IMPACT OF ELECTRONIC HUMAN RESOURCE ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF SOFTWARE HUB NG)

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

Human resource is viewed as one of one of the most important assets in an organization. With the globalization of business, human resource management has come to be increasingly more complicated to control throughout the world (Celaya, 2015). As a result of modern technology and learning setting, it is very hard to adhere to a concrete idea of managing human resource throughout the business and worldwide. With the implementation of cloud-based computing, it is gradually and progressively moving towards the HRM process (Willcocks, Venters and Whitely, 2013) while minimizing the intricacy of managing the human resource. Consequently, of cloud computing and using IT support in HRM, E-HRM has become more common and HRM activities become less complex when comparing to very early years (Kumar, 2017).

            E-HRM is a way of reshaping the business world, as they create new internet-based technologies with implications for society generally. However, E-HRM discusses the process of transforming analog and noisy information into digital information, it is used to clarify any modifications in the organization because of their increasing use of electronic technologies to enhance both performance of the company and its scope. Nigeria's vision by 2030 is to be placed as among the 50 most technological nations. Many huge companies have just lately used web-based recruiting systems and web-based training programs as well, trying to implement E-HRM system (Rachinger et al., 2018).

            The world has been changed into a global village. In connection with this, Nasurdin (2012) sees electronic human resource management as using ICTs, internet and Intranet in the organization to accomplish the administrative work of human resources digitally, to provide services to its clients in the very least time, effort, and cost but of excellent quality. Likewise, in the educational institutions, digital human resources management in use of these aforementioned is to offer high quality services to students, staff and other stakeholders, among others. Human resource management that relies on digital (innovation) in their work is considered an essential aspect in improving the performance and effectiveness of the organization, in managing its functions and activities as a result of the organization's excellence. EHRM in organisations essentially involves E-Recruitment process in the organisation, E-Training and Development, E-Selection, E-Performance management, and E-Compensation wage administration.

            The use e-HRM technology in organisations provides a portal which allows administrators, staff and HR experts to check out, extract, or change information which is required for managing the HR of the organization (Strohmeier, 2007). Furthermore, with the use of e-HRM, fewer HR professionals are required since e-HRM gets rid of the "HR intermediaries". The rapid development of the internet throughout the last decade has increased the implementation and application of electronic human resource management. The usage of e-HRM offers a much more effective and tactical method of working to reach the goals. It helps with human resource functions with the possibility to create new opportunities for committing to organizational success. E-HRM is a facet of Human Resource Management information system that is in charge of dealing with both conventional task of HRM and its strategic task. Utilization of electronic human resource management in corporate organisations is the carefully handling of technological gadgets or systems to make the organisational performance function efficiently and effectively. It describes company capacity of enduring the unforeseeable difficulties of the social and organisational environments. It is the sustained use of web-based technologies for developing, executing and incorporating organization and HRM approaches, policies and practices. E-HRM is a modern method of carrying out HRM at strategic position to organizational efficiency, e-HRM can enact as ICT device to accomplish sustainable management. E-HRM can aid organizations to improve their functions relating to HR activities bringing benefits of cost saving, efficiency, flexible services, and employee's participation. It is therefore, necessary to examine the impact of electronic Human Resource on organizational performance by using Software Hub NG as a case study.

1.2       Statement of the Problem

            E-HRM, using web-based innovations for human resource management practices and policies, is growing up within organizational life. From the literature, the researcher has discovered that a lot has been revealed regarding the benefits of E-HRM, however scientific evidence of these benefits still remained scarce. There is no clear proof to answer the question regarding whether E-HRM contributes to organizational performance or otherwise. Consultancy companies, have been behind the first trial to examine whether the initiatives put into E-HRM bring about the anticipated results, however these evaluations have the tendency to have a non-objective air (Ruel et al, 2007). In this study, the researcher is most likely to present the outcomes of a quantitative study on the question whether the extent use of E-HRM has an effect on organizational performance or otherwise. For this purpose, the researcher will determine the effect of using E-HRM applications, defined as the extent to which E-HRM applications are perceived as suitable for their use, and the extent to which employers viewed the resulting HRM practices to be effective, using census studies. It draws on data from multiple sources. This was carried out in Software Hub NG, in Nigeria.

1.3       Objectives of the Study

            The main aim of this study is to determine the impact of electronic Human Resource on organizational performance by using Software Hub NG as a case study. However, the specific objectives are:

i)                   To understand e-HRM application and its impact on organizational performance in terms of innovation.

ii)                 To ascertain the impact of e-HRM application on organizational performance in terms of rapid adaptation

iii)               To determine the impact of e-HRM application on organizational performance in terms of HR process.

1.4       Research Questions

            This study is expected to answer the following research questions:

i)                   What is the e-HRM application and its impact on organizational performance in terms of innovation?

ii)                 What is the impact of e-HRM application on organizational performance in terms of rapid adaptation?

iii)               What is the impact of e-HRM application on organizational performance in terms of HR process?

1.5       Research Hypotheses

            Here are the research hypotheses for this study:

i)                   There is a significant correlation between application and organizational performance in terms of innovation

ii)                 There is no significant relationship between e-HRM application and organizational performance in terms of rapid adaptation

iii)               There is a significant relationship between e-HRM application and organizational performance in terms of HR process

1.6       Significance of the Study

            Organizational performance is measured and evaluated in terms of independent variables which are (innovation, rapid adaptation, human resource process, customer satisfaction, and fast time to market). The researcher applies this study at Software Hub NG; the current study reflects the experience of a developing country (Nigeria).

The current study determines the effectiveness of electronic human resource management in Nigeria's organizations and also explains the effect of implementing technology in the human resource processes and the influence it has on organizational performance.

            The importance of the current study is based mainly on the performance of the services and related technological developments which is supported by effective human resources and able of achieving high satisfaction levels for customers and employees to achieve strategic goals.

1.7       Scope of the Study

            This study is on the impact of electronic Human Resource on organizational performance at Software Hub NG. Therefore, the staff members of Software Hub NG shall be used as respondents for this study.

1.8       Definition of Terms

            The following terms were used in the course of this study:

Human Resource Management (HRM): A variety of processes in all areas of the organization that helps managers to recruit, select, train and develop members for an organization.

E-HRM: An electronic information system within the Human Resources department to store and manage HR resources and processes, such as HR planning (recruitment, selecting, hiring, training, promotion, and layoff) performance management, employee relations. This system has to be accessible to all employees within an organization.

E-HRM Application: The use of an electronic information system within the Human Resource (HR) department to store and manage HR resources and processes effectiveness, such as HR planning (recruitment, selecting, hiring, training, promotion, and layoff) performance management, and employee relations.

Organizational Performance: The analysis of company's progress processes and services compared to goals and objectives in order to achieve sustainability by continuous development.

Customer Satisfaction: The degree to which the products and services supplied by a company meet or surpass customer expectations.

Human Resource Process: The efficiency of the organization in conducting and performing the processes of HR related to planning, recruitment, and selection, training, and HR performance management and employee relation.

Organizational Innovation: The implementation of new business practices, workplace organization or external relations to achieve organizational performance.

Organization Rapid adaptation: It is the ability of an organization or even its components to adapt the changes from the external environment to stay competitive.

Time to Market: the time period between first ideas around a product/ services and its availability to consumers.