Impact of information technology on human resource management (2023)

This is a guest post by Asma Niaz. Asma is an Academic Writer at Zoe Talent Solutions and loves to write excellent content on various educational topics, programs, trainings and courses. Zoetalentsolutions is a premium teaching department offering highly professional servicesStaff courseto stand out in your workplace.

Posted on 7/12/17. Changed on 01/16/20.

Today, business-savvy entrepreneurs have recognized the power of information technology (IT) tools to achieve business goals. It not only helps to achieve corporate goals, but also optimizes work processes.

Human resource management (HRM) includes activities such as recruiting, training, developing and rewarding employees in the organization. HRM should aim to achieve human resource competitiveness by providing ongoing education and training programs for the personal and professional development of the organization's employees.

It has been widely demonstrated that information and communication technologies (ICT) such as the internet, mobile communications, new media and others in HR can make a major contribution to compliance with the organization's HR policies. Technological advances can have a major impact on an organization's human resources department. It enables the company to improve its internal processes, core competencies, relevant markets and organizational structure as a whole.

Human resources must focus primarily on the strategic goals of the organization. These strategies should aim to integrate a strategic IT plan for the organization. These are activities related to any development of the company's technological systems, such as B. Product design (research and development) and computer systems.

Technology development is an important activity for the innovation process within the company and can involve acquired knowledge. In context, all activities can have some technical content and lead to further technological advances.

Information technology can have a greater impact on organizations that exist in a dynamic environment. This will lead to greater efficiency and effectiveness of the HR department. Therefore, using the IT application for database management and pre-contract system will increase the efficiency of the company.

However, innovation in human resource management can manifest itself in a number of ways:

1. Find solutions quickly and flexibly during a negotiation
2. Identify new ideas for products and services.
3. To identify new markets.

Innovations like these are complemented by information technology to have a positive impact on HR. Rosabeth Moss Kanter, one of the leading management theorists of her day, argued that the renaissance and success of business organizations will depend on innovation (developing new products, introducing new services and operating methods), entrepreneurship (taking business risks), and inclusion. Management (encouraging all employees to participate in decision-making about work).

Information and communication technologies (ICT) can have the following important impacts on human resource management.

1. Better services for line managers

The main concern of HR and line managers is the success of the company. The main task of the human resources department is to meet the human resources needs of the organization. Strategic planning between HR HH. and line managers, it is important to review forecasts of future business needs to determine whether to train current employees, prepare them for promotion, or hire the highest-skilled candidates to supplement the knowledge base of current employees. Therefore, line manager training and development in IT tools will prepare line managers for a range of managerial roles.

2. Management improvement

HR IT tools that complement management and can improve efficiency and effectiveness, which can lead to the success of the organization as a whole. Currently for exampleSuccess Factors Solutionshas developed a talent management HR IT tool for Hilton Worldwide that has global deployment capability. Businesses around the world are striving to improve business performance, regardless of company size or industry. Managers within the organization measure performance, sometimes by comparing it to areference point. They analyze and evaluate their findings and design their controls accordingly to improve the organization's performance.

According to the Gallup poll, engaging employees in organizational goals is the key attribute of every organization. Management must also ensure that all departments improve their processes and controls and align their activities to achieve better competitive differentiation for the company through what and how people do it. These are best leveraged with HR IT tools tailored to the organization.

3. Effective recruitment

Nowadays companies have realized that effective recruitment is not possible without the use of IT. Organizations are now using Internet job portals to search for the best candidates for the position. The process has prevailed through the use of the Internet, since many people become aware of the offer and thus the probability of hiring efficient employees increases.

On the online portals, employers can present all the necessary information about the work, career and personal development of each employee. This is a great organizational promotional tool. Currently, Envoy has evolvedthe axes, an IT recruiting tool that breaks down where a potential candidate's core values ​​lie. HR IT tools not only help to recruit the best potential, but also to keep them.

4. Data Management and Critical Analysis

Data management becomes easier when IT is used and paper is eliminated. Much of the monotonous work is no longer manual. This increases the efficiency of work and the effectiveness of work. Organizational performance can lead to timely business success, whether in a stable or unstable environment. Jobs that don't offer much variety in performance and are inherently very repetitive are disliked by employees and eventually result in low employee retention or reduced effectiveness.

Employee performance data can be more critically analyzed by HR IT tools when it is online and easily accessible to all. For example,Zenefitsrecently developed a human resource management software tool that makes Passport completely paperless. The tool is more sensitive to the hierarchy and pings the admin for approval once submitted. In this way, the individual can save themselves the hassle of filling out the documents. By developing this HR IT tool, Zenefits Passport has helped radically simplify and manage its internal HR processes.

5. Inventory Management and Personnel Management Tools

Experienced entrepreneurs describe how a company's performance can be made more effective and efficient through customer proximity, operational efficiency and leadership. Customer needs must be met through personalization and delivery of outstanding customer instances. For this purpose, organizations use HR IT tools to provide a universal range of products and diversify the business by providing improved products and services.

6. Cost reduction and efficiency

Significant benefits can be gained as various reports can be generated using IT tools.

Xero wanted to conserve its resources and make it easier to manage. Xero then implementedby PlanSourceThe ACA benefits system and compliance technology with your payroll provider and now all your benefits are in one place and easily accessible. This leads to cost reductions and efficient workflows. Johnson, Scholes, and Whittington were right in saying, "Poor performance can be the result of an inappropriate configuration for the situation or an inconsistency between structure, processes, and relationships." The performance of the organization can be increased through the implementation of management by objectives and the use of a participatory management style through human resource IT tools. The management of an organization is accountable to the business owners for the organization's performance and achievements. Managers can only perform well and justify their authority if they achieve desired economic outcomes, such as the profits they intended to make over a period of time. Management often uses operations research to maximize profit, performance, utilization and throughput. An organization's management typically creates a measurement system to set change goals and measure the organization's performance.

7. Customer Service and Personnel Management

The organization's performance can also be described by evaluating the reliability of the service and understanding the quality of the organization's customers. Value can come from providing a reliable service, so customers know they will get service on time, when promised, with a good level of service. As organizational change is inevitable, critical success factors and key performance indicators need to be reviewed and an appropriate HR IT tool designed for better quality of work. Doing quality work and delivering quality results will increase the organization's performance.

8. Career development and human capital management

The career planning tool is a learning and knowledge-based system that helps successful entrepreneurs around the world to manage their personal development and career paths and those of their employees. Performance appraisal and career advancement can be an important motivator for employees to work effectively and efficiently. An organization's performance measurement and reward systems establish priorities, ie what is important and what is not so important. Therefore, strong performance appraisal systems, the HR IT tool, are vital for the organization. The system must be robust in order to be trusted. Compensation systems need to be adapted to reward managers and other employees based on performance targets stored in HR IT tools. Employees should be rewarded for their performance based on desired behavior and results based on HR IT tools database. According to Vroom, one of the top time management theorists, instrumentality (reward system) also affects the motivation to increase organizational performance. Managers must deliver on their value propositions and try to ensure that employees believe management is delivering on its promises. However, performance goals do not usually have to be financial goals. They can be done in other ways, such as B. Recognition, promotion, etc.

One of the most important HR processes is the core process of personnel development. This HR tool provides all information for employee succession planning, overall performance assessment and individual potential assessment including a detailed employee profile. It also involves a regular agreement between the individual and the supervisor on business goals over a period of time. This leads to a continuous development of the employee's career. The great advantage of this tool is that the data entered into the system once is stored in the database and can be retrieved later. This also results in significant cost savings. Recently, Standard Life Group provided a tool for optimizing staff costsOracle Human Capital Management solutions. It also contributes to the company's strategic transformation by creating an empowered workforce. Employees need feedback on their performance. Employees must be informed of their actual performance and their expected performance. In this way, they know their own level of performance within the organization. The bonus should be reserved for employees who work overtime and deliver efficient results. This HR IT management tool contains all these data.

According to the survey of37 companiesIn Turkey, which uses IT in HRM, the employees stated that their business environment satisfies them and they work efficiently. The survey confirms that these companies use HR IT tools and must contain all HR processes that support all parts of HR, from the “recruitment to retirement” functions within the company.

HR IT tools have great organizational effects; Provide better services to line managers, serve as a channel connecting personal policies and personal processes across the organization, facilitate human resources management in the enterprise, provide critical data for strategic personal decisions, and enable HR assistants and hiring managers to capture them quickly and analysis of information Reducing labor costs when conducting personal activities.

Globalization allows us to see how IT can contribute to the fulfillment of business strategy within the framework of human resource management, in order to orient the company towards quality and to achieve market competitiveness. Research shows that information technology makes it possible to achieve HR goals moderately, and an accurate HR information system implementation plan can significantly support the HR strategy in the company to achieve the defined Key Performance Indicators (KPIs). Above all, this should contain what is to be achieved. It means how HR IT tools can support the KPI and what kind of HR IT tools should be supported.

The following was added on 01/16/20.

9. Automation of HR processes

Human resource management is an incredibly complex field that encompasses many processes. And it often happens that HR professionals spend too much of their precious time on mundane and monotonous activities instead of focusing on more serious problems.

Implementing technology into the HR workflow frees professionals from a lot of routine work. Process automation eliminates paperwork, speeds up the execution of many tasks and contributes to more efficient human resource performance.

Technological advances mean companies can take advantage of the latest innovations, such as B. Machine learning to evaluate resumes and augmented reality to onboard new hires.

However, it is important to remember that the entire field of HRM is not possible without people. Much depends on the empathy and expertise of an HR specialist, but the use of technology can significantly improve the quality of an individual specialist's work.

10. Availability of Personnel Tools

A while back, HR professionals struggled with endless phone calls, emails, and paperwork. They had dozens of processes and tasks to consider. There are now hundreds of HR tools specifically designed to facilitate and streamline the work of HR professionals.

HR software features include:

• Optimization of workflows
• Organization and management of employee data
• Creation of detailed employee files.
• social cooperation
• Wage, holiday and bonus administration

The transition to a digital work environment enables modern HR professionals to complete certain tasks faster and thus pay more attention to topics such as employee satisfaction, optimization of recruitment processes and onboarding, employee motivation, etc.

11. Advanced Candidate Search

One of the main tasks of an HR specialist is to find and recruit the specialists that a company needs at that point in time. IT has significantly changed the approach to these processes.

Initially, the Internet offered HR specialists the opportunity to search for candidates worldwide. Freelancers have become commonplace now, and working with freelancers can be even more beneficial than hiring an in-house team. Working with freelancers offers numerous advantages: flexibility, affordable rates, specific skills and much more. This allows HR professionals to fill the gap their in-house team is missing and find a perfect candidate anywhere in the world.

Second, HR professionals can use advanced tools (e.g. artificial intelligence) to filter CVs and pay attention only to the profiles that exactly match the requirements. This significantly speeds up the search process and helps to find the most suitable candidates.

Finally, HR professionals now have access to various online platforms where they can find candidates: Stack Overflow for developers, Quora for executive positions, etc. The availability of such resources expands the talent pool and opens up new recruiting opportunities for HR professionals. .

12. A new way of branding a company

Company branding is an important factor in attracting and retaining employees. Thanks to IT, companies today have the opportunity to build a strong online presence and reach numerous potential candidates with minimal effort.

Complete website branding and design, presence in key markets and online communication - all these factors promote direct interaction between a candidate or employee and a company.

Social networks also play a very important role in company branding. Social platforms have become the number one source of information, and candidates are more likely to search for a company on LinkedIn than through traditional sources. Therefore, companies have to consider what image they want to build and what values ​​and messages they want to convey to users.

Finally, don't forget about mobile business apps. A mobile app is an amazing way to rebrand and add interactivity to a business according to the needs and interests of a target audience.

IT has not only greatly expanded the talent pool, but also the way HR professionals can reach top talent and promote the company online.

13. Analytics gives access to more data

Eventually, information technology gave HR professionals access to sophisticated analytics, taking their work to a new level.

Until now, HR professionals have had to rely on guesswork and intuition when evaluating employees, their motivation and satisfaction, and the efficiency of HR processes. Now they can trust the data and see all processes and work results in numbers.

With the help of analytics, HR professionals can track the candidate journey and see at what point most people decline (or accept) an offer, how many people are involved in the processes, what percentage of employees use their email Electronics open and many other important . events.

In this way, HR specialists can make data-driven decisions and use past experience as a basis for redesigning and optimizing current processes.