Effect of E-HRM on job satisfaction: A case study of Indian IT and ITES industry

Abstract

Background: Adoption of electronic human resource management (E-HRM) have radically changed the HR functioning and benefitted organizations in terms of cost reduction, time saving, HR service quality, etc. and positive organizational outcomes. This particular study seeks to examine the level of E-HRM practice and its influence on employee’s job satisfaction from IT/ITES industry. Methodology: For measuring E-HRM practices six digital components, namely, hiring, rewards and recognition, payroll process, employee self-service, performance management, and learning and development were selected. Using stratified random sampling 684 employees working in IT/ITES industry from Bengaluru city were selected and their response to well-structured questionnaire on E-HRM practice was scored. The collected data was statistically analysed using SPSS software. Results: The findings showed use of different E-HRM practice in IT/ITES industry. Results of ANOVA results showed a significant influence of E-HRM practice on job satisfaction. Of all the attributes of E-HRM practice, e-hiring and e-performance management had a larger and significant influence on job satisfaction. The correlation analysis showed a positive and strong relation between different dimensions of E-HRM practice. Conclusion: The study showed the relevance of E-HRM practice in particular the digital hiring and performance management in improving job satisfaction of employees in IT/ITES industry. The study implicates that organization can derive multiple benefits by designing and implementing E-HRM system in different sectors.