Impact Of Technology In Human Resource Management A Case Study Of Apple Inc

Impact of Information Technology on HRM Functions 1

IMPACT OF TECHNOLOGY IN HUMAN RESOURCE MANAGEMENT: A CASE

STUDY OF APPLE INC.

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Impact of Information Technology on HRM Functions 2

Abstract

This study evaluates the extent to which the use of information technology in HRM

impacts organizations. Apple Inc. is used as a case study, attributed to its integration of IT in

all its HR functions. The study seeks to find out the type of IT tools sued in HRM, their uses,

and impact on the overall performance organization. This research is divided into five parts.

The first part is the introduction, which gives an overview of the concept under study. The

literature review part analyses previous research on IT in HR and provides a set of theories

that have been conceptualized over the years to explain the adoption of technology by

organization. The research methodology chapter provides an overview of the data collection

and analysis methods and tools sued to carry out the research. The results from the research

are analysed and finally, a discussion of findings is provided.

Key Words: HRM, Information Technology

Impact of Information Technology on HRM Functions 3

List of Contents

Title page

Abstract

1. Introduction…………………………………………………………………..….5

1.1. Background of Apple Inc.………………………………………………........5

1.2.Current business status……………………………………………………..…7

1.3.Outputs of the project………………………………………………………....7

1.4.Objectives of the study…………………………………………………..……8

2. Literature review………………............................................................................9

2.1.Introduction………………………………………………………………..….9

2.2.Human resources…………………………………………………………...….9

2.2.1. Human resource management………………………………………...10

2.2.2. Functions of HRM……………………………………………………10

2.2.3. Benefits of HRM……………………………………………………..13

2.3.Human resource planning………………………………………………….…14

2.4.Information technology……………………………………………………....15

2.5.Strategic human resource management………………………………………17

2.6.Theoretical framework……………………………………………………….18

2.6.1. General systems theory………………………………………………18

2.6.2. TOE model…………………………………………………………...19

2.6.3. TAM model…………………………………………………………..20

3. Research methodology…………………………………………………………..22

3.1.Introduction…………………………………………………………………..22

3.1.1. Use of IT in HR………………………………………………………22

3.1.2. Type of IT tools used…………………………………………………24

Impact of Information Technology on HRM Functions 4

3.1.3. Impact of IT on performance……………………………………..…25

3.2.Research design…………………………………………………………..…26

3.3.The case study approach………………………………………………….....26

3.4.Sources of data…………..…………………………………………………..27

3.5.Data collection and analysis………………………………………………….27

3.5.1. Questionnaires……………………………………………………….27

3.5.2. Interviews……………………………………………………………28

3.5.3. Challenges encountered……………………………………………..29

3.6.Validity……………………………………………………………….……..29

3.7.Reliability…………………………………………………………….….…..30

4. Results…………………………………………………………………………..31

4.1. Introduction……………………………………………………………..….31

4.2.Analysis of questionnaires…………………………………………….….…31

4.3.Analysis of interviews………………………………………………….…...33

5. Discussion………………………………………………………………………35

5.1.Use of IT in HR…………………………………………………………….35

5.2.Impact of IT on HR functions…………………………………………...….37

5.3.Future trends of IT in HR………………………………………………...…38

5.4.Limitations of IT in HRM……………………………………………….…39

Conclusions.....................................................................................................................41

References……………………………………………………………………………...42

Impact of Information Technology on HRM Functions 5

1. Introduction

Previous research on the implementation of information technology in organizations

has focused on a variety of issues but despite this, the concept of IT in HRM has attracted

limited attention from researchers and scholars worldwide. In spite of the many benefits of

implementing IT that have emerged in the HRM departments, many organizations are still

lagging behind. Hence, this study will analyse the emerging use of IT in HRM and the

benefits associated with its usage. Over the past twenty years, the use of technology in

Human resource management functions has been on the rise (Cosby, 2016). One of the most

popular forms of technology used in many HR operations is the Information Systems (IT)

technology. Information technology broadly refers to the application of computer systems in

storage, retrieval, manipulation and transmission of important information and data of an

organization. It uses information systems to store data, and is advancement of the traditional

data storage techniques. In Human Resources, IT has become a significant part of all

operations, due to the ease of use and the ability to store large amounts of data. The purpose

of this research is to investigate the extent to which information technology is being used by

all levels of organizations to carry out significant HR functions and the benefits of adopting

IT in HR operations. The study will use the case study of Apple Inc., a large successful

organization that has benefited from adopting IT to carry out significant HR functions

(Chanda, 2014).

1.1 Background of Apple Inc.

Apple Inc. is one of the most valuable companies in the world, specializing in mobile

communication and media services, smartphones, digital music players, laptops and a variety

of accessories to accompany the gadgets. It is famous for its iPhone production, the largest

smartphone brands in the world. It sells and delivers its services and products through digital

applications such as App Store, iTunes Store, TV App Store, among others. Its products are

Impact of Information Technology on HRM Functions 6

sold throughout the world especially through its numerous online stores and retail stores

located in many countries (Market Wall Street Journal, 2014). The company further sells a

variety of third party apple software and hardware accessible online. The origins of Apple

date back to 1977 when it was established and headquartered in California. Since then, it has

undergone numerous changes in terms of its products and marketing techniques. With the

rapid evolution of technology over the years, the company’s products strive to be up to date

with current customer needs and expectations. Currently, its latest iPhone 8 is the most

famous smartphone in the world, having a range of unique applications that meet customer

expectations.

One of the most prevalent business strategies used by Apple is enhancing maximum

customer satisfaction thorough innovation. The company uses the latest technologies to

produce innovative product designs unique in the industry, and with best features. It

leverages its unique abilities, technological innovations and skilled employees to come up

with its own software, operating systems and application services that facilitate the

development of unique designs that are customer focused (United States Security Exchange

Commission, 2016). By use of internet services, Apple delivers digital content to its

customers, who customers can access all products online. In addition, through its various

social media platforms, it engages with its customers to know their expectations and address

any issues they may have with its products and service delivery. The customers are allowed

to download digital content for small fees. Moreover, Apple uses its digital and technical

know-how to serve the community through the development of third party digital content,

software and hardware. Its retail strategy includes expansion into as many online stores as

possible, in virtually all parts of the world. The digital networks are designed in such a way

that they can reach as many customers as possible in the least time.

Impact of Information Technology on HRM Functions 7

For this study, Apple Inc. was selected because of its large size and its effective HR

strategies. As of 2016, the company had more than 110000 full time employees in its entire

stores worldwide. Such a large number of people require highly flexible and integrated HR,

techniques. The employees are diverse, with unique capabilities that contribute to innovation

and design of new products. The HR department is one of the largest, and through use of IT,

it effectively manages the large number of workforce. The company represents organizations

that have benefited from integrating IT in their HR functions.

1.2 Current Business Status

For the past thirty years, innovations in technology have been rapidly evolving and

today, more than ever, almost all industries attribute a large portion of their success to

technology. It should come as no surprise that the mobile phone industry has fast gained

importance in the global business, becoming one of the most valuable in the world. The

current business and market environment has changed significantly as consumers have

integrated more advancements of technology in their buying behaviour (Rendulic, 2011).

With the advent of social media, online shopping, e-commerce and other technical

improvements, the mobile phone industry has gained significance. This is attributed to the

fact that all these applications are now being conducted over the phone, with only the click of

a button. Competition in the industry is therefore currently stiff, as organizations strive to

come up with the best innovative smart phones and related technologies. Some of the most

competitive companies in the industry include Apple Inc., Samsung, and Huawei.

1.3 Outputs of the Project

The project aims to add to existing literature on the integration of IT in HR functions.

It will also give insights to all managers everywhere on the positive impacts of using

information technology in HR.

1.4 Objectives of the Study

Impact of Information Technology on HRM Functions 8

i. The study seeks to find out the impact of using IT in HR functions. It will evaluate

whether companies like Apple have benefited from using IT to carry out important

HR functions. It also evaluates the extent to which organizations can gain from IT,

and the possible challenges of using IT to replace most of HR functions.

ii. To find out the types of IT tools used in HRM by the different staff. The study will

analyse each type of tool use, its functions, and benefits on the HR department.

iii. Finally, the study seeks to evaluate the use of IT in HRM. It assesses the different

areas in HR that require IT, and how it is applied in Apple Inc.

Impact of Information Technology on HRM Functions 9

2. Literature Review

2.1 Introduction

This chapter examines previous studies on information technology and its application

in human resource management. For the past fifty years, the growing significance of HRM in

organizations has rapidly increased and today, it has become the most crucial aspect of

company operations. Human resources have become the most significant resources, and this

has facilitated the need for effective HR techniques. To improve the efficiency of HR

functions, many organizations have adopted information technology to carry out major

functions related to the management of employees (Akman & Mishra, 2010). IT in HR has

become a source of competitive advantage for competing organizations and every day,

companies are looking for new innovations and improvements in their existing technologies.

The chapter presents different definitions of important terms in HRM, and evaluates

previous research on important HR concepts. It further evaluates the different theories that

have been conceptualized to study the concept of IT usage in HRM. The study also provide

the various benefits and implications of IT while at the same time studying the challenges

associated with integration of the technologies in HR, and their effect on the overall

performance of the organization.

2.2 Human Resources

Human resources refer to the people working in a particular organization. They

incorporate all types of people, from the board of directors, departmental heads, and

operational employees. Today, human resources have become the most significant assets of

any organization, as they directly contribute to the attainment of the set goals and objectives

(Bansal et al, 2014). In the 1960s, labour relations were just beginning to gain significance in

the business environment, and it was during this time, the term human resource was coined.

Impact of Information Technology on HRM Functions 10

Today, the scope of human resource management has shifted significantly, and the value of

employees has become more than just the traditional purpose of completing tasks and

responsibilities.

2.2.1 Human Resource Management

Many definitions of human resource management have been formulated over the past

few decades, and one by Akman and Mishra (2010), stands out. In their book, the authors

have defined human resource management as simply the management of people. Majority of

organizational functions revolve around human resources, and hence, HRM is concerned with

ensuring that the employees are effectively driving the business towards its goals and

objectives. Consequently, the challenges facing the organizations mostly stem from human

errors and are caused by human factors. Through HRM, such problems are dealt with, by

ensuring that the workers are in a position to complete their assigned tasks. Every

organizational function involves at least one person. It is through HRM that skills are

developed, employees are motivated, and their commitment to organizational performance is

met. Due to the significant of human resources, every organization needs to have a HRM

department where people are assigned jobs that match their skills for the overall benefit.

Nasurdin and Tan (2011), define HRM as a management function that enables the

company managers to recruit, select, and develop employees for the overall benefit of the

organization. It entails a detailed application of all functions of management, principles

which are applied in the business, and developing of the workforce. It also entails integration

of all decisions that are concerned with the welfare of employees. These decisions must be

aligned with other functions of human resource management. The decisions that are made

relating the welfare of employees influence the overall performance of organizations. In the

definition, the authors also state that HRM is not only confined to business related

Impact of Information Technology on HRM Functions 11

organizations, but is a broad concept that covers all kinds of institutions (Nasurdin and Tan,

2011). HRM applies in all situations, as long as there is a management aspect of people.

2.2.2 Functions of HRM

Performance Management: A significant HR function, performance management

helps to measure the potential and capabilities of individuals in the organization and improve

the long term organizational performance. It helps to improve effectiveness of employees by

measuring their performance against their tasks and responsibilities (Therith, 2009). PM is

important in ensuring that people stay focused and committed on their jobs. It helps the HR

managers to communicate their expectations with all the employees and sets standards for

improvement. PM is mostly achieved through recognition and appreciation of well

performing individuals through rewards. This motivates others to work as hard. It also

identifies all cases of underperforming individuals, and sets up a framework for making them

execute plans as per the expectations.

Recruitment: Employing new staff in an organization is a long and complex process

that requires careful planning and description of the job position. It is the duty of the HR

department to enrol new employees into the organization and assign them various tasks and

responsibilities that are aligned with the company’s overall objectives. The managers must

use procedures that can be easily understood by all the applicants. These should also be open

to the public and be free and fair. When selecting the candidates, fairness and equality are the

main requirements. The applicants that meet the specifications should be given an equal

opportunity to present their case to the management. Also the candidates are chosen for their

capabilities and merits, and not because they have personal relationships with the HR staff or

for other reasons like bribery and corruption. The first step in recruitment is advertising of

the job position in newspapers or through online platforms. Then, there is screening and

selection of applicants that match the skills for the advertised job position. Once the

Impact of Information Technology on HRM Functions 12

candidates are selected, they are trained and are orientation to into the firm. Afterwards, they

are assigned roles and responsibilities and given their work stations. In some organizations,

there is a probation period, where the performance of the new hires is analysed to assess

whether or not they will become full employees of the company (Mathis & Jackson, 2010).

Staff Relations: HRM deals with all the issues regarding all staff of the organization.

From the top level management to the lower level employees, it is the responsibility of the

HR staff to ensure that every individual has what they need to successfully carry out their

duties. It deals with issues like resolving conflicts, dealing with employees who arrive late,

giving sick leaves, and assigning roles and responsibilities. When employees have an issue,

they directly sort it out with the HR staff. The department is also responsible for motivation

of the workforce (Crisp, 2016). Well performing employees are recognized and their efforts

rewarded to encourage them to keep working hard. Similarly, those individuals who are not

performing as per expectations are dealt with in an appropriate manner.

Manpower Planning: Manpower planning entails projecting both short and long term

staff requirements that will enable an organization to reach its strategic objectives (Bansal et

al, 2015). Also, it helps the HR managers to plan for unforeseen changes into the near future,

and ensure that there are employees with appropriate skills to meet any changes. It accounts

for the number of employees required to complete a particular job, availability of people with

the needed skills, human resource surpluses or deficiencies, and potential challenges in

retention. It also entails succession and turnover planning.

Training and Development: HRM is responsible for training and incorporating new

employees into the organization. After the selection process, the new hires must be taught

how to meet the expectations of the organization through training, which is usually between

one to two weeks. After they are properly trained, they are assigned tasks and responsibilities.

During the first few months, their performance is carefully monitored to evaluate whether

Impact of Information Technology on HRM Functions 13

they need new training. For effective and successful organizations, training is a continuous

process, due to the many changes in the current business environment. It also facilitates the

training of existing staff to better their skills and help them develop professionally. It takes

into account the skills of all employees of the organization, their capability and weaknesses,

and applies this knowledge to help them develop accordingly.

2.2.3 Benefits of HRM

One of the most significant benefits of HRM is that it enables personal development

of employees. The workers can grow both personally and professionally, and take on more

challenging tasks (Itika, 2011). It enables them achieve both individual and business goals.

The personal objectives of the workers help to achieve the organizational objective in the

long run. The more the workers work hard towards professsional development, the more they

preform and remain committed to the organization. This helps in retaining the best employees

and facilitation of quality organizational performance. It builds better working relationships

among all the members in the organization. It further promotes workforce diversity, where

people are treated equally regardless of their background, age, gender or ethnicity.

Another significant benefit of having a HR department in organizations is that it

facilitates effective and strategic leadership. Leadership plays a crucial role in the success of

businesses, and through HRM, the leaders act with care and treat their subordinates in an

appropriate manner. HRM is concerned with the management of people, and hence, it ensures

that the organizational leaders treat the employees professionally. It helps build strong

relationships between the management and the workforce, facilitating an open

communication system. In addition, it ensures that the leaders use the right style of

leadership. For majority of organizations that have efficient HR department, the leaders use a

democratic style of leadership that involve the participation of everyone affiliated with a

Impact of Information Technology on HRM Functions 14

company’s operations in the decision making process (Johnson et al, 2015). They treat the

employees equally and are concerned about their needs and wellbeing.

HRM strengthens the people in an organization by showing them appreciation for

their efforts and motivating them to keep working hard. It provides training and development

programs aimed at making the employees grow both personally and professionally. It

provides effective facilities, and a good working environment that is favourable for skills

development and improved performance. Doing so helps to maintain a high morale among

employees. A motivated workforce is a performing workforce and in the long run, results will

be achieved fast and effectively.

2.3 Human Resource Planning

Reiley (1996) defines human resource planning as the process of estimating an

organization’s labour demands and matching them against its goals and objectives. Generally,

it refers to the management of human resources in the organization by assigning them the

tasks and responsibilities that match their skills. One consideration of HRP is the future

labour demands. The planers evaluate all the available options relating to the supply of labour

and estimate the number of people that will be required to fulfil certain organizational

objectives (Itika, 2011). Human resource planning is specifically significant in organizations

that have high labour turnover rates.

HRP helps organizations to make the best use of resources by making them more

optimal and flexible. This is attributed to the fact that in the planning, the HR managers

estimate the number of people needed for specific tasks, and the resources that will be

required. Doing so helps them to better utilize the available resources and minimize wastage.

In addition, HRP helps managers to detect potential problems that are likely to face the

organization. When planning for human resources, the planners must take into account past,

current and future business needs. They plan for every sector of the company and account for

Impact of Information Technology on HRM Functions 15

all the resources that will be required. Therefore, the planners can detect any problems with

time, costs and resources and make contingencies on how to deal with the challenges. It helps

them put a risk management program in place theta slows the organization deal with any

unforeseen risks and threats.

2.4 Information Technology

Rendulic (2011) defines Information Technology (IT) as the use of computers to

collect, process, store, and transfer information from one medium to another. Due to the fact

that majority of computers are connected to one or more networks, the name IT has been

broadly redefined to Information and Communications Technology (ICT). Through

computers, one or more input devices is used to transfer any form of data, which is in turn

transited to the various input devices as per demand. Computers are generally divided into

hardware and software devices. Hardware components are physical devices used to transmit

and store information, while software refers to a set of commands and instructions that the

computer interprets and then performs the necessary actions (Parry, 2010). Today, almost all

employees in a given business have access to a computer connected to the internet.

Information freely flows among the individuals of an organization and this has made

operations more manageable and effective.

In the past few years, the scope of HRM has been greatly influenced by information

technology. It has improved the efficiency of administration and the extent to which the

managers respond to the needs of employees. Today, more than ever, it has become

increasingly easy to monitor the activities of employees throughout the organization with

only the click of a button. In the past, the human resources staff had to travel from on

department to the next to monitor employee activities. This was a huge challenge especially

for large organizations that employ thousands of employees.

Impact of Information Technology on HRM Functions 16

IT facilitates the creation of an IT-centred culture in organizations. Many business

operations are rapidly becoming IT-based. Some of these include emails, e-learning, e-

commerce, online banking, and online shopping, among many others. Emails are perhaps the

most used ICT technologies in a firm. They are the most official from of communication

between the management and the employees or with people outside the firm. To

communicate official business, the management may send out an email to each employee in

the organization, which is received immediately after being sent. E-commerce transactions

are also becoming increasingly popular in many organizations today (Cosby, 2016). People

no longer have to travel for long distances to purchase products from the company, as they

can order online. Other ICT transactions such as mobile banking have improved the

efficiency of operations and made work easier and more flexible. Consequently, the advent of

social media has facilitated the effectiveness of communications (Rendulic, 2011). With

increased social media platforms, people have become more connected globally. Every

organization has its own social media pages used for internal communication and with all its

customers. Through platforms such as Facebook, twitter and instagram, a business can

advertise its products online for the entire world to see. IT has facilitated a more connected

world, whereby transactions are conducted online regardless of the country one is in.

IT has enabled organizations address the global connection challenge. Today, the

survival of organizations is dependent on cooperation with other companies all over the

world. It has also become a main source of competitive advantage, as consumers are

purchasing from companies that operate globally. Through IT, companies can recruit

employees from different countries, facilitated by video conferencing and other IT tools.

They can also monitor the operations of other businesses all round the world. For companies

to compete on a global level, they must adapt to the evolving ICT tools. New technologies

result in major changes in organizations, and employees must be trained on a regular basis on

Impact of Information Technology on HRM Functions 17

how to integrate the new information technological tools. Through computers, companies can

create innovative and uniques products that satisfy the current consumer demands (Therith,

2009).

2.5 Strategic Human Resource Management

Itika (2011) defines Strategic Human Resource Management (SHRM) as making long

term decisions that affect human resources. It entails looking into the future human resource

needs of the organization and planning for resources that have the potential to affect the

business in the long term. In another definition, SHRM is defined as making certain that the

strategic goals and objectives of a firm take human resources into account. It is the ability to

effectively plan for and manage employees in such a way that in the future, there are no

uncertainties or human resource deficiencies (Chanda et al, 2014).

SHRM is a significant part of the business strategy of any organization. Business

strategies stipulate the plans for the company, its vision, mission, goals and long term

objectives. Many measures and concepts are under the business plans, and SHRM is one of

the most significant. It recognizes human resources as the most integral part of the

organization, and hence, strategic human resource needs are carefully planned for. All

business strategies must consider the implications of the employees in attaining those plans.

A five year business strategy must consider all human resource needs including training and

development, rewards and compensation, and all things affecting employees.

One of the most significant benefits of SHRM in organizations is that it acts as source

of competitive advantage. It ensures that the company has qualified staff, with innovative

skills that match the job expectations. It helps the organization recruit the most skilled and

competent employees, while at the same time providing quality compensation and benefits

that encourage them to work hard and improve the performance. Employees play a key role

in enhancing the success of an organization, and SHRM facilitates quality workforce needs

Impact of Information Technology on HRM Functions 18

and favourable working environments. This is a major source of competitive advantage for

the organization as its human resource standards attracts the best employees from major parts

of the globe. It also puts necessary incentives and strategies in place to ensure that the best

employees are retrained and that there are low labour turnover rates. It further facilitates

effective relationships between the management and the workers (Crisp, 2016). The

employees have a say in the decision making process, and are an integral part of the business

strategy. It puts the needs of all individuals working in the company under consideration. It

identifies the role of each employee in facilitation of an effective business strategy. In this

regards, employees are seen as partners and are treated with deep considerations. The SHRM

document acknowledges that people are the most significant assets in the long term strategy

of a firm and hence, all workers are treated highly and equally.

2.6 Theoretical Framework

2.6.1 General Systems Theory

The General Systems Theory (GST) was formulated by Bertalanffy in the early

1900s. The theory is concerned about systems thinking and integration of its analytical

tradition. It refers to the applications of systems and systems dynamics to find solutions to

complex challenges and phenomena. The theory takes not account the working and structure

of systems instead of focusing on how they function (Brazziler, 2009). It suggests that there

are solutions to all complex problems. According to the theory, all complex challenges share

similarities in their structures, and follow the same principles which can be modelled by use

of common mathematical applications. Every system is capable of being broken down into

individual elements, and each analysed independently. When all the components are

analysed, they represent the linearity of the whole system. The theory further implies that

knowledge of one system enables the users to gain insight about another. Hence, there is no

technology in an organization that is too hard to navigate through, as all tools and equipment

Impact of Information Technology on HRM Functions 19

have almost the same layout. Controlled systems are those in which at least one variable is

maintained at a particular range.

The theory is important in explaining the extent to which businesses adapt IT in their

operations. Once a new piece of technology is introduced ion an organization, it becomes

easy to be integrated because the users have prior knowledge about how to use similar

technologies (Bentalanffy, 2013). The theory also explains the rapid evolution of technology

over the years, attributed to the ease in which individuals and businesses use and apply any

new type of technology.

2.6.2 TOE Framework

Technology Organization Environment (TOE) Framework was conceptualized in the

1990s, and it aims to study the various factors that affect the extent to which organizations

embrace information technologies (Chiu et al, 2017). These factors include technology,

internal organization, and external environment. In the context of technology, these are the

features that make the particular tools and equipment useful. Companies will embrace a

certain piece of technology if it has particular characteristics that contribute to its overall

effectiveness, or if its use is in line with the expectations. Internal organization refers to all

the issues that affect a business internally. These include leadership, products and services,

business culture, employees, and business structure (Chiu et al, 2017). The theory stipulates

that organizations will embrace new technologies if they have the capability to positively

affect their internal operations. Before embracing the technologies, all internal aspects of a

business are put into consideration. For instance, are there qualified employees to handle the

new technology? Will the technology improve efficiency of operations? What are the costs of

integrating new tools and equipment? The environmental context refers to all the factors in

the external environment that have the potential to impact business operations (Kuan & Chau,

2011). Some of these include competition, political environment, social cultural factors, and

Impact of Information Technology on HRM Functions 20

legal environment, among others. For instance, a business will evaluate whether the new

technology will give it a competitive edge.

The TOE model is highly effective in helping organizations embrace new

technologies. It helps managers weigh the potential benefits, limitations and any uncertainties

of the technologies before they can be integrated into the organization. The model has been

sued widely by organizations all over the world to embrace innovative technologies (Chiu et

al, 2017).

2.6.3 TAM Model

The Technology Acceptance Model (TAM) has been used for many years to explain

the extent to which individuals accept information technological usage. Developed by Davis

in 1989, the model predicts behaviour of individual users of information technology (Lai,

2017). According to the model, two significant factors are considered when evaluating and

predicting the behaviour of individual users. These include perceived ease of use of the given

technologies, and the perceived usage they derive from the tools. Perceived ease of use is the

extent to which the users can comfortably use the equipment with less effort, while perceived

usage are the benefits the individuals expect to gain from the technology in terms of

improved performance (Surendran, 2012). The two variables are highly influenced by factors

in the external environment, such as the actual system use, attitude of individuals, and

intention of using the technologies.TAM model is one of the most popular theories in

explaining integration of technology in organizations. It is focused on the users of the

technology, rather that the organization as a whole. Over the years, the model has been

modified many times to meet the demands of increasing technological innovations and

advancements.

Taylor and Todd formulated a new model of TAM in 1995, which included the theory of

planned behaviour in the definition. The -TPB and put into account the behaviour of users of

Impact of Information Technology on HRM Functions 21

technology. Later on, the model was modified into TAM2, which included new elements.

Since 2000, the model has been modified more than five times, with each modification

adding new versions to the initial meaning. For many years, many studies have incorporated

the model in studying the integration of information technology. It has been applied in many

sectors including education and e-learning, banking systems, and healthcare.

Impact of Information Technology on HRM Functions 22

3. Research Methodology

3.1 Introduction

The current research is focused on exploratory and systematic measures of

investigating the impact of IT in HRM functions. The study provides an in depth analysis on

the methods of data collection and the various data sources used based on various hypotheses.

A case study of Apple Inc. is used to represent companies that have integrated IT in their HR

functions, and the impact it has had on performance and strategic development. The study

seeks to investigate three major variables, include the use of IT in HRM functions, the type of

IT tools used, and the overall impact on performance of organizations. The chapter provides

details of the approaches used, following the ethical guidelines, validation of data and

reliability.

3.1.1 Use of IT in HR Functions

IT has countless benefits when integrated into the HR of organizations. Through

increased advancements in IT, business managers can now meet the various HR challenges of

selecting, recruiting and retaining of employees (Mete & Unall, 2012). Through IT, many

functions originally done by the HR staff are performed electronically by use of computers

and smartphones. Thus, the staff can focus on more strategic objectives of the given firm.

Today, there are e-recruitment portals, which are sites in which employees from

different companies post job positions. The portals enable all job seekers to post their

qualifications online, including videos of their presentations. The employers go through all

the online applications and select the most qualified candidates for the job. Moreover, job

interviews can be performed online though video conferencing. The applicants do not have to

travel for long distances, since through technological innovations, they can see face time with

the interviewers and get immediate results. IT acts as an alternative for other routine tasks

Impact of Information Technology on HRM Functions 23

performed by HR staff. Some of these tasks include processing of employee payrolls,

administration of benefits, training, communication and other activities affiliated with

transactions. After the process of recruiting new employees, the HR manager can train them

on job requirements through IT. Visuals are used to explain to the employees the details of

their job (Gueutal & Johnson, 2015). In some companies, the employees are recruited and

trained online, and will only show up for their first day of work when the whole process has

been completed.

IT facilitates performance management. With increasing technological innovations,

there are performance management systems that are being used by employers to monitor the

performance of employees. An example of such a tool is the Computerized Performance

Monitoring (CPM) that help managers track the activities of employees over a given time

period. In addition, the system allows managers to gain crucial information about the

performance of employees and allows for transparency (Graegoire & Shepherd, 2011). This

helps to improve the success of the organization, since if the workers know that they are

being watched, they tend to work better. In the long run, all the goals of the organization will

be met, and this will give it a competitive advantage over other firms.

Through IT, virtual manpower can be facilitated. Virtual manpower is a situation in

which the workers can work from the comfort of their homes without having to go to work.

Such is the case for many data entry and telecommunication companies, where they sit at a

computer for long hours. Virtual manpower helps an organization to cut on costs and employ

people from all over the globe. It enables the company to employ people with diverse skills

and knowledge. In addition, it saves time and money that would otherwise have been used to

provide training and accommodate people in organizations.

From the use of IT in HR functions, the following hypothesis was formulated:

Impact of Information Technology on HRM Functions 24

H1: The use of IT in HRM is dependent upon the different tasks performed by the HR

managers.

3.1.2 Type of IT tools Used

Human Resource Information System (HRIS): HRIS is one of the most commonly

used IT by human resource managers. It is a system made up of integrated and interdependent

components that facilitate the storage, acquisition and analysis of all data related to HRM

(Mete & Unall, 2012). For contemporary HRIS, all information about the dynamics of the

employees, their age, background, skills and capabilities can be easily accessed. It also

contains information about the performance of the workers in relation to their assigned tasks

and responsibilities, and can be used to measure performance. It allows all information about

individuals in the organization to be accessed electronically any time it is needed.

Performance Management Systems: PMS are IT tools that allow the human resource

managers to monitor the performance of all employees in organizations. For large

organizations employing thousands of staff, it can be challenging to monitor the performance

each employee individual. PMS are electronic IT tools that facilitate monitoring of

performance through computers. They contain the details of each employee, their tasks and

responsibilities, and their work station (Llopis et al, 2014). The system contains information

about where each individual has been assigned, the work they are supposed to complete, and

the expected completion time. After the given completion time has elapsed, the effort of

individual employees, or team is measured electronically against performance. This enables

the GR managers to assess whether the tasks have been completed, and to reward well

performing employees. Those who do not meet the set standards of performance are let off

with a warning and encouraged to work hard.

Smartphones and Tablets: Emails have become the most formal communication tools

used in many organizations today. They are used for formal interaction among the

Impact of Information Technology on HRM Functions 25

employees, or between the workers and management. E-mails can be easily accessed through

computers, smartphones, and tablets. Every employee with a smartphone can access

important work emails whether they are at wok or home. Apart from e-mails, the HR

managers many use smartphones for e-learning and e-training, where they post important

information that is accessed by all the workers.

HR Portals: HR portals are access points that target every employee of a particular

organization. They are company websites that allow each member of the company to gain

access to crucial resources and data that are affiliated with the requirements (Kumal &

Kamal, 2013). They are also accessible to job applicants in the company to allow them to

gain sufficient information. They are protected by passwords available to all employees,

meaning that people outside the organizations cannot access the information. They are also

used as communication channels between the management and employees.

Employee Self Service (ESS): ESS is like HR portals, allowing employees to gain

access to their personal data that is with the HR. They facilitate transactions between

employees.

From the types of IT tools used, the following hypothesis was formulated:

H2: The IT tools used depend upon the type of HR staff using them.

3.1.3 Impact of IT on Performance

The use of IT has positive effects on performance as it allows for flexibility and

effectiveness. The following hypothesis if formulated:

H3: Use of IT has positive impact on performance of the HRM.

3.2 Research Design

The study is exploratory in nature, and therefore aims to search for linkages to the

data collected and hidden themes so as to find the answers to the objectives of this research.

Impact of Information Technology on HRM Functions 26

Through this research, better indulgence of the variables under study is provided. The study

seeks to analyses the use of IT in the HRM department of Apple Inc. It further evaluates the

impact of IT in HR functions, and the types of IT tools that are currently being used within

the company. In addition, the study will provide a recommendation of strategies that can be

implemented by Apple Inc. to facilitate successful implementation of IT tools in all sectors of

the HRM department. The design of this research is therefore an exploratory case study of

Apple Inc.

A qualitative research design is applied in the study to gather both primary and

secondary data related to IT in human resource management operations. It will help the

researcher get more information about the concept of IT and gain better perspectives on its

application in the electronic industry. Qualitative research will aid in giving appropriate

responses to questions and description of data.

3.3 The Case Study Approach

The case study approach is the most appropriate to use in this study, as it provides an

in depth exploration of the application of the phenomena under study. It helps in comparative

analysis of companies that use IT in HR functions and those that use the traditional methods.

Apple Inc. was selected because it represents all large organizations with an effective HRM

in place. The electronic industry is one of the most valuable globally, and Apple Inc.

represents all the companies that can partly attribute their success to the integration of IT in

their HR functions (Market Watch Wall Street Journal, 2014). The evolution of technology

over the past three decades has prompted big companies like apple to integrate IT in all their

operations. As the biggest smartphone producer, the company understands the important of

information technology especially in the human resource management. It employs more than

20000 employees, and to manage this number manually is close to impossible. IT has greatly

facilitated major aspects of the company’s human resource operations. Case study of Apple

Impact of Information Technology on HRM Functions 27

Inc. is used in this study because it allows the researcher to explore the existing theories,

measures, and marketing strategies related to information technology.

3.4 Sources of Data

Both primary and secondary data sources were used in the research. Primary sources

included interviews and questionnaires, while secondary sources included research from the

company’s annual reports, journals, articles, and peer reviewed studies on HRM.

3.5 Data Collection and Analysis

3.5.1 Questionnaires

The major data collection used was the use a questionnaire. The questionnaire was

prepared in English, which is the official language used in Apple Inc. To finalize the items to

be contained in the questionnaire, there were thorough discussions that were held with HRM

professors and experts. In addition, an in depth research on Apple was conducted, entailing

its operations, management, and current status of IT in their operations. Interviews with HRM

experts were conducted to get an input on the items that should be included in the

questionnaire. Using the case study will help the researcher understand all the complexities of

the processes under study, and gain valuable information on the integration of IT in HR

functions.

The questionnaire is structured in such a way that it has four broad questions, which

will contribute to the objectives of this paper. It contains only close ended questions so as to

get straightforward yes or no answers. It has four alternatives, and the respondents are

supposed to only choose one. The last question contains a range of values, and the

respondents are required to select one or more alternatives of those given. If their answers are

not among the given alternatives, they are required to write the answers they deem fit. The

respondents of the research consisted of all managers who work in the IT division of Apple,

Impact of Information Technology on HRM Functions 28

the human resource managers, and all staff working in the IT division of HR department.

Two representatives of the board of directors were also interviewed. The purpose of the

questionnaires was to mainly find out whether the integration of IT in HR functions had any

impact on the organizational objectives. The number of respondents was limited to 100

people, for effectiveness of the research. In total, 86 completed questionnaires were received,

which was a response rate of more than 70%.

3.5.2 Interviews

Apart from questionnaires, interviews were also used. The research questions used in

the interviews were all related to the use of IT in HRM and its impacts on the HR functions.

Unlike other forms of data collection, interviews allow for accurate representation of people’s

beliefs, motives and experiences. They involve direct interaction with the respondents, giving

room for accuracy of answers and truthful opinions regarding the concept under research.

This study used in-depth interviews, where for the respondents selected, feedback was

allowed, and the interview time was not limited. The respondents were allowed to express

their answers as they deem fit and allow get feedback from the research. This allowed for

flexibility and collection of in-depth information pertaining IT usage in HRM. Before the

interviews were conducted, an in-depth research on Apple Inc. was conducted, and the

number of respondents to be interviewed carefully selected. The number of respondents for

the interviews was 15. This included two HR managers, two top executive managers, and

employees in the HR department. The interview questions were aimed at analysing the extent

to which use of IT in HR had impacted the overall performance of the company.

The interviews were conducted in English, the official language of the company. They

were recorded using the tape recorders. In the days after the interviews, the recordings were

transcribed two times to ensure nothing was missed from the interviews. This also helps to

derive meaning from the respondents’ comments and gain an in depth understanding on their

Impact of Information Technology on HRM Functions 29

perception of the research. The transcription was conducted immediately after the interviews

to ensure that meaning was not lost by the researchers if the transcription was done at a later

date.

3.5.3 Challenges Encountered in the Data Collection

Several challenges were encountered during the collection of data. Firstly, it was hard

to gain access to the respondents. Apple Inc. is a busy company, and majority of participants

were not available for the interviews. Some had to leave before the interviews were complete,

while others refused to participate. Finding reachable respondents took many days and this

incurred too much research time. Some participants did not trust the researcher, and thought

that it was a secret mission to spy from them. Secondly, some participants failed to answer

majority of questions regarding the benefits of IT in the human resources.

3.6 Validity of the Research

Validity measures the extent to which the values and measures used to collect data are

related to the concept under study. It analyses the integrity of the findings from the research

and their relation to the research purpose. One of the strategies used in the study to ensure

validity was use of piloting procedures and processes to schedule the interviews.

Furthermore, the research followed all ethical guidelines and regulations, including maintain

anonymity of the respondents and confidentiality of information. Also, there was extensive

substantiation of the research questions to ensure that they were in line with the interview

questions. Original studies were used to formulate theory and concept, to facilitate external

validity of the study. The use of a case study also facilitated the validity of the research in

that the variables were analysed from real life situations. The interviews were in-depth, and

there was no bias of the respondents. The interviews were allowed ask questions and gain

Impact of Information Technology on HRM Functions 30

feedback, and also chose a location they deemed most fit. This was to ensure that the process

was free and fair, and that no participant had to provide answers they did not want to.

3.7 Reliability of the Research

Reliability of the research refers to the extent to which the measures used in data

collection are consistent. It is the ability to obtain the same results using the same values

when used in another setting. Reliability facilitates the accuracy of the results and the

authenticity of the whole research. It is the degree to which the research is accurate, with few

errors. To facilitate the reliability of this research, consistently in analysis of data was

maintained throughout. In addition, when collecting data from the participants, there was no

bias and the interviews asked were purely related to the concept under study. Moreover, all

the interviews were recorded and transcribed immediately to enhance their authenticity. Also,

before the research, the researcher followed all the necessary protocol, starting with

explaining to the managers the details of the study.

Impact of Information Technology on HRM Functions 31

4. Results

4.1 Introduction

The purpose of this chapter is to analyse the findings derived from the case study of

Apple Inc. in relation to the use of IT in its human resource functions. The chapter further

examines the types of IT instruments used to derive results, and the impacts it has on the

overall performance of the company. The data provided is descriptive in nature for effective

elucidation. The interpretation of the findings is carried out in two parts. Firstly, data from

the questionnaires will be interpreted, and the next part will focus on data gathered from the

interviews.

4.2 Analysis of Questionnaires

In total, 100 questionnaires were distributed, and of these, only 84 were received. The

84 that were filled were used to interpret the results of the study. Frequency counts were used

to find the rate of occurrence of similar answers among the respondents. This implies that

every time similar responses occurred, they were written down and added together. Then, the

results were presented n form of a percentage.

In the first part of the questionnaire, the respondents were asked the type of IT tools

they had the opportunity to use to carry out HR functions. This helps the researcher gather

responses from those participants who had never used any form of information technology to

carry out a HR operation. The responses of the participants who had the opportunity to use an

IT tool were considered.

Impact of Information Technology on HRM Functions 32

4.2.1. What type of IT tool have you used over the past one year?

VARIABLE

FREQUENCY

PERCENTAGE

A= MIS

23%

B=Smartphone/Tablets

95&

C=PMS

50%

D=HR Portals

100%

E=ESS

96%

Nearly all employees of Apple Inc. use smartphones and tablets to communicate with

the management and with each other through emails. Only 5 % of those interviewed have not

used a smartphone or a tablet for official HR business. 50 % of all the respondents have used

the performance management systems; all the respondents have used the HR portals, and

96% of respondents have used the ESS.

4.2.2. What are the Impacts of using IT in HR functions?

VARIABLE

FREQUENCY

PERCENTAGE

A=Positive

93%

B=Negative

78% of all respondents experienced positive impacts of using IT in the HR functions,

while only 6% did not experience any positive impacts.

Impact of Information Technology on HRM Functions 33

4.2.3. If the answer to 4.2.2 is Positive, why?

VARIABLE

FREQUENCY

PERCENTAGE

A=Reduced tasks

96%

B=improved performance management

30%

C=Low operational costs

42%

D=improved efficiency

89%

4.2.4. What are the uses of IT in HR?

VARIABLE

FREQUENCY

PERCENTAGE

A=E-recruitment

59%

B=Performance management

54%

C=official communication

97%

D=E-learning

78%

E=E-resources

77%

4.3 Analysis of Interviews

To further explore on the results from the questionnaires, interviews were used to get

more insights on the topic of IT in HRM. The interviews were open ended, and the

respondents were allowed to freely give their opinions and ideas. The following interview

questions were discussed:

i) How long have you used IT in HRM?

Majority of respondents have been using various types of IT for more than five years. Over

the past one year, IT usage increased significantly.

Impact of Information Technology on HRM Functions 34

ii) How has the company benefit from using IT in HR functions?

About 90% of all responses were on the positive impact of IT in HR functions. Most cited

reduced tasks and responsibilities and improved flexibility and efficiency of operations as the

most significant impacts.

iii) What challenges, if any, have you experienced with the integration of IT in HR

operations?

One prevalent challenge encountered was downsizing of employees in the HR department

due to decreased tasks and responsibilities. Other challenges include alienation from the

management, and need to adapt to changing technologies.

iv) What type of IT tools is most commonly used in the company to carry out HR

functions?

Smartphones and tables are the most commonly used from of IT, according to more than

90% of the responses. Technologies like PMS and MIS were mostly sued by the HR

management staff.

v) Should there be more technology usage in HR?

Majority of the responses were on the affirmative.

Impact of Information Technology on HRM Functions 35

5. Discussion

5.1 Use of IT in Human Resource Management

Over the years, the use of technology in HRM has gained strategic significance and

today, it has become increasingly hard for one to exist without the influence of the other.

With the rapid advancements and innovations in technology, human resource managers must

adopt the new technologies and have the capabilities to successfully integrate them in the

management of personnel (Aljowadi, 2015). One of the most significant causes of increased

use of IT in HRM is the increasing need for effective and flexible HR systems in

organizations. The function of HR in all companies has become significant, fuelled with the

realization that people are the most important organizational assets. According to Akman and

Mishra (2010), the increased organizational challenges of flexibility and effectiveness can

only be met by leveraging IT in all their operations. The growing sophistication of IT in

many functions of human resource management has contributed to the emergence of virtual

HR. Through IT, businesses can now deliver quality services and gain a competitive

advantage over those that have not fully embraced the new technologies.

The broad scope of human resource management function calls for the

implementation of HR systems that are capable of utilizing the rapid technological

advancements in its structures. A survey conducted by Akman and Mishra (2010), found out

that 90% of all organizations with effective HRMS use information technology in all their

operations. The more a business uses IT in its HR functions, the more the changes in the

overall effectiveness and the more the scope of work accomplished. Given the scope of their

research, it is evident that implementation of IT in companies has lessened the working HRM

and improved the overall effectiveness of organizational capabilities. Another study by Itika

(2011) showed that the application of IT in HR functions rapidly emerged in the early 1990s.

During this period, there was rapid integration of information in businesses, and this

Impact of Information Technology on HRM Functions 36

increased the popularity of Enterprise Resource Planning (ERP). ERP enabled organizations

to integrate different aspects of technologies including voice recognition software, employee

portals and other applications (Ishmael & Mokhtar, 2015). Nearly every major organization

had implemented some aspect of ERP, and it became a major source of competitive

advantage. ERP also permitted HR managers to effectively use the internet in its functions,

during a time when it was not as popular as it is today. One type of ERP that was highly

popular was the PeopleSoft package, software that allowed the human resource managers to

keep track of a large number of employees in large organizations (Mete & Unall, 2012). It

also allowed for monitoring of their activities and performance management, and also

calculates their salaries electronically.

For years after companies started to use ERP technologies, many changes and

innovations in the software emerged, forcing them to keep up with changing technological

demands. Once an organization or institution starts using a certain type of technology, it must

always be on the look-out for changing trends and keep up with the changes. Over the past

twenty years, the integration of information technology in human resource management

functions has increased the value of HRM and the organization as a whole (Nadiger, 2016).

Businesses have been forced to adapt information management system whilst keeping up to

date with any new changes in technologies. Today, more than ever, large volumes of data

regarding the details of employees can be stored and easily accessed from a computer any

time. Also, it takes only a few seconds to get any information the HR staff many want on a

particular employee.

5.2 Impact of IT in HRM

The integration of IT in HRM has led to strategic competent organizational

management. It facilitates the creation of work place operations that are based on information

technology, which improves flexibility and effectiveness. Through increased advancements

Impact of Information Technology on HRM Functions 37

in IT, business managers can now meet the various HR challenges of selecting, recruiting and

retaining of employees.

A significant benefit of IT in HRM is releasing the HR personnel from their various

intermediate roles. Through IT, many functions originally done by the HR staff are

performed electronically by use of computers and smartphones. Thus, the staff can focus on

more strategic objectives of the given firm. For instance, IT has enables managers to select

and recruit new employees online. Such operations require only a few staff, leaving the others

to more active duties of running a business. Unlike in the past where advertisements for jobs

were performed manually, today, they have been made possible with only the click of a

button (Park, 2009). The HR managers post vacancies online, through the company website

or by use of social media platforms. Interested applicants post their applications online

through email. Then the staff analyses all the applications and select those who meet the

qualifications for the job advertised. Afterwards, the selected employees are informed of the

decision online. Today, there are e-recruitment portals, which are sites in which employees

from different companies post job positions. The portals enable all job seekers to post their

qualifications online, including videos of their presentations. The employers go through all

the online applications and select the most qualified candidates for the job. Moreover, job

interviews can be performed online though video conferencing. The applicants do not have to

travel for long distances, since through technological innovations, they can see face time with

the interviewers and get immediate results.

IT acts as an alternative for other routine tasks performed by HR staff. Some of these

tasks include processing of employee payrolls, administration of benefits, training,

communication and other activities affiliated with transactions. After the process of recruiting

new employees, the HR manager can train them on job requirements through IT. Visuals are

used to explain to the employees the details of their job. In some companies, the employees

Impact of Information Technology on HRM Functions 38

are recruited and trained online, and will only show up for their first day of work when the

whole process has been completed. Integration of IT in human resource management

functions has the potential to lower operational costs.

IT facilitates performance management. With increasing technological innovations,

there are performance management systems that are being used by employers to monitor the

performance of employees. An example of such a tool is the Computerized Performance

Monitoring (CPM) that help managers track the activities of employees over a given time

period (Nadiger, 2016). In addition, the system allows managers to gain crucial information

about the performance of employees and allows for transparency. This helps to improve the

success of the organization, since if the employees know that they are being watched, they

tend to work better. In the long run, all the goals of the organization will be met, and this will

give it a competitive advantage over other firms.

Through IT, virtual manpower can be facilitated. Virtual manpower is a situation in

which the workers can work from the comfort of their homes without having to go to work.

Such is the case for many data entry and telecommunication companies, where they sit at a

computer for long hours. Virtual manpower helps an organization to cut on costs and employ

people from all over the globe. It enables the company to employ people with diverse skills

and knowledge. In addition, it saves time and money that would otherwise have been used to

provide training and accommodate people in organizations.

5.3 Future Trends of IT in HRM

Increased Use of E-Recruitment: Organizations are becoming more global and with

this, the need to employ people from all parts of the world has increased. For large

organizations, the need to embrace diversity of the workforce has called for employment of

more and more people outside the organization’s location (Lai, 2017). To get hold of diverse

employees, many businesses are using e-recruiting services to attract thousands of applicants

Impact of Information Technology on HRM Functions 39

from different parts of the world. The trend is projected to increase in the future, as

companies have realized the effectiveness of e-recruiting services.

Increased advancement of IT technology is projected in the future. A major element

of technology is that it keeps evolving and changing. Business operations have become more

technology centred, with online shopping, IT, e-commerce among others. Almost all

operations are currently being performed automatically (Chutur, 2009). The trend is projected

to continue and more IT tools will be used in human resource management.

Working from Home: the integration of IT in HRM has automated operations, and

many tasks and responsibilities are being performed online. Today, majority of the HR work

involves sitting at a computer the whole day and keeping an eye on operations. Many

organizations, especially those that are more statistical in nature, employ people from all over

the world who only work from the comfort of their homes. The trend is projected to evolve in

many companies and businesses, especially with the need to cut down resources while at the

same time increasing manpower requirements (Kuan & Chau, 2011).

5.4 Limitations of IT in HRM

The increased use of IT in HR functions has lessened the work of the employees,

leading to retrenchment and firing of employees for simple mistakes. Before IT gained

importance in the early 1990s, organizations used to employ many employees for various HR

functions across all departments. Today, the use of computers to store data for all staff and

control operations has led to a reduction in the number of people required in the HR

department. In fact, one person can monitor the activities of thousands of employees using a

computer, limiting the need for supervisors (Surendrin, 2012). Generally, this contributes to

unemployment and lack of advertisements for new job positions, which could create a poor

image for the organization. Therefore, while IT has made things easier and improved

effectiveness of operations; it has also limited the need for actual human contact.

Impact of Information Technology on HRM Functions 40

The adoption of information technology in HRM requires the HR personnel to have

new sets of skills. There has to be extensive training for new and existing staff on how to

successfully integrate technology in al HR functions (Gillies, 2004). This may incur a lot of

organizational resources in terms of time and costs. When using E-Recruiting portals, IT

services that allow HR managers to recruit new hires online, there is lack of actual human

contact which degrades personal relationships between employees and the company. Using

IT technology is a great barrier to communication as it limits interactions and feedback

between the employers and the new employees. In addition, online selection can be biased as

the process is rigid, leading to dissatisfaction on the part of the applicants. Due to the barriers

of e-recruiting, many qualified candidates shy away from applying for the job positions, and

in the end, there will be no skilled candidates for the jobs. According to Geutal and Johnson

(2014), a significant challenge of e-recruiting is the large number of applications received on

a regular basis. Due to the ease of applying for jobs online, organizations receive applications

from diverse individuals from different part of the world. Sorting through all the applications

is a complex process that incurs significant amounts of time and money. Moreover, it

becomes hard for the HR managers to decide between candidates who have similar

experiences and skills required for the position.

Another major limitation of using IT in HR functions is that today, technology keeps

changing and evolving, and the human resource managers have to be on the lookout for new

technologies. Majority of technologies need regular updating and replacing which can be

overwhelming, especially for small organizations. It takes much time and costs to replace the

technologies, and even more costs to train employees on how to run the new equipment.

Impact of Information Technology on HRM Functions 41

Conclusion

This study has evaluated the impact of IT in HR functions. From the case study of

Apple Inc., it is evident that the success of the company has greatly been influenced by its

integration of new and innovative technologies. Advancements and innovations in technology

have seen many firms adopting information technology to perform crucial HR functions. The

increasing strategic emphasis of HR functions in organizations has led to alignment of IT and

human resources, aimed at improving efficiency in organizations (Kumal & Kamal, 2013). In

the past, majority of human resource management operations were conducted traditionally,

but the increasing technological advancements have been acknowledged by both small and

large firms. Technology plays a significant role in Human resource management and is being

used by organizations as a source of competitive advantage. The increasing demand for

enhancement of speed, quality and efficiency by professional human resource managers is

one factor that has led to the adoption of modern technology.

Impact of Information Technology on HRM Functions 42

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