The Impact of E-HRM Usage on HRM Effectiveness: Highlighting the Roles of Top Management Support, HR Professionals, and Line Managers

The Impact of E-HRM Usage on HRM Effectiveness: Highlighting the Roles of Top Management Support, HR Professionals, and Line Managers

Yaser M. Al-Harazneh, Ismail Sila
Copyright: © 2021 |Pages: 30
DOI: 10.4018/JGIM.2021030107
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Abstract

This study investigated the impact of electronic human resource management (e-HRM) implementation on the effectiveness of HRM system. The framework of this study was guided by three theories: unified theory of acceptance and use of technology, the social exchange theory, and the leader-member exchange theory. Covariance-based structural equation modelling was used to test the proposed model and hypotheses. The sample consisted of 282 responses from the employees of two telecommunications companies in Jordan. The research findings suggested that performance expectancy had a significant positive effect on behavioural intention to use an e-HRM system, whereas effort expectancy did not. Facilitating conditions had a positive significant impact on e-HRM system usage. Top management support and the HRM role of line managers positively affected behavioural intention to use e-HRM and actual usage of e-HRM, whereas the effect of HR professionals on e-HRM usage was negative. Finally, the actual usage of e-HRM had a significant impact on HRM system effectiveness.
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1. Introduction

Technology advancement, the Internet, and the Information Technology (IT) revolution have affected our society, economy, and education (Suramardhini, 2012). Technology has a strong influence on Human Resource Management (HRM) processes and practices and is moving them in a completely new direction (Stone & Dulebohn, 2013). As a result, HRM has witnessed great changes in the way it has been managed since the 1990s due to the introduction of web-based HRM systems and the replacement of face-to-face HRM activities with these systems (Ruël, Bondarouk, & Van Der Velde, 2007).

The extensive use of innovative IT in HRM has been fueled by the widespread implementation of enterprise resource planning (ERP) programmes in conjunction with internet-based technology that have led to the standardisation and automation of the administrative aspects of HRM functions and practices (Marler & Parry, 2015). This has encouraged organisations to increasingly adopt electronic HRM (e-HRM), which entails the integration of IT applications with Human Resource (HR) functions (Foster, 2009; Galve-Górriz & Castel, 2010).

Top managers' behaviours and actions affect information system (IS) implementation outcomes in organisations. Top management support (TMS) for change management (CM) fosters the organisational receptiveness of a new system by affecting the formation of employees’ skills and behaviour as well as line managers’ (LMs) buy-in (Dong, Neufeld, & Higgins, 2009). Recently, Galanaki, Lazazzara, and Parry (2019) found out that the configuration of e-HRM adoption is widespread at the global level. e-HRM entails the integration of technology into HRM to implement HRM practices. Particularly, the absence of collaboration between the IT department and HR professionals results in poor reliability of HRM information and unsuccessful adoption of e-HRM systems in organisations. Strohmeier and Kabst (2009) explored the factors that influence the organizational adoption of e-HRM in 2,336 organisations across 23 European countries. Their research showed that the majority of the organisations in Europe have already implemented an e-HRM system.

Strohmeier (2007, p.20) defined e-HRM as the “Planning, implementation, and application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities”. Thus, technology is an essential medium for e-HRM where it connects and integrates the HRM activities and functions of various actors, regardless of their working location, and enables them to accomplish HRM activities and functions (Bondarouk & Ruël, 2009). The e-HRM system also enables the end-users’ interaction through the execution of HR functions at all organisational levels (Suramardhini, 2012; Marler & Fisher, 2013). In addition to the traditional HRM practices such as recruitment and training, an e-HRM system is used for daily transactions and activities and other HR staff-related transformational functions that contribute to an organisation’s strategic and value-added HR activities and give it a competitive advantage. This contribution could be realised through improved efficiency, more effective development and deployment of HR, and enhancement of the contribution to business strategy (Marler, 2009; Parry, 2011).

An e-HRM system is also defined as “a way of implementing HR strategies, policies and practices in organisations through conscious and directed support of and/ or with the full use of web-technology-based channels” (Ruël, Bondarouk, & Looise, 2004, p.281). The design phase of HRM practices and policies is considered as the main part of the HRM implementation process. Effective HRM implementation occurs when actually implemented HR practices match intended HR practices, in which LMs are the main actors. It is the realization of the desired organizational outcomes related to employee satisfaction with HRM practices (Bondarouk, Trullen, & Valverde, 2016). Under this conceptualisation, organisations may realise significant competitive advantages by digitalization HRM (Beatty & Ulrich, 2001). The goal of HRM digitalisation is to increase HRM productivity through automating HRM’s transactional or managerial tasks and replacing low-value functions with more higher-value functions (Marler & Parry, 2015). For instance, through employee self-service (ESS), employees can easily access their organisation’s HRM applications and update their essential personal information (Gueutal, 2003). Furthermore, the implementation of Managerial Self-Service (MSS) enables managers to access several HRM aspects and manage most of the HR-related tasks themselves (Gueutal, Stone, & Salas, 2005).

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