E- Human Resources Management (E-HRM) Practices in

Small Medium Enterprises

Puspa Setia Pratiwi(QGC 100009)

Background

“ Serious need in the development/ application of HRM concepts in the environment of SME’s which probably the most important assets for smaller companies to stay competitive.”

Source : Huselid, 2003

Objectives of Study

To identify :– What are the purposes of the SMEs

in using e-HRM applications?– What are the full advantages of for

SMEs are ?– To what extent e-HRM improves

HR processes?

Definition of E-HRM

• The use of ICT in HRM is often referred to as e-HRM, Web-based HR, or virtual HR

• A network-based structure built on partnership and typically mediated by information technology to help organizations acquire, develop and deploy intellectual capital

Source: Lepak and Snell (1998)

E-HRM

E-Staffing

e-recruitmen

t

Compensation

e-Compensati

on

Training & Developm

ent- e-learning- e- training

Performance

Management- e-

performance

E-HRM Practices

1. E-Staffing

• E-recruiting and e-selection are assumed to be the pioneering HRM activities in e-HRM

Source : Strohmeier, 2007

E-Staffing

e-recruitment

E-Recruitment

• Creating brand identity– Increasing employee retention levels– Increasing efficiency recruitment process

• Decreasing administrative burdens in recruitment process– Increasing organizational attractiveness

Source : Cardon & Stevens (2004)

E-Recruitment Systems

• Track demographics and select potential recruits according to a predefined criteria through applicant

tracking systems • Use job boards and corporate

Websites to select the most compatible recruit for a specified job through hiring management systems

(HMS) Source : Bussler & Davis (2001/2002)

Source: http://www.allofe.com

2. E-Compensation

• Effectively designing, administering and communicating compensation programs

• Enabling to look at external payments– Analyzing market salary data– Streamlining bureaucratic tasks– Greater access to knowledge

management databases

• Internal information process quickerSource: Cardon & Stevens (2004)

3. E-Performance

• Generating figures and statistics about Performance more easily–Enlarging span of control for

managers–Facilitating process of writing

reviews and generating feedback

Source: Cardon & Stevens (2004)

E-Performance (cont.)

Macro

•Allocating human resources within the company as part of enterprise resource planning (ERP)

Micro•Measurement and development of the performance of individuals and teams

Source : Cardy and Miller (2005),

Example of Employee Performance Management SoftwareCourtesy : youtube.com

4. E- Training

• Use of distance learning technology :– e.g.: Tutored-Video Instruction

• Firms able to train their culturally-diverse, geographically-diverse workforces

Source : Murray, L. W. & Efendioglu, A.M. (2009)

E-Learning

• Delivering information about learning, knowledge, and skills

• Enabling web based collaborative learning– More flexible & cost efficient than

normal training & development

Source: Cardon & Stevens (2004)

CampFire (Collaborative tools from 367 Signals)

CONCLUSIONS

E-HRM Improves on…

(1) Integrate the IT and business planning processes more effectively

(2) Develop reliable and cost effective applications that support the business needs of the firm faster than competition

(3) Communicate and work with business units more efficiently

(4) Anticipate future business needs of the firm and innovate valuable new product features before competitors.

Thank You

The future belongs to those who give the next generation reason for hope…

(Anonymous)