PESTLE Analysis

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Implementing E-HRM in E-Government Environment: PESTLE Analysis

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Authors: Md Mushfiqur Rahman & Olusoyi Richard Ashaye, PhD MRICS

Address: Brunel Business School

Brunel University

Uxbridge – Middlesex UB8 3PH

United Kingdom

E-mail: [email protected]

[email protected] / [email protected]

Tel No: +44 7791 7122866 / +44 7956243598

The management ‘discipline’ of the paper: Human Resources Management

Keywords: E-HRM, Implementation, E-Government, PESTLE Analysis.

A brief statement: Implementation of e-HRM – conceptual framework

Submission Type: Developmental Paper


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ABSTRACT

The practice of human resource management (HRM) involves the following goals:

facilitating organizational competitiveness; enhancing Productivity and Quality;

complying with legal and social obligations; and promoting individual growth and

development. With advancement in technology, e-HRM was introduced contains

technologies with powerful functionality to support organisations in providing strategic

capability, reducing the cost and continuous service improvement as well as the quality of

service delivery.

This paper aims at evaluating the impact of e-HRM implementation in an e-government

environment. Although this study is in early stages, the researchers have been able to

critically review and analyse some of the existing literature in e-HRM by adopting

PESTLE analysis. This enables the proposition of a conceptual model for e-HRM

implementation.

It is believed that this study would enable identification of limitations, particularly

establishing the differences that exist between theory and practice of e-HRM

implementation in organisations. The researchers have suggested further empirical

studies to allow for validation of the proposed conceptual framework, and to make policy

recommendations for decision makers and top management in order to address some of

these implementation issues. However, the proposed conceptual model could be used as a

frame of reference and practical guidelines for e-HRM implementation within e-

government perspective.

Key Words: E-HRM, Implementation, E-Government, PESTLE analysis

1.0 INTRODUCTION

1.1 Brief background to research context

Most organisations are struggling to meet up emerging technology (ICT) in the world;

manpower is a key issue especially for organisations in developing country due to its

impacts on larger population density. Thus centralisation of ICT in most organisations

would be essential especially where there is the problem of decentralisation of amenities

(Budd & Harris, 2004).

E-Government is seen as a tool for improving service delivery through transparency and

reducing corruption. However HRM implementation is a problem in some of the

(developing) countries with issues of corruptions and low level of IT literacy. This is

likely to have adverse impact on implementation of e-HRM such as online applications

for recruitment and selection (OECD, 2001; Backus, 2001; Bhatnagar, 2004; Othman,

2013)

Most developing countries operate traditional HRM and this cost more and lengthy delay

the process the recruitment and the selection. This also allows the top managers to pick

and choose their candidate. Employment is not necessarily base on selection of suitable


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candidate. This leads to issues of corruptions and transparency, and therefore calls for a

re-engineering of the organisations business process model and information systems.

Thus introduction of modern technology into human resources and personnel

development has brought about the concept of electronic human resources management –

e-HRM (Okpara & Wynn, 2008)

1.2 Rationale and motivation for undertaking the study

There is currently limited research on the impact of e-HRM in e-government systems in

developing countries. It is often observed that successful implementation of e-

government in general reduces corruption, leads to transparency, reduces cost, speed of

process, and builds trust. As a result e-HRM implementation should help organisations,

both public and private, to recruit professional and suitable candidates.

Apart from corruption bureaucracy and political barriers are due to instability of

government. And these determine the level of support and e-Government application

required. This also affects the literacy level – education - of the citizen and organisational

especially in the area of e-government. Implementation of e-HRM will improve service

provision, create man power and allow self-services. For instant, citizen can apply online

for jobs and it will be easier for stuffs to upload job vacancies. This allow for effective

management of resources, both human and capital.

This research study will add to the body of literature on e-HRM implementation in

organisations where e-Government systems are of relevance to information systems.

1.3 Research Aim and Objectives

The overall aim of this paper is to evaluate the impact of e-HRM implementation in an e-

government environment. The objectives are as follows:

To examine the issues relating to e-HRM particularly in public sector

organisations reviewing exiting literature.

To apply PESTLE model in order to critically analyse e-HRM as a strategy for

improving e-government system.

To develop a conceptual model necessary for successful implementation of e-

HRM in an e-government environment

1.4 Research Questions

The main questions that need to be addressed in this research study are:

1. What are the main factors influencing e-HRM implementing in an e-government

environmental?

2. How can e-HRM systems be successfully implemented in Bangladeshi Public

sector?


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2.0 LITERATURE REVIEW

2.1 Electronic Human Resource Management (E-HRM): Concept and Context

There is the need for organisations to adapt or change their processes and innovate as the

market requires. The effective response is necessary in order to meet up with the highly

competitive market that is always changing. As a result, managers have realised that the

success of any business enterprise in a complex and changing environment would depend

on the effective management of its Human Resources.

The role of the personnel department has been transformed over the decades basically

from being an administrator to a critical component in the competitive success of the

business. The Human Resources role, which was initially to support back-office functions

such as payroll, personnel data management and legal/legislation requirements, now

includes focusing on tangible goods and financial resources. Most organisations have

initiated the ‘human capital approach’ where money spent on fostering innovation in the

workforce is taken into consideration; organisations thus support the workforce strategies

with business goals and objectives, as they realise the role of Human resources continues

to change due to the evolving technology.

Human resources function has now evolved into human capital management (HCM),

which is the job of everyone in the business. The use of technology has been an enabler,

moving human resources processes and procedures from complicated file-folder systems

to automation and comprehensive human resource management systems. E-HRM is

introduced to employees in order to avoid or minimise trouble during implementation

(Grensing-Pophal, 2008; Bandarouk, 2009; Varma et al, 2010).

There appears to be various definitions of the term ‘e-HRM’ by scholars and

academicians. Whilst Ruel et al (2007) defines it as “a way of implementing HRM

strategies, policies and practices in organisations through the conscious and direct support

of and with the full use of web technology”; Strohmeier (2007) however describes e-

HRM as being both technological and organisational – the application of information

technology (IT) for both networking and supporting interaction of at least two individual

or collective actions in their shared performing of HR activities. HRM is a

comprehensive approach to managing momentous organisational resources that is human.

E-HRM system involves evaluation of IT infrastructure and determining the readiness

level of each infrastructure to implement e-HRM subsystem (Ruel et al, 2007; McLean,

2009; Varma et al, 2010).

Review of literature suggests three major goals of e-HRM implementation: cost

reduction, improving HR services and improving strategic orientation. However, some

scholars have argued that despite creating strategic value for organisations and for HR

functions, e-HRM could not be viewed as strategic partner within the context of strategic

human resources practices in public sector organisations (Farazmand, 2004; Ruel et al,

2004; 2007; Sanayei & Mirazaei, 2008).


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Asides this debate, e-HRM has been observed to be of benefits, for leading to a radical

redistribution of work that HR managers used to do. For instance, desktop activities such

as appraisal performance, employee cost evaluation and reporting activities are now

performed by HR professionals - managers and employees through online systems.

Nowadays, e-HRM has enabled employee to be to change and manage their personal

files, plan their learning and development, process financial documents and apply for new

jobs through access to online and automated means (Welborne, 2010; Marler & Fisher,

2010; Greengald, 2010).

The four major competency area of HRM under transformation are: recruiting

competencies, retaining competencies, reinforcing competencies, and replacing

competencies.

E-HRM is defined as consisting of intended and actual HRM policies, activities, services

and collaboration with individuals and organisations, which are delivered and enabled

using configurations of computer hardware, software and electronic networking

capability. It also contributes to organisational performance, if managed effectively

(Marler & Fisher, 2013).

In terms of finance, eHRM has been described as “one that is successfully developed on

time and within budget, is reliable, and easily maintained and meets the specific

requirements of the professional, line managers, and employees.” (Bandarouk, 2009).

2.2 E- HRM in relation to Electronic Government: Research Context

Electronic human resource management (e-HRM) is arguably in its infancy stage (Lovell,

2009; Stone & Dulebohn, 2013) most especially in developing countries where it was

brought into limelight in the 1990s following empirical studies by scholars and

academicians on how to embed technology into human resource management. E-

Government however involves using information and communication techniques to

improve the activities of public sector organisations. As a result, e-HRM implementation

in the public sector would involve effecting e-Government systems in the aspect of

human resources or personnel (Ruel, Bondarouk, & Velde, 2007; Strohmeier, 2007).

E-Government, according to Leitner (2003) is a key enable of transformation within

public administration which modernizes public administration through information and

communication technologies (ICTs). It is often viewed as a bi-polar phenomenon that

deals with front line (customer service) and back-office functions. It is a comprehensive

change programme concerned with the transformation that government and public

administration will have to go through in the next decades. E-Government is also

perceived as a second revolution (following managerialism), to transform the

management of the public sector in across both developing and developed countries.

Scholars have argued that e-government is a global concept that is gradually becoming

acceptable in the area of information system (IS) and information and communication

technology (ICT) in general. This is due to its nature of improving communication and

coordination amongst organisations, increasing accountability, encouraging transparency

and cost savings (Backus, 2001; OECD, 2001; Lam, 2005).


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The concept of e-Government is based on the integration of information technology

capacity, primarily websites, intranets, databases, to allow self-service through an IT

medium. Scholars have suggested that in spite of e-government still believed to be in its

infancy stage, it forms a crucial strategic plan of the government to modernise business

process (Budd & Harris, 2004; Lam, 2005; Onu & Chiamogu, 2012).

Further, e-government has been described as a way for governments to practice the most

advanced information and communication technologies including web-based internet

applications to provide access to government information and services to the citizens and

business. Asides transparency, e-government also increases accountability and

encourages citizen participation in the evaluation of government performance. In

summary, e-government can be defined as the use of information communication

technologies by government agencies to improve the activities and services of public

sector organisations.

In the aspect of human resources, Irani et al (2007) argue that e-government goes beyond

putting government information services online, it also relates to allocating resources and

improving business model in terms of technological capability.

Thus there is the need for re-tooling the human resources management in the developing

countries in particular, by introducing technology to the government organisation.

Scholars believe the stages of HRM evolution have advanced since HR functions have

led to increase in competitive advantage and strategic value. The movement is from the

HR function from being operationally reactive, to being proactive before moving towards

being strategically reactive, and then strategically proactive. Thus different organisations

tend to be at different stages of HRM.

Some of the drivers of e-HRM implementation include: provision of adequate and

comprehensive information system about the people and jobs at a rational cost; enabling

quicker and sensitive decisions to be made which are HR-related; data security and

personal privacy; monitoring and evaluation system for providing check and balance for

demand and supply of human resources; provision of automated and online employee-

related information; and provision of future planning and policy formulations.

This research study focuses on public sector organisations (as opposed to private) and

this enables e-government services to fit in perfectly into the study; since e-government

relates to improving ICT in governmental organisations.

The researcher intends to employ organisational context of implementing e-HRM with

emphasis on to government-to-employee (G2E) perspective. This would be followed by

comparative analysis of relevant e-government theories in the aspect to human resource

management. These include institutional theory which is flexible as it allows for a

combination of theories (Zucker, 1987; Irani et al, 1999; Björck, 2004; Currie, 2009).

More so, it is useful for is relevant for dealing with more robust aspects of social

structure and processes in terms of structures, schemas, rules, norms, and routines as part

of authoritative guidelines for social behaviour. Other theories include Actor-Network

theory, Acceptance Theory, Stage Model, Communication Models; Developed Model,


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Expanded Model (Irani et al, 2009; Janssen & van Veensra, 2005; Stone and Lukasewski,

2009).

This researcher intends to examine and analyse how e-HRM systems could be

successfully implemented in the developing countries, using case study research

approach within the Bangladeshi Public sector. As a result, initial deductions would be

made by developing conceptual model(s) from the application (or combination) of

models reviewed in the literature. In order to determine the pattern or pace of change in

the process of e-HRM implementation, multiple case studies would be conducted across

human resources or personnel departments in the carefully selected public sector

organisations.

Just like e-government, there is no standard definition of e-HRM as scholars have

attempted to define it based on context and application. For instance, whilst Bondarouk

and Ruel (2009) defined e-HRM as ‘an umbrella term covering all possible integration

mechanisms and contents between HRM and technologies aiming at creating value

within and across organisations for targeted employees and management’; Ruël et al

(2004) defines it as a way of consciously implementing HRM practices, policies and

strategies supported by or fully delivered through internet-technology based applications.

E-HRM is thus referred to the administrative support of the human resource function in

organisations by using Internet technology, and can be defined as a way of implementing

HRM strategies, policies, and practices in organisations through the conscious and

directed support of and with the full use of web technology based channels (Backus,

2001; Van Der Molen & Wubbe, 2007; Ruel et al, 2011).

In terms of applications, e-HRM is known to be both administrative and technological in

nature since it involves the use automation of the business processes. Human resources

departments across public and private sectors have been able to employ technology and

information systems by using computers to log employees’ data and interact

electronically with them. HRM is called as electronic human resource management

(EHRM) or human resource information systems (HRIS).

Table 1 below highlights in tabular form definitions, concepts and applications E-HRM

and E-Government implementation in information systems (IS), from review of

literature:

Dimensions E-HRM E-Government Author

Historical

Perspective

Personnel management

information for instance was

stored in simple databases and

integrated using single keyword

searching in the 1970s

- EHRM emerged in the mid-

1990s as a set of information

technology (IT) application to

cover ‘all possible integration

mechanisms and contents

- Emergence was as a result of

shift from technology to

management and the

development of scope

performance and policy

intentions

- EGov in the UK often

represented a change in status

for government technology

- The formation of a FirstGov

Budd and

Harris,

2004;

Joseph,

2009

http://www.igi-global.com/chapter/house-off-shelf-hrm-applications/20056


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between HRM and IT’ with the

aim of adding value to and

across organisations for both

employees and management.

- Prior to that, researchers had

carried out empirical studies on

the status of human resources

information system (HRIS) to

improve how information is

managed and stored in 1986.

E-HRM is simply the

management of IT and HRM.

– inspired portal (ukonline)

was to provide information

and links to further, more in-

depth sites, which assumes the

role of search engine.

Definition Researchers have not

standardized a definition of E-

HRM

E-HRM is an umbrella term

covering all possible integration

mechanisms and contents

between HRM and technologies

aiming at creating value within

and across organisations for

targeted employees and

management

E-HRM can be defined as a

way of implementing HRM

strategies, policies, and

practices in organisations

through the conscious and

directed support of and with the

full use of web technology

based channels

Similar, there appears to be no

standard definition of e-

government. It’s a form of e-

business in governance.

E-Gov is described as the use

of information and

communication techniques to

improve the activities of

public sector organisations, of

course impacts on the strategy

and operations of the agency.

Backus ,

2001; Van

Der Molen

& Wubbe,

2007;

Joseph,

2009;

Bondarouk

& Ruel,

2009

Concept E-HRM is still in infancy stage.

It combines technology with

management of human

resources. E-HRM is

technology plus HRM.

It is referred to the

administrative support of the

human resource function in

organisations by using Internet

technology.

It is a form of Government-to-

Employee (G2E) system that

E-Gov is also in its infancy

stage, as it is yet to be globally

recognised. It combines the

key characteristics of

technological department and

public administration i.e.

frontline service plus back-

office functions

It can also be used to improve

the delivery of services to

citizens, streamline public

sector operations, and enhance

overall government

Budd &

Harris,

2004;

Backus,

2001; Ruel

et al, 2007;

Strohmeier,

2009; Bell

et al., 2006


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encompassed platforms that

allows interactions between a

government and its workers e.g.

Intranets, e-training, etc.

accountability.

It has the following

characteristics – Government

to Government (G2G);

Government to Employee

(G2E); Government to

Business (G2B); Government

to Citizen (G2C) (Hunter &

Jupp, 2001).

Applications

and Context

E-HRM combines

administration with technology

in its business process such as

automation and use of

computers to log employees’

data and interact electronically

with them.

Product procurement and

delivery, key elements in the

supply chain, can be

seamlessly integrated into e-

government platforms. E-Gov

also increases trust in

government, streamlines

transactions, reduces the time,

cost, and red tape traditionally

associated with government

interactions.

Lengnick-

Hall &

Mortiz

2003,

Farazmand,

2004

Table 1. E-HRM and E-Government: Definition, Concepts and Applications

Choice of Context: Need for E-HRM Models for Developing Countries

2.3 Factors Influencing E-HRM Implementation

HRM is often seen as a function within an organisation that focuses on the activities of

retention, management, and provision of direction for the people who work in the

organisation. HRM has in recent years been positively linked to creating high level of job

satisfaction and motivation amongst workers, as well as their wellbeing in organisations.

It has enabled the explanation of the mechanism for the positive relationship between

human resource management and organisational performance.

Scholars have argued that HR is unlikely to achieve its goals to devolve HR

administrative activity to the line, without buy-in from line managers who have to

implement the new system. E-HRM implementation factors have been categorised -

adopting PESTLE model – into the following: Political, Economic, Socio-cultural,

Technological, Legal and Environmental factors (Lengnick-Hill & Lengnick-Hill, 2006;

Bell et al, 2006).

Political Factors - Political issues to be considered when implementing e-HRM

particularly for public sector organisation included the central government, being the top

management and leadership of the e-HRM project and general supervisor of the

initiatives implementation. Also, it’s the responsibility of the policy makers and decision-


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makers to disseminate the relevance of the project to all staff, leaders and employees.

This is essential to create a greater awareness, and to develop better implementation

strategies particularly of e-government services (Ebrahim and Irani, 2005). The

nomination of a strong political leader with sufficient knowledge of information

technology is one of the most important responsibilities of the government when

implementing e-government project including e-HRM services.

Political will to invest in information and communication technology (ICT) plays a vital

role in effective implementation of e-HRM since organisations depend largely on

political leaders and policy and strategic decision makers for provision of adequate

budgets to support the e-government project financially and desire that leads to

implementation success (Irani et al., 2009; Altameem et al., 2006).

Political impact of e-HRM implementation is key especially in public sector

organisational where government officials have to seek consent of the leaders and

decision makers who have the political will-power. It should be mentioned that

Loosely-coupled political systems would encourage power games and political influence

over decision-making are useful in explaining the nature of internal processes. There is

also the concern about the assumptions made on how HRM practices could become

established in foreign subsidiaries and the roles played by different actors in the

integration process (Edwards et al., 2007; Smale & Heikkilä, 2008)

Economical Factors –

E-HRM encourages financial cost savings since it can reduce transaction costs and

headcount or other associated cots with technology. For example, supplying HR

information in a virtual rather than visual basis.

Economic factors impact on pay rates, skill shortages, economic development plans, cost

of living, housing costs and corporate risks; and it enables the Return on Investment

(ROI) on an e-HRM project to be justified (Bell et al, 2006; Martin & Reddington, 2009).

Socio-cultural Factors

Socio-culture issues impacting on e-HRM implementation involve: changing customer

expectations and needs; having more sophisticated market; changing demographics;

changing employee expectations and needs i.e. work life balance issues; inequalities and

deprivation; qualifications, skills and competencies; and flexible working opportunities

Review of literature has identified other issues as language, social influence, and

sustainability. Privacy is another factor since it would allow organisations to use e-HRM

to collect, store, and disseminate data about job applicants and employees.

In terms of language issues, effort expectancy i.e. perceived ease of use is essential.

Language culture is often created through email communications whereas some of the

employees have supplemented the common corporate language with organisation jargons.

They also use abbreviations and expressions that reflect the culture as well as operational

procedure of the organisation. More so, the influence of trade unions in playing an active

role - from taking decisions, forming strategies, and to implementing some technology –

need also be emphasised. Scholars have also suggested human resources (HR) -related


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issues are central to the creation of sustainable competitive advantage. For instance,

Technology Acceptance Model (TAM) is relevant for evaluating social and cultural

impact of e-Government adoption from citizen’s perspectives. In evaluating e-

Government websites and services, they have recommended that government agencies

would need to continue to invest in e-Government services in order to enhance their

understanding of the factors that influence citizen adoption (Davies et al, 1989;

Vankatesh et al, 2003; Al-Hujra et al, 2011; Surendran, 2012).

Technological Issues Scholars and academicians have described technological factors in terms of IT adoption,

desire and conviction in the use of technology and technology Infrastructure. By adopting

information technology (IT), it would allow the HR function to help organisations define

business strategies and IT can accelerate progress toward more strategic HR roles (Davies

et al, 1989; Vankatesh et al, 2003; Bondarouk & Rue¨, 2009).

Technological factors involve innovation - new equipment, new techniques, new

methodologies, information technology, communications, improved transport / increased

mobility, and new ways of working.

Similarly, the desire and conviction in the use of technology enables effective

communication within and with other organisations electronically, as opposed to paper

form. Technology infrastructure enables the equipment and tools to be available for the

practice of e-HRM, and for facilitating the process communication and connectivity

between and with other organisations (Bondarouk & Rue¨, 2009; Jaradat, 2013).

Legal (Legislation) Factors

All stakeholders need legislation and regulations to organise the use of e-HRM as a

strategy for e-Government system. Review of literature has show that political

stakeholders and government management are responsible for providing legislations and

regulations for all e-government transactions. The legal issues are in respect of service

obligations, employment legislation, Human Rights Act, environmental legislation and

other regulations and directives such as the European Directives on human resources.

Environmental Environmental factors also involve industry pressure, which is the overall trend,

competition and direction of operational practices that impact on e-HRM implementation.

This is necessary for organisational sustenance or to be competitive (Hwang et al, 2004;

Kittipong, 2009).

Internal factors relating to the environment allows organisations to set boundaries using

the following features: the organisation’s mission, policies, corporate culture,

management style of senior managemet, employees, the informal organisation and other

units or departments of the organisation.

Environmental benefits include the maximisation of space as most filing cabinets used for

paper filing would be reduced, as most information and documents would be stored

through online and automated system. In terms of location and timeliness, e-HRM system


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enables employee to log in remotely, rather than being in the physical location and also

leads to a reduction d in the amount of written and paperwork (Varma, 2010; Jaradat,

2013).

Other factors –

Organisational Issues: These include organisational performance and organisational

transformation Performance Expectancy Organisational Culture. Other issues in e-HRM

implementation are performance expectancy i.e. perceived usefulness for recruiting

white-collar staff, supporting high-tech image, and increasing mobility; and

organisational culture, which is relevant for the acceptance change and technology

developments, especially in what is related to human resource (Jaradat, 2013)

Binjabi and Mordi (2013) in their studies of issues impacting on strategic HRM

implementation, highlighted high power-distance and reward recognition (cultural

factors) and cognitive and normative institutional factors as the key aspects. Thus there

exists cultural dimensions that lead to conflict and lack of transparency in HRM policies

adopted within private and public sector; whilst public sector base career progression on

intelligence, the private sector career progression is purely on merit and skill. Thus e-

HRM initiative would be able to bring about effectiveness and transparency in both

private and public sector organisations (Gueutal & Stone, 2005; Ramlall et al, 2011;

Budhwar and Mellahi, 2007).

Privacy: Monitoring data protection, privacy and system security within the organisation

as it limit the growth of e-government if not managed correctly. Increase efficiency and

productivity, reduces cost, deduce and minimises costs and decreases transaction.

Managerial issues often occur with implementation of e-HRM services as management

would need time to familiarise with the newly implemented systems. E-HRM is not often

given much priority by management especially with small –medium enterprises (SMEs).

Studies have discovered that more organisations are using conventional HRM compared

with e-HRM; there is not much interest among companies to adopt e-HRM other than for

communication purposes and salary calculation (Hooi, 2006).

2.4 E-HRM Theories in relation to E-Government

There are numeration theories of e-Government. However, researcher would focus on e-

HRM theories in relation to electronic government, in particular and information system;

some of which include:

2.4.1 Stakeholder Theory

Zimmermann and Finger (2005) initiated the idea of stakeholder theory. Although it was

primarily a theory of the private sector firm, it is also applicable to public sector as well

in the context of managerial decisions regarding e-government initiatives. It enables the

measurement of the change in power between the local administrators and the

stakeholders.

The key stage is the identification of all involved actors. This is followed by the

determining the general impact of ICTs on organisations, (in form of efficiency, quality


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and transparency) and on public administrations (legal, structural/organizational,

financial and relational domains). The model also considers the theoretical impact of

ICTs on power relationships (in terms of cost and time efficiency, quality of decision

making, dependency on third parties, vulnerability – external influence, ability of

surveillance and organizational transparency).

2.4.2 Acceptance Theory

Developed by Chestar Barnard, which suggests that authority is the power that is

accepted by others; authority is believed to flow from bottom to top. This imples that

subordinates must give the management the obedience for the manager to have authority.

This enables the subordinates to enjoy financial rewards, otherwise they fear loosing it.

This theory also emphasises sanctions that a manager can use and overlooks the influence

of social institutions like trade unions.

TAM has been used by researchers worldwide to understand the acceptance of different

types of information systems such as acceptances of e-Learning systems, online shopping

behavior and e-Commerce; perceived usefulness was determined as the strongest factor

in adoption. However the focus of this research is on organisational (and not citizen)

perspective, which makes TAM not suitable in spite of its influence on social and cultural

issues

In its application to e-HRM, Yousoff et al (2010) suggested Technology Acceptance

Model (TAM) as a suitable method in examining the relationship between HR roles

(strategic partner, change agent, employee champion, and administrative expert) and E-

HRM. They further proposed future empirical testing. However the researcher intends to

adopt qualitative analytical method to analyse findings; and the study related to

evaluating e-HRM implementation benefits and barriers, not necessarily the relationship

between the roles and functions of the stakeholders. As a result, this model may not be

suitable for this study, which requires deep and ricer understanding of the e-HRM

implementation process, and building of theories and introducing complexities of the

implementation process.

2.4.3 Stage Growth Model

Janssen and van Veensra (2005) introduced the stage of growth model for public

decision-makers to use as guidance and direction for architectural development. It can

also aid managers in public service develop a suitable strategy in line with their

organisation’s objectives, therefore reducing complexity of development of e-government

initiatives .

This model is useful for organisational change strategiesd to plan for change in order to

establish goals and determine progress towards accomplishing these goals. It is developed

on the assumption that advancement of information technology systems evolve through a

number of stages of growth. This model has also been successfully applied to e-HRM

(Sanayei & Mirzaei, 2008; Sharivastava & Shaw, 2003)

2.4.4 Institutional Theory

Institutional theory is a theory that focuses on the deeper and more resilient aspects of

social structure. It considers the processes by which structures, including schemes; rules,


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norms, and routines, become established as authoritative guidelines for social behavior.

Other scholars describe the theory as providing a rich, complex view of organizations

(Scott, 2004; Zucker, 2009; Björck, 2004)

The theory supports the better understanding of organisational actions and behaviour

because it provides more practical guidelines for decision makers and implementers of

change, and can be used in empirical research to develop a theoretical perspective further

in order to enhance its use (North, 1990; Jensen et al 2008; Tolbert & Zucker, 1996).

However, institutional theory does not explicitly account for how organisational actors

make sense of and enact IS in their local context (Björck, 2004; Jensen et al, 2008). The

theory is also conceptually ambiguous, yet not amenable to over-simplification as a

means to achieve methodological rigour (Currie, 2009).

Scholars have applied institutional theory to electronic human resource management (e-

HRM), and strategic information systems (IS) more generally, in a multinational

corporation (Scotts, 2001;; Heikkilä, 2013; Marler & Fisher, 2012); some have even

argued that e-HRM is subject to a multitude of institutional factors, thereby identifying a

number of forces for standardisation and isormorphic pressures in the institutional

environment in public sector organisations.

Because of the extensive research and flexibility of this theory, the researchers support

the adoption of the institutional theory (or in combination with other theories) for detailed

studies of eHRM implementation.

2.4.5 Developed Model

This model explains the link between HR strategies, her strategic drivers, her technology

and her outcomes. The framework attempts to outline three standard strategies, which are

structural configurations that may serve as a useful empirical device to study future

developments in her and its links with strategic drivers: HR strategic policies, her drivers

(goals), her architectures and her outcomes.

The model also categorised the archetypical strategy into three: Business strategies, HR

strategies and HR drivers or architectures (Martin & Reddington, 2009; Boxell & Purcell,

2008). However there seems to be limited research on application of developed model in

e-HRM perspectives.

2.4.6 Communication Models

There are several communication models. However in relation to e-HR, Jamis & Hovlane

(1959) have mentioned the Yale model of communication and persuasion. One

underlying assumption of the study is that the effect of a given communication depends

on the extent to which it is attended to, comprehended and accepted.

However, McGuire (1969) introduced the Communication-Persuasion matrix model

which explains that attention and comprehension determines the degree to which the

recipients will learn from the communicators’ message and the individuals’ motivation

will determine whether or not she or he adopts what is learned. Attention (listening) and

comprehension (understanding) leads to motivation.

This model is suitable for researchers willing to study motivation factors or culture in

organisations. More so, there has been limited application of this model to information


15

systems and information technology, most especially in relation to eHRM

implementation.

2.5 Towards proposing an E-HRM Implementation Model for Developing

Countries

There is the need to develop a holistic framework that could be used to investigate the

implementation process of e-HRM particularly within public sector organisations

perspective. The framework is expected to look at a wider context I terms of the factors

influencing e-HRM implementation by adopting PESTLE Analysis – political, economic,

socio, technological, legal and environmental

Various information systems theories and models were discussed in sections 2.4 in order

to be able to identify most suitable theory or combination of theories that would lay solid

foundation towards proposition of the implementation framework. For instance,

Technology Acceptance Model (TAM) is useful for examining the relationship between

HR roles (strategic partner, change agent, employee champion, and administrative expert)

and E-HRM. However this research paper does not necessarily require empirical testing

as emphasis is on qualitative analytical method, which would encourage building of

theories and introducing complexities of the implementation process.

Further the stage model is mostly relevant for strategising organisational change to enable

planning for change in order to accomplish desired goals. It is also relevant for

understanding how systems evolve through a number of stages of growth as previous

applied to e-HRM. However, PESTLE analysis could not be suitably applied using stage

of growth model as there seems to be limited research to e-HRM implementation. The

same applies to the developed model that focuses on the link between HR strategies, HR

strategic drivers, HR technology and HR outcomes. Developed model would be relevant

if the study is mainly on determining culture or motivational factors in organisations, not

PESTLE analysis (Sharivastava & Shaw, 2003; Sanayei & Mirzaei, 2008; Martin &

Reddington, 2009).

Review of literature has supported flexibility of the Institutional theory, and the fact that

the theory has been successfully applied to e-HRM especially in multinational

corporations Institutional theory also provides better understanding of organisational

actions and behaviour, and enables application of environmental factors – external and

internal in addition to other factors – such as political, socio or cultural (Scotts, 2001;

Heikkilä, 2013; Marler & Fisher, 2012)..

The adoption of institutional theory that usually supports combination of multi-methods

with multilayer approach would be useful for empirical research necessary for further

development of theoretical and conceptual perspectives (North, 1990; Jensen et al 2008;

Tolbert & Zucker, 1996).


16

3.0 CONCEPTUAL FRAMEWORK

This paper proposes a conceptual framework for implementing e-HRM by adopting the

PESTLE analysis - seen Figure 1 below. The proposed model explains the

implementation process by drawing from the insight offered by the political and

economic issues; other factors are socio-cultural, technological, legal and environmental.

The researcher highlights that these factors are grounded in the body of literature as well

as empirical evidence influencing e-HRM implementation in any chosen country.

The model identifies the key political factors as the political will to invest in information

and communication technology (ICT) and support give by the political leaders and policy

and strategic decision makers especially in the provision of adequate budgets for

implementing e-HRM systems.

Economic factors in respect of e-HRM implementation will include cost implication and

return on investment. Others are pay rates, skill shortages, economic development plans,

and corporate risks. The proposed model explains the socio-cultural issues as changing

customer expectations and needs, having more sophisticated market, work-life balance,

and culture in terms of language and symbols. The model describes the legal factors as

various legislation and regulations necessary to implement e-HRM system in an

orgaisation. It includes employment legislation, environmental legislation and other

regulations and directives.

The last factor in respect of PESTLE analysis is the Environmental factors. These include

both external and internal factors such as industry pressure, competition and direction of

operational practices. Others are organisation’s mission, policies, corporate culture, and

management style.


17

Figure 1.1 E-HRM Implementation: Using PESTLE Analysis

4.0 ANALYSIS AND DISCUSSIONS

This paper reviews the factors influencing electronic human resource management (e-

HRM) implementation process within the e-Government context. It is expected that this

implementation will be applicable to both developed and developing countries, where

organisations intend to improve their way of working either through business process re-

engineering or complete re-structuring.

E-HRM

Implementation

Environmental

* Industry pressure

* Competition

* Corporate culture

* Management style

Political

*Political will

* Policy & strategic

decision making

Economical

* Financial costs

* Return on

investment

Social

* Work-life balance

* Customer

expectation & needs

* Market needs

Technological

* ICT infrastructure

* Innovations

Legal

*Employment

legislation

* Policies, directives

P

E

S

T

L

E

A

N

A

L

Y

S

I

S


18

Review of various literature suggests that careful application of the PESTLE analysis –

political, economic, socio-cultural, technological, legal and environmental issues – will

help shape and embed necessary ICT infrastructure to improve organisational human

resources (HR). It is expected that these factors would vary from country to country.

The advent of technology in the operations of human resources management has brought

about benefits to organisations particularly in their business process re-engineering. E-

HRM transforms the traditional HR ‘business model’ by enabling HR to provide strategic

value to organisations which it previously could not. For instance, online learning to

‘feed-forward’ into organisational learning and organisational knowledge. Other

technological advantages of e-HRM implementation are: standardisation of the system

within group and provision of direct access to employees in order to lead to reduced

queries and data entry of employee records minimised through automation;

transformational - towards alignment of employees and organisational strategy such as

knowledge management system, e-recruitment, and online employer branding; internet

enabling organisation modify work arrangement – work from home or office at any time;

and provision of timely and quick access to information (Martin & Reddington, 2010;

Chen and Perry, 2003; Bell et al, 2006).

4.1 Proposed Methodological Approach

For this research paper, a conceptual model has been developed based on previous

literature to test and validate this specific area services. Qualitative analytical method is

mostly preferred to the Quantitative analysis, for this research since inductive and would

be case study focus. In addition, qualitative analysis will allows for flexibility and

complexities in e-HRM implementation that would encourage development of deeper

understanding and building of theory.

By adopting case study research approach, the researchers intend to select multiple case

studies within public sector organisations. Interpretive epistemological stance will be

adopted in order to understand phenomena through the meaning that people assign to

them. As a result, the focus of the empirical research will be examining the full context

by adopting face-to-face interview techniques with participants as well as observation to

collect data. Data collection will consist of use of conceptual model to appraise and

analyse various factors in the study area. Participants will be selected through named

contacts from each of the case study organisations, ranging from junior to middle and

senior managers. The expectation is that the participants should involve decision makers

and implementer of changes to these organisations.

4.2 What Next? Future Studies

The next step is to test and validate the conceptual framework by carrying out research

visits to the case studies as part of the empirical study. Data will then be analysed using


19

analytical tools such as nVivo to form the themes and present the finds. As part of

validation, the framework should be reconceptualised after findings ad based on the

issues and lessons learned, and recommendations should be made, which would serve as

practical guide for ensuring successful e-HRM implementation process.

Researchers also anticipate that scholars and practitioners could test and validate this

conceptual framework in future e-HRM studies especially within the context of

information systems (and digital government).

5.0 Summary and Conclusions

HRM concept is based on government-to-employee (G2E) systems which encompass e-

HRM platforms allowing interactions between a government and its workers. E-HRM

allows employees to make use of intranets and web-based management to access

personnel or human resources-related information and other activities such as

performance evaluation/appraisal, training, and policies. Some of the benefits of e-HRM

implementation in organisations are: the use of technology to reduce human resource

transaction costs and recoup costs associated with the technology, improvements in the

general organisational effectiveness and in the quality and relevance of human resource

services to employees (Bell et al, 2006). In the same vein, used e-government to improve

the delivery of services to citizens, streamline public sector operations, and enhance

overall government accountability (Hunter & Jupp, 2001).

Despite the driver, implementing e-HRM poses various kinds of obstacles, barriers and

challenges which have prevented organisations’ transition from traditional management

into the method of unique management, taking technology as part of the success.

However previous studies from scholars uncover the effect of e-management use in

human resource at organisations. For instance, there is a gap between theory and

application in the use of information technology in human resource management. Further,

there is flexibility arising from the application of electronic resource in organisations

(Srivasata, 2010; Jaradat, 2013).

The researchers therefore advocate the proposed conceptual framework to be tested and

validated as it could be beneficial for decision makers and implementer of changes to use

the model as a frame of reference. Future studies are suggested in the aspect of adoption

of case study approach to analyse e-HRM implementation as e-Government strategy in

organizations, be it public, private or voluntary sectors.


20

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PESTLE Analysis

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