Role of Information Technology in HRM: Opportunities and Challenges

Sudhakar Kannan, Head - IT and Business Support, codemantra US, LLC | Friday, 24 March 2017, 12:38 IST

Innovation in this digital era has shot up over all vital business exercises. This article envisions the role of IT in real-time measurements of the HRM capacity. It additionally concentrates on the opportunities and difficulties confronted by the organizations in actualizing IT crosswise over HRM work. A few basic zones of HR capacity are additionally highlighted where IT has been executed effectively by different organizations.

HRM depicts a procedure of overseeing and using the employees of the organizations. It involves varied functions, including enrollment and choice of appropriate candidates, providing opportunities to enhance their KSA (Knowledge, Skills and Abilities), evaluating their skills and fixing appropriate pay packages, promotion and incentive procedures, guiding in overall professional success, and in relieving the employees from the company. Essentially there are three sorts of e-HRM, i.e. operational, social and transformational e-HRM. Operational relates with the managerial elements of HR division, social relates with giving data to the representatives and making virtual relationship among them so they can be constantly associated, while transformational e-HRM centers over the key introduction of the HR work. It connects the HR work with business system to accomplish the objectives adequately and productively. It also enables overseeing and sharing the information over virtual systems. 

Significance of using technology in HRM
These days, all types of organizations are making use of innovation in their HR administrations. HR and technology must be integrated. In the present day, organizations are forced to be digital in practically every business area. E-HR enables data accessibility to directors and representatives at anytime and anyplace. Right now, an e-HR framework may incorporate enterprise asset arranging programming (ERP), HR benefit focuses, interactive voice reactions, director and employee entryways and web applications. An advanced e-HR framework permits us to analyze the data and decide, direct investigations, to communicate with others (without counseling the HR office). 

Scope of IT in HRM
1. Human Resource Planning: With the help of innovation construct databases, voluminous information about the employees can be stored, which not just aides in distinguishing the involved and vacant positions, additionally it also helps determining if the individual is the best fit or not. 
2. Administration: All the basic data identified with the workforce, like their name, address, email, contact no., capability, compensation benefits, encounter, date of passage in organizations, employment status (contract, perpetual, full-time, low maintenance, and so on), are incorporated in a database that can be recovered at 
any time. 
3. Recruitment: The web has brought on the biggest change to the enrollment procedure in the previous decade, as it connects the companies and the job seekers. 
4. Training and Development: E-learning is a progressive approach to enable the workforce to keep pace with a quickly evolving market. By connecting the evaluation process to the HR database, the e-learning framework can be used effectively. 
5. Compensation and Benefits: The e-pay bundles offer straightforward, simple, precise and assessable data on the compensation structure of the employees. 

Opportunities for implementing IT with HR function 
1. Competitive Advantage: Giving customized applications through HRM portals implies that e-HRM can be a key technique 
in innovation. 
2. Accessibility: Data is accessible to everyone, through web or intranet. Any employee can get any information effortlessly HR entryways permit the representatives to get to all the required data at a transgression click. 
3. Rapid and Mistake-free exchanges: Technological innovations have expanded the pace of administration in organizations. Mechanical frameworks eliminate 
human errors. 
4. Interactive Atmosphere: Technology enhances interactions among the representatives through the electronic gateways. Bigger organizations have more data needs, and they can take more points of interest from these data. With mid-size organizations, it enables data spread over various structures and locations.

Challenges associated with HR technology:
1. Fetched: “Technology pulls cost”. An innovation-based HR framework is expensive, but once executed, it decreases the operational expenses. Substantial organizations may introduce HR gateways/bundles, while small- to mid-size organizations find it difficult to bear the cost. 
2. Acknowledgment: Because of IT usage, different issues like skills/knowledge for its utilization, job dangers and so on dependably ascend in its direction. Acknowledgment from the workforce is required for using it up to its fullest. 
3. Back-ups and Security: Maintenance cost is high if we need to prevent hacking/open to all arrangement/illegal acts. A lot of thought is required on these lines. 
4. Increasing Isolation: Due to the arrangement of virtual networks through intranet or eHR gateways, the individual collaboration among the representatives has reduced. In the traditional frameworks, they collaborate with the representatives, and were integral to the organization. They are disengaged from each other now, and are connected for all intents and purposes through such entryways only. 

In the field of HRM, innovation has made a drastic change towards reducing cost and increasing proficiency. It reduces the administrative expenses greatly. It enables data management, which helps in taking vital choices. It bolsters HR strategies and hones the organizations. Although there are a few practical difficulties, innovation and HRM are inseparable ideas.