Introduction

The Human Resources (HR) function has always been on the forefront of integrating technology
in organizations. In fact, one of the earliest business processes to be auto-mated in organizations
was payroll administration. Since then, HR has continued to merge new technology with old
processes. For example, most organizations use computers to maintain their employee records.
These human resource information systems (HRIS) increase administrative efficiency and
produce reports that have the potential to improve decision making.
Today, managers and employees are assuming activities that once were considered the domain of
human resource professionals and administrative personnel. This represents a significant break
with the past, but one that has the potential to improve overall organizational effectiveness. Both
managers and employees can respond more quickly to changes when they have relevant
information that is accessible - and when they are empowered to make decisions using that
information. HR has made this happen. But what does this mean for the future of HR?
What is e-HR? Recent developments in technology have made it possible to create a real-time,
information-based, self-service, interactive work environment - something that was not possible
throughout most of the twentieth century. The term e-HR was first used in the 199os when ecommerce" (or electronic commerce) was sweeping the business world. Like e-commerce, e-HR
referred to conducting business transactions - in these case human resources - using the Internet.
The Internet initially provided human resources departments with the opportunity to make
information available to managers and employees any time they needed it and anywhere they
wanted it as long as they had access to a connected computer. However, over time, human
resource professionals began to explore the full range of possibilities for using the Internet along
with other technologies for the delivery of human resource services. Today, a total e-HR system
may include enterprise resource planning software (ERP). HR service centers, interactive voice
response (lVR). web applications, voice recognition systems (VRS), and manager and employee
portals.
With e-HR, 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. For example, a manager who wants to make a merit pay
decision may access files containing text, audio. and video describing how best to make the
decision. Then, the manager can access the data file containing information on his/her
employees. With a click of the mouse, the decision is recorded and other departments (such as
finance) are notified. Hours of processing are reduced to minutes. and much paperwork is
avoided by the use of this technology.
With e-HR, employees control their own personal information. They can update records when
their situations change and make many decisions on their own, consulting human resource

professionals only when they deem it necessary. For example, an employee who wishes to
increase investments in a retirement plan can do so from work or home using the lntemet.
Employees may also. for example, participate in a training program at home after working hours.
For the human resources function, e-HR 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 human resource staff. Effectiveness can be affected by
improving the capabilities of both managers and employees to make better more timely
decisions. e-HR 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.
So, what is the impact of e-HR on the human resources function of the future? First, it will be
smaller than it has been in the past. Organizations will no longer need scores of clerks to record
information and process forms. Second, it will have a more strategic/managerial role rather than
an administrative one. Time previously spent on administrative issues will be replaced with time
spent on firms competitiveness issues. And, third, the human resources function will be able to
create new paths to add value to the organization. The HR function can move beyond its
traditional focus of hiring, training, compensating, etc. to assume new roles such as human
capital steward, relationship builder, and knowledge facilitator.

e-HR definition

e-HR stands for Electronic Human Resource. The term e-HR refers to deal Human Resource
Management transactions using an internet. E-HR aims to keep information available to
employees and managers at anywhere at any time. E-HR may include organizations HR portals
and web applications, Enterprise Resource Planning, HR service centers and interactive voice
response. There are three identified levels of e-HR such as publishing of information (delivered
by intranet medium), automation of transactions with integration of workflow (intranet or
extranet used) and transformation of the HR function (redirect HR function towards a strategic
one). E-HR is characterized in field of HRM as having numerous innovations in Technology and
it provides wider potential in term of usages including employee self service, information
sharing, functions administration and production of reports.
e-HR is developments in technology to create a real-time, information-based Self-service,
interactive work environment. With e-HR, managers can access relevant information and data,
conduct analyses, decision making and communicate with others and employees are able to
control their own personal information like update their records when it changes and make any
decision on their own without consulting with any professionals help.
e-HR will affect both efficiency and effectiveness of Human resources function in such a way
that the efficiency of the human resource process can be effected by reducing cycle time for
paperwork, Improvements is data accuracy and reducing manpower requirement. In similar way
the effectiveness of human resource process will be affected by improving the capabilities of
both employees and managers to make a better and accurate decision.
e-HRM as an enterprise-wide strategy that used scalable, flexible and integrated technology to
link internal processes and knowledge workers directly to the business objectives of the
organization.

Traditional HR to e-HR: Trends and Comparison

As we have studied the shift from traditional HR to e-HR, we have noted five overarching trends.
These trends include:
Substantial reductions in cost and time for many HR activities
Transition of administrative activities from the HR department to the employees
themselves
An increase in information readily available to employees
The need for integrating HR with other organizational systems, particularly with
information systems and
Increased emphasis on HR as a strategic business partner whose primary challenge is to
recruit, develop, and retain talented employees for the organizations.
The first trend is that the time and money spent on certain HR processes have dropped
significantly thanks to technology and the Internet. Specifically, we have seen cost reductions in
relation to the functions of recruitment, compensation and benefits, performance evaluation,
training and development, and career management. However, technology has also created new
challenges for functions such as health and safety, and legal issues such as privacy in employee
relations. Overall however, the use of e-HR practices has been reported as a source of
considerable cost savings by these participants and past research.
The second major trend is that various HR functions previously administered by HR (e.g.,
benefits, training and development plans, and personnel records) are now administered by the
employees themselves, with the aid of technological tools.
A third trend is the increased involvement by employees in HR practices, and the increased
knowledge that they have about HR issues. Employees are becoming much savvy about HR
activities. One effect of this distributed knowledge is that HR professionals must consistently
keep up to speed with new developments in their own HR processes. Where information
regarding benefits options and salaries were once the private domain of the HR department, the
Internet has now made more of that information available to employees throughout
organizations.

The fourth trend that has resulted from the influence of technology on HR processes is the
increased need for HR information to be integrated with the information systems and other key
systems of the organization. Long gone are the days of HR as a standalone department with
which employees rarely interact unless people problems arise. Using the Internet and e-mail for

recruiting has seemingly triggered this focus on information sharing and coordination concerning
the companys most precious asset-its own people.
Finally, the clear objective voiced by professionals in our study is that HR needs to be (And in
many cases is now becoming) a strategic business partner in their organizations. HR needs to be
practically and symbolically integrated into the strategic leadership team of organizations. HR
professionals and line managers should consider working together in assessing how transitioning
from traditional HR to e-HR practices can add value to the business of the organization.
Following table presents a comparison of traditional versus e-HR practices that can be used as a
starting point for HR professionals and their business partners to assess how their organization
can effectively implement e-HR.

Three forms/ levels of e-HR

Three forms/ levels of e-HR have been identified, depending on the primary focus of e-HR
Publishing of information: This involves one-way communication from the company to
the employees or managers. In this form of e-HR, the company uses the intranet as the
primary information delivery medium
Automation of transactions, with integration of workflow: In this form of e-HR,
paperwork is replaced by electronic input. Intranets and extranets are used, frequently
combining several different application programmes.
Transformation of the HR function: In this form, e-HR liberates the function from its
operational focus and redirects it toward a strategic one. Under this form, HRM takes up
the following tasks: partnering with the line, creating centers of expertise and service
centre administration.
The latter (transformational) form of e-HR is rare even in countries like the USA, which are very
advanced in HRM.

e-HR Functions

E-HR can have an impact on every area of HRM. In this section we briefly discuss the effects of
technology on six key HR processes, namely: (1) HR planning; (2) acquiring HR (recruitment
and selection); (3) HR evaluation (performance appraisal); (4) communication; (5) rewarding HR
(performance appraisal, compensation and benefits); (6) developing HR (training and
development, career management).
Human Resource Planning. In relation to HR planning, e-HR, particularly through the functions
of Employee and Manager Self-Service Applications, has brought substantial progress in terms
of employee data updates, personnel changes and job requisitions. This means that, since
employees are given the opportunity to update their personal data, the HR record-keeping gains
higher accuracy and data quality. The same goes for personnel changes and job requisitions that
are submitted by managers to the HR through manager self-service applications.
Acquiring Human Resources. The practice of online recruitment is one of the most widely
discussed functions of e-HR. Online recruitment refers to posting vacancies on the corporate web
site or on an online recruitment vendors website, and allowing applicants to send their resumes
electronically via e-mail or in some electronic format. It also includes the active search of the
Internet and the location of resumes. This possibility of online recruitment has been much
debated as a unique way to recruit passive job seekers. Furthermore, online recruitment brings
substantial benefits in terms of cost, time, candidate pool and quality of response. However, there
is always the danger of resume overload, as well as low reputation and effectiveness of various
web sites and databases, not to mention its questionable effectiveness for senior executive
positions. The use of technology can also improve the sorting and contacting of candidates. The
Internet can ease the selection of employees, especially where long distances are involved. Video
conferencing and online tests, for example, have been extensively used at the early stages of the
selection process and can achieve spectacular cost and time savings.
Evaluating Human Resources. E-HR allows the whole performance appraisal (PA) to be
conducted on-line, on the corporate Intranet interface. This means that the manager and the
employee are able to submit performance data directly to the HR department in electronic form.
This practice, though criticized for the lack of written evidence, reduces paperwork and if read
receipts for both supervisor and supervised are used, it can impressively decrease time and cost
for the HR department. The self-service application allows managers to immediately enter PA
results and employees to manage their performance goals and results and plan their performance
on their personal HR page. It can also provide managers with information on how to conduct a
PA, the specific criteria and measurements of given positions and roles as well as examples and
models of effective appraisals.
Communication. The benefits of e-HR use in terms of communication are substantial. In its
simplest form, e-HR includes the use of electronic mail for communication with the employee.
The penetration rate of computer-mediated communication, mainly e-mail, is higher than 75% in
corporate environments and e-mail has emerged as the communication medium of choice.

Intranet and e-forums have also altered corporate communication, allowing easy access to all
kinds of information that management wants to transmit to employees and also easing upward
communication.
Rewarding Human Resources. Employee self-service allows employees to submit electronically
their preferences in terms of benefit selection, reducing the burden for the HR department.
Experience has shown that after the implementation of a self-service employee benefits system,
employees may still be calling with benefit questions, confused about their choices and unable to
grasp a broader rewards perspective. However, it is believed that web-delivered employee
benefits, if properly implemented, entail considerable economies for the HR department.
Moreover, manager self-service allows the manager to take on or confirm salary actions, salary
changes, bonuses and stock management. The application usually notifies managers on the
choice they need to make or verify about rewards of their subordinates and asks them to insert
their decision.
Developing Human Resources. Using the Internet in training and development is one of the
mostly discussed aspects of e-HR and probably the one with the most potential in terms of cost
benefits. The Internet can be used in training needs assessment, in pure e-learning activity and in
career management. The e-mail and electronic forms on the intranet of the company or a
restricted web site are used to gather information on training needs assessment, inducing benefits
in terms of less paperwork, lower administration cost, shorter distribution and response time, and
higher response rate. Their only disadvantage is the perceived loss of confidentiality or
anonymity of response. E-learning includes any learning activity supported by information and
communication technologies. It can take the form of either local intranet provision, delivered
over a network of interconnected computers, or of full access to Internet and the World Wide
Web, drawing upon a full range of multimedia, links to other sites and resources, downloadable
streaming videos and communication systems. E-learning can offer a solution to training in
remote or disadvantaged locations, as well as tailor-made learning that fits the particular needs of
the learner, but it can also create barriers to learning, due to lack of hardware, fear of technology
and learner isolation.

e-HR Strength
Benefits of e-HR and e-HR adoption
Sharing of information with one way communication from the organization to employees or
managers through the companies intranet system (reduce the expensive printing cost; users can
get current information, Quick notification of any changes).
Automation of transactions with the combination of intranet with different application program.
The paper work is totally replaced with electronic media.
The adoption of E-HR brings benefits in major areas in the HR processes such as HR planning,
acquiring HR (recruitment and selection), HR evaluation (performance appraisal),
communication, rewarding HR (performance appraisal, compensation and benefits) and
developing HR (training and development, career management).
Users can access database and able to update and search in formations and make
decisions accordingly through e-profile.
Allows managing of recruitment and hiring process (Job advertisement, Manage
applications and interview) in a systematic manner through E-recruitment.
Application and approval process of leave management and its review through eleave.
On-line submission and approval process of employees claim to Finance is possible
through e-claims.
Web-enabled appraisal, skills development and career mapping can be performed
through e-appraisal system.
Managing of payroll processing will be very systematic and fast way by e-HR system,
which involves the calculation and reporting of taxes, gross or net pay and
deductions, arranging or allotment of money to different cost centre.
Computerized Job evaluation or performance rating system is another strength of eHR to determine the worth of each job and to decide the correct pay rate. This is
based on the points system rated against the each type of job and its nature.
Use and reasons for e-HR adoption
Based on the research in the article, few percent of organizations do not have a web page and
most of the organizations already have web page to improve customer communication, product
advertisement, public relations, recruitment process, cost effectiveness, services to internal
customers, and staffing procedure and communication. Based on the respondents believe that the
various HR functions will become more wide spread in the future and also appears that the use of
e-HR, the communication will be decreased as well. The use of E-HR provides more gains in
time management, company image, and operating-cost reduction and minimizes mistakes.

However some companies not using e-HR due to less usefulness, security issues, inconsistency
with practices used and other practical problems.

e-HR and the role of HRM

Based on the study and HR experts, the role of the HR function can be
changed by e-HR adoption. The adoption of e-HR practices has a great
impact on strategic goals of the organization image, alignment and cost
reduction. Only few percentages of HR managers have doubtful in the
relation to e-HR as no replacement for face to face communication and
personal contact. Higher percentage believes that the HRM role will be
upgraded with e-HR in term of strategic improvement in speed, quality and
achievements of services.
The shift from traditional HRM to e-HR practices gives rise to several effects
on the role of HRM. E-HR, 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.
Firstly, a major effect of the shift from traditional HRM to e-HR is that it enables HR employees
to focus on more strategic, value-added activities. Less administrative and paperwork allows the
HR professionals to develop other, more strategic functions of their profession. On the other
hand, this may also mean that with the use of e-HR, fewer HR professionals are needed, because
e-HR eliminates the HR middleman. Therefore, the effect of e-HR on the HR profession may
be seen as both a threat and an opportunity.
Secondly, e-HR, through self-service, entails increased involvement of employees and managers
in HR practices. The employees and general managers become savvier about HR practices and
HR devolvement becomes a reality. This distributed knowledge poses the challenge for HR
professionals to consistently keep up with new developments in their field, in order to maintain
their advisory-consulting role.
Another point that needs to be stressed is that, as e-HR is more than technology, it calls for
competent HR professionals in order to fully benefit from e-HR development and
implementation. Technology itself may be value neutral, but how it is used can greatly impact
the role of HR. This can be seen as a further opportunity for the HR profession, to take up the
role of the developer of e-HR functions. It demands, however, that the HR professional also
become knowledgeable in basic IT issues, so that communication using IT is more productive.

E-HR tools have the potential to transform HR into a strategic partner, but this transition wont
come without difficulties. In order to move to the third level of e-HR, i.e. HR Transformation, it
is necessary to identify the opportunities for improvement in five areas:
processes used to deliver HR,
people in HR and their competencies,
culture of the HR organization,
its structure and
the technology used
So, in the long term, the adoption of e-HR demands significant adjustments overall in the way
that the HR department operates. These include devolvement of some functions to the managers,
decline of several administrative functions and increased expectations from the HR professional,
who will be expected to take up a more strategic and knowledgeable role.

Internet and HR

Importance of the internet to HR Practitioners

In the technology points of view the HRM can be characterized as human resource information
system (HRIS), electronic human resources (E-HR) and virtual human resources (VHR). HRIS
gather and maintain HR data, E-HR provides employee self-service i.e. ESS, sharing
information, reports and administrative functions. VHR creates network-based structure built
with partnerships through IT. Internet allows organizations to automate HR processes like
various current existing HR-functions, services or applications can be transformed into webbased function.

Internet support for human resource management

The growing number of internet users the HR professionals can be benefited as the internet
provides reductions of communication cost, information management facilities, wide range of
communication through emails, information accessing from web sites searching. The intranet
also helps to support HRM functions and enables activities like information search,
communication and database access, and establishes company information system.

Internet applications providing support for HRM

The internet revolution helps to shift HR activities to specialized online service providers.
Frequently cited useful Internet support HR applications are recruitment and selection, training
and development, payroll, benefits and compensation management/administration, Performance
appraisal, HR planning, internal and external communication, self-service including web-portal,
and knowledge management.

How Does Technology Impact HR Practices?

Technology has changed the business world many times over. In the Information Age, the advent
of computers and the Internet has increased that impact significantly. Many businesses cannot
even function without the use of computer technology. This impact is seen in nearly all areas of
business, including human resources, where technology continues to have a significant impact on
HR practices.

Recruiting
One way in which human resources has been significantly impacted by technology is in the area
of recruiting. Before the Internet, HR recruiters had to rely on print publications, such as
newspapers, to post jobs and get prospects for open positions. Other methods such as networking
also were used, but HR recruiters did not have the ability to post a job in one or more locations
and have millions of people see it all at once. Technology has made recruiting more efficient and,
in the hands of the right recruiter, more effective as well.
Training
Information technology makes it possible for human resources professionals to train new staff
members in a more efficient manner as well. The ability to access company information and
training programs from remote locations eliminates the need for trainers to work directly with
new hires on all training. Some interaction will always be necessary on some level, of course, but
training in virtual classrooms makes it possible for the HR professionals to train a large number
of employees quickly and to assess their progress through computerized testing programs.
Data Storage and Retrieval
Human resources professionals generally process a considerable amount of paperwork and also
have to keep much of that paperwork on file for a considerable period of time. The use of
electronic imaging has made it possible for companies to store and retrieve files in an electronic
format. Technology also makes it possible for human resources professionals to simply print the
forms that are needed for employees. Printing on demand eliminates the need to dig through an
endless number of files in the file cabinet to find what is needed.
Performance Management
Enhanced performance management is another byproduct of technological improvement. Human
resources professionals can use computer technology to assess employee performance and also to
get employee feedback to be used for the betterment of the organization. Various software
programs make it possible for human resources professionals to examine employee performance
using metrics to ensure that employees are meeting performance standards. Employees that don't
measure up can be subjected to additional training or let go in favor a replacement who can come
in and do the job.

e-HR Weakness

An expanded model of the factors affecting the acceptance and effectiveness of electronic HR
systems
Technology is highly profound in the human resource management, almost most of the large
organization use electronic human resource (eHR) systems to attract job seekers and provide
training, manage employee performance, and admin benefits and compensation systems.
The organization's values, goals and resources induce the development of organizational systems
and processes to facilitate achievement. Most of the organizations implement systems and
processes for convincing talented job applicant, encouraging employee to achieve organizational
goals and sustaining employee with his role. This affects the organization's ability in the
achievement. Similarly, individuals' values, goals and skills involve the determination of
intentions and behaviors. Based on the above, the combination of e-HR systems and individual
factors affect the system acceptance. Organizations use e-HR systems to convey HR details, and
induce individuals' attitudes and behaviors. This shows that e-HR systems vary the nature of the
communication media and message characteristics. the communication easies the relations
between message factors, media characteristics, and system acceptance and effectiveness.

Factors of e-HRM adoption

E-HRM is as the application of IT to both network and support environment to perform HR

tasks. The concept of e-HRM is like Virtual HRM and web-based HRM. The adoption of e-HRM
takes in individual level and organizational level. The organizational level comprises of several
phases such as initiation, and implementation phases of adoption. The general and contextual
factors are derived and tested using a large-scale survey.
General factor
In the influence of adoption, the general factor is identified as size, industry, demography, work
organization, structure of employment and HRM configuration of organization.
In larger organizations the HR tasks in large quantities that can be justifiable for large
investments in IT to clear out huge amount transactions using number of applications per week to
save administration costs. But small organizations with few applications have difficult to justify
for such a huge investment in IT. The size of an organization reveals an effect on the adoption
of e-HRM since the larger organization will more frequently adopt e-HRM.
Industries like bank have larger stationary and clerical work can easily adopt. Industries like
building construction have non-stationary and non-clerical tasks cannot adopt e-HRM. The
industry of an organization reveals an effect on the adoption of e-HRM since industries with
mainly clerical and stationary tasks will more frequently adopt e-HRM.
The acceptance of employees to adopt e-HRM is crucial as individual qualification and
motivation vary with different demographical attributes. Age is considered in individual
adoption. Many organizations may not consider older age than younger age. In gender, female
has less IT experience so many female may not be considered in the adoption. The demography
of an organization reveals an effect on the adoption of e-HRM since organizations with a high
percentage of young, male, and educated employees will more frequently adopt e-HRM.
The increasing of telecommunication organization that helps HR and employees and personal
interaction is effectively and time consuming. Since the telecommunication employees have
basic technical qualifications and existence of basic technical equipment, e-HRM can be easily
implemented. The work organization of an organization reveals an effective on the adoption of
e-HRM since organizations with a high percentage of telecommuting employees will more
frequently adopt e-HRM.
The relation of permanent and temporary employees should bring relevant influences. The
temporary employees allow non-critical HR activities, compensation should provide to agency
and non-investment on training for temporary users. The employment structure of an
organization reveals an effect on the adoption of e-HRM since organizations with a high
percentage of temporary employees will more frequently adopt e-HRM.

The configuration of HRM of an organization approaches the institutionalization of HRM(formal

HR department), comprehensiveness of HRM (extent of performed HR functions) and strategic
orientation of HRM (Automation HR). The automation brings more beneficial to the HR
department and gains from administrative burdens. HR department should handle like
quantitative and qualitative challenges of e-HRM. The extent of performed HR functions may
influence the adoption. The configuration of HRM within an organization reveals an effect on
the adoption of e-HRM, since organizations with an institutionalized, comprehensive, and
strategic HRM will more frequently adopt e-HRM.
Contextual factors
The identification of contextual factors can be classified as the institutional openness of
contextual influences on e-HRM and the uniformity of contextual influences on e-HRM. The
institutional openness refers the fact of open concerning the employed HR methods, the covered
HR functions, and the included HR actors. The uniformity of influences exemplify from National
political, legal, and educational system. The institutional openness contextual factors can be
identified at present. The uniform influences focus towards the adoption of e-HRM. The
political, legal, and educational influences be given for IT exploitation and provide nation-wide
net infrastructures, basic IT education etc.

e-HR Issues

Some of the items which are very critical to be considering while implementing e-HR in any
organization are given below.
The structure of Human resource process or master planning in a company should be
properly formulated. If it is not done properly, HR systems become a difficult task or
frustrating for users.
Ensure the availability of enough resources like computer and centralized system for
each and every employee to utilize the e-HR system on regular basis. Otherwise
people need to use their personal computers at workplaces and it can demoralize the
users.
Training of employees is an important criteria in making successful e-HR system
especially when some users may be far less skilled with computer than others.
The use of e-HR system had a direct impact on the bottom line and made it more
competitive. So organization can get the opportunity of reducing manpower in HR. It
can leads to unhappiness over the staff.
HR professionals must have a good working relationship with their companies IT
professional otherwise there will be a chance of conflict between them during
implementation or integration of application.
Employees with little knowledge in computer may resist a move towards computer
based e-HR system. So the organization may need to take special care in encouraging
the users with an offer of incentives for using these programs.
Security of e-HR system is another issue to be considered and make the system as
non-threatening as possible and keep confidence.
Effective communication among employees is a necessary part of the process.
Communicate and educate them about the importance of the system.
The Identification of Investment required for software and hardware is one of the
main issues and also the return of investment or payback period will be unpredictable
and based on the estimation it will take one to three year.

Strategic of e-HR

There are two strategic perspectives way the HR can become more strategic .Both these can
provide useful frameworks for connecting HR system to the business strategy. The first one takes
an economic perspective of the organization to achieve more competitive advantage in an
external market environment. The second one is based on the Resources based view and it
focuses on the strategic resources and capabilities within the organization In companies
perspective, more attention is always given to applying an economic perspective towards the
externally focused business strategy than the resource based view. So the primary role is cost
reduction and it can be achieved by eliminating all HR transactional functions though e-HR
system.
The primary role of HR managers spend their most of time in administrative expert role, strategic
partner role and capability builder.
The HR functional activities like tracking of job requisitions, processing and managing payroll of
employees, benefits programs etc are under the role of administrative export role.
The strategic business partner role consists of planning of business, workforce and succession,
business management and compensation design to support the business strategies of the
company.
Building organization capabilities and human capital are primary deliverable in which most of
the time spending in the development of human capital and organizational capability.
Automating and streamlining of administrative transactions by implementing e-HRM system
make the HR function more strategic because those in the HR role can now spend more time on
strategic activities in a way of reduce the cost involvement, Lead time , Increase the efficiency of
HR services and communication, improve the productivity and finally able to operate at lower
cost.
Previously the cost factor was the strongest focus of e-HRM practice, but nowadays the focus is
not only towards cost but also more towards the integrative consequences of deploying e-HRM
in a Company. The cost reduction and transformation of all process of an HR department into a
strategic unit because of the introduction of e-HRM.

Strategies for enhancing the effectiveness and acceptance of eHR systems

The strategies can be used in several ways for enhancing the effectiveness and acceptance of her
systems. For example, organizations may allow applicants to apply for their job through web, but
use web based systems to give applicants to verify the requirements. The same way, the
organizations may use e-HR systems to gather performance data and enter performance reviews,
but managers may have face-to-face meeting with applicant to give rating.
The control perception be increased by electronic selection systems (e.g., touch screen system,
kiosks) that can also used by traditional users as well. These kinds of systems may allow
individuals who are not very efficient with computers access.
The data subjects (eg. Incumbents) have the ability to rectify invalid data in e-HR systems. This
strategies decrease the extent to e-HR systems privacy. The organization should minimize the
monitoring systems that could limit individual's freedom and control in organizations. The
organization may enhance both productivity and employee well being and merit the way
employees performed tasks. This will decrease employee's stress levels. The organizations would
expand definitions of performance to include incumbents which are measurable in positively.
The broader definition of performance consists quantity of work performed as well as increases
the welfare of the individual, group and organization. The study proves that the e-HR systems are
being used increasingly by organizations.

Conclusion

The research reviews the critical analysis of strengths, weakness and issues of electronic Human
Resource Management (e-HRM) and also conducts a brief analysis of whether the e-HR can
contribute towards HR to become more strategic. Based on this, some of the major implication
for current issues, benefits and future improvement required in e-HR as well as in HR could be
derived. e-HR may improve the employee productivity, employee morale, decision making,
information sharing, enhance innovation and speed up the product launching to market.
However, the cost involved in an implementation of e-HR is too high especially for the software,
hardware, training etc. It will be a big investment for an organization and the return on
investment will not be immediate and it is unpredictable. Finally, the e-HR is good for an
employer perspective but not good for an employee as it can end up in a less work force
environment.

Bibliography

http://www.ukessays.com/essays/human-resources/what-e-hr.php

https://ebstudies.wordpress.com/2012/10/08/e-hrm-paper-presentation/

http://smallbusiness.chron.com/technology-impact-hr-practices-37912.html

http://en.wikipedia.org/wiki/Electronic_human_resources

http://www.deminos.co.uk/articles/37-human-resources/55-e-human-resources

http://www.greentree.com/ehr-software

e-HR allied to ERP systems A Case Study

Founded in 1915, Lundbeck is Denmarks second largest pharmaceutical company, specialising

in the research, development, production, marketing and sale of pharmaceuticals for the
treatment of psychiatric and neurological diseases.
The Lundbeck Group has a turnover approaching 800m and Lundbeck UK is the largest
subsidiary in the group with staff of over 260.
Lundbeck UK uses SAP for Finance, Supply Chain and Human Resources/Payroll, and views the
software as a strategic component of its business, playing a key role in enabling the company to
develop and compete successfully in its chosen markets.
The growth of the UK operation in recent years has placed increasing demands on Lundbecks
HR department and the company was keen to find a solution within the SAP product range to
ease the HR workload, with a view to retaining the lean HR management structure and
automating/streamlining processes.
SAPs Employee Self-Service (ESS) solution was identified as a potential response to
Lundbecks needs and the company asked Absoft, as their SAP Partner, to advise on its
suitability.
What is ESS?
ESS is a web-based SAP solution designed to remove many of the repetitive tasks from the HR
function by allowing employees direct access to HR information and services. Employees are
empowered to be responsible for their own personal information, which is updated via a
web-browser interface, directly in the SAP system, explained Susie Davison, Consultancy
Director, Absoft.
As well as presenting users with general HR information, ESS can also provide access to a wide
range of HR-related facilities, for example: managing business travel, viewing/enrolling in
benefit plans, maintaining skills profiles and requesting and booking training courses.
Absofts feasibility study confirmed that ESS would meet the vast majority of Lundbecks HR
needs and the proposed project plan was approved for implementation.
Implementation
The first stage of the ESS project required the upgrade of Lundbecks SAP system from release
4.6B to 4.6C, together with the installation of Workplace. A small Absoft team of technical and
functional consultants was assembled to undertake this work, paving the way for ESS to be
installed and configured.

Lundbeck then assigned a project manager from its HR department to work with Absoft on ESS,
primarily to clarify requirements and undertake testing.
This persons role was key to the orientation of the out of the box ESS. The standard ESS
uses IT and SAP specific jargon. It was not user friendly and needed modification. We
worked with Absoft to give it a Lundbeck look, essential if we were to encourage staff to use it,
said the Lundbeck HR officer.
Absofts ESS project team included HR, Internet and ABAP consultants who worked closely
together and with Lundbeck to produce the look and feel of the system in line with Lundbecks
needs.
Lundbecks ESS system accessible via the companys intranet was set up to include
personal information, holiday requests and approvals, payslips, a company directory, a
My First Days section for new employees and a skills profile.
We personalised ESS, said the HR officer. When people put in their passwords, ESS
welcomes them as individuals and it stores information specifically relevant to the user such as
bank details, healthcare and dental cover, and payslips.
Another task for Absoft was to build in a workflow feature to ESS. Requests requiring
authorisation, such as holidays, need to go direct to line managers and so we had to add the
means for that to happen, said Davison.
The system was piloted with a small group of employees and the feedback gained was used to
fine-tune the system prior to roll out to all personnel. Lundbeck developed and undertook
their own comprehensive education programme to ensure users quickly became familiar
with the system and its benefits, said Davison.
The majority of Lundbeck staff in the UK are involved in marketing and sales, and are located
throughout the country. We held 16 meetings to introduce ESS and the emphasis was then on
discouraging contact with head office every time there was a change in their details or they had a
request, said the HR officer. This has been hugely successful and all staff now use ESS
routinely.
Further Development
ESS went live at Lundbeck in September 2002 and in the time since then there have been many
improvements.
It is a feature of the introduction of ESS that we are always seeing ways in which it can improve
HR management, said the HR officer. It has meant continuous involvement for Absoft, which
has implemented the improvements.
A managers menu has been introduced to give mangers a collective view of their teams, which
typically consist of 10 employees. This was not in the original ESS package, but Absoft created

the function so that managers can see things like holiday allocations, days of sick, etc for all
their team, said the HR officer.
When annual leave is requested, it automatically generates an e-mail for managers whereas in
the original ESS package it would simply sit in an inbox.
Benefits
The implementation of ESS has resulted in significant benefits for Lundbeck, for example:
HR staff are freed from time-consuming manual tasks and can spend more time on
other, more value added activities

The accuracy of employee information has improved

A comprehensive weekly report ensures that the HR team remains abreast of and can
monitor changes made by employees
The amount of HR-related paperwork generated by Lundbeck has been significantly
reduced (for example: changes to personal details are made online; holidays are
requested and approved online; employees payslips are published online)
The My First Days section of ESS has been well received by new employees as an
effective component of Lundbecks induction process.
ESS provides Lundbeck with a highly efficient and effective approach to recording and
managing HR information, concludes the HR officer. Benefits are visible at all levels of the
company. The online and self-service aspects of the system allow the HR team to achieve
greater levels of productivity, focusing less on administrative tasks and more on specialist HR
and strategic development issues.
Similarly managers are able to minimise the time they spend on administration. Employees
across the board benefit from more efficient processes and control over their personal
information.