Effect of E-HRM on HR Efficiency in Private Commercial Banks of Tanzania

Abstract

E-HRM is the most sought-after topic in literature and practice. Though E-HRM is essential in the current global technology scenario, its full potential is still being anticipated and, therefore, academic involvement in the topic needs to grow. This paper reports the findings of a study that sought to find out the effect of e-HRM on HR Efficiency in Tanzania’s private commercial banks. It used a quantitative approach to gather empirical data using a structured questionnaire and analysed using PLS-SEM of SmartPLS. Using a cross-sectional survey design, the study gathered data from purposively sampled employees in private commercial banks. It found that e-HRM positively influences HR Efficiency. As such, organisations in developing countries such as Tanzania can benefit from e-HRM to achieve their goals. Prior to e-HRM adoption, the HR role and workforce must be prepared to fit with e-HRM goals and the expected outcomes. The study’s positive findings can facilitate HR’s effort to make the most out of eHRM systems by stressing the influence of HR role and IT usage. Originality is that e-HRM outcomes are multiple and crucial for organisations nowadays; however, extant evidence is scarce in the field of e-HRM. Most factors and consequences of e-HRM were identified in case studies and do not yield ‘hard’ evidence. This implies that the field of e-HRM requires much more grounding before it can become a mature research tradition. Overall, the study contributes to extant literature by adding an e-HRM framework for examining HR efficiency with the use of the prominent TAM model.

Keywords: electronic human resource management, human resource efficiency, technology, human resource management, technology acceptance model