How strategic considerations influence decision making on e–HRM applications

Abstract

Although numerous studies indicate that the added value of human resource management is strongest when HRM decisions are linked to the organizational strategy, practical knowledge about how strategic considerations influence decision-making processes relating to e-HRM is limited. Therefore, the purpose of this study is (1) to examine in three case studies how strategic considerations influence the decision-making process around the introduction of e-HRM applications, (2) to present propositions for further research, and (3) to offer recommendations on how to better include strategic considerations in the decision-making process. Three in-depth case studies of companies' e-HRM implementation were performed using a model on e-HRM strategy formulation (Marler, 2009). The case studies reveal that when specific business drivers are absent from the decision-making process, the main role of e-HRM becomes to provide an infrastructure with a focus on preventing dissatisfaction. In order for e-HRM to be used in a more strategic way, business and HRM should be aligned. Based on the findings, we offer research propositions for academics studying this emerging field of the interconnections between strategy, human resource management and IT systems. In addition, we offer recommendations for HR practitioners on how to optimize the match between business and HRM.