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E-HRM Challenges and Opportunities
Abstract
HR executives are looking to technology and the information it provides to help them drive decisions that will lead to success of the organization as a whole (Wilcox, 1997). Snell, Stueber, and Lepak (2002) observe that HR can meet the challenge of simultaneously becoming more strategic, flexible, cost-efficient, and customer-oriented by leveraging information technology (IT). They point out that IT has the potential to lower administrative costs, increase productivity, speed response times, improve decision-making, and enhance customer service all at the same time. The need for cost reduction, higher quality services, and cultural change are the three main forces that drive firms to seek IT-driven HR solutions (Yeung & Brockbank, 1995). The rapid development of the Internet during the last decade has boosted the implementation and application of electronic human resource management (e-HRM) (Strohmeier, 2007). According to Strohmeier (2007) e-HRM 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. Virtual HR is emerging due to the growing sophistication of IT and increased external structural options (Lepak & Snell, 1998). Surveys of HR consultants suggest that both the number of organizations adopting e-HRM and the depth of applications within the organizations are continually increasing (CedarCrestone, 2005). IT is beginning to enable organizations to deliver state-of the- art HR services. Many experts forecast that the PC will become the central tool for all HR professionals (Kovach & Cathcart, 1999).
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