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Managing HR; the digital way

Information technology has changed the way in which organizations carry out its day-to-day

operations. Developments in the field of IT have shape up the way the HR function is performed in

organizations. This situation has created a strategic and a dynamic role for HR managers to meet

challenges in an organization. The impact of information technology has affected human resource

management in its many facets.

Carrying out recruitment activities with the use of the internet is one of such new development. E-

recruitment is growing faster and a study reveals that online job seekers have increased by 50%

worldwide in 2001. The simplest form of online recruitment is where an organization post an

advertisement of a vacant position in a website for a fee. Most websites do maintain a separate

webpage or a link on employment opportunities or else they provide applicants the opportunity to

submit their resume for vacancies that are likely to occur in future. The most advanced form of

online recruitment is where organizations with corporate website provide online application or

maintain a separate webpage as Careers or Vacancies which provide information on existing

vacancies, qualifications required and application procedure. Organizations with futuristic vision

have gone beyond this level as to add a link on their corporate website inviting individuals who are

interested in joining the company to provide information through the website. This particular link is

a part of the database which maintains the list of future prospects that have shown interest in joining

the company. Some specialists call this as Talent Resource Management (TRM).

Headhunting firms or Executive search firms are working towards the e way by developing and

maintaining websites and they advertise vacant positions and invite applications online with the use

of such websites. These organizations do maintain a database of future prospects and interested

individuals are provided the opportunity to apply online.

Once applications are received employers would streamline them to select the suitable applicants.

Most advanced HR software provides sorting out options for selecting suitable candidates. Initially

the sorting out is based on the policy set by the organization. Most jobs require a test of various

skills and analytical ability of selected candidates. IQ tests, psychometric tests, general knowledge

tests and language application tests are highly used for this purpose. Nowadays these tests are done

online or in a networked IT lab and marks are awarded immediately after the candidate hascompleted the tests. Individuals that meet minimum criteria are selected for the second phase of

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selection. E-selection of this nature is carried out to fasten selection of new employees and to

reduce the burden of the organization and of the HR staff.

E-training or online training is emerging and provide participants the opportunity of high interaction

and knowledge sharing. All the resources are electronically provided and highly interactive sessions

are carried out in much convenient manner. Low cost, high focus of employees, increased flexibility

and sustainability of content and learning is popularizing e-training. Internet connection speed,

computer configurations are vital for a successful e-training session.

Todays organizations are shown to be interested in building intranet to increase the interaction

between internal customers and associates of the organization. The whole idea is to generate

enthusiasm among employees on the importance of information sharing and communication. If theHR site is a standalone site then it would be linked up with the organizations intranet. Improving

self servicing for internal customers is another objective of developing intranet. The most advanced

site would provide access to the employee information system, e-attendance, e-leave application, e-

training materials and previous performance data.

Large organizations or group of companies with intranet facility would provide news on vacant

positions on the intranet inviting suitable applicants within the group to apply. Long-term cost

savings, standardization of process and reducing the number of inquiries to the HR staff are some of

the benefits of such intranets.

E-mail which all of us are familiar with is used for receiving applications and communicating with

employees in the organization. When organizational units are geographically dispersed e-mail is

used to access all the units in a short period of time. Reduced paper work and reaching many

numbers of people at one click are some of the benefits of e-mail.

Software solutions for HRM is catching up fast and much HR software are available locally and

globally. The more advanced HR software would include recruitment management module, e-

selection module, training administration module, performance management module, payroll

management module, employee information system, attendance record system, leave management

system, claims processing system, learning needs assessment system, overtime management system,

security features etc.

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Software companies operating in Sri Lanka has developed HR software for local and foreign

organizations. Some local organizations have in-house built systems for their convenience. Payroll

and employee information system seems to be the most popular among local organizations.

The role for us is to familiarize entrepreneurs and small and medium scale industries on IT

solutions for organizational processing and encourage new curriculum to be adopted on business

education and business programming for the development of our country.

In creating the e-HR environment organizations should develop a fully integrated Human Resource

Management System (HRMS) and the system should match the core requirements of the HR

department which again depends on the needs of the organization. Further the organization is

responsible for communicating the changes to the employees effectively and training users to befamiliar with the system.

Disable people of working age, people with minority languages and diverse backgrounds are

concerned over the digital approach whether it would deprive them of opportunities. Further

organizations will have to decide to outsource the HR administration activity to a service provider

which would require downsizing the HR department and/or shifting HR staff to the supplier. These

issues will have to be considered in a humanitarian way.

Certainly IT has carved out a new scope for Human Resource Management. Paper based

administration consumes 80% of the HR departments time and the digital approach is to reduce the

HR administration time and cost, increase accuracy of HR data, routinized transactional activities of

HR and increase reporting functionality. The new role for HRM is to empower the employee and

generate maximum value for the business.

The article is written by M M M Shamil (Lecturer Department of Commerce & Financial

Management University of Kelaniya) and D M M M Dissanayake (Research Operations

Executive) this article was published in the Daily News, News Paper in Sri Lanka.