Role of IT in HRM

Topics: Human resource management, Human resources, Employment Pages: 5 (1622 words) Published: September 12, 2014
Executive Summary
This report suggests the pervasive requirement of IT tools in HR processes and E-recruitment in an enterprise can bring increased productivity and cost effectiveness. Basically, the availability of information technology(IT) has not been the problem, but its identification, partition and prioritization by HR mangers to support their HR initiatives. There are three ways in which IT can impact human resource management i.e Operational, Relational and transformational. Application of IT in HR can help human capital to achieve competitive advantage. E-recruitment(online recruitment)is also a cost effective strategy. It attracts a diversified pool of employees with less expenditure on advertising. Though. the quality of candidates attracted by E-recruitment is either equivalent or less than the other sources of recruitment .Therefore, it is not the most effective source. Through a questionnaire techniques, an analysis of both IT and E-recruitment has been conducted on HR processes of "iENGINEERING" an information engineering company. Results has shown the immense effectiveness of IT in HR and the company stands out as an successful enterprise. Surely, it has reduced the burden of human resource management.

A. Role of IT in HRM:
Now a days, top leaders fully realize the power of information technology tools can help them reach business targets. The utilization of IT tools in the business helps to define business goals and also optimize the work processes. The contemporary studies constantly confirm contribution of IT tools in Human Resource area i.e to accomplish tasks assigned to HR using IT capabilities. IT encompasses a wide range of tools hardware (from word-processing programs to expert system),software (from main-frames to microcomputers),network and work stations.The vast majority of firms has made use of HRM to transform HR functions. IT within HR stores and retrieves large amount of information quickly and inexpensively to institutionalize organizational knowledge. Lately, IT in human resource processes has been the centre of attention for employers in every organization. IT can be a potent weapon for lowering administrative costs, increasing productivity, speeding response time, improving decision making, and enhancing customer service. Ultimately, IT can provide data and communications platform that helps HR link and leverage the firm’s human capital to achieve competitive advantage. Furthermore the overwhelming majority of HR departments have never used their systems for strategic purposes. The problems tend not to be with the availability of IT for HR application. Indeed, virtually all of the technology needed to compete in the twenty-first century is readily accessible today. Rather, the evidence suggests that senior managers do not have a workable framework that conveys how IT can be leveraged to exploit its full benefits with HR. The study called ”Effects of HRM practices on IT usage” (Lee, 2009) shows that organizations use technologies for HR field such as employee participation, clearly defined jobs and extensive formal training. We describe three basic ways in which IT can impact HR:

First, the operational impact of IT; that is, alleviating the administrative burden, reducing costs, and improving productivity internal to the HR functions itself. The strong administrative component of HR makes it a logical candidate for automation because cost reduction and increased productivity have been pre-eminent goals of HR Second, the relational impact of IT; that is, providing managers and employees access to the HR databases, simultaneously reducing response time, and improving service levels. It supports HR related decisions by increasing ability to communicate with others in corporations. Third, the transformational impact of IT; that is, organizing human interaction to create virtual teams and more flexible network organizations. In...
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