The assessment of e‐HRM tools and its impact on HRM system effectiveness and organizational effectiveness: An empirical study of selected multinational companies in Ghana

Abstract

This study aims to investigate the effect of the usage of e‐HRM on HRM system effectiveness and organizational effectiveness. The dearth of empirical studies in developing countries, especially in Ghana, warranted this study. The study adopts a quantitative cross‐sectional approach and uses descriptive and inferential research approaches. The targeted population was employees, HR professionals, and line managers at Tata Africa Holdings (Ghana) Limited, Alliance Motors (Ghana) Limited, and MTN Ghana Limited (N = 610). The sample size was determined using Cochran's (1977) sample size formula (n = 236). Data was collected using a structured questionnaire constructed in Likert‐scale style and self‐administered. The sampling technique was stratified random sampling. Data were analyzed using structural equation model‐partial least square (version 3.0). The results revealed that e‐HRM tools have statistical significance for policy‐level effectiveness, technical effectiveness, strategic effectiveness, and human resource management effectiveness. There is a positive relationship between policy‐level effectiveness and organizational effectiveness and between strategic‐level effectiveness and organizational effectiveness. However, there is a negative relationship between technical effectiveness and organizational effectiveness and between HRME and OE. It was recommended that management introduce e‐HRM technologies since they have a positive relationship between HRM effectiveness and organizational effectiveness.