PROJECT REPORT

ON

NEW TECHNIQUES IN HUMAN RESOURCE

MANAGEMENT

Submitted in partial fulfillment for the requirement of degree in

Master of Business Administration (MBA)

Of

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

(Session 2016-18)

SUBMITTED TO: SUBMITTED BY:

controller of examination Name: Kajal Chauhan

(M.D university) Class: MBA 4TH SEM

Reg. No. :

Roll No:

DAV Institute Of Management

NH-3, N.I.T., Faridabad (Haryana)

 PREFACE

Contribution of Human Resource Development towards Organizational Success consists of all

activities by which executive learn to improve their behavior and performance.

It is a systematic process of learning and growth by which managerial personnel gain and apply
knowledge, skills, and attitudes effectively and efficiently.

It is and education process through which executives learns conceptual and theoretical
knowledge and managerial skills in an organized manner.

The executive development has become one of the most important and complex task of human
resource management. The success and growth of an organization depends largely upon the
caliber and performance of its executives. Therefore, every organization must improve the
quality of its managers. It is essential to train and develop executive who can succeed as the
managers of today.
 ACKNOWLEDGEMENT

“Those who are remembered are the ones who render help without expectations. We were
fortunate to have come across such fine people”.

I KAJAL CHAUHAN of MBA 4TH SEMESTER am having immense pleasure in bringing out
of the Project Report on the topic “NEW TECHNIQUES IN HUMAN RESOURCE
MANAGEMENT” under the guidance of my teacher Mrs. Juhi Special reference of the
contribution & whole hearted support of managers & all other staff & department of the carrier
who truly reflect their deep insight into the project & the professional touch which is their
benchmark.
 DECLARATION

I hereby declare that, the project entitled "A BRIFE STUDY ON NEW TECHNIQUES IN
HRM " assigned to me for the partial fulfillment of MBA degree from Maharshi Dayanand
University Rohtak. The work is originally completed by me and the information provided in the
study is authentic to the best of my knowledge.

This study has not been submitted to any other institution or university for the award of any other
degree.

Kajal chauahn

MBA 4TH SEM

 TABLE OF CONTENTS

S.NO CHAPTER PAGE NO.

1. INTRODUCTION

2. INDUSTRY PROFILE

3. REVIEW OF LITERATURE

4. OBJECTIVE & SCOPE OF STUDY

5. RESEARCH METHODOLOGY

6. DATA ANALYSIS & INTERPRETATION

7. RECOMMENDATION & SUGGESTION

8. CONCLUSION

9. ANNEXURE
 Questionnaire
10. BIBLIOGRAHY
 CHAPTER-1
INTRODUCTION
INTRODUCTION
“Technological optimistic voices want us to believe that, from a technical perspective, the IT
possibilities for HRM are endless: in principal all HR processes can be supported by IT. E-HRM
is the relatively new term for this IT supported HRM, especially through the use of web
technology”. For many functions, HR transformation is currently one of their critical
deliverables. As with all change, there are huge possibilities and exciting opportunities that lie at
the end of the implementation journey. However, the obstacles stand in the way of effective
implementation are considerable, and many HR functions lose their way or find that they have
failed to deliver the outcomes that were initially anticipated. One of the key themes is that the
advances around e-HR provide organizations with great opportunities to rethink the way HR
management is undertaken in organizations and yet technology driven change is often
disconnected from other changes that are needed around capabilities, culture and structure. To
transform HR effectively, change needs to be integrated. There needs to be an investment in e-
HR, absolutely, but technology is not the end in itself. Technology is only a tool, an enabler,
which supports more effective ways of working and of managing the human capital component
of business organizations. Before any technology can be effectively deployed, the fundamental
approaches to people management must be transformed. In most cases, this involves
transforming the way HR management is done in organizations and the repositioning of the HR
function: its ways of working as well as the ways in which the HR function interacts with the
wider organization and external providers.
Like all professions, Human Resource Management (HRM) has been increasingly affected by
the ongoing emergence of new technologies. For instance, the first introduction of the “Human
Resource Information System” (HRIS) some two decades ago has brought about greater
efficiency and automation for people management. With the great leap forward of web
technologies during the past few years, we have witnessed the birth of Electronic Human
Resource Management (e-HRM) which, as indicated by experts, is a much more powerful
enabler in transforming the role of Human Resource (HR) from an administrator to the more
value – adding role of a business partner. But of course, the availability of an enabler doesn’t
guarantee the successful transformation.
1.1 THE TECHNOLOGY CHALLENGE

Technology advancement is one of the powerful driving forces. It has reshaped the way we play,
communicate, live, work and also the way business is conducted. The technology and digital
business communications improvements have changed various organizational activities. The way
that organization’s perform their task is currently associated to contemporary concepts such as
digital business, e-commerce, customer relationship management, human resource management
etc. Nowadays, digital business services are being considered as pertinent and prominent parts of
the organization. In other words, the trend of business in service industry is moving towards
knowledge or digital based economy. Computers have simplified the task of analyzing vast
amounts of data and they can be invaluable aids in HR management, from payroll processing to
record retention. With computer hardware, software, and data bases, organizations can keep
records and information better as well as retrieve them with greater ease.

Although the “IT bubble” has burst, the web or internet technologies continue to fundamentally
transform our world, driving globalization to a new horizon. There are now several major players
that offer enterprise-wide technology solutions. This has enabled the HR function to make its
business case for technological investment alongside other support functions, such as finance and
procurement. Although there is still likely to be debate in each organization concerning the
extent to which e-HR will be adopted, there is now sufficient critical mass to give organizations
genuine cost – effective alternatives. Additionally, the core HR Information System (HRIS)
backbone offers in-built “best practices” in HR processes and the ability to apply solutions
globally. HR not only has the opportunity to utilize technology, but now the means to make a
convincing business case for this investment. New technologies allow training to occur at any
time and any place. New technology includes the use of computers, software, internet, e-mail,
telecommunications, CD-ROMs and DVDs for a wide variety of applications. The internet and
the web allow employees to send and receive information as well as to locate and gather
resources, including software, reports, photos and videos. The internet gives employees instant
access to experts whom they can communicate with and to newsgroups, which are bulletin
boards dedicated to specific areas of interest, where employees can read post and respond to
messages and articles.
Pursuant to the development in e-commerce and digital business, it is inevitable for HRM
functions to be taken into that sphere. Wright and Dyer (2000) concur that new challenges lie
ahead for human resources (HR) practitioners in the advent of digital business era. Technology is
pushing the boundaries of artificial intelligence, speech synthesis, wireless communications, and
networked virtual reality. Realistic graphics, dialogue, and sensory cues can now be stored onto
tiny, inexpensive computer chips. These advances have the potential for freeing workers from
going to a specific location to work and from traditional work schedules. But at the same time
technologies may result in employees being on call twenty – four hours a day, seven days a
week. Many companies are taking steps to provide more flexible work schedules to protect
employees’ free time and to more productively use employees’ work time.

1.2 INTRODUCING E-HRM

The HR function of an organization is responsible for complying with the HR needs of the
organization. As with other business functions, strategies, policies and practices have to be
implemented to ensure smooth operation of the organization and prepare the organization in such
a way that smooth operation can be guaranteed in the nearby future. Using e-HRM technology is
a way of implementing these HR strategies, policies and practices. The e-HRM technology
supports the HR function to comply with the HR needs of the organization through web
technology- based channels. The e-HRM technology provides a portal which enables managers,
employees and HR professionals to view extract or alter information which is necessary for
managing the HR of the organization. Lawler III (2005) suggests that e-HRM and its self-service
characteristics can be the cheapest and fasted way to provide specific HR activities. 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. For instance, 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 or her employees. With a click of
the mouse, the decision is recorded and departments are notified. Hours of processing are
reduced to minutes, and much paper work is avoided by the use of this technology. With e-HRM
employees control their own personal information. They can update records when their situations
change and make many decisions on their own, consulting HR professionals only when they
deem it necessary. For instance, an employee who wishes to increase investments in a retirement
plan can do so from work or home using the internet. Employees may also, for instance,
participate in a training programmed at home after working hours. Self Service for Managers
(MSS) and Employees (ESS) are the key concepts of the technologies.

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 paper work, 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.
The use of e-HRM technology, as it is a way to implement HR strategies, policies and practices,
is expected to have an impact on how the HR function operates. Moreover, it is aimed to
improve the HR system. The impact of e-HRM technology on the HR system however, is
expected to be dependent on the way the technology is used. It is dependent on what and how the
technology supports the HR function but also on how the technology is constructed. This is on its
turn affected by what the organization is trying to achieve with the technology, or in other words,
what the e-HRM goals of the organization are. The e-HRM goals and the actual use of the e-
HRM technology thus have an impact on the HR system. Therefore, these aspects will all be
considered during this research.

1.3 WHAT IS HUMAN RESOURCES MANAGEMENT?

Human Resources Management is management functions that helps managers’ recruit, select,
train and develop members for an organization. Obviously Human Resources Management is
concerned with the peoples dimension in organizations. HRM may be defined as programmers,
policies and practices for managing workforce of an organization by human resources reveal
total skill, knowledge, talents, creative ability and aptitudes of people in the workplace along
with the approaches, beliefs, values and aptitudes of the individuals of an organization.
1.4 HUMAN RESOURCES MANAGEMENT (HRM) AND E-HRM:

HRM: has developed in recent years as a broad encompassing field of study that incorporates
and synthesizes elements from personnel management, organisational behaviour and industrial
and labour relatives, building broader concepts from a variety of cognate disciplines including
economics, law psychology and sociology amongst others (Poole & Warner,2001:xvi). Thus it
has become a pervasive and influential approach to the management of employment in a wide
range of market economies.

E-HRM: Electronic Human Resource Management (e-HRM) provides the information required
to manage HR processes. These may be core employee database and payroll systems but can be
extended to include such systems as e-recruitment, e-learning, performance management and
reward. The system may be web-based, enabling access to be remote or online and at any time.
Although technology allows having digital services for HRM which we refer as virtual HRM,
this type of services are coming with four significant pressures (Lepak & Snell 1998).

They are:
 Focusing on strategic questions of HRM
 flexibility in terms of policy making and practices
 efficiency and awareness of cost
 service oriented towards management and employees

Such goals are pertinent to the changing face of employment relationship whereby the employees
today may wish to steer their own career paths.
1.5 MEANING OF E-HRM

People mean different things by the term “e-HRM”. It is a web-based solution that takes
advantage of the latest web application technology to deliver an online real-time Human
Resource Management Solution. It is comprehensive but easy to use, feature-rich yet flexible
enough to be tailored to your specific needs. It also refers to the processing and transmission of
digitized information used in HRM, including text, sound, and visual images, from one computer
or electronic device to another. It will be able to meet the demands of today's Human Resource
Management.

Typically, the term e-HR is used to describe technology’s role in enabling the transformation of
solely HR activity. Instead of a centralized personnel team handling everyday tasks such as
approving pay rises, sorting out training and checking holiday entitlements, these can be handled
by the employees themselves or their line manager. Crucially, the adoption of e-HR seeks to
minimize or eliminate intervention from HR staff, allowing managers and employees to perform
HR tasks directly with the self service tools. These can contrast with the shared service center
environment, where the service would normally be expected to be delivered by a customer
service operative or other category of HR staff.

Before starting to define e-HRM, it is also important to identify terms that possibly carry similar
meanings to the term e-HRM, Wright and Dyer (2000). In addition to e-HR and e-HRM terms
are used such as virtual HR(M), HR intranet, web-based HR, computer based human resource
information systems (CHRIS) and HR portals. We are excluding HR information systems
(HRIS), since there is a fundamental difference between HRIS and e-HR in that basically HRIS
are directed towards the HR department itself. Users of these systems are mainly HR staff. These
types of systems aim to improve the processes within the HR department itself, in order to
improve the service towards the business. With e-HR, the target group is not the HR staff but
people outside this department: the employees and management. HRM services are being offered
through an internet for use by employees. The difference between HRIS and e-HR can be
identified as the switch from the automation of HR services towards technological support of
information on HR services. Technically speaking it can be said that e-HR is the technical
unlocking of HRIS for all employees of an organization.

1.6 DEFINITIONS

 As defined by Kettley P and Reilly P (2003), a Computerized Human Resource Information

System (CHRIS) consists of “a fully integrated, organization-wide network of HR related
data, information, services, databases, tools and transactions.” Such a system can be
described as e-HR, meaning the application of conventional, web and voice technologies to
improve the HR administration, transactions and process performance.

 As stated by Ernst Biesalski “Electronic-Human Resource Management (E-HRM) is a web

based tool to automate and support HR processes. The implementation of e-HRM is an
opportunity to delegate the data entry to the employees. E-HRM facilitates the usage of HR
market places (e-recruitment) and offers more self-service to the employees. EHRM is a
collection of many different technologies.”

 Mary Gowan has defined Electronic Human Resource Management System (E-HRM
System) as a web-based solution that takes advantage of the latest web application
technology to deliver an online real-time human resource management solution. It is
comprehensive but easy to use, feature-rich yet flexible enough to be tailored to your specific
needs.
 As said by MS Kauffman “An automation system is a precisely planned change in a
physical or administrative task utilizing a new process, method, or machine that increases
productivity, quality and profit while providing methodological control and analysis. The
value of system automation is in its ability to improve efficiency; reduce wasted resources
associated with rejects or errors; increase consistency, quality and customer satisfaction; and
maximize profit.”
 Broderick and Boudreau (1992) defined Human Resource Information Systems (HRIS) as
the “composite to data basis computer applications and hardware and software that are used
to collect or record, store, manage, deliver, present and manipulate data for human
resources.”

 According to Ruel, Bondarouk and Looise (2002:1), “e-HRM is a way of implementing

HR strategies, policies, and practices in organizations through a conscious and directed
support of and/or with the full use of web-technology-based channels.”

1.7 OBJECTIVES

E-HRM is designed to achieve the following objectives

 To offer an adequate, comprehensive and on-going information system about people and jobs
at a reasonable cost
 To provide support for future planning and also for policy formulations;
 To facilitate monitoring of human resources demand and supply imbalances
 To automate employee related information
 To enable faster response to employee related services and faster HR related decisions and
 To offer data security and personal privacy. Data security is a technical problem that can
be dealt with in several ways, including passwords and elaborate codes. In the information
age personal privacy is both an ethical and moral issue.
1.8 SCOPE OF E-HRM

 A decisive step towards a paperless office

 Higher speed of retrieval and processing of data
 Increased access to HR data and ease in classifying and reclassifying data
 Collection of information as the basis for improving the strategic orientation of HRM
 More consistent and higher accuracy of information/report generated
 Fast response to answer queries
 A higher internal profile for HR leading to better work culture
 Establishing of streamlined, standardized and systematic procedures
 More transparency in the system
 Cost savings achievable through process improvements and due to reduction in duplication of
efforts
 Significant reduction of administrative burden
 Adaptability to any client and facilitating management
 Integral support for the management of human resources and all other basic and support
processes within the company
 A more dynamic workflow in the business process, productivity and employee satisfaction.

1.9 FUNCTIONS OF E-HRM

Resource Management:

 Storage of applicants details

 Retrieval and amendment of those details
 Matching CVs to person specifications for short listing purposes
 Link with internet recruiting processes
 Letter writing, acknowledgements, invitations to interview, offers and rejections
 Management reports, analysis of response by media and monitoring recruitment costs
 Evaluating applicants and employees
 Selecting placing, promoting, terminating and transferring employees
 Analyzing and designing jobs.

Compensation and Reward Management:

 Analyze and report on average pay or pay distribution by jog, grade, age or length of service
 Assist in job evaluation;
 Forecast future payroll costs on the basis of assumptions about members, promotions and pay
levels
 Administer pay reviews, producing review forms, analyzing proposals against the budgets
and calculating the cost of performance related pay awards in accordance with different
assumptions about amounts and the distribution of awards within a budget
 Provide information to line managers which will guide them to do their pay decisions
 Generate instructions to adjust pay as well as letters to individuals informing them of their
increases;
 Managing employee wage and benefit plans.

Performance Management:

 Generating forms
 Analyzing and reporting on the result of performance reviews showing the distribution of
people with different degrees of potential or performing at different levels;
 Highlighting individuals with particular skills or special promise
 Writing role definitions
 Generating employee opinion surveys online.
Training and Development:

 Training and developing employees

 Storing e-learning modules on the database which enables trainers to select an appropriate
module or mix of modules to meet a specified learning need
 Analyzing the training recommendations contained in performance review reports to identify
collective and individual training needs;
 Identifying suitable training courses to meet training needs
 Making arrangements for off the job courses
 Informing employees about the arrangements for courses
 Handling correspondence about training courses
 Storing data on standard or individually tailored induction, continuation or development
training programmes, including syllabus, routings, responsibilities for giving training, test
procedures and progress reporting
 Generating instructions and notes for guidance for all concerned with providing or
undergoing on-the-job training programmes
 Storing progress reports and monitoring achievements against training objectives
 Producing reports summarizing current and projected training activities and calculating the
output of training programmes
 Recording and monitoring training expenditure against budget.

Employee Relations:

 Promoting employer brand

 Providing high standards of safety and welfare facilities to employees through easy
accessible e-HR solutions
 Frame employment policies online
 Provide a network of internal communication
 Consultation and negotiation facilities for employees.
1.10 TYPES OF E-HRM

E-HRM is not a specific stage in the development of HRM, but a choice for an approach to
HRM. Wright and Dyer (2000) distinguish three areas of HRM where organizations can choose
to ‘offer’ HR services face-to-face or through an electronic means: transactional HRM,
traditional HRM, and transformational HRM. Lepak and Snell (1998) make a similar distinction,
namely operational HRM, relational HRM and transformational HRM.

The first area, operational HRM, concerns the basic HR activities in the administrative area. One
could think of salary administration (payroll) and personnel data administration. The second
area, relational HRM, concerns more advanced HRM activities. The emphasis here is not on
administering, but on HR tools that support basic business processes such as recruiting and the
selection of new personnel, training, performance management and appraisal, and rewards.
Transformational HRM, the third area concerns HRM activities with a strategic character. Here
we are talking about activities regarding organizational change processes, strategic re-
orientation, strategic competence management, and strategic knowledge management.

The areas mentioned could also be considered as types of HRM that can be observed in practice.
The operational type of HRM provides the choice between asking employees to keep their own
personal data up-to-date through an HR website or to have an administrative force in place to do
this. For relational HRM there is the choice between supporting recruitment and selection
through a web-based application or using a paper-based approach (through advertisements,
paper-based application forms and letters etc.) Finally, in terms of transformational HRM, it is
possible to create a change-ready workforce through an integrated set of web-based tools that
enables the workforce to develop in line with the company’s strategic choices or to have paper
based materials. In cases where an organization consciously and in a focused way chooses to put
in place web technology for HRM purposes, based upon the idea that management and
employees should play an active role in carrying out HR work, we can speak of e- HRM.
 METHODS OF E-HRM

Analysis and design of work:-

Employees in geographically dispersed location can work together in virtual teams using video,
e-mail and the internet.

E-Recruiting:-

Post job openings online, candidates can apply for jobs online.

E-Selection:-

Online simulations, including tests, videos, e-mail, can measure candidates abilities to deal with
real-life business challenges.

E-Training:-

Online learning can bring training to employees anywhere, anytime.

E-Compensation and benefits:-

Employees can review salary and bonus details and seek information about and enroll in benefits
plans.

E-Performance management:-

Technology may facilitate measuring an individual’s performance via computer monitoring

activities. The greatest benefits of appraisal software are the elimination of paperwork.

E-Learning:-

It refers to the use of internet or an organizational intranet to conduct training on-line.

Information supporting workforce planning:-

To create an HR information hub for the whole organization, this facilitates effective people-to-
people and people-to-information contacts.

Record Keeping:-
To ensure efficient collection, storage and distribution of HR-related information in a paperless
work environment.

1.11 BENEFITS OF E-HRM

The main benefits of e-HRM are an increase of quality and pace, because the existing
administrative processes were slow and inefficient conditional upon mainly paper-based
processes.

 Standardization: By standardizing the system used within the group and by providing
employees with direct access to records, particularly leave records, the company can achieve
a significant reduction in employee queries and reduce the need for HR to undertake data
entry of employee records.

 Ease of recruitment, selection and assessment: e-Recruitment can be one of HR’s

nightmares. With e-recruitment the company gets an additional possibility besides the normal
application by paper to recruit people over the web in an online-application process.
Although this, and like processes, will always need significant human intervention. E-HR
systems can streamline the process and reduce errors.

 Ease of administering employee records: Whether be it leaves, benefits, personal details,

accident and discipline reports, etc., it is generally accepted that once everyone can overcome
the initial it phobia, HR and employees will experience fewer headaches and efficiency will
rapidly increase.

 Reductions to cost, time and labour: Reduced duplication, reduced time spent fixing errors,
reduced labour costs through ESS, reduced or no hard-copy entry. Not only manpower can be
saved, the processing time can also be shortened. With this e-HRM reaches the prime
objective of cost effectiveness.
 Access to ESS training enrolment and self development: e-Training can enable employees
to search for and enroll in training programmes on-line and validating course availability.
This can streamline the training administration process enabling employees to access
computer based training. Cost and pace can be individualized as well.

 Cost and ESS: ESS reduced the workload of HR department by more than 50%, for instance
in the traditional method the employee has to type in a formal leave application get approved
from his/her direct boss who will send it to the HR department for further approval which
would consume lot of time to be processed. On the other hand, with eleave, the employee
needs only to log in and make his/her leave application and his/her boss will be alerted to
approve. Upon approval the leave balance is automatically updated and this is just one
aspect.

 Location and timeliness: With ESS, the employee could log in online anywhere and
anytime without being in the office and without the leave card could be sitting at the boss’
table for a few days, lost or buried.

1.12 LIMITATIONS OF E-HRM

While the Electronic Human Resource Management described earlier has many benefits, it also
has many problems which need to be addressed to before it can really be useful. Some of them

are described below:

 It can be threatening and inconvenient to those who are not comfortable with computers.
 For computerized information to be useful at all levels there is an urgent need for large scale
computer literacy.
 Often the personnel designing e-HRM do not have a thorough understanding of what
constitutes quality information to the uses. Thus, the users do not get exactly the reports
 which they want. Producing information that is of quality to the users requires an investment
in time, effort and communication on the part of e-HRM managers.
 Computers cannot substitute human being. Human intervention will always be necessary.
Computers can at best aid the human effort. The quality of response is dependent upon the
accuracy of data input and queries fired. The “garbage-in garbage-out” is the key expression
in any computerized system.
 There is low Internet penetration and no access and lack of awareness of internet in many
locations across India.
 Organization cannot be dependant totally on the online Human resource methods.
 Negligence of personal interaction
 Data security and confidentiality
 Require online updating
 It can be expensive in terms of finance and manpower requirements.
 CHAPTER 2

INDUSTRY PROFILE
Introduction:
Indian banking is the lifeline of the nation and its people. Banking has helped in developing the
vital sectors of the economy and usher in a new dawn of progress on the Indian horizon. The
sector has translated the hopes and aspirations of millions of people into reality. But to do so, it
has had to control miles and miles of difficult terrain, suffer the indignities of foreign rule and
the pangs of partition. Today, Indian banks can confidently compete with modern banks of the
world.
Before the 20th century, usury, or lending money at a high rate of interest, was widely prevalent
in rural India. Entry of Joint stock banks and development of Cooperative movement have taken
over a good deal of business from the hands of the Indian money lender, who although still exist,
have lost his menacing teeth. In the Indian Banking System, Cooperative banks exist side by side
with commercial banks and play a supplementary role in providing need-based finance,
especially for agricultural and agriculture-based operations including farming, cattle, milk,
hatchery, personal finance etc. along with some small industries and self-employment driven
activities.
Generally, co-operative banks are governed by the respective co-operative acts of state
governments. But, since banks began to be regulated by the RBI after 1st March 1966, these
banks are also regulated by the RBI after amendment to the Banking Regulation Act 1949. The
Reserve Bank is responsible for licensing of banks and branches, and it also regulates credit
limits to state co-operative banks on behalf of primary co-operative banks for financing SSI
units.
Banking in India originated in the first decade of 18th century with The General Bank of India
coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are
now defunct. After this, the Indian government established three presidency banks in India. The
first of three was the Bank of Bengal, which obtains charter in 1809, the other two presidency
bank, viz., the Bank of Bombay and the Bank of Madras, were established in 1840 and
1843,respectively. The three presidency banks were subsequently amalgamated into the Imperial
Bank of India (IBI) under the Imperial Bank of India Act, 1920 – which is now known as the
State Bank of India.
Current Scenario:
The industry is currently in a transition phase. On the one hand, the PSBs, which are the
mainstay of the Indian Banking system are in the process of shedding their flab in terms of
excessive manpower, excessive non Performing Assets (Npas) and excessive governmental
equity, while on the other hand the private sector banks are consolidating themselves through
mergers and acquisitions.
PSBs, which currently account for more than 78 percent of total banking industry assets are
saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional
sources, lack of modern technology and a massive workforce while the new private sector banks
are forging ahead and rewriting the traditional banking business model by way of their sheer
innovation and service. The PSBs are of course currently working out challenging strategies even
as 20 percent of their massive employee strength has dwindled in the wake of the successful
Voluntary Retirement Schemes (VRS) schemes.

The private players however cannot match the PSB‟s great reach, great size and access to low
cost deposits. Therefore one of the means for them to combat the PSBs has been through the
merger and acquisition (M& A) route. Over the last two years, the industry has witnessed several
such instances. For instance, Hdfc Bank‟s merger with Times Bank Icici Bank‟s acquisition of
ITC Classic, Anagram Finance and Bank of Madura. Centurion Bank, Indusind Bank, Bank of
Punjab, Vysya Bank are said to be on the lookout. The UTI bank- Global Trust Bank merger
however opened a pandora‟s box and brought about the realization that all was not well in the
functioning of many of the private sector banks.

Private sector Banks have pioneered internet banking, phone banking, anywhere banking, mobile
banking, debit cards, Automatic Teller Machines (ATMs) and combined various other services
and integrated them into the mainstream banking arena, while the PSBs are still grappling with
disgruntled employees in the aftermath of successful VRS schemes. Also, following India‟s
commitment to the W To agreement in respect of the services sector, foreign banks, including
both new and the existing ones, have been permitted to open up to 12 branches a year with effect
from 1998-99 as against the earlier stipulation of 8 branches. Talks of government diluting their
equity from 51 percent to 33 percent in November 2000 has also opened up a new opportunity
for the takeover of even the PSBs. The FDI rules being more rationalized in Q1FY02 may also
pave the way for foreign banks taking the M& A route to acquire willing Indian partners.
Meanwhile the economic and corporate sector slowdown has led to an increasing number of
banks focusing on the retail segment. Many of them are also entering the new vistas of
Insurance. Banks with their phenomenal reach and a regular interface with the retail investor are
the best placed to enter into the insurance sector. Banks in India have been allowed to provide
fee-based insurance services without risk participation, invest in an insurance company for
providing infrastructure and services support and set up of a separate joint venture insurance
company with risk participation.
Technology In Banking
Technology will bring fundamental shift in the functioning of banks. It would not only help them
bring improvements in their internal functioning but also enable them to provide better customer
service. Technology will break all boundaries and encourage cross border banking business.
Banks would have to undertake extensive Business Process Re-Engineering and tackle issues
like a) how best to deliver products and services to customers b) designing an appropriate
organizational model to fully capture the benefits of technology and business process changes
brought about. c) how to exploit technology for deriving economies of scale and how to create
cost efficiencies, and d) how to create a customer - centric operation model.

Entry of ATMs has changed the profile of front offices in bank branches. Customers no longer
need to visit branches for their day to day banking transactions like cash deposits, withdrawals,
cheque collection, balance enquiry etc. E-banking and Internet banking have opened new
avenues in “convenience banking”. Internet banking has also led to reduction in transaction costs
for banks to about a tenth of branch banking.

Technology solutions would make flow of information much faster, more accurate and enable
quicker analysis of data received. This would make the decision making process faster and more
efficient. For the Banks, this would also enable development of appraisal and monitoring tools
which would make credit management much more effective. The result would be a definite
reduction in transaction costs, the benefits of which would be shared between banks and
customers.
 While application of technology would help banks reduce their operating costs in the long run,
the initial investments would be sizeable. IT spent by banking and financial services industry in
USA is approximately 7% of the revenue as against around 1% by Indian Banks. With greater
use of technology solutions, we expect IT spending of Indian banking system to go up
significantly.

One area where the banking system can reduce the investment costs in technology applications
is by sharing of facilities. We are already seeing banks coming together to share ATM Networks.
Similarly, in the coming years, we expect to see banks and FIs coming together to share facilities
in the area of payment and settlement, back office processing, data warehousing, etc. While
dealing with technology, banks will have to deal with attendant operational risks. This would be
a critical area the Bank management will have to deal with in future.

Payment and Settlement system is the backbone of any financial market place.

The present Payment and Settlement systems such as Structured Financial Messaging System
(SFMS), Centralised Funds Management System (CFMS), Centralised Funds Transfer System
(CFTS) and Real Time Gross Settlement System (RTGS) will undergo further fine-tuning to
meet international standards. Needless to add, necessary security checks and controls will have
to be in place. In this regard, Institutions such as IDRBT will have a greater role to play.

ICICI BANK
ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial
institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the
public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an
equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby
becoming the first Indian company and the first bank or financial institution from non-Japan Asia
to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an all-
stock amalgamation. Later in the year and the next fiscal year, the bank made secondary market
sales to institutional investors.
With a change in the corporate structure and the budding competition in the Indian Banking
industry, the management of both ICICI and ICICI Bank were of the opinion that a merger
between the two entities would prove to be an essential step. It was in 2001 that the Boards of
Directors of ICICI and ICICI Bank sanctioned the amalgamation of ICICI and two of its wholly-
owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, with ICICI Bank. In the following year, the merger was approved by its
shareholders, the High Court of Gujarat at Ahmedabad as well as the High Court of Judicature at
Mumbai and the Reserve Bank of India.

CURRENT SCENARIO:
Financial performance:
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81
billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year
ended March 31, 2010. The Bank has a network of 2,016 branches and about 5,219 ATMs in
India and presence in 18 countries.
ICICI Bank offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialized subsidiaries in the
areas of investment banking, life and non-life insurance, venture capital and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in
United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International
Finance Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in
Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock
Exchange and the National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). Established in 1994,
ICICI Bank is today the second largest bank in India and among the top 150 in the world. In less
than a decade, the bank has become a universal bank offering a well diversified portfolio of
financial services. It currently has assets of over US$ 79 billion and a market capitalization of
US$ 9 billion and services over 14 million customers through a network of about 950 branches,
3300 ATM's and a 3200 seat call center (as of 2007). The hallmark of this exponential growth is
ICICI Bank‟s unwavering focus on technology.
 CHAPTER-3

REVIEW OF LITERATURE
Literature review examines recent research studies, company data, or industry reports that act as
a basis for the proposed study.
 Broderick & Boudreau [1992], mentioned Human Resource Systems have been
acknowledged as important inputs of corporate decisions making process. Operational and
strategic business objectives are now not being considered in isolation of HR objectives.
Hence, Human Resource Systems are now enterprise-wide decision support systems.
Traditionally, e-HR is considered as automated record keeping of employees and
computerization of their payroll. However, it is now well established with HR managers with
information systems can play a greater role beyond their administrative role. In fact they are
now being able to play even a strategic support role. Technology not only substitutes
manpower, they also substantially contribute to efficiency, automating representative
operations. Dealing with human resource information manually hardly allows any
complexity to human resource professionals to address monitorial issues of human resource
management.

 Noe, Hollenbeck, Gerhart And Wright [2000] stated that ‘HR functions can become
critical partners in driving success, but to do so requires that HR changes its focus, its role,
and its delivery systems’. Electronic human resource management (e-HRM) refers to the
processing and transmission of digitized information used in HRM, including text, sound,
and visual images, from one computer to another electronic device. E-HRM has the potential
to change all traditional human resource management functions. Employees do not have to be
in the same geographic areas to work together. Use of the internet lets companies search for
talent without geographic limitations. Recruiting can include online job postings,
applications, and candidate screening from the company’s website or the websites of
companies that specialize in online recruiting, such as monster.com or hotjobs.com.
Employees from different geographical locations can all receive the same training over the
company’s intranet. It also can increase the speed with which employees can bring a product
to market by facilitating communications between employees on virtual teams using internet
discussion forums, video and audio-conferencing, and global-scheduling.
 Mark Doughty and Simon Pugh [2000] stated that, the HR software market there are a
myriad of HR systems, payroll, training administration, 360 degree feedback, psychological
testing and competency software tools-typically operating in their own software fiefdoms.
Evidence suggests that most organizations fail to recognize that nearly all HR software on the
market today is at the foundation level of e-HR. “very few organizations have reached the
strategic level of e-HR.” This involves the development and deployment of tasks that allow
managers, employees and HR to use the massive amount of data created and housed within
the foundation and service levels of emerging internet technology. Perhaps it could be argued
that instead of wasting money on lots of paper, HR is now wasting money on non-strategic
databases. More importantly, the buyers of this software (i.e. HR) fail to realize that most HR
software solutions available today are based on client server (old) technology. People soft
(v8.1) the world’s number one HR software has only recently moved to a web platform, yet it
could be argued that this latest offering is little more than what was available in its client
server application. HR as a profession is still struggling to make the impact and earn the
respect it deserves, yet HR and organizations are being duped into spending money for
something which is fundamentally flawed. However, it does not have to be this way. People
can and do make the difference.

 Alfred J Walker [2001] states that if HR technology is to be considered successful, it must

change the work performed by the Human Resources personnel by dramatically improving
their level of service, allowing more time for work of higher value, and reducing their costs.
Many systems have been implemented by cutting HR staff, outsourcing and imposing
technology on what was left. But Walker argues that survey results demonstrate that overall
HR departments have actually upward their staffing levels over the past decade to do the
same work. Walker advocates the business process re-engineering the HR function first, then
e-engineering the HR work. He suggests the formation of re-engineering teams of providers,
customers and users to examine the whole range of HR activities including those which are
not being done at present. The end product is a set of processes organized into broad
groupings such as re-sourcing, compensation or training and development. These processes
should then be examined by the re-engineering team and re-designed. From this redesign
 comes the picture of a new HR function but Walker argues that the most effective approach
is to introduce new technology to deal with the redesigned processes.

 Biswanath Ghosh [2002], mentioned that in an organization the most valuable input is the
human element. The success or failure of an organization depends to a large extent on the
persons who manage and run the organization. In business the greatest asset is the human
resource of the enterprise and not the plant, equipment or the big buildings it owns. There
was a time when manpower was considered as a cost factor but not it is recognized as an
investment. The e-HRM can range from basic personnel records to sophisticated networks of
sub-systems with definite purposes. Today most of these will be computer systems. The
manpower information system can provide necessary information in a form which can be
integrated with any other business data. With most data base systems, there are facilities to
pull out any of the data and present them in the required form.

 The Institute for Employment Studies at U.K. [2002] quotes e-HR as “the application of
conventional, web and voice technologies to improve HR administration, transactions and
process performance.” It involves using technology to provide HR services, such as
recording and monitoring systems, automating administrative tasks like recruitment and
dissemination information such as HR policies on the internet. As an enabling tool
technology has the capacity to transform the way in which HR is delivered to an authority.
Together with the exponential rise in the use of technology in the corporate field, it now
plays a vital role in effective people management.

 L.M.Prasad [2003] stated that the concept of computerized HRIS is derived “as an
organized method of providing information about human resources, their functioning,
external factors relevant to managing human resources.” Large organizations generally install
e-HR because it enables them to collect store, process and manipulate large amount of data
inputs, reduce costs of maintaining human resource data, and provide accurate information
about human resources anytime and anywhere. In a computerized HRIS various subsystems
are interlinked and the outcomes of all the systems are kept in the form of human resource
 inventory. Whenever a change takes place in any respect of an employee such a change is
incorporated in the computer input.

 “Changing the existing ways of thinking”: Yeow Chun Fey [2003], states that changing your
employee’s mindset is often one of the main challenges with the introduction of new
processes and systems. Frequently the resistance to change comes from the fear that the new
system will require more effort or responsibility. He recalls that during an employee briefing
session, one employee asked the question:

“So with us entering the application into the new leave system, aren’t we doing your work?”
To which Yeow responded, “Yes, to some extent you are right, but then under the manual
system, you had to complete your application in hardcopy after which we effectively
duplicated your work with data entry into the system. With the new leave system, the second
data entry step has been removed, which means that HR has more time to provide more
value-added assistance to you in other areas.”

Typically there is some resistance to change but generally most employees welcome and
appreciate the convenience and efficiency of the new technology.

 Andrew Macintyre [2003] says it all comes down to HR reducing the operational tasks and
getting on with strategizing and with 100% employee self service, as HR’s ultimate Utopia:
“the trend is firmly towards introducing transactional related services that allow employees to
get HR related administration work done faster and more efficiently than before. Companies
with positive experiences are starting to add on more features such as training and
performance appraisal. The ultimate dream solution is a single portal from which employees
can perform HR, finance and other work-related administration functions.”

E-appraisal and e-recruitment are two of e-HR’s latest trends, more out of convenience than
pure need: “managing of appraisal forms and resumes are one of the biggest headaches for
HR practitioners and managers. Something like e-leave, on the other hand is already
history”,
 Jan Wong [2003], business development manager at PROSOFT. As a more general trend
however, Wong suggests that any e-HR usually reaps quick benefits, including a paperless
and more efficient working day for many HR professionals: “as organizations become more
e-HR savvy, they are beginning to see the benefits almost immediately.” The reason being,
with modern technology, paper has become extinct. We can put behind us, the nitty-gritties
of leave applications, which are important to most employees’ life but very troublesome to
manage. With e-HR in place, all these little unseen headaches, like unproductive time spent
managing paper, merely disappear.

 Michael Armstrong [2003] mentioned that “the e-HR provides the information required to
manage HR processes.” These may be core employee database and payroll systems but can
be extended to include such systems as recruitment, e-learning, performance management
and reward. The system may be web-based, enabling access to be remote or online and at any
time. The information provided by the e-HR process can be communicated across
organizations. If posts static data such as information on HR policies and communications
about employer facilities such as learning opportunities and flexible benefits. It can include
links that enable managers and other employees to interface directly with HR applications
and make changes or enquiries.

 Ketlley P, and Reilly P [2003], mentioned that technology has only recently developed in a
way that enables e-HR to make its mark, especially the introduction of corporate intranets
and web-enabled HRIS. The nature of the development path, however, varies considerably
from organization to organization. Before embarking on e-HR, organizations should review
and optimize their business processes. This may be a case of major process redesign, or a
more tactical exercise tackling areas of concern. Following a process review, a common next
step is to introduce a form of self service. This is likely to involve employee self service,
where staff can access their personal record and update it or add new information. Manager
self service is usually a logical development, allowing the sign-off of various decisions or
proposals. Redesigning the HR function will impact on the roles and skills of HR staff. There
 will be many areas of up skilling as the move away from transactional work gathers pace.
This will stretch the capability of staff, not just in terms of technological facility but also in
customer and relationship skills. The development of e-HR systems is growing, allowing the
HR function to become more strategic. This can most easily be observed by the fact that
today employees tend to ask for advice rather than administrative assistance. This is the
reverse of the situation in the late 90s. Furthermore, the nature of HR departments has
changed because of the development of e-HR. A few years ago businesses tended to have
more, but less qualified HR staff whereas today the reverse applies.

 Hun Nam Chung [2003] stated that “today’s trend is adopting measurement-based
management with emphasis on organizational objectives and performance metrics, e-HR
solutions that provide such features along with best practices should be able to deliver
results. Once this HR infrastructure is put in place, you may embrace virtual work place
initiative to support the increasingly dynamic and mobile workforce”.

 Perrin [2003] mentioned that the use of e-HR technologies has for some time helped HR to
perform the more administrative responsibilities of the department. However, recent research
by towers Perrin indicates that most companies, that have introduced e-HR, have so far
limited themselves to just a few basic electronic transactions (particularly static transactions).
Nonetheless, as systems improve, technology advances and HR itself becomes more
accustomed to e-HR – things are starting to change. Furthermore, many of the obstacles to e-
HR are psychological rather than technical, but that does not remove the need to overcome
them. Successful implementation requires a pro-active and committed project team that can
react to and pre-empt the problems that could arise. The business challenge for each
company is to find the appropriate e-HR solution for their company.

 Garry Dessler [2004], stated that technological applications play an increasingly important
role in HR. Technology improves HR functioning in four main ways: self service, call
centres, productivity improvement and outsourcing. Using internet the firm’s employees can
self-service many of their HR transactions such as updating personal information and
changing benefits allocations. HR internet and data warehouse provide its managers with
desktop access to HR related information such as “how does turn over in my department
 compare to that of other departments”. Technology also enabled to create a centralized call
centre. The improving productivity through HRIS proves another example. These days more
firms are installing internet and computer-based systems for improving HR productivity.
Technology also makes it easier to outsource HR activities to specialist service providers by
enabling service providers to have real-time, internet-based access to the employer’s HR
database.

 Susan Foster, Paul Hawking and Andrew Stein [2004] describes that the application of the
internet to the Human Resource function (e-HR) combines two elements: one is the use of
electronic media whilst the other is the active participation of employees in the process.
These two elements drive the technology that helps organizations lower administration costs,
improve employee communication and satisfaction, provide real time access to information
while at the same time reducing processing time. This technology holds out the promise of
challenging the past role of HR as one of payroll processing and manual administrative
processes to one where cost efficiencies can be gained, enabling more time and energy to be
devoted to strategic business issues. The relative quick gains with low associated risk have
prompted many companies to realize what can be achieved through the implementation of a
business to employee (B2E) model. Employee self service (ESS) a solution based on the B2E
model enables employees to access the corporate human resource information system 24
hours a day and 7 days a week. “e-HR” is often characterized as being purely a technological
solution”, states

 Martin Reddington, Mark Williamson and Mark Withers [2005], mentioned that “but
where it is used and implemented effectively it can be a powerful enabler for broader
business change”. In simple words they say e-HR refers to the automation of some or all of
your current HR processes. The more visionary, advanced interpretations describe a fully
integrated organization-wide electronic network of HR related data, information, services,
databases, tools, applications and transactions that are generally accessible at any time by
employees, managers and professionals. More basic inspirational interpretations suggest that
an organization’s implementation of a new software package for payroll, or the posting of
company policies on the internet, signals its adoption of e-HR.
 Patricia A. K. Fletcher [2005] states that HR has moved from an administrative, support
function to the heart of strategic management and the use of technology is the key to that
transformation. Fletcher argues that businesses have to adopt a ‘Human Capital
Management’ approach to make the most of any organization’s greatest asset: the skills,
knowledge and experience of its staff. She described how in the 1990s most large businesses
introduced HRIS and that in continuation with re-engineering, this enabled them to replace
antiquated, time-consuming personnel processes with automation. Fletcher contends that for
HR to survive in this brave new world it needs to “possess a technology do not demonstrate
the ability to recommend appropriate technology and control automated HR processes,
organizations will use other people for these tasks. Fletcher instances the creation in some
organizations of chief talent officers on talent acquisition and retention. These, like some
replacements for ‘traditional’ HR executives may have no direct experience of human
resource management at all. Instead they may have “led a line of business and have had P&L
responsibility, understand what it means to be accountable for delivering business results.”

 Watson Wyatt [2006] states that e-HR refers to the broad access to human resources data,
tools and transactions available directly on the web in most work places today. It describes
the “net effect” of the explosion in web technologies and the dramatic impact this growth has
had on the way employees now receive employment-related information through integrated
self service applications. It also includes the variety of new technologies available that help
connect multiple systems, tools and databases, both “inside and outside organizations”. E-HR
liberates human resources from its administrative shackles and provides the foundation for a
collegial, flexible work place where employees have easy access to communication tools.
The use of internet and web technology has also liberated management to re-assume its
abdicated role of day-to-day people management without the endless wait for HR to
eventually process requests for information, and/or swift people management decisions.
Hopefully this will lead to the “extinction” of the old type of HR practitioner who publicly
 proclaims the need to outsource HR administration because it is too complex and arduous to
handle in-house.

 Jeff Sacht [2007] observes that a dramatic change in the employment law arena is forcing
Human Resources (HR) to transform its own operations, and its strategic role in contributing
to the success of business of all size. Today’s business environment along with the increasing
importance of technology requires smart thinking, quick action and rapid adaptation to
constantly changing conditions. The market place increasingly rewards those who respond to
the demand for innovation driven by the web and internet, technology advances,
globalization, skills shortages, and shifting demographics. This new business landscape
means leaving behind old ways of thinking and doing. Technological change is a key driver
for HR transformation, providing the foundation to support HR’s growing strategic focus. In
particular, web and internet technologies have already given workers direct access to each
other, to HR, and to business information with such ease and intelligence that every worker
can contribute more directly to business results.

 K. Aswathappa, mentioned that people management has traveled a long way, from purely
handling industrial disputes; it grew into personnel management which matured into human
resource management. Of late, HRM is transforming itself to human capital management.
What is to be underlined is that technology also travels along with the management of people
in organizations. If HR’s role has been to deliver workforce support and management based
on the needs of the business, the role of technology has been one of enabler. When HR
departments make use of the internet and related technology is to support their activities, the
process becomes e-HRM (where e-stands for electronic). During the past years, HR
processes and procedures have been supported by everything from complicated file folder
systems to automation, going from usage of multiple systems and data bases to a single
version of the whole system. These are the days of e-HR. HR professional needs to be aware
of and knowledgeable enough to adopt the new technology for the benefit of his or her
business.
 A.K.Gupta broadly explains Human Resource Management Information System as a
system that supports the planning, control, co-ordination, administration, and management of
an organisation’s human resources. E-HR also includes a large number of subsystems that
address the information needs of various human resource functions. Since e-HR also
facilitate vital information on matters such as payroll, central and state taxes, health benefits,
child care, grievance procedures and other personal information that affects employees’
personal and professional lives, it is imperative that these systems be highly responsive to
employee needs. Although many people believe that e-HR can be used only to enhance HR
decisions, in fact they can be used to cut costs, increase efficiency, and achieve a competitive
edge in the market place. Also the system links the performance of an individual to items
such as past training, educational background, and work history so that managers can be
better equipped to make such decisions. It is quite startling that every comer you turn, every
page you flip and every other business call you take, some company or some product has
become e-enabled.

 Rob Scott wonders whether the human resources (HR) fraternity had been caught napping,
or if it had in fact pondered and debated this fast-growing reality. There is a fair amount of e-
HR around. If one would separate the HR function into two broad components, namely
transactional and non-transactional activities, then it is easy to envisage the transactional
components being e-enabled. In most of the non-transactional HR activities, a continuum of
e-possibilities exists. The conservative point on the continuum would suggest that no
electronic mechanisms should be used to replace “people” activities, while the radical view
on the continuum would suggest that technology could replace all direct human interaction
with the HR customer. The most public response to this dilemma is that people cannot be
removed from the equation unless you want to create a cold and uninviting work
environment. But this is the same argument used when computer-based training (CBT) was
rearing its head as an alternative to traditional classroom-based training. Screams of horror
were heard from trainers who argued that people could not learn via a computer screen. In
reality, CBT has proven itself a very suitable and cost-effective e-method, and as modern
 software development tools emerge. The debate is not around whether the non-transactional
activities can be e-enabled or not-clearly it can be done, and as technologies such as neuron-
networks improve, it will enable more “human” activities to be done via electronic, internet
or mobile technologies. The debate for HR is whether the human interaction role currently
played by HR staff adds any value to the employee, the organization or the work
environment, which could not be done by technology. The bottom line is that services such
as employee counseling and legal issues, which are definite outsourcing opportunities for
organizations, and are likely to remain mainly human –intensive activities, are not currently
suitable to be enabled. It would be a sad day to see a colleague sending an e-mail request to
the ‘performance management computer’ system for a review on a proposed demotion.

 Susan Foster, Paul Hawking and Andrew Stein [2004] describe that the application of the
internet to the Human Resource function (e-HR) combines two elements: one is the use of
electronic media whilst the other is the active participation of employees in the process.
These two elements drive the technology that helps organizations lower administration costs
improve employee communication and satisfaction, provide real time access to information
while at the same time reducing processing time. This technology holds out the promise of
challenging the past role of HR as one of payroll processing and manual administrative
processes to one where cost efficiencies can be gained, enabling more time and energy to be
devoted to strategic business issues. The relative quick gains with low associated risk have
prompted many companies to realize what can be achieved through the implementation of a
business to employee (B2E) model. Employee self service (ESS) a solution based on the B2E
model enables employees to access the corporate human resource information system 24
hours a day and 7 days a week.

 Ruel, Bondarouk and Looise [2004], says that “E-HRM is a way of implementing HR
strategies, policies and practices in organizations through a conscious and directed support of
and/or with the full use of web-technology based channels.”
 Leonard Jessup and Joseph Valacich [2004] explore the various kinds of Information
Systems and the innovative techniques by which they are being used by organizations for
their benefit. To manage Human Resources in a Global Organization several things can be
done. First, it is important to hire individuals who are experienced in working in cross-
cultural teams, who can speak different languages, and who have the necessary cultural
sensitivity to empathize with other cultures. In addition it is also important to hire the proper
Information Systems leader or Chief Information Officer (CIO) with the ability both to
understand the global strategies of the company and at the same time to collaborate
successfully with the regional offices to implement those global strategies. The
organizational culture needs to be modified to fit the needs of local employees. Finally, the
organization as a whole should also be extremely sensitive to the various cultural issues and
political problems that exist between people from different countries when they are involved
in cross-cultural Information Systems operations. Such sensitivity and awareness can be
developed through careful and in-depth research and also by having a diverse mix of
employees representing different cultures.

 Patricia A. K. Fletcher [2005] states that HR has moved from an administrative, support
function to the heart of strategic management and the use of technology is the key to that
transformation. Fletcher argues that businesses have to adopt a ‘Human Capital
Management’ approach to make the most of any organization’s greatest asset: the skills,
knowledge and experience of its staff. She described how in the 1990s most large businesses
introduced HRIS and that in continuation with re-engineering; this enabled them to replace
antiquated, time-consuming personnel processes with automation. Fletcher contends that for
HR to survive in this brave new world it needs to “possess a technology” Fletcher instances
the creation in some organizations of chief talent officers on talent acquisition and retention.
These, like some replacements for ‘traditional’ HR executives may have no direct experience
of human resource management at all. Instead they may have “led a line of business and have
had P&L responsibility, understand what it means to be accountable for delivering business
results.”
 Ayesha Farooq and Nazia Khan [2005] outline the steps in implementing an HRIS. These
are: Inception of idea, Feasibility Study, Selecting a project team, Defining the requirements,
Vendor analysis, Contract negotiations, Training, Tailoring the system, Collecting data,
Testing the system, Starting up, Running in parallel, Maintenance, Audit. “E-HR” is often
characterized as being purely a technological solution”,

 Martin Reddington, Mark Williamson and Mark Withers [2005], “but where it is used
and implemented effectively it can be a powerful enabler for broader business change”. In
simple words they say e-HR refers to the automation of some or all of the current HR
processes. The more visionary, advanced interpretations describe a fully integrated
organization-wide electronic network of HR related data, information, services, databases,
tools, applications and transactions that are generally accessible at any time by employees,
managers and professionals. More basic aspiration interpretations suggest that an
organization’s implementation of a new software package for payroll, or the posting of
company policies on the internet, signals its adoption of e-HRM.

 Dr.Aravind.S. & Dr.P.Paramashivaiah [2006] emphasize that human resource is no longer

considered a business requirement; rather it has distinguished itself as one of the core assets
of any organization. With such a great emphasis on human capital, it is critical for every
organization to resort to means that offer quality recruitment solutions at competitive costs.
This is where the realm of e-Recruitment starts. The Internet is no longer just a rage; it has
now become a very powerful and effective tool at everybody’s disposal. E-Recruitment is
simply using this tool To Hire the Desired persons.
 CHAPTER -4

 Objectives of study
 Scope of study
 OBJECTIVE OF THE STUDY

The following are the objectives of the study:

 To make a study on the most preferably used E-HRM Techniques in the company
 To identify the disadvantages of the E-HRM process.
 To suggest the improvement in E-HRM systems followed by the company.

SCOPE OF THE STUDY

The scope of my research study is as follows:

1. The project involves the study of various types of New techniques in human resource

followed in the organization.

2. This study is conducted in the various organization of the Delhi & NCR region .
 CHAPTER - 5

Research methodology
RESEARCH METHODOLOGY

INTRODUCTION
Research is finding out what you don’t already know. Research is to be understood as original
investigation undertaken in order to gain knowledge and understanding using various methods
such as observation, interview, questionnaire or others taking into account the biases, errors and
limitations. Research is an “organized” and “systematic” way of “finding answers to questions”.
Research may be defined as a systematic and a replicable process which identifies and defines
problems, within specified boundaries. Research employs well designed method to collect the
data and analyses the results. It disseminates the findings to contribute to general knowledge.
Methodology refers to more than a simple set of methods rather it refers to the rationale and the
philosophical assumption that underlie a particular study. Another key usage for methodology
does not refer to research or to the specific analysis techniques. This often refers to anything and
everything that can be encapsulated for a discipline or a series of process, activities and tasks.
Methodology may be defined as “the analysis of the principles of methods, rules and postulates
employed by a discipline”, or “the development of methods to be applied within a discipline”
and “a particular procedure or set of procedures.”
Research Methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally adopted by a researcher in studying his research problem along with the
logic behind them.
RESEARCH DESIGN
A research design is a plan, structure and strategy of investigation so conceived as to obtain
answers to research question or problem. This study is descriptive in nature. It has been
undertaken to learn and describe the characteristics of a group of employees, in an attempt to
determine the impact of e-HRM in the organization.

SAMPLING PROCEDURE
A sample is a part of the target population carefully selected to represent that population. The
sampling technique used for this study is “convenience” sampling and 100 samples were drawn.
Methodology
Quantitative research involves numerical data, which are analyzed with statistical techniques.
quantitative research is the systematic empirical investigation of observable phenomena via
statistical, mathematical or computational techniques. It is more scientific. It is concerned with
objectively measurable variables.

Research/Study:
I will conduct Descriptive study for my objectives.
A descriptive study is undertaken in order to ascertain and be able to describe the characteristics
of variables of interest in a situation.

Data Collection:

I will choose Primary and secondary data for this study.

Tools of Primary Data

 Questionnaires
 Interviews

Tools of Secondary Data

 Internet
 Published journals
 Books
 Published editorials
 Company Websites
 Other material and report published by company

Sample Size
The size of the sample is 100 which is representative of the target population.

Sample area- Delhi & NCR.

STATISTICAL ANALYSIS

The tool used for data collection in this study is a self structured questionnaire which consists of
11 questions measured on 5 point scale. The questionnaire was constructed with a view to
capture the present working conditions using e-HRM technology and its efficiency levels. Data
will be analysed using Bar Diagram, Pie Charts, t-test and suggestions. Both quantitative and
non-quantitative methods are used.
 CHAPTER-6

DATA ANALYSIS AND INTERPRETATION

Q-1) Is new techniques of e-recruitment helps to match employee profile?

PARTICULARS RATINGS

Strongly Disagree 5%

Disagree 15%

Undecided 29%

Agree 20%

Strongly Agree 31%

e-recruitment

5%
15% Strongly Disagree
31%
Disagree
Undecided
Agree
29% Strongly Agree
20%

INTERPRETATION:-

From this chart we can see that 63% thinks that e-recruitment process operates with the need to
match employee profile, 21% are strongly agree, 10% are undecided, 4% are disagree and 2%
are strongly disagree.
Q-2) Do you agree with the pay structure which has been clearly defined in the e-hrm
system?

PARTICULARS RATINGS

Strongly Disagree 5%

Disagree 10%

Undecided 10%

Agree 46%

Strongly Agree 29%

50% 46%
45%
40%
35% 29%
30%
25%
20%
15% 10% 10%
10% 5%
5%
0%
Strongly Disagree Undecided Agree Strongly
Disagree Agree

INTERPRETATION:-

From this chart we can see that 46% thinks that pay structure has been clearly defined in the e-
HRM system, 29% are strongly agree, 10% are undecided, 10% are disagree and 5% are strongly
disagree.
Q-3) ) Do you agree that e-hrm process has been effective in providing clear role
definitions?

PARTICULARS RATINGS

Strongly Disagree 31%

Disagree 19%

Undecided 25%

Agree 15%

Strongly Agree 10%

10%

31% Strongly Disagree

15%
Disagree
Undecided
Agree
Strongly Agree
25%
19%

INTERPRETATION:-

From this chart we can see that 63% thinks that E-HRM process has been effective in providing
clear role definitions, 21% are strongly agree, 10% are undecided, 4% are disagree and 2% are
strongly disagree.
Q-4) ) Do you agree that the employees have been provided with necessary resources and
sufficient training to be able to use e-hrm technology?

PARTICULARS RATINGS

Strongly Disagree 34%

Disagree 18%

Undecided 16%

Agree 28%

Strongly Agree 4%

4%

34% Strongly Disagree

28%
Disagree
Undecided
Agree
Strongly Agree

16%
18%

INTERPRETATION:-

From this chart we can see that 28% thinks that E-HRM process has been provided with
necessary resources and sufficient training, 4% are strongly agree, 16% are undecided, 18% are
disagree and 34% are strongly disagree.
Q-5) ) Do you agree that e-hrm system has ensured a clear fit between business and hr
strategy?

PARTICULARS RATINGS

Strongly Disagree 6%

Disagree 17%

Undecided 15%

Agree 37%

Strongly Agree 25%

40% 37%

35%
30% 25%
25%
20% 17%
15%
15%
10% 6%
5%
0%
Strongly Disagree Undecided Agree Strongly
Disagree Agree

INTERPRETATION:-

From this chart we can see that 37% thinks that e-HRM system has ensured a clear fit between
business and HR strategy , 25% are strongly agree, 15% are undecided, 17% are disagree and 6%
are strongly disagree.
Q-6) ) Do you agree that e-hrm help to provide efficient e-induction meetings?

PARTICULARS RATINGS

Strongly Disagree 10%

Disagree 25%

Undecided 15%

Agree 23%

Strongly Agree 27%

30%
27%
25%
25% 23%

20%
15%
15%
10%
10%

5%

0%
Strongly Disagree Undecided Agree Strongly Agree
Disagree

INTERPRETATION:-

From this chart we can see that 23% thinks that E-HRM help to provide efficient e-induction
meetings , 27% are strongly agree, 15% are undecided, 25% are disagree and 10% are strongly
disagree
Q-7) ) Do you agree that e-hrm helps to provide effective wage and salary administration?

PARTICULARS RATINGS

Strongly Disagree 2%

Disagree 3%

Undecided 25%

Agree 48%

Strongly Agree 22%

48%
50%
45%
40%
35%
30% 25%
22%
25%
20%
15%
10%
2% 3%
5%
0%
Strongly Disagree Undecided Agree Strongly
Disagree Agree

INTERPRETATION:-

From this chart we can see that 63% thinks that e-hrm helps to provide effective wage and salary
administration , 21% are strongly agree, 10% are undecided, 4% are disagree and 2% are
strongly disagree.
Q-8) ) Do you agree that e-hrm helps to provide up-to-date knowledge and skill?

PARTICULARS RATINGS

Strongly Disagree 2%

Disagree 3%

Undecided 25%

Agree 48%

Strongly Agree 22%

50%
48%
40%
30%
20% 25%

10% 22%
2% 3%
0%
Strongly
Disagree
Disagree Undecided
Agree
Strongly
Agree

INTERPRETATION:-

From this chart we can see that 48% thinks that E-HRM helps to provide up-to-date knowledge
and skill , 22% are strongly agree, 25% are undecided, 3% are disagree and 2% are strongly
disagree.
Q-9) Do you agree that e-hrm help to provide effective e-performance appraisal ?

PARTICULARS RATINGS

Strongly Disagree 5%

Disagree 7%

Undecided 15%

Agree 48%

Strongly Agree 25%

5%
7%
25%
Strongly Disagree
15% Disagree
Undecided
Agree
Strongly Agree

48%

INTERPRETATION:-

From this chart we can see that 48% thinks that E-HRM help to provide effective e-performance
appraisal, 25% are strongly agree, 15% are undecided, 7% are disagree and 5% are strongly
disagree..
Q-10) Do you agree that e-hrm helps to increased productivity and efficiency of
administration?

PARTICULARS RATINGS

Strongly Disagree 10%

Disagree 20%

Undecided 15%

Agree 30%

Strongly Agree 25%

35%
30%
30%
25%
25%
20%
20%
15%
15%
10%
10%

5%

0%
Strongly Disagree Undecided Agree Strongly Agree
Disagree

INTERPRETATION:-

From this chart we can see that 30% thinks that E-HRM help to increased productivity and
efficiency of administration, 25% are strongly agree, 15% are undecided, 20% are disagree and
10% are strongly disagree
Q-11) Do you agree that overhead cost and time is being reduced due to e-hrm?

PARTICULARS RATINGS

Strongly Disagree 2%

Disagree 4%

Undecided 10%

Agree 63%

Strongly Agree 21%

70%
63%
60%

50%

40%

30%

20% 21%

10% 10%
2% 4%
0%
Strongly Disagree Undecided Agree Strongly Agree
Disagree

INTERPRETATION:-

From this chart we can see that 63% thinks that E-HRM helps to reduce overhead costs and time,
21% are strongly agree, 10% are undecided, 4% are disagree and 2% are strongly disagree.
 CHAPTER-7

RECOMMENDATION AND SUGGESTIONS

RECOMMENDATION:

The above recommendations are based on the findings and the conclusions arrived at in the research.

 All information systems can be described as organizational and management solutions to

challenges posed by the environment that will help create value for the firm. Information
systems are more than computers. Using information systems effectively requires an
understanding of the organization, management, and information technology shaping the
systems.
 E-HRM has become an inseparable part of the functioning of almost all the large business
players in the current scenario. However, as always technology comes with its inherent risks.
Hence, it is very important for the HR professionals to get comfortable with the technology
before they make other people see the value of such tools.
 Assessing the Flexibility of the HR Technology Reduce the risk of technology obsolescence
by assessing the flexibility of the solution prior to implementation
 In order to be flexible the technology should be capable of-
• being adapted to a change in business strategy
• serving a changing audience
• being deployed across multiple functions
• providing needed support for non-HR systems
• being used for multiple tasks with few modifications
• being deployed globally
• accommodating growth
 Service Delivery Applications To keep the processes and systems in-house, implement help
desk for HR.
SUGGESTION:

 The e-HR technology should be modified as to increase efficiency of conducting e-induction

meetings via web technology in order to bring in high efficiency level of employees
 E-HR can also improve organizational performance through reframing the HR policies
According to the preferences of the employees.
 The HR department can often make use of chat rooms, fairs, networking etc for recruiting in
order to make them effective in the organization.
 The HR department has to give in a detailed employment contract offer online in order to
make it clear for employees
 The HR department should also give preferences to policies that change the nature of
relationship with the employees and managers.
CONCLUSION
CONCLUSION:-
The transformation of HR has a range of facts expose the main themes of cost, the relative
capabilities of self-service, shared services, outsourcing and crucially, the quality of the people in
HR function. From the study we can understand that most of the human resources functions has
been automated and the employees are quite comfortable using these functions through web
based technology.

It is also evident that the system followed is quite effective and user friendly. Thus it is advisable
to other organizations also to use e-HRM technology, as the software solutions promises to give
a trouble-less system and inexpensive technology though in fact the level of this promise is made
up only to a certain extent. But the software solution keeps up the promise to provide a useful,
efficient and increased performance through this e-HRM technology in spite of all barriers it has
to face.

Perhaps the ultimate determinant of the success of HR will be its own ability to source and
develop human talent with the capability to share and lead HR into a pre-eminent position within

the business, where its own value is then truly perceived to be creating value through people.
QUESTIONNAIRE
Q-1) Is new techniques of e-recruitment helps to match employee profile?

Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree

Q-2) Do you agree with the pay structure which has been clearly defined in the e-hrm
system?

Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree

Q-3) ) Do you agree that e-hrm process has been effective in providing clear role
definitions?
Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree

Q-4) ) Do you agree that the employees have been provided with necessary resources and
sufficient training to be able to use e-hrm technology?.
Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree
Q-5) ) Do you agree that e-hrm system has ensured a clear fit between business and hr
strategy?
Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree

Q-6) ) Do you agree that e-hrm help to provide efficient e-induction meetings?
Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree

Q-7) ) Do you agree that e-hrm helps to provide effective wage and salary administration?
Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree

Q-8) ) Do you agree that e-hrm helps to provide up-to-date knowledge and skill?
Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree
Q-9) Do you agree that e-hrm help to provide effective e-performance appraisal ?
Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree

Q-10) Do you agree that e-hrm helps to increased productivity and efficiency of
administration?

Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree

Q-11) Do you agree that overhead cost and time is being reduced due to e-hrm?

Agree

Strongly Agree

Undecided

Disagree

Strongly Disagree
BIBLIOGRAPHY
BOOKS REVIEW

 Alfred J. Walker, Web-Based Human Resources: The Technologies and Trends That Are
Transforming HR, Published By Tata Mcgraw Hill [2001].
 Amstrong G., Differentiation Through People: How Can HR Move Beyond Business Partner
[2005].
 Aswathappa K. Human Resource Management, Published By Tata Mcgraw Hill, Fifth
Edition.
 Biswajeet Pattanayak, Human Resources Management, Published By Prentice – Hall of India
Private Limited [2005].
 Biswanth Ghosh, Human Resource Management Published By Vikas Publishing, [2002].
 Garry Dessler, Human Resource Management, Florida International University, [2004].
 Gupta A.K, Management Information Systems Published By Sultan Chand and Sons.
 Michael Armstrong, A Handbook Of Human Resource Management Practice, [2003].
 Martin Reddington, Mark Williamson And Mark Withers, Transforming HR: Creating Value
Through People, Published By Elsevier, [2005].
 Patricia A.K.Fletcher, The Brave New World Of E-HR: Human Resources In The Digital
Age, Published By Wiley, [2005].
 Prasad L. M, Human Resource Management, Published By Sultan Chand and Sons,[2003].
 Snell A.S., Pedigo P.R. And G.M.Krawiec, Hand Book Of Human Resource
 Management, Published By Blackwell Publishers, [1996].

Websites:

 http://www.nasscom.org/
 http://www.hr-guide.com/
 http://www.global-comment.com