Impact of e-HRM on Transactional Functions of HRM: An empirical study on FMCG manufacturing companies located in West Bengal

Abstract

Purpose: This research will investigate the impact of E-HRM on the transactions of FMCG companies in West Bengal. This research work aims to identify the principal influencing factors and measure the impact of e-HRM over traditional HRM in the selected FMCG organizations. Background: E-HRM is the hottest research topic in the FMCG sector. Like Electricity, HR professionals also have chosen E-HRM for its advantages and user-friendliness in the working environment. The advancement of IT and its presence everywhere (like God particle) become the principal factor to assist any organization or business. The advancement of IT is the primary influencer for rapid change in Human Resource Management practice and it helps in the reengineering of the HR functions. From the background of the study, it is clear that E-HRM has a significant influence on the organizations. Methodology: In this Research work, 150respondents (n=150) are taken as sample size who are specially working with the E-HRM system. Data was collected with the help of the survey method. Correlation, Multiple Linear Regression (MLR), Paired sample t-test has been used to find out the relations between drivers of E-HRM and benefits of E-HRM. Box plot and paired sample t-test have been used to find out the significant difference in E-HRM and traditional HRM. E-T graph was built to find out the relation between E-HRM efficiency and transactional time. Result and Discussions: In the first phase, the profile of the respondents liked the manager's work experience in the organization, age, gender, and designation. Correlation analysis showcases that the organizational structure has a deep relation with the utilization of E-HRM practice. We have tried to identify the relevant variables under various dimensions of E-HRM practice through Reliability Analysis. In the next phase, KMO (Kaiser-Meyer-Olkin) and Bartlett’s Test was applied to the collected data. KMO Measure of Sampling Adequacy Test shows the value of .715, which is appropriate for factor analysis. The Principal Component Analysis Extraction Method was used to analyze the data with Varimax Rotation Method. For clarity of the factor definitions, factor loadings of more than 0.500 were taken into consideration. Both factor analyses yielded three factors in all, which explains70 percent and 83 percent of the total variance. In the next phase, we have attempted to validate the impact of E-HRM on different types of e- HRM from the perspectives of the responses of the managers. The main objective of the study is to evaluate the relative importance of E-HRM which leads to different types of E-HRM practices. We found significant positive interrelationships among three key dimensions about the impact of E-HRM (Financial benefit, Employee satisfaction, and Strategic capability) with different types of E-HRM practice (Operational, Transformational, and Relational). The overall impact of E-HRM has a positive as well as a significant relationship with all types of E-HRM practice. The use of multiple regression analysis and scatter diagrams in validating the model is also a valuable contribution to our study. The result of the paired sample t-test showcases that there is a clear difference in E-HRM and normal HRM, and E-HRM has the most advantages over traditional HRM. Efficiency and transactional time (E-T graph) have a negative relation. Four Zones of E-T graph specifies the conditions of HR professionals from the perspectives of skill, performance, and innovation. Conclusions: This study makes primarily five points. First, the FMCG companies are mainly practices three types of e-HRM function. Those are as follows: Operational, Relational, and Transformational. Second, Most of the FMCG sector adopts E-HRM for its principal three benefits; those are a financial benefit, strategic capability, and employee’s satisfaction. Third, operational, relational and transformational functions are positively leading financial benefit, strategic capability, and employee satisfaction. The overall analysis is showcased that e-HRM functions have a positive influence on the overall three factors. Fourth, E-HRM has advantages over HRM functions over normal HRM. Fifth, e-HRM efficiency leads to decreasing the transactional time. There is a flow from competitive disadvantage to competitive advantage using E-HRM to take advantage of the market.