Role of HR in the new E-enabled organization

Author- Mittal Nagda

This course started with lot of anxiety in terms of what is that, we will take to our workplace from this module.  This I believe, was our thought process putting ourselves in the shoes of traditional employees of 20^th century for whom technology is a threat; Forgetting that we are in the age of knowledge economy where the most important contribution of an employee to the organization is his or her decision making capability and all transactional work is outsourced or taken care by technology. The same implies for the HR professionals. As I was trying to understand the relevance of the implementation of eHrm, I happened to speak to the HR professionals in my company who have seen the transition from doing manual HR operations to E-enabled HR operations. So I thought this would be the best topic to write a blog on. So here is my blog on What can be the role of HR in e-enabled environment.

HR has for long time has been locked into transactional activities (administration) and traditional activities (such as recruitment, selection and training) which take up the majority of time. And the HR professionals are so bogged down with such activities that they have no time for higher value added services such as knowledge management, culture management and strategic redirection & renewal. However, Information technology is changing things. Transactional tasks are now largely carried out using IT systems either in-house or outsourced.  Traditional and Transformational activities are also gradually moving this way with increasing introduction of e-enabled delivery of HR, saving more cost and time. This eHRM trend seems as though it will continue in the context of Internet and intranet based business model.

Where HRIS were directed to support the HR professionals in performing their HR tasks, e-HRM applications are directed not only to support HR professionals in performing their HR tasks, but also directed to support managers and employees performing their HR tasks. “E-HRM is a way of implementing HR strategies, policies, and practices in organisations through a conscious and directed support of and/or with the full use web-technology-based channels” (Ruël et al.; 2004, p. 365-366).

Introducing e-HRM

The e-HRM technology supports the HR function to comply with the HR needs of the organisation through web-technology-based channels (Ruël et al.; 2004). The e-HRM technology provides a portal which enables managers, employees and HR professionals to view, extract, or alter information which is necessary for managing the HR of the organization.

• E-HRM, enables managers access to relevant information and data, conduct

analysis, make decisions and communicate with others without being dependant on HR professionals

• E-HRM, enables employees to control their own personal information and update this information, make own decisions concerning their own situation without being dependant on HR professionals. 

• E-HRM affects the efficiency and the effectiveness of the HR system by reducing cycle times, increasing data accuracy, and reducing HR staff, 

• E-HRM, enables the HR system to increase efficiency and effectiveness of the organisation by improving the capabilities of both managers and employees in taking better, timelier decisions. 

·   E-HRM also provides the HR function the opportunity to create new avenues for contributing to organisational effectiveness through such means as knowledge management and the creation of intellectual and social capital (Lengnick-Hall & Moritz)

This has consequences for the job content of the HR professionals. “Less administrative tasks for the HR department and therefore less administrative positions, more focus on strategic goals of the organisation and therefore an HRM staff consisting mainly of ‘thinkers’ (Ruël et al.; 2004, p. 369).”

The job of the HR professional

E-HRM does not only have an impact on the performance indicators of the HR system. As the use of the e-HRM technology also drives a change in the HR architecture, and therefore changes the time spent of HR professionals on specific HR activities, it is also expected that is has further consequences for the HR professional. “Extensive use of IT will likely influence the HR professionals’ focus as they may be expected to spend more time toward efforts to improve the organisation (Gardner et al.; 2003).” Besides the increased strategic role, the HR professionals also receive the responsibility of the e-HRM technology. “IT influences the focus of work that HR professionals perform by focusing more time on activities related to IT support, such as maintaining and developing IT-based HR applications (Gardner et al.; 2003).” Ruël et al. (2004) state that adoption of e-HRM technologies requires HR experience for the renewal of instruments and prepare these instruments for easy web-based use. The HR professionals also have a role in the accompaniment of end users of the technology. The end-users must be trained and motivated to use the technology. There is also the expectation that the adoption of e-HRM technologies leads to HR professionals being functional specialists supporting employees and managers instead of being administrative experts.  

The roles of the HR professional

The typology of Ulrich (1997) can be used to describe the different roles to be performed by HR professionals as business partners within an organisation. Four roles for HR professionals are defined based on the variations of two dimensions: strategy versus operational and people versus processes. The four roles of HR professionals described by Ulrich are-

Partner in strategic execution: The organisation’s executive team is responsible for the strategy of the organisation. HR, as a part of this executive team should impel and guide discussions of how the organisation should be organised to carry out its strategy. The responsibilities of the HR department are the following:

• Defining an organisational architecture

• Conducting an organisational audit to detect problems that require immediate improvements

• Identify methods for renovating the parts of the organisational architecture that need it

• Take stock of its own work and set clear priorities

Administrative expert: Traditionally, the role of the HR professional was that one of an administrator. Nowadays, the role has extended form just being an administrator, to being responsible for the efficiency of both their own function but also the entire organisation. Besides the financial benefits of decreasing costs, efficiency improvements will also build HR’s credibility to be a strategic partner.

Employee champion: The employee champion is mostly considered to keep the employees of the organization committed toward the organisation. Especially the disappearing of the employment contract has had an impact on the morale of the employees. The relationship between organisations and employees has become transactional. Employees give their time but not much more. It is the responsibility of the HR professional to keep the employees engaged to the organisation. Nowadays this often means that HR professionals should train line management about the importance of high employee morale and how to achieve it. Besides this responsibility the HR professional is the voice of the employees in management discussions, offer employees opportunities for growth, and provide resources that help employees meet demands placed on them.

Change agent: These changes in the organization, its environment occur in an ever-increasing pace. The winners in this fast changing environment are those organisations, which have the ability to adapt to these changes the quickest. The HR professional has the responsibility to build the organisation’s capacity to change. Besides this, it is the responsibility of the HR professional to take away any resistance and fear to change.

The HR professionals as business partner: 

“Business Partner = Strategic Partner + Administrative Expert + Employee Champion + Change Agent”

The diagram below can thus conclude as to what can the different performance indicator be for the HR in e-enabled organization and what could be the roles that an HR would require to get into.