Does e-HRM improve labour productivity? A study of commercial bank workplaces in Pakistan

Abstract

Purpose Drawing on data from a unique, large-scale survey, the purpose of this paper is to examine the links between e-HRM and perceived labour productivity both directly and through the mediating role of HR service quality amongst commercial-bank workplaces in Pakistan, many of which have introduced e-HRM. Design/methodology/approach The authors use partial least squares structural equation modelling to examine the direct links between e-HRM and productivity as well as the mediated links between e-HRM, perceived HR service quality and productivity. Findings The authors show that e-HRM practices have a statistically significant, positive effect on managers’ perceptions of labour productivity. The authors also reveal that e-HRM practices influence the quality of HR service, and that the quality of HR services fully mediates the relationship between e-HRM practices and managers’ perceptions of labour productivity. Practical implications The results highlight the importance of designing and implementing e-HRM systems so that they support organisation workflow and enable workers to carry out a range of HR and non-HR activities more efficiently. In particular, this study suggests that managers should focus on how e-HRM impacts on HR service quality in a holistic way, as this is the “route” via which e-HRM can improve labour productivity. Originality/value Existing research has demonstrated a link between e-HRM and the quality of HR services; however, these studies downplay the potential impact of e-HRM on labour productivity, a key organisational outcome and one that e-HRM aims to improve. This study contributes to the HRM literature by identifying how e-HRM can improve labour productivity by enhancing the perceived HR service quality. This study, therefore, provides the basis for future theory developments in this area.

Behaviour Intention Among Property Developer Employees to Adopt Technology Application at Workplace

“…Thus, it shows that the performance of an organization relates to the productivity of the workforce within the organization itself. This was confirmed that stated greater use of EHRM practices directly leads to an improvement in labor productivity [7].…”

Linking e-hrm practices and organizational outcomes: empirical analysis of line manager’s perception

“…Due to a lack of universal e-HRM practices, the use of e-HRM practices varies from country to country and industry to industry (Iqbal, Ahmad, Allen, & Raziq, 2018;Obeidat, 2016). Bondarouk et al (2016) and Iqbal et al (2018) argue that there is limited empirical evidence on the e-HRM value creation proposition from the developing country context. Research suggests that country specific empirical evidence is essential to conclude the e-HRM value creation debate (Ahmad & Allen, 2015;Panayotopoulou, Galanaki, & Papalexandris, 2010).…”

“…Therefore, we select banks where e-HRM has been used for more than one year. Iqbal et al (2018) suggest that line managers are central to interpreting e-HRM value creation. Purcell and Hutchinson (2007) highlight the importance of the perceptions of line managers to explaining the HRM-performance causal chain.…”

AI Recruitment: Explaining job seekers’ acceptance of automation in human resource management

“…The increasing demand for information technologies (IT) within the field of human resource management (HRM) changes the way organizations handle human resource (HR) [1,2]. Organizations have early recognized that HRM benefits from the use of new IT [3] as it increases labor productivity [4] and shifts the organizational role of HRM to a more strategic one [3,[5][6][7]. Thus, organizations make huge efforts to push electronic HRM (e-HRM).…”