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Information Technology On Human Resource Management

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Question:

Discuss about the Information Technology on Human Resource Management.
 
 

Answer:

Introduction

Human Resource Management (HRM) is a crucial area towards managing the each department of an organization (Mamoudou & Joshi, 2014). Likewise, it has also extreme importance in managing the account professionals of an organization. Accountant professionals are the most important part of any organization, as they control the budgets for long term sustainability the organization (Marler & Fisher, 2013). Hence, they are to be managed with crucial importance. However, managing the accountants lies in assisting them in more accurate financial calculation for the organization.

In this extent, information technology (IT) has demonstrated its growing importance in managing the human resources like account professionals. Various automated software tools has contributed lots of assistance towards making the complex accounting tasks flexible (George et al., 2014). This project proposal will be highlighted on the impact of information technology on human resource management. The project proposal will frame effective research objectives and questions towards gathering authentic information regarding the research topic.

 

Project Context

Recently, I am pursuing accounting as my course in my university. I have chosen accountant as my profession in my near future. According to Schoenfeld et al., (2017), accounting is all about measuring, processing and communicating the financial information of an economic entity like corporation or business. On the other hand, de Magalhaes and Wilde, (2015) opined that accounting is fully concentrated on recording the financial transaction of an organization towards its proper analysis, interpretation and reporting. Accounting has got a world wide scope and broad areas of application. Accounting is not limited to any particular business world alone. It has spread in almost all sphere of society and in all professions. In today’s modern world, the system of accounting is not only practiced in business institution, but also in various non-trading institutions like hospitals, colleges, schools, co-operative society, charitable clubs etc (Drew Sellers et al., 2014). Hence, considering account as the profession for my near future, I will get ample opportunity of job in various sectors for overseeing financial activities.

I can get ample of opportunity in different industries including public and private sector or I can also be self-employed as an accountant. According to Samsuri et al., (2016), accountant professions are mostly related to forming tax, balance sheet, bookkeeping and other accounting service. On the other hand, Waweru et al., (2014) opined that accounting professionals can also explore their careers management accountants, cost accountants and external or internal auditors in any entity. I can both work as full time employee within an organization or with multiple clients depending on the demand of accounting work in those organizations. Apart from auditing, bookkeeping, recording and tax forming, I will also get scope to work for making budgets and costs for any organization. However, the job of an accountant is not an easy job, when the jobs are handled manually. Accuracy and efficiency is the utmost priority in the jobs of an accountant (Drew Sellers et al., 2014). There is high chance of error in calculation process of accounting jobs. Here is the blessing of information technology in managing the jobs of human resources. Account professional is the most significant human resource, who has high needs of information technology in their jobs. The advent of information technology has made the field of account much easier and flexible.

Informational technology is quite helpful managing the human resources of an organization. Accounts are the biggest part of organizational human resources. Likewise, it is also quite helpful in managing the complex calculation of accountants. Moreover, while performing the job of auditing, I can deal with various automated auditing software and manage the job more effectively and easily. Quite often, the account professional are to verify the budgets for new recruitment and training programs of an organization. In such case, various automated accounting software can help the accountant greatly. Apart from that, while dealing with vendor and inventory control, the account can get huge support of the technology like ERP software for involving accuracy in the activities (Schoenfeld et al., 2017). Moreover, while dealing with almost every part of the organization as an accountant, I will get scope of quick career promotion in my organization.

 

Background of Research

In today’s competitive business environment, the top human resource managers of organizations have fully realized the power of information technology on achieving their business target. Apart from managing the other departments, the human resource managers are to keep constant observation over the accounting professional. Accounting professionals forms the building block of an organization through representing accurate and attractive financial statement to the internal and external stakeholders (Bloom et al., 2014). Hence, the HR managers must have to identify their needs for their better performance and making sustainable business. Over the years, human resource managers have provided several automated accounting software to the accountant for better control over their financial activities.

Problem Statement

Information technology has completely changed the job platform of accountant professionals. They are now more efficient and accurate in the complex financial calculation of organizational financial transaction. The automated software tools have eliminated the tedious and long manual process for demonstrating organizational budgets (Marler & Fisher, 2013). However, some of organizations have still not recognized the growing importance of information technology in managing their human resources mostly their accountant professions.

These organizations are mostly concerned about the expensive maintenance of accounting software and overlooking the huge benefits behind the expenses (Chae et al., 2014). This project proposal will explore the growing impact of information technology on human resource management. Moreover, the project proposal will mostly be related with managing account professionals for showing the importance of informational technology.

Research Aim

The aim of the project proposal is to explore the impact of information technology on human resource management.

 

Research Objectives

  • To explore the impact of information technology on human resource management
  • To identify the importance of information technology for accountant professionals
  • To recognize the information technology tools applied in the areas of accounting professionals
  • To identify the issues of implementing information technology in human resource management
  • To suggest the ways in which informational technology can be better implemented in human resource management

Research Question

  • What are the impacts of information technology on human resource management?
  • How information technology can be beneficial for the accountants?
  • What are the informational tools applied in the functional areas of accounting professionals?
  • What are the issues of implementing information technology in human resource management?
  • How information technology can be better implemented in human resource management?

Literature Review: Concept of Information Technology

Information Technology is an effective area of managing technology. It has spread wide variety of areas including but not limiting to things like process, computer software, computer hardware, information system, data construct and programming language. According to Mamoudou and Joshi, (2014), anything, which renders data, information and perceived knowledge in visual format through multimedia distribution mechanism, is considered as the part of information technology. On the other hand, George et al., (2014) opined that IT is the best application of computers towards storing, retrieving, transmitting and manipulating important information.

 

Human Resource Management and Relation to Information Technology

While considering the human resource management, the organizations can effective use IT for managing their information securely for successful organizational development. According to Chae et al., (2014), human resource managers can effective use information technology from their recruitment to development and performance assessment of the employees. On the other hand, Park and Lee, (2014) stated that the most significant usage of IT in HRM can be seen in managing accountants through assisting them in complex financial calculation. It assists in faster calculation and better external reporting of financial statement. The assistance is associated mostly with providing accounting software for better efficiency and accuracy in their complex financial calculation.

Figure 1: Framework for Information Technology Human Resource Plan

(Source: Marler & Fisher, 2013)

Impact of Information Technology tools in Functional Areas of Accountant

Accounting software is consisted of basic accounting functions like input, processing and output. Tax preparation software assists the accountants towards preparing tax in computerized way, which leads to better accuracy than manual process. Moreover, it is also helpful preparing accurate tax, while dealing with frequently changing tax laws. Bloom et al., (2014) opined that automated audit software has eliminated the needs of tedious manual process towards auditing the financial data of organizations. On the other hand, there is also word processing software, which facilitates the accountants for preparing billing, reports, financial statements and memos in faster way. As per George et al., (2014), electronic data transfer helps the accountants towards transferring money between the customers and organization effectively.

Issues in Information Technology

According to Chae et al., (2014), security breaches are likely to be the most significant issues in implementing information technology in human resource management. While security breaches occur, large volume of vital organizational information can be leaked out to the unauthorized stakeholders. It can ultimately damage the success of organizations. On the other hand, Mamoudou and Joshi, (2014) opined that employees can face difficulties with the technical loop holes of the IT software. Lack of collaboration between the IT department and management can minimize the organizational efficiency. On the other hand, mobile solutions used by the employees often can disintegrate the whole business process of an organization.

Best Implementation process for implementing IT in Human Resource Management

The security measures of the information technology tools should be concrete and effective. The authentication process should be concrete enough so that unauthorized person cannot access the important information of the organization. On the other hand, the employees of the organizations should be trained enough for handling the IT software used in human resource management. Apart from that, there should be high level of integration between the employees and management towards utilizing mobile solutions.

Research Method

Method Outline

For this project proposal, inductive research approach will be chosen, where observation will be conducted first on the research topic and then theories will be framed based on the observation. Apart from that, descriptive research purpose will be selected in this project proposal. It will assist in understanding the research topic in more clear way and framing effective research objectives and questions (Lather & St. Pierre, 2013).  Moreover, secondary data collection method will be chosen in this project proposal, where authentic information will be collected from authentic journals, books and websites.

Gantt Chart

 

Figure 2: Gantt chart for Project Schedule

(Source: Created by Author)

 

References

Bloom, N., Garicano, L., Sadun, R., & Van Reenen, J. (2014). The distinct effects of information technology and communication technology on firm organization. Management Science, 60(12), 2859-2885.

Chae, H. C., Koh, C. E., & Prybutok, V. R. (2014). Information Technology Capability and Firm Performance: Contradictory Findings and Their Possible Causes. Mis Quarterly, 38(1), 305-326.

de Magalhaes, J. R. A., & Wilde, H. (2015). An Exploratory Study of the Career Drivers of Accounting Students. Journal of Business & Economics Research (Online), 13(4), 155.

Drew Sellers, R., J. Fogerty, T., & M. Parker, L. (2014). Mobility and structural change through traumatic organizational events: A social network analysis of accountant career management. Journal of Accounting & Organizational Change, 10(3), 382-408.

George, G., Haas, M. R., & Pentland, A. (2014). Big data and management. Academy of Management Journal, 57(2), 321-326.

Lather, P., & St. Pierre, E. A. (2013). Post-qualitative research. International Journal of Qualitative Studies in Education, 26(6), 629-633.

Mamoudou, S. E. Y. N. I., & Joshi, G. P. (2014). Impact of Information Technology in Human Resources Management. Global Journal of Business Management and Information Technology, 4(1), 33-41.

Marler, J. H., & Fisher, S. L. (2013). An evidence-based review of e-HRM and strategic human resource management. Human Resource Management Review, 23(1), 18-36.

Park, J. G., & Lee, J. (2014). Knowledge sharing in information systems development projects: Explicating the role of dependence and trust. International Journal of Project Management, 32(1), 153-165.

Samsuri, A. S. B., Arifin, T. R. B. T., & Hussin, S. B. (2016). Perception of Undergraduate Accounting Students towards Professional Accounting Career. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(3), 78-88.

Schoenfeld, J., Segal, G., & Borgia, D. (2017). Social cognitive career theory and the goal of becoming a certified public accountant. Accounting Education, 26(2), 109-126.

Waweru, N., Çal??kan, A. Ö., Akba?, H. E., & Durer, S. (2014). Factors influencing the accounting profession career choice: evidence from an emerging economy. International Journal of Critical Accounting, 6(2), 147-165.

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