Research Article: 2024 Vol: 23 Issue: 6
Shaikh Muhammad Fakhre Alam Siddiqui, University of Karachi, Pakistan
Hammad Zafar, University of Karachi, Pakistan
Abdul Hameed, University of Karachi, Pakistan
Citation Information: Siddiqui, S.M.F.A., Zafar, H., Hameed, A., (2024). Electronic human resource management (e-hrm) configuration for organizational success: inclusion of employee outcomes as contextual variables. Journal of InternationalBusiness Research, 23(6), 1-12.
Background Study
This study explores the evolution of Electronic Human Resource Management (eHRM) and its impact on organizational success. It highlights the growing importance of technology in HR functions, its role in improving efficiency, decision-making, and employee experience (Bondarouk & Furtmueller, 2017). The research also explores the challenges faced by organizations in adopting eHRM systems and the potential benefits they offer in enhancing organizational competitiveness and achieving strategic goals (Armstrong, 2006). E-HRM offers enhanced efficiency, flexibility, and accessibility in managing HR procedures, but also faces challenges such as organizational culture, employee attitudes, technological infrastructure, and leadership support (Autor, et al., 2003). Understanding these factors is crucial for organizations to maximize the value of their e-HRM investments. By integrating these perspectives, companies can effectively utilize technology to achieve a durable edge over competitors and foster an environment that values continuous improvement and innovation (Bethke-Langenegger, 2011).
Problem Statement
Efficiently utilizing e-HRM systems for organizational success often overlooks the impact of employee outcomes on performance and well-being, despite automation in payroll, hiring, and performance management.
Gap Analysis
The analysis of e-HRM configuration highlights challenges in integrating advanced technologies, improving data management, enhancing user experience, and aligning strategic goals to optimize its impact on organizational success.
Research Objectives
1. Establish specific employees outcomes that are important to the success of the organization throughout a system of e-HRM environments.
2. Analyze the ways that existing e-HRM methods and systems treat employee outcomes as contextual variables.
3. Analyse the ways that various e-HRM configurations affect specific employee outcomes and how well they work to achieve organizational success.
4. Develop recommendations for optimizing e-HRM configurations to better include and leverage employee outcomes as contextual variables.
5. Conduct comparative analyses across different organizations or industries to understand variations in e-HRM configurations and their impact on employee outcomes and organizational success.
6. Explore emerging technologies and trends in e-HRM systems to enhance the management of employee outcomes and overall organizational success.
Research Questions
1. How is the effect of e-HRM system deployment on productivity and organizational efficiency?
2. What are the key factors influencing e-HRM system adoption and effectiveness in organizations?
3. What are the advantages and difficulties of incorporating e-HRM systems into current HR procedures that are thought to exist?
4. How do employee attitudes and corporate culture affect the effectiveness of e-HRM system implementation?
5. What strategies may companies use to guarantee the configuration and adoption of e-HRM systems?
6. What impact will e-HRM have on retention, engagement, and employee satisfaction?
7. What are the roles and responsibilities of HR professionals inside organizations in relation to the adoption of e-HRM systems?
8. How do HR professionals' roles and duties inside firms change as a result of the deployment of e-HRM systems?
Significance of the Study
E-HRM configuration is crucial for corporate success due to its operational efficiency, decisionmaking, and employee engagement, alignment with organizational goals, flexibility, compliance, and data security. It promotes agility, adaptability to market changes, and mitigates risks associated with regulatory requirements. Research in this area provides academic insights and practical guidelines for optimizing e-HRM practices (Bhardwaj, 2019).
The study by Bashir, Kamran, and Baig from Pakistan's Financial Division explores the impact of e-HRM on business reputation and performance in the financial sector. Using Smart PLS-3 data, the research found a significant correlation between e-HRM and business performance, providing valuable insights for practitioners.
The study reveals significant correlations between knowledge management and E-HRM impact on productivity and innovation in Pakistan's manufacturing and service sectors, with information technology, motivation, and training significantly affecting profitability.
Pakistani data shows E-HRM significantly impacts commercial bank profitability through information technology, motivation, and training, with communication having minimal impact. Successful implementation could increase profitability by 2022, enhancing organizational and personnel performance.
The study examines the strategic alignment of e-HRM in Canadian industrial SMEs, its impact on HR function performance, privacy, and policy communication, and its role in social e-HRM in Italy.
The study examines the impact of e-HRM on employee outcomes and organizational performance in South Africa, Pakistan, and Pakistan's manufacturing sector. It finds that e-HRM indirectly influences performance through job satisfaction and employee performance. The study also highlights the role of organizational agility and culture in influencing long-term performance (Bondarouk & Ruël, 2013).
The study explores the factors influencing e-HRM adoption in Pakistani SMEs, focusing on employee attitudes, resource availability, and traditional HRM procedures. It highlights the importance of e-compensation, performance appraisal, training, selection, and recruitment in achieving a competitive edge. The study also examines the impact of e-HRM practices on commercial banks' performance, revealing positive effects on HRM service quality and employee productivity. The findings suggest that both developed and developing countries can achieve HR efficiency through e-HRM practices (Bravo, et al., 2016).
The study investigates IT training's role in enhancing electronic HRM in Pakistan's textile sector. Findings show a significant relationship between E-HRM and organizational performance. IT training improves business competence and increases performance. The research aims to explore how IT training can improve e-HRM practices.
The study examines the impact of digital human resource management (E-HRM) on Pakistani commercial banks' performance, revealing its significance in operational, relational, and transformation outcomes. It suggests e-HRM can enhance organizational performance and competitive advantage, highlighting future research opportunities (Canatay, et al., 2022).
The study examines the impact of employee satisfaction on e-HRM practices and organizational performance in Bangladesh (Galanaki, et al., 2019). It uses an integrated eVALUE model and examines determinants of different eHRM uses. The research found a strong correlation between organizational performance and eHRM practice, with job satisfaction of HRM experts mediating the relationship. The study suggests further research and practical implications (Ghazzawi & Accoumeh, 2014).
This research examines the adoption and maintenance of electronic human resource management (e-HRM) systems in Indian businesses, comparing their use across manufacturing and services sectors (Goodhue, & Thompson, 1995). It identifies obstacles, motivators, and tools used for HR tasks. The study suggests that e-HRM implementation can improve workforce management and business success if approached correctly and considering all obstacles (Goodman & Svyantek, 1999).
Chen et al. (2005) studied the impact of employee technology proficiency, organizational leadership, and organizational structure on the effectiveness of electronic human resource management (e-HRM). The research, based on data from the Chartered Institute of Human Resource Practitioners, Ghana, found that EMPC and ORG significantly influence the successful implementation of e-HRM systems (Hackman & Oldham, 1975). However, the study found that organizational top management does not significantly contribute to e-HRM implementation success. Internal strategy emphasizes the importance of emarketing to align organizational objectives and employee capabilities (Isaac, et al., 2017).
The study explores the impact of information system success factors, employee satisfaction, and e-human resource use on organizational advantages. It reveals that the quality of information and services affects employees' happiness with E-HRM, which in turn influences their intention to use the system and generates benefits for the company (L’Écuyer & Raymond, 2023). E-HRM has evolved over time to adapt to workplace developments and technological advancements. The increasing adoption of e-HRM is theoretically and practically relevant for academia, as it improves efficiency and aligns with broader organizational goals. Future research should explore how e-HRM can be instrumental for organizational outcomes (Lepak, et al., 2006).
The study is the first empirical test of an e-HRM adaptation of the DeLone and McLean IS success model. It includes six constructs related to IT adoption: perceived net benefit, information quality, system quality, service quality, use, and user satisfaction (Maier, et al., 2013). The results shed light on the measurement and improvement of e-HRM success in HR practice and research. The thesis rests on its limitations and recommendations for future research.
This essay discusses the importance of electronic human resource management (EHRM) in businesses, examining relevant literature, goals, types, uses, advantages, and supporting elements. It highlights the critical role of information technology in HR operations and develops theoretical propositions for managers and business owners to integrate HR practices with IT for better organizational outcomes (Marler & Fisher, 2013).
Electronic human resource management (e-HRM) is a new HR technology aimed at supporting administrative duties in Malaysia's small and medium-sized manufacturing enterprises. Despite its potential to improve management and staff service, local businesses are hesitant to implement it due to concerns about fewer personnel, reduced expenses, and the need for significant investment (Martín-Alcázar, et al., 2005).
This paper explores the impact of organizational innovation on e-HRM strategies, focusing on the mediating effect of knowledge repositories. Previous studies on e-HRM strategies include erecruitment, e-selection, e-training, performance appraisal, and compensation, highlighting the role of knowledge repositories in enabling innovation (Martini, et al., 2021).
The study uses Smart Partial Least Square software to analyze the impact of knowledge repositories on organizational innovation and e-HRM strategies (Melián-González & Bulchand-Gidumal, 2017). Results show a significant positive relationship between knowledge repositories and five e-HRM strategies, highlighting the importance of knowledge repositories (Mishra, 2016).
The study examines the impact of electronic Human Resource Management (e-HRM) on organizational health in Jordanian telecom companies. Data was collected through surveys and AMOSv24 software (Morris & Venkatesh, 2010). Results show e-HRM positively impacts organizational health, recommending the implementation of E-HR platforms for digitalization, cost reduction, and talent attraction. The study also emphasizes the need for electronic staff training programs (Motowidlo & Kell, 2003).
The study explores the impact of e-HRM practices on business effectiveness in the digital era. It focuses on the importance of efficient technology utilization in the new digital era (Obeidat, 2016). The study collected data from 197 companies across various sectors and used multiple regression techniques. The findings showed that e-HRM practices significantly enhance business effectiveness, helping businesses attract and retain top talent. The future of every country's economy depends on how businesses utilize technology effectively (Panos & Bellou, 2016).
This study explores the advantages and challenges of e-HRM in Bangladeshi government organizations using the Technology, Organization, and Environment (TOE) model (Parry & Tyson, 2011). The research focuses on the transition from traditional HRM to e-HRM in state institutions. The study uses 30 semi-structured qualitative interviews at Ministry of Education and identifies microorganizational contexts such as IT knowledge, change process, employee satisfaction, and role conflict. The model is developed based on the current organizational environment and technology (Rajan & Baral, 2015).
Direct Effect
Relationship between Ehrm Use and Performance of The Organization
Electronic Human Resources (e-HRM) systems significantly improve organizational success by integrating technology into HR functions. They enhance employee outcomes, such as satisfaction, engagement, productivity, and retention rates (Roman, et al, 2012). Research shows a positive relationship between e-HRM use and organizational performance, leading to efficiency, accuracy, informed decision-making, enhanced employee experience, and a competitive advantage (Ruël & Van der Kaap, 2012). However, careful planning, technological infrastructure, and data security are crucial for successful implementation. By focusing on employee experiences and technology, businesses can thrive in today's fast-paced business climate and achieve long-term growth.
Performance from the Organization and Its Employees Are Connected
Employee performance is crucial for organizational success in e-HRM configurations. Effective systems that incorporate employee outcomes can boost individual performance, leading to increased productivity, efficiency, and innovation (Strohmeier & Kabst, 2014). Engaged employees deliver higher-quality work, meet deadlines, and contribute positively to team dynamics. Their performance also impacts customer satisfaction, leading to increased loyalty and retention (Sykes et al., 2014). Job satisfaction is also linked to organizational performance, as it increases motivation, engagement, commitment, and innovation. High levels of job satisfaction result in lower turnover rates, better customer service, and a positive organizational culture. By prioritizing employee well-being and engagement, organizations can create a positive work environment, boost motivation, productivity, and achieve sustained organizational success (Tafti et al., 2007).
Employee performance and job satisfaction mediate the relationship between e-HRM use and organizational performance, with performance and job satisfaction in serial mediating the relationship (Figure 1).
Research Paradigm
The inclusion of employee outcomes as contextual variables in electronic human resource management (e-HRM) configurations for organizational success is a paradigm that falls under a positivist or interpretative framework (Tawk, 2021). A positivist approach uses quantitative methods to measure and quantify employee outcomes, while an interpretative perspective focuses on understanding subjective experiences and meanings within the context. Both paradigms acknowledge the complexity of human behavior and organizational dynamics, aiming to develop a comprehensive understanding of e-HRM's role in achieving organizational success (Voermans, et al., 2007).
Research Design
Research on e-HRM configurations for organizational success should focus on employee outcomes as contextual variables. Key considerations include defining the study's objective, understanding how different configurations impact employee outcomes, and considering factors like organizational culture and leadership style (Wahyudi & Park, 2014). A theoretical framework should be developed, and data collected through surveys, questionnaires, and statistical analyses can be tested. Interviews and case studies can provide in-depth insights. A sampling strategy should be determined, and instruments should be developed to collect data (Wijayadne, 2021). Ethical guidelines should be followed and potential limitations and delimitation's should be identified. The findings can be used to optimize e-HRM configurations and contribute to organizational success.
Instrument Design
To measure the impact of e-HRM configuration on employee outcomes, define the configurations and outcomes, review existing literature, create specific items/questions, have experts review the instrument, conduct a pilot test, revise the instrument, and finalize it. Conduct statistical analyses to ensure accuracy and administer the instrument to a larger sample. Use online survey tools for ease of administration and data collection (Yuliaty, 2017). Analyze the collected data using appropriate techniques and report findings in a clear and concise manner, highlighting the impact of e-HRM configurations on employee outcomes and discussing implications for organizational success (Table 1).
Table 1 Constructs, Codes, and Authors in HRM and Organizational Performance | |||
Construct | S Code | No Of Items | Author Names |
e-HRM use | Ehrm | 5 | Tanya Bondarouk |
Employee Performance | Ep | 3 | Huub Ruel |
Job satisfaction | Js | 3 | Bram Timmerman |
Organizational Performance | Op | 6 | Jaap Paauwe |
Pilot Testing
The study tool for Pakistan's banking sector, an online questionnaire on sustainable HR practices and social capital, is based on pilot testing with 90 participants. Feedback from this phase will guide adjustments to improve reliability and align with streamlining response alternatives, ensuring solid insights into sustainability integration and data collection methods (Zhang, 2005).
Normality Testing
Sampling and Data Collection
I have collected 90 responses to all banking sectors after that converted SD method some values are deducted then I collected 67 responses which is very effective and calculated in my research (Table 2).
Table 2 Respondents Profile (N = 88) | ||
Demographics items | Frequency | Percentile |
Gender | ||
Male | 66 | 75% |
Female | 22 | 25% |
Age | ||
18 to 25 | 61 | 69.3% |
25 to 35 | 23 | 26.1% |
35 to 45 | 4 | 1% |
45 to 65 | 1 | 0.5 |
Education | ||
Bachelor | 25 | 28.7% |
Master | 13 | 14.9% |
PhD | 1 | 0.5% |
Other | 29 | 33.3% |
Experience | ||
2 to 5 | 42 | 47.7% |
5 to 10 | 8 | 9.1% |
10 to 15 | 4 | 4.6% |
Below 2 years | 34 | 38.6% |
Demographics
The survey reveals that 75% of respondents are male and 25% are female, with 693.3% aged 18-25, 26.1% aged 25-35, 1% aged 35-45, 0.5 percent aged 28.7, 14.9 percent aged bachelor, 0.5 percent master, 0.5 percent PhD, and 33.3% others (Figures 2, 3; Tables 3-9) .
Figure 2 Represent Relationships between Variables and their Indicators. Path Coefficients Indicate the Strength of these Relationships
Figure 3 Represent Relationships between Variables, with Numbers Indicating Path Significance Values
Table 3 Reliability and Consistency Measures for HRM Constructs Build Reliability and Consistency | ||||
Cronbach’s Alpha | Composite Reliability (rho_a) | Composite Reliability (rho_C) | Average Variance Selected (AVE) | |
EHRM | 0.838 | 0.842 | 0.885 | 0.607 |
ap | 0.691 | 0.709 | 0.828 | 0.616 |
Js | 0.642 | 0.642 | 0.808 | 0.584 |
Op | 0.848 | 0.853 | 0.887 | 0.567 |
Table 4 Discriminant Validity | ||||
EHRM | Ap | js | op | |
EHRM | ||||
Ep | 0.659 | |||
Js | 0.843 | 0.8 | ||
op | 0.813 | 0.787 | 0.834 |
Table 5 Model Fit | ||
Saturated model | Estimated model | |
SRMR | 0.1 | 0.1 |
d_ULS | 1.515 | 1.515 |
d_G | 0.702 | 0.702 |
Chi-square | 234.257 | 234.257 |
NFI | 0.612 | 0.612 |
Table 6 Path Coefficient | |||||
Original sample (o) | Sample mean (M) | Standard deviation (STDEV) | T statistics (STDEV) | P values | |
EHRM -> ep | 0.519 | 0.534 | 0.101 | 5.139 | 0 |
EHRM -> js | 0.396 | 0.405 | 0.122 | 3.243 | 0.001 |
EHRM -> op | 0.451 | 0.446 | 0.144 | 3.136 | 0.002 |
ep -> js | 0.439 | 0.431 | 0.13 | 3.389 | 0.001 |
ep -> op | 0.298 | 0.295 | 0.123 | 2.421 | 0.016 |
Js -> op | 0.15 | 0.151 | 0.162 | 0.926 | 0.355 |
Table 7 Path Coefficients and Statistical Significance of HRM Relationship | ||||||
Original Sample (O) | Sample Mean (M) | Standard Deviation (STDEV) | T Statistics (STDEV) | P Values | ||
EHRM -> ep | 519 | 534 | 0,101 | 5.139 | 0.000 | ACCEPTED |
EHRM ->js | 0624 | 0634 | 0.099 | 6.269 | 0.000 | ACCEPTED |
EHRM->op | 0699 | 0701 | 0.092 | 7.564 | 0.000 | ACCEPTED |
Ep->js | 0439 | 0431 | 0.130 | 3.389 | 0.001 | ACCEPTED |
Ep->op | 0369 | 0361 | 0.108 | 3.368 | 0.001 | ACCEPTED |
Js->op | 0150 | 0151 | 0.162 | 0.926 | 0.355 | REJECTED |
Table 8 Correlation Matrix of HRM Constructs | |||||||
FP | HPR | IC | LKS | RC | SHRM | THR | |
FP | |||||||
HPR | 0.235 | ||||||
IC | 0.074 | ||||||
LKS | 0.128 | ||||||
RC | 0.074 | ||||||
SHRM | 0.01 | 0.195 | 0.152 | ||||
THR | 0.119 |
Table 9 R-Square Values for HRM Constructs | ||
R Square | R Square | |
Ep | 0.269 | 0.257 |
Js | 0.53 | 0.515 |
Op | 0.596 | 0.576 |
Theoretical Implications
The study supports the association between e-HRM usage and organizational performance, showing that increased use leads to improved performance. It also supports the positive impact of e-HRM on individual employee performance, as it strengthens interaction, improves learning, productivity, and work performance. The implementation of e-HRM is positively related to individual employee job satisfaction, indicating that other HRM practices should be implemented alongside e-HRM. The study also found that employee performance and job satisfaction mediate independently and jointly with e-HRM usage, suggesting that employee outcomes can significantly improve organizational performance when supported by appropriate HR interventions.
Recommendation
To improve the effectiveness of electronic human resource management (e-HRM) systems, organizations should consider employee outcomes as contextual variables. This includes implementing comprehensive performance metrics, incorporating feedback features, identifying individual strengths and areas for development, offering personalized training, supporting work-life balance initiatives, ensuring transparent communication between employees and management, regularly reviewing employee outcomes, and prioritizing data privacy and security measures. This holistic approach ensures HR practices align with employee needs and expectations, fosters a positive work environment, and contributes to overall organizational success.
Integrating employee outcomes into e-HRM systems can enhance organizational success by focusing on employee well-being, satisfaction, and engagement. This approach allows organizations to tailor HR strategies to meet employee needs, increase motivation, and maintain competitiveness. Monitoring employee outcomes allows for continuous evaluation of HR practices, enabling informed decisions and a supportive work environment. This strategic integration leads to sustainable organizational success in today's dynamic business landscape.
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Received: 09-Oct-2024, Manuscript No. JIBR-24-15326; Editor assigned: 10-Oct-2024, Pre QC No. J IBR-24-15326(PQ); Reviewed: 25-Oct-2024, QC No. JIBR-24-15326; Revised: 30-Nov-2024, Manuscript No. JIBR-24-15326(R); Published: 07-Nov-2024