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Chitral Amarasiri, Human Resource Director of Hemas Group of Companies was invited to present a paper at a recent International 

Chitral Amarasiri

Conference on 'Information Technology in Management organised by the Indian Institute of Management and Technology, Cuttack. He is also President of the Association of HR Professionals of Sri Lanka and Director of eSenze Solutions Pte Ltd., his paper on digital approach to meet modern HR needs' outlines a new approach for HR, using information technology and modern milestones in HRM, especially transformations from the traditional process to e-HRM.

The paper is intended to enlighten human resource professionals and enthusiasts regarding the "catch twenty-two' question on the pros and cons in this emerging phenomenon - 'e-HRM'.

Information technology has been known to add value and comfort to human lives. As such, the advent of digitalising the HR process should compliment its predecessors. Perhaps it does perhaps it does not. An objective exploration into its viability is thus a worthy matter.

In order to give rise to a conceptual framework, the paper outlines at the outset the nature of HR as we use to view it. Thereafter, the journey begins to explain the new tools employed in HRM Human Resource Management and the distinct landmarks left behind as a residue throughout the years. These procedures have weathered the test of time and thus have the privilege of being a part of the modern conceptual framework as well. In doing so, the article stumbles on obstacles and bottlenecks - conceptually, operationally and ethically. Thus the examination and test of its viability starts.

At the end the paper walks through a maze of virtual realities that is intended to stimulate your wildest dreams. However, it distracts the vivid reader to the fact that what is being read is a dream today but a reality tomorrow. As such, there is much that we have to prepare and practise if we are to join the tide. As the tide does not seem to stay for a surfer, so is this process of digitalising HRM. It is not a fad or fashion, but a very real force driving contemporary businesses and practices. If we choose to ignore it, we will be left behind with the rest of the laggards. It concludes by leaving the reader in an absolute bliss about the wonders of the future, but with a sense of insecurity and ambiguity. It is anticipated that when one does wake up the next day - it would have been, not a dream but a very real phenomenon.

Evolution of people management

Articulating the patterns of change and growth that has taken place in the people management arena gives a sense of direction and appreciation of the modern context. As such, we shall outline the salient features to enlighten only the major transitions. Holding constant the management techniques passed down from generations of civilisations, the modern reference point would be to sight the "birth of the factory".

It is at this point that one begins to understand the dynamics of participating in organised work and the importance of people management. As a result of the industrial revolution, pioneers such as F.W. Taylor promulgated the mass production concept. Taylorism focused on processes and failed to give a thought for its creators - 'the people'. The Fordist era built on these scientific management styles and found by grid methods to work with. As a result, the first mutation was born and it was called 'Personnel Management'.

Many psychologists, management theorists and mathematicians were aroused within this period to bring about unique ideas that may propagate a 'best practice'. The work of industrial psychologists, Mintzberg, Cadburg, Elton Mayo and the like have added in comparable manner to supplement the body on knowledge. The old record keeping methods were found to be very effective and much sought after, even up to date.

This is, however, with the acceptance that the "humane" angle has surfaced magnificently throughout the years, giving more emphasis on people as an organic being as opposed to a mechanical resource. Perhaps the "U" curve is reshaping the process as the usage of electronic media seems to reduce the human touch and moves back to the old impersonal methods.

Resources were copied and information flow seemed to be opening up together with the territorial boundaries diminishing. Capitalism was seeing a new dimension altogether. The only resource that was unique was the 'Human Resource'. Being able to develop on this component was thought of as a wise decision.

It was at this juncture that HRM took flight. The procedure revolutionised the world 'Leverage in business'. Even during the great depression, when right sizing and re-engineering with massive job losses were the order of the day, HRM succeeded in bouncing back time and again and minimising the damage. Commitment, motivation and leadership are virtues that have been imprinted in HRM. It is brought through correct practices and procedures.

Today we are at a point where technology is dictating the manner in which humans would need to modify their behaviour to suit the best case scenario. It is ironic as the same system was invented to make the task so much easier for the human being. However the freedom and equity of employees, in terms of information and knowledge are spreading fast.

AT this juncture, one would appreciate the historical overview of HR and its developmental revolution. Thus, one would realise that the modern practices of HRM would encapsulate much of the experiences and mutate to formulate a better practice for all concern. The question is at what cost and sacrifice. The next part would present modern virtual realities of e-HRM, that would answer the question in detail.

Modern HR needs

Technological, economic and political changes and their implications on the social, cultural and business environment, consumer expectations and employee relations are some of the significant changes that affect most organisations. Globalisation of the economy augmented by competition in local and international markets have had an impact on this transformation.

Today many companies are focused on profitability through growth, leverage information for business efficiency, management of intellectual capital and geared for continued change. Organisations need to build new competencies to face these new challenges.

These changes would compel organisations to re-engineer their internal business process to exceed standards and to operate in a highly competitive market. As a result, not only HR policies and practices, but the foundations of the basic profession in terms of its authority, responsibility and expectations would mutate. Thus the realisation of better customer service, cost efficiency, speed and innovativeness becomes paramount.

It is interesting to note that 'every line manager is an HR manager' and more importantly, 'every employee is becoming an HR specialist'. This decentralisation is purposeful, meaningful and compliments the dynamic change process.

When dealing with an impulsive environment, just in time information becomes imperative to the decision-making process As such, the role and responsibilities of the HR specialist as well as the HR department have changed, transforming the functional specialist to a business partner thus leading towards becoming a business leader. Accordingly HR value addition is taking a new turn where it is transforming from a services deliver to a service broker. 'The Internet' coins all these aspirations and deliverer connectivity and speed, thus leading many services online, making life that much easier.

New demands in a "nutshell"

1. Ability to measure the value of HR and its contribution to the bottom line.

2. Every employee becoming an HR specialist.

3. Ability to adopt online HR services, solutions and technology to be used as a strategic business tool.

4. HR value addition on transforming from services deliverer to service broker.

5. Emergence of a culture that will encourage continuous learning, innovation, knowledge management and performance driven.

6. Multi-directional organisational communication via personal portals.

Strategic benefits of e-HR

1. Improved and productive HR services to internal customers and reduce routine administrative costs.

2. HR specialists will have adequate time to focus on strategic HR services and issues.

3. Employees will be considered as mature adults and they will interact with the company and among themselves in a more sensible and effortless way.

4. High employee motivation and ability to attract better candidates.

5. Creating an environment which will be very conducive for high performance.

A walkthrough in the virtual HR world

The purpose of a digital approach would stimulate the expert HR reasoning ability of decision-makers and employees by facilitating them to draw conclusions from the reliable, accurate, analytical facts and figures. As such, it will enhance their decision-making capability and should foster employee contributions and solve people-related problems and queries.

An e-HRM approach entails much of these objectives in a manner that delivers results in a quantifiable state and the conventional HR process will be challenged and outperformed. Given below are examples of the digitalising process of traditional HR practices.

Employees resourcesing or e-cruiting

With the rise of the 'global village', sourcing people has become a global effort. As such, the reach and span of the network will govern its success of the application pool. Let us discuss the procedural issues to give light to the actual dynamics and the workings of this system.

The authority to hiring decision will be vested with the line manager and the portal will assist them to carry out the decision effectively. The system will alert HR and generate employee requisitions with a resignation of termination or services of an employee and portal will process the transaction.

Web-enabling applications, ability to conduct psychological tests, assistants to interview panellists on FAQs and ability to simultaneously prepare interview schedules while updating panellists, calendars, evaluation sheets, instruction and advice through the application to complete the process (e-Recruitment will open a new approach for web-based attracting strategies. The attracting strategy would be so fascinating that kiosks would be available in universities and polytechnics where company information, job opportunities and career planning at the company will be available and students will fill web-enabled application for further processing. However, one must keep n mind hat there is a negative ethical dilemma to this process whereby an 'expert system' driven system such as this assumes that the package is an all accepting method that can be used across cultural and vocational diversity. This ethno-centric manner of thinking will hamper the human angle of the process.

e-Performance Management

This will evolve around an assumption that the technology would be used to enhance the employee contribution towards this corporate goals. As such, it should be an online performance management system, where managers have online information, enabling prompt decision making and effective planning, monitoring performance, coaching and ability to identify the progress of key projects. The system should facilitate 360 appraisals at any given time.

Managers should be able to perform strategic analysis and workforce management activities using intuitive, graphical front-end. The digital approach should provide all routine HR information to managers on a daily basis to streamline many routine HR related functions. Remote access would be one of the salient features. Digitalising a human activity mechanises an organic process. As such, the actors or participants are absent. In this scenario, there is a loss of the human aspect.

e-Learning and Development

Ability to use consolidated performance rating generated by the system to identify training needs and ability to track this information and update the individual employee training needs for development purposes.

The appraiser or supervisor should be able to update the employee's skill gap directly based on the daily observations. The system should also provide training entitlement lists, maintaining training courses and institutions, linked with skill inventories and historical training data, training event development, scheduling of training modules and ability to update their calendars, attendance assessment after training and periodical update.

Electronic articles, simulation programmes, video conferencing and video clippings will influence the learning methodologies. More importantly, the impact after training could be assessed. The results of such an appraisal are not curtailed by geographical location as accessibility of information and the ability of query transcend all boundaries.

e-Compensation

The authority for compensation decisions will be transferred to line managers and will be transparent to all employees. The logic of determining the compensation will be based on affordability, market rates and one's contribution. The manager will use consolidated performance rating generated by the system, to develop and ensure implementation of a performance-based incentive scheme. The ability to track HR costs and prepare salary structures should be able to integrate with other HR services areas and the database. The system should be able to maintain the eligibility of all the benefits and allowances granted to individual employees. HR should be able to update this information through the HR portal.

Further, the system should be able to suspend certain benefits due to disciplinary actions. This evolved to a level where an employee would be able to determine his or her compensation package, which is known since it is connected with the company performance. The role of HR would be to design non-tangible benefits to motivate employees. HR will maintain online salary surveys with the help of external parties and the service will be made a available for managers and others through the manager portal.

HR Self-Services and Employee Relations

The assumption here is that everyone has a computer at the office or home and the portal should be able to access through the web. HR manuals other policies and procedure the ability to use the portal facility and facilitating employees to check and update their own records.

HR chat rooms and online corporate surveys apply for job opportunities within the company or related companies. New or existing employees would be able to use intra-net facility to get inducted to the company. Managers should be able to prepare an orientation programme in consultation with the HR division through the system.

Performance-based (performance tracking) and competency-based employee development and career planning are needed. Employees should be able to view different job profiles in their career path and the management should be able to update those opportunities with the concept of succession planning.

To achieve this the HR professional should develop certain indicators. Business leaders and HR administrators would be able to detect any pitfalls pertaining to the employee grievances and organisational ills on a timely basis. Excellent people management would be the condition or employment and managers' capability will be assessed based on their ability to attract, retain and develop fellow employees. The managers' portal with checklists, video clippings on role-plays live legal assistance will assist them to make more effective HR decisions.

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