Chapter-1.pdf

The Study of e-HRM practices in Service Sector

The study of e-HRM practices in Service Sector 1.

Introduction:

Every Organization has some different approaches and policies of working. They may be from any sector; it may be big or small but have some rules and structure of working. Organizations are not mere bricks, mortar or machineries, they are the people. It is the people who staff and manage organizations. HRM is a wide-ranging concept. It is the most important utility at the moment in any business or organization. This is because, people offer competitive advantage to a firm and managing people is the domain of HRM. Human resources are the source of achieving competitive advantage because of its capability to convert the other resources such as money, machine, methods and material in to output i.e. product/service (Tiwari & Saxena, 2012). HRM builds Human capital. Human capital refers to the stock of employee skills, knowledge and capabilities of people. 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 (Ghosh, 2002). Shaping organization is essential and required task for any management to produce a qualitative and reliable product for their customers. So, today we can easily find a concept of Human Resource Management (HRM) in every organization for internal management and efficient utilization of resource to produce a better and new technological product for their customers (Srivastava, 2010). Managing human resources involves a complex process of designing policies, practices and procedures of organizations for recruiting, motivating, developing and retaining employees (Schneider, 1994). During the last decade, HRM has been adapting to a variety of changes and improvements and technology is among them, which has greatly affected the way HRM departments working culture in organizations. The development of the Internet and other IT tools are boon to drive any organizations to utilize its possibilities in doing business and improving performance. HR departments are forced to look for alternative paths for the delivery of HR activities to meet the increasing demands placed on the HR departments. These demands, or pressures, are there to increase strategic role of the HR

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The Study of e-HRM practices in Service Sector departments with diversified behavior as, the greater demand of flexibility, the pressure to be as efficient as possible, maintain the role as service provider to managers and employees (Lepak & Snell, 1998). At the globalized platform, HR Optimization is used, to implement the new technologies that maximize efficiency, boost return on investment, and accelerate the growth. The core objective behind it is to support HR functions and for the better resource management for the superior good of organization as a whole. HR function of an organization is responsible for complying with the HR needs of the organization (Jovita, 2008). The beginning era of liberalization and globalization alongside with the advancements in Information Technology has transformed the world around. It has brought to middle stage the importance of human resources, more than ever before. Technology and HRM have a broad range of influences upon each other, and HR professionals should be able to espouse technologies that allow the reengineering of the HR function, be prepared to sustain organizational and work-design changes caused by technology, and be able to support a proper managerial climate for innovative and knowledge-based organizations (Hempel, 2004).

Service sector is a promising fastest growing sector with high demand in the market. The importance of this sector in Indian Economy also highlighted the importance of change in approach by the personnel and administrative departments. Progressively more, service firms are pursuing strategies that element a greater customer orientation. Service firms are utilizing their human resource practices to stimulate and reinforce the behavior needed for the successful implementation of greater customer-oriented strategies (Jackson and Schuler, 1992).

1.1 Human resource management: HRM can be defined as a process of procuring, developing and maintaining proficient resources in the organization so that goals of an organization are achieved in an effective and efficient manner. In other terms it is an art of managing people at work in such a manner that they give their best to the organization (Srivastava, 2010). Human Resource Management (HRM) is the function within an organization that focuses on recruitment,

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The Study of e-HRM practices in Service Sector management, and providing direction for the employees. HRM can also be performed by line managers. HRM is the organizational function that deals with the issues, related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. It is also a strategic and comprehensive approach to manage people along with the workplace culture and environment.

Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives. In a competitive scenorio, effective utilization of Human resources has became necessary and primary task of organisations to identify, to recruit, and to channel competent human resources into their business operations for improving productivity and functional efficiency(Jyothi and Venkatesh,2006). In today’s era, diverse changes occurring in the field of human resource management. It is observed that HR functions are apprehensive with a variety of activities that appreciably influence almost all areas of an organization. It is the human intellect, human energy and human inventiveness, which accomplish brilliance for the firm. HRM is a set of policies designed to maximize organizational integration, employee commitment, flexibility and quality of work. Within this model, collective industrial relations have at best only a minor role (Guest, 1987).

Figure 1:

Source: http://learnershrm.blogspot.in

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The Study of e-HRM practices in Service Sector The HRM can also be defined as a strategic approach to manage employment relations emphasizing on the fact that, leveraging people’s capabilities is critical to achieve sustainable competitive advantage, and can only be achieved through a distinctive set of integrated employment policies, programs and practices (Bratton and Gold, 2003). It is the process of managing people in organizations in a structured and methodical manner. It observes people as an important source or asset to be used for the benefit of organizations, employees and society. This envelops the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance management, etc. In other words HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees (http:// managementstudyguide.com/human-resourcemanagement.htm). This approach focuses on the objectives and outcomes of the HRM function. Nowadays, Organizations seek possibilities to run HR operations more efficiently. The combination of the need to work more efficiently on one hand and the possibilities of current information and communication technology on the other, have resulted in the swift development of electronic HR systems (Stanton and Coovert, 2004). A company can achieve a competitive advantage and reach its goals by adopting an efficient usage of its personnel (Price, 2004). In firm performance there is a significant impact of HRM policies and practices on employee’s outcomes (turnover and productivity) and on the overall corporate performance (Huselid, 1995). In an array to enlarge a sound HRM system, the organization should have effectual Human Resource Management practices.HRM practices refer to organizational activities intended for managing the pool of human resources and ensuring that the resources are employed towards the fulfillment of organizational goals (Wright & Snell, 1991; Schuler & Jackson, 1987; Schuler & MacMillan, 1984).

Basic HRM practices and definitions:

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The Study of e-HRM practices in Service Sector 1.1.1 Recruitment and Selection:

These are two interrelated processes; recruitment is the process of generating a pool of capable people to apply for employment to an organization while selection is the process by which specific instruments are employed to choose from a pool of applicants, the persons most suitable for the job taking into consideration management goals and legal requirements (Bratton and Gold, 2003).

It is a systematic means of judgment and inducts available manpower to apply to the company or enterprise for employment. The recruiting activity in itself is selective or preselective, through choosing among the various sources of labor supply and by the decision as to which candidates applying for employment should be permitted to go through subsequent selection or screening procedures. Recruitment may be relatively simple or, on the other hand, it may be complex and expensive activity involving promotions from within the organization as well as advertising notifying vacancies, placing order to the employment exchange, campus recruitment, etc.

Recruitment is thus an important step in business/ industrial employment and ultimate success or failure of such employment depends in large measure upon the techniques (Sharma and Mehlawat, 2011). Various techniques are used in the recruitment and selection process including different types of criteria, interviews, discussions etc. to recruit a person with talents that drive the goals and interest of organization.

1.1.2 Training and Development:

Training is the formal and systematic modification of behavior through learning that occurs as a result of education, instruction, development and planned experience (Armstrong, 2001). Appropriate training is required for various need such as to solve pertinent problems, to boost performance, and also for continuous development of human resources. The practice is one of the most important aspects of HRM needed to keep organizations ahead of their competitors (Hilb, 1992).The firms that engage in systematic

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The Study of e-HRM practices in Service Sector training of their workforce are more likely to enjoy the rewards of a more productive workforce (Koch and Mcgrath,1996).

1.1.3 Pay and Remuneration:

The remuneration process is crucial and a source of contention in most organizations. It deals with the rewarding of employee in accordance with their value in the organization. It is concerned with both financial and non financial rewards and embraces the strategies, philosophies plans and processes employed by organizations to develop and maintain reward systems. It plays a motivational role in management and hence, the importance attached to it. Pay strategies include performance related pay, production based pay, skill based pay, and knowledge based pay and base pay (Brown, 1991).

1.1.4 Performance Management/ Appraisal:

Performance is defined as the record of outcomes produced on a specified job function or activity during a specified time period (Bernardin and Russell 1993). Effective managers need to incorporate performance review and feedback as part of their day-to-day communications with employees (Webb, 2004). Appraisals are used widely for tying pay to performance (Schellhardt, 1996; Cleveland et.al. 1989). Performance management is considered as one of the most important and positive developments in the field of HRM. It is the strategic approach to deliver sustained success to organizations by improving the performance of employees and simultaneously developing the capabilities of teams and individual contributors (Armstrong and Baron, 2002). Automating HR tasks and practices is transforming the traditional paper-and-pencil, labor-intensive HR tasks, into efficient, fast-response activities that enable companies to anticipate and profit from environmental shifts to create a much needed competitive advantage (Marler, 2006; Wyatt, 2002). 1.2 Growth stages of IT in Human resource Management:

Information Technology (IT) is like God particle present everywhere. It has become an important and fundamental factor to support any business or organization. The

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The Study of e-HRM practices in Service Sector application of Information Technology (IT) into Human Resource Management (HRM) is believed as change agent, while at the same time, HRM allows technology to develop its full potential (Hempel, 2004). It completely infuses HRM processes and HRM departments in today’s global networking timeframe (Bondarouk and Ruel, 2009). Technology and HRM have a broad range of weight upon each other, and HR professionals should be able to adopt technologies that, allow the reengineering of the HR function, be prepared to support organizational and work-design changes caused by technology, and be able to support a proper managerial climate for innovative and knowledge-based organizations (Hempel, 2004).

Computer usage in human resource management dates back to the 1940s, and can be sourced to the storing and capturing of employee information through the use of skilled inventories and payroll systems (Walker, 1980). The 1940s and 1950s marked the beginning of the human resource technological revolution in the United States with the automation of skills, inventory systems and payroll systems (Walker, 1993). Typically, this first system was, Electronic Accounting Machinery (EAM), which consisted of 80column card systems that kept information such as employees’ last name, initials, salary rate, work location, date of birth, gender and department code (Walker, 1980). Human resource management was recognized as being an early contender for office automation in payroll, benefits administration and transaction processing applications (Ball, 2001).

The 1960s were characterized by organizations becoming more complex, resulting in greater administrative demands on personnel departments. Such development brought about opportunity and the formation of the company, Information Science Incorporated (InSci), responsible for the creation of the first packaged personnel system called PICS (Personnel Information Communication System) used for job matching. The development of this packaged system initiated requests for customized human resource packages to meet organization’s specific needs and resulted in the development of the personnel system called HRS II (Walker, 1993).

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The Study of e-HRM practices in Service Sector From 1960 to 1980, the integration of HR into core business and the need for governmental and regulatory requirements increased significantly (Hendricksen, 2003). People with technical computer skills, such as programmers, were scarce and only company giants such as General Motors, AT & T, Mobil, General Electric, Ford and a few others were able to afford such resources. These companies from the establishment stage saw the benefits of using computers in human resource management, and they could capture basic information about many employees as well as automatically generate and print reports that previously required much manpower to produce (Walker, 1980). The human resource department became one of the principal users of this technology. These systems grew in size and capacity but continued to operate as mainly recordkeeping systems. Over the last two decades, the reliance on the human resource function to present solutions to boost efficiency and effectiveness of human capital has been significant (Hendrickson, 2003).

Electronic Human Resource Management (e-HRM) is often used practice and has been in use since the early 1990s when the concept of e-commerce swept across the business world (Olivas-Lujan et. al, 2007; Lepak & Snell, 1998). The term e-HRM is extensively used but universally accepted definition is still unclear. It is often used synonymously with similar terms such as web-based human resources (Walker, 2001), human resource information systems (HRIS), virtual human resource management, human resource intranet, computer-based human resource management systems, and human resource portals (Ruël et al., 2004). Automating HR tasks and practices is transforming the traditional paper-and-pencil, labor-intensive HR tasks, into efficient, fast-response activities that enable companies to anticipate and profit from environmental shifts to create a much needed competitive advantage (Marler, 2006; Wyatt, 2002). The successful HR technology must change the work performed by the Human Resources Personnel by dramatically improving their level of services, allowing more time for work of higher value and reducing their costs. Many systems have been implemented it by cutting HR staff, outsourcing and imposing new technology (Walker, 2001). A key partnership is being formed between the human resource and information management professionals who work hand-in-hand and serve as the guiding relationship for all future

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The Study of e-HRM practices in Service Sector activities and decisions. Capitalizing on the latest web-based technologies, global access to human resource information should be provided to managers and employees to support a variety of management and personal decision-making purposes (Sareen and Subramanian, 2012).

1.3 Trends of IT in Human resource Management: 1.3.1 Human Resource Information System (HRIS): A Human Resource Management System (HRMS) or Human Resource Information System (HRIS) refers to the systems and processes at the intersection between human resource management (HRM) and information technology. In the 1980s standalone software packages were developed to provide management system functionality that facilitated HR functions such as applicant tracking, performance appraisal, and training and development. These new systems were called human resource information systems (HRIS), and were defined as information systems used to acquire, store, manipulate, analyze, retrieve and distribute pertinent information regarding an organization's human resources (Kavanagh et. al, 1990).

In other words HRIS is a systematic procedure for collecting, storing, maintaining, retrieving and validating the data needed by an organization for its human resources, personnel activities and organization unit characteristics (Walker, 1982). It merges HRM as a discipline and in particular its basic HR activities and processes with the information technology field, whereas the programming of data processing systems evolved into standardized routines and packages of enterprise resource planning (ERP) software.

Typically, the better Human Resource Information Systems (HRIS) provide overall: 

Management of all employee information.



Reporting and analysis of employee information.



Company-related documents such as employee handbooks, emergency evacuation procedures, and safety guidelines.



Benefits administration including enrollment, status changes, and personal information updating.

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The Study of e-HRM practices in Service Sector 

Complete integration with payroll and other company financial software and accounting systems.



Applicant tracking and resume management.

Accordingly information systems should translate the HRM policies into HRM practices, fulfill and ensure the smooth operation of the HRM practices and the maximization of organizational integration, flexibility, quality of work, employee commitment, in order to improve organizational performance (Boselie et.al. , 2005).

Figure: 2

1.3.2

Source:http://misz-katijah.blogspot.in

ERP system: ERP system can be defined as a packaged business software system

that lets an organization automate and integrate the majority of its business processes, share common data and practices across the enterprise and produce and access information in a real-time environment (Marnewick and Labuschagne, 2005). ERP systems is usually a way to incorporate data and processes of an organization into a single system, and it will usually have many components including hardware’s & software’s in order to integrate the system. ERP systems in the HR space can standardize HR information. Many issues faced by HR departments can be resolved by having a unified simple method for keeping track of employees’ time and communicating with employees about services and benefits.

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The Study of e-HRM practices in Service Sector ERP systems can be very complex, leading to difficulties in implementing, managing and maintaining them. Proper implementation of ERP systems can be very time consuming and very costly (Tsamantanis & Kogetsidis, 2006). One of the main drivers of enterprise resource planning has been the integration of the technology from the assorted HR functions (Keebler, 2001).

Figure: 3 ERP Systems (Source: http:// whatiserp.net)

1.3.3 e-HRM: e-HRM is an extension of above mentioned technologies, adding strategic value, through automation and information, to the organization. There is a fundamental difference between human resource information systems and e-HRM (Ruël et al., 2004). HRIS are intended for the human resource department where users of this technology are largely HR professionals using the system to enhance processes within the HR department, with the aim of improving service to the business. e- HRM, on the other hand, is targeted at employees and management. The authors identified the main difference between HRIS and e-HRM. HRIS concerns the automation of HR services and e-HRM provides technological support of information regarding HR services. Technically, it can be said that e-HR is the technical unlocking of HRIS for all employees of an organization. e- HRM is seen as a way of doing HRM (Ruël, et. al., 2007). e- HRM is 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 the employees, managers and HR professionals (Hussain et.al, 2007).

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The Study of e-HRM practices in Service Sector The combination of information technology (IT) tools in HRM processes had been named electronic Human Resources Management (e-HRM). e- HRM is typically defined as the use of computer systems, interactive electronic media, and telecommunication networks to carry out the functions of the human resources management department. e- HRM loosely defined as a way of implementing human resource management (HRM) strategies, policies and practices in organizations through a conscious and directed support of, and/or with the full use of, web-technology based channels (Bondarouk and Ruël ,2004).

1.4

e- HRM (Electronic Human Resource Management):

e- HRM is the planning, implementation and application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities. This concept highlights several crucial aspects of e-HRM. At the outset, e-HRM utilizes information technology in a twofold manner: First, technology is necessary to connect usually spatially segregated actors and enable interactions between them irrespective of their working in the same room or on different continents, i.e. technology serves as a medium with the aim of connection and integration. Second, technology supports actors by partially – and sometimes even completely – substituting for them in executing HR activities (Strohmeier, 2007).

e- HRM could be narrowly defined as the administrative support of the HR function in organizations by using Internet technology. The composite of databases, computer applications and hardware and software used to collect, store, manage, deliver, present and manipulate data for Human Resources. There was a positive relation expected between reported ease of use, usability, user support and output quality of an IT system and the attitude towards e- HRM (Voermans and Veldhoven, 2007). Virtual HR is a network based structure built on partnerships and typically mediated by information technologies to help the organization acquire, develop, and deploy intellectual capital (Lepak & Snell, 1998). A Computerized Human Resource Information System (CHRIS) consists of a fully integrated, organization-wide network of HR related data, information,

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The Study of e-HRM practices in Service Sector 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 (Kettley and Reiley, 2003).

With e-HRM, managers can access relevant information and data, conduct analyses, make decisions, and communicate with others - and they can do this without consulting an HR professional unless they choose to do so. Hours of processing are reduced to minutes, and much paperwork is avoided by the use of this technology. For the HR function, e-HRM has the potential to affect both efficiency and effectiveness. Efficiency can be affected by reducing cycle times for processing paperwork, increasing data accuracy, and reducing HR staff. Effectiveness can be affected by improving the capabilities of both managers and employees to make better, timelier decisions. e- HRM also provides the HR function the opportunity to create new avenues for contributing to organizational effectiveness through such means as knowledge management and the creation of intellectual and social capital (Lengnick & Moritz, 2003).

e- HRM and its self-service characteristics can be the cheapest and fastest way to provide specific HR activities (Lawler and Mohrman, 2003). e- HRM is a web-based solution that takes benefit of the latest web application technology to transport an online real-time human resource management solution. It is wide-ranging but easy to use, feature-rich yet bendable enough to be customized to your specific needs. e- HRM as HR portal is a vehicle through which HR information and applications can be channeled effectively and efficiently. Through HR portals, administrative activities could be updated by users and may have the access to customized and personalized news, resource applications, and ecommerce options. Through HR portals managers are able to generate reports, examine employee activities and manage their own activities (Ruta et al., 2005). e- HRM as an umbrella term covering all possible integration mechanisms and contents between HRM and Information Technologies aiming at creating value within and across organizations for targeted employees and management (Bondarouk and Ruël, 2009). e HRM also offers customized portal for every individual user. Users, under certain security level, are able to visit the documents, process daily work and participate in

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The Study of e-HRM practices in Service Sector related projects. e- HRM is the basis of business collaboration. Besides traditional HRM functions, e- HRM gives all employees access to information systems via Internet (Abhilasha, 2011). e- HRM is advance business solution which provides a complete online support in the management of all processes, activities, data and information required to manage human resources in a modern company (Srivastava, 2010).

The shift from traditional HRM to e-HR practices gives rise to several effects on the role of HRM. e- HRM, apart from substantial reductions in cost and time and transition of administrative activities from the HR department to the employees themselves, can bring about an increased emphasis on HR as a strategic business partner whose primary challenge is to recruit, develop and retain talented employees for the organizations (Ensher et al., 2002). The concept of Electronic Human Resource Management known as e-HRM means that the adoption of technology in delivering Human Resource HR practices due to the digital revolution in the world is such a tool that organizations can employ to manipulate the performance and behavior of the people on whom they rely on to achieve business success. E-HR refers to conducting human resource transactions using the internet technology (Kovach et.al. 2002).

Every e-HRM activity can be carried out by means of an intranet. An intranet is defined as a network based on TCP/IP protocols, an internet belonging to an organization, usually a corporation, accessible only by the organization's members, employees, or others with authorization. The intranet’s purpose is to safely share part of an organization's information or operations with its employees and to facilitate the sharing of this information. They support many real job functions and can become the primary avenue that employees use to communicate with people in other groups within the organization and the way you find the information you need to do your job effectively and easily (Nielsen, 2000). 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

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The Study of e-HRM practices in Service Sector maintaining human resource data, and provide accurate information about human resources anytime and anywhere (Prasad, 2003). e- HRM technology should not only be designed to make the HR processes as efficient and cheap as possible, but the e-HRM technology should be made useable too, to increase the service experience of the managers and employees. In this way a client service improvement of the HR system can be achieved. Increasing the efficiency of the HR system and improving service quality are two e-HRM goals (Keebler and Rhodes, 2002). e- HRM enables businesses to integrate domestic and global HRM activities and thereby withdraws possible overlapping HR practices and activities, enables better access to communicate and attract talents from abroad and provides better insights in cost reductions of potentially outsourced HRM practices (Harris, 2008; Dowling et al., 1994). There are many ways through which employers utilize technology to enhance and support the HR function. Technology is used for recruitment, career planning, performance management, determination of rewards and recognition, training and development, and employee relations (Andors, 2005). It would have seen that, global multinational corporations experienced more of the benefit gained from implementing e-HRM, in terms of cost reduction and downsizing in comparison to less developed global organizations (Dolan and Flamma, 2005).

e- HRM supports HR measurement in recruitment, people administration, competence development, training administration, career and succession planning and performance management (Jaquenoud, 2005). It alleviates the administrative burden and produces increased accuracy of results and quality of HR activities. It leads to increased information responsiveness and more information autonomy. It also provides savings of time and cost (Strohmeier, 2007). The application of the internet to the Human Resource function (e-HR) combines two elements, foremost is the use of electronic media whilst the other is the active participation of employees in the process. These two elements give the momentum to the technology that helps organizations to lower administration costs, improve employee communication and satisfaction, and provide real time access to information and reducing processing time (Forster, 2004).

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The Study of e-HRM practices in Service Sector Advance applications of e-HRM are such as virtual career centers, integrated personnel assessments, e-learning platforms, web-based surveys, and on-line performance appraisals (Jones & Arnold, 2003). Important updated HR information is produced from these applications for real-time analysis. Sources of HR information include assessment results, background data, training history, competency profiles, and performance evaluations (Jaquenoud, 2005). e- HRM is an innovative, lasting and substantial development in HRM that needs to be further addressed as a real and enduring phenomenon (Strohmeier, 2007). e- HRM is a resource saving tool as, if, implemented and used properly, will save costs, time and money by cutting down the time required for interviews and testing job applicants. These systems are typically web-enabled, allowing the distribution of data and processes to managers, employees, applicants and other groups, whether based in the office, at home or any location with a suitable internet connection. Over 90% of US organizations claim to be using web-based HR technology to support administrative operations (Crestone, 2009). e- HRM varies not only in the functions for which it is used, but also in the degree of sophistication which it involves (Martinsons, 1994).

e- HRM supports many of the HR administration duties and is a suitable tool for routine tasks. It can improve quality of HR information, as; it is up to date. It allows for decentralization and standardization of HR tasks across global boundaries. From an employee’s perspective, it provides, access to more information regarding their own growth and development and control of their own careers. Line managers will also be having readily access to required employee information for decision-making. It reduces human bias and maintains anonymity of staff in evaluation and giving feedback. Finally, e-HRM allows HR to spend more time on strategic decisions and problem solving.

The core goal of e-HRM is to assist the organization and human resource professionals to get non-strategic, transactional HR tasks done quicker, more cost-effectively and with less dependence on HR staff. In doing so, HR can move onto the more tactical HR interventions by directing the intellectual capital (skills, knowledge and capabilities of individuals in the organization), developing the social capital (relationships between

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The Study of e-HRM practices in Service Sector individuals that promote innovation and greater productivity), and with the end goal of creating new products and services, improving customer service and developing greater Value (Lengnick and Moritz, 2003).

e- HRM permitted the employee self-service as well as manager self-service. Employees are able to select electronically preferred benefits and rewards, thereby reducing the amount of HR administration required to implement these choices. Managers are able to make decisions about salary changes bonuses and rewarding of other benefits (Panayotopoulou et al., 2007). In present scenario, with a shortage of critical skills and individuals taking ownership of their careers, the power has shifted to the employee. eHRM is seen as a vital tool to support this paradigm shift. e- HRM suggests improving HR services toward clients, reducing HR costs and improving the strategic orientation of the human resource function (Bondarouk and Ruël, 2006).

Electronic Human Resource Management (e-HRM) is like an implementation Support System (ISS) for HRM in favor of understanding the better skills, creative abilities and talents of human resources at a very quick time there must be a concept of e- HRM; In general, e-HRM is an interface through which one can directly communicate or know about the right talent through some list or records in their personal database without creating any issue (Srivastava, 2010). When compared to classical –HRM, e-HRM which includes features based on corporate Intranets and many other self-service appliances for employees and corporate staff, also covers the major areas of responsibility of traditional HRM and has constantly gained more and more attention in corporate environment around the world (Lawler and Mohrman. 2003). e- HRM is an enabler of transformation of HR and the organization as main objective rather than the efficiency of HR processes and increased access and quality of HR data (Reddington and Hyde, 2008). e- HR aims at making information available to managers and employees at anytime and anywhere.

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The Study of e-HRM practices in Service Sector Currently, an e-HR system may include enterprise resource planning software (ERP), HR service centers, interactive voice response, manager and employee portals and web applications. Thus, a modern e-HR system allows employees to control their own personal information by updating records and making decisions, and allows managers to access information and data, conduct analyses, make decisions and communicate with others, without consulting the HR department (Panayotopoulou et al., 2007).The adoption of e-HRM is viewed as an attempt by an organization to maximize the strategic capabilities of the HR function through changing the HR role from that of administrative expert towards becoming a strategic partner, and enabling the HR function to spend less time on HR administration(Bondarouk and Ruel, 2013).

It is expected that the HR professionals require additional skills to cope with the change of focus and technology maintenance responsibilities. The increased responsibilities require skills of the HR professionals as they should receive proper training and education to be able to carry the responsibilities of such a role (Ruël et. al.2004, Stanton and Coovert, 2004). Some researchers accept that e-HRM helps to accomplish the globalization aims of the organizations (Ruel et al., 2004).The synergy between IT and HRM helps to establish the shared services centers for HR domain. However the differences in the laws of different countries can lead to complex situations in introducing e-HRM. Even supposing globalization brings about many unknown and complex variables which pose as a major challenge up till now the benefits of e-HRM for global organizations are substantial. e -HRM helps to create competitive advantage and make parallel the function more closely with business/corporate strategy and the longer-term branding and reputational objectives of organizations (Akmanligil and Palvia, 2004). On the negative side, e-HRM can alienate staff members who may require more personal support. It may also push away managers from their subordinates, as there is no longer the need for managers to interact with their staff. Another relevant disadvantage is that, eHRM systems are subject to corruption and data losses which would be devastating for an organization. In this respect, there are technical developments which can mitigate the risks (Strohmeier, 2007; Bell et. al, 2006; Zhang & Wang, 2006; Wright & Dyer, 2000). HR managers have witnessed negative effects in moving from a face-to-face to a virtual

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The Study of e-HRM practices in Service Sector and/or more distant relationship in HR and people management. It is important to mention that control and security issues will also be a challenge for paradigm shift of HR to e-HR (Sareen and Subramanian, 2012).

e- HRM is basically a blockade not a trigger for HRM transformation. IT continues to impact the HRM function. For a decade now, digital possibilities are challenging the traditional ways of delivering HRM services within business. The traditional two-level HRM function based on HR department and middle managers is being questioned for its stubbornness, stiffness, innovative capacity (Paauwe et.al, 2008). Table 1: KEY CHNAGES IN HR FUNCTIONS PRESENT

FUTURE

Strong functional orientation, function

Business orientation, rotation between

specific career path Standard HR Role

business and HR , strong performance orientation

Separated HR organizational entities i.e.

Integrated worldwide HR organization, a

country or regional orientation

global dynamic network

Local and Nation specific platforms leading Standardized IT platforms for key HR to highly heterogeneous HR processes.

processes uniform globally

Mix of different HR organizational models,

Well defined global business partner and

integration of governance and services in

shared services setup, separation of

comprehensive HR

government and service

Local, unlinked control of HR dimensions

Global standardized and segment related

qualitative orientation

HR metrics.

Source: Study of Human Resources Information Systems in Public Sector Banks in India – A Case Study (David, 2010)

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