Technology Enables Hr to Evolve to Business Execution: an Analysis

HR professionals are faced with the challenge of performing in ways that are in line with the business. In this view HR functions become critical partners in driving success, but to do so requires that HR changes its focus, its role, and its delivery systems, thus in e-business, the application of internet technology for HR is inevitable ( Wright and Dyer, 2000). Technology has increased the speed at which HRM transaction and information is gathered, improved communication, and reduced cost, flexible service, employee participation, a step towards paperless office and making it easier to administer HRM function. HRIS affects the efficiency and the effectiveness of the HR system by reducing cycle times, increasing data accuracy, improving the capabilities of operatives, supervisors, managers and HR professionals in taking better, timelier decisions (Maatman, 2006). Bondarouk & Ruel, (2009) defined HRIS as “An umbrella term covering all possible integration mechanisms and contents between HRM and information technologies, aiming at creating value within and across organizations for targeted employees and management”. As per Strohmeier (2007) HRIS is 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. According to Voermans and Van Veldhoven (2007) HRIS could be narrowly defined as the administrative support of the HR function in organizations by using Internet technology. According to Looise, Ruël and Bondarouk (2004) HRIS is a way of implementing HR strategies, policies, and practices in organizations through a conscious and directed support of and/or with the full having something realized. HRIS therefore is a concept- a way of ‘doing’ HRM.

Technology has and continues to play a pivotal role in enabling HR organizations to move from personnel management to business execution. To illustrate this process, let’s take a look at four different “generations” of HR that have emerged over the past 20 plus years.

• Pre 1990: Generation “Personnel Administration - Prior to 1990, many HR organizations were almost entirely focused on personnel administration. This was due in part to the sheer amount of time required to manage administrative HR processes before the widespread implementation of HR automation technology. In fact, prior to 1990 many HR organizations were not even called “human resources.” Instead, they had titles such as Office of Personnel Administration or Personnel Department. The main focus of HR in this generation was on how to efficiently process employee paperwork.

• 1990 to 2000: Generation “Human Resources - Two things happened in the 1990s that led to personnel management being redefined as “human resources.” First, implementation of ERP technology significantly reduced the time needed to perform administrative HR tasks. This freed up HR organizations to focus more on business execution topics. This led to significant advances in the expertise found within HR related to predicting and changing employee behavior. Many of the talent management techniques we now take for granted were largely developed in the 90s (e.g., action learning, competency modeling, structured interviewing, goal setting).

Second, the widespread adoption of personal computers made it possible for HR organization to utilize more sophisticated talent management techniques to support key talent decisions. For example, using computer based tools for and forms for evaluating employee performance and assessing job candidates. Throughout the 90s the focus of HR steadily shifted beyond personnel management to include processes designed to improve the quality of workforce decisions (e.g., determining who to hire, proactively managing employee turnover, or using job goals to drive employee development).

• 2001 to 2010: Generation “Talent Management- Widespread adoption of Internet systems in the 2000s allowed HR organization

collected during the hiring process into systems used to support employee development and management. Greater access to data enabled HR to shift from focusing on specific employee decisions to aligning talent management processes. No longer was HR limited to being a series of isolated silos focusing on staffing, training, compensation and succession. Now HR could function as a set of integrated talent management processes designed to ensure a steady supply of high performing talent in critical job roles.

Use of ICT improves two way communications leading to higher levels of engagement and satisfaction with HR. it increases flexibility in work thus promoting innovation; individualizes labour relations and allowing for relocation of individual employees to increase development, motivation and enhances employability. In addition, it reduces the number of times that answers to employees’ repetitive questions are given. It allows consultations at any time and place; provides reference materials e.g. training packages, policy guidelines, procedures and manuals on demand. It can be used for announcing vacancies for jobs within the organization, for recruitment and announcing important events or giving memoranda.

The role of managers in the workplace has changed substantially in recent years, partly as a result of market developments, but also due to new technologies used by the organizations in which they work. As a result, there has been a radical re-distribution of work that HRM managers used to do. Many of the reporting –type activities previously performed by HR Professionals are now performed by managers and employees (Ruta, 2005, Martin, 2005). These include: performing appraisals, appraising employee costs, generating HR reports on turnover, absenteeism, processing training requests and overseeing competence management. Use of technology makes it easier for managers to be able to

HR systems have focused predominantly on the product capabilities, success in the new era heavily dependent on the understanding and capabilities of the individuals involved. The use of computerized HRIS is most effective then manual because its help to maintain data with more accuracy in less time and that it also true’s that HRIS functions improve.

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