CAIIB ABM Unit 25 - HRM and Information Technology

CAIIB ABM Unit 25 - HRM and Information Technology (Year: 2019)

Globalisation has removed all the physical, and national boundaries by linking organizations from all parts of the world, by use of IT. HRM as a function has dual responsibility to respond to the developments having taken place in the area of information technology (IT), for transformation of the mind set of all individuals across the organization and also use of IT in day to day decision process.

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 IT in HRM

There is lot of scope for use of IT in whole range of HRM functions i.e. recruitment, training, placement, appraisal and reward system, organizational development initiatives etc. The need for use of IT can be seen through the following: i. Basic information about employee used within the organization. New dimensions have been added to employee data such as training, competencies, skills, expectations etc. Updation of employees data HRD decisions are data-based now and IT provides that data. Adherence to statutory requirements. As per Nadler: i. Massive influx of technology into workplace presents great challenge in keeping the workforce's v.-crk and knowledge base current and avoid workforce obsolescence New tools disrupt traditional work patterns and can have demoralizing effect. HRD effort must align to the corporate planning. HRD efforts would be examined in terms of contributing to high performance work unit and demonstrating results.

HR Information and Database Management

Computer based data can enhance the quality of decision making. A typical HR information system includes the following types of data: The need for use of IT can be seen through the following: i. Bio-data, Educational qualification, Professional qualification Organisational history (entry level, promotion, placements, training, performance appraisal, competencies, Salary & allowances.

The above type of data, requires few changes over a time period. But the data base provides lot of information as input for decision making.

HR Research : Research in HRM can be undertaken to understand: trends of existing systems like recruitment, promotion, training, appraisal system etc. 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.

KnowledgeManagement (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.

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

  1. Mass learning user friendly material can be produces at low cost.
  2. Trainers and trainees can be physically separated.
  3. 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 :

  1. Trainee can choose his own time and place to learn.
  2. Trainee can learn at his own pace.
  3. Trainee can check his understanding It is highly cost effective.

Disadvantages of E-Learning :

  1. Inflexible as program is pre-produced.
  2. It needs greater self discipline.
  3. It can produce a sense of isolation If turnover is low.
  4. It can prove expensive due to high cost of hardware and software