The Role Technology Plays in Todays Human Resource Management By John Peterson December 18, 2010 The Role

Technology Plays on Todays Human Resource Management

Introduction

Image via Wikipedia

Traditionally human resource management (HRM) has had a people-oriented approach. However today, when the competitive demands of the marketplace require a reorientation of strategic human resource philosophies and practices, an emphasis are being given to a knowledge-based administration using technology as a tool. This paper will analyze the implications of this new imperative on human resource management.

Literature Review
According to Kenter (2003) todays human resources (HR) tasks cover an ample variety of activities requiring very different skill sets, from compensation and benefit administration (highly quantitative) to employee relations (highly qualitative) (p ix). As a consequence, there are legitimate questions about whether these tasks need to be together on organizational plans in light of new realities and technologies (Kenter, 2003). To be considered successful HR technology must achieve several goals, as described by Walker (2001): (a) Strategic alignment, which must support the goals of a business by helping users; (b) business intelligence, which should inspire new insights and learning, by providing users with relevant information and data, and by answering questions; and (c) efficiency and effectiveness, which must change the work performed by HR personnel, by dramatically improving their level of service, allowing more time for work of higher value, and reducing their costs (Walker, 2001, p. 4). Figure 1

Holistic model of human resource management practices

Note: Source: Niche Consulting Limited (2009). Human resource management. Retrieved from http://www.nicheconsulting.co.nz/hrm_recruitment/hr_consulting.htm Walker (2001) stated that HR technology can help organizations meet their business goals and objectives today and in the future by: Helping managers deploy their workers more efficiently. Ensuring that workers receive proper training and development. Offering new insights on how to increase productivity. Enabling employees and managers to receive needed information faster. Reducing HR administrative costs. Assisting with better employee assessment and selection (Walker, 2001, pp. 10-11).

Lewin (2003) wrote that recent studies of HR management and business performances have found that HRs adopted high involvement (p. 91) practices have resulted in significantly positively associated (p. 91) improvement on market value, rate of return on capital employed, revenue growth, revenue-per-employee rate, productivity, product/service quality, and even organizational survival (p. 91). We can assume from Lewins (2003) statement that the use of technology by HR has proven to assist on the improvement of business performances. However, Lewin (2001) explained that, although we expect all businesses to have embraced this high involvement on technology, only about one of every eight business has done so (p. 91). Probably a solution for this lack of high involvement on technology is for businesses to adopt an HR philosophy which understands that todays customers and clients are used to a technological experience, and as Sartain (2005) elucidated, The mission of the HR department ought to be to synchronize the employment brand with the customer brand (p. 180). The author clarified that, in order for this to happen, HR should bring the customers voice to inside an organization, and

accomplishing that, upper management will empower HR to reflect the customers value proposition (Sartain, p. 180). Lengnick-Hall and Lengnick-Hall (2003) explained knowledge as, information that is linked to potential actions because an individual is able to use it (p. 78). The authors went further and explained that, in contrast, data are any signals that can be sent by an originator to a recipient (human or otherwise) (Lengnick-Hall & Lengnick-Hall, 2003, p. 78). And information is data that are intelligible to the recipient (Lengnick-Hall & Lengnick-Hall, 2003, p. 78). These explanations are relevant when we think HR as part of the knowledge-based economy of today. HR is part of the knowledge management in an organization, and because of this it has to play a role in concurrence with the IT department, and others responsible for generating and manipulating knowledge. See Table 1 on page 5 for the benefits of knowledge management. Table 1 Benefits of knowledge management Benefits of knowledge management Knowledge management can create competitive advantage for a company and its customers. Why benefit occur By sharing information and best practices, organizations create expanded opportunities for market share and financial growth. Furthermore, knowledge management provides a means for organizations to differentiate themselves from competitors. Knowledge management can create a truly customer-focused culture. Appropriate organizational resources can be directed toward solving customer problems or meeting customer needs quickly and effectively. Knowledge management can be a catalyst. Through tools, resources, and systems, it can help ignite creativity and innovation in the development of an organizations products and services. Knowledge management can improve time to market. By leveraging best practices, learning and other time-savers to improve productivity, products can

be introduced faster. Knowledge management can expand a companys strategic options.

By leveraging intellectual property in research and development efforts as well as overall market and business strategy, organizations can discover new ways to create value.

The Role Technology Plays on Todays Human Resource Management Technology is the practical application of science to commerce or industry; the study of or a collection of techniques; a particular technological concept; the body of tools and other implements produced by a given society (Luck, 2010). Technology is here and will continue to progress. To understand the role technology plays on todays HRM we first have to understand business technology. According to Luck (2010): Business technology refers to the integration of computer and communications technologies in support of administrative applications and procedures within an organization. Business technology is constantly evolving. Business technology is required for a successful business.

It is no longer enough for HRM to maintain a narrow operational focus, view its activities as restricted to the limits of its own organization, or to limit itself to traditional human resource (HR) responsibilities (Lengnick-Hall & Lengnick-Hall, 2003), HRs should go above and beyond. The HR field has evolved over time and nowadays HR is under more scrutiny and is more accountable than ever. There is little room for mistakes, which can be overwhelming costly. HRs these days and in the near future have a greater importance in the strategic business partnership with the organization, and for this challenge to be won there is an increasing need for technology to be inserted on its daily operations and on its decision-making considerations.

The Impact of Technology in Human Resource Management

Ivancevich (2001) wrote that prior to the Industrial Revolution most people worked either close to or in their homes. However, mass production technologies changed this and people began to travel to work locations or factories (p. 52). Today, with increased computer technology, there is a move for many to work from anywhere; people are no longer necessarily anchored to one place. Computer technology, especially the Internet, changed that. The trends in technology which directly or indirectly have an impact in HRM are:

Growth in knowledge needs. World trade is growing over three times faster in knowledgeintensive goods and services such as biomedicine, robotics, and engineering (Ivancevich, 2001, p. 52).

Shift in human competencies. Some predict that in 2015 almost all net employment growth will be in knowledge workers (Ivancevich, 2001, p. 52). Global market connection. Technology is dissolving borders and creating an interconnected marketplace (Ivancevich, 2001, p. 52). Business streamlining. Easy to use communication, electronic mail, electronic conferencing, and databases are creating instantaneous dissemination of data to make better decisions to geographically dispersed workers (Ivancevich, 2001, p. 52).

Rapid response. Technology permits quicker communications, which allows faster decisionmaking (Ivancevich, 2001, p. 52). Quicker innovation. Teams of marketing, engineering, and production personnel working in parallel with computer provided files, data, and information develop products faster (Ivancevich, 2001, p. 52).

Quality improvement. The concept of building quality into the entire process of making, marketing, and servicing is enhanced by computer monitoring systems and through robotics (Ivancevich, 2001, p. 52).