ICT and HRM – Management Perspective about the Changing Scenario

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ICT and HRM – Management Perspective about the Changing Scenario

Dr. Mubarak Ali

HOD- Administrative and Financial Sciences Department Oman College of Management & Technology, Sultanate of Oman, PO Box: 680; PC: 320

Salim Al Shanfari

HR Manager KCA DUETAG

Oman KCA Deutag Drilling Company LLC PO Box: 74, PC: 328, Rumais, Sultanate of Oman

Abstract:- Information and Communication Technology (ICT) in an organization is significant and influencing not only the gathering and of disseminating information, but also its use in decision making process. ICT support the quick and accurate identification of challenges and opportunities, increase the availability of relevant and timely information, improve both the speed and quality of decision making. The organizations of 21st century have database instead of spreadsheets, they have internet and intranet to connect and communicate in less time, software like CAD, CAM, JIT have made the work of whole organisation simpler and this list is not exhaustive. In fact, the functioning of whole organisation has been advanced with the up-gradation in technology and the way of doing things. Future scope is likely to support the use of science and technology, the management of information and the provision of services.

This paper focuses on ICT related changes particularly associated with the Human Resource Management. The impact of technology has enhanced the competitiveness of the HR department. In the recent past, the organizations and their HR practices are almost changed and positively affected by ICT ranging from paperless office, time attendance, databanks, automating work practices, tele working transaction processing, reporting and tracking applications, E-recruiting, using internet for staffing, employee development using internet.

Keywords: ICT, HRM, HR Strategy, HR Information System,

INTRODUCTION

Policy relating to information and communication technology includes many important decisions like introducing new system or making changes in existing system. Organizations facing challenging business environments such as operating in dynamic markets often turn to successful as a source of information. The use of ICT in business and Human Resource Management was initiated by the developed countries of the world and is being adopted throughout the world. Companies and businesses are opting for ICT in the human resource practices to improve their work efficiency but the situation here is not as progressive as things were started late. Introducing and implementing ICT related changes in Human resource practices is more of a policy decision and a good time has been passes since the technological innovations in work practices.

This research paper focuses on the functioning of ICT related innovations in human resource practices and their impact on the overall organization.

The objectives of the study are as follows:

  1. To bring out the need of ICT in HRM modern organizations.

  2. To understand the applications & utilities of ICT in HRM.

  3. To study the opportunities of ICT in HRM.

  4. To explore the challenges of ICT in HRM. LITERATURE REVIEW

Tesi di dottorato,Dott. Maria Chiara Benfatto(2011) studied comprehensive literature review of human resource information systems (HRIS) and explored the impact of information systems on HR performance. Extensive research has been done to address the benefits in the introduction of HRIS. Little investigation, instead, is available to measure the effects of HRIS on HR performance. This study examined the status of HRIS empirical research. Their outcomes suggested that the first model lacks a hard performance basis whereas the second one does not confirm any direct correlation between higher HRIS progression and better HR performance. This also implies that implementation effectiveness may be a necessary but not enough condition for HRIS effectiveness. The model proposed a conceptual model for investigating HRIS practice produced the best results in an organization. Abhishek Vohra, Ankit Shrivastava, Rohit Premi, Dr. Shine David (2015) referred Information and communication technology to the internet services combined with computers for the unified use of technology. Information and communications technology (ICT) is often used as an extended synonym for information technology (IT), but is a more specific term that emphasized the integration of telecommunications, computers as well as necessary enterprise software, middleware, storage, and audio-visual systems, which enable users to access, store, transmit, and manipulate information. It is based on a survey of 65 employees. The survey concluded that ICT improves the efficiency; innovation reduces the time help in easier functioning of the organization. It improves the performance of the employee. It helps to reduce the work time.

Sabrina Jahan (2014) studied Human Resource Information System. HRIS is one of the major modern HR tools. In developed countries, it became popular since the beginning of this century. In Bangladesh, corporate

organizations have started to implement HRIS in last 5 years. But still its implementation is limited within the big corporate houses. Small corporate houses and public organizations have failed to realize the benefits of HRIS and taken hardly any initiative to implement the system. The major barrier to success of HRIS is the lack of management commitment. The major limitation is the high cost. But the benefits of the HRIS are more than the limitations. Once it is implemented in any organization, employees and management have accepted and realized the benefits. But to

Corporate Strategy

IT

strategy

Short and Middle term

Strategies

Long term Strategies

HR Strategy (Emphasis on

IT)

HR Strategy (Emphasis on

IT)

get it implemented is a challenge. This study is an attempt to provide a theoretical analysis of the HRIS implementation with analysis of benefits, limitations and barriers. A case study was prepared to provide a better understanding of the topic in a real-life context.

Dr SEYNI Mamoudou, Dr G.P Joshi (2014), studied the power of information technology (IT) tools for reaching business targets. Trends and results of the contemporary studies constantly confirm contribution of the IT tools in Human Resources (HR) area to accomplish assigned HR tasks by using the source of IT capabilities. The following paper gives a brief overview about possibilities of IT usage in HR field for measuring and tracking human capital and using the HR information system generally.

JOHN W. BOUDREAU AND EDWARD E.

LAWLER (2017) reported some of the findings from our 2016 survey of HR leaders in more than 100 large U.S. corporations. The full report will appear in our forthcoming book, Human Resource Excellence: An Assessment of Strategies and Trends, which will be published in 2018. The study compared the findings of 2016 survey, with the findings from our 2004, 2007, 2010 and 2013 surveys. The focus was on HR metrics and analytics. It also examined the extent to which HR organizations measure their efficiency, effectiveness and impact, as well as the effectiveness of the metrics and analytics systems for HR operations and strategic outcomes. The correlations indicated that improvements in HR features are associated with these important outcomes. The potential impact of improving different elements of HR and insight into where being highly rated is associated with higher HR effectiveness and organizational performance

THEORETICAL AND COCEPTUAL FRAMEWORK:

Human resource processes should be focused on the strategic objectives. These strategies led an IT strategic plan that in turn translated into an appropriate human resource strategic plan in the field of IT.

1Figure 1: The Framework of Information Technology Human Resources Plan Source: SAMENI, M.K., KHOSHALHAN, F. Analysis of Human Resource Development for Information Technology and E-Commerce in Iran. IT Department, Faculty of Industrial Engineering, K.N.Toosi University of Technology, Tehran, Iran. 2006, p.1190.

HR STRATEGY:

Human Resource Strategy (HR Strategy) is vital for a long- term plan created to achieve objectives in the field of human resource and human capital management and development in the organization. Human Resource strategy is one of the outputs of strategic management in the field of human resources management.

CORPORATE STRATEGY:

It is hierarchically the highest strategic plan of the organization, which defines the corporate goals and ways of their achieving within strategic management. A vision and mission are parts of the strategy. When developing the strategy, numerous analytical techniques are used (see PESTLE, SWOT, VRIO) When implementing the strategy, Sometimes, the global strategy is distinguished as an overall plan, and specialized strategies dedicated to specific areas of functioning of the organization (financial or personal strategy, etc.). Corporate strategy encompasses a firms corporate actions with the aim to achieve company objectives while achieving a competitive advantage.

IT STRATEGY:

IT Strategy (Information Technology Strategy or Technology Strategy or ICT Strategy or IS Strategy) is a plan of action to create an information technology capability for maximum, and sustainable value for an organization. IT Strategy helps create shareholder value and maximize the return on IT investments.

SHORT AND MIDDLE TERM STRATEGIES:

Short-term usually involves processes that show results within a year and medium-term plans at results that take several years to achieve. Many business operators will set a short-term objective for their staff in order to assist them in moving gradually toward the company's longer term goals.

Medium-Term Financial Strategy. A financial strategy with a term longer than the short term but shorter than the long term. In general, however, a medium-term financial strategy outlines investment and other financial goals for any time between roughly six months and one year.

LONG TERM STRATEGIES:

Performance goals of an organization intended to be achieved over a period of five years or more. Long term objectives usually include specific improvements in the organization's competitive position, technology leadership, profitability, return on investment, employee relations and productivity, and corporate image.

THE FRAMEWORK OF THE IMPACT OF ICT OF HUMAN RESOURCE (HR) PRACTICES

Organizations learn from the external environment and adapt according to the changing scenarios. With the increasing impact of information and communication technology around the world Human Resource practices are being influenced and changed and these changes are perceived as cost and time efficient as well as improve the satisfaction of workforce. It depends on management how they manage the change process taking place in the work place and successful implementation is owed to the effective role played by the management.

Era of information and

accuracy and more information to make more rapid turnover.

The information technology mechanization and high-speed process is.

  • Information Technology virtual Jobs and remote collaboration makes it possible.

  • Information Technology makes it possible to increase interaction and immediate feedback.

  • Information Technology created, distributed, and intelligent knowledge management is effective.

  • Information Technology the wide range of computing do without fatigue.

  • Information Technology information at different levels of the organization sharing.

    TRANSPARENCY AND INTEGRITY IN SYSTEM DESIGN:

    In the age of information technology open science information is based on and use of information and its access to institutions is very important. The use of Information Technology creates a centralized database, this can be achieved by Client- Server-like systems. In organization information produced have the following characteristics:

  • Transparency

    Coordinating Agents

    Employee

    Welfare

    Hum an Reso

    communication

    Changing Human Resource Practices

    Perceived outcomes of change

    Cost Efficiency Time Efficiency Satisfied

    • be concise

    • ease of access

    • ease of processing and analysis

      Features centralized systems

    • Remove communications and automated data

      Managing change process

      Fig 2 – Impact of ICT of Human Resource (HR) practices

      FACTORS INFLUENCING HRM CHALLENGES IN ICT ENVIRONMENT:

      The variables considered to measure HRM challenges are Organizational Development (Reliance on ICT, Efficiency and efficacy, Privacy and security, Cooperation and coordination and Work time reduction), Productivity (Job expertise , Productivity improvisation , Accessibility , Lessen manual workload and Feasibility ), Cost effective (Training , Financial soundness and Revolutionary) and Communication (Communication and Data sharing )

      THE ROLE OF INFORMATION TECHNOLOGY

      The important practices of human resource management are, the accuracy and speed of performance, transparency and integrity in system design, information extensive and timely use of the Internet and Intranet networks, conduct necessary training through virtual education, evaluation and rapid, the timely feedback, development Activity and develop staff skills.

      THE ACCURACY AND SPEED OF PERFORMANCE

      Organizations survival, growth, development and survival in the competition with competitors should raise speed and

      exchange.

  • Entry and information processing the mechanized.

  • Remove information. Duplicate organization.

  • Comprehensive control over the information

  • Mechanization and standardization of information

  • Centralized management and reporting as on line

  • Increase speed and facilitate the exchange of information

  • Increasing the accuracy and reliability of information

  • Access to information

  • Avoid wasting time, Human resources and financial costs

  • increase the accuracy of the information through continuous monitoring

  • Ease of standardization methods of information exchange

    Extensive and timely information

    Information such as Personal information such as phone numbers, Information about Registered in-service courses. Information about the Enroll in virtual courses can be immediately accessed using ICT .

    Perform the necessary training through virtual education. Courses by this method can be centrally managed, the main advantage is that virtual education Human resources can from the desk in this type of training. The advantages of virtual education include the following:

  • Increased efficiency in the use of equipment

  • Flexibility against change

  • Improving Human Relations in the Workplace and the ability of employee participation

  • Work incentives and creativity and innovation

  • Increasing motivation and the creation of favorable conditions for employees

  • Educate and empower executives skills required in

  • Continuous monitoring and evaluation of programs and educational functions.

    THE ACCURATE AND RAPID EVALUATION AND FEEDBACK:

    The information technology is a weak organization they cannot be evaluated by their good people always look forward to evaluating managrs are monitoring and directing and good practices assessment is on because usually their managers any time information directly to and expertise in information technology are the details.

    In general information Technology support helps to assess the following dimensions:

  • Rapidly increases access to information.

  • Information provides rapid feedback.

  • Can be easily modified knowledge.

  • The standard deviation is determined.

  • A person to discover the weaknesses of working and looks professional.

  • Access point and access opportunities the cornerstone of strategic decision making, be performed faster and more accurately.

  • A comprehensive plan is a better plan.

  • Increases the quality of decisions.

  • Decision time can be minimized.

  • Human error Organizational information processing networks decrease.

    Development activities range:

  • Reduction of clerical jobs

  • Reduce of manpower inactive and reinforce the remaining

  • An increase in jobs in professional, managerial and technical

  • Does not require monitoring of personnel handling due to their professional

  • The need to establish a system of control

  • Reduce staff stress

  • Increasing the quality of work life

  • The use of flexible working hours

  • Expenses decreased absorption education and Human Resources

  • Using the method to increase employee commitment

  • Align employee goals with organizational goals

DEVELOP SKILLS IN STAFF

Human resource managers use the information productivity can be any of the above-mentioned skills. Develop the best employees and prevent skills obsolescence and making understand staff in the all parts different an organization are interdependent and changes in any of the sectors will necessarily affect other parts, the organization lead to growth and development.

IHRM Challenges Training the users to use HRIS The first challenge of company to implementation the Human Resource Information System (HRIS) is ensuring that a HRIS for a company involve one key issue that is have the users that can use this HRIS. The HRIS could be count as the latest technology to operate to human resource department, but there is not every manager and employees know to use this system well and some of them even do not know what this system is and what this system is for. For this case will make the company face the challenge to use this HRIS to help their human resource department to do its jobs perfectly. This will also cause the company cannot work efficiently, quick access to information and the information will be have risk to stole by other company easily. So, human resource department need to provide training to employee of a company in certain areas and the human resource department must make sure that the employees in the company are properly trained to use the HRIS well. However, teaching the employees how to use system is not the only component needed and it is also critical to teach the employees know to use the HRIS to locate the answers to solve the human resource questions. This requires the employees, under this training program need to adopt the new mindset of self-service rather than turning the human resources questions to the answers by using the Human Resource Information System (HRIS) and make employees become a part of HRIS.

COST TO PURCHASE AND IMPLEMENTATION OF HRIS

Next, the one of the most significant challenge facing by the company to run the Human Resource Information System (HRIS) is the cost to purchase and implementation of a Human Resource Information System (HRIS). If the company is looking the cost to justify a HRIS new system or upgrade one, they will much need new HRIS software. But for the company already have a policy to cost justifying any new technology for their produce and investment and this cause the company facing the lack capital problem to purchase and implementation of HRIS. Besides that, HRIS system represents a large investment decision for company of all sizes to purchase and implementation this HRIS and this will become the challenge that is the lack capital problem facing by the company. Therefore, some company does not want to upgrade their HRIS system to a new one, even some of the company still using the traditional way to operate their human resource department. This situation will lead the company cannot get the benefits from HRIS that is improved accuracy of information, the provision of timely and quick access to information and the saving the costs of human resource. So, having an HRIS system in the company

are very important and it can also bring a lot of benefits to the company and help to reengineer the entire Human Resource (HR) function to work more effective and help the human resource department can use full of HRIS advantages and the company can operate properly too.

TIME TO ADAPT THE HRIS

Besides that, the challenge facing by the company is the time that employees and managers need to take to adapt the Human Resource Information System (HRIS). Even if the employees and managers know how to use the system, it will not serve the company if they cannot perceive any benefits from its use said. Besides that, some employees are not good in using computer, they will take very long time to adapt this new system even they are trained employees. Not only that, by using the Human Resource Information System (HRIS) will help to reengineer the entire Human Resource (HR) function and this also need take time for employees and managers to adapt this system. Some of their companys HRIS system are lack flexibility will cause the employees and managers use more time to adapt the system. Even this HRIS need some time for employees and managers to adapt for it but HRIS still can bring a lot of convenient to human resource department and it can help the company can operate properly.

LACK OF FUNCTIONAL EXPERTISE IN DESIGNING

The challenge facing by the company is lack of functional expertise in designing of Human Resource Information System (HRIS). The HRIS could be count as the latest technology to operate to human resource department to do the job properly, but there are not yet become a flexibility system for operate the department and company need to hire the expert in this HRIS system keep maintain the system in perfect condition. The lack of flexibility of HRIS would have a risk hacking by theft of information, the companys information would easily know by other people. Besides that, the HRIS cannot solve the difficulty situation and sometime the system will solve wrong problem because of the lack of functional expertise in designing of HRIS. But if the company can keep upgrade the functional expertise in designing of HRIS and it can overcome this problem and it can help company operate the human resource department work efficiency. So, the company need to keep maintain the HRIS system and always make sure the system are at the perfect situation.

IMPROPER VENDOR PROVIDES ILLEGAL COPY OF HRIS

The last challenge that face by the company is the improper vendor that provide the illegal copy of HRIS. It is because the HRIS is the latest technology for the company to operate the human resource department and implementation HRIS are expensive, so many of company willing to implementation the illegal copy of HRIS because the improper vendor cost the company cheaper than others. The illegal copy of HRIS possible have the virus that always make the system clash down then the company need to ask the improper vendor to repair it and improper vendor can keep charge the company repair fees. Besides that, the illegal

copy of HRIS possible have the spyware that let the improper vendor have the backdoor that allow the improper vendor can stole the information from the company.

CHALLENGES TO SUCCESS OF HRIS

The challenges to success of RIS are as follows

  • An inconsistency in the importance attributed to HRIS resulting in difficulties in sustaining management commitment to the project and in obtaining the resources necessary to fully develop the new or upgraded HRIS.

  • A tendency to underestimate the complexity of the HRIS and its impact on the behavior and processes of the organization.

  • The barriers to user acceptance of the HRIS and the consequent underestimation of the importance of change management.

    Implementation of HRIS

    The following steps are involved in developing and implementing an HRIS are

    Step 1. Inception of idea

    The first step of HRIS implementation is the inception of the idea. The need of the organization to have HRIS software must be realized and agreed by the top management. It is an investment and management need to keep it in mind.

    Step 2. Feasibility study

    As this is an investment the feasibility of HRIS must be assessed. It covers the following areas

  • Scope of the software

  • Future benefits after implementation

  • Potential software developers assessment

  • Cost estimate

  • Value addition to business

  • ROI calculation

A proper feasibility study will help the management to make the decision based on facts and figures.

Step 3. Selecting a project team

Implementation of HRIS is a project as it requires ensuring budgeted cost, specific timeline with quality delivery. Successful implementation largely depends on capability and effort of project team. Project team members should be taken from both HR and IT. Involvement of senior managers is required to get the top management buy in on different issues. Experts recommend that HR and IT representatives share leadership of the project team. If at all possible, project team leaders should be dedicated to conversion full time. Having a dedicated team means [the implementation] will go faster, says Gretchen Alarcon, vice president of human capital management product strategy for the Redwood Shores, Calif.-based HRIS software firm Oracle.

Step 4. Defining the requirements

At this stage the scope needs to be defined. It will not be a detailed requirement specification but at least the processes that will be incorporated in the software. Some organization may want to develop the payroll module while others may want more modules to be developed. It all depends on the

affordability and plan of the concerned organization. But it is an essential step before communicating with the vendor or software developers. Otherwise it will create complexity during discussion and negotiation with the software developers. At this stage the company HR policies and processes must be analyzed and defined rigorously. If there is any ambiguity in process, difficulty may arise to incorporate it in the software.

Step 5. Vendor analysis

Selecting the right software developer is another challenge. The capability, track record and good will of the developers must be taken into consideration. The requirement of the organization must be shared with the developers clearly without ambiguity. The existing processes can be clarified with them, if required. After getting clear understanding about the requirement they will come up with their offer that includes cost and specific timeline for project completion. The software requirement specification needs to be documented to avoid ambiguity

in future.

Step 6. Package contract negotiation

After getting the final offer from the vendors, the decision of work order will be finalized based on cost and quality actors. Then the contract will be signed with the software developers. The development work will start then. But the company needs to monitor the development work time to time to ensure on time quality delivery of the project.

Step 7. Training

Training usually begins as soon as possible after the contract has been signed. First, the members of the project team are trained to use the Human Resource Information System. Toward the end of the implementation, the human resource representation will train managers from other departments in how to submit information to the HRIS and how to request information from it.

Step 8. Tailoring the system

After finalizing the system requirement specification, the design of the software will be initiated. The design should be shared with the company to identify improvement areas.

Step 9. Collecting data

At this stage required data to enter in the software will be collected. A team of HR needs to be deployed to collect data for the software. Data validation is also required. This is a very critical part of the project.

Step 10. Testing the system

Once the system is developed with data the testing is required. Some organizations call it User Acceptance Test. At this stage the users use it and try to check if there is any gap between requirement and the delivery of the software. If the test is okay, then the final delivery is given to the company.

Step 11. Starting up

After the User Acceptance the software will be installed in users PC or web as per system configuration and requirement specification.

Step 12. Running in parallel

It is a safe stand to run the existing process whether it is manual, or software and the new software run in parallel. In case of any malfunction of the new software the process will not get hampered. At least one full cycle of the process needs to be run in parallel to avoid any technical hitch.

Step 13. Maintenance

Once the software has been installed regular maintenance and performance monitoring is essential. For effectiveness annual maintenance contract can be signed with the software development company.

Step 14. Evaluation

After running the software for a certain period, the performance evaluation will be done. What value the software has added since its inception needs to be evaluated.

HR practitioners as well as academics face the challenge of devising general evaluation frameworks and performance measurements, which (1) have to be sensitive to the most commonly individualized and historically grown nature of HR information systems and–in many cases–include this individualization as an indicator to be assessed in order to determine the systems functionality, and which (2) are sensitive to the fact that an HRIS efficiency can only by measured with reference to its causality on overall business performance.

In the last decade, HR has changed from a business unit to a service center, and the service center has moved online for employee self-service and encouraged self-reliance. Information systems have quickly moved HR from antiquated data collection and paper pushing to a focus on knowledge sharing and strategic workforce analysis.

HRIS in the future enhance the HR in four different ways. Technologically speaking, there will be enhancements to the web portals they will become more sophisticated and more individualized workplace productivity tools for managers and employees. Secondly, improved decision-support tools, such as those being tested for health insurance in the U.S., will benefit both organizations and employees. Third, virtual workplaces will become more commonplace and heavily used. And fourth, the Human resource function will be liberated from administrative shackles and able to focus more on developing intellectual capital, social capital, and managing knowledge to improve an organizations competitive advantage.

Web portals that give employees access to information will continue to evolve. Decision-support tools will become more numerous and more sophisticated, improving managers decision making and employees organization. These tools will provide managers step-by-step information about human resource issues.

Decision-support tools will also provide employees step-by- step information about human resource issues. They will bekey to educating employees and providing the information necessary to make complex decisions and generating preference data that HR can use to drive strategy. Virtual workplaces will become commonplace in the future. Employees will use on-line meetings, project team workspaces, web conferences, and video conferencing.

HRIS is essential for any good organization to ensure effective people management and to get a competitive edge in the corporate world accordingly. In Bangladesh, it is gradually getting popularity and acceptability. The enterprise/business owners should consider it as an investment rather than cost. Commitment of top management is required to remove the existing barriers to success of HRIS. Like MIS, it will help management to make effective and better decision. The communication between individual and line manager became faster. The HR services became self-service rather than paper-based transaction that resulted in more efficient HR department.

CONCLUSION

In the present day of complex and dynamic business environment, the application of information and communication technology has become inevitable in all the operations of business enterprises across the world. Human resource management key operation of an organisation as the efficiency of the whole organisation is highly influenced by the successful operation of human resource planning and management. This paper has dealt with the application of ICT in the HRM of an organisation highlighting the challenges faced by and the opportunities available for organizations of the present-day business environment.

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