E-HRM PRACTICES AND ITS IMPACT ON SATISFACTION OF EMPLOYEES IN PHARMA SECTOR

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E-HRM PRACTICES AND ITS IMPACT ON SATISFACTION OF EMPLOYEES IN PHARMA

SECTOR

Amit Tyagi

Associate Professor, CMD, Modinagar Research Scholar, CCS University, Meerut

ABSTRACT

Pharma sector is the core of Indian economy. Electronic Human Resource Management System (e-HRM System) as a web-based solution that takes advantage of the latest web application technology to deliver an online real-time human resource management solution. It is comprehensive but easy to use, feature-rich yet flexible enough to be tailored to one’s specific needs. The e HRM technology provides a portal which enables managers, employees and HR professionals to view extract or alter information which is necessary for managing the HR of the organization and for making decisions quickly. The World Wide Web has helped modify many HR processes including human resource planning, recruitment, selection, performance management, work flow, and compensation. These new systems have enabled HR professionals to provide better services to all (e.g., applicants, employees, managers), and it can reduce the administrative burden in the field and it is very cost effective. Information systems have become an indispensable part of the pharma industry. This research paper aims to study the role of E-HRM and its effect on the pharma companies and their profitability and employee satisfaction. 50 questionnaires were distributed, out of which, 35 could be used for analysis. The results would be beneficial to the managers who could frame strategies for better utilization of e-resources. This may help to reduce stress and satisfy employees and the overall performance of organization will be improved.

Keywords: E-HRM, Employee Satisfaction, Pharma Industry, Profitability.

I. INTRODUCTION

“The Internet Will Help Achieve „friction free capitalism‟ by Putting Buyers & Sellers in Direct Contact And Providing More Information to Both About Each Other.” – Bill Gates

The need of incorporating E-HRM practices in this sector has emerged. Paperless office can be a competitive advantage to the pharma company and its top-level management. Today the world is based on technology;

everything is getting automated day by day. We hear about the daily news from internet, learn recipes, make payments and keep large databases online. Computers are a very crucial part of human life now; nothing looks possible without internet. This technology can be used for maintain human resources in an organization.

Utilizing electronic resources like web portals for recruitments, tests and interviews through softwares for the selection processes can go a long way in making a dynamic organization. At just a click, there can be huge options of prospect employees for a particular job. The selection process would be standardized and can be used for all employees without much modification. This will surely build trust among new employees who are

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fighting to adopt to the new culture. An organization needs to be forward and aggressive towards the goal they want to achieve, but it all depends upon the fact that what all resources the organisation cater from the environment in respect to human resource etc. Today in this race both domestic and international companies are running in this field to pool the best manpower for their organisation. E-Recruitment is involving the information technology for hiring the employees to reach the masses and to save time. On-Line recruitment helps the organisation to make a cut on cost and time taken to choose candidates. Job portals like monster.com, naukri.com, timesjobs.com, etc. are an aid for e-recruitment. There are various softwares developed like HRweb, PeopleGoal, Synergita, etc. help in performance appraisal of employees online. Such advancements would help succeed in bringing dynamic change for the betterment of the employees and organizations.

II. BRIEF REVIEW

Chamaru De Alwis in his study under the title “the impact of electronic human resource management on the role of human resource managers”, examines background of the e-HR adoption in the Sri Lankan context and its impact on the role of the HR professionals and finds out that 70 % of large scale businesses in Sri Lanka have adopted a moderate level balance beyond that point. At the same time, budget allocation for this adoption shows an improvement of usage within the year 2010-2012. If an organization is going to adopt this, first of all they must evaluate employee attitudes, organizational characteristics, culture and the way of collaborating those with HR and IT.

Anil Kumar Singh in his paper titled “Impact of the HRM practices and organization culture on managerial effectiveness in public sector organisations in India” have succeeded in finding that the HRM practices along with organisation culture play a significant role and affect the managerial effectiveness of the organisation. Training and development, self-realisation, career management and socio-economic support were strong prerequisite of managerial effectiveness in the public sector organisations. The findings of this study are indeed significant for the HR practitioners.

Huub J.M. Ruel; Tanya V. Bondarouk & Mandy Van der Velde in their paper stated that individual assessment of e-HRM applications influences HRM technical and strategic effectiveness. This is especially so in the perceived quality of the content and the structure of e-HRM applications which have a significant and positive effect on technical and strategic HRM effectiveness.the job relevance and ease of use of e-HRM applications do not seem to have a significant positive effect on strategic and technical HRM effectiveness.

Users do not link the relevance of the e-HRM applications for their job, or their ease of use, with HRM effectiveness. This does not mean that job relevance and ease of use are not important in the event of implementing new information technology but rather that these are not important determinants of HRM effectiveness when using e-HRM.

Dr. Aysar Mohammad Khashman & Dr. Haroun Abdallah Al-Ryalat have shown that E-HRM practices, selected factors (E- Recruitment, E- Selection, E- Training, E- Performance Appraisal, E-Communications, and E- Compensation). Solutions offer a multifaceted capability to significantly increase an enterprise‟s ability to manage operational performance (Time, Cost, Quality of service, and flexibility) in Jordanian Telecommunications Sector.The paper showed the role of E-HRM practices in achieving operational

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performance by providing the members of the organization with real information enabling correct right decisions reactions in making orders to enhance operational performance.

Preeti Bharti in her research titled “Impact of E-HRM System on Organizational Performance: A Case study on Pharma Sector” identified e-HRM practices of selected public and private sector pharma companies.

Based on the findings of this study, it can be concluded that selected pharma companies have many e-HRM practices are applied in almost all pharma companies in managing their human resources effectively and efficiently. When considering the overall E- HRM dimensions, in selected public and private sector pharma companies at the same time the impact of e-HRM practices are at a higher level in the study area.

These studies have proved that EHRM is the topic for today‟s organizations and it needs the attention of the management. This review of literature helps in defining the research statement, that is, are EHRM practices important for the employees and do these practices have any impact on the satisfaction of the employees?

III. OBJECTIVES OF THE STUDY

On reviewing various contributions in the area of Electronic advancements and their relation with HRM has helped to formulate following objectives:

1. To study the current E-HRM policies and practices in the pharma company chosen for the study.

2. To study the impact of these policies on employees.

3. To analyze whether there is an impact on the implementation of these policies on the employee satisfaction.

4. To suggest measures for adopting the e-way of managing human resources.

IV. RESEARCH DESIGN AND METHODOLOGY

The research design is exploratory and descriptive in nature. The study is conducted on the pharma company employees of ICICI Pharma company in the city of Delhi NCR.

 Scale used: A 5-point Likert Scale with categories namely Strongly Agree, Agree, Neutral, Disagree and Strongly Disagree.

 Sampling Area: 50 employees were approached working in various branches of Delhi NCR.

 Sampling Procedure: the sampling procedure adopted in the study is convenience sampling.

V. HYPOTHESES

Studying the extensive literature and the need to study these variables in the modern world following hypotheses were created:

 H₀: there is no significant impact of E-HRM practices on employee satisfaction.

 H₁: there is significant relationship between E-HRM practices and employee satisfaction.

VI. ANALYSIS AND RESULTS 6.1 RELIABILITY

Reliability Statistics

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Cronbach's Alpha

N of Items

.735 20

The reliability test is necessary to check whether the measures and instrument used for the study is appropriate or not. The value of 0.7 is considered good in the Cronbach Alpha test of reliability. When tested, this test acquired the value of 0.735 which proves that the questionnaire used is reliable for the study.

ANOVA TABLE SOURCE OF VARIATION

SS df MS F P-value F statistics

ROWS 8141.852 4 2035.463 9.733617 9.99E-07 2.459057

COLUMNS 0 26 0 0 1 1.602379

ERROR 21748.15 104 209.1168

TOTAL 29890 134

Analysis of Variance (ANOVA) suggests that the null hypothesis is rejected as the p-value is more than 0.05.

This denotes that the employees feel if the human resources practices will go electronic, there will be more transparency. It would increase the performance of the employees as all the information would be communicated through a single channel and there would be lesser data redundancy and time could be utilized productively. Employees will get more time to interact with other employees. The employees feel that money spent on E-HRM is a good investment. It reduces errors and increases accuracy.

ANOVA TABLE

SOURCE OF

VARIATION

SS df MS F P-value F statistics

BETWEEN GROUPS 0 26 0 0 1 1.598423

WITHIN GROUPS 29890 108 276.7593

TOTAL 29890 134

The above table strengthens our findings by showing that maximum employees have given positive response to our question. This proves that they feel implementing E-HRM policies are important in today‟s world and provide them more happiness and satisfaction in their organization. It makes them feel moving with the time and changes happening all around.

VII. CONCLUSION

The study finds that there is a significant impact of E-HRM policies on employee satisfaction. The employees feel that e-recruitment, e-selection, e-compensation and e-appraisal is fee of biased decision-making. It leads to proper and clear communication of information and expectations. Employees feel more equipped and

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developed. More skills are required to practices HRD online. This makes them feel that they are growing in and with their organization. Main conclusion includes the following:

1. E-HRM leads to flexibility and visibility.

2. It helps to build employee morale and enhance performance

3. The employees feel encouraged with the development of E-HRM policies and practices.

4. E-HRM gives opportunity to the employees to interact with other employees in the organization through intranet facilities.

5. Its adoption is more cost-effective and reduces the burden of manual practices relieving the employees of work -stress.

6. Avoiding face to face appraisals reduces nervousness and biasness on the part of the employee and employer respectively.

7. The record keeping system of the employees become easier and time to time updated reports are easily available.

8. Timely and prove-driven information helps faster decision-making for the welfare of the employees.

All these findings state that adoption and practicing of E-HRM policies lead to satisfaction of employees. They work with lesser work burden and get time and facilities for personal and inter-personal growth.

e-HRM has become an inseparable part of the functioning of almost all the large business players in the current scenario. It helps in integrating the widespread activities of organizations by enabling connectivity between different organizational functions and providing accurate and timely personnel information on-line and round the clock. The ultimate result is a substantial elimination and cutting down of redundant activities and a boost to the profit margins of the organizations. e-HRM phenomenally reduces dependence on the time consuming and error-prone Human Resource paper trail.

REFERENCES

[1] Jain, Dr. Ankita; Goyal, Ankita;E-Recruitment & E- Human Resource Management Challenges in the Flat World: A Case Study of Indian Pharma Industry (With Special Reference to ICICI Pharma company, Delhi NCR);International Journal of Scientific and Research Publications, Volume 4, Issue 1, January 2012 [2] Adli,Manizheh; Gharib,Sousan;Hakami,Mahdis; Pourmahdi,Katayoon; A Survey on Electronic Human

Resource Management Consequences, Its Outcomes and Performances; J. Basic. Appl. Sci. Res., 4(10)71- 82, 2014

[3] Chamaru De Alwis; The Impact of Electronic Human Resource Management on The Role of Human Resource Managers; Ekonomika A Management, volume 4, 2010

[4] Singh; Anil Kumar, Impact of the HRM practices and organization culture on managerial effectiveness in public sector organisations in India; Agric. Econ. – CZECH, 56, 2010 (0): 379–386

[5] Huub J.M. Ruel; Tanya V. Bondarouk & Mandy Van der Velde; The contribution of e-HRM to HRM effectiveness; Employee Relations Vol. 29 No. 3, 2007 pp. 280-291

[6] Khashman, Dr. Aysar Mohammad& Al-Ryalat, Dr. Haroun Abdallah; The Impact of Electronic Human Resource Management (E-HRM) Practices on Business Performance in Jordanian Telecommunications Sector: "The Employees Perspective"; Journal of Management Research, Vol. 7, No. 3

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[7] Bharti, Preeti; Impact of E-HRM System on Organizational Performance: A Case study on Pharma Sector;

International Journal of Advance Research and Innovation; Volume 3, Issue 4 (2012) 732-734