CAIIB ABM Module B Unit 7 : HRM and Information Technology

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Aug 3

CAIIB Paper 2 (ABM) Module B Unit 7 : HRM and Information Technology (New Syllabus)

IIBF has released the New Syllabus Exam Pattern for CAIIB Exam 2023. Following the format of the current exam, CAIIB 2023 will have now four papers. The CAIIB Paper 1 (Advanced Bank Management) includes an important topic called "HRM and Information Technology". Every candidate who are appearing for the CAIIB Certification Examination 2023 must understand each unit included in the syllabus.

In this article, we are going to cover all the necessary details of CAIIB Paper 1 (ABM) Module B (HUMAN RESOURCE MANAGEMENT) Unit 7 : HRM and Information Technology, Aspirants must go through this article to better understand the topic, HRM and Information Technology and practice using our Online Mock Test Series to strengthen their knowledge of Lease Finance & Hire Purchase. Unit 7 : HRM and Information Technology

Introduction

Using technology to continuously improve the quality of the work. Technology can improve the information available to HR, facilitating HR processes, and making them faster and more effective. One of the biggest allies in HRM, HRIS is adopted to make organizations more accurate and effective.
The banking sector has absorbed maximum technology for their operations. IT has offered a variety of delivery channels to support customers' needs in an efficient and effective manner.

Role Of Information Technology In HRM

As such its first responsibility would be to adopt the IT orientation within the department. There is tremendous scope to use IT in a whole range of HRM functions. viz. recruitment, training, placement, appraisal and reward systems, organizational development initiatives, etc. The need for use of IT can be seen through the following observations:

Certain basic information about an employee is used by number of functionaries within and outside the HR department. For instance, if the organization has a geographical spread, the information about an employee is floated at field units, maintained and processed at field administrative units as well as at the corporate (control) office.
The database related to an employee is becoming broad-based as various dimensions are getting added. e.g. along with the traditional data regarding salary, allowances, increments, leave, etc.
Updating the data could be done partially by different individuals from different locations.
The decisions related to HR – day-to-day or policy reviews – need to be embedded in databases to achieve objectivity and consistency in decisions. Such objectivity is imperative and can be achieved as IT enhances transparency.
Human Resources being one of the significant components of internal environment, policy review must be undertaken to respond to the changes.
To ensure adherence to statutory requirements, maintaining of such database is needed.

Human Resource Information System (HRIS)

Human Resource Information System (HRIS) has become an organizational necessity. The need for HRIS is an offshoot of the requirement to take frequent strategic decisions concerning employees. Decisions taken on the basis of information, whether it is concerning, posting, training, compensation, job rotation, promotion, etc.

Need for HRIS in Organisations

HRIS provide human resource professionals with opportunities to enhance their contribution towards the strategic direction of their organisation. First, by automating and devolving many routine human resource task to the line management, HRIS provides human resource professionals with the time needed to direct their attention towards more business critical and strategic level tasks, such as leadership development and talent management. Other advantages of HRIS implementation are:

For effective and realistic evolving of HR policies, programmes and schemes, etc.
Facilitating timely and accurate decision making in areas like promotion, transfer, nomination, setting employees provident funds, retirement, gratuity, leave travel concession and earned leave compensation.
Supplying data and submitting returns to government and other statutory agencies with ease and comfort.
Collecting appropriate data and converting them to information and knowledge for improved timeless and quality of decision making.
Generating a greater number of accurate and real time human resource related reports.
Increase competitiveness by Re-engineering human resource processes and functions.
Improving employee satisfaction by delivering human resource services more quickly and accurately.
Provides a comprehensive information picture as a single, integrated data base; this enables organisations to provide structural connectivity across units and activities and to increase the speed of information transactions.

Maintenance of Database, Access Control and Use for Decision Making

It is evident from the contents of HRIS database mentioned above that all data do not need updating frequently. Some of the static data required to be entered only once in master file, viz., name, date of birth, date of joining, etc. Data on placement, training, etc.,

HR Research

Research in HRM can be undertaken to understand: trends of existing systems like recruitment, promotion, training, appraisal system to understand the workforce in terms of motivation, commitment, expectation, frustration etc. to remain sensitive to internal environment, regular opinion surveys, benchmarking, climate studies etc. can be conducted.

Human Resource Management System (HRMS)

As stated above, HR work is more complex and involved today than it ever has been. There's so much that goes into the management of employee information, which is used for everything from recruiting and hiring to training, evaluations, and so much more. The importance and manpower behind these tasks make it critical for human resources professionals to have HR management software for more efficient management of HR information.

This is why many companies are now using a HRMS (Human Resource Management System) – a combination of systems and processes that connect human resource management and information technology through HR software. A HRMS can be used in candidate recruiting, payroll management, leave approval, succession planning, attendance tracking, career progression, performance reviews, and the overall maintenance of employee information within an organisation. The automation of repetitive and time consuming tasks associated with human resources management frees up some of the companies most valuable employees and allows the focus to shift to culture, retention, and other highly impactful areas.

Common Functions of HRMS Systems

The function of the human resources department involves tracking employee histories, skills, abilities, salaries, and accomplishments. Replacing certain processes with various levels of HRMS systems can distribute information management responsibilities so that the bulk of information gathering is not delegated strictly to HR.
By allowing employees to update personal information and perform other tasks, information is kept more accurate and HR professionals are not bogged down. Each module performs a separate function within the HRMS that helps with information gathering or tracking. For example, hiring would be carried out through the recruitment and on boarding module, employee performance is carried out through the performance evaluation and management module, and so on.

These HRMS modules can assist with:

Managing payroll
Recruitment and onboarding
Gathering, storing, and accessing employee information
Keeping attendance records and tracking absenteeism
Performance evaluation
Benefits administration
Learning management
Employee self-service
Employee scheduling
Analytics and informed decision making

Difference between HRMS and HRIS

The term HRMS is sometimes used synonymously with HRIS (Human Resource Information System), but a HRIS is really a type of HRMS. Functionally, however, there is no real difference in the type of systems offered going by one title or the other. At one time, a HRMS was a more complete automated solution to human resources management than software labeled as HRIS or even HCM, but re-branding by many companies has worked to make the different software titles generally indistinguishable. The notable differences are mentioned below.
Today, a HRIS is designed to track numerical data and employee information, such as an employee's schedule or SSN. A HRIS also helps HR departments manage their policies, procedures, and people in general. Tasks at the heart of a HRIS include reporting, training, recruiting, compensation, benefits administration, data tracking, workflow automation, and accounting functions.
On the other hand, a HRMS is more robust and is comprised of both IT and HR management technology. It deals with all the same information as a HRIS and a HCM in addition to non-quantitative information surrounding employees and applicants. Some unique HRMS features include on boarding, employee satisfaction, job performance, analytics, profitability, and more.

e-HRM

In simple words, e-HRM can be defined as the planning, implementation and application of information technology for both networking and supporting the HR activities. It is the integration of all HR systems and activities using the web based technologies.
Simply, when HR uses the Internet or related technologies to support their activities, procedures, processes, then it becomes an e-HRM. Through e-HRM, the HR manager can get all the data compiled at one place and can make the analysis and decisions on the personnel effectively.
As per Strohmeier. S (2007), "e-HRM is the planning, implementation and application of information technology for both networking and supporting at least two individual or collective actors in their shared performing of HR activities." E-HRM, in essence, is the devolution of HR operations to management and employees. They access these operations typically through intranet or other web-technology channels.

Various Types of e-HRM On the basis of functionalities, we can divide e-HRM into three different levels or tiers:

Operational e-HRM: It relates with the managerial elements of HR division. It is more about administrative functions like payroll and employee personal data.
Relational e-HRM: It is also known as Social e-HRM. It is concerned with the supporting business processes, viz., Training, recruitment, selection, etc. It relates to sharing of data with the managers and other concerned employees and making virtual relationship among them so they can remain constantly associated.
Transformational e-HRM: It is about strategic HR exercises such as knowledge management and strategic re-orientation. It is concerned with the HR strategies and its activities such as knowledge management, strategic orientation.

e-HRM has the potential to develop services to HR department internal and external clients, i.e., both employees and management, develop efficiency and cost effectiveness within the HR department and permit HR to become a strategic partner in achieving organisational goals.

e-HRM Activities Through e-HRM, the main activities that could be performed online are Recruitment, Selection, Training, Performance Management, Compensation.

HR Research

One of the primary orientations of the future organisations is to develop a problem-solving perspective. As such a research orientation is a necessity in all functions – all the more in HRM.
For instance some problems related to business parameters would get such attention through the usual activities of market share analysis, surveys, etc., as they are reflected obviously in the tangible dimensions of the business performance. But for HRM, a conscious effort to identify the issues is required.

Types of Applied Research

Following are the types of applied research:

Statistical approach: The researchers generate statistical standards from the existing records to evaluate the activities and programs. With this approach the team can discover the smallest of errors easily.
Comparative approach: The research team of the organisation directly compares its organisation with another organisation to figure out the areas of poor performance. This helps in identifying the areas that need improvement in the organisation.
Outside authority approach: Here the research team counts on the expertise of the consultant or published researched records as the standards of activity or performance evaluation. The outside help may result in correcting the cause of problem.
Compliance approach: With the help of samples from the human resource information system, the researchers look for the deviation from the laws and company policies. The compliance helps us to know whether the organisation is complying with the company policies and legal regulations or not.

Knowledge Management (KM)

KM refers to process of (a) creating, (b) storing (c) distributing and (d) pooling the knowledge (as per Wilcox-1997).The people in a system are the sources of creating knowledge while storing and distributing the information is the responsibility of the information technology machinery of the organization.
Hence management of 'knowledge worker' is very critical issue and cannot be done by traditional, bureaucratic process. Knowledge management has gained prominence in the light of the uncertainty that the employee who has created the knowledge, will continue with the organization or not, particularly where the attritions le77els are higher.

Technology in training

The technology offers an opportunity in designing training interventions to suit the individual learners. Important features are:

Mass learning user friendly material can be produces at low cost.
Trainers and trainees can be physically separated.
Trainee has the option to choose time and date and place and convenience form for learning.
Technology based training methods help in distance learning.

Advantages of E-Learning:

Enables learner to study at his convenient time and place and can have privacy
Enables him to study at his own pace
Can offer high level inter-action with immediate feedback and provide opportunity to check his understanding
Can be simulated to real life situation
Can be cost effective depending upon its use

Disadvantages of E-Learning

Relatively inflexible depending on a pre-produced programme
Requires greater self-discipline and commitment by the learner
May induce a sense of isolation
Does not permit personal reinforcement, therefore, the motivational effects are forgone
Can prove costly as expensive H1W and S/W are required

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