E-HRM Practices and its impact on Organizational Performance: A study on the Manufacturing industry in Bangladesh

Abstract

Electronic Human Resource Management (E-HRM) is a relatively new term for developing countries like Bangladesh. Its practice is relatively low for the manufacturing industry since most of the manufacturing industry is labor-intensive, so E-HRM is ignored. With the new era of the twenty-first century where most of the work will get automated, the scale of production will increase and human resource management will become dramatically complex, so E-HRM is the solution. In this research, we find the current level of E-HRM practices on the manufacturing industry in Bangladesh and its impact on organizational performance.

There are three levels of E-HRM named “Informational, Interactional and Transformational”. For measuring organizational performance, we look at Six dimensions namely ‘’ Effectiveness, Efficiency, Quality, Timeliness, Finance’’. For measuring E-HRM practices we chose nine components which are “Recruitment System, Employee System, Information Management System, Salary Management System, Learning and Training System, Idea and Creativity Exchange System, Assessment System, Welfare System, and Career Development System”.

We took NO E-HRM practicing organization as base performance and compare it with E-HRM performing organization to see whether organizational performance increase or not. We found that Informational E-HRM practicing organization performance increases 73%, Interactional E-HRM practicing organization performance increases 197% and finally, Transformational E-HRM practicing organization performance increases 242% than No E-HRM practicing organization.

We also compare nine E-HRM practices with organizational performance to see whether there is a significant relationship exist or not. We found that ‘’Learning and Training System, Salary Management System, Assessment System, Welfare System, Recruitment System, and Career Development System have a positive relationship with organizational performance. On the other hand, Idea and Creativity Exchange System, Information Management System, Employee System have a negative relationship with organizational performance. The more humanistic approach is required in case of idea and creative exchange system and Employee management system since there is a transition period going on in HRM. Information Management is negative due to the size of the organization. Most of the organization in Bangladesh is not large enough to reap the benefits of the information management system. So, in case of a smaller organization, it acts as a burden. Overall There is a significant relationship between E-HRM practices and Organizational performance.

E-HRM benefits to cost must be compared when Implementing E-HRM. Organizations need must consider before implementing E-HRM. Most importantly remember E-HRM is just the advancement of HRM functionality based on sophisticated information, communication, and technology. So, a study must be conducted before implementing E-HRM to see whether the expense worth it or not.

Keywords: Electronic Human Resource Management (E-HRM), Organizational Performance, E-HRM Practices, Level of E-HRM

DOI: 10.7176/EJBM/11-6-07