Electronic Human Resource Management (e-HRM) and Organisational Performance

This study was caried out to examine employees’ perception of the effect of electronic human resource management (e-HRM) on organizational performance. Focused on four e-HRM components: e-recruitment, e-training, e-performance system, e-compensation combined effect on organizational performance (financial, customers, internal business, learning/growth) and determined the component with the strongest effect. Questionnaire survey covering demographics, e-HRM components and organizational performance on 332 respondents drawn from middle to senior level management employees of two Brewery firms in South-West Nigeria. Questions were framed to assess the extent to which they agree or disagree with the use and effect of e-HRM on organizational performance. Data collected was analysed using inferential statistical techniques of Partial Least Squares-Structural Equation Modelling to test the significance of e-HRM on organizational performance. Respondents perceived e-HRM improved organizational performance. Model β = 0.690, t = 17.491, f 2 =0.910, predicted that P ˂ 0.05 up to 48% variation in organisational performance is explained by e-HRM practices. Weight of each component showed: e-Recruitment= 0.383, e-Training= 0.078, e-Performance System= 0.216, e-Compensation= 0.250 as e-recruitment is perceived to have the strongest weight and effect on organizational performance. Implication is that the organisations should strengthen e-Recruitment exercise and strategically position e-HRM practices as corporate strategies to enhance organization performance.