EXAMINING THE RECENT TECHNOLOGICAL CHANGES IN THE ASPECT
OF HRM PRACTICE: A CASE STUDY OF HR PRACTITIONERS IN
HEADHUNT INTERNATIONAL
A research report presented to the Graduate school of business
Dublin Business School
In partial fulfilment of the requirements for
MBA IN HUMAN RESOURCE MANAGEMENT
By
Emily Ezra Yakusak
10037014
Supervisor: Mr. Martin O’Dea
Word count: 22,000
May, 2015
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DECLARATION
I, Emily Ezra Yakusak, hereby declare that this thesis “EXAMINING THE RECENT
TECHNOLOGICAL CHANGES IN THE ASPECT OF HRM PRACTICE: A CASE STUDY OF HR
PRACTITIONERS IN HEADHUNT INTERNATIONAL” is the product of my efforts submitted to
the Dublin Business School in partial fulfilment for the award of Master Degree in HRM.
Apart from references to other people’s works which have been duly acknowledged, this
work is the result of my own research; and that it has neither in whole nor in part been
presented for another research work in this University or elsewhere.
Signature Date
Emily Ezra Yakusak 22nd May, 2015
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CONTENTS
List of tables………………………………………….………………..…………………………………………………………7
List of abbreviations…………………………………………………………………………………………………………..8
Acknowledgements…………………….………………………………………………………………………………………9
Abstract…………………………………..………………………………………………………………………………………..10
CHAPTER 1: INTRODUCTION………..…………………………………………………………………………………11
1.1
General introduction………………………………………….………………………………………………….11
1.2
Background of study………………………………….…………………………………………………………..12
1.3
Conceptual and theoretical framework………….………………………………………………………13
1.4
Problem statement………………………………….………….…………………………………………………15
1.5
Research aims and objectives…………….………….……………………………………………………….16
1.6
Research question……………………………………………………….…………………………………………17
1.7
Significance of study…………………….…………………………………………………………………………18
1.8
Assumptions, limitations and delimitations of the study………………………………………..18
1.9
Conceptual clarifications of key terms……………….….……………………………………………….19
1.10
Organisational layout…………………………………………………………………………………………….20
CHAPTER 2: LITERATURE REVIEW……………………………………………………………………………………22
2.1 Introduction…………………………………………………………………………………………………………………22
2.2 The evolution of HR technology………….………………………………………………………………………..22
2.3 The concept of HRM and technology……….…………………………………………………………………..24
2.4 The connection between hr and technology…………..…………………………………………………….25
2.5 Technology and the HR function…….…………….……………………………………………………………..26
2.5.1 Linking technology with HR…….……………………..…………………………………………………………26
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2.5.2 Information flow……………….…….………………………..…………………………………………………….27
2.5.3 Social interactions……………….…………………..……..……………………………………………………….27
2.5.4 Implementation of new technologies…………..…….……………………………………………………28
2.6 Transition from hr to Virtual technology…………….……………………………………………………….28
2.6.1 Virtual recruiting………………………….……….……….…………………………………………………………29
2.6.2 Virtual on – boarding……………….……….…..………………………………………………………………….29
2.7 The use of HRIS in organizations……..………………………………………………………………………….30
2.7.1 Component of HRIS……………………..…………………………………………………………………………..31
2.7.2 Benefits of HRIS…………………………..……………………………………………………………………………32
2.8 comparison between traditional and e-hr……..…………………………………………………………….33
2.9 The Consequences of hr technology………………………………………………………………………35
2.10 Technological trends……….…………………………………………………………………………………………38
2.11 The challenges associated with hr technology…………………….……..………………………………39
2.12 Summary…………………………………………………………….…………….……………………………………….41
CHAPTER 3: METHODOLOGY……….…………………………………………………………………………………42
3.1 Introduction………………………….……………………………………………………………………………………..42
3.2 Research design……………………….…………………………………….…………………………………………….43
3.3 Research philosophy…………………..……….……………………………………………………………………….44
3.3.1 Positivistic approach……….…..……………………….…………………………………………………………45
3.3.2 Phenomenological approach….………………………………………………………………………………….45
3.4
Research approach…………….…………………………………………………………………………………..45
3.4.1 Deduction………………….…….……………………………………………………………………………………..46
3.4.2 Induction………………………..………………………………………………………………………………………….46
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3.5 Time horizon……….……………….……………………………………………………………………………………..47
3.6 Questionnaire design….….……………………………………………………………………………………………47
3.7 Sources of data……….…..………………………………………………………………………………………………49
3.7.1 Primary data……………..……………………………………………………………………………………………..49
3.7.2 Secondary data………….…………………………..…………………………………………………………………49
3.8 Instrument for data collection methods………….….……………………………………………………….49
3.9 A simple format of questionnaire analysis…………………….…………………………………………….50
3.10 Sampling method and selecting respondents……………….……………………………………………53
3.11 Data analysis – statistics used to analyse the data……………………………………………………..54
3.12 Ethical issues…………………………………………………..………………………………………………………….54
3.13 limitation of study……….……………………………..……………………………………………………………..55
3.14 Reliability and pilot study…………………………..……………………………………………………………….55
3.15 Summary……………………………………………………………………………………………………………………56
CHAPTER 4: DATA ANALYSIS AND FINDINGS…………………………………………………………………..57
4.1 Introduction………………………………………………………………………………………………………………….57
4.2 Demographic information…………………………………………………………………………………………….57
4.2.1 Response rate……………………………………………………………………………………………………………57
4.2.2 Age of respondents……………………………………………………………………………………………………58
4.2.3 Gender of respondents………………………………………………………………………………………………59
4.2.4 Current job levels of the respondent………………………………………………………………………….60
4.2.5 Years of experience of the respondent………………………………………………………………………60
4.2.6 Relationship between age and years of experience at Headhunt international….………61
4.3 Section B……………………………………………………………………………………………………………………….62
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4.4 Section C……………………………………………………………………………………………………………………….63
4.5 Section D………………………………………………………………..…………………………………………………….71
4.5.1 A graphical bar chart representation for section D…………..………………………………………..73
4.6 Analysis of section E……………………………………………………………………………………………………..77
CHAPTER 5: DISCUSSION, CONCLUSION AND RECOMMENDATION……………….…………………82
5.1 Introduction……………………………………………………………………………………………..…………………..82
5.2 The various technological tools used by employees at Headhunt Int…………………………….82
5.3 The hr technological practices in the organisation Headhunt international….……………….86
5.4 The extent to which hr technology ease administrative duties…………….……………………….88
5.5 The challenges encountered as a result of using hr technology…………..………………………..88
5.6 Conclusion………………………………….………………………………………………………………………………..90
5.7 Recommendation…………………………………….…………………………………………………………………..91
5.8 Suggested points for further research…………………………………………………………………………..93
CHAPTER 6: LEARNING AND REFLECTION…….………………………………………………………………….94
6.1 Introduction………………………………………………………………………………………………………………….94
6.2 Self-Appraisal……………………….……………………………………………………………………………………….94
6.3 Problem solving…………………………………………………………………………………………………………….95
6.4 Summary of added value………………………………………………………………………………………………96
6.5 Plans to apply/sustain learning……………………………………………………………………………………..97
REFERENCES………………………………………………………………………………………………………………….98
APPENDIX A: QUESTIONNAIRE COVER LETTER………….…………………………………………………..108
APPENDIX B: QUESTIONNAIRE FOR EMPLOYEES AT HEADHUNT INTERNATIONAL…………110
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LIST OF TABALES
Table 1: HRIS adoption by industries
Table 2: Comparison between traditional and E-HR
Table 3: Consequences of HR technology
Table 4: The outcomes of HR technology
Table 5: Major differences between deductive and inductive approaches to research
Table 6: Employee response
Table 7: Age category
Table 8: Gender group
Table 9: Job level group
Table 10: Experience group
Table 11: Age and years of experience cross tabulation
Table 12: Descriptive statistics for section B
Table 13: Descriptive statistics for section D
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LIST OF ABBBREVIATION
HRM Human Resource Management
HR Human Resource
IT Information Technology
HRIS Human Resource Information system
HRT Human Resource Technology
IS Information system
ICT Information and communication technology
E-HR Electronic Human Resource
PC Personal computer
PDC Personal data computer
LAN Local area network
SBTC Skilled based technical change
HCM Human capital management
SAAS Software as a service
MSS Managerial self service
PDF Portable document file
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ACKNOWLEDGEMENT
I remain forever indebted to several people whose assistance in various forms has assisted
me to undertake this project within record time.
First, I would like to thank Mr. Martin ODea, my project supervisor, for guiding me through
each and every step of the process with his wealth of knowledge and support. I truly thank
him for the advice, guidance and patience.
I am deeply thankful to my beloved family, most especially my father, Dr. Ezra Yakusak,
whose financial support and understanding made this programme a reality. I also thank my
mother Mrs. Eunice Yakusak whose motherly support and advice gave me the needed
strength to carry on.
My sincere thanks also goes to Esther who was always there for me, even when it was
extremely inconvenient. Indeed many people, too numerous to mention have variously
assisted me. The roles played by my friends are unquantifiable. By no means the least my
heart appreciation goes to Smatt, Damilola, Amyta, and other friends for their support. I
would also like to thank Headhunt Int. as well as the participants for taking part in the study;
without whose help this study would not have been possible. Finally, I would like to thank all
my other family members for encouraging me to continue my education.
Emily Ezra Yakusak
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ABSTRACT
This study aims at examining the recent technological changes in the aspect of HRM
practice. Technology is a tool that has and is still being globally used for the benefit of
humanity. It is being utilised by various organisations to meet the needs of its various
stakeholders. On a regular basis, new and upgraded versions of technology are being
invented. It’s been observed that, the distinguishing factor between organisations is their
ability to use modern technology to deliver HR service. Technology in HR practice can be
used to improve an organisations performance. In as much as technology has been of
immense benefit to organisations, it also comes with its challenges and other downsides.
This study provides an outlay of how HR technology emerged and its gradual acceptance
and practice in organisations. The research is intended to show the need to understand the
use of HR technology in organisations and the need to curb its challenges.
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CHAPTER ONE
INTRODUCTION
1.1
GENERAL INTRODUCTION
Technology is a tool that has and is still been used for the benefit of humanity. It is being
increasingly used by large, small and medium employers to meet the needs of its various
stakeholders. As the years goes by, new and improved technological versions are being
invented.
As a matter of fact, the distinguishing factor between organisations is their ability to utilise
modern technology to deliver HR service. Technology in HR practice can actually be used to
upgrade an organisations performance.
This research is intended to show the need to embrace this new technologies for those who
still practice traditional HR. The research will show how the use of technology can help a
company achieve a competitive advantage over its competitors.
Though studies have been conducted by different Researchers on the subject matter, this
research would however be different from previous works because it would also focus on
the future trends in HR technology and how professionals can adopt to those trends.
Headhunt int. has been in operation since the early 70’s and is globally leading in providing
innovative solution to staffing making use of international network of contacts to provide
global resources. The company has become an important recruitment advisor to a lot of the
best performing organisations in the world with the aim of supporting clients in achieving a
competitive advantage, it helps its clients in sourcing for the most qualified candidates at all
levels and also across various industrial sectors.
The company chosen for the purpose of these research is subsidiary based in Dublin. It is
now more important than ever to engage employees by knowing the recent technological
changes in HRM practice. An increasing number of employers are now introducing improved
version of technologies as they aid and foster recruitment processes compared. Headhunt
int. as a whole offers recruitment services, it employs over 1,500 staff in Ireland in various
categories from managers, marketing managers, supervisors, health and safety officers and
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customer service. This research investigated technological changes experienced by
employees within a small subsidiary employing just over 40 staff in Dublin.
1.2
BACKGROUND OF STUDY
In various organizations, their Human Resource Management departments commenced the
deployment of Information Systems (IS) for administrative purposes and this was done to
oversee employee records and payroll activities in the 1940s. On getting to 1971, 40% of
almost 500 companies began to use information systems and in 1980 almost 40% of every
business company employed IS for HR purposes. DeSanctis, G. (1986) these days, the larger
number of organizations make use of IS for HR purposes, mainly in HR administration.
Information systems which are used for HR purposes are called Human Resource
Information Systems (HRIS). As described in Legnick-Hall et al (2003) It is equipped mostly as
a platform for administrative duties in HR departments, as a result of the evolution and
development of technology, information technology was then deployed to support more HR
processes, the internet made it possible for managers and employees to give and get back
information online.
Human Resource Management and Technology have a wide range of impact upon
themselves, and HR professionals should be able to take up technologies that permit them
to re-engineer the HR function and also to be ready to support organizational work design
and differences initiated by technology Alok and Ibrahim (2010). Technology is been seen as
a critical driver of the HR’s growth from its specific focus on administrative task to a focus on
being a strategic business partner. This role adds value to HRM and also changes the
competencies which examine the success of HR professionals. These days, owing to the
potential inherent in the latest and advanced technologies to organise a lot of HR activities,
the businesses making use of technology to design and deliver their HR practices are on the
increase as the years goes by. These sudden turn of event is attributed to the fact that there
are substantial benefits that could emerge from the use of both technology and HR. The
growth of information technology has led to a more flexible means of achieving
administrative task either by the company or through outsourcing. Even though this growth
has been a gradual one, there are proves to show that the roles and responsibilities of HR
professionals are developing Lawler and Mohrman (2003).
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Information technology has had its impact on HR and one of which is that it has solved some
HR challenges such as attracting, retaining, motivating employees, managing the human
element of technological change etc. HRM has been supportive of technological effort to
innovate in other to achieve high performance and these innovations has helped the HR
function to concentrate on value added activities so that the full potential of technology and
organizational strategy can be achieved. One of the ways HRM has benefited from using
technology is that it has lessened HR staff burden from intermediary roles thereby helping
them to focus more on strategic planning in HR organization and development. In as much
as the growth of technology is a good development, Brockbank and Beatty (1999) stated
that it also has some consequences, one of which is that it may cause a change in the
competencies which HR professionals will have to learn in order to succeed. There has been
some suggestion that some companies have moved their focus from HR administration to
more strategic issues and this change in focus has its consequences on the competencies
that brings out the best in a HR professionals.
Technology has brought about change in the way in which the work place is being managed,
and has enhanced the improvement of human resource management and employees.
Various HR departments strive to lead in the implementation of emerging technologies due
to the fact that information technology saves time and expenses once it is well utilized.
These HR departments also employ technology to achieve their goals, efficiency and also
provide better service to their employees. Brockbank and Ulrich (2003) are of the view that
Technology has transformed into a major provision means for HR services, hence the need
for HR professionals to portray technological expertise. HR professionals need to be able to
use HR technology and web based medium to provide services to employees, they should be
skilful with the HR information system and be able to educate others on how to use such
system. That’s why this research seeks to discover the recent technological changes and
how it’s impacted HR practice.
1.3
CONCEPTUAL AND THEORITICAL FRAMEWORK
The use of technology in HR management initiates opportunities to re-engineer applications
in human capital management and impact operations Chess et al (2007). The ability to
impact operations grows from the HR office into every level of the company. Technological
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applications provide the most clear application in merging expertise in the area of HR and
technology Gasco and Gonzalez (2004). Gasco et al (2004) states that the implementation of
most current technology programs makes training and development available to every level
of the organisation. The implementation of these will be evident in flexibility in time
management for training, trainers’ active participation, a high production of quality
products and a vivid understanding of the programs. Training programs gives the
opportunity to enhance the development of technology aspects for the company in HR
applications. The application of foundational leadership theories including administrative
theory and motivational theory Scott (2003), provides for company leaders the framework
to engage the impacts of technology within the workforce and review the extent of HR
participation. The ability to manage change with technological growth allows leaders to
compete in markets globally Garg and Singh (2006), Krell (2006) stated that, the 25 years of
organisational development in technology from 1980 to 2005 changed the human
interaction of the workforce and management into dehumanized execution of button
pushing within the organization.
E-HR refers to conducting human resource transactions with the use of internet technology
Martinsosns (1996). At its inception, the HR professionals used technology to make accurate
and detailed information available to managers and employees, however, its evolvement
happened so that it will be possible to deliver almost any HR service with the use of
technology Kovach et al (2002).
E-HRM is a process change in companies’ structures that combines areas through
technological and economical dimensions to meet new consumer needs which in turn leads
to a new way of managing people Pagani (2003). E-HR initially came into use in the 90’s
when E-commerce began to dominate the business world Kovach et al (2002).
Recent technological developments have made business happen at a high speed and a
paperless office and also created real time information based, interactive work
environment. Thus, technology can be used to support HR main activities across the entire
employment cycle from acquiring to rewarding, developing protecting and retaining staff. As
technology improves, organizations can use information systems to manage a larger number
of HR processes in an increasingly effective manner to contribute to the availability of
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strategically significant information and knowledge, thereby potentially improving
competitive advantage Panayotopoulou et al (2005). The current research study will thereby
examine the evolution of HR technology and help us to understand the connection between
HRM and IT. It shall also be important to expound on the comparisons between traditional
and E HR.
1.4
PROBLEM STATEMENT
Technological applications and programs has an impact on how HR professionals perceive
the effectiveness of performance, productivity and personal involvement with the work
force. The society and economic influences of changing technology has expanded
organization’s production capability for 24 hours a day operations in virtual environments
involving limited interaction Efendioglu (2007). The application of self-managing resources
through technological procedures reflects opportunities for performance modification and
restructuring Chess and White (2007).
Organizational internet and intranet access capabilities influence a HR professional’s
personal value to the workforce and the influence of competitive edge for the company
Alleyne and Kakabadse (2007). Bell et al (2006) identified the reduction of human contact in
the use of application icons to answer questions, the removal of human interaction with
personal actions of online banking, pay and go gas stations etc. reflect the advancement of
personal technology. Professional actions of posting resume online, application of vacant
positions online, human service-less flight reservations portrays the advancement of
professional dehumanized technology Lee (2007). All of the above examples goes a long way
to show the removal of HR interaction and processing of actions. The primary levels of
personal needs and human involvement identified in Maslow’s hierarchy of needs are
reduced through technological means Ruel (2004). This is a major challenge of using HR
technology which this research addresses. Urwiler and Frolick (2008), identified a metaphor
using Maslow’s hierarchy involving an information technology value hierarchy, which
reflects the reduction of personal involvement by HR professionals.
It is apparent that HR practices are changing as technological applications are becoming
more readily available for human resource management. A clear understanding of how the
use of HR technologies within the company affects the work of HR professionals, is needed
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to establish the attitude of these individuals towards the tools as they are seen as primary
users, this is one of the objectives for this research. Whilst there are lots of research
regarding the implementation and effectiveness of technological HR, Ruël and Bondarouk
(2006), Zhang and Wan (2006), there are few studies that investigates the technological
changes in HR practice and also the impact it may have on the work of HR professionals.
There are two studies which were identified to have dealt specifically with the attitude
regarding HR technology which were conducted by Kinnie and Arthurs (1996) and later by
Voerman and Van Veldhoven (2007).
From the foregoing, this study, would address the issues identified in the research problem
with a view to recommending appropriate solutions.
The main thrust of this research therefore is to contribute to the broader research
community by generating new knowledge and be able to enhance existing knowledge as it
relates to the recent technological changes in HRM practice. It is also to identify the HR
practices in Headhunt int. and the technological tools which they use to carry out HR
activities. The results of this study would be beneficial for the company as they will be able
to identify recent technological tools which they are yet to employ which will support the
company in maximizing their operating performance. Another aim of this research concerns
the sharing of learning about technological HR which the company can use to raise
awareness to possible stumbling blocks and impacts which outdated or technology may
cause.
1.5
RESEARCH AIMS AND OBJECTIVES
This dissertation aims to make an assessment of the recent technological changes and the
impact of such changes in Human Resources management. In order to realise the objectives
of this research, emphasis is made on one of Irelands leading recruitment advisor, whom
will be referred to as ‘HEADHUNT INT’ or ‘COMPANY’ or ‘ORGANISATION’ throughout the
dissertation. The dissertation examined the operations of Headhunt Intl as regards its
technological capabilities and how it has been able to have an edge higher than its
competitors by utilising internal and external IT capabilities. It is also the aim of this research
to provide a clearer picture of the Employee and Employer participation to E-HR. Challenges
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encountered as a result of using technology in HR administration would be identified while
an attempt to proffer solutions to those challenges would be made accordingly.
From the foregoing, four main objectives constituting the crux of this study can be deduced
as follows;
–
To examine the evolution of the HR technology.
–
To examine the HR practices in Headhunt Intl. and the technological tools used.
–
To understand the relationship between HRM and IT.
–
To make a comparative analysis between traditional and E-HR.
1.6 RESEARCH QUESTIONS
This study will attempt to proffer answers to the questions agitating the minds of HR
departments in various organizations as regards adequate employment of new technologies
and seeking means to curb the attendant challenges. The main research question that will
be addressed is whether or not the use of technology in HRM has been able to effectively
reduce administrative burden, and whether the use of HR technologies such as E-recruiting,
E-selection, E-learning, E-performance management, E-compensation, E-benefits, etc. has
been able to ease the burden of administration in those organisations.
The project will answer the following hypothetical questions that can assist in arriving at the
findings and conclusion of the study:
1. Has the use of technology in HRM been able to effectively eradicate administrative
burden?
2. What are the challenges encountered as a result of using technology in HR
administration?
Finally, the research would also identify the challenges encountered as a result of using
technology in HR administration. The research would also attempt to proffer solutions to
those challenges.
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1.7 SIGNIFICANCE OF THE STUDY
The research will be of great importance to various groups of people such as the current
researcher, future researchers, policy makers and the various HR departments in various
organisations. The research will be of great importance to the current researcher because of
the knowledge and research skills to be acquired which would be subsequently applied to
conduct research in other subjects. Skills like developing questionnaires, interacting with
people, getting the necessary information and analysing data are skills that can only be
acquired through participatory research.
It is believed that the findings in this research will also help the management of Headhunt
Intl. to discover other new technologies which they could employ in carrying out HR duties.
This will help them come up with better HR techniques, which will translate into improved
employee performance.
When an organisation decides to implement a HR technology platform, the first justification
is focused on reducing costs, and then a project team tries to identify administrative costs
that the new technology can eliminate. The study will therefore assist various HR firms in
reducing administrative costs through the application of HR technology.
The research will also benefit the future researchers who will conduct research on the same
or similar topic and will learn more about the use of technology in HR practice. The study
will also benefit outsourcing companies who mainly carry out employment processes to
appreciate the use of technology in executing their functions.
1.8 ASSUMPTIONS, LIMITATIONS AND DELIMITATIONS OF THE STUDY
A major assumption of this study is that all participants would answer the survey questions
truthfully. Another assumption is that the questionnaires are simple and could be
completed in few minutes. It is therefore assumed that a significant number of those
surveyed would respond accordingly.
There are notable limitations to this study. The research conducted for this dissertation was
obtained by using a single company and adapted the case study approach for the purposes
of data collection. The dissertation looks at the recent technological changes that has
impacted the company (Headhunt int.)
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This research may therefore not have a concise picture of recent technological changes
across companies as the research conducted may differ from the opinions of staff working in
other disciplines; therefore, caution is urged. The participants in this research had different
working arrangement, roles, levels and supervisory duties, which became hard in
distributing the questionnaires and getting them back. One area of constraint was the
difficulty for some employees in reading and understanding the questions posed in the
questionnaire. Similarly, there is a great possibility that participants in the questionnaires
might not feel free to express their true feelings regarding the organization because of fear
of victimization or discrimination irrespective of them having been assured of anonymity
and confidentiality.
The delimitation of this study is that the respondents are employees of the company hence;
a potential limiting factor is that employees may fail to recognize the importance of this
research. This study examined some of the technological tools used by some of the
employees in Headhunt int., however if it looks at a larger population the results might
differ from the result been analysed. Lastly, this study did not consider whether or not these
technological tools were in place in Headhunt int. as it was assumed that some of these
tools were in place.
1.9 CONCEPTUAL CLARIFICATION OF KEY TERMS
This deals with the conceptual clarification of key terms. It is a definition and examination of
some key terms which have been severally mentioned in the text. The nature, meaning and
in some cases application of those key terms are examined.
For the purposes of this study, the following words and phrases are defined as follows:
(i) Human resource management: This has defined as a strategic and coherent approach to
the management of an organization’s most valued assets – the people working there who
individually and collectively contribute to the achievement of its objectives. Michael (2006).
(ii) HR technology: can be defined as any technology which is used to attract, hire, retain,
and maintain human resources, support HR administration, and optimize HRM. This
technology can used in different types of human resource information systems (HRIS) and
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by various stakeholders, such as managers, employees, and HR professionals. Julie et al
(2010).
(iii) Human Resources Information systems (HRIS): This is an integrated systems used to
gather, store, and analyse information regarding an organization’s human resources. Using
HRIS technology can help HR automate and simplify tasks, reduce administration and record
keeping, and provide management with HR-related information when required. Julie et al
(2010).
(iv) E-Technology: E-Technology refers to all devices and programs involving electronic
technology available to the organization and workforce, such as cell phones, blackberries,
personal data computers (PDC), answering machines, caller identification programs, laptops,
notebooks, video-teleconferencing, and internet communications Newstrom and Davis
2002).
(v) E-HR: Electronic Human Resources (E-HR) include the HR programs designed to do more
with less physical interaction Richards (2006). ‘Online’ applications and processing provide
the completion of work through an electronic means.
1.10 ORGANISATIONAL LAYOUT
This book is divided into six chapters. The first chapter deals with the general introduction of
the subject matter of the research while considering the background and problem of the
study as well as the aims and objectives and the significance of undertaking this research.
In chapter two, a brief literature review is made of some works relating to the field of this
study. The chapter considers current literature available on HR technology and their
relevance to HR Management. It also brings into light the recent technological changes in
HR that enhance work in the work place. This review is accompanied by objective comments
and opinion of these works.
Under chapter three a discourse is made on the research methodology employed and how
the data obtained is utilised to achieve the findings in this work. .
Chapter four deals with a summary of the results of the study, detailing the main findings
and their relationship to the research objectives and questions. Findings in this project are
presented in bar charts and frequency tables.
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Chapter five comprehensively analyses the findings and draws conclusions from the data
gathered. Most importantly, based on the findings, recommendations are made for the
consideration and possible use of Headhunt int.
Chapter six which is the concluding chapter, presents reflections and experiences of the
writer during the course of undertaking this study. It covers the impact and importance of
carrying out this research.
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CHAPTER TWO
LITERATURE REVIEW
2.1 INTRODUCTION
This chapter provides a review on the concept of HR technology that exist in the literatures.
Many researchers have carried out study on the topic of HR technology among
organizations. The chapter consist of various sub headings regarding the concept of HR
technology. This chapter therefore intends to examine the technological changes in the area
of HRM, while taking us through the evolution of HR technology, in order to make us
understand how HR technology all came about. This review is carried out in order to seek
knowledge and insight into some works relating to the field of this study in order to
understand the main research question.
2.2 THE EVOLUTION OF HR TECHNOLOGY
HR systems were initially paper based, the system operated solely on its own and did not
combine with any other related function. Various attributes were added as needed. Data
stored mainly on mainframe computers and the reporting was mostly elementary, and
Human resource was the primary custodian of the data. Managers would usually send
employees to HR to get all their personnel questions answered Julie (2010)
The next stage had a migration of information resident in the paper based systems to PCs
and local area network (LAN) systems. The HR databases could produce reports that simply
listed “tombstone” data, which meant basic employee information. The advances in the
database technology included payroll and some very basic versions of employee tracking.
HR data were mostly stored on a client server, a network architecture in which each
computer on the network is either a client or a server. Servers are powerful computers that
are dedicated to managing disk drives or network traffic, while clients are PCs which users
like HR professionals run software applications. The clients depend on the servers for
resources like files and devices like printers, and also processing power Russell (2003).
This early stage was being dominated by Peterborough software and Midland software
among others. Mainframe computers were important assets in organizations and were
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being managed in a thorough and centralised manner Russell (2003). They provided a minor
flexibility which made the process of making changes difficult.
The emergence of desktop PCs in the 80’s made it possible for the availability of cheap and
flexible PC based HR applications which were not difficult to install and provided a variety of
reporting tools and functionality. The HR users then were introduced to the possibility of
overseeing their numerous administrative task using a desktop system which could not be
done using a mainframe system Ralston et al (1998). The arrival of web-based technologies
and client server architectures brought about change in the range of activities placed on Pcs
and has opened the possibility to manage HR processes at the local level through employee
and manager self – service. Ralston et al (1998) defined client server as a term which refers
to a network architecture where there’s a separation of the system which interacts with the
end user i.e. the client from the system that manages the bulk of heavy work lifting i.e. the
server. The advantage of an architecture in this context is that it permits each machine in
the network to perform their various task, with substantial servers managing the software
application and database while the desktop PCs are taking care of the presentation of data
to the end user. The client server approach permits a potentially unlimited number of users
to be able to access and manage the same data from various points on the network. For HR,
these architecture promised to rectify a lot of setbacks of previous generations of HR
technology by making available connectivity, between hardware platforms and ensuring
that users had access to the system they needed Allan et al (2008).
At this point, HR entered fully into the digital world of electronic HR and the term “E-HR”
began to appear, many organisations has also begin to embrace HR technology. There are
now relational database where data can be stored in more than a file, with each file
containing different types of data. Users can now access applications from any computer
connected to the Internet via a secure, password-protected login page and from that point
forward all the data are encrypted. Various HR department continue to be the owner and
custodian of HR information, the reports that HR is able to produce have become more
sophisticated, even though majority of systems are still not Web-based, some leading-edge
organizations have embraced this technology Julie (2010).
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2.3 THE CONCEPT OF HRM AND HR TECHNOLOGY
Human resource management is said to be a strategic and logical approach to management,
and also the management of the most valued assets of an organisation Michael (2006).
Byars and Rue (2006) construed Human Resource Management to be a system of various
activities and strategies which concentrate on managing employees very well from various
levels of an organisation so that it can achieve organisational goals. Employees are the
human resource of every organisation and its most valued assets. It can be observed from
the definitions of the researchers that the employees of an organisation are perceived as
the companies most valued assets.
According to Dessler and Cole (2011), HR Technology is any technology that can be used to
hire, retain and maintain HR and also used to support HR administration. HR technology can
be used in different types of HR information systems and also by employees, managers, and
HR professionals. It has created an easier and faster means of gathering, delivering of
information and communicating with employees, it’s also capable of reducing administrative
burden on various HR departments. Organisations who use technology to manage their HR
functions are of more advantage than those who do not, even though not all organisations
are in possession of the latest technology but, a high number of them have HR related
information needs.
The application of information Technology (IT) to HRM is known to change the function,
while also allowing technology to develop its full potential Hempel (2004). E-HRM was used
first in the 1990’s and refers to completing HRM transactions making use of the internet or
intranet Lengnick-Hall and Moritz (2003). In a recent research on E-HRM, the term E-HRM
was seen as an umbrella term covering every possible integration mechanisms and content
between HRM and IT which is aimed at creating value for specific employees and managers –
Bondarouk and Ruel (2009). Strohmeier and Kabst (2009), are of the view that adoption
refers to the process of initiating and implementing IT so as to offer support to various
actors in performing HR duties, therefore, the organisational adoption of E-HRM represents
the decision to implement and apply information and communication technology for HR
purposes.
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The phrase E-HRM has been argued to be interchangeably used with Human Resource
Information System (HRIS), virtual HRM, Web based HRM and intranet based HRM
Bandarouk and Ruel (2009). Strohmeier (2007), are of the view that in the use of the term E-
HRM, researchers mostly refer to all types of IT applications used for HRM function, based
on the assumption that there are no distinctions between HRIS and Web based HRM
applications (E-HRM).
Strohmeier (2007) among other researchers proposed a distinction into different relevant
technological categories, irrespective of the fact that some of them are being used
concurrently to make technological basis of E-HRM available, he adopts the difference
between front-end and back-end systems of E-HRM. Front-end are usually web-based with a
primary task of connecting to different actors such as HR portals, self-service systems or
interactive voice response systems, which are being considered as the main categories of E-
HRM. The front-end systems require the support of various back-end systems such as HR
data ware-houses or HR modules of enterprise resource planning systems used for storing,
processing and retrieving data. HRIS is also seen as the backbone technology of E-HRM
Hendrickson (2003).
2.4 THE CONNECTION BETWEEN HR AND TECHNOLOGY
Studies such as Carmen and Ana (2010), have shown that as a result of new technologies
being introduced, and the connection it has with the work force, it has been reviewed to a
large extent in academic literature at the organisational level, and has lead the concept of
Skilled Biased Technical Change (SBTC). SBTC explains how the initiation of new technologies
brings about bias among unskilled workers and thus creates a demand for increase in skilled
workers because the skilled workers are needed for the effective use of new technologies.
Qualified workers will be favoured more, if the new skills are costly to acquire than those
required to operate old machinery, while the unskilled will only be favoured if the new skills
can be acquired at a cheaper rate than the skills linked to pre-existing technologies.
If every organisation is to introduce ICT, unskilled workers will be affected but the skilled will
compliment innovation and ICT even though there has been a higher demand for skilled
workers in the last decade. STBC assumes that new technology compliments and not
necessarily replaces skilled labour. Resources are complimentary if their use jointly
