1

CONTEXTUAL FEATURES OF ELECTRONIC-HUMAN RESOURCE

MANAGEMENT (E-HRM) IN MANAGING ORGANIZATIONAL PERFORMANCE AND
COMPETITIVE RIVALRY IN NIGERIAN BANKING SECTORS

BY
SALAU, Odunayo Paul (odunayo.salau@covenantuniversity.edu.ng)
Department Of Business Management, Covenant University, Ogun State
FALOLA, Hezekiah Olubusayo (Hezekiah.falola@covenantuniversity.edu.ng)
Department Of Business Management, Covenant University, Ogun State
KALEJAIYE, Peter Oluwadare (petkal2000@yahoo.com)
Olabisi Onabanjo University, Ago-I woye, Ogun State

ABSTRACT
The activities and practices of managing human resources has been transformed in the recent years due to the dynamic
change from labour intensive to capital intensive. The applications of the changes helps in shaping organization towards
the attainment of corporate objectives. The objective of this study is to determine how transformational E-HRM
contributes to better service delivery by the organization. Descriptive survey design method was used to collect data for
the study, a total of 280 copies of questionnaire were distributed to the management and staff of some selected banks in
Ogun State, South-West, Nigeria out of which 210 representing 75% were valid for the research. The data collected was
analyzed using Statistical Package for Social Science (SPSS). The results show that strong relationship exists between E-
HRM and management of organizational change and competitive rivalry. The summary of the findings indicates that there
is strong correlation between the tested dependent variable and independent construct. However, it was recommended
that HR professionals and organizations can focus on more meaningful e-HRM tasks and should always be empowered to
provide more value to their organizations. Also, organizations and managers should offer a flexible model of HRM that
meets the changing needs of an increasingly diverse and global workforce.
KEYWORDS: E-Recruitment, Human Resource Management, Career Management, Skill Management, Technology, Completive Rivalry

1.0 Introduction
The practice and philosophy of human resource management has changed over the years due to rapid change in
technology. The act of getting things done through human resource in the banking industries has also changed
dramatically in recent years. The activities and programmes of HR has become a fundamental aspect through
information technology (Tremblay, Patry and Lanoie, 2008; Ulrich, 1996). Due to increased development of
information technology, electronic management has become a cornerstone in the management and development
of HR activities. Basically, the significant function of electronic management in human resource cannot be over
emphasized when it comes to promoting organizational effectiveness (Adenekan, 2009). Therefore, it is argued
that for any establishment of organization to survive in this competitive age, it becomes imperative to adopt the
use of e-HRM in order to improve efficiency and achieve a more strategic level (CIPD, 2005).
Numerous scholars like Ruel, Bondarouk and Looise, (2004) and Marler (2009) have examined a collection of
wide-ranging goals for understanding e-HRM, including cost & savings reduction, improved service &
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satisfaction of customers requirement in the banking industries (Strohmeier, 2007 and Rousseau, et al., 2008).
The need to use the electronic human resource management has helped in promoting efficient staffing
processes, reward and incentives, training and development, performance management, health and safety,
employee relations, retention and policies on work-life balance (Enshur, Nielson and Grant-Vallone, 2002) and
may be used to manage employee information across the entire employment cycle (Thite and Kavanagh, 2009).
By definition, E-HRM has been defined as a way of putting into practice HR programmes, policies,
philosophies and practices through a deliberate and coordinated web-technology-based control (Ruel,
Bondarouk and Looise, 2004). Strohmeier, 2009 sees E-HRM as a systematic way of adopting information
technology in performing of HR activities. Grant-Vallone, 2002) posited that eHRM as the application of
information technology in managing employee information throughout the employment cycle. Sanayei &
Mirzaei (2008) viewed E-HRM as a way of putting into practice the use of internet technology in the
implementing human resources policies, programmes and plans. (Oiry, 2009) sees eHRM as the use of
information technology in the practice of human resources activities and programmes. (Ruel, 2009) added that
E-HRM is a dynamic process of creating value through the use and application of electronic management in the
practice of human resource management. (Ramayah, 2011) argued that E-HRM is the use of electronic
mechanism in creating values that help in the attainment of corporate objectives. By implications, electronic-
Human Resource Management costs lower and improves efficiency by creating mountain of paperwork and
streamlining work flow, Automating redundant HRM tasks, Empowering employees to embrace a self- service
HRM delivery system, Keeping the banks workflow fully informed about all important human resource
compliance issues and corporate events, Speeding up the response time of HRM systems, Ensuring that more
informed decisions are made and Improving time management. The focus of this study is to examine the role of
electronic-human resource management (e-HRM) and organizational performance in the banking sectors. To
achieve the objective of the research work, this study addressed the following research questions.
i. In what ways has operational E-HRM been impactful in facilitating efficient HRM process?
ii. To what extent has the application of E-HRM influences organizational performance
iii. What significant effect does relational E-HRM have on employee commitment?
iv. How has transformational E-HRM contributed to better service delivery by the organization?
v. What useful policy recommendations will this study offer?

1.1 Statement of Hypotheses
Ho1: There is no significant relationship between operational E-HRM and efficient HRM process.
Ho2: E-HRM does not have any significant effect on organizational performance.
Ho3: Relational E-HRM does not have any significant effect on employee commitment.
Ho4: Transformational E-HRM does not contribute to better service delivery by the organization.
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In equation form, these construct/hypotheses were expressed in the following variable:
Y = F(X)

Where; Y is a dependent variable
X is an independent variable
F is interpreted as functional
Where; OP = organizational performance
E-hrm= E-human resource management.
Y = OP
X = E-hrm
Hence substituting into y and x respectively
OP = F(E-hrm)
X = Electronic Human resources Management (E-HRM)
X1 = Operational E-HRM
X2 = Relational E-HRM
X3 = Transformational E-HRM
Y = Organizational Performance
Y1 = Efficient HRM process
Y2 = Employee Commitment
Y3 = Better Service Delivery by Organization

2.1 Theoretical Foundations
The following theories were examined for the suitability of this study:
2.1.1 I nstitutional Theory
This theory was proposed by DiMaggio & Powell, 1983. he offered a constructive and institutional argument
that explains the relationship between the environment and the adoption of e-HRM practice. The theory
acclaimed that for any organizations to survive and exist, it becomes imperative to respond and adjust to the
changing trend in the market and integrate the core values of the organization with the accomplishment of the
actual performance. Changes in the organization culture and policies are often influenced by internal and
external forces (Broderick and Boudreau (1992). Therefore, electronic human resource management (E-HRM)
is now seen as one of the agents of the change. Since the World has turned to a global village, organization that
tends to resist the changes and trending pattern in information technology (IT) are likely to experience a
significant pressure like e-recruiting or e-learning, even when the traditional recruiting practices may fully
satisfy the needs of the organization.

2.1.2 Resourced Based Theory
The resourced based theory was propounded by Barney, (1999). This theory serves as one of the bedrocks for
explaining electronic HRM. This theory laid emphasis in explaining the relationship between the adoption e-
HRM and the effect it has on organizations. Theory emphasizes on how an organization can overcome
competitive rivalry and attain high level of performance. The theory added that for organizations to survive,
there is need for them to integrate and harmonize the Resourcing strategies in the organization (Gardner, Lepak,
and Bartol (2003). These Resourcing strategies are the people, technology, finance and information. The people,
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therefore, become human resource by virtues of the functions they perform in the organizations. The human
resource supplies the physical labour, skills which are needed to plan, implement and exploit other resourcing
means to these ends (Barney and Wright, 1998). Therefore, E-HRM and its applications like e-payment, e-info,
e-recruitment, e-learning etc., can equally be explained as contributing activities that equips the organization
with human resources who create, design and develop productive economic institutions. By so doing, the theory
continued to explain how Human resource can become business friendly (Haines and Lafleur, 2008) and
translate the consequences of e-HRM to achieving a desired results and outcomes in the banking sectors.
3.0 Materials and Methods
A descriptive survey design method was used in carrying out this study using utilizing the stratified and simple
random sampling techniques. A total of 280 copies of questionnaire were distributed to the management and
staff of some selected banks in Ogun State, South-West, Nigeria. Data were collected through self-administered
questionnaires. This study comprises five sections in the questionnaire (A, B, C, D, E). Section A comprised of
Personal data of respondents, section B involved the information regarding the Operational Electronic Human
Resource Management, section C showed the factors responsible for the Relational Electronic Human Resource
Management, section D indicated its effects on organizational performance and lastly section E comprised of
the level of E-HRM practices. The data collected was analyzed using statistical package for social science
(SPSS).
4.0 Data Analysis Findings and Discussion
The data obtained from this study were presented using tables with specifications made on the amount of
questionnaire distributed. Out of 280 questionnaire distributed, only 210 questionnaires were duly filled and
returned. The results were obtained based on the opinions of the respondents.
Socio Demographic Characteristic of the Respondents
Variables Frequency Percentage Cumulative
Percentage
SEX Male
Female
Total
114
96
210
54.3
45.7
100.0
54.3
100.0
AGE GROUP
21-30
31-40
41-50
51-above
Total

170
30
6
4
210

81.0
14.3
2.9
1.9
100.0

81.0
95.3
98.2
100.0
MARITAL STATUS
Single
Married
Total

142
68
210

67.6
32.4
100.0

67.6
100.0
EDUCATIONAL QUALIFICATION
OND/diploma
B.sc/HND
M.sc/M.BA
Others
Total

02
142
40
26
210

1.0
67.6
19.0
12.4
100.0

1.0
68.6
87.6
100.0
Source: Data collected from survey research (2014)
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The above table shows that the total number of male respondents is 114 representing 54.3% of the total sample
and total numbers of female respondents are 96 also representing 45.7% of the total sample. This implies that
the male respondents constitute the larger part of total respondents. The table above shows that 170 (81%) of
the respondents are between the ages of 21 and 30 while 30 (14.3%) are between 31 and 40. In addition, 6
(2.9%) are between 41 and 50 while 4 (1.9%) are 51 and above. It can be seen clearly from the table that as the
age bracket increases, the frequency decreases. This implies that the age group 21-30 was most represented in
the sample. From the table on marital status, it can be seen that the total number of 142 (67.6%) are single while
68 (32.4%) are married. Based on the Age, the table shows that total number of 2 (1%) has an educational
qualification of NCE/OND while a total of 142 (67.6%) has an educational qualification of HND/B.Sc. In
addition, it was observed that a total of 40 (19%) were M.Sc/MBA while a total of 26 (12.4%) has other
educational qualifications.
4.1 TESTING OF HYPOTHESES
4.1.1 H01: E-HRM does not have any significant effect on organizational performance.


MODEL SUMMARY
Model
R
R
Square
Adjusted R
Square
Std. Error of the
Estimate
1 .626(a) .392 .368 .70136

a) Predictors: (Constant), The use of HR technology is cost effective, Using HR applications enhances service
delivery of the organization, The use of HR applications, portals and web based technologies has made the HR
department flexible, Using HR application saves time and energy.
Interpretation of Result: The model summary table shows how much of the variance in the dependent
variable (The use of HR technology gives value to the organization) is explained by the model. In this case the
R square is .392 if expressed by a percentage will be 39.2%. This means that our model explains 39.2% of the
variance the use of HR technology gives value to the organization.

ANOVA (b)
Mode
l

Sum of
Squares Df
Mean
Square F Sig.
1
Regression
31.723 4 7.931 16.122 .000 (a)
Residual 49.191 .492
Total 80.914

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a) Predictors: (Constant), The use of HR technology is cost effective, Using HR applications enhances service
delivery of the organization, The use of HR applications, portals and web based technologies has made the HR
department flexible, Using HR application saves time and energy
b) Dependent Variable: The use of HR technology gives value to the organization
The ANOVA table shows the assessment of the statistical significance (sig=0.000), in which the P-value is
equal to .000, and less than or equal to 0.05, therefore we reject the null hypothesis. So we can conclude that at
least one of the predicators is useful for predicting the use of HR technology gives value to the organization
therefore the model is useful.
Coefficients (a)


Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta B Std. Error
(Constant) 1.075 .410 2.622 .010
Using HR applications enhances
service delivery of the organization
-.040 .108 -.041 -.372 .711
Using HR application saves time
and energy
.369 .113 .373 3.267 .001
The use of HR applications, portals
and web based technologies has
made the HR department flexible
.262 .109 .252 2.401 .018
The use of HR technology is cost
effective
.166 .094 .161 1.765 .081
a) Dependent Variable: The use of HR technology gives value to the organization
The co-efficient table shows which variables that were included in the model contributed to the prediction of the
dependent variable. The study is interested in comparing the improvement of each independent variable;
therefore the Beta values used for the comparison in this table, the largest beta co-efficient is .373 which is for
using HR application saves time and energy. This means using HR application saves time and energy, makes
the strongest unique contribution to explaining the dependent variable the use of HR technology gives value to
the organization when the variance explained by all other variables in the model is controlled. The table seeks to
explain which of the variables is making a statistically significant unique contribution to the model looking at
the sig column in the table; it reveals that using HR application saves time and energy made a unique and
statistical significant contribution to the prediction of the use of HR technology gives value to the organization
hence, we reject the null hypothesis. The implication of this result is that the practice of E-HRM in the selected
banking industries has significant effect on organizational performance, but looking at the co-efficient table,
using HR application saves time and energy has significant effect on organizational performance.
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4.1.2 HYPOTHESIS 2
H0: Relational E-HRM does not have any significant effect on employee commitment.
H1: Relational E-HRM has significant effect on employee commitment.

MODEL SUMMARY
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .570(a) .325 .305 .92834

a) Predictors: (Constant), Employees are trained on using HR related applications, Recruitment and selection
process is carried out online, HR technology is easy to use
Interpretation of Result: The model summary table shows how much of the variance in the dependent
variable (Using HR application increases employees commitment) is explained by the model. In this case the R
square is .325 if expressed by a percentage will be 32.5%. This means that our model explains 32.5% of the
variance Using HR application increases employees commitment and this in turn, gives competitive advantage.

ANOVA

Sum of
Squares Df
Mean
Square F Sig.
1 Regressio
n
41.948 3 13.983 16.225
.000
(a)
Residual 87.043 .862
Total 128.990

a) Predictors: (Constant), Employees are trained on using HR related applications, Recruitment and selection
process is carried out online, HR technology is easy to use
b) Dependent Variable: Using HR applications increases employees commitment
The ANOVA table shows the assessment of the statistical significance (sig=0.000), in which the P-value is
equal to .000, and less than or equal to 0.05, therefore we reject the null hypothesis. So we can conclude that at
least one of the predicators is useful for predicting Using HR application increases employees commitment and
competitive advantage.



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Coefficients (a)

Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta B Std. Error
(Constant) .934 .458 2.037 .044
HR technology is easy
to use
.032 .141 .026 .228 .820
Recruitment and
selection process is
carried out online
-.017 .104 -.018 -.168 .867
Employees are trained
on using HR related
applications
.665 .120 .563 5.561 .000
a) Dependent Variable: Using HR applications increases employees commitment.
The co-efficient table shows which variables that were included in the model contributed to the prediction of the
dependent variable. The study is interested in comparing the improvement of each independent variable;
therefore the Beta values used for the comparison in this table, the largest beta co-efficient is .563 which is for
employees are trained on using HR related applications. This means employees in the banking sector are trained
on using HR related applications, makes the strongest unique contribution to explaining the dependent variable
Using HR applications increases employees commitment when the variance explained by all other variables in
the model is controlled. The table seeks to explain which of the variables is making a statistically significant
unique contribution to the model looking at the sig column in the table; it reveals that Employees are trained on
using HR related applications made a unique and statistical significant contribution to the prediction of Using
HR applications increases employees commitment hence, we reject the null hypothesis. The implication of this
result is that relational e-hrm has significant effect on employees commitment, but looking at the co-efficient
table, employees are trained on using HR related applications has significant effect on employees commitment.

4.1.3 HYPOTHESIS 3
H0: Transformational E-HRM does not contribute to better service delivery by the organization.
H1: Transformational E-HRM contributes to better service delivery by the organization.

MODEL SUMMARY
R R Square
Adjusted R
Square
Std. Error of
the Estimate
.220(a) .048 .039 .91017
a) Predictors: (Constant), Employees are informed of new development within the organization through web.
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The model summary table shows how much of the variance in the dependent variable (New methods and
strategic changes are introduced to the employees online) is explained by the model. In this case the R square is
.048 if expressed by a percentage will be 04.8%. This means that our model explains 04.8% of the variance new
methods and strategic changes are introduced to the employees online.
ANOVA

Sum of Squares
Df Mean Square F Sig.
1 Regression
4.331 3 4.331 5.227

.024 (a)
Residual 85.327 .828
Total 89.657
a) Predictors: (Constant), Employees are informed of new development within the organization through web.
b) Dependent Variable: New methods and strategic changes are introduced to the employees online.
Interpretation of Result: The ANOVA table shows the assessment of the statistical significance (sig=0.024),
in which the P-value is equal to .024, and less than or equal to 0.05, therefore we reject the null hypothesis. So
we can conclude that at least one of the predicators is useful for predicting new methods and strategic changes
are introduced to the employees online therefore the model is useful.

Coefficients (a)
Unstandardized Coefficients
Standardized
Coefficients T Sig.
B Std. Error Beta B Std. Error
(Constant) 3.861 .123 31.282 .000
Employees are informed of new development
within the organization through web .041 .018 .220 2.286 .024
a) Dependent Variable: New methods and strategic changes are introduced to the employees online
The co-efficient table shows which variables that were included in the model contributed to the prediction of the
dependent variable. Therefore the Beta value used for the comparison in this table, the largest beta co-efficient
is .220 which is for employees are informed of new development within the organization through web. This
means employees are informed of new development within the organization through web, makes the strongest
unique contribution to explaining the dependent variable new methods and strategic changes are introduced to
the employees online when the variance explained by all other variables in the model is controlled. The table
seeks to explain the variable which is statistically significant in contribution to the model looking at the sig
column in the table; it reveals that employees are informed of new development within the organization through
web made a unique and statistical significant contribution to the prediction of new methods and strategic
changes are introduced to the employees online. The implication of this result is that transformational e-hrm
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contributes to better service delivery by the organization, but looking at the co-efficient table, employees are
informed of new development within the organization through web contributes to better service delivery by the
organization.

4.1.4 HYPOTHESIS 4
Level of E-Hrm Practices
MODEL SUMMARY
R R Square
Adjusted R
Square
Std. Error of the
Estimate
.696(a) .484 .469 .68954

a) Predictors: (Constant), Employee skills are enhanced through web-based HR applications (E-Skill
Management), Salary review is carried out online (E-Salary Review), Employee training is supported by web-
based HR applications (E-Training)
The model summary table shows how much of the variance in the dependent variable (Employee appraisal is
done through web-based HR applications (E-Appraisal)) is explained by the model. In this case the R square is
.484 if expressed by a percentage will be 48.4%. This means that our model explains 48.4% of the variance new
methods and strategic changes are introduced to the employees online.
ANOVA (b)
Sum of Squares Df Mean Square F Sig.
Regression 45.025 3 15.008 31.565 .000 (a)
Residual 48.023 .475
Total 93.048
a) Predictors: (Constant), Employee skills are enhanced through web-based HR applications (E-Skill
Management), Salary review is carried out online (E-Salary Review), Employee training is supported by web-
based HR applications (E-Training).
b) Dependent Variable: Employee appraisal is done through web-based HR applications (E-Appraisal).
The ANOVA table shows the assessment of the statistical significance (sig=0.000), in which the P-value is
equal to .000, and less than or equal to 0.05, therefore we reject the null hypothesis. So we can conclude that at
least one of the predicators is useful for predicting Employee appraisal is done through web-based HR
applications (E-Appraisal) therefore the model is useful.



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Coefficients (a)

Unstandardized Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta B Std. Error
(Constant) .591 .403 1.468 .145
Salary review is carried out
online(E-Salary Review)
-.007 .055 -.010 -.134 .893
Employee training is supported
by web-based HR applications
(E-Training)
.642 .103 .547 6.201 .000
Employee skills are enhanced
through web-based HR
applications (E-Skill
Management)
.219 .090 .217 2.427 .017
a) Dependent Variable: Employee appraisal is done through web-based HR applications (E-Appraisal).

The co-efficient table shows which variables that were included in the model contributed to the prediction of the
dependent variable. The study is interested in comparing the improvement of each independent variable;
therefore the Beta values used for the comparison in this table, the largest beta co-efficient is .547 which is for
employee training is supported by web-based HR applications (E-Training). This means employee training is
supported by web-based HR applications (E-Training), makes the strongest unique contribution to explaining
the dependent variable Employee appraisal is done through web-based HR applications (E-Appraisal) when the
variance explained by all other variables in the model is controlled. it reveals that Employees are trained on
using HR related applications made a unique and statistical significant contribution to the prediction of
Employee appraisal is done through web-based HR applications (E-Appraisal) hence, we reject the null
hypothesis.

5.0 Conclusion
It was found that operational e-hrm, comprises both efficiency and effectiveness in e-HRM. A few studies
address the efficiency of e-HRM. First, there are hints from case studies that support the assertion of increased
productivity due to e-HRM. The finding of this generally indicate a reduction of HR staff, faster-processes, cost
reduction, and a release from administrative burdens resulting from automation in the banking industries. On
the other hand, the findings indicated that savings within the HR department are often seen in the banking
sectors as an effect way of simply shifting responsibilities from HR to line managers and employees.
Accordingly, considerable cost savings are reported for e-recruiting and e-selection, due to reduced employee
turnover, reduced staffing costs, and increased hiring efficiency in the selected banks. Transformational e-hrm
concerns the overall changes of the HRM function that centrally aim at the role the HRM plays in company
performance and strategy support. This is supported by the finding that HR professionals and organizations can
focus on more meaningful e-HRM tasks and are empowered to provide more value to their organizations. Also,
12
organizations and managers should offer a flexible model of HRM that meets the changing needs of an
increasingly diverse and global workforce.


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