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Ehrm Unit 1

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24 views20 pages

Ehrm Unit 1

Uploaded by

shubham kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Electronic Human Resource Management (e-HRM) refers to the use of digital

platforms and tools to perform various HR functions such as recruitment,


payroll management, training, employee performance monitoring, and more.
It aims to streamline HR processes, reduce paperwork, and make data
management more efficient.

Here are some key aspects of e-HRM:

1. Automation of HR Processes: Many traditional HR tasks are automated,


such as leave management, payroll processing, and employee onboarding,
which saves time and reduces human error.

2. Employee Self-Service: Employees can update personal information,


request leave, access payslips, and even complete performance appraisals
through an online portal.

3. Data Management and Analytics: e-HRM systems can store large amounts
of employee data, and with built-in analytics, HR professionals can track
performance, employee satisfaction, turnover rates, and more.

4. Recruitment and Talent Management: Digital platforms are used to post


job openings, screen applications, and track candidate progress. This speeds
up the recruitment process and improves the candidate experience.

5. Training and Development: Online training modules and platforms are


integrated into e-HRM systems, allowing employees to upskill or complete
mandatory training remotely.

6. Performance Management: e-HRM platforms often have built-in tools for


setting performance goals, tracking progress, and conducting appraisals,
creating a structured performance management process.
7. Compliance and Legal Reporting: e-HRM systems help HR teams ensure
compliance with labor laws and company policies, and make legal reporting
much easier by maintaining accurate and up-to-date records.

The link between Human Resources (HR) and Information Technology (IT) is
crucial in modern organizations, as IT supports and enhances various HR
functions through technological solutions. Here’s how HR and IT intersect:

1. HR Software Implementation: IT teams are responsible for selecting,


implementing, and maintaining HR software systems such as Human
Resource Information Systems (HRIS), Applicant Tracking Systems (ATS), and
Learning Management Systems (LMS).

2. Data Security and Privacy: HR manages sensitive employee data, and IT


ensures that this data is protected through robust cybersecurity measures,
data encryption, and compliance with data protection regulations.

3. System Integration: IT integrates HR systems with other organizational


systems (like finance and operations) to ensure seamless data flow and
process efficiency. For example, linking payroll systems with accounting
software.

4. User Support and Training: IT provides technical support and training for
HR staff to effectively use HR systems and tools. This includes
troubleshooting issues and assisting with system upgrades.

5. Data Analytics and Reporting: IT enables HR to leverage data analytics


tools to gain insights into employee performance, engagement, and other HR
metrics, helping in data-driven decision-making.

6. Automation of HR Processes: IT solutions automate routine HR tasks such


as timekeeping, leave management, and benefits administration, which
streamlines operations and reduces manual errors.
7. Employee Self-Service Portals: IT develops and maintains online portals
where employees can access HR services such as updating personal
information, managing benefits, and viewing pay stubs.

8. Compliance and Legal Requirements: IT supports HR in ensuring that


systems comply with legal requirements related to employee data, record-
keeping, and reporting.

The link between Human Resources (HR) and Information Technology (IT) is
crucial in modern organizations, as IT supports and enhances various HR
functions through technological solutions. Here’s how HR and IT intersect:

1. HR Software Implementation: IT teams are responsible for selecting,


implementing, and maintaining HR software systems such as Human
Resource Information Systems (HRIS), Applicant Tracking Systems (ATS), and
Learning Management Systems (LMS).

2. Data Security and Privacy: HR manages sensitive employee data, and IT


ensures that this data is protected through robust cybersecurity measures,
data encryption, and compliance with data protection regulations.

3. System Integration: IT integrates HR systems with other organizational


systems (like finance and operations) to ensure seamless data flow and
process efficiency. For example, linking payroll systems with accounting
software.

4. User Support and Training: IT provides technical support and training for
HR staff to effectively use HR systems and tools. This includes
troubleshooting issues and assisting with system upgrades.

5. Data Analytics and Reporting: IT enables HR to leverage data analytics


tools to gain insights into employee performance, engagement, and other HR
metrics, helping in data-driven decision-making.
6. Automation of HR Processes: IT solutions automate routine HR tasks such
as timekeeping, leave management, and benefits administration, which
streamlines operations and reduces manual errors.

7. Employee Self-Service Portals: IT develops and maintains online portals


where employees can access HR services such as updating personal
information, managing benefits, and viewing pay stubs.

8. Compliance and Legal Requirements: IT supports HR in ensuring that


systems comply with legal requirements related to employee data, record-
keeping, and reporting.

IT provides the technological backbone that supports and enhances HR


functions, ensuring efficiency, security, and effective management of
employee-related processes.

The shift from conventional HR to web-based HRM (Human Resource


Management) has significantly impacted both HR practices and IT functions
within organizations. Here’s a look at the major impacts:

Impact on HR

1. Increased Efficiency: Web-based HRM systems automate routine tasks


such as payroll, benefits administration, and timekeeping, reducing manual
effort and increasing accuracy.

2. Improved Accessibility: HR professionals and employees can access HR


systems from anywhere with an internet connection, enabling remote work
and reducing the need for physical presence in the office.
3. Enhanced Data Management: Web-based HRM systems centralize and
organize employee data, making it easier to manage, retrieve, and analyze
information.

4. Better Decision-Making: Advanced analytics and reporting tools available


in web-based systems provide HR with actionable insights, supporting data-
driven decision-making.

5. Streamlined Recruitment: Recruitment processes are more efficient with


online job postings, application tracking, and candidate management
systems, which speed up hiring and improve candidate experience.

6. Self-Service Capabilities: Employees gain access to self-service portals for


managing their personal information, benefits, and performance reviews,
reducing the administrative burden on HR staff.

7. Enhanced Communication: Web-based platforms facilitate better


communication between HR, employees, and management through
integrated messaging systems and collaboration tools.

Impact on IT

1. Infrastructure Management: IT is responsible for the deployment,


maintenance, and security of web-based HRM systems, including managing
server infrastructure and ensuring system uptime.

2. Data Security: IT must implement robust security measures to protect


sensitive employee data from cyber threats and ensure compliance with data
protection regulations.
3. System Integration: IT integrates web-based HRM systems with other
enterprise systems (e.g., ERP, CRM) to ensure seamless data flow and
process efficiency across the organization.

4. Technical Support: IT provides support and training to HR staff and


employees on how to use web-based HRM systems, troubleshooting issues
and facilitating smooth operation.

5. Scalability and Flexibility: Web-based HRM systems can be scaled up or


down based on organizational needs, and IT manages this scalability to
accommodate growth or changes in the business.

6. Innovation and Upgrades: IT is responsible for implementing updates and


new features in HRM systems, keeping the technology current and aligned
with the latest trends and innovations.

7. Compliance and Audits: IT supports HR in ensuring that web-based


systems comply with legal and regulatory requirements, facilitating audits
and maintaining accurate records.

The shift to web-based HRM systems has streamlined HR processes and


enhanced the overall efficiency of HR operations, while also increasing the
responsibilities of IT in terms of system management, security, and support.

A ethical approach in the use of IT and HR functions involves ensuring that


technology is used in a manner that respects employee rights, privacy, and
fairness. Here’s how ethical considerations play a role and what information
is crucial for HR managers:

Ethical Approach in IT and HR Functions

1. Data Privacy and Security:


- Protection: Safeguard employee data from unauthorized access,
breaches, and misuse.

- Consent: Ensure employees are informed about what data is collected,


how it will be used, and obtain their consent where necessary.

2. Transparency:

- Disclosure: Clearly communicate to employees about how their data is


collected, used, and shared.

- Accessibility: Allow employees to access their own data and correct


inaccuracies.

3. Fairness and Non-Discrimination:

- Bias Mitigation: Implement algorithms and tools that are designed to


avoid discrimination and bias in recruitment, performance evaluations, and
promotions.

- Equal Opportunity: Ensure that technology solutions support diversity and


inclusion by providing equal opportunities for all employees.

4. Employee Monitoring:

- Reasonable Use: Avoid invasive monitoring of employees and ensure that


any surveillance is proportionate and justified.

- Transparency: Inform employees if monitoring is in place and clearly state


its purpose.

5. Ethical AI and Automation:

- Accountability: Ensure that AI and automated systems used in HR


decisions are fair and accountable, and that there is human oversight where
necessary.

- Explainability: Provide explanations for automated decisions, particularly


those affecting employee careers and well-being.
6. Compliance with Regulations:

- Adherence: Follow relevant laws and regulations such as GDPR, CCPA, and
others that govern data protection and privacy.

Information Needed for HR Managers

1. Legal and Compliance Knowledge:

- Understand data protection laws, labor regulations, and industry


standards to ensure compliance in all HR practices and technology use.

2. System Capabilities and Limitations:

- Be familiar with the features, strengths, and weaknesses of the HR


systems and tools in use to leverage their full potential while mitigating risks.

3. Data Management Practices:

- Know how to manage, store, and protect sensitive employee information


according to best practices and legal requirements.

4. Ethical Guidelines:

- Be aware of ethical guidelines and frameworks related to HR and IT to


ensure that technology is used responsibly and fairly.

5. Employee Feedback and Concerns:

- Gather and address feedback from employees regarding HR technology


and its impact on their work experience and privacy.

6. Training and Support Needs:

- Identify training needs for HR staff and employees to effectively use HR


systems and understand their rights and responsibilities.
7. Change Management:

- Understand the process for implementing and managing changes in HR


technology, including communication strategies and support mechanisms.

An ethical approach in HR and IT involves safeguarding employee rights,


ensuring transparency, and adhering to legal and ethical standards. HR
managers need a comprehensive understanding of these aspects, along with
relevant information about legal requirements, system functionalities, and
ethical guidelines to effectively manage and utilize HR technologies.

In Human Resource Management (HRM), data is crucial for informed


decision-making, strategic planning, and operational efficiency. IT plays a
pivotal role in managing and utilizing this data. Here’s an overview of the
sources of data and the role of IT in HRM:

Sources of Data in HRM

1. Employee Records:

- Personal Information: Includes data such as contact details, job history,


and educational background.

- Performance Data: Records of performance evaluations, goals, and


achievements.

2. Recruitment Data:

- Application Forms: Information submitted by candidates during the hiring


process.

- Interview Records: Notes and feedback from interviews and assessments.

3. Payroll and Benefits Information:

- Compensation Data: Details of salaries, bonuses, and other compensation


components.
- Benefits Enrollment: Data related to health insurance, retirement plans,
and other benefits.

4. Training and Development Data:

- Training Records: Information on completed training programs,


certifications, and skills acquired.

- Development Plans: Records of individual development plans and


progress.

5. Employee Engagement and Surveys:

- Engagement Surveys: Data collected from employee satisfaction and


engagement surveys.

- Feedback Mechanisms: Responses from employee feedback and


suggestion systems.

6. Time and Attendance Data:

- Attendance Records: Data on working hours, leave requests, and


absences.

- Timesheets: Records of hours worked, overtime, and shifts.

7. Legal and Compliance Data:

- Compliance Records: Documentation related to labor laws, regulatory


requirements, and audits.

- Health and Safety Records: Information on workplace safety incidents and


compliance with health regulations.

Role of IT in HRM

1. Data Storage and Management:


- Centralized Databases: IT systems store and organize HR data in
centralized databases, ensuring data integrity and accessibility.

- Data Integration: IT integrates HR data with other enterprise systems


(e.g., finance, operations) to provide a holistic view of organizational data.

2. Data Security and Privacy:

- Access Control: IT implements security measures such as user


authentication and access controls to protect sensitive HR data.

- Encryption: Data encryption ensures that employee information is


protected from unauthorized access and breaches.

3. Automation and Efficiency:

- Process Automation: IT automates routine HR tasks such as payroll


processing, leave management, and benefits administration, improving
efficiency and reducing errors.

- Workflow Management: IT systems streamline HR workflows, from


recruitment to performance evaluations, enhancing productivity.

4. Analytics and Reporting:

- Data Analytics: IT tools analyze HR data to generate insights on employee


performance, turnover rates, and other key metrics, supporting strategic
decision-making.

- Reporting Tools: IT provides reporting tools to create customized reports


and dashboards, helping HR managers track key performance indicators
(KPIs).

5. Employee Self-Service:

- Self-Service Portals: IT supports the development and maintenance of


self-service portals where employees can access and update their personal
information, manage benefits, and request time off.
6. Communication and Collaboration:

- HR Platforms: IT facilitates communication and collaboration through HR


platforms and tools, improving interaction between HR, employees, and
management.

- Feedback Systems: IT supports online feedback systems and survey tools


to gather employee opinions and engagement data.

7. Compliance and Audits:

- Compliance Tracking: IT systems help track compliance with labor laws


and regulations, and maintain accurate records for audits.

- Regulatory Updates: IT keeps HR systems updated with the latest


regulatory changes and ensures adherence to legal requirements.

IT plays a crucial role in managing and leveraging HR data by providing


robust storage solutions, ensuring data security, automating processes, and
offering analytical tools. This integration of IT and HR functions enhances
overall efficiency, supports strategic decision-making, and ensures
compliance with regulatory standards.

For HR managers, IT provides a range of tools and solutions that streamline


HR processes, enhance data management, and improve overall efficiency.
Here’s how IT supports HR managers:

1. HR Management Systems (HRMS)

- Integrated Platforms: Comprehensive HRMS platforms integrate various


HR functions such as recruitment, payroll, benefits administration, and
performance management into a single system.

- Automation: Automate routine tasks like payroll processing, leave


management, and benefits administration, reducing manual work and errors.

2. Data Analytics and Reporting


- Analytics Tools: Utilize data analytics tools to track and analyze key HR
metrics, such as employee performance, turnover rates, and engagement
levels.

- Reporting Dashboards: Generate real-time reports and dashboards to


monitor HR activities and support strategic decision-making.

3. Recruitment and Talent Management

- Applicant Tracking Systems (ATS): Manage the recruitment process more


efficiently, from posting job openings to tracking applications and scheduling
interviews.

- Talent Management Systems: Track employee skills, certifications, and


career development to support succession planning and professional growth.

4. Employee Self-Service Portals

- Self-Service Features: Provide employees with access to update personal


information, manage benefits, request time off, and view pay stubs through
online portals.

- Improved Efficiency: Reduce administrative burden on HR staff by


enabling employees to handle routine tasks independently.

5. Training and Development

- Learning Management Systems (LMS): Manage and deliver training


programs, track employee progress, and assess training effectiveness
through an LMS.

- E-Learning Platforms: Offer online courses and modules that employees


can complete at their own pace, facilitating continuous learning.

6. Performance Management

- Performance Tracking Tools: Use performance management systems to


set goals, track progress, and conduct evaluations, ensuring a structured and
transparent performance review process.
- Feedback Mechanisms: Implement tools for collecting and managing
employee feedback and surveys.

7. Communication and Collaboration Tools

- Internal Communication Platforms: Use tools like instant messaging, video


conferencing, and collaboration software to facilitate communication and
teamwork within HR and across the organization.

- Document Management: Store and manage HR documents and records


electronically for easier access and retrieval.

8. Compliance and Risk Management

- Compliance Tracking: Use IT solutions to monitor and ensure compliance


with labor laws, regulations, and company policies.

- Risk Management: Implement systems for managing and mitigating risks


related to employee data, such as data breaches and legal compliance
issues.

9. Security and Privacy

- Data Protection: Implement security measures such as encryption, access


controls, and regular audits to protect sensitive employee information.

- Privacy Management: Ensure that data collection and handling practices


comply with privacy regulations and best practices.

10. Employee Engagement and Well-being

- Engagement Platforms: Utilize platforms to measure and improve


employee engagement, conduct surveys, and gather feedback on workplace
culture.

- Well-being Tools: Offer tools and resources to support employee well-


being, including health and wellness programs.
IT provides HR managers with a suite of tools and systems that enhance
operational efficiency, improve data management, and support strategic
decision-making. By leveraging these technologies, HR managers can
streamline processes, ensure compliance, and foster a more engaged and
productive workforce.

Electronic Human Resource Management (e-HRM) aims to leverage


technology to enhance various HR functions and achieve strategic
objectives. Here are the primary objectives of e-HRM:

1. Enhance Efficiency and Productivity:

- Automation: Streamline routine HR tasks such as payroll processing, leave


management, and recruitment through automation to reduce manual effort
and increase productivity.

- Process Optimization: Improve the efficiency of HR processes by


integrating and standardizing procedures across the organization.

2. Improve Data Management and Accuracy:

- Centralized Data: Consolidate employee data into a centralized system to


ensure consistency and accuracy.

- Data Integrity: Reduce errors and inconsistencies by automating data


entry and updates.

3. Facilitate Better Decision-Making:

- Analytics and Reporting: Provide tools for data analysis and reporting to
generate insights into HR metrics such as employee performance, turnover
rates, and compensation.

- Strategic Planning: Use data-driven insights to support strategic HR


planning and decision-making.

4. Enhance Employee Experience and Engagement:


- Self-Service Portals: Enable employees to access and manage their
information, benefits, and requests through self-service portals, improving
convenience and satisfaction.

- Communication Tools: Improve communication between HR and


employees through integrated messaging and collaboration platforms.

5. Support Talent Management and Development:

- Recruitment and Onboarding: Streamline the recruitment process and


improve onboarding with automated tools for job postings, application
tracking, and orientation.

- Training and Development: Facilitate employee training and development


through online learning platforms and performance management systems.

6. Ensure Compliance and Risk Management:

- Regulatory Compliance: Ensure adherence to labor laws, data protection


regulations, and company policies through automated compliance tracking
and reporting.

- Risk Mitigation: Manage risks related to employee data security and


privacy through robust IT security measures.

7. Enhance Organizational Agility:

- Scalability: Support organizational growth and change by providing


flexible and scalable HR solutions that can adapt to evolving business needs.

- Innovation: Implement innovative HR technologies that enhance


organizational capability and responsiveness.

8. Improve Cost Efficiency:

- Cost Reduction: Reduce administrative costs by automating processes


and minimizing manual interventions.

- Resource Allocation: Optimize resource allocation by improving HR


process efficiency and reducing operational redundancies.
The objectives of e-HRM are to enhance efficiency, improve data
management, support strategic decision-making, boost employee
engagement, facilitate talent management, ensure compliance, enhance
agility, and improve cost efficiency. By achieving these objectives, e-HRM
helps organizations manage their human resources more effectively and
strategically.

Electronic Human Resource Management (e-HRM) offers numerous


advantages but also presents some challenges. Here’s a balanced view of its
benefits and drawbacks:

Advantages of e-HRM

1. Increased Efficiency:

- Automation: Automates routine HR tasks such as payroll, leave


management, and recruitment, reducing manual effort and increasing
efficiency.

- Streamlined Processes: Integrates various HR functions into a single


system, simplifying workflows and reducing administrative burden.

2. Improved Data Accuracy and Management:

- Centralized Data: Consolidates employee information into a centralized


database, improving data accuracy and accessibility.

- Real-Time Updates: Provides real-time data updates and insights,


enhancing decision-making.

3. Enhanced Employee Experience:

- Self-Service Portals: Allows employees to manage their personal


information, benefits, and requests independently, improving convenience
and satisfaction.

- Better Communication: Facilitates improved communication and


collaboration through integrated platforms.
4. Advanced Analytics and Reporting:

- Data-Driven Insights: Offers tools for advanced data analysis and


reporting, helping HR managers make informed decisions and identify trends.

- Performance Metrics: Tracks key performance indicators and metrics


effectively.

5. Cost Efficiency:

- Reduced Administrative Costs: Minimizes administrative overhead by


automating processes and reducing manual tasks.

- Resource Optimization: Allocates resources more effectively through


streamlined HR operations.

6. Scalability and Flexibility:

- Adaptable Solutions: Scales with organizational growth and changes,


providing flexible solutions that can be customized to meet evolving needs.

- Innovation Integration: Incorporates new technologies and innovations


easily.

7. Enhanced Compliance and Risk Management:

- Regulatory Adherence: Ensures compliance with labor laws and data


protection regulations through automated tracking and reporting.

- Data Security: Implements robust security measures to protect sensitive


employee information.

Disadvantages of e-HRM

1. Implementation Costs:

- Initial Investment: Can involve significant upfront costs for software,


hardware, and implementation services.
- Ongoing Expenses: Requires ongoing maintenance, support, and potential
upgrades, which can add to costs.

2. Technical Challenges:

- System Integration: Integrating e-HRM systems with existing


organizational systems (e.g., finance, ERP) can be complex and challenging.

- Technical Issues: Potential for technical issues such as system downtimes,


bugs, and compatibility problems.

3. Data Security and Privacy Concerns:

- Cybersecurity Risks: Vulnerable to cybersecurity threats and data


breaches, which can compromise sensitive employee information.

- Privacy Issues: Handling and protecting personal data requires strict


adherence to privacy regulations.

4. Resistance to Change:

- User Adoption: Employees and HR staff may resist adopting new


technologies or changing established processes.

- Training Requirements: Requires comprehensive training for HR staff and


employees to effectively use new systems.

5. Over-Reliance on Technology:

- Reduced Human Interaction: Increased reliance on technology might


reduce personal interactions and could impact employee engagement and
satisfaction.

- Algorithmic Bias: Automated systems and algorithms might inadvertently


introduce bias in decision-making processes.

6. Maintenance and Upgrades:


- Ongoing Maintenance: Regular updates and maintenance are needed to
ensure systems remain functional and secure.

- Vendor Dependence: Dependence on software vendors for support and


upgrades can be a challenge.

E-HRM offers significant benefits in terms of efficiency, data management,


and employee experience, it also presents challenges related to costs,
technical issues, data security, and user adoption. Balancing these
advantages and disadvantages is crucial for successfully implementing and
managing e-HRM systems.

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