothesis 13 H : There is no significant difference in the perception of the Manufacturing group regarding their company s position in the e-hrm journey today vs after 5 years. H is rejected i.e. there is a significant difference in the perception of the Manufacturing group regarding their company s position in the e- HRM journey today vs after 5 years. On a five-point scale ranging from 1: Neither understand nor value e-hrm to 5: Complete incorporation of e-hrm strategy into the business model there is a significant shift from a lower level today to a higher level after five years. (Refer Annexure II - Table 9.15b) 189

190 Perception of Respondents regarding their company s position in the e-hrm e journey today vs after five years (MNC ( group) (Refer Annexure II - Table 9.15c) Hypothesis 14 H : There is no significant difference in the perception of the MNC group regarding their company s position in the e-hrm journey today vs after 5 years. H is rejected i.e. there is a significant difference in the perception of the MNC group regarding their company s position in the e-hrm journey today vs after 5 years. On a five-point scale ranging from 1: Neither understand nor value e-hrm to 5: Complete incorporation of e-hrm strategy into the business model there is a significant shift from a lower level today to a higher level after five years. (Refer Annexure II - Table 9.15c) 190

191 Perception of Respondents regarding their company s position in the e-hrm e journey today vs after five years (Non ( Non-MNC group) (Refer Annexure II - Table 9.15d) Hypothesis 15 H : There is no significant difference in the perception of the Non- MNC group regarding their company s position in the e-hrm journey today vs after 5 years. H is rejected i.e. there is a significant difference in the perception of the Non-MNC group regarding their company s position in the e-hrm journey today vs after 5 years. On a five-point scale ranging from 1: Neither understand nor value e-hrm to 5: Complete incorporation of e-hrm strategy into the business model there is a significant shift from a lower level today to a higher level after five years. (Refer Annexure II - Table 9.15d) 191

192 9.2.7 Response to Question Mean ranks for the considered barriers to progress in the e-hrm e journey (Services vs Manufacturing groups) Table 9.16a (refer Annexure II) shows the mean ranks by Type of Sector (Services vs Manufacturing). Based on these the rank order for the considered barriers to the progress in the e-hrm journey in the companies is given in Table 9.16b (Refer Annexure II). Table 9.16c Rank The top five Barriers for Services vs Manufacturing groups Services Manufacturing 1 Difficulty in converting standardized packages into customized and user friendly modules Inadequate Financial Resources 2 Inadequate Financial Resources Resistance to change 3 Lack of innovation Inadequate Training 4 Insufficient tangible benefits Poor technical infrastructure 5 Issues w.r.t. Security of data Inability to convert standardized packages into customized and user friendly modules 1: Most Important; 10:Least Important Table 9.16c shows the top five barriers to progress in the e-hrm journey by Type of Sector (Services vs Manufacturing). 192

193 It can be observed from Table 9.16c that- Inadequate Financial Resources is amongst the top two barriers for both the Services and Manufacturing groups. In the Services group the topmost cause of concern is Difficulty in converting standardized packages into customized and user friendly modules, other concerns being Lack of innovation, Insufficient tangible benefits and Issues w.r.t. security of data. In the manufacturing group the in addition to Inadequate Financial Resources, other issues of concern are Resistance to change, Inadequate training, Poor technical infrastructure and Inability to convert standardized packages into customized and user friendly modules Mean ranks for the considered barriers to progress in the e-hrm e journey (MN MNC vs Non-MNC groups) Table 9.17a shows mean ranks by type of Company (MNC vs Non- MNC). Based on these the rank order for the considered barriers to progress in the e-hrm journey in the companies is given in Table 9.17b (Refer Annexure II). 193

194 Table 9.17c Rank 1 The top five Barriers for the MNC vs Non-MNC groups MNC Difficulty in converting standardized packages into customized and user friendly modules Non-MNC Inadequate Financial Resources 2 Issues w.r.t. Security of data Resistance to change 3 Lack of innovation Inadequate Training 4 Inadequate Training Poor technical infrastructure 5 Insufficient tangible benefits Insufficient tangible benefits 1: Most Important; 10:Least Important Table 9.17c shows the top five barriers to progress in the e-hrm journey by Type of Company (MNC vs Non-MNC). It can be observed from the Table that- For both the groups Insufficient tangible benefits is one of the top five concerns. For the MNC group the topmost concern is Difficulty in converting standardized packages into user friendly modules followed by Issues w.r.t. Security of data, Lack of innovation and Inadequate Training. For the Non-MNC group the topmost barrier is Inadequate financial resources followed by Resistance to change, Inadequate Training and Poor technical infrastructure. 194

195 Considered barriers to progress in the e-hrm e journey in companies (Significant difference between b groups and within groups - ANOVA) Hypothesis 16 H : There is no significant difference between groups and within groups w.r.t the considered barrier to progress in the e-hrm journey. The hypothesis is tested w.r.t each of the considered barrier (a to j) to progress in the e-hrm journey in companies. (Refer Annexure II Tables 9.18a and 9.18b). H is rejected w.r.t. the following barriers - Inadequate Financial Resources; Resistance to change; Lack of top management support; Inadequate Training; Poor technical infrastructure; Issues w.r.t. Security of data; Insufficient tangible benefits; Lack of innovation; Inability to convert standardized packages into customized and user friendly modules. W.r.t. these barriers there is a significant difference between groups and within groups - Services vs Non-MNC, Services vs MNC, Manufacturing vs Non-MNC and Manufacturing vs MNC. H 016 is accepted for the barrier - Inability to overcome bureaucratic hurdles. W.r.t this barrier there is no significant difference between groups and within groups - Services vs Non-MNC, Services vs MNC, Manufacturing vs Non-MNC and Manufacturing vs MNC. 195

196 Response to Questions 8, 9 & 10 are covered in Chapter 10: Pre Pre-requisites requisites and Challenges of e-hrm e HRM Response to Question 11 is covered in Chapter 11: Recommendations and Suggestions 196

197 9.2.8 Response to Question Expectation of respondents w.r.t. e-hrm e being successful in satisfying employees in their HR needs (Services vs Manufacturing groups) Table 9.19 (refer Annexure II) shows the expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs Services vs Manufacturing groups. Hypothesis 17 H : There is no significant difference in the expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs between Services vs Manufacturing groups. H is rejected i.e. there is a significant difference in the expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs between Services vs Manufacturing groups. On being asked whether e-hrm will be successful in satisfying employees in their HR needs, a substantially large proportion (89%) of respondents in the Services group gave a reply in the affirmative (Yes), as compared to the Manufacturing group for whom the proportion was 71%. Almost an equal proportion (5%) gave a reply in the negative (No) in both the groups. In the services group a very small proportion (6%) were undecided, whereas in the Manufacturing group a substantial proportion (23%) gave the reply as Can t Say. There is a significant difference in the expectation levels of the two groups. (Refer Annexure II Table 9.19). 197

198 Expectation of respondents w.r.t. e-hrm e being successful in satisfying ing employees in their HR needs (MNC( vs Non-MNC groups) Table 9.20 (Refer Annexure II) shows the expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs MNC vs Non-MNC groups. Hypothesis 18 H : There is no significant difference in the expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs between MNC vs Non-MNC groups. H is rejected i.e. there is a significant difference in the expectation of respondents w.r.t. e-hrm being successful in satisfying employees in their HR needs between MNC vs Non-MNC groups. On being asked whether e-hrm will be successful in satisfying employees in their HR needs, all respondents (100%) in the MNC group replied in the affirmative (Yes) as compared to the Non-MNC group for whom the proportion was 73%. In the Non-MNC group a small proportion (6%) gave a reply in the negative (No) whereas a substantial proportion (21%) gave the reply as Can t Say. There is a significant difference in the expectation levels of the two groups. (Refer Annexure II Table 9.20). 198

199 9.2.9 Response to Question Expectation of respondents w.r.t. the benefits from e-hrm e justifying the expenditure on the same (Services vs Manufacturing groups) Table 9.21(Refer Annexure II) shows the expectation of respondents w.r.t. the benefits from e-hrm justifying the expenditure on the same Services vs Manufacturing groups. Hypothesis 19 H 0 : There is no significant difference in the expectation of respondents w.r.t. the benefits from e-hrm justifying the expenditure on the same between Services vs Manufacturing groups. H is rejected i.e. there is a significant difference in the expectation of respondents w.r.t. the benefits from e-hrm justifying the expenditure on the same between Services vs Manufacturing groups. On being asked whether the benefits from e-hrm will justify the expenditure on the same a very large proportion (96%) of the respondents in the Services group in comparison to only 50% in the Manufacturing replied in the affirmative (Yes). Only 2% in the Services group as compared to 31% in the Manufacturing group replied in the negative (No). A negligible proportion (1%) in the Services group were undecided in their opinion as compared to 21% in the Manufacturing group. There is a significant difference in the expectation levels of the two groups. (Refer Annexure II Table 9.21). 199

200 Expectation of respondents w.r.t. the benefits from e-hrm e justifying the expenditure on the same (MNC vs Non-MNC groups) Table 9.22 (refer Annexure II) shows the opinion of respondents on whether the benefits from e-hrm justify the expenditure on the same MNC vs Non-MNC groups. Hypothesis 20 H : There is no significant difference in the expectation of respondents w.r.t. the benefits from e-hrm justifying the expenditure on the same between MNC vs Non-MNC groups. H is rejected i.e. there is a significant difference in the expectation of respondents w.r.t. the benefits from e-hrm justifying the expenditure on the same between MNC vs Non-MNC groups. On being asked whether the benefits from e-hrm will justify the expenditure on the same all respondents in the MNC group gave a reply in the affirmative (Yes) as compared to 58% in the Non-MNC group. About 25% in the Non-MNC group gave the reply as No and about 17% as Can t Say. There is a significant difference in the expectation levels of the two groups. (Refer Annexure II Table 9.22). 200

201 Response to Question Opinion of respondents on various aspects of the e-hrm functioning (Services vs Manufacturing groups) Table 9.23 (refer Annexure II) shows the mean ratings on Statements 1 to 30 by Type of Sector (Services vs Manufacturing) Hypothesis 21 H : There is no significant difference in overall opinion on the considered aspects of e-hrm between Services vs Manufacturing groups. H is rejected i.e. there is a significant difference of overall opinion on statements 1 to 30 between Services vs Manufacturing groups. (Refer Annexure II Table 9.23) W.r.t the Services vs Manufacturing groups the findings show that the Manufacturing group is moving towards achieving Administrative excellence (routine HR tasks being e-enabled) whereas the Services group has moved beyond administrative excellence and is now in the process of achieving Service excellence (high usage of HR Service Delivery Tools). The gap between the Manufacturing and Services group is likely to be bridged in about a time-span of 5-6 years. However, it is yet to be seen how fast both the sectors move towards Performance Excellence (HR metrics and Business Intelligence). 201

202 Opinion of respondents on various aspects of the e-hrm functioning (MNC vs Non-MNC groups) Table 9.24 (refer Annexure II) shows the mean ratings on Statements 1 to 30 by type of Company (MNC vs Non-MNC). Hypothesis 22 H : There is no significant difference in overall opinion on the considered aspects of e-hrm between MNC vs Non-MNC groups. H is rejected i.e. there is a significant difference of overall opinion on statements 1 to 30 between MNC vs Non-MNC groups (Refer Annexure II Table 9.24). W.r.t. MNC vs Non-MNC groups the findings point out that the MNC group has already moved from Service Excellence towards Performance Excellence (HR metrics and Business Intelligence) whereas the Non-MNC group has yet to achieve Service Excellence. 202

203 Opinion of respondents on various aspects of the e-hrm functioning (all four groups) [Refer Annexure II Tables 9.25 (i) to 9.25 (xxx)] Opinion of respondents on each statement (1 to 30 respectively) marked on a five-point scale - Strongly disagree, Disagree, Undecided, Agree and Strongly agree, are as follows: (i) The opinion of respondents regarding the view that the e- recruitment process operates with the need to match employee profile with positions vacant in the organization is shown in Figure 9.1. It can be observed from the above figure that about 50% of the respondents agree/strongly-agree with the view that that the e- recruitment process operates with the need to match employee profile 203

204 with positions vacant in the organization. Only about 20% disagree/strongly-disagree with the view and about 30% remain undecided. (ii) About 50% of the respondents agree/strongly-agree with the view that e-hrm technology has helped in reducing the time and effort in preparing the job-description and job-specification whereas 32% disagree/strongly-disagree. About 20% remain undecided. (iii) About 44% of the respondents agree/strongly-agree with the view that the candidate application maintained and recorded online has made the applicant tracking system easily accessible. About 30% disagree/strongly-disagree and about 26% remain undecided. (iv) Regarding the view that the e-hrm technology has ensured an effective salary administration system, about 61% of the respondents agree/strongly-agree and only 7% disagree. About 32% of the respondents are undecided, whereas none of the respondents strongly- disagree with the view. 204

205 (v) Opinion of respondents regarding the view that the pay structure has been clearly defined in the e-hrm system is shown in Figure 9.2. The above figure shows that a majority of the respondents (about 93%) agree/strongly-agree with the view that the pay structure has been clearly defined in the e-hrm system. About 1% remain undecided on the issue and only 5% disagree. None of the respondents strongly-disagree with the view. (vi) W.r.t. timeliness of pay-cheques in reaching the employees since the implementation of e-hrm, about 56% of the respondents agree/strongly-agree and 29% disagree with the view. About 15% are undecided and none of the respondents strongly-disagree with the view. 205

206 (vii) About 24% of the respondents strongly-disagree with the statement that the recording of employee absence, vacation, sickness etc via e-hrm technology reflects in the pay roll system whereas about 17% disagree. Of the total respondents about 41% agree/strongly-agree with the statement and about 18% of the respondents remain undecided. (viii) Figure 9.3 shows the opinion of respondents on the issue that the e-hrm process has enabled employees to enroll for flexible benefits administration effectively. A substantial proportion of respondents i.e. about 31% remain undecided on the issue that the e-hrm process has enabled employees to enroll for flexible benefits administration effectively. 206

207 Also, a substantial proportion i.e. 41% disagree/strongly- disagrees on the statement. Only about 28% agree/strongly-agree on the issue. (ix) A substantial proportion i.e. 37% of the respondents remains undecided on the view that the compensation frame work implemented by the e- HRM allows managers to calculate incentives and rewards for the employees online and very small proportion (4%) disagree/strongly-disagree with the statement. More than ½ of the respondents (58%) agree/strongly-agree with the view. (x) More than ½ of the respondents (52%) agree/strongly-agree with the opinion that the assessment of employee performance online helps to calculate performance related pay effectively. A relatively small proportion of 7% remain undecided on the issue. About 41% of the respondents disagree/strongly-disagree. 207

208 (xi) Figure 9.4 shows the opinion of respondents on the view that e- HRM process has been effective in providing clear role definitions. The above figure shows that several respondents i.e. about 25% are undecided on the view that e-hrm process has been effective in providing clear role definitions. A substantial proportion (50%) disagree/strongly-disagree with the view. Of all the respondents 25.38% agree/strongly-agree with the view. (xii) A substantially large proportion of respondents (34.90%) strongly-disagree with the view that the e-hrm process has enabled to identify and nurture individual talents and help to raise their performance. About 7% disagree with the view whereas about 26% remain undecided. Of the total respondents about 33% agree/strongly-agree with the view. 208

209 (xiii) About 56% of the respondents agree/strongly-agree with the view that the self service e-learning opportunities have supported employees to keep their knowledge and skills up-to-date. A substantial proportion i.e. about 35% remain undecided on the issue whereas a relatively small proportion i.e. 9% disagree/stronglydisagree with the view. (xiv) About 41% of the respondents agree/strongly-agree with the view that the e-learning strategies have brought about an effective change in leadership development and almost an equal proportion disagree/strongly-disagree with the view. Of the total respondents 18% remain undecided on the issue. (xv) About 43% of the respondents agree/strongly-agree with the opinion that e-hrm has provided sufficient opportunities for employees career planning and development. Of the total respondents 36% disagree/strongly-disagree with the view whereas 21% remain undecided. (xvi) W.r.t. the view that training through e- HRM helps in recommending candidates for promotion and individual compensation awards about 46% of the respondents agree/stronglyagree. A substantial proportion (45%) disagrees and only 5% strongly disgrees with the view. About 10% remain undecided. 209

210 (xvii) The opinion that the employees have been provided with necessary resources and sufficient training to be able to use e- HRM technology is shown in Figure 9.5 From the above figure it can be seen that more than ½ of the respondents (52%) disagree/strongly-disagree with the opinion that the employees have been provided with necessary resources and sufficient training to be able to use e- HRM technology. About 32% of the respondents agree/strongly-agree with the view and about 16% remain undecided. (xviii) Regarding the opinion that the intranet delivered communication system has provided opportunity for employees to participate in communication and consultation activities approximately 50% of the total respondents remain undecided on the issue and about the same proportion agree/strongly-agree on the 210

211 issue. None of the respondents disagree/strongly-disagree with the view. (xix) A substantial proportion of the respondents( 41%) disagree with the view that the e-hrm system is geared to understanding and following grievance, disciplinary and poor performance issues in a timely and compliant manner. Also, about 33% are undecided on the issue. Of the total respondents about 26% agree/strongly-agree with the view. (xx) The opinion of respondents on the view that the e-hrm system has increased employee commitment with the organization by boosting their motivation and confidence levels is shown in Figure 9.6. Figure 9.6 shows the opinion of respondents w.r.t. the view that the e- HRM system has increased employee commitment with the 211

212 organization by boosting their motivation and confidence levels about 46% of the respondents agree/strongly-agree and 35% disagree/strongly-disagree with the view. Of the total respondents about 18% remain undecided. (xxi) A substantial proportion of the respondents (42%) remain undecided on the opinion that the e-hrm process ensures compliance with policy and procedures and equal proportion agree/strongly-agree with the view. Of the total respondents about 15% of the respondents disagree with the view whereas none of the respondents strongly- disagree. (xxii) On the opinion that working with e-hrm is clear and understandable a substantially large proportion (42%) remains undecided on the issue, about 46% agree/strongly-agree and about 12% disagree with the view. None of the respondents stronglydisagree with the view. (xxiii) W.r.t. the view that policies formulated under e-hrm technology are easy to comprehend, credible and are user friendly, a substantial proportion (45%) of the respondents remain undecided. About 47% agree/strongly-agree and a relatively small proportion of respondents i.e. about 8% disagree/strongly-disagree with the view. 212

213 (xxiv) About 35% of the respondents disagree with the view that since the implementation of e-hrm technology the HR department is increasingly involved in strategic HR activities. A very small proportion i.e. about 1% strongly- disagree with the view. About 29% remain undecided whereas about 35% agree/strongly-agree with the view. (xxv) Figure 9.7 depicts the opinion of respondents on the view that e-hrm technology is compatible with other systems. The above figure shows that w.r.t. the view regarding the e-hrm technology being compatible with other systems in use, 43% of the 213

214 respondents agree/strongly-agree with the view and about 46% disagree/strongly-disagree. Of the total respondents about 11% remain undecided on this issue. (xxvi) The opinion of respondents on the view that e-hrm system is user friendly is shown in Figure 9.8 The above figure shows that regarding the view that e-hrm system is user friendly, more than ½ i.e. about 51% of the respondents agree/strongly-agree with the view whereas about 31% disagree. Of the total respondents about 18% remain undecided and none of the respondents strongly-disagree. (xxvii) In the opinion of respondents regarding the timely availability of information through the e-hrm system, about 54% of 214

215 the respondents agree/strongly- agree with the view whereas only 19% disagree. Of the total respondents about 27% remain undecided. (xxviii) Figure 9.9. shows the opinion of respondents on the view that the e-hrm system provides up-to-date information. A very large proportion of respondents i.e. about 88% agree/stronglyagree with the view that the e-hrm system provides up-to-date information. None of the respondents disagree/strongly- disagree with the view whereas about 12% remain undecided. 215

216 (xxix) The opinion of respondents on the statement that the e- HRM system has ensured a clear fit between business and HR strategy is shown in figure 9.10 The above figure shows that w.r.t the opinion of respondents on the view that the e-hrm system has ensured a clear fit between business and HR strategy about 52% of the respondents agree/strongly-agree and 25% disagree. None of the respondents strongly disagree whereas about 23% remain undecided. (xxx) W.r.t. the view that e-hrm has been an effective change agent for positively molding the employees' attitudes towards the use of technology more than ½ i.e. about 56% of the respondents agree/strongly-agree whereas about 30% disagree. None of the 216

217 respondents strongly-disagree with the view and about 14% remain undecided. A majority (more than half) of the respondents agrees with the views that - e-recruitment process operates with the need to match employee profile with positions vacant in the organization; pay structure has been clearly defined in the e-hrm system; the assessment of employee performance online helps to calculate performance related pay effectively; self service e-learning opportunities have supported employees to keep their knowledge and skills up-to-date; e-hrm system is user friendly; e-hrm system provides up-to-date information and e-hrm has been an effective change agent for positively moulding the employees' attitudes towards the use of technology. However, as per the respondents view the e-hrm system needs to gear up w.r.t. the following areas - enabling employees to enroll for flexible benefits administration; providing employees with necessary resources and sufficient training to be able to use e-hrm technology and enabling the HR department to be increasingly involved in strategic HR activities. The analysis of results also helped in identifying the issues and challenges involved in the implementation and maintenance of e-hrm systems. These are enumerated in the next chapter. 217

218 CHAPTER 10 The Pre-requisites and Challenges of e-hrm 218

219 CHAPTER 10 The Pre-requisites and Challenges of e-hrm As always, technology comes with its inherent risk- that of huge set up costs, overkill and loss of the human touch, security of information generated, managing the data, monitoring and feedback, etc. The decision to go in for e-hrm involves a lot of brain racking sessions and utmost care and caution. It would not at all be proper to deduce that simply installing e-hrm software will work as a magic wand for the company. Hence, first and foremost it is very important for the HR professionals to get comfortable with the technology before they make other people see the value of such tools. A careful analysis and interpretation of the information collected helped in identifying the following pre-requisites and challenges w.r.t. any e- HRM venture: The Pre-requisites requisites of e-hrm e Commitment to change management from the start of the project Change management is mandatory. There are too many horror stories of technology initiatives that did not work when they are treated totally as a technology implementation. Many organizations develop special change management teams. Involvement of the change management team is 219

220 necessary from the start to ensure that adequate documentation and communication occurs early in the project and continues throughout the project Presence of an IT Culture an important pre condition Companies must first figure out whether they need e-hrm before calling in consultants to implement solutions. Organizations seeking enhanced transparency go for e-hrm. The software provided by vendors needs to be tailored to organizational requirements. A lot of research and in-depth study and analysis need to be done to ascertain the feasibility of the project especially in terms of the cost factor and the sustainability of the project. Only those firms, which are thoroughly prepared for e-enabling HR, should go for it. This presupposes the presence of an IT culture, the HR department as a process owner, being clear about the objectives of e-hrm, choosing the right design and implementation partners and a willingness to spend hours training employees on the optimum use of the portal Culture of Knowledge management A point to make note of is that Knowledge management (KM) and e- HRM go hand in hand. Tacit knowledge without e-hrm will tend to reside within people and manuals, making learning difficult. Godrej currently has an MS Share-Point knowledge portal, which serves as KM system among cross-functional teams. Knowledge management at P&G 220

221 is all about Team spaces provided to all teams to capture and integrate learnings by each individual in a team. It also has functional websites where information about each functional area is shared on a website to capture learnings and share it Involvement of all the stakeholders early on to gain their buy-in This is an important pre-condition for any e-hrm venture to be initiated and to be implemented successfully Communication of the value of any technology solution to the users Communicating the value of any technology solution for both the organization and more importantly for the people who will use the solution is necessary. This communication must be in the users language Clarity on the part of all users regarding the question- What s in it for me? Managing the venture successfully requires not just implementing the technology but also managing the expectations of all to be affected. 221

222 Adequate training to the users Assuming that self service is supposed to be so easy to use that no training is required would be to a major blunder. The process changes typically need to be absorbed into the organization s way of doing business and training is the way to make that acculturation. Training each target audience is a necessary pre-condition. Allocating at least 15% of the overall project budget to change management, training and communication can make a substantial difference toward the organization s perception of success. Allocating adequate time, resources, and budget to training, communications, and change management will make the difference toward achieving a positive user community perception of a successful HR technology project The Challenges of e-hrm e Among the most prevalent issues facing management are control, business requirements, and best practices (Ptak 2000). Some of the major challenges that have been identified are Cost Implications Costs tend to be proportional to requirements and the type of organisation. Given the costs, companies must e-enable only those operations that are vital, essential or desirable. IDBI Bank invested about Rs.32 lakh in an Oracle HRIS (HR information system) and Rs

223 lakh in an e Learning portal. It further invested about Rs lakh for developing an e-training module. Thanks to a clear set of objectives and detailed planning the bank expected a payback on its investment in three years for the HRIS and six months for the e-learning venture Aligning the e-hrm e system with the business requirements ERP applications vary widely in their allowance for control, typically assuming either a corporate or business-unit locus of control. Hence management must consider the ERP s stance on control to ensure it will meet the business requirements of the company. Also, it is critical for managers to understand the vendors naming conventions and software modules to gain an understanding of how these features can be implemented to meet the requirements of the business s activities Security of the information generated A related issue of concern is the security of the information generated through the e-hrm system. A company needs to ensure that outsiders or competitors should not access the information. Quite clearly, security is an important area of concern in e-hrm. In this context proper vendor selection is a critical condition to ensure confidentiality by avoiding goofups and being misled. At godrejite.com the site opens only when an employee logs on with a password. Employees are asked to keep changing passwords and those who forget are penalized. 223

224 Oracle has multi-level data protection facilities. There is restricted access to business processes by limiting menu options for different user types, known as responsibilities. Examples might be a UK recruitment manager or a US compensation manager. There may be limited access to different self-service functions in the same way. For instance, certain users may be restricted to see only (job) applicants and not the entire list of employees through a form Managing the data Managing the huge amount of data generated through HRMS is a relatively new challenge for companies. Some companies like Infosys, L&T, Godrej, etc. are mining this data to understand patterns like workforce utilization levels, tracking employee attrition rates etc Overkill and loss of the human touch Another challenge is the avoidance of overkill and loss of the human touch. It should not be the case that in a bid to be techno-savvy we neglect the human side. No one likes to interact constantly with faceless names answering queries on the phone or replying to questions through the system network. While broadcast messages, regular updates as well as routine personnel administration can be technologically enabled, group meetings, counseling and other human interventions are critical to augment employee engagement levels. 224

225 For traditional companies the task is more so difficult E-HRM is more so a challenge for the traditional companies which need to bring about a change in the mindsets to a large extent. These companies as compared to those in the IT sector, BPOs etc. are having a tougher time getting people to speed up on these e-hr tools. It is very important first for the e-hrm professionals to get comfortable with the technology before they make other people see the value of such tools Customization to be taken up in the right perspective Most of the packages are of international standards and based on best practices. Hence customization is huge in the Indian context and needs to be taken up in the right perspective. Customizations can also be costly and maintaining and upgrading customizations can be cumbersome. As rightly commented by a senior SAP HR executive in an Indian giant Content is most important. Without content even the best of package is as good as a Ferrari parked in garage without petrol. A high degree of technical finesse is required by people who handle these packages so much so that many a times function takes a backseat. 225

226 Training the users a crucial issue It is said that ERP packages are integrated but in the true sense this is not the case because of non-translation of business model. Training the users is many a time a long drawn out process, as many people do not find them to be user friendly. Business Process Re-engineering is a must wherever any ERP program is introduced and a Change Management program should go hand in hand with implementation. Data has to be complete, accurate and relevant to take maximum leverage of the solution The Return On Investment on an e-hrm e project to be justified How does one ensure a return on e-hrm investment? The ROI on an e- HRM project is the projected cost reduction brought about by the system and its impact on revenue/profits over time. The e-hrm initiative should align itself with the overall HR and IT strategy and ultimately, with the business strategy to ensure ROI ERP to function along with other systems to be successful Another aspect which needs to be looked into is that while ERP helps companies to integrate systems across the organization, it falls short in communicating across organizational boundaries. Companies wanting to integrate their value chains with the business activities of their 226

227 suppliers, business partners and customers typically have to implement systems other than ERP like Customer Relationship Management (CRM), etc Continuous monitoring and feedback Continuous monitoring and feedback are critical for the success of any e-hrm effort in an organization. A careful consideration of all the outlined issues is imperative before undertaking any e-hrm venture. 227

228 CHAPTER 11 RECOMMENDATIONS AND SUGGESTIONS 228

229 CHAPTER 11 RECOMMENDATIONS AND SUGGESTIONS All information systems can be described as organizational and management solutions to challenges posed by the environment that will help create value for the firm. Information systems are more than computers. Using information systems effectively requires an understanding of the organization, management, and information technology shaping the systems. E-HRM has become an inseparable part of the functioning of almost all the large business players in the current scenario. However, as always technology comes with its inherent risks. Hence, it is very important for the HR professionals to get comfortable with the technology before they make other people see the value of such tools. Some of the important factors to be considered before going in for any e-hrm venture are highlighted in this Chapter Plan lanning ning for employee and organizational issues from the outset Launching a new technology that changes a company process is not as simple as flipping a switch. To successfully initiate a new process -- and realize the full value of the investment -- companies must address possible employee and organizational issues from the outset. Most 229

230 companies understand the need to address potential issues when implementing large-scale, cutting-edge initiatives. But many companies may underestimate the importance of preparing their organizations for small to mid-sized projects too. Consider the case of a company adding online enrollment to its benefits administration system. Of course, the company must upgrade its technical capabilities, but the organization also must anticipate how the change will impact its employees and processes. The company should start by educating its employees about the advantages of online enrollment, e.g., the system will be faster, more accurate and allow workers to enroll at their convenience. Access issues -- where, how and when employees can use the system -- must be addressed. Also, employees need to know that their access to plan descriptions and other helpful information will be enhanced. At the same time, HR personnel must gear up for the changes associated with abandoning the labor-intensive, time-consuming paper enrollment process. New job descriptions may be necessary, and the e- HR staff must be trained to help employees navigate the new system. The organization also must establish the processes needed to ensure timely, accurate transfers of electronic enrollment information to the vendors. The Key to Success lies in seeking stakeholder engagement and buy-in, assessing organizational impact and creating communication and training plans 230

231 11.2 Assessing the Flexibility of the HR Technology Reduce the risk of technology obsolescence by assessing the flexibility of the solution prior to implementation. A technology project as seemingly straightforward as a new HRIS or benefits enrollment system can take several years to implement. If the technology is obsolete by the time it is implemented, then its long-term value will be limited. One way to reduce this risk is to shorten the project timeline. Another is to ensure that the solution is flexible enough to adapt to changing needs in the future. The same is true for the organization's HR technology strategy. In order to be flexible the technology should be capable of- being adapted to a change in business strategy serving a changing audience being deployed across multiple functions providing needed support for non-hr systems being used for multiple tasks with few modifications being deployed globally accommodating growth Most important is that the technology must adapt to significant growth in the organization. Explore this question in terms of both technical feasibility and functional use. Each can cause a bottleneck as the organization grows. 231

232 11.3 Service Delivery Applications To serve more employees, companies should move to manager self service and a service center approach or outsource their processes and systems. To keep the processes and systems in-house, implement help desk for HR. To outsource, partner with a vendor with state-of-the-art self service offerings HR Service Centers: Investments to Consider One needs to consider the advantages of separating out HR administration from more strategic work and of standardising and centralising this activity in an in-house HR service centre. In this context the issues that need to be addressed are managing the transition, staffing the service centre and the role of technology. Many employers have sought to streamline and centralize their routine HR transactions and processes in an HR service centre. The service centre is often the lynchpin of a company s efforts to move towards a more efficient HR function. It also tends to act as the focal point for handling HR enquiries from line managers and employees. The service centre often operates alongside an HR intranet and employee selfservice. Among the benefits of this model are cost savings from lower transaction costs and the need for fewer staff, a greater consistency of 232

233 approach across a company to HR matters, and a more responsive service from HR that is better aligned to overall business goals. Setting up an HR service centre can be a complex and time-consuming undertaking, particularly in organizations where many different HR practices have hitherto been the norm. The concept needs to be clearly defined and communicated and the transition process carefully planned. As budgets grow for HR technology investments, companies are capturing more value by using their shared service centers to handle the simple tasks that comprise their more complex HR service delivery processes. Companies are studying their HR service delivery processes, their shared service centers and the basic HR functions they handle. Shared service centers have already been shown to reduce costs and improve basic HR service delivery. As a result, smart companies are looking beyond the basic processes and are capturing more value by examining three areas of potential value: middle-tier processes, business event management and service center performance measurement. Because the service center infrastructure already exists, the financial commitment needed to invest in these areas is well within the reach of many expanding HR budgets. Middle-tier process improvements: Typical HR shared service center representatives spend their time answering simple questions about benefits, payroll and compensation. They also process transactions such as address changes and benefits enrollment for employees who don't have web access. The goal is to quickly address 233

234 individual employees' questions or transaction needs and mark their cases closed. By directing managers to the e-hr shared service center, companies reduce the time e-hr generalists spend on the performance review process and give managers the help they need. Companies also more easily capture effectiveness data by using service center tools that track questions and issues. For example, if call data shows 70 percent of managers asked for assistance with an online review tool, its clear more training and/or system changes are needed to make the tool easier to use. Business event management: Also consider event management for the shared service center. Why maintain additional administrative staff in a training unit to handle course questions or class registrations when the shared services group can do the work? During an acquisition, why create a separate team to answer policy questions or process selection and retention changes? This task can be handled by the shared services group. Performance measurement: Measuring service center performance is another area of overlooked potential. While most companies adequately measure the basics -- the number of calls or transactions, talk time, abandon rate, case rates and whether service-level commitments are being met -- far fewer focus on actionable measures that drive business decisions. 234

235 Actionable measures give companies information that can be used to determine future strategies. By analyzing call patterns and topics, companies gain insight into employees' top concerns. This information can then be used to develop targeted programs to resolve problems before they cause harm Outsourcing HR administration The business case for outsourcing HR administration centers on the potential for cost savings to be delivered by investment in e-enabling HR transactions and processes. The delivery channels for such arrangements typically include e-hr self-service routes and HR service centers. Through this web-enabled technology, the cost of HR transactions can be dramatically reduced by standardization and automation of processes. Outsourcing to an external supplier is often the best way for an employer to gain access to the technology that enables it to achieve a step change in HR service delivery. Outsourcing HR administration is a major project for any organization and requires careful planning. The starting point is usually a feasibility study where compatibility with the preferred partner can be assessed and any potentially difficult issues anticipated. The complex implementation phase that follows often sees the transfer of some HR staff to the supplier and usually requires personnel data to be verified. Once the service is up and running, progress towards the partners' 235

236 objectives can be monitored through service level agreements and key performance indicators. Freed from the HR administrative workload, a company's newly streamlined HR function can act more strategically both in policy formulation and in business partner roles. Although growth in outsourced HR administration contracts is steady rather than spectacular, more suppliers are entering the market with some targeting small to medium-sized companies rather than the big multinationals Creating an Effective estatement: a Primer Communicating the value of investment in employee compensation, health insurance, pension plans and other benefits is crucial for engaging and motivating employees. Chances are employee compensation, bonuses, health insurance, pension plans, vacation time, sick leave and other benefits add up to the single largest expense in the budget. Communicating the value of these investments is crucial for employee engagement. According to the most recent Watson Wyatt Work USA(R) research, employees who know the value of their total compensation package are twice as likely to be engaged in their work as employees who don't. Web-based total compensation statements, or estatements, are important tools for increasing employees' benefits awareness. Important features include 24/7 accessibility, real-time data and easy integration with external vendors, HRIS systems and other data sources. As with 236

237 any technology tool, getting the most out of estatements requires thoughtful design and planning. The following five steps can help: Focus on integration by providing quick, up-to-date access to plans and flexible spending account balances, pension projections, stock prices, payroll and other dynamic data -- all from one location. Encourage interactivity by linking with pension or health and welfare benefits modelers and showing the impact of different scenarios on the total compensation. Promote ease-of-use by making estatements should be attractive, easy-to-navigate and accessible from anywhere via a single signon over a secure server. Communicate early and often to let employees know why the statements are important, where they can be found and how they should be used. Periodically solicit feedback from employees. estatements are valuable tools for improving employees' awareness of compensation and benefits. When properly designed and implemented, they improve employees' knowledge and satisfaction while reducing HR's administrative workload and costs. 237

238 11.7 Use of Case Management Tools for Compensation Planning Simple to use and relatively low-cost, case management tools help to reduce call volume, improve response times and better manage largescale employee events. But for greater control over service center performance one should take advantage of the advanced functionality available with many case management systems. Effective case management tools provide a comprehensive view of individuals' transaction histories, allowing representatives to see both past and current inquiries for an employee and to take a proactive approach to resolving employee questions. Good case management tools integrate with databases across the organization to automatically populate forms with required data. When an employee's ID number is entered into the form, information such as the employee's name, location, date of birth, position and cost center can be automatically retrieved and displayed. Both employees and center representatives save time with this auto-update feature. Sound case management systems provide center managers and executives with reports that compare response times, case closure rates and other measures against service targets. These metrics allow the manager to generate these reports at any time, to determine whether his center is performing as expected. 238

239 Evolving corporate objectives and volatile economic conditions can mean that HR must frequently deal with events, such as mergers and workforce reductions that affect only some employees. A good case management tool can automatically set up cases for all affected employees and track their progress through the event. Adding advanced case management tools or upgrading the existing system can considerably add to the capability to track and manage individual and group transactions from start to finish. The result: Continuity across the service center operations and reliable performance measurement E-Recruitment With the advent of the World Wide Web, there has been a paradigm shift in the ways companies recruit the world over. Some of the advantages of Internet Recruiting are as follows:- Hires Top Talent Lowers Recruiting Costs Telescoping Recruiting Lead Time Enlarged Candidate Pool Phenomenal Geographical Reach A Unique two-way Communication Medium 239

240 Streamlines Hiring Process Create One s Very Own Employment Site Choosing Job-Sites and Managing Job Postings Creating a Killer Job Posting Multi-site Resume Harvesting It can be said that it is very significant area which is leading to the growth of the e-recruitment market, is its increasing usage by placement agencies. Besides this, the e-recruitment is also concentrating on areas like heavy industries, the public sector and even entertainment, where traditionally not many placement agencies have touched base upon E- Retirement While employees' awareness of the value and costs of health care benefits has grown in the past several years, their understanding of the full value of pension benefits often lags behind. A company can improve the perceived value of pension benefits so that the costs are aligned with that value in the eyes of employees. The best bet is to help employees calculate today's value of their pension benefit so they have an informed view of their future benefits. The following may be considered: Offer an online pension "estimator" delivered from a web site with simple, easy-to-use navigation. 240

241 Provide online retirement income statements that make multiple sources of retirement funding seem more "real" to employees. The best examples include projections for pension plans, profit-sharing plans, personal savings and Social Security income. Establish periodic retirement communication through links on a corporate intranet or portal. Even better, employees can receive retirement-related reminders in response to life events or visit financial planning portals that provide pension and retirement information. Consider starting small and scaling up as resources permit and retiree needs increase. For retiree health care benefits, begin by extending online enrollment and benefit change capabilities to retirees either through an existing web site developed for active employees or through a stand-alone retiree site. To scale up, a tiered approach to managing retiree inquiries can be adopted. In the first tier, retirees use self- service tools to handle simple transactions and information requests. To solve complex situations, such as Medicare integration, retirees advance through additional tiers of service until the problem is resolved by individuals with the appropriate expertise. Adding web-based modeling tools is another way to scale up. These modelers demonstrate the impact different choices have on out-ofpocket costs incurred by individual retirees. In addition, such models show how company-sponsored retiree medical benefits interact with Medicare entitlements. To help the retirees make more informed and 241

242 more cost-effective decisions, one can offer them health management information via a designated Intranet site Data mining tools With the introduction of technology into virtually every HR process, organizations are capturing thousands of pieces of potentially useful employee information every day. However, this data can be useless unless data mining tools are used to put the information to work. Data mining tools use regression and other analytic techniques to discover and report correlations and trends among sets of data. In directed data mining, automated tools apply specific questions to specific sets of data. Undirected data mining uses automated tools to scan volumes of data looking for otherwise undetectable patterns and relationships. To get the most from data mining processes, organizations should: Improve data accuracy Establish global standards Emphasize actionable insight Investing in Portal Technology While the potential expansion of employee portal and intranet budgets is welcome news, capitalizing on it requires careful prioritization of resources. Personalization and smart search capabilities are two 242

243 investments that companies should consider. Since the economy has improved, the budget for employee portals is finally expanding. Personalization: Portals use role-based personalization to display information based on a user's identity. Personalization tools pull from the company's HR information system, IT network log-in database and other data sources to identify users and determine which content and applications should be displayed. By acting as both filters and routers, the personalization tools ensure portal users see only the information and applications that are relevant to their specific jobs, departments, business units, locations or personal circumstances. The benefits of personalization are three-fold. First, it gives employees the information they need without requiring them to sift through materials they don't. Second, it helps companies direct communications and messaging to specific employee groups. And third, it reduces the number of redundant, independent websites set up to serve separate audiences, producing tangible labor and cost savings. Smart searching: Smart searching is another important tool to consider. The most frequent complaint from employees about their organization's portal is, "I can't find what I'm looking for." By putting strong, "smart" search engines in place, companies help employees find the information they need, when they need it, with a minimum of effort. Smart searching capabilities also give employees access to related information. 243

244 The bottom line is that companies should approach portal expansion strategically and focus on tools that create efficiencies and help align employees with organizational objectives Best Practices of HR Portals Here are some suggestions from companies that have been successful getting a portal up and running. Company site should be designed as an "employee-centric" site, which means that accessibility and functionality from the end user s standpoint are central to all design decisions. New tools and applications should be user-friendly, easy-to-navigate and intuitive. Facilitate communication between technical and content people. People who work in close physical proximity tend to get to know and understand each other better. Perform rapid prototyping. Devise a simple prototype of an HR module, implement it, and then work with end users to expand the functionality of the system. Personalize or customize wherever possible.. Differences in benefits and policies at different plant locations may also require customization of content by location. Create and follow a clear, step-by-step implementation approach. First, make sure that the strategic plan for automation 244

245 aligns with HR goals and the company s overall strategy. Then, rather than rolling out everything on the intranet all at once, a stair-step approach gives employees time to learn the new system piece-by-piece. Introduction of new tools keeps them coming back. Develop a process for content ownership and updating. If users detect that the site isn t being regularly updated, they are unlikely to continue using the system. There should be a well-defined process by which content leaders update Web information. Evaluate processes before automating them. Instead of automating an inefficient process, reengineer it and then automate it. Provide "self-service" access for everyone. If employees do not have access to their own PC or kiosk-based PCs, an IVR (interactive voice response) system may be necessary. Mobile employees who do not have network availability and use modems may need a text-only version of the HR Web that provides relief from long download times. The option of making it possible for employees to access the intranet from home could also be considered. "Advertise" new content. Be creative in introducing new features. One way to do this is to organize a contest with prizes to raise employee interest. Another way is to let the intranet market 245

246 itself by spreading announcements throughout Web space with cross-linked sites. "Brand" the company site. Give the HR site a name and identity to help employees perceive it as the "go to" place. Make the Web the authoritative source for HR information. Develop ways to attract and retain talented Web designers. Web interface design is a hybrid of communication, industrial design, and technology. Make this the only game in town. For example, if it expected of employees to enroll in benefits online, take away the traditional paper enrolment process. Create a fallback resource. For employees experiencing difficulty using the Intranet, set up a "help desk" to answer questions about Web tools and features and to direct them to needed Web information E-learning E-learning is increasingly being used by employers to complement more traditional training methods. As e-learning materials have become more widely accessible, organizations have developed a better understanding of what can realistically be achieved. While increasingly sophisticated software packages are now available, employers are now 246

247 designing e-learning resources on the basis of what should be implemented. Many organizations are now adopting a blended approach to learning and development. This is based on the recognition that e-learning is just one of many forms of training delivery, all of which have a role to play in providing employees with essential knowledge and understanding. The greatest strength of e-learning lies in its potential to provide a consistent level of training when and wherever it is needed. Benefits of e-learning The main benefits of e-learning as a training medium can be summarized as follows: improved accessibility of training materials increased flexibility, with training delivered to staff in bite size chunks greater consistency all staff receive the same information at the same level sustainability of content and learning value for money the potential for significant savings in the cost of travel and associated expenses. 247

248 11.14 HR intranets HR intranets are playing an important role in reshaping the e-hr function. They play a pivotal role in providing Business-to-employee services. They provide their three main target groups - employees, line managers and the HR function itself - with a single point of access to a suite of online HR applications and to an authoritative source of HR policy and guidance. They also offer the HR function a new channel for communication with employee and line managers, enabling it to disseminate a consistent message to a dispersed workforce. Increasingly, HR intranets provide links to self-service applications. These enable employees and managers to carry out, or at least initiate, basic HR transactions online and thereby relieve the administrative pressure on HR. One also needs to consider the impact of self-service on working culture. While self-service offers a means of empowering staff by giving them greater control over their personal data, it is also an environment in which employee and managers are expected to take on greater responsibility. For this reason, winning support for e-hr is critical Internet & e policies The Internet and have rapidly become an essential part of business life. But as organizations become more reliant on workplace information systems, their vulnerability to serious commercial damage caused by careless or deliberate employee actions increases. It is essential, therefore, for employers to develop robust security 248

249 procedures for their IT systems and to spell out to employees what is considered acceptable and unacceptable in terms of their and Internet use at work, whether this is for business or personal reasons. Company information is at risk both from data corruption and also from breach of security. Employers therefore must draw up a clear policy establishing the boundaries of acceptable use and warning employees of the potential disciplinary consequences of failure to observe the rules. Many employers now install specialist software to monitor their IT systems to block access to inappropriate websites and to filter for excessively large files or dubious attachments. However, employers need to bear in mind that monitoring has implications for the privacy rights of employees and the lawfulness of processing personal data Web 2.0 and Social Networking Applications Best practice organizations continuously explore new technologies and apply when warranted. Studies have shown that early adopters using social networking for recruiting and branding had double the Sales Growth of those without Strategic HCM Applications Focus new implementation work on strategic HCM applications to improve financial performance. This can be done in the following ways- Deploying an integrated talent management solution to achieve the lowest total cost of ownership possible. 249

250 Implementing competency management should be at the heart of any talent management strategy as this will enable the most effective workforce planning, recruiting, development, and compensation management. Ensuring that the scope of succession planning is not just the top management tier but middle management if not ALL employees. Such a scope tells managers and employees that they matter and that there is a place for them in the organization's future. This ensures their engagement and subsequent improved productivity. When it comes to business intelligence, first start with a metrics and analytics strategy and then move quickly to implement a solution middleware to extract, transform, and load data into dashboards usable by decision makers at the very minimum. Consider adoption of Web 2.0 technologies to increase collaboration within the workforce and increase engagement with remote and Generation Y employees. A careful analysis and evaluation of the various options available, by an organization planning to introduce e-technology based HR systems, can go a long way in enhancing the effectiveness of such systems. Any e- HRM exercise when taken up in the proper perspective will ultimately result is a substantial elimination and cutting down of redundant activities and a boost to the profit margins of the organizations. 250

251 CHAPTER 12 CONCLUSION 251

252 CHAPTER 12 CONCLUSION E-HRM has become an inseparable part of the functioning of almost all the large business players in the current scenario. It helps in integrating the widespread activities of organizations by enabling connectivity between different organizational functions and providing accurate and timely personnel information on-line and round the clock. The ultimate result is a substantial elimination and cutting down of redundant activities and a boost to the profit margins of the organizations. E-HRM phenomenally reduces dependence on the time consuming and error-prone Human Resource paper trail. However, as always, technology comes with its inherent risk- that of huge set up costs, overkill and loss of the human touch. Hence, first and foremost it is very important for the HR professionals to get comfortable with the technology before they make other people see the value of such tools. Using specialist software helps to automate and streamline Human Resource processes and to provide a single source of Human Resource data. A comprehensive analysis of the key areas that companies should consider when selecting and implementing a human resource management system must be done. Information on the principal products offered by software suppliers must be done. A Human Resource Management System (HRMS) can be used to streamline Human Resource processes and to provide a single source of all associated employee and organizational data. 252

253 Today's Human Resource software offers increasingly sophisticated functionality giving companies the opportunity to automate labourintensive processes and devolve routine transactions to line managers and, in some cases, to employees themselves. The introduction of a Human Resource Management System can help to ease the administrative burden for busy Human Resource departments, which stand to gain from increased access to Human Resource data, streamlined and standardized processes, greater reporting functionality, more consistent and accurate data and a higher internal profile. The process of choosing and rolling out a new Human Resource Management System can be a major undertaking both in terms of money and time. It is important that Human Resource takes the lead from the outset to ensure that the system matches the department's core requirements. Indeed, the level of functionality of a Human Resource Management System should be determined by the realistic needs of the particular company. There is little point paying for features that will not be used or that are simply not required. Companies must also make suitable arrangements for communicating the changes and training end-users, particularly where self-service functionality opens part of the system to line managers and employees. Human Resource Management System products typically comprise a series of modules covering a full range of Human Resource functions that can be integrated to act as a single system. The process of selecting the most appropriate module should incorporate project leadership, initial research, reviewing existing processes, producing a specification, sending out an 253

254 invitation to tender, product demonstrations, taking up references, and making objective comparisons. The process must also cover the major considerations and stages to implementation, including managing the process, adopting a phased approach, setting up the system, transferring and validating data, training end-users and communicating the changes. In a nutshell it can be said that challenges are many and of phenomenal implications - huge set-up costs to support a robust tech-infrastructure and limitations in mapping all physical Human Resource processes into e-hr process, too much focus on aggressive timelines in project execution, possible conflicts w.r.t. process ownership by Human Resource and Information Technology departments, etc. Any e-hrm installation exercise if taken up in the right perspective, keeping all the challenges in mind can take an organization a long way towards success. In companies which have successfully tackled these challenges e-hrm has made life easier for employees. Not to mention the enhancement in speed and efficiency of Human Resource transactions, lesser paperwork and cost effectiveness in the long run. Increased transparency in functions and a total systems approach has facilitated better control by top management. Some of the considerations for enhancing the effectiveness of e-hr systems include Creating an effective e-statement, Standardizing and Centralizing HR administration in an in-house service center, Assessing and ensuring the flexibility of the e- HR technology, e-recruitment, e-retirement, Developing Data-mining tools and others. 254

255 The fact remains that e-hrm enables better management of every enterprise s most important competitive edge: the thinking, ideagenerating, customer-serving human resource. E-HRM eliminates redundant activities, provides more accurate and timely personnel information and perhaps most important automates the timeconsuming, error-prone Human Resource paper trail. It leaves Human Resource professionals with more time to focus on strategic tasks and manage better the company s most important resource- its people. 255

256 REFERENCE SECTION 256

257 BIBLIOGRAPHY 257

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263 QUESTIONNAIRE 263

264 Questionnaire A Survey on the Implications of Implementing Electronic-Human Resource Management (E-HRM) Systems in Companies 1. The following is a list of possible drivers for introducing e-technology to the HR systems in your company. Please rank them from 1 to 10 in order of importance. (1: most important; 10: least important) Driver Rank a. Increase Integration within the HR function b. Encourage open communication and sharing of Information c. Standardize Systems and Procedures d. Enable HR cost saving and control e. Reduce time spent on routine administrative tasks by HR staff f. Better management of data and information g. Reduce paper transactions h. Refocus HR staff on strategic activities i. Increase overall productivity j. Improve HR transactions accuracy/speed/integrity 264

265 2. W.r.t. the following list of Human Resource Functions please tick against the ones for which e-technology is being used in your company? HR Functions a. Recruitment and Selection b. Payroll Management c. Leave Management d. Attendance Management e. Manpower Planning f. Communication g. Training and Development h. Performance Management i. Induction j. Selecting Benefits k. Compensation Planning l. Competency Mapping m. Career Planning n. Succession Planning o. Employee Transition p. Travel Management q. Exit Management r. Maintaining Employee Records Others (Please specify) 265

266 3. Which HR Service delivery tools are used for delivering HR related services to employees and managers in your company? a. Employee Self Service (ESS) b. Management Self Service (MSS) c. Web 2.0 technology (Blogs/Forums/Social Networking) d. Intranet e. e-learning Portal Others (Please Specify) 4. Describe the nature of Sourcing solution/s your company has adopted for enabling e-technology to HR systems? (In-house/Outsourced/Software-as-a-service/Any other) 5. Where do you perceive your company today on the e-hrm journey? (Mark with a ) Niether understand nor value e- HRM Complete incorporation of e-hrm strategy into the business model 6. Where do you think your company will be in the e-hrm journey after 5 years? (Mark with a ) Niether understand nor value e- HRM Complete incorporation of e-hrm strategy into the business model 266

267 7. What do you think are the barriers to progress in the e-hrm journey? Please rank them from 1 to 10 in the order of importance. (1: most important; 10: least important) Barriers Rank a. Inadequate Financial Resources b. Resistance to change c. Lack of top management support d. Inadequate Training e. Poor technical infrastructure f. Issues w.r.t. Security of data g. Insufficient tangible benefits h. Lack of innovation i. Inability to overcome bureaucratic hurdles j. Difficulty in converting standardized packages into customized and user friendly modules 8. Please elaborate on the biggest barrier to progress in the e-hrm journey marked as No.1 in Question No. 7 by you. 9. What measures were taken by the organization to ensure a smooth transition to e-hrm based systems? 267

268 10. What are the issues and challenges in the implementation and maintenance of e- HRM systems? 11. How can the effectiveness of e-hrm systems be enhanced? 12. According to you will e-hrm be successful in satisfying employees in their HR needs? (Mark with a ) YES: NO: Can t Say: 13. According to you will the benefits from e-hrm justify the expenditure incurred on the same? (Mark with a ) YES: NO: Can t Say 14. Any other information w.r.t. e-hrm that you would like to share? 268

269 15. Please indicate with a tick mark ( ) the extent to which you agree or disagree with the following statements: 1. Strongly disagree; 2. Disagree; 3. Undecided; 4. Agree; 5. Strongly agree S.N. STATEMENTS The e-recruitment process operates with the need to match employee profile with positions vacant in the organisation. 2 The e-hrm technology has helped in reducing the time and effort in preparing the job-description and job-specification. 3 The candidate application maintained and recorded online has made the applicant tracking system easily accessible. 4 The e-hrm technology has ensured an effective salary administration system. 5 The pay structure has been clearly defined in the e-hrm. 6 The pay cheques reach on time to the employees since implementation of e- HRM technology. 7 The recording of employee absence, vacation, sickness etc via e-hrm technology reflects in the pay roll system. 8 The e-hrm process has enabled employees to enrol for flexible benefit administration effectively. 9 The compensation frame work implemented by the e- HRM allows managers to calculate incentives and rewards for the employees online. 10 The assessment of employee performance online helps to calculate performance related pay effectively. 11 The e-hrm process has been effective in providing clear role definitions. 12 The e-hrm process has enabled to identify and nurture individual talents and help to raise their performance. 269

270 S. N. STATEMENTS The self service e-learning opportunities have supported employees to keep their knowledge and skills up-to-date. The e-learning strategies have brought about effective change in leadership development. E-HRM has provided sufficient opportunities for employees' career planning and development. 16 Training through e- HRM helps in recommending candidates for promotion and individual compensation awards. 17 The employees have been provided with necessary resources and sufficient training to be able to use e- HRM technology. 18 The intranet delivered communication system has provided opportunity for employees to participate in communication and consultation activities. 19 The e-hrm system is geared to understanding and following grievance, disciplinary and poor performance issues in a timely and compliant manner. 20 The e-hrm has increased employee commitment with the organisation by boosting their motivation and confidence levels. 21 The e-hrm process ensures compliance with policy and procedures. 22 Working with e-hrm is clear and understandable. 23 Policies formulated under e-hrm technology are easy to comprehend, credible and are user friendly. 24 Since the implementation of e-hrm technology the HR department is increasingly involved in strategic HR activities. 25 E-HRM technology is compatible with other systems in use. 26 The e-hrm system is user friendly. 27 The e-hrm system provides timely information. 28 The e-hrm system provides up-to-date information. 29 The e-hrm system has ensured a clear fit between business and HR strategy. 30 E-HRM has been an effective change agent for positively moulding the employees' attitudes towards the use of technology. 270

271 Other Information Designation Educational Qualification Total No. of years of service No. of years of service with the current company Name of Company Industry/Product Total Turnover Total No. of employees Nature of Company: SME/MNC/Other-Specify 271

272 ANNEXURES 272

273 ANNEXURE I Sample Size: based on assumption of infinite population Since the total population (N) i.e. the number of companies in Maharashtra was not known the following formula was used to calculate the sample size: Assuming the percentage of companies using e-hrm to be 30% (based on estimates by Industry sources) the sample size n required to estimate this percentage is:- n = z 2 PQ assuming N d 2 where Z = 1.96 for 95% confidence P = % of users of e-hrm Q = (100-P) d = 10% of P = 3.0 (10% error) Calculating sample size n, n = (1.96) 2 (30*70) = 896 (3) 2 Hence, sample size, assuming N n = 896 i.e. approximately

274 ANNEXURE II Table 9.1a Percentage of Respondents- Citywise Citywise Percent Cumulative Percent Ahemadnagar Aurangabad Jalgaon Jalna Kolhapur Mumbai Nagpur Nasik Navi Mumbai Pune Raigad Sangli Satara Solapur Thane TOTAL Table 9.1b % of Respondents by Type of Sector (Services/Manufacturing) Frequency Percent Services Manufacturing TOTAL Table 9.1c % of Respondents by Type of Company (MNC/Non-MNC) MNC) Frequency Percent MNC Non-MNC TOTAL

275 MNC Table 9.1d % of Respondents (MNC/Non-MNC)*(Services/Manufacturing) MNC)*(Services/Manufacturing) Type of Type of Sector Company Services Manufacturing Non-MNC Total Total Count % within Type of Sector 31.98% 9.15% 17.00% Count % within Type of Sector 68.02% 90.85% 83.00% Count % within Type of Sector % % % Table 9.1e % of Respondents by Size of Company (Annual Turn-over) Annual Turnover (Rs. Cr.) Frequency Percent <= 10 Crores Crores Crores Crores Crores Crores Crores > 5000 Crores Total Table 9.1f % of Respondents s by Size of Company (No. of Employees) No. of Employees Frequency Percent > Total

276 Table 9.1g City * Type of Sector r (Services/Manufacturing) Type of Sector CITY Services Manufacturing Total Ahemadnagar Aurangabad Jalgaon Jalna Kolhapur Mumbai Nagpur Nasik Navi Mumbai Pune Raigad Sangli Satara Solapur Thane TOTAL Count % within Type of Sector 0.00% 0.30% 0.20% Count % within Type of Sector 1.50% 3.10% 2.50% Count % within Type of Sector 0.00% 0.50% 0.30% Count % within Type of Sector 0.00% 0.20% 0.10% Count % within Type of Sector 0.00% 0.90% 0.60% Count % within Type of Sector 66.60% 67.60% 67.20% Count % within Type of Sector 1.70% 1.70% 1.70% Count % within Type of Sector 0.30% 2.40% 1.70% Count % within Type of Sector 0.90% 0.30% 0.50% Count % within Type of Sector 28.50% 21.80% 24.10% Count % within Type of Sector 0.00% 0.20% 0.10% Count % within Type of Sector 0.30% 0.00% 0.10% Count % within Type of Sector 0.00% 0.30% 0.20% Count % within Type of Sector 0.00% 0.50% 0.30% Count % within Type of Sector 0.30% 0.50% 0.40% Count % within Type of Sector % % % 276

277 Table 9.1h Size of Company (Annual Turn-over) * Type of Sector (Services/Manufacturing) Type of Sector Annual Turn-over (Rs. Cr.) Services Manufacturing Total <= 10 Crores Crores Crores Crores Crores Crores Crores > 5000 Crores Total Count % within Type of Sector 23.50% 1.70% 9.20% Count % within Type of Sector 49.40% 30.10% 36.70% Count % within Type of Sector 11.30% 22.60% 18.70% Count % within Type of Sector 4.10% 13.90% 10.50% Count % within Type of Sector 5.80% 13.60% 10.90% Count % within Type of Sector 3.50% 9.90% 7.70% Count % within Type of Sector 1.50% 4.40% 3.40% Count % within Type of Sector 0.90% 4.00% 2.90% Count % within Type of Sector % % % Table 9.1i Size of Company (No. of Employees) * Type of Sector (Services/Manufacturing) Type of Sector No. of Employees Services Manufacturing Total Count % within Type of Sector 43.90% 3.20% 17.20% Count % within Type of Sector 20.30% 14.70% 16.60% Count % within Type of Sector 17.40% 42.70% 34.00% Count % within Type of Sector 9.30% 21.40% 17.20% Count % within Type of Sector 5.50% 7.50% 6.80% Count > % within Type of Sector 3.50% 10.50% 8.20% Count Total % within Type of Sector % % % 277

278 Table 9.1j City * Type of Sector (Services/Manufacturing) Type of Sector City Services Manufacturing Total Ahemadnagar Count % within City 0.00% % % Aurangabad Count % within City 20.00% 80.00% % Jalgaon Count % within City 0.00% % % Jalna Count % within City 0.00% % % Kolhapur Count % within City 0.00% % % Mumbai Count % within City 34.10% 65.90% % Nagpur Count % within City 35.30% 64.70% % Nasik Count % within City 5.90% 94.10% % Navi Mumbai Count % within City 60.00% 40.00% % Pune Count % within City 40.70% 59.30% % Raigad Count % within City 0.00% % % Sangli Count % within City % 0.00% % Satara Count % within City 0.00% % % Solapur Count % within City 0.00% % % Thane Count % within City 25.00% 75.00% % Count Total % within City 34.40% 65.60% % 278

279 Table 9.1k City * Type of Company (MNC/Non-MNC) MNC) Type of Company City MNC Non-MNC Total Ahemadnagar Count % within City 0.00% % % Aurangabad Count % within City 8.00% 92.00% % Jalgaon Count % within City 0.00% % % Jalna Count % within City 0.00% % % Kolhapur Count % within City 0.00% % % Mumbai Count % within City 16.40% 83.60% % Nagpur Count % within City 5.90% 94.10% % Nasik Count % within City 6.30% 93.80% % Navi Mumbai Count % within City 20.00% 80.00% % Pune Count % within City 22.00% 78.00% % Raigad Count % within City 0.00% % % Sangli Count % within City 0.00% % % Satara Count % within City 0.00% % % Solapur Count % within City 0.00% % % Thane Count % within City 25.00% 75.00% % Count Total % within City 17.00% 83.00% % 279

280 Table 9.2a Drivers for introducing e-hrm e Systems in companies : Mean Ranks by Type of Sector ( Services/ Manufacturing) Type of Sector CONSIDERED DRIVERS Services Manufacturing Total Std. Std. Std. Mean Dev. Mean Dev. Mean Dev. a. Increase Integration within the HR function b. Encourage open communication and sharing of Information c. Standardize Systems and Procedures d. Enable HR cost saving and control e. Reduce time spent on routine administrative tasks by HR staff f. Better management of data and information g. Reduce paper transactions h. Refocus HR staff on strategic activities i. Increase overall productivity j. Improve HR transactions accuracy/speed/integrity Table 9.2b Drivers for introducing e-hrm Systems in companies: : Mean Rank Order by Type of Sector (Services/ Manufacturing) MEAN RANK ORDER CONSIDERED DRIVERS Services Manufacturing TOTAL a Increase Integration within the HR function Encourage open communication and b sharing of Information c Standardize Systems and Procedures d Enable HR cost saving and control Reduce time spent on routine e administrative tasks by HR staff f Better management of data and information g Reduce paper transactions h Refocus HR staff on strategic activities i Increase overall productivities j Improve HR transactions accuracy/speed/integrity : Most Important; 10: Least Important 280

281 Table 9.3a Drivers for introducing e-hrm e Systems in i companies: Mean Ranks by Type of Company (MNC/ Non-MNC) Type of Company MNC Non-MNC Total CONSIDERED DRIVERS Std. Std. Std. Mean Dev. Mean Dev. Mean Dev. a. Increase Integration within the HR function b. Encourage open communication and sharing of Information c. Standardize Systems and Procedures d. Enable HR cost saving and control e. Reduce time spent on routine administrative tasks by HR staff f. Better management of data and information g. Reduce paper transactions h. Refocus HR staff on strategic activities i. Increase overall productivity j. Improve HR transactions accuracy/speed/integrity Table 9.3b Drivers for introducing e-hrm e Systems in companies: : Mean Rank Order by type of Company (MNC/ Non-MNC) MEAN RANK DRIVERS MNC Non-MNC TOTAL a Increase Integration within the HR function Encourage open communication and sharing of b Information c Standardize Systems and Procedures d Enable HR cost saving and control Reduce time spent on routine administrative tasks e by HR staff f Better management of data and information g Reduce paper transactions h Refocus HR staff on strategic activities i Increase overall productivity j Improve HR transactions accuracy/speed/integrity : Most Important; 10: Least Important 281

282 Table 9.4a Drivers for introducing e-hrm e systems in companies: : ANOVA (One-way) Descriptive Statistics Driver Groups Mean Std. Deviation Std. Error a. Increase Integration within the HR function Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total b. Encourage open communication and sharing of Information Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total c. Standardize Systems and Procedures Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total d. Enable HR cost saving and control Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total e. Reduce time spent on routine administrative tasks by HR staff Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total

283 f. Better management of data and information Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total g. Reduce paper transactions Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total h. Refocus HR staff on strategic activities Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total i. Increase overall productivity Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total j. Improve HR transactions accuracy/speed/integrity Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total

284 Table 9.4b Drivers for introducing e-hrm e systems in companies (ANOVA) Driver df F Sig. Null Hypothesis a. Increase Integration within the HR function Between Groups 3 Within Groups Rejected b. Encourage open communication and sharing of Information Between Groups Within Groups Rejected c. Standardize Systems and Procedures Between Groups Rejected Within Groups 996 d. Enable HR cost saving and control Between Groups Accepted Within Groups 996 e. Reduce time spent on routine administrative tasks by HR staff Between Groups Rejected Within Groups 996 f. Better management of data and information Between Groups Accepted Within Groups 996 g. Reduce paper transactions Between Groups 3 Within Groups Rejected h. Refocus HR staff on strategic activities Between Groups Rejected Within Groups 996 i. Increase overall productivity Between Groups 3 Within Groups Rejected j. Improve HR transactions accuracy/speed/integrity Between Groups Rejected Within Groups 996 The mean difference is significant at the.05 level 284

285 Table 9.5a Usage of e-technology e for Human Resource Functions by Type of Sector (Services/Manufacturing) HR Function Type of Sector Percent Implementing the Function Chisquare Significance (P-value) Null Hypothesis a. Recruitment Services 99.5 Rejected and Selection Manufacturing b. Payroll Services Accepted Management Manufacturing c. Leave Services Management Manufacturing d. Attendance Services Management Manufacturing Accepted Accepted e. Manpower Services 99.5 Planning Manufacturing f. Communication Services 99.1 Manufacturing g. Training and Services Development Manufacturing h. Performance Services 98.0 Management Manufacturing i. Induction Services 60.2 Manufacturing j. Selecting Services 31.9 Benefits Manufacturing k. Compensation Services 98.2 Planning Manufacturing l. Competency Services 32.0 Mapping Manufacturing m. Career Services 31.9 Planning Manufacturing n. Succession Services 7.0 Planning Manufacturing o. Employee Services 25.0 Transition Manufacturing p. Travel Services Management Manufacturing q. Exit Services 7.8 Management Manufacturing r. Maintaining Services Employee Records Manufacturing Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected 285

286 Table 9.6a Usage of e-technology e for Human Resource Functions by Type of Company (MNC/Non-MNC) MNC) HR Function Type of Company Percent Implementing the Function Chisquare Significance (P-value) a. Recruitment and MNC Selection Non-MNC b. Payroll MNC Management Non-MNC c. Leave MNC Management Non-MNC d. Attendance MNC Management Non-MNC e. Manpower MNC Planning Non-MNC f. Communication MNC Non-MNC g. Training and MNC Development Non-MNC h. Performance MNC Management Non-MNC MNC 77.2 i. Induction Non-MNC j. Selecting MNC 94.6 Benefits Non-MNC k. Compensation MNC Planning Non-MNC l. Competency MNC 94.6 Mapping Non-MNC m. Career MNC 94.6 Planning Non-MNC n. Succession MNC 31.7 Planning Non-MNC o. Employee MNC 38.3 Transition Non-MNC p. Travel MNC Management Non-MNC q. Exit MNC 31.7 Management Non-MNC r. Maintaining MNC Employee Records Non-MNC Null Hypothesis Rejected Accepted Accepted Accepted Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected Rejected 286

287 Table 9.7 HR Service Delivery Tool Usage of HR Service Delivery Tools by Type of Sector (Services/Manufacturing) Type of Chi-square Significance Company P-value Percent using the Tool Null Hypothesis a. Employee Self Services 98.50% Service Manufacturing 60.30% b. Management Self Services 95.00% Service Manufacturing 29.90% c. Web 2.0 Services 90.70% Technology Manufacturing 13.30% Rejected Rejected Rejected d. Intranet e. E-Learning Portal Services % Manufacturing 75.10% Services 98.10% Manufacturing 41.10% Rejected Rejected Table 9.8 Usage of HR Service Delivery Tools by Type of Company (MNC/Non-MNC) MNC) Type of Chi-square Significance Company P-value HR Service Delivery Tool Percent using the Tool a. Employee Self MNC % Service Non-MNC 71.70% Null Hypothesis Rejected b. Management Self MNC % Service Non-MNC 49.40% Rejected c. Web 2.0 Technology d. Intranet e. E-Learning Portal MNC 98.50% Non-MNC 36.50% MNC % Non-MNC 82.30% MNC % Non-MNC 57.00% Rejected Rejected Rejected 287

288 Table 9.9 Perception of Respondents regarding their company s position in the e-hrm e journey today- by Type of Sector (Services/Manufacturing) Rating Scale Services Manufacturing Total Neither understand nor value e-hrm % of Respondents 0.00% 3.20% 2.10% 0.00% 14.70% 9.60% 68.10% 82.10% 77.30% 31.90% 0.00% 10.90% 0.00% 0.00% 0.00% Complete incorporation of e-hrm strategy into the business model Where do you perceive your company on the e-hrm journey today? Group Statistics Std. Type of Sector N Mean Std. Deviation Error Mean Services Manufacturing Independent Samples Test t-test for Equality of Means Sig. (2- Where do you perceive your company on the e- t df tailed) HRM journey today?

289 Table 9.10 Perception of Respondents regarding their company s position in the e-hrm e journey today- by Type of Company (MNC/Non-MNC) MNC) Rating Scale MNC Non-MNC Total Niether understand nor value e-hrm % of Respondents 0.00% 2.50% 2.10% 0.00% 10.50% 8.72% 72.50% 78.30% 77.30% 22.20% 8.70% 10.90% 5.30% 0.00% 0.90% Complete incorporation of e-hrm strategy into the business model Group Statistics Where do you perceive your company in the e-hrm journey today? Type of Company N Mean Std. Deviat ion Std. Error Mean MNC Non-MNC Independent Samples Test t-test for Equality of Means Where do you perceive your company in the e-hrm journey today? t df Sig. (2-tailed)

290 Table 9.11 Perception of Respondents regarding their company s position in the e-hrm e journey today ANOVA (one-way) Descriptive Statistics Mean Std. Deviation Std. Error Where do you perceive your company in the e-hrm journey today? Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total ANOVA df F Significan ce Level Where do you perceive your company in the e-hrm journey today? Between Groups 3 Within Groups The mean difference is significant at the.05 level 290

291 Table 9.12 Perception of Respondents regarding their company s position in the e-hrm e journey after 5 years- by Type of Sector (Services/Manufacturing) es/manufacturing) Rating Scale Services Manufacturing Total Niether understand nor value e-hrm % of Respondents 0.00% 0.00% 0.00% 0.00% 3.20% 2.10% 20.20% 7.90% 12.10% 65.50% 77.70% 73.50% 14.30% 11.10% 12.20% Complete incorporation of e- HRM strategy into the business model Group Statistics Where do you think your company will be in the e-hrm journey after 5 years? Std. Type of Sector N Mean Std. Deviation Error Mean Services Manufacturing Independent Samples Test Where do you think your company will be in the e- HRM journey after 5 years? t t-test for Equality of Means df Sig. (2- tailed)

292 Table 9.13 Perception of Respondents regarding their company s position in the e-hrm e journey after 5 years- by Type of Company (MNC/Non-MNC) MNC) Rating Scale MNC Non-MNC Total Neither understand nor value e-hrm % of Respondents 0.00% 0.00% 0.00% 0.00% 2.50% 2.10% 0.60% 14.50% 12.10% 71.30% 74.00% 73.50% 28.10% 9.00% 12.20% Complete incorporation of e- HRM strategy into the business model Group Statistics Where do you think your company will be in the e- HRM journey after 5 years? Std. Type of Company N Mean Std. Deviation Error Mean MNC Non-MNC Independent Samples Test t-test for Equality of Means Where do you think your company will be in the e-hrm journey after 5 years? t df Sig. (2-tailed)

293 Table 9.14 Perception of Respondents regarding their company s position in the e-hrm e journey after 5 years ANOVA (one-way) Descriptive Statistics Mean Std. Deviation Std. Error Where do you think your company will be in the e-hrm journey after 5 years? Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total ANOVA df F Sig. Where do you think your company will be in the e-hrm journey after 5 years? Between Groups 3 Within Groups The mean difference is significant at the.05 level 293

294 Table 9.15a Perception of Respondents regarding their company s position in the e-hrm e journey today vs after five years Services group Paired Samples Statistics Pair 1 Std. Deviation Std. Error Mean Mean N Where do you perceive your company in the e-hrm journey today? Where do you think your company will be in the e-hrm journey after 5 years? Paired Samples Test Pair 1 Where do you perceive your company in the e-hrm journey today? - Where do you think your company will be in the e-hrm journey after 5 years? t df Sig. (2-tailed) Table 9.15b Perception of Respondents regarding their company s position in the e-hrm e journey today vs after five years Manufacturing group Paired Samples Statistics Pair 1 Std. Deviation Std. Error Mean Mean N Where do you perceive your company in the e-hrm journey today? Where do you think your company will be in the e-hrm journey after 5 years? Paired Samples Test Pair 1 Where do you perceive your company in the e-hrm journey today? - Where do you think your company will be in the e-hrm journey after 5 years? t df Sig. (2-tailed)

295 Table 9.15c Perception of Respondents regarding their company s position in the e-hrm e journey today vs after five years MNC group Paired Samples Statistics Pair 1 Where do you perceive your today in the e-hrm journey today? Where do you think your company will be in the e-hrm journey after 5 years? Mean N Std. Deviation Std. Error Mean Paired Samples Test Pair 1 Where do you perceive your company in the e-hrm journey today? - Where do you think your company will be in the e-hrm journey after 5 years? t df Sig. (2-tailed) Table 9.15d Perception of Respondents regarding their company s position in the e-hrm e journey today vs after five years Non-MNC group Paired Samples Statistics Pair 1 Where do you perceive your company in the e-hrm journey today? Where do you think your company will be in the e-hrm journey after 5 years? Mean N Std. Deviation Std. Error Mean Paired Samples Test Pair 1 Where do you perceive your company in the e-hrm journey today? - Where do you think your company will be in the e-hrm journey after 5 years? t df Sig. (2-tailed)

296 Table 9.16a Barriers to progress in the e-hrm e journey: Mean Ranks by Type of Sector (Services/Manufacturing) CONSIDERED BARRIERS Type of Sector (Services/Manufacturing) Services Manufacturing Total Std. Std. Std. Mean Mean Mean Dev. Dev. Dev. a. Inadequate Financial Resources b. Resistance to change c. Lack of top management support d. Inadequate Training e. Poor technical infrastructure f. Issues w.r.t. Security of data g. Insufficient tangible benefits h. Lack of innovation i. Inability to overcome bureaucratic hurdles j. Difficulty in converting standardized packages into customized and user friendly modules Table 9.16b Barriers to progress in the e-hrm e journey: Mean Rank Order by Type of Sector (Services/Manufacturing) CONSIDERED BARRIERS MEAN RANK ORDER Services Manufacturing TOTAL a Inadequate Financial Resources b Resistance to change c Lack of top management support d Inadequate Training e Poor technical infrastructure f Issues w.r.t. Security of data g Insufficient tangible benefits h Lack of innovation i Inability to overcome bureaucratic hurdles j Difficulty in converting standardized packages into customized and user friendly modules : Most Important; 2: Least Important 296

297 Table 9.17a Barriers to progress in the e-hrm e journey: Mean ranks by Type of Company (MNC/Non-MNC) MNC) Type of Company (MNC/Non-MNC) MNC Non-MNC Total CONSIDERED BARRIERS Std. Std. Std. Mean Dev. Mean Dev. Mean Dev. a. Inadequate Financial Resources b. Resistance to change c.lack of top management support d. Inadequate Training e. Poor technical infrastructure f. Issues w.r.t. Security of data g. Insufficient tangible benefits h. Lack of innovation i. Inability to overcome bureaucratic hurdles j. Difficulty in converting standardized packages into customized and user friendly modules Table 9.17b Barriers to progress in the e-hrm e journey: Mean Rank Order by type of Company (MNC/Non-MNC) MNC) MEAN RANK ORDER CONSIDERED BARRIERS MNC Non-MNC TOTAL a Inadequate Financial Resources b Resistance to change c Lack of top management support d Inadequate Training e Poor technical infrastructure f Issues w.r.t. Security of data g Insufficient tangible benefits h Lack of innovation i Inability to overcome bureaucratic hurdles j Difficulty in converting standardized packages into customized and user friendly modules : Most Important; 2: Least Important 297

298 Table 9.18a Barriers to progress in the e-hrm e journey: ANOVA (one-way) Descriptive Statistics Mean Std. Deviation Std. Error a. Inadequate Financial Resources Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total b. Resistance to change Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total c. Lack of top management support Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total d. Inadequate Training Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total e. Poor technical infrastructure Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total

299 f. Issues w.r.t. Security of data Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total g. Insufficient tangible benefits Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total h. Lack of innovation Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total i. Inability to overcome bureaucratic hurdles Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total j. Inability to convert standardized packages into customized and user friendly modules Services Non-MNC Services MNC Manufacturing Non-MNC Manufacturing MNC Total

300 Table 9.18b Barriers to progress in the e-hrm e journey - ANOVA df F Sig. Null Hypothesis a. Inadequate Financial Resources Between Groups 3 Within Groups Rejected b. Resistance to change Between Groups 3 Within Groups Rejected c. Lack of top management support Between Groups 3 Within Groups Rejected d. Inadequate Training Between Groups 3 Within Groups Rejected e. Poor technical infrastructure Between Groups 3 Within Groups Rejected f. Issues w.r.t. Security of data Between Groups 3 Within Groups Rejected g. Insufficient tangible benefits Between Groups 3 Within Groups Rejected h. Lack of innovation Between Groups 3 Within Groups Rejected i. Inability to overcome bureaucratic hurdles Between Groups 3 Within Groups Accepted j. Inability to convert standardized packages into customized and user friendly modules Between Groups 3 Within Groups Rejected The mean difference is significant at the.05 level 300

301 Table 9.19 Expectation of respondents w.r.t. e-hrm e being successful in satisfying employees in their HR needs- Services vs Manufacturing Opinion Services Manufacturing Total % of Respondents YES NO Can't Say Chi-square= df=2 P< Table 9.20 Expectation of respondents w.r.t. e-hrm e being successful in satisfying employees in their HR needs- MNC vs Non-MNC Opinion MNC Non-MNC Total % of Respondents YES NO Can't Say Chi-square= df=2 P< Table 9.21 Expectation of respondents ents w.r.t. the benefits from e-e HRM justifying the expenditure on the same- Services vs Manufacturing Opinion Services Manufacturing Total % of Respondents YES NO Can't Say Chi-square= df=2 P< Table 9.22 Expectation of respondents w.r.t the benefits from e-hrm justifying the expenditure on the same- MNC vs Non-MNC Opinion MNC Non-MNC Total % of Respondents YES NO Can't Say Chi-square= df=2 P<

302 Table 9.23 Opinion of respondents on various aspects of the e-hrm functioning - Mean Ratings by Type of Sector (Services/Manufacturing) Statements Services Manufacturing Total Group Statistics Type of Sector N Mean Std. Deviation Std. Error Mean Total Services Manufacturing Independent Samples Test t-test for Equality of Means t df Sig. (2-tailed) Total

303 Table 9.24 Opinion of respondents on various aspects of the e-hrm e functioning - Mean Ratings by Type of Company (MNC/Non-MNC) MNC) Statements MNC Non-MNC Total Group Statistics Type of Company N Mean Std. Deviation Std. Error Mean Total MNC Non-MNC Independent Samples Test t-test for Equality of Means t df Sig. (2-tailed) Total

304 Table 9.25 Opinion of respondents on various aspects of the e-hrm e functioning (Statements 1 to 30 respectively) Table 9.25 (i) The e-recruitment process operates with the need to match employee profile with positions vacant Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (ii) The e-hrm technology has helped in reducing the time and effort in preparing the job-description and jobspecification Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (iii) The candidate application maintained and recorded online has made the applicant tracking system easily accessible Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree 9.33 Table 9.25 (iv) The e-hrm technology has ensured an effective salary administration system Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (v) The pay structure has been clearly defined in the e-hrm System Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree

305 Table 9.25 (vi) The pay cheques reach on time to the employees since the implementation of e-hrm technology Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (vii) The recording of employee absence, vacation, sickness etc via e-hrm technology reflects in the pay roll system Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (viii) The e-hrm process has enabled employees to enroll for flexible benefits administration effectively Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (ix) The compensation frame work implemented by the e- HRM allows managers to calculate incentives and rewards for the employees online Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (x) The assessment of employee performance online helps to calculate performance related pay effectively Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree

306 Table 9.25 (xi) The e-hrm process has been effective in providing clear role definitions Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xii) The e-hrm process has enabled to identify and nurture individual talents and help to raise their performance Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xiii) The self service e-learning opportunities have supported employees to keep their knowledge and skills upto-date Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xiv) The e-learning strategies have brought about an effective change in leadership development Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree 8.53 Table 9.25 (xv) E-HRM has provided sufficient opportunities for employees' career planning and development Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree

307 Table 9.25 (xvi) Training through e- HRM helps in recommending candidates for promotion and individual compensation awards Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xvii) The employees have been provided with necessary resources and sufficient training to be able to use e- HRM technology Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree 4.21 Table 9.25 (xviii) The intranet delivered communication system has provided opportunity for employees to participate in communication and consultation activities Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xix) The e-hrm system is geared to understanding and following grievance, disciplinary and poor performance issues in a timely and compliant manner Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree 2.81 Table 9.25 (xx) The e-hrm system has increased employee commitment with the organization by boosting their motivation and confidence levels Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree

308 Table 9.25 (xxi) The e-hrm process ensures compliance with policy and procedures Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xxii) Working with e-hrm is clear and understandable. Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xxiii) Policies formulated under e-hrm technology are easy to comprehend, credible and are user friendly Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xxiv) Since the implementation of e-hrm technology the HR department is increasingly involved in strategic HR activities Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xxv) E-HRM technology is compatible with other systems in use Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree

309 Table 9.25 (xxvi) The e-hrm system is user friendly Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xxvii) The e-hrm system provides timely information Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xxviii) The e-hrm system provides up-to-date information Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xxix) The e-hrm system has ensured a clear fit between business and HR strategy Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree Table 9.25 (xxx) E-HRM has been an effective change agent for positively molding the employees' attitudes towards the use of technology Rating Opinion % of Respondents 1 Strongly disagree Disagree Undecided Agree Strongly agree