the impact of e-hrm (electronic hrm) on the … · university, karachi, sindh, pakistan. e-mail:...

Journal of Business Administration and Management Sciences

Vol. 01 Issue No. 01

8

THE IMPACT OF E-HRM (ELECTRONIC HRM) ON THE PERFORMANCE OF

HR MANAGERS

Zahid Ali Channar* Hafiza Aisha Bhatti** Hameedullah Kazi*** Asandaas Manwani****

ABSTRACT

The ever improving E-HRM has paved way for multiple revolutions in an otherwise

standard operational trends and methods and the most emphatic of them is the transition

brought in HR managers’ focus from authoritative objectives to becoming a potential

strategic business partners. Such a shift has amplified the value added to the human

resource functions. Simultaneously it has also elevated the capabilities that are a

constituent of a successful HR professional. The main objective of the study is to find out

the impact of information technology on the performance of human resource managers,

operational managers and HR experts/professionals. The focus of the research is also

pinned on the question whether a difference in adoptability, usage and effects occur

between public and private banks. Primary source is used for this research. In

accordance of this task a survey questionnaire was carried out to acquire data from

human resource managers and executives performing managerial duties in public and

private banks of Hyderabad. Stratified random sampling technique is used in this study

because of targeting the heterogeneous groups in this study. Sample size is 60, 30 from

each sector i.e. public and private. Data was analyzed through Mann Whitney test and

Spearman’s correlation. Results indicated that attitude towards use of E -HRM is not

significantly different in public and private banks. It was also find out that attitude

towards use of E-HRM is not significantly different for both genders. Perceived ease of

use is also not significantly different in both sectors. However, analysis showed that

Electronic Human Resource Management (E-HRM) increases the performance of

employees. This research has implications for all level managers of both sectors of banks.

Keywords: E-HRM, attitude, information technology, employee satisfaction, perceived

ease of use.

JEL Classification: M1, O15

1. INTRODUCTION

Ever dynamic development in the field of technology, especially information technology, has brought about

substantial and enhancive changes to our approach towards every walk of business dealings and operations. The

growth of any company, in addition to capital, intelligent human resources and good production techniques, is now

highly dependable on the use of computers or Information Technology specifically. Every day is a new leaf turned

in technological advancement in every field of life and information technology is leading the lot. The amount of

calculation power which is available to mankind is increasing at an exponential rate1. Further, IT rapidly progressed

1 Tom Marshall, E-Finance: An Ill-tempered fight for supremacy, (Euro money), 33, 401 (2002), 138-139

*Corresponding Author, Chairperson, Department of Business Administration, Sindh Madressatul Islam

University, Karachi, Sindh, Pakistan. E-mail: [email protected]

**Faculty of Commerce Economics and Management Sciences, Isra University, Hyderabad, Sindh

***Pro Vice-Chancellor, Faculty of Commerce Economics and Management Sciences, Isra University Hyderabad,

Sindh.

****Chairperson, Faculty of Commerce Economics and Management Sciences, Isra University Hyderabad. Sindh.



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in a way that in January 1996, 30 million people were using the Internet but at the dawn of the new century,

however, more than 400 million people were online2. This 1333 percent change over only five years is a harbinger

of how the Internet will continue to alter the way, how the work is done, how business is transacted, how

government services are delivered Today, IT influences the structure and operations of organizations more

profoundly than any other technology ever had3. The transition from manual to advanced I.T aided applications has

revolutionized the way strategies vision and implemented in different departments of a business i.e. finance, human

resources, marketing etc. In Human Resource Management (HRM) a relatively new but substantial wave of

Electronic Human Resource Management (E-HRM) has taken the business world by storm. Not long ago this

method of strategizing resources and service was taken as an alien concept but today it has become an integral part

of business structure. In comparison to the practical evolution of I.T based Management, the academic involvement

is yet to be stamped.

Broadening of the horizons of strategic maneuvering has implied researches and practitioners to apply and

implement I.T based strategic plans to compete and enhance a firm’s tangible and fiscal performance4. The bulk of

academic work done in this regard is highly based on case studies and anecdotes with lesser importance to empirical

and formulated findings5.

E-HRM has magnified the strategic role in the analysis and reshaping competencies of HR professionals which are

responsible for the success of the HR policy6. The studies by Cedar Human Resources Survey 2001 revealed that by

implementing E-HRM companies can reduce their HR transaction cost by 75 percent and the cost for that

technology can be rebuked within 2 years. Computer is the key technological invention producing the third greatest

revolution in the history of mankind. Today “I.T” is the catch-word for every organization making it the highest

priority. The impact of I.T application on task productivity, task innovation, consumer satisfaction and management

control is identified by Morton. He further highlighted that I.T adoption have given rise to performance raised and

2 Taher Roshandel Arbatani, Ali Akbar Farhangi and Yousef Dadashzadeh, Framing the Current Challenges and

Trends in Human Resource Management, (International Journal of Humanities and Cultural Studies), 2016, 592-593 3 Mo Adam Mahmood and Gary Mann, Measuring the organizational impact of information technology investment:

An exploratory study, (Journal of Management Information Systems), 10, 1 (1993), 101-102 4 Rajvi Sabherwal and William King, Towards a theory of strategic use of information services, (Information and

Management), 20 (1991), 197-198. 5 Thomas Powell and Anne Dent-Micallef, Information Technology as Competitive Advantage: The Role of Human,

Business, and Technology Resources, (Strategic Management Journal), 18, no. 5 (1997), 381-382 6 Bradford Bell, Sae-Won Lee and Sarah Yeung, The impact of E-HR on professional competence in HRM:

Implications for the development of HR professionals, (Human Resource Management), 45, 3 (2006), 299-300.



10

competitive advantages. The literature shows that IT generates many benefits and is a key to progress if it is

accepted and used warmly by the concern employees in organizations7. Though the advent of I.T revolution had

occurred in United States of America but with passage of time the entire world became a web based digital

economy, removing borders from global trade. Following in the footsteps of developed countries, developing

countries are walking the corridors and implementing I.T based modules to keep up with the rabbit (Developed

countries). There is a significant resistance to adopting and using computer resources in developing countries. In

many countries, organizations experience difficulty and even failure in transferring IT into practice despite spending

billions of dollars8. The problems seem to be worst in developing countries9. The pervasive perspective of World

Bank and other monetary organizations towards the role of Information technology has helped them lend major

monetary aid to organizations which have relatively scarce resources for the implementation of web-based

applications. Approximately 90 percent of the World Bank lending to developing countries were for establishing

and developing Information technology setup.

2. RELATED LITERATURE

Prior research conducted about the attitude towards E-HRM and identifies the factors which can influence

the attitude towards E-HRM10. Descriptive survey research design conducted for the analysis of data. Multi -

item scales from Unified Theory of Acceptance and Use of Technology (UTAUT) instruments were used.

The correlation shows the strong relationship between all the variables. Above all, the relation between

perceived ease of use and attitude towards E-HRM was the strongest.

Similarly research on the key determents of the implementation of E-HRM in Jordan shareholder companies

finds out the characteristics of variables and for data analysis, descriptive and inferential statistical methods

7 Viswanath Venkatesh and Fred Davis, A theoretical extension of the Technology Acceptance Model, (Journal of

Management Sciences), 2, (2000), 191-192 8 Detmar Straub, Karen Loch and Carole Hill, Transfer of Information Technology to the Arab World: A Test of

Cultural Influence Modeling, (Published in Information Technology Management in Developing Countries), IRM

Press, U.S.A. (2002), 94-95 9 Vivek Shah and Kamlesh Mehta, Workforce, information technology and global unemployment, (Industrial

Management and Data Systems), 98, 5 (1998), 227 10 My Yusliza and T Ramayah, Determinants of attitude towards E-HRM: an empirical Study among HR

professionals, (International Conference on Asia Pacific Business Innovation and Technology Management), 57,

(2012): 313-314.



11

were used11. Data was tested by regression analysis technique and was into the SPSS-statistical analysis

program. Reliability and validity between the variables were checked by Cronbach`s Alpha and P earson

correlation. Result shows that there is no significant relation between the internal or external factors and the

implementation of E-HRM in shareholder companies in Jordan. Also, there is no significant difference

between the E-HRM adopters and non-adopters by means of external or internal environmental factors.

Moreover, on the relationship between the E-HR and its professional competency in HRM has also been

conducted12. The main purpose of interviewing was to analyze how their firm utilizes E -HR. Result shows

that there is a strong relationship between the E-HRM and its professional competency in HRM. Therefore,

E-HRM and performance management are positively related.

In the relationship between E-HRM and job performance of employees, Patterson questionnaire was used to

evaluate the use of questionnaires. Descriptive correlation model was used. Result shows that all variables

are positively correlated. Therefore, researcher concluded that E-HRM has positive significant correlation

with employee’s job performance.

Research on the relationship between the attitude of employees towards E -HRM and the problems occurred

in implementation of E-HRM13. The correlation shows the strong relation between all the variables.

Implementation of E-HRM shows the positive relation with the higher speed of retrieval and Processing of

data. There is also a positive relation between the improvement in client service and implementation of E-

HRM. The relation between the Web based HRM application and E-HRM implementation was also positive.

Implementation of E-HRM creates highly secured database, that’s why the relation between these two were

strong. Also, Implementation of E-HRM was positively related with the faster recruitment process.

Research on the uses of E-HRM in order to improve the HR efficiency is also conducted 14. Descriptive

analysis of the data and the bivariate correlations between the variables (Pearson Correlation Coefficients)

methodology were used. It was also observed that there were significant coefficients correlations between all

variables.

11 Rand Al-Dmour and Rifat Shannak, Determinants of the implementation level of electronic human resources

management (E-HRM) in Jordanian shareholding companies, (European Scientific Journal), 8, no.17, (2012) 12 Bell et al., The impact 301-302. 13 Urmila Vikas Patil Urmila, The role of e-HRM in increasing positive work attitudes among IT employees: with

special reference to PUNE city, (Asian Journal of Multidisciplinary Studies), 1, no. 3 (2013) 14 Emma Parry, An Examination of e-HRM as a means to increase the value of the HR function, (International

Journal of Human Resource Management), 22, 5 (2011), 1148



12

Tanya Bondarouk and Huub Ruël conducted research on the relationship between the E-HRM uses with HR

effectiveness. Regression analysis confirms that the experienced quality of E-HRM application is the only

significant explanatory factor of technical and strategic HR effectiveness. Therefore, Easiness of use, quality,

and job relevance of the E-HRM application are positively related with technical and strategic HRM

effectiveness15.

The relationship between the E-HRM usage and its value creation with the facilitating contextual factors is

also conducted16. Explorative factor analysis (via PAC) was used to identify the variables. When the

appropriation of E-HRM applications and frequency of use is greater, the value created for HRM gets high,

so they are positively related. Also the relation between the HRM facilitating conditions and their value

creation for HRM is significant when they both are high. Thus the correlation analysis was strongly related to

contextual factors with the HRM value creation.

Prior studies have also been conducted on the attitude towards E-HRM. Multivariate regression analysis and

Technology Acceptance Model (TAM) were used. A confirmatory factor analysis (principal components,

varimax) was performed and number of scales was used to measure the variables. Researcher concluded that

the correlation between the attitude towards E-HRM and preferences for the roles of strategic partner, change

agent and administrative expert is positively related. But the attitude towards E-HRM is negatively related to

a preference for the employee champion role. The relation between the attitudes towards E -HRM and

experienced ease of use, usability, user support, and output quality is also positively related 17.

Effects of Independent variables such as job satisfaction, professional commitment, and organizational

commitment were measured and investigated on the effectiveness of HRM as a dependent variable. There is a

positive effect on job satisfaction, job security, professional commitment, organizational commitment,

workforce stress and organizational cohesiveness with the uses of E-HRM tools in Iranian organizations.

Also, there is significant positive relation of E-HRM applications with the effectiveness of HRM. Researcher

15 Huub Ruël, Tanya Bondarouk and Jan Kees Looise, E-HRM: Innovation or Irritation. An Explorative Empirical

Study in Five Large Companies on Web-based HRM, (Management Revue), 15, no. 3 (2004), 367 16 Huub Ruël and Harry van der Kaap, E-HRM Usage and Value Creation. Does a Facilitating Context Matter?,

(German Journal of Human Resource Management), 2012 17 M. Voermans and M. van Veldhoven, Attitude towards E‐HRM: an empirical study at Philips, (Personnel

Review), 36, 6 (2007), 891



13

concluded that the E-HRM tools are hardly used in Iranian organizations but if they will be used, that would

create positive impact on HRM in Iranian organizations18.

Research on the factors which determine the successfulness in green HRM, PLS (Partial Least Square)

Regression method was used to analyze the data for the two stages, the measurement model and the

structured model18. Results show that the attitude towards E-HRM have positive impact on the other

variables like perceived ease of use, perceived usefulness, E-HRM trust, strategic partner, and change agent

but employee champion and administrative expert have no impact/effect on attitude toward s E-HRM.

Research on the effects of technology readiness on technology acceptance in the e -HRM field, data was

gathered through questionnaire19. Instruments used in this research were Parasuraman’s Technology

Readiness Index (TRI) and Davis’s Technology Acceptance Model (TAM). Explanatory factor analysis

method was used for testing the hypotheses. PLS method was used to analyze the data. Results show that

users’ optimism has positive impact on perceived usefulness but have no impact on perceived ease of use.

Innovativeness has no impact on both of them whether it is perceived usefulness or perceived ease of use.

Hence it was observed that perceived ease of use and perceived usefulness, both have impact on each other.

Research on assessing the employee’s perception regarding the E-HRM in service sectors was assessed

through factor analysis, Independent sample T- test and ANOVA. It was concluded that people of different

age group, gender, different or same organizations have different opinions regarding Globaliz ation,

Indifferent, Career Development, Standardization, Hurdles, Easy Implementation and Specialization. The

results indicated that the information quality, system quality, service quality, use, user satisfaction, and

perceived net benefit lead E-HRM to success. The relationship observed between all the variables was

significantly supported and have positive impact on E-HRM success20.

3. GAP OF RESEARCH

The gap identified between the existing literature and this study is that our hypotheses exerts attention on the

adaptability, acceptance and effects of E-HRM on HR Managers across Public and Private Organizations.

18 Yusliza and Ramayah, Determinants of, 316 19 Murat Esen and Gonul Kaya Ozbag, An Investigation of the Effects of Organizational Readiness on Technology

Acceptance in e-HRM Applications, (International Journal of Human Resource Studies), 4, no. 1 (2014) 236-237



14

This helps researchers and practitioners to device such models of E-HRM which is more employees friendly

and fruitful for their respective organizations.

Another “un-attended” area of research included in this study is the difference of categorical effects of E -

HRM on different genders. This helps in controlling any in-equality or discomfort that may exist.

4. PROBLEM STATEMENT

However E-HRM plays a vital role in the human resource department in the banks, but organizations do lack

in the information and the relation between the E-HRM usage and how it affect the performance of HR

(human resource) managers.

5. AIM OF THE STUDY

To provide useful insight about the attitude of employees towards the adoptability and the usability of E -

HRM and how it enhances the performance of employee’s by implementing E -HRM. The findings of this

research are helpful for HR managers, operational managers and HR professionals to gain competitive

advantage in the HR department.

6. HYPOTHESES

H1: Attitude towards use of E-HRM is more in private sectors as compared to public sectors.

H2: Attitude towards use of E-HRM is more for male than females.

H3: Perceived ease of use is more in private organization than public organizations.

H4: E-HRM increases performance of the employees.

7. SCOPE OF THE RESEARCH

This research analyzed the impact of E-HRM on the performance of employees in Hyderabad belonging to

the service sectors (commercial banks). Total six banks were selected for this study, out of them three are

public banks and three are private.



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8. METHODOLOGY

8.1. Sample Size

The sample is a definite portion of a huge population the characteristics of which are analyzed to obtain and

gain information in relation to the whole. Sample as a subset selected from a larger population for

representing the population on the whole.

A total of 60 samples were collected from the HR managers. 30 samples were collected from public and 30

from private banks in Hyderabad.

8.2. Data Collection

Primary source is used for this research which was conducted through structured questionnaire from public and

private banks in Hyderabad district. Questions are closed ended and matrix type questions. Categorical variables in

this research are the age, gender, qualification and the organization they working in whereas continuous variables

are attitude towards E-HRM, perceived ease of use and performance of employees. Categorical variables are

measured by nominal scale and continuous variables are measured by ordinal scale. The instruments used in this

research are mostly taken from Thompson et al., (1991), Davis et al., (1989), De Sanctis and Poole (1990 and

1994), M. Voermans & M. van Veldhoven formulated in 2006.

9. MODE OF ANALYSIS

Data for this research was analyzed by SPSS 16.0 version. It is general statistical software tailored to the needs of

social scientists and the general public. SPSS is good for organizing and analyzing data. You can rearrange data,

calculate new data and conduct a variety of statistical analyses. SPSS is a statistical package for beginning,

intermediate, and advanced data analysis. SPSS provide the t-testing and mean value of variables for this research. .

As the data is not normally distributed, spearman’s rho correlation (nonparametric) and Mann Whitney test were

used.

10. RESULTS AND ANALYSIS

10.1. Mann – Whitney Test

H1: Attitude towards use of E-HRM is more in private sectors as compared to public sectors.



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Mann Whitney test was used to analyze whether attitude towards use of E-HRM is significantly different in private

and public sector. Two variables were required for conducting Mann Whitney test; one of them should be

categorical (having two categories) and other one should be continuous. In this regard, categorical variable is the

banks (public and private) and continuous variable is the attitude towards the usage of E-HRM.

Table 10.1: Mann Whitney test

Table 10.1 shows that Attitude towards E-HRM use is not significantly different across the two sectors (private and

public banks). Here mean score of the public sector on the Attitude on HRM Usage is 31.07 where is that of private

sector is 29.93 with P = 0.795. As the significance value is more than 0.05 therefore null hypothesis is accepted and

the alternate hypothesis is rejected.

H0: Attitude towards use of E-HRM is not more in public sectors as compared to private sectors.

HA: Attitude towards use of E-HRM is more in public sectors as compared to private sectors.

H2: Attitude towards use of E-HRM is more in males than females.

Mann Whitney test was used to analyze whether the attitude of males is more towards the use of E-HRM or attitude

of females is more towards the use of E-HRM. Here categorical variable is Gender and continuous variable is

Attitude towards use of HRM.

Table 10.2: Mann Whitney test

T attitude N Mean Scores Significance

Male 52 29.38 0.863

Female 08 20.58

T attitude N Mean Scores Significance

Public 30 31.07 0.795

Private 30 29.93



17

Table 10.2 shows that Attitude towards E-HRM use is not significantly different in both genders. Here mean score

of the males on the Attitude on HRM Usage is 29.38 where is that of females is 20.58 with P = 0.863. As the

significance value is more than .05 therefore null hypothesis is accepted and the alternate hypothesis is rejected.

H0: Attitude towards use of E-HRM is not more in males than females.

HA: Attitude towards use of E-HRM is more in males than females

H3: Perceived ease of use is more in private sectors than public sectors.

Mann Whitney test was again used to analyze whether perceived ease of use is significantly different in private and

public sector. In this hypothesis categorical variable is the banks (public and private) and continuous variable is the

perceived ease of use.

Table 10.3: Mann Whitney Test

Table 10.3 shows that perceived ease of use is not significantly public and private sectors of banks. Here mean

score of the public sector on the perceived ease of use is 28.83 where is that of private sector is 29.18 with P =

0.936. As the significance value is more than 0.05 therefore null hypothesis is accepted and the alternate hypothesis

is rejected.

H0: Perceived ease of use is not more in public sectors as compared to private sectors.

HA: Perceived ease of use is more in public sectors as compared to private sectors.

T perceived

ease of use N Mean Scores Significance

Public 30 28.83 0.936

Private 30 29.18



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10.2. Correlation

H4: E-HRM increases the performance of employees

Spearman’s co correlation technique was conducted to analyze whether E-HRM increases the performance of

employees. Two continuous variables are required for conducting this test. Two continuous variables used here are

Attitude towards use of E-HRM and the performance of employees.

Table 10.4: Spearman's correlation

Table 10.4 shows that relationship between two continuous variables is significantly positive which means that E-

HRM increases the performances of employees. The strength of the relation between two variables is 0.848 with P=

0.000. As the significance value is less than 0.05 therefore alternate hypothesis is accepted and the null hypothesis

is rejected.

H0: E-HRM does not increases the performance of employees

HA: E-HRM increase the performance of employees

11. CONCLUSIONS, LIMITATIONS AND RECOMMENDATIONS

This study was carried out in the service sectors (commercial banks) of Hyderabad to find out the impact of E-HRM

on the performance of Human resource managers. It was also conducted to analyze the usability and adoptability of

E-HRM in banking sectors. The sample size was taken from three private banks, united bank limited, Muslim

commercial bank and Habib bank limited and from three public banks, National bank of Pakistan, State bank of

Correlations

TEHRM Tperfexpctnc

Spearman's

rho

TEHRM Correlation

Coefficient 1.000 .848**

Sig. (2-tailed) . .000

N 60 60

Tperfexpctnc Correlation

Coefficient .848** 1.000

Sig. (2-tailed) .000 .

N 60 60

**Correlation is significant at the 0.01 level (2-tailed).



19

Pakistan and Sindh bank. Mann Whitney test and non-parametric (spearman’s) correlation technique was used to

analyze the impact of E-HRM on employees performance.

It was concluded that Attitude towards E-HRM use is not significantly different across the two sectors (private and

public banks), though the mean score of the public sector on the Attitude on HRM Usage is more (mean = 31.07)

than that of private sector (mean = 29.93). Analyses also showed that Attitude towards E-HRM use is not

significantly different in both genders, though males have more attitude for E- HRM Usage (mean = 29.38) than

females (mean = 20.58). It was also found that that perceived ease of use is not significantly different in public and

private sectors of banks, though the mean score of the private sector on the perceived ease of use is 29.18 where that

of public sector is 28.83. Analyses also proved that E-HRM increases the performances of employees.

In public sectors, it was analyzed that the perceived ease of use has no significant effect on the employees of public

sectors but at the same mean score for public sector is less due to the inconsistent attention towards the training by

professionals and towards skilled usability development. It was also observed that target policies were also weaker

in the public sectors. This study is also supported by the previous researchers saying that perceived ease of use has

no effect on the intention to use it.

12. RECOMMENDATIONS

In private sectors, management should provide more resources to human resource department to improve

the efficiency of employees and organizations. Human resource unit should be facilitating in the adoption

of E-HRM.

Attitude towards E-HRM and the variables related to it should also be observed by both the sectors.

Managers should create awareness of E-HRM and its benefits to help employees for better performance.

More training programs should be conducted for the implementation of E-HRM. Moreover, E-HRM

should also carry out the other but most important functions like selection and recruitment of employees.

13. LIMITATIONS

In this research, sample size was small and it couldn’t cover the maximum population. Common method was used

to collect the data from the respondents. Multiple methods could cover these biases. For example: multiple



20

interviews, online questionnaire etc. This study was also geographically limited. Other geographical areas would

bring more generalizations.

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