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Home » Human Resources » e-HRM – Definition, Types, Role and Advantages

e-HRM – Definition, Types, Role and Advantages

November 21, 2022 | By Hitesh Bhasin | Filed Under: Human Resources

Table of Contents

  • What is e-HRM?
  • Meaning of e-HRM
  • What are the Elements of E-Human Resource Management?
    • 1. Employee self-service
    • 2. Manager self-service
    • 3. E-recruitment
    • 4. E-learning
    • 5. Analytics
  • Types of E-HRM
    • 1. Operational
    • 2. Relational
    • 3. Transformational
  • Goals of E-HRM
  • Role of E-HRM in Organizations
    • 1. Communication
    • 2. Processes
    • 3. Decision making
  • Advantages of E-HRM
    • 1. Improves communication between HR professionals and employees
    • 2. Increases access to HR information and tools
    • 3. Makes HR processes more efficient
    • 4. Improves decision-making in HR
    • 5. Enables remote working for HR professionals
    • 6. Reduces the cost of HR operations
    • 7. Increases the accuracy of HR data
  • Disadvantages of E-HRM
    • 1. Security concerns
    • 2. Privacy concerns
    • 3. Implementation costs
    • 4. Change management
    • 5. Employee resistance
    • 6. Requires a high level of IT skills
  • Functional Areas of E-HRM
    • 1. E-recruitment
    • 2. E-selection
    • 3. E-learning/web-based training
    • 4. Video
    • 5. Audio
    • 6. Videoconferencing
    • 7. Blogging
    • 8. Computers, tablets, and mobile devices
    • 9. E-performance management
    • 10. E-compensation
    • 11. Employee benefits
  • How to use e-HRM
    • Conclusion!

What is e-HRM?

e-HRM is the use of ICTs (Information and Communication Technologies) by HR departments and HR professionals to perform their roles in a more effective, automated, and result-driven manner. It is also said that e-HRM is the use of e-business technologies to enable and support the acquisition, development, management, and retention of human capital within organizations.

E-HRM is not a new concept, but rather an extension of HRM that takes advantage of the opportunities offered by technology. The goal of e-HRM is to use technology to improve the efficiency and effectiveness of HRM processes. Many benefits can be gained from e-HRM, including improved communication, increased access to information, more efficient HR processes, and better decision-making.

E-HRM or electronic human resource management is the process of managing human resources using electronic means. It’s the use of technology to manage all aspects of human resources, including employee records, time and attendance, training and development, and benefits.

The term “e-HRM” refers to the integration of all HR systems and activities using web-based technologies. Simply, e-HRM is a term that refers to any strategic human resource management system or practice in human resources that is supported by the Internet or related technologies.

Meaning of e-HRM

There is a lot of employee personal data that needs to be collected and managed at HR department staffing levels for the HR department to function properly. This data includes things like contact information, employment history, performance reviews, and more. The HR department needs to be able to access this data easily and efficiently in order to support the business’s various processes. E-HRM is a great way to manage this data and ensure that the HR department can do its job effectively.

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E-HRM can also help with things like knowledge management and supporting the various strategic activities of the HR department clients. By using E-HRM, the HR department can focus on its core functions, strategic HR activities, and HRM services. The specific sort of chosen HR functions relieves some of the burdens on the business. E-HRM is a great way of supporting business processes and improving the efficiency and effectiveness of the HR department, and it is a service that more businesses should consider using.
The human resource management review process can be complex and time-consuming. There are often many different stakeholders involved in this process, and each one needs to be given the proper attention. The HR department needs to be able to access this data easily and efficiently in order to support the business’s various processes. E-HRM is a great way to manage this human resource information and ensure that the HR department can do its job effectively.

What are the Elements of E-Human Resource Management?

The elements of e-HRM can be summarized into five main categories:

1. Employee self-service

This is when employees have access to their HR department information and can perform various HR tasks themselves, such as updating their personal information, requesting time off, or applying for training programs.

2. Manager self-service

This is when managers have access to HR information and tools that they can use to manage their employees, such as performance review data, time and attendance records, or training and development programs.

3. E-recruitment

This is the use of technology to recruit new employees, such as posting job ads online, conducting video interviews, or using social media for recruiting.

4. E-learning

This is the use of technology to deliver training and development programs electronically, such as online courses, e-books, or webinars.

5. Analytics

This is the use of data and analytics to improve HR decision-making, such as using data to identify trends in employee behavior or using analytics to assess the impact of training programs.

Types of E-HRM

Types of E-HRM

1. Operational

The operational e-HRM system is used to automate and streamline HR processes, such as employee onboarding or performance reviews. This type of e-HRM system is designed to improve the efficiency of HR processes and make it easier for HR professionals to do their jobs.

2. Relational

The relational e-HRM system is used to create a more collaborative and interactive relationship between HR professionals and employees. This type of e-HRM system is designed to improve communication and collaboration between HR professionals and employees.

3. Transformational

The transformational e-HRM system is used to radically change the way HR functions are performed. This type of e-HRM system is designed to completely overhaul the way HR functions are performed, making them more efficient and effective.

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The most common type of e-HRM system is the operational e-HRM system, which is designed to automate and streamline HR processes. However, all three types of e-HRM systems can be used to improve the efficiency and effectiveness of HRM processes.

Goals of E-HRM

The goal of e-HRM is to use technology to improve the efficiency and effectiveness of HRM processes. Many benefits can be gained from e-HRM, including improved communication, increased access to information, more efficient HR processes, and better decision-making.

E-HRM can help organizations achieve several goals, such as:

  1. Improving communication between HR professionals and employees
  2. Increasing access to HR information and tools
  3. Making HR processes more efficient
  4. Improving decision-making in HR
  5. Enabling remote working for HR professionals
  6. Reducing the cost of HR operations
  7. Increasing the accuracy of HR data

Role of E-HRM in Organizations

The role of e-HRM in organizations can be summarized into three main categories:

1. Communication

E-HRM can improve communication between HR professionals and employees by providing a more efficient way to exchange information.

2. Processes

E-HRM can improve the efficiency of HR processes by automating and streamlining various HR tasks.

3. Decision making

E-HRM can improve decision-making in HR by providing access to data and analytics that can be used to identify trends and make informed decisions.

Advantages of E-HRM

Advantages of E-HRM

Some of the notable advantages of e-HRM are

1. Improves communication between HR professionals and employees

E-HRM provides a more efficient way for HR professionals and employees to exchange information. This can lead to improved communication and collaboration between HR and employees.

2. Increases access to HR information and tools

E-HRM provides employees with access to HR information and tools that they can use to manage their careers. This can help employees to be more proactive in managing their careers and make better-informed decisions about their future.

3. Makes HR processes more efficient

E-HRM automates and streamlines various HR processes, such as employee onboarding or performance reviews. This can help to make HR processes more efficient and easier to manage.

4. Improves decision-making in HR

E-HRM provides access to data and analytics that can be used to identify trends and make informed decisions about HR policies and practices. This can help to improve the overall effectiveness of HR decision-making.

5. Enables remote working for HR professionals

E-HRM enables HR professionals to work remotely by providing access to HR information and tools via the internet. This can help to reduce the cost of running an HR department and make it more accessible to employees.

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6. Reduces the cost of HR operations

E-HRM can help to reduce the cost of HR operations by automating and streamlining various HR processes. This can lead to significant savings for organizations that implement e-HRM systems.

7. Increases the accuracy of HR data

E-HRM systems can help to increase the accuracy of HR data by providing a more efficient way to collect and store data. This can help to improve the quality of HR decision-making.

Disadvantages of E-HRM

While e-HRM has many advantages, some disadvantages should be considered, such as

1. Security concerns

One of the main concerns with e-HRM is the security of employee data. e-HRM systems store a large amount of employee data, which can be vulnerable to security breaches.

2. Privacy concerns

Another concern with e-HRM is the privacy of employee data. e-HRM systems collect and store a large amount of employee data, which can be used to track and monitor employee behavior.

3. Implementation costs

e-HRM systems can be costly to implement and maintain. Organizations need to carefully consider the costs and benefits of e-HRM before deciding to implement such a system.

4. Change management

e-HRM can require a significant change in the way HR functions are conducted. Organizations must carefully manage this change to ensure that e-HRM is successfully implemented.

5. Employee resistance

Some employees may resist e-HRM because they feel that it invades their privacy or because they are not comfortable using new technology. Organizations must carefully manage employee resistance to e-HRM to ensure its successful implementation.

6. Requires a high level of IT skills

e-HRM requires a high level of IT skills to implement and maintain. Organizations need to ensure that they have the necessary IT skills and resources before implementing e-HRM.

Functional Areas of E-HRM

1. E-recruitment

E-recruitment is the use of electronic means to recruit employees. This can include using online job boards, social media, or other online tools to attract and identify candidates.

2. E-selection

E-selection is the use of electronic means to select employees. This can include using online assessment tools, video interviews, or other online tools to identify and select candidates.

3. E-learning/web-based training

E-learning/web-based training is the use of electronic means to provide employee training. This can include using online learning management systems, e-learning courses, or other web-based training tools to provide employees with the training they need.

4. Video

Video is a powerful e-HRM tool that can be used for recruitment, selection, training, and performance management. Video can be used to conduct video interviews, create e-learning courses, or provide employees with real-time feedback.

5. Audio

Audio is another e-HRM tool that can be used for recruitment, selection, training, and performance management. Audio can be used to conduct audio interviews, create e-learning courses, or provide employees with real-time feedback.

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6. Videoconferencing

Videoconferencing is a tool that can be used for recruitment, selection, training, and performance management. Videoconferencing can be used to conduct video interviews, create e-learning courses, or provide employees with real-time feedback.

7. Blogging

Blogging is a tool that can be used for recruitment, selection, training, and performance management. Blogging can be used to create e-learning courses or provide employees with real-time feedback.

8. Computers, tablets, and mobile devices

Computers, tablets, and mobile devices are essential e-HRM tools. These devices can be used for recruitment, selection, training, and performance management. They can also be used to access e-learning courses and e-performance management systems.

9. E-performance management

E-performance management is the use of electronic means to manage employee performance. This can include using online performance management systems, e-learning courses, or other web-based tools to provide employees with the feedback they need to improve their performance.

10. E-compensation

E-compensation is the use of electronic means to manage employee compensation. This can include using online compensation management systems, e-learning courses, or other web-based tools to provide employees with the information they need to make informed decisions about their compensation.

11. Employee benefits

Employee benefits are an important part of e-HRM. Employee benefits can be managed using online benefit management systems, e-learning courses, or other web-based tools. These tools can help employees understand and make the most of their benefits.

How to use e-HRM

Some of the simple steps of using e-HRM are

  1. Study the e-HRM features available in the market and decide which ones to implement in your organization.
  2. Train your employees on how to use e-HRM tools and systems.
  3. Use e-HRM tools and systems to manage employee recruitment, selection, training, performance, and compensation.
  4. Evaluate the e-HRM tools and systems periodically to ensure they are meeting your needs.

Conclusion!

In the end, it is clear that E-HRM is a process of managing Human Resources in an organization through the use of electronic methods and tools. E-HRM has numerous advantages over traditional HRM, including increased efficiency, improved communication, and enhanced data security.

While there are some challenges associated with E-HRM, such as resistance to change and lack of personal interaction, these can be overcome with proper planning and implementation. E-HRM is the future of HRM, and organizations that embrace it will be well-positioned to succeed in the modern business world. What do you think? Is E-HRM the way of the future? Let us know in the comments!

Liked this post? Check out the complete series on Human resources

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About Hitesh Bhasin

Hitesh Bhasin is the Founder of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

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