The Impact of E-HRM on Organizational Performance: Evidence from Selective Service Sectors of Bangladesh

Abstract

The study has been conducted to endeavor if there is any relationship between thirteen electronic HRM activities (independent variables) and organizational performance (financial and strategic). The thirteen E-HRM functions are e-advertising, e-application tracking, e-recruitment, e-selection, e-learning, classical & virtual training, e-performance management system, e-compensation & benefit, HRIS & e-communication, e-personal profile, e-grievance tracking & handling, green HRM and e-leave. The research was carried out with a sample size of 299 mid & supervisor level managers and 228 top level managers of 46 private and public firms of 8 service sectors of Bangladesh. The convenience sampling technique has been used to choose the respondents and data have been collected through a detailed structured questionnaire from the respondents. Results after a careful and detailed analysis revealed that there is a positive relationship between e-application tracking, e-selection, e-learning, e-performance management, e-compensation & benefit, HRIS & e-communication, e-personal profile and e-leave with financial performance. Among them, HRIS & e-communication, e-compensation & benefit and e-leave have a strong positive relationship with financial performance. In contrary, e-advertising, e-recruitment, classical & virtual training, e-grievance tracking & handling and green HRM have a negative relationship with financial performance. Among them, green HRM, e-grievance tracking & handling, classical & virtual training and e-recruitment have a strong negative relationship with the financial performance of the firms under study. Again, e-application tracking, e-selection, e-learning, e-performance management, e-compensation & benefit, HRIS & e-communication, e-personal profile and e-leave have a positive relationship with strategic performance. Among them, HRIS & e-communication has the strong positive relationship followed by e-compensation & benefit and e-leave. On the other hand, e-advertising, e-recruitment, classical & virtual training, e-grievance tracking & handling and green HRM have a negative relationship with strategic performance of the firms this study. Within them, e-application tracking & handling, green HRM, classical & virtual training and e-recruitment have a strong negative relationship with firms’ strategic performance. The authors are hopeful that the study might be proven useful for decision makers of the different firms who wish to reduce costs and adopt environment friendliness to gain competitive advantages over the rivals. It might be also helpful for HR practitioners and academicians who have intention to explore new windows in this regard.

Keywords: E-HRM, Firms, Organizational Performance, Human Resources, Human Resource Information System,