CHAPTER-2

REVIEW OF LITERATURE

.
2.1 Introduction
2.2 Human resource management/development/practices related studies
2.2.1 Pre 1991 studies on human resource management / development /
practices
2.2.2 Studies during 1991 2000 period on human resource management /
development / practices
2.2.3 Studies during 2001 2013 period on human resource management /
development / practices
2.3 Electronic human resource management relates studies
2.3.1 Pre 1991 studies on electronic human resource management
2.3.2 Studies during 1991 2000 period on electronic human resource
management
2.3.3 Studies during 2001 2013 period on electronic human resource
management
2.4 Gap in the earlier studies
 CHAPTER-2

REVIEW OF LITERATURE

2.1 Introduction:

The basic objective of this chapter is to get inside into the previous findings so
that it will help to know the gap in earlier studies and to justify the research
problem selected by the researcher for the study purpose. The literature is
reviewed on human resource management (HRM),human resource
development (HRD) and human resource practices(HRP) and on electronic
human resource management (E-HRM)/development/practices. The prominent
areas covered in the present literature of reviewed are studies related to
concept,model,system,functions,organizational culture and climate,training and
development,performance appraisal,recruitment and selection,man power
planning,promotion,welfare and fringe,rewards and recognition and other
issues on HR and E-HRM practices. Indian and international studies are
studied by classifying them into 3 periods, such as (i) Pre 1991 period (ii)
1991-2000 period and (iii) 2001-2013 period. Chronological order is followed
in review of literature separately for HRM and E- HRM related studiesand the
chapter is organized is under:

2.1 Introduction
2.2 Human resource management/development/practices related studies
2.2.1 Pre 1991 studies on human resource
management/development/practices
2.2.2 Studies during 1991 2000 period on human resource
management/development/practices
2.2.3 Studies during 2001 2013 period on human resource
management/development/practices
2.3 Electronic human resource management relates studies
2.3.1 Pre 1991 studies on electronic human resource management
2.3.2 Studies during 1991 2000 period on electronic human resource
management

69
2.3.3 Studies during 2001 2013 period on electronic human resource
management
2.4 Gap in the earlier studies

Thus chapter is based on the conceptual and non conceptual background,

empirical and non empirical literature available at national (India) and
international level having direct and indirect bearing on the objectives of the
present study. Chronological approach is adopted in review of literature for
human resource management/development/practices and E-HRM separately.

2.2 Human resource management/development/practices related studies:

2.2.1 Pre 1991 studies on human resource
management/development/practices:
The key element alongwith profit maximization for industry is that the value,
attitudes, general orientation and quality of the people determine the industrial
development. The shift from manufacturing to service and the increasing pace
of technological change are making human resources the ingredient to the
nations well-being and growth and in a service-oriented industry like banks,
hospitals, railways, pharmasetc, the quality, quantity and utilization of human
resources become all the more important observed by Sar, Garth and Ray
(1972)1.

Dick and Carey (1978)2 designed training model based on ADDIE model,
consisting of following steps.
1. Instructional goals,
2. Instructional analysis,
3. Behaviors and learner characteristics,
4. Performance objectives stage,
5. Criterion-referenced test item
6. Instructional strategy,
7. Instructional materials,
8. Formative evaluation, and
9. Summative evaluation.
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Nadler (1979)3 made a distinction between human resource utilization and
human resource development. He state that human resource utilization covers
traditional functions of personnel administrations, whereas human resource
development includes mainly training, education and development. He further
identifies three main roles for the human resource development managers with
some sub roles.

Rao (1982)4 studied and assessed 45 organizations HRD practices and

observed that:

1. Performance appraisal system is for regulatory purpose mostly and less

for HRD development;
2. Salary increment used as a reward mechanism,
3. Potential appraisal system is not well practiced, and
4. Training is well attended by employees.

Keye (1984)5 studied relationship between performance appraisal and career

development and shown that both performance appraisal and career
development have potential for developing human resources; potential that can
be increased by linked them together to meet the needs of the both individual
employees and the organizations.

Pereira (1985)6 studied Larsen and Tourbos (L & T), human resource
development system. L & T introduced an integrated human resource
development system before 1985. He traced process and history of human
resource development system (HADS) and changes in it. They covers
performance appraisal, training and organizational development. He pointed
out that HRD department is now separated from the personnel department,
critical attributes required for the job have been identified and the organization
is heading towards the establishment of potential appraisal system.

Gupta and Gangotra (1986)7 studies human resource development (HRD)

practices in Jyoti Ltd. And pointed out that first attempt to introduce HRD in
1980 was not encouraging. But effort made in 1982 (2nd) was quite successful.
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In 1983, there was change in the organizational structure of the company. The
HRD department used the opportunity to initiate organizational development
activities in the company. A series of organizational development (OD) were
organized to improve individual inter-personal and team effectiveness.

HRD practices in TVS Iyangar and Sons, Sundram Fasteners Ltd. (SFL) BHEL
were studied by Sundaram (1986)8, Usha Krishna (1986)9, and Jain (1986)10
respectively. Similarly Dsouza had critical look of training in Indian industry
(1986)11 and concluded that the return on investment on training is very poor
because people are sent for training in many industries as fringe benefits and
very little is being done to make use of learning, once the people return from a
training programme. This was also confirmed by Rao and Abraham (1986)12 in
one of their studies on HRD climate of 42 Indian organizations. Japanese
experiment has proved quite successful in developing its human resource and
achieving desired growth. They adopted different methods at different levels
for different people to get their involvement. The members of the organization
feel themselves as a member of team and therefore, cooperate in achieving the
organizational goal and the managers try to develop subordinates for increasing
their effectiveness, pointed out by Narayan (1987)13.

John Keller (1987)14 developed ARCS model for motivational purpose.

Attention, relevance, confidence and satisfaction (ARCS) is must be adopted in
motivational design. Thus training most introduced this model for the benefit of
employee, stated by John Keller.

Abrahm studied banks HRD climate based on 38 items of HRD climate

(1988)15. A questionnaire was developed and administered. He found out
certain gap between belief of the top management and their practice with
regard to human resource development, promotions was time-bound practiced
and seniority principle was used. Bank employees think job rotation as
facilitator for them.

Verughese (1989)16 studied Crompton Greaves Ltd. (CGL). He observed that

task force identified role analysis, performance appraisal and counseling as
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there priority areas were suggested by companys consultant and that was
implemented by company. The study indicates a high degree of commitment
towards HRD and climate diagnostic survey was conducted and used/adopted
periodically.

Sachdeva and Arora (1989)17 studied relationship between improving employee

relations climate and human resource development in Eicher good Earth. They
explored in detail the experiences in developing HRD system in the company.
The feedback intervention was carried out, including an attitude survey to
assess employer satisfaction covering 19 aspects of their jobs and
organizational climate, ranging from job content and compensation to
opportunities for development and union management relations. SWOT
analysis was also carried out to identify areas requiring improvement and then
HRD was implemented. After 15 months later, a significant change was
observed.

A comparative study was undertaken by Murthy and Gregory (1989)18 on

Japanese HRD practices and Sunderam Clayton. He shows that a seniority
based promotion system may work in Japan but in Indian context it is not very
relevant as it can have demotivational effects on the aspirations of its people
and he stresses that we should only emulate the principles of Japanese HRD
practices rather than using their practices. These principles are equal treatment
of employees, emphasis on group consultation and group performance, respect
for dignity of labour and commitment to organizational goals.

Rao (1989)19 studied extensively HRD practices adopted by Steel Authority of

India Ltd., (SAIL), which is the biggest company with assets worth Rs. 6000
Crores and employees over 2,50,000. The areas identified for HRD initiations
were
1. Improvement in work culture,
2. Optimum use of installed capacity,
3. Increase in productivity,
4. Generate profits through control of costs and
5. Customer satisfaction.
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Jindal and Jindal (1989)20 deal with the potentialities of the use of computer in
hospital to ensure optimization of resources. They have critically assessed the
use of computers in maintenance of hospital records, medical research and
analysis. They concluded that computerization is the need of the present, but a
compulsion of the future. On the other hand, Goel (1989)21 discusses the
nature, meaning and ingredients of manpower planning to ensure optimum
performance and satisfaction among the hospital personnel. He has pointed out
that an important operational objective for the future is, therefore, to improve
personnel systems, develop manpower planning and expand the opportunity for
education and training of personnel in the hospitals to achieve the goals of
hospitals, as it is the human capacities which transform the resources into
active agent of production.

Singh (1989)22 examined Indian management culture using Hofstedes model

based upon 176 senior level managers belonging to 56 organizations spread
over the country. He shown that the Indian managers are low on all four
dimensions like power distance, ascertaining avoidance, individualism and
masculinity, accordingly he suggested the human resource development
practice.

2.2.2 Studies during 1991 2000 period on human resource management

/ development / practices:
Rao conducted another survey for knowing performance appraisal of human
resource development function in Indian organization. This study shows that
monitoring the human resource development implementation in public sector
organizations scored slightly better than the private sector while the reverse
seems to be true on human process reserved. According to Ishwar (1991)23 state
that for HRD, 3 things are important namely (1) way to better adjust the
individual to his/her job and the environment, (2) the greatest involvement of
the employee in various aspects of his work, (3) the greatest concern for
enhancing the capabilities of the individual.

74
Some organization may achieve a saturation point in terms of their growth over
a period of time to maintain such a saturation level of growth and to enable the
organization to operate in the changing environment, employees are to be
helped to sharpen their existing competencies and to acquire new ones. In this
context, study made by IGNOU pointed out that people need competencies to
perform the assigned tasks. Higher degree of quality of performance of tasks
requires higher degree of skills. Without continuous development of
competencies in people, organization is not likely to achieve its goals. In fact,
competent and motivated people are essential for the growth, survival and
excellence of the organization (1992)24. Raman (1992)25 study the HRD
experiences of State bank of India, especially training and he state that the
training philosophy of SBIas follows.

Training in SBI is a pro-active, planned and continuous process as an integral

part of organizational development. It seeks to impart knowledge, improve
skills and reorient attitude for individual growth and organizational
effectiveness.

Rao (1992)26 studied HRD practices introduced in Voltas Ltd. And observed
that Volta believe on peoples strength.Companies conduct/adopted
performance appraisal, management development programmes, counseling,
communication policy, potential appraisal, trining etc. through it, Voltas HRD
experience brought out by Rao. He also studied Bharat Earth Movers Ltd.
(BEML) and brought out their experiences on HRD practices (1992)27.

Kapoor (1992)28 assessed HRD practices of Indian Oil Corporation (IOC). He

conducted a survey to measure organizational climate and observed that role
analysis exercises were conducted and 40 workshops were organized to
enhance HRD competencies.

Economic survey (1994)29 state that human development is the ultimate goal of
our development programmes and is also crucial for development of social
sectors, such as education and health, is crucial for sustaining higher rates of
overall economic growth in an increasingly integrated world economy.
75
Significant progress has been made over the years in HRD as reflected by
demographic indicators, literacy, educational levels and health services etc. but
considerable ground remains to be covered in view of demographic pressure,
regional and class disparities in access to social infrastructure and our still low
levels of attainment in social sectors compared to even several developing
countries in Asia. HRM is a highly organizational specific activity (Tyson
1995)30.

Whereas Reddy (1995)31 show that 90 percent lecture method used, on the job
instruction method 76, computer conferencing is least used pedagogical
methods in training programs. Jain (1996)32 examined on the basis of primary
data HRD sub-systems including (i) goal setting, role analysis, career planning,
performance appraisal and executive development, in two organization at
middle management level, (ii) management policy, potential appraisal and
organization development at the top management level, (iii) training at the
lower level, (iv) inter-level relationship in the various HRD sub-systems,
effectiveness variables and personal history. Bharat Heavy Electricals Ltd.
(BHEL) and National Fertilizers Limited (NFL) two companies are studied.
The result shows that there exist better career planning in BHEL than NFL. On
the job training and class-room training were found to be the most widely used
methods for imparting training in two organization. Another expert, Pattanayak
(1997)33 evaluate training in the Indian industries and observed that-

1. About 70 percent of the trainees felt that depth of training material and
training itself was not enough.
2. Almost 55 percent respondent felt that attitude towards their job after
they attend training programme not changed much.
3. Almost 70 percent respondent responded that their supervisor shows the
moderate interest when they return from training.

Kondula (1998)34 conducted survey in Indias most valuable 59 companies and

their case studies to explore the alignment between strategic responses of
organizations and the strategic HRD system. The study finds that the status of
76
strategic HRD system is moderate. There are constrained in the implementation
of performance appraisal, worker involvement and communication.

Lapla and Benstel (1999)35 has assessed the role of training and innovation in
work place performance productivity. They observed that training leads to an
increase in the quality of labour, by equipping employees with greater skills
and knowledge. Training needs as per changes in demographics of employees,
increasing job complexity technology and competition.

Jitendran and Baum (2000)36 studied human resource development and

sustainability in Indian tourism and observed that only on the job training is
practiced by Indian tourism industry.

2.2.3 Studies during 2001 2013 period on human resource management

/ development / practices:

Dhar (2001)37 assessed recruitment and promotion policies, merits and

competence, performance appraisal and motivation, morale and commitment.
He suggested the following.

1) Recruitment and promotion policies to be reviewed time to time.

2) Merits and competence should be given greater emphasis in promotion.
3) Performance appraisal system to be modified and undertaken time to
time.
4) Motivation,morale and commitment and sense of belonging and
involvement of employees at all to level should be enhanced.

Hansson (2002)38 studied two questions, based on 26 companys data. He

examines (1) what determines employee training from an organizational
perspective and (2) to what extent training investments contributes to company
performance. He concluded that the training have positive impact on
organization performance.

Study undertaken by Srinivas (2002)39 was based on primary data and 59

companies and 3 case studies to explore the relationship between strategic
77
responses of organizations and the strategic human resource development
system. The study finds moderate relationship between two. Management,
Unions, frontline officers / supervisors and individual workers seem to be
having certain apprehensions which might have contained the implementation
and progress of strategic human resource development practices specially job
enrichment programmes, performance appraisal, communication, works
involvement and empowerment programmes. He found that the managerial
staff are better informed and are better involved in organizational decision
making in comparison with other categories of employees.

Rao (2003)40 state in his another study that Indian organizations seem to have
played only lip sympathy to human resource development as (i) they do not
follow the structure principles, (ii) very few have feedback and counseling
system (iii) no separate potential appraisal system and (iv) mostly do not have
full time human resource development facilitator.

Singh Anil Kumar (2003)41, in the paper, Philosophy of management and

human resource management in Indian organization has assessed various
HRM practices in Indian organization and examine the relationship between
HRD practices and the philosophy of management. The objectives of the study
were (1) to investigate the various HRD practices like HR planning,
recruitment selection, performance evaluation, training and development,
career management and rewards at managerial level in public and private sector
organization, (2) to examine the nature of differences in the philosophy and
management subscribe by the organization towards employee working, (3) to
examine the nature of relationship between HRD practices philosophy and
management in public and private sector; (4) to examine the impact of HRD
practices and organizational culture on philosophy and management in public
and private sector.

The hypothesis of the study was HRD practices are significantly related
to philosophy of management. Interactive relationship model was employed

78
and impact of HRD practices and organizational culture on philosophy and
management was assessed.

Tejsingh(2003)42 studied the leadership style of managers in the Indian and

foreign bank, taking Punjab National Bank and Standard Chartered Bank as
sample and a comparison is made between two regarding leadership styles. The
key objectives of the study were-

1. To trace out quantitative measurements of leadership style in Indian and

foreign bank,
2. To identify the leadership style of manager in banking sector,
3. To examine whether the Indian banks and foreign bank differ regarding
leadership style.

The study is primary database collected through questionnaire. 318 was sample
size selected from lower, middle and top level management. The secondary
data was collected from memorandum, articles, brochures, annual reports and
books. The study shows that involvement leadership style prevails in Punjab
National Bank than Standard Chartered Bank with respect to lower level
management, at higher level it was reverse of it. This whole exercise show that
there is no significant difference in two types of banks.

HRD general practices in drugs and pharmaceuticals industry was studied by

Patel and Iyer (2004)43. This study is based on primary data collected from 125
respondents of eight pharma companies in Gujarat State of India. Lirket five
scale model was employed by researcher as (1) not at all true, (2) rarely true,
(3) sometimes true, (4) mostly true and (5) almost true. Study shows that
organizations are giving adequate important for development of human
resources in the organization. Companies are helping to employee to acquired
required skills and competencies. HRD practices are practiced in
pharmacompanies, it is true, pointed out by this study.

Many organizations are experimenting with more flexible packages which

include elements of variable pay, linked to job performance, competence, skills
79
development and desired team and leadership behaviors. If an organization
requires high level of flexibility, reward systems may also need to be flexible
(2004)44. Besides recruitment, efforts to retain qualified employees should also
be considered as a part of an overall career management strategy driven by
the business strategy, pointed by Holbeche.

The strategic importance of job analysis and competency assignment is

grounded in their usefulness as systematic procedures that provide a rational
foundation on which to build a coherent approach to managing human
resources. This role of modeling competencies becomes especially obvious
during strategic change periods when jobs in an organization are likely to be
suddenly transformed. In conjunction with an organizations recruitment and
selection efforts, a total compensation system provides pay that is sufficient to
attract and retain key employees and keep them motivated to perform with the
best of their competencies. Unless the total compensation program is perceived
as internally fair and externally competitive, good employees are likely to leave
(2005)45.Attracting and retaining industrial with the skills related to the core
competencies of the organization are key HR activities directly relevant to
organizational capability (2005)46.

To manage innovative workforce effectively, traditional HRM practices, such

as work systems, HR flows, rewards and employee influence, have to be
rewarded to be in line with the innovative strategy of organization. HRM
innovation seeks a model that pays attention to the dynamic character of
various types of innovations not just cost reduction or quality in
organizations, that is in line with an innovation oriented organizational strategy
supported by deliberately chosen (HRM) policies and practices at all relevant
levels (2005)47. The strategic dimension of human resource management
started to receive specific attention from researchers at the end of the 1970s
with the influence of two basic changes in the literature: first, the shift from the
old personnel administration approach to the more modern concept of human
resources and second, the reorientation of generic strategic models to internal

80
aspects of the organization (2003)48.Ghalam and Shrinivas (2005)49 examines
genderwise perception and attitude on HRD climate in Indian banking sector
with special reference to state bank of India (SBI). The survey conducted with
great care in order to get an equal representation of respondent with different
characteristics viz. cadre, gender, service, age. Objective of the study were-

1) To analysis the perception of male and female employees with regards

to HRD climate,

2) To identify the attitudinal differences between male and female

employees on HRD activities in the selected organization;and

3) To suggest measures for the implementation of HRD procedure

faithfully without any gender discrimination in the selected organization.

For this study, to collect the information, sample of 200 employees from
various levels was selected from the identified twenty branches of SBI in
Andhra Pradesh by using random sampling method.

Primary data was collected through questionnaire and interviews and secondary
data through documents, internal circulars and reports.

Analysis was done on five point scale, the rating scale is highly satisfied-5,
satisfied-4, neither satisfied nor dissatisfied-3, dissatisfied-2, and highly
dissatisfied-1,. Analysis revealed that women employees are more satisfying
with the exiting HRD climate than that of male employees in the bank.

Narasimha Rao (2005)50 wants to study on knowledge and perception of the

employees about the different training program and the effectiveness of the
training in their opinion. For this study Rao chosen Visakhapatnam steel plant.

Objective of study were:

a) To enquire into profile of organization and to understand their training

activities.

81
b) To study and understand the knowledge, perception an awareness of
employees on various aspects and training.

For this study group of non executive have been selected as it covers 73% of
total of employees of the plant. Also out of non executive employees nearly
about 89% of employees are skilled worker are there. Hence for data collection
sample of 349 skilled workers are chosen randomly. Primary data was collected
through questionnaire, personal observation and interview with supervisory
staff at the higher cadre. All the respondents reported that they need further
training and training is required for improving their job performance. Rao tried
to find different reason for which respondent attend training program. Main
reason was found that to update their job related knowledge. Almost all the
respondents have expressed their satisfaction with the schedule and location of
training program as well as the teaching methodology followed.

Conclusion of this study is that in Vishakhapatnam steel plant, training needs

of employees are taken care by two departments one is T & D center and
another is the HRD center. There are in company training program and out
station training program. Rao suggested that the employee with experience
more than 15 years can be considered for supervisory training and computer
training.

Kumar (2005)51 identifies the relationship between human resource

development practices and the philosophy management of the Indian business
organization based on x and y theory 95 and 119 respondents from two private
and public organizations were selected. The study found that there was no
significant relationship between the variable of human resource development
practices and the philosophy of management in the public sector organization
whereas in the private sector it is highly for training and reward.

Gupta and Singh (2005)52 in their study on human resource development in

financial sector pointed out that due to changing scenario of the banking system
in the country, there is an urgent need for redefining and remodeling the
strategies associated with human resource development. This is based on two
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sample banks namely Punjab National Bank (PNB) and Standard Chartered
Bank (SCB). Human resource development practices profile of SCB is better
than PNB. In another study Priyadarshani and Venkatapathy
(2005)53highlighted that

(i) The human resource development practiced in the banks has a strong
influence on their performance,

(ii) Private Bankshas placed low emphasis on human resource development.

(iii ) There is positive relationship between human resource development

practice and performance.

(iv) The quality of work life is strong in nationalize banks compared to

private banks.

The study made by Pareek and Rao (2007)54 on Larsen and Toubro in respect
of performance appraisal system shows that manpower planning, selection,
promotion, training, feedback etc. are positive association with efficiency and
effectiveness.

Bains (2007)55studied a comparative human resource development system of

public and private sector organizations and trace that there is need to create a
desirable organizational culture. He concluded that integrated human resource
system developed by the private sector in a better way as compared to the
public sector companies.

Vazirani (2007)56 studied benchmarking of human resource practices in

selected pharmaceuticals companies and finds that all the companies surveyed
had a performance management system, which in turn helps to identify training
needs of employees, promotions enhancing decision making ability, career
planning discipline.

Virmani (2007)57, covers a wider field, management practices in different

organization all over India. Main purpose of this study is to find out what are

83
the current trends, how can they be objectively quantified for a systematic
study what conditions prevail in the organization and what element constitute
the practices. Objective of the study are

- To find out current trends of Indian Management practices

- Different study to quantified three practices objectively.

For this study 56 organizations situated in various parts of the country

are covered and 102 employees are interviewed. Primary data was collected
through questionnaire. The aim of questionnaire is to find out whether policies
and plans exists in different areas, what kind of practices really takes place and
reasons for it and what are the factors affecting motivation and climate in the
organization. Study covered 4 types of organization, the public sector, the
government department, the multinationals and the traditional family owned
company. Analysis shows that almost all managers in all type of organization
said that long term goals do exist in the organization.

About working of these plans, about 5% of these in public sector and

government feel that the plans have worked in multinationals. It is nearly 60%
and in traditional family owned company it is 50%. Where plan doesnt work,
major reason found that these plans are made only for records. In
multinationals, major reason is interference of caste, community and other
consideration. About 77% of public sector, MNC and traditional family owned
company say that they have formal policies or plans relating marketing
strategies however people from government department said they have specific
plans. Every type of organization claims that there is formal employee
appraisal system. Promotion is major incentive in all type of organization.

Virmani studied different HR practices in all these types of organization and

came to conclusion that background and life style make the differences in
management. Indian management is an out crop of the Indian family.

Akhtur, Ding and Ge had studied strategic HRM practices and their impact on
company performance in Chinese enterprises, on the basis of 7 dimensions that
84
measure strategic HRM practices. This model was applied by Bal, Bozkart and
Ertemsir in their study to found out the relationship between strategic HRM
practices and innovation(2008)58.

In another study Srimannarayana (2008)59 show that more favorable human

resource development climate was prevailing in the manufacturing sector than
the service and information technology sector.

Khan (2008)60 finds that most of the employees feel need to re-restructure the
organizations, train and develop them according to its pre-determined
objectives. They feel that their potentialities are not fully utilized for enhancing
performance/productivity of organizations. Conflict between employees and
the management leads to unsatisfactory service.

Human resource management practices in insurance companies was studied by

Kundu and Malhan (2009)61. It is comparative study of Indian and
multinational companies. Performance appraisal, workforce diversity and
contemporary human practices, training and benefits, human research planning
and recruitment, selection and socialization of employees, and competitive
compensation etc. was assessed by researcher based on 218 sample respondents
from four Indian and multinational insurance companies and it was found that
multinational companies were comparatively weaker on performance appraisal,
training and benefits, HR planning and recruitment etc. than Indian companies.

Dixit (2009)62 assessed human resource development practices in urban co-

operative banks in Pune district based on manpower planning, performance
potential appraisal, training, career planning, organizational development,
rewards, employee welfare, quality of working life and human resource
information for 9 co-operative banks at top, middle and lower level. This is
comprehensive and empirical study. Study used comparative approach and
suggested transformational model.

Gowali (2010)63 reviewed 50 studies on human resource development /

management incorporate sector of Indian covering manufacturing and service

85
sector. Her study was based on primary data. Data was collected by preparing
questionnaire I & II for 8 and 11 parameters. Mean, standard Deviation,
coefficient of correlation. Z test were used as statistical tools and technique.
100 organization and 333 respondents was the sample size. She found that
there is not much difference between the human resource development
practices in manufacturing sector and service sector and there is a impact of
employee motivation towards training programme on transfer of learning on
the job.Improving the competence of workforce through training and
development activities is seen as a way of creating a competitive advantage.
From the strategic perspective, training is employed not only to improve an
employees current skills, but also to prepare each employee for future
responsibilities. In the process of learning within an organization, human
capital becomes increasingly firm specific and cannot readily be reproduced
by its competitor (Chen and Hung, 2010)64.Initially, human resource planning
is critical to an organizations strategic plan through systematically matching
the interests, skills and talents of the workforce with long-term goals and
opportunities in the organization, pointed out by Nixon (2011)65.

Bhamare (2011)66, studies human resources practices of womens urban co-

operative banks in Maharashtra. Practices in manpower planning, recruitment,
training performance appraisal, promotion, career planning and welfare were
studied on the basis of primary data collected by way of questionnaire, by using
frequency and percentage and average as a statistical tools and techniques.
Strategic approaches to recruitment are rare but recruitment is a strategic
opportunity indeed. Ideally recruitment should not simply be a question of
filling gaps, instead should be productivity focused on bringing the specific
kind of skills and experiences in the organization especially those which cannot
be built from withinShafique, (2012)67.

The strategic HRM field has emphasized human and social capital as key
resources for firms, yet focused primary on organizational level conjectures
such as the configuration of high-performance work practices and their fit

86
with the organizational strategy (Makela, Sumelius, Hiogland and Ahlvik,
2012)68.

Confederation of Indian Industry (2012)69 and Index advisory private Ltd.

Studied the state of human resources/industrial relations in small and medium
enterprises segment. They assessed basic human resources, recruitment,
training, manpower planning, performance management, compensation, career
planning and industrial relation. They found only 61 percent companies have
presence of human resource department.

Jains (2012)70 paper based on a doctoral dissertation, assess the impact of the
reform program on PSB from 1991 to 2008 on HRM practices. Data was
collected through questionnaire and interview. Secondary data was collected
from database available with RBI in the form of annual report, publication
from IMF and bank of international settlements and working papers by various
banks published from time to time.

Main objective of the study was to assess the impact of the reform program on
HRM practices of public sector banks from 1991 to 2008. Study reveals that
HR practices recognized the peculiarity of existing skill deficiency in
individual banks. This is why T & D, appraisal system and reward mechanism
were not standardized banks need and requirements.

The research made an attempt to find out contribution of HR practices efforts

on employees productivity. Majority of respondents agreed that primary
reasons for improved productivity post liberization were use of IT
infrastructure, competition in market place and outsourcing back office
functions. Evaluation and importance of strategic HRM and role of strategic
HRM on innovativeness in organization, are assessed by Bal, Bozkurt and
Ertemsir (2013)71. They determine to find out the relationship between strategic
HRM practices and innovation in organizations. 48 organizations is the
coverage of the study. They found a positive and strong relationship between
innovation and HRM practices such as training development, participation to
decision making, job analysis, job identification, performance evaluation and
87
career management. Also it was observed by them that organizations that
participated to the research have been using there strategic HRM practices in an
medium level. This is based on primary data, collected through e-mail using
convenience sampling. 48 companies were selected from various sectors such
as health, media, textile, retain and banking.

To effectively enhance employee motivation and productivity, the performance

measurement and feedback proves must be aligned with the organizations
business strategy and organaizational culture. By aligning personal interests
with company objectives, performance-based pay system motivates workers to
realize the strategic objectives of the HR function, observed by Kim and Sung-
Choon, (2013)72. Further about role of HRM through innovation, they observed
that although HR executives involvement in strategic management was not
always associated with firm performance, their involvement had a substantial
effect when the firm pursued an innovation strategy for which skilled
employees were a critical source of core competence.

Suryawanshi (2012)73 studied conceptual framework of human resource

management and hospitals, identify the HRM practices in the hospitals,
function wise, activity wise human resources practices and whether study
object having human resource development system in place and fulfilling
adequately human resource management objectives. Pimpri-Chinchwad area
was selected for study purpose. 30 hospitals were selected randomly from
private, government and semi-government.

Venkat (2013)74 in his study try to find out impact of globalization on HR

practices. In todays environment due to globalization, HR practices have to be
applied with different strategy in order to survive in the globalized world.

The main aim of the study is to study challenges in front of the managers to
adopt different skills and practices for survival and growth of organization in
the global village. This study tells that global HRM is not a simple bundle of
conventional functions like recruitment, promotion, responsibility, ensuring
satisfactory wages and compensation but not calls for astute, psychological
88
gambits and maneuvers, HR strategies should be linked with business goal of
organization.

This study tells that globalization brings significant changes not only in
operating boundaries but also in corporate HR functions and strategies.
Organization should develop competency model to identify critical success
factors that distinguish high or low performance and integrate HR system.
HRM function can no longer be treated as mere support function. In most of
the leading organization worldwide, the HRM function is now being treated as
strategic partner of the organization through strategic HGRM intervention. This
study also suggests that current HRM practices and its implementation in the
globalized corporation need to be restructured in the context of challenges
faced by the organization.

Khanvilkar (2013)75has assessed JJ hospital and ESIS hospital human resources

practices and found out the level in it and compared human resources practices
between two government hospital. The study concluded that (1) high level in
manpower planning, recruitment and training in ESIS and JJ hospital were
practiced as well as in career planning, performance appraisal and promotion.
But average level practices were followed in employee welfare. Overall
moderate level human resource practices are followed in ESIS and JJ hospital.
To overcome he suggested a separate commission be appointed to look into the
HR practices in Government Hospitals.

2.3 Electronic human resource management relates studies :

This section reviewed literature on E-HRM such as e-manpower planning,e-
recruitment and selection, e-training, e-performance appraisal, e-career
planning, e- promotion, e-welfare and fringe and e-rewards and recognition etc.
This is undertaken in three periods, pre 1991 period,1991-2000 period and
2000-2013 period.

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2.3.1 Pre 1991 studies on electronic human resource management :
Irving (1986)76observed that earlier computerized performance monitoring
systems was operated in offices /organization which were actually software
packages able to count the number of work units completed by employees in a
specific time period,record idle time of each terminal,calculate error rates
,capture time spend on different task or even count the number of times an
employee strikes the keys etc.These system was collecting all the information
about all the activities done by the employee inside the company and provide
the feed back to both superiors and subordinates .Furthermore, since E-HRM is
a multi level phenomenon research would profit from studies that address
several levels including the corresponding inter level relationships(Markus and
Robey(1988)77). Davis (1989)78show that some employee factor come from
technology acceptance model. If users of an information system do not
perceive it to be easy to use or useful,then they are not likely to use the system.
The relationship between size of organization and E-HRM was studied by
Kavanagh et.al., (1990)79, which shows small size company faced lower risk as
compare to large scale company.

2.3.2 Studies during 1991 2000 period on electronic human resource

management:
Griffith (1993)80by emphasizing on the importance of the right usage of
computer monitoring which does no abuse workers by creating a difficult
working environment like a sweet shop,proposed some guideline for effective
use of these systems (i) use it to provide feedback not just gathering social
information ,(ii) determine the type of data based on what employee believe
will help them and be willing to adopt the system as they get ideas about how
to use the data,(iii) integration of the collected data increase the value of the
system to employees, and (iv) drive the system on a way to identify areas for
efficient production ,training needs etc because if workers find out its against
them the digital fight would begin. Since level issues create particular problem
when the level of the topics, theory, data collections and / or analysis are
incongruent (Klein et.al., (1994)81), future work would profit from explicitly
90
addressing level issues. The micro and macro level research serves as a
minimal model that can be expanded by some conceptual suggestions and such
conceptual work is necessary (Klein et.al., 1994).Since E-HRM constitute a
rather new and unknown field,case studies yield valuable and deepened in sight
that again might lack external validity .A single study also combines an initial
case study with a final survey pointed out by Kinnie and Authurs(1996)82.

Findings concerning the E-HRM strategy at first hint at a lack of strategy

considerations in general IT applications in e-recruiting and e-learning (Liff,
(1997)83). He pointed out further advanced level strategic or decisions
support oriented applications are lacking. Over all finding concerning human
resource information systems also shows that privacy and fairness perceptions
of employees depend on their ability to authorize the content and targets of the
information disclosed (Eddy, Stone and Stone Romero,(1999)84 ). The idea of
initiating internal employee communities by using portal technology to provide
means for interactions such as chats ,forums and news groups ,as well as
additional content such as health or sports aims at improvement of
communications , knowledge transfer commitment etc observed by
Fandray,(2000)85.

2.3.3 Studies during 2001 2013 period onelectronic human resource

management:
Rao and Das (2000)86 assessed 45 companies HRM practices. 5 key HRD
practices are studied. They are studied 5 key HRD practices as under.

Sr.No. HR Practices / Dimensions studied No. of companies studied

1. Conceptual aspects of HRM 06
2. Manpower policy and planning 11
3. Training and development 08
4. Compensation management 08
5. Industrial relation 12
Total 5 practices Companies = 45

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Above Table show that 5 practices/dimensions were studied by researcher. The
HRM conceptual aspects were studied based on 6 companies such as Jyoti
Laboratories Ltd., Mr. Sridhar, Madras Manufacturing Company, Indian
Automobiles Ltd., Mr. RajatSaxena, and ITDC Privatization. Manpower policy
and planning were studied for Rayagada Electricity company, flexible
manpower planning (lecture by Tandon), Eagle India Ltd., Honda Bicycle
Ltd.,. The Pill of IDPL Ltd., Global Electronics Ltd., and Hindustan Levears
Ltd.,. In all 7 companies were studied for manpower policy and planning
practices purposes.

Recruitment and selection purpose 11 companies were studied. They were

Indian Bureau of employee recruitment services, Konark Cement Ltd., Mr.
Jacob (an Individualist), Hind Synthetics ltd., Atlas Moped Co.Ltd., Mr.
Kishore (an employee), universal manufacturing co., Maharashtra soft drinks
Ltd., Usha Telecom Ltd., Mr. Rajeev Shukla and Recruitment and Promotion
Policy case study. Training and development practices of Jyotsna Food
Products Ld., Bihar automobiles Ltd., Indian Petrochemicals ltd., CIPRO India
Ltd., Mr. BrijendraSingn A case study for career planning, Bajalpur Printing
Press, Hind Motors finance Ltd., Spareparts manufacturing Co. Ltd., and
Vishal fast foods private Ltd. Were studied and assessed as case study.

Eight case studies are undertaken for understanding performance appraisal.

They were public bank Ltd., Mr. Raja Ram, Mr. Alok Mishra, National
Fertilizers Ltd., Mr. M. Sundersh, Pratap Electronic Ltd., Asian Coffee house
and Indian Institute of information Science whereas another eight cases were
study for compensation management practices such as Digital info. System ltd.,
Asansole Bicycles company Ltd., R.Kumar Ltd., RPD enterprises, Modern
detergent Factory, Prominent Cement Ltd., Pendra Road Texile Mills Ltd., and
Panther automobiles Ltd., finally researcher studied industrial relations based
on twelve case studies. They were Textile Manufacturing Corporation, Mr.
R.K. Singh, the Mahavir Bank ld., Bhopal Steel Tubes Ltd., Mahindra and
Mahindra Ltd., Vijay electrical Ltd., Ashoka Transport Corporation Ltd. Mr.

92
Yogesh Sharma, Rajubhai Chemicals Ltd. Rourkela Steel Tubes ltd., Mr. K.
Ramanunam, and welfare amenities in SAIL.

Thus case study is very comprehensive and covered all types of HRD
practices,hence human resource is the greatest asset of the enterprises (Ghosh,
2002)87 , and E-HRM has the potential to change all traditional human resource
management functions (Noe, 2003)88.

Moreover, Globetronics Multimedia Technology Sdn. Bhd. (2003)89 had

proclaimed that install System Manager, HR Manager, Time Manager, Payroll
Manager, and Report Manager will lead to success E-HRM. Large
organizations use e-HR because it is qualified to collect, store, process and
manipulate the large amount of data inputs, reduce cost of maintaining human
resource data and provide accurate information about human resources anytime
and anywhere. Furthermore, Prasad (2003) had defined HRIS is a
computerized method of providing information about human resources, their
functioning, external factors relevant to managing human resources.
Moreover, Kettley and Reiley(2003)90 said that a computerized human
resource information system is contented of a fully merged organization wide
network of HR-related data, information, services, databases, tools and
transactions. Technology enabled E_HR to introduce corporate intranets and
web-enabled HRIS.

Evidence for improvements to HR services delivery through increased

accuracy of data entry or by simplifying processes has been provided by
Gardner, Lepad and Bartol (2003)91.

The Swift development of e-HRM has resulted from the combination of the
need to work more efficiently and the possibilities of current information and
communication technology, observed by Stanton and coovart (2004)92.

Moreover, Foster. Hawing and Stein (2004)93 had depicted that the usage of
the internet to the Human Resource function E-HR had consolidated two
elements of using of electronic media and operating participation of employees

93
and employees in the process to help organization decrease its administration
costs, improve employee communication and satisfaction and provide real time
access to information. One of the benefits of E-HRM systems is that, when
designing systems, attempts to modify and describe management processes are
likely to have been made (Tyson and Selbie (2004)94.

E-HRM is often, characterized as being a technological solution its effective

implementation can be a powerful enables for broader business change
(2005)95. Further, Stone. D.L. (2005)96 is suggested that technological
innovation is played a leading part in E-HRM such as self-service systems,
interchangeable devices, cognitive software, non-technology and the
convergence of the internet, digital TV and the wireless technology
communication into a vibrant net work like YouTube, Face book, LinkedIn and
so on.

Stefan(2007)97 reviewed more than 57 e-HRM studies in a systematic and

scientific manner .The review studies are classified into (1) Theoretical
perspectives, (2) Methodological approaches (3) Levels of analysis and (4)
Topics and findings. Further studies on topics and findings reviewed by
researcher into (1)Context, (2)Actors, (3)Strategy, (4)Activities,
(5)Technology, (5)Consequences. Thus 2.1 gives classification wise reviewed
studies in the chorological order.
Table 2.1
E- HRM reviewed studies by Stefan (2003)
E-HRM review Author / Research scheme and years
Aspects
1. Theoretical Dineen, Ash and Noe (2002), Coppola and Myre (2002),
perspectives Harris, Van Hoye and Lievens (2003), Cober, Brown Levy
and Ober (2003), Williamson, lepack and king, (2003),
Gardner, lepak and Bartol (2003), Nissen and Gates (2004),
Elgin and Clapham (2004), Huanng, Jin et.al. (2004),
Dineen, Noe and Wang (2004), Huang, Yang, Jin and Chiu
(2004), Ruta (2005).

94
 Micro-level theories of psychological and behavior
provenance are adopted and hence current empirical
research in e-HRM is mainly non-theoritical Stefan, (2007).
2. Methodological Kinnie and Arthure (1998), Kuha and Ikuterud (2000),
approaches West and Berman (2001), Coppola and Myre (2002),
Jattuso and Sinar (2003), Wiechmann and Ryan (2003),
chapman and Webster (2003), Harris, et. al. (2003),
Anderjs on (2003), Welle-strand and Thune, (2003),
Braddy Thompson, Wuensch and Grossnickle (2003),
Konradt and Joder, 2003), Turetken and Demirors (2004),
Dineen et. al.(2004), Huang, Jin, et.al. (2004), Vaughan and
Macvicor (2004).
3. Levels of analysis Klein, Dansereau and Hall (1994), Coppola and Myre
(2002), Harris et.al.(2003), yang et.al. (2004), Buckley,
Minette, Joy and Michaelis (2004), Hawking, Stein, and
Foster (2004) etc.
4. Topic and finding Ruel et.al. (2004),
(A) Contest Hannon, Jelf and Brandes (1996), Elliott and
Tevavichulada (1999), Ball (2001), Teo, Soon and Fedric
(2001), Harris et.al.(2003), Hausdorf and Duncan (2004),
Ruel, et.al. (2004), Ruta (2005).
(B) Actors Memanus and Ferguson (2003), Buckley et.al. (2004),
(C) Strategy Liff (1997), Tansley and Watson (2000), cober, Brown,
Blumental, doverspike and Lery (2000), West and Berman
(2001), Tansley, Hewell and Williams (2001), Beamish,
Armistead, Watkinson and Armfield (2002), Welle-strand
and Thune (2003), Chapman and Webster(2003)Ruel et.al.
(2004), Ruta (2005).
(D) Activities Kinnie and Arthurs (1996) Lin (1997), Baker Detinhe and
Smart (1998), Elliott and Tevavichulada (1999), Kuhn and
Skuterud (2000), Ball (2001), Teo et.al. (2001), Pearce and
Tuten (2001), West and Brman (2001), Chapman and
Webster (2003), Hausdonf and Duncan (2004).

95
(E) Technology Hannon et.al.(1996), Baker et.al (1998), Elliot and
Tevavichulada (1999) Cober et.al. (2000), Kuong, Liu and
Williams (2002), Smyth, Bradley and Rafter (2002),
Konradt et.al. (2003), Garder et.al. (2003), Hawkinbg et.al.
(2004), Li, Roesler and meszlery (2004), Turekar and
Demirors (2004), Cober et.al. (2004).
(F) Individual Eddy, Stone and Stone-Romero (1999) Ro Zelle and Landis
consequences (2002), Zusman and Zandis (2002), Dineen et.al. (2002),
Van Rooy, Alonso and Fairchild (2003), Braddy et.al.
(2003), Cober et.al (2003), SinarRenolds and Paquet
(2003), williamson et.al. (2003), Weiechmann and Ryan
(2003), Salgado and Moscoso (2003), Harris et.al. (2003),
Payton (2003), Howking et.al. (2004), Elgin and Clapham
(2004), Dinnen et.al. (2004), Huang, Jin et.al. (2004), Ruta
(2005).
(G) Operational Baker et.al. (1998), Hogler, Henle and Bemus (1998),
consequences Pearce and Tuten (2001), Capelli (2001), Beamish et.al.
(2002), Klass (2002), Coppola and Myre (2002), Gardner
et.al. (2003), Chapman and Webster (2003), Memanus and
Ferguson (2003), Salgodo and Mocoso (2003), Howking
et.al. (2004), Ruel et.al. (2004), Backley et.al. (2004),
Nissen and Gates (2004), Macpherson et.al. (2004),
Vcughan and Macvican (2004), Ruta (2005).
(H) Rational
Hannon et.al. (1996), Gardner et.al. (2003), Ruel et.al.
consequences
(2004), Tixiar (2004).
(I) Transformational
Hannon et.al. (1996), Liff (1997) Barney and Wright
consequences
(1998), Tansley et.al. (2001), Teo et.al. (2001), Gardner
et.al. (2003) Rueal et.al. (2004), Ruta (2005).

It is interesting to note that Indian studies on e-HRM are not addressed by

researcher.

96
Moreover, Ulrish. D., Younger, J and Brockbank, W. (2008)98had argued that
the beginning of the 21st century, the goal of HR is creating value for
stockholders such as employees have right set of competencies: confidence in
the organizations ability to deliver on its social responsibilities additionally; its
functions are measuring its impact on productivity, data mining and making
decisions about talent. During this period, HR is moving to talent management
and recruiting, maintaining talented people personal data and information on a
personal network through wireless. According to Florkowski, G. Olivas-,
'Lujan, M.R. (2006) most companies used one of the following E-HRM
technologies: HR functional applications, integrated HR suite applications,
interactive voice responses (IVR). HR intranet applications, employee self-
service, (ESS) and Manager Self-Service (MSS) portals, HR extranet
applications or HR portals.

BondaroakRuel and Vander Hijden (2009)99found that E-HRM use was

positively related to perceptions of general HRM effectiveness in line managers
and employees. Panye et.al. (2009)100found that reactions to an online
performance management system were more than those to a paper version of
the same system. Marler (2009)101argued that HR department with an
administrative orientation were more likely to have efficiency goals for E-
HRM whereas those that already function as a strategic partner to senior
management were more likely to have strategic goals. Perry and Tyson
(2011)102studied a case study on E-HRM qualitative aspects based on
interviews with Senior HR practitioners and HR users of E-HRM, as well as
managers and employees. 70 interviews and 5 focus groups were undertaken by
researcher. He traced out goals and achievement of E-HRM goals as well as
factors affecting the realization of E-HRM goals.

Khatoon (2012)103, based on Technology acceptance model (TAM) has studied

the operational, rational and transformational outcomes of e-HRM that will
have an effect on the attitude towards e-HRM adoption. 150 was sample size.
The target population for the study was the HR professionals of private

97
hospitals and they included the HR executives, HR coordinators, managers and
HR heads. On the basis of structured questionnaire data was collected, 6
variables were used to measure the constructs i.e. operational outcome rational
outcome, transformational outcome, perceived ease of use perceived usefulness
and external variables. It was concluded by researcher that the cost reduction,
reducing the administrative burden, reducing paperwork over the key factors
that influence the adoption of e-HRM in Indian healthcare sector. E-HRM
empowers the HR professionals to make their own decisions effectively and
improves the quality of service.

The study of Sitlani and Bhatia (2012)104 aims at analyzing the impact of
working capital decisions on the profitability of the Ranbaxy Laboratory Ltd., a
pharmaceutical firm. The impact of working capital management practices of
pharmaceutical firms, i.e. Ranbaxy Laboratory Ltd. on its profitability. Ratio
approach is adopted to know the impact. The period of study was 8 years from
2002 to 2009. Study is based on secondary data, which was collected from
annual reports. The study concludes that inventory turnover ratio was the most
important predictor for the respondent company, Ranbaxy Ltd.,

Bodhankar (2012)105 assessed bullwhip effect on marketing channels of

pharmaceuticals. It is empirical study based on primary data, collected through
questionnaire from Nagpur. The sample and sample size was 317 retailers and
32 wholesalers who involve in the distribution of the pharmaceuticals items.
The samples were collected on random basis. The period of study was 2001-
2011 (i.e. 10 years), Z and F test were used for testing formulated hypothesis.
In all 9 hypotheses were set by researcher and tested. Least square regression
coefficient method was also used for the testing the research hypotheses and
analyzing the casual relationship between the dependent and independent
variables. Indian Pharmaceutical industry, its market environments, policies of
2006-2011, and the bullwhip effect was studied and examined by the
researcher. He found out that the average variation of the demand for the Indian
Pharmaceutical industry varies between 24 percent to +35 percent, averaging
to be equal to 5.5 percent every year ( average of last five years) and he
suggested management should immediately control the growth suppressors.
98
Pant, Chattergee and Jaroliya offer a conceptual framework of e-HRM system
implementation (2012)106 in the respect of (a) the relationship between e-HRM
systems implementations in organization and their benefits and (b) identify the
factors that moderate this relationship. They proposed that the higher the level
of e-HRM system implementation in organization, the better will be the
performance of its HRM and higher will be the strategic gains.

On the other side, E-HRM can be implemented by organizational democracy

where the organization is applying the democracy to design the method of
process, support achieving its goals and impact community in positive as
accorded Sachidanand R. Kulkarni (2012)107. Also he concluded that in
organizational democracy, most of employers and employees participate in
decision making, equally authorization in respect, opinion expressing, leader in
accomplishing objectives, and team up yields better results.

E-performance appraisal was studied by Danialari (2013)108 focusing on

advantages, disadvantage, feedback and implementation tips. He concluded
that e-HRM be used for providing feedback and not just gathering social
information and determine the type of data based on what employees believe.

E-HRM resource management is studied by Hani and Eman (2013)109 in

respect of (1) advantages and disadvantages, (2) aligning the e-HRM system
with the business requirements, (3) factors for e-HRM successful, (4) frame
organization with e-HRM, (5) e-training, etc. size, industry and culture are the
3 factors effect on e-HRM practices use.

2.4 Gap in the earlier studies :

Above review of literature shows that there are many studies on HRM and E-
HRM practices in India and as well as in abroad. But most of the studies are
non-pharmaceutical companies and specially studies are on corporate sector.
There is not single study on pharmaceutical companies as far as Navi-mumbai
is concerned. If it is even though it is not for HR and E-HRM practices
together. Hence researcher has taken up this study for research purpose to fill
up some gap in this area to some extent.

99
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