Transformation of Human Resources Management Solutions as a Strategic Tool for GIG Workers Contracting

Transformation of Human Resources Management Solutions as a Strategic Tool for GIG Workers Contracting

Malek B. Elayan
DOI: 10.4018/978-1-7998-4501-0.ch010
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Recently, organizations are becoming more intelligent, flexible, and efficient by using new digital technologies in human resources management (HRM). The HRM solutions are considered as an important source to support strategic decisions, create value within and across organizations for employees and management. Today, organizations are facing challenges for gig workers to retain the level of progression and development required for business continuity. Gigs are generally self-employed who are very hard to manage without having a solid e-HRMS that can fulfill their needs in addition to the permeate employee needs as well. The main objective of this chapter is to highlight digital transformation in HRM and dive into the e-HRM concept, development stages, types, and strategies. In addition, it shows how e-HRM contributes to increase the effectiveness of human resources. It will also discuss multiple dimensions about the gig work management (GWM) including the contracting methodologies, policies, and behaviors that the e-HRM need to consider for the gig workers.
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According to the literature, there are lots of synonyms for e-HRM. For instance, Ruel, et al. (2004) distinguish; e-HR, virtual HRM, HR Intranet, Web-based HR, Human Resource Information Systems (HRIS) and HR portals. There is a debate going on about the differences between e-HRM and HRIS. Ruel, et al. (2004) excludes HRIS from the synonyms for e-HRM; in their view, HRIS is more focused on the HRM department itself, aiming to improve the processes itself and does not focus on the employees and management. This reason is confirmed by other authors (Bondarouk et al, 2017; Bondarouk, Horst & Engbers, 2009; Bos & Heijden, 2004; Ball, 2001). The author decided to choose “e-HRM” instead of other abbreviations as it is more compatible and relevant with the context of chapter.

The term of e-HRM was first used in the late of 1990’s when “e-Commerce” was sweeping the business world”(Lakshmi, 2014). HRM departments using Information and Communication Technology's (ICTs) are becoming an increasingly important phenomenon commonly referred to as e-HRM (Olivas-Lujan & Zapata-Cantu, 2007). E-HRM can be specifically defined as administrative support of the HR function in organizations by using internet technology (Voermans & Veldhoven, 2007). Another definition that used the concept of web-based systems is Panayotopoulou, Vakola, and Galanaki (2007) who defined e-HRM as a web-based solution that takes advantage of the latest web application technology to deliver an online real-time HRM Solution and aims at making information available to managers and employees at anytime and anywhere. E-HRM is defined as a way of implementing HRM strategies in organizations through a conscious and directed support with the full use of web-based technology channels (Parry & Tyson, 2011; Ruel, Bondarouk, & Velde, 2007).

Key Terms in this Chapter

E-Performance Management: The extent of developing the budget, analyzing the impact of incentive systems and ensuring the fairness of compensation system by internet technology.

Digital Transformation of HRM: The use of new digital technologies in HRM practices, which recognizes agility as the main tool for the strategic planning of an organization's HRM model and developing electronic HRM.

E-HRM Operational Effectiveness: The extent of reducing administrative costs, saving time, and enhancing the accuracy of data.

E-Training and Development: The extent of developing online training courses by internet technology.

E-HRM: An umbrella term covering all possible integration mechanisms and contents between HRM and IT, aiming at creating value within and across organizations for targeted employees and management.

Gig Economy: It involves the exchange of labor for money between individuals or companies via digital platforms that actively facilitate matching between providers and customers, on a short-term and payment-by-task basis.

Gig Workers: It involves Highly skilled professionals, Part-time workers, and Crowd workers.

E-Recruitment and E-Selection: The extent of recruiting unique talent across world applicants by internet technology and assessment results of selection process could be generated automatically at the same time.

E-HRM Relational Effectiveness: The extent of improvement of the services to managers and employees by e-HRM.

Digital Transformation: The use of new digital tools, such as artificial intelligence, mobile, cloud, and blockchain, to create new business models and enhance the customer experience.

E-HRM Strategic Effectiveness: The extent of enhancement of the strategic role of HR in organizations, the assistance in strategic decision making processes and attaining Competitive Advantage by e- HRM.

E-Compensation: The extent of linking the performance Appraisal and the compensation system automatically with more transparency by internet technology.

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