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WHATT
2,1 Have human resource information
systems evolved into internal
e-commerce?
30
Amir Shani
Ben-Gurion University of the Negev, Beer-Sheva, Israel, and
Dana V. Tesone
Rosen College of Hospitality Management, University of Central Florida,
Orlando, Florida, USA

Abstract
Purpose – The purpose of this paper is to discuss the impact of technology on the human resources
(HR) function in organizations, in general, and in hospitality firms, in particular.
Design/methodology/approach – The issue is presented through an extensive literature review, in
addition to practical examples and demonstrations from the hospitality industry.
Findings – The literature clearly points to a substantial incorporation of technology in HR
operations, to the extent that human resource information systems (HRIS) are perceived today as
internal e-commerce. This transition offers significant potential but also raises challenges and
concerns. In addition, certain constraints often prevent HRIS from being utilized to their full potential,
and therefore need to be addressed at the managerial level.
Practical implications – The review particularly raises the importance of managerial commitment
to the successful performance of HRIS in organizations. In addition, suggestions for overcoming the
barriers of the effective implementation of HRIS across HR functions are detailed throughout the paper.
Originality/value – The paper presents an important contemporary issue that has received very
little attention in the hospitality and tourism literature. By providing a state-of-the-art review on the
potential contribution of HRIS to the industry, and elaborating on critical issues related to the topic, the
paper can be of value for both HR educators and practitioners.
Keywords Human resource management, Information systems, Communication technologies,
Electronic commerce
Paper type Conceptual paper

Introduction
Human resources (HR) have been a well-established function in organizations for decades,
although it was given different titles (e.g. manpower, personnel administration).
Traditionally, the HR department manages the administrative aspects of the employees,
such as recruitment, selection, training, labor relations, payroll, compensation, and
retirement. As such, the department was typically perceived by many organizations as a
“necessary evil,” that is to say, as an essential but in no way profitable or advantageous
element, from the business point of view (Lawler and Mohrman, 2003). Another prominent
Worldwide Hospitality and Tourism perceived characteristic of the HR function has been its reliance on relatively low-tech
Themes methods in implementing its tasks (Singh and Finn, 2003). As noted by Wilson (1998,
Vol. 2 No. 1, 2010
pp. 30-48 p. S11), “Human Resources professionals have earned the reputation of being
q Emerald Group Publishing Limited
1755-4217
techno-phobic,” typically avoiding to embrace new technology in their operations while
DOI 10.1108/17554211011012586 perceiving their occupation as more human-oriented. It should be mentioned that this
characteristic is especially dominant in the hospitality industry which, by and large, is Human resource
lagging behind other industries as far as technology is concerned (Brymer and Singh, information
2004). Nevertheless, these well-accepted attributes of HR have been challenged in the past
few years, as several indicators reflect fundamental changes within the HR function, systems
which is also manifest in the hospitality industry. Therefore, the purpose of this paper is to
provide a state-of-the art review of the effects of technology on HR, while specifically
discussing its relevance for the hospitality industry. 31
HR has continued shifting its focus from playing a purely technical administrative role
to being actively involved in the strategic planning and management of an organization,
while creating added value to improve its competitive advantage (Grobler and Wärnich,
2002). This was the original intent when departments shifted titles from personnel
administration to human resource management (HRM). Fisher et al. (1999) stated in this
regard that HR today, as the responsible function for the human asset, is expected to take
part in the formulation and the implementation of long-term plans. In addition, HR should
ensure that its practices are in line with the organization’s overall business strategy, while
contributing to the development of employer-employee partnerships and shared
commitment, geared toward the accomplishment of the organization’s goals. When
referring to the future of HR in the hospitality industry, Woods (1999) also mentioned that,
although little has changed in this function over the past decades, there are growing
expectations that HR will improve corporate competitive advantages by adding real
measurable value to the organization. Thus, rather than being measured by indicators
such as the number of trained employees, HR performance will be evaluated by its effect on
long- and short-term profits, return on investments (ROI), earning per share, equity
appreciation, etc. Indeed, Baughn et al. (2004) pointed to the evidence that HR practices,
such as training and development, employee pay systems and employee feedback, are
closely related to the performance and competitive advantages of firms.
However, it is not entirely clear whether this premise of growing involvement of HR
in strategic issues has been realized to the fullest. Baum (2007) reports that little evidence
exists to indicate that HR is currently playing a significant strategic role in hospitality
and tourism. Furthermore, the HR function is still criticized by many as being inefficient,
out of touch with business considerations, and a mere cumbersome bureaucratic
system with no strategic vision (Woods, 1999). The apparent difficulties in upgrading
HR to a strategic position in organizations result in missed opportunities especially
in hospitality and tourism, where the human capital has substantive potential
to improve the competitive advantage of enterprises, particularly due to the growing
competitiveness of the industry, as well as the centrality of the human element in the
delivery of hospitality products and services (Collins, 2007; Demir, 2004). Yet, more HR
practitioners recognize the required change for more business-oriented management,
and express general support for a more strategic role of HR (Fisher et al., 1999).
The second change in contemporary HR which, interestingly, is closely related to the
previous one, is the growing trend of incorporating advanced information technology (IT)
in HR practices. There is extensive evidence to the growing transfer of HR functions to
digital formats, as can be seen in the growing popularity of human resource information
systems (HRIS) among organizations. HRIS is currently perceived as one of the important
factors influencing the role of the HR function, as well as the workplace as a whole.
Although in many aspects, technology remains under-utilized in HR functions (Jones and
Hoell, 2005), recently its effects have begun to be evident in many organizational aspects,
WHATT such as recruiting, selection, training, promoting, terminating, and complying with legal
2,1 requirements (Hussain et al., 2007). Furthermore, it is widely argued that the adoption of
HRIS is likely to promote HR to the awaited position of strategic partner in the
organization. The main reason for this is that by using HRIS, HR professionals can improve
their performance by gaining better knowledge of the organization and its employees, thus
facilitate participation in strategic planning and implementation. In addition, by improving
32 the efficiency and effectiveness of the HR day-to-day administrative tasks, HRIS allows the
HR staff to dedicate more time to strategic decision making and planning, which
consequently provides more value to the organization to enhance its position within it
(Ngai and Wat, 2006; Targowski and Deshpandé, 2001).
The effect of technology on the HR function has not skipped the attention of the
tourism and hospitality industry (Brymer and Singh, 2004; Garcés et al., 2004), although
it has not yet fulfilled its full potential (Woods, 1999). In addition, Singh et al. (2007) found
that although technological issues have been receiving growing attention in the general
hospitality literature, no equivalent process was identified in HR hospitality research.
This gap in the literature prevents the full understanding of the potential of IT to
fundamentally change and improve HR practices, especially in light of the unique
characteristics of the hospitality industry.

Technology and HRIS

Definitions
The need for an advanced and sophisticated information system for the HR function
has been well acknowledged since the mid-1970s. As noted by Hyde and Shafritz
(1977, p. 70):
Given the fact that human resources constitute such an important part of any organization’s
resource base, the development of an information system that provides an ongoing
assessment of the utilization of these resources is a natural reaction to an essential managerial
need.
In an early conceptualization, Walker (1982, in Jones and Hoell, 2005, p. 321) defined
HRIS as:
[. . .] a systematic procedure for collecting, storing, maintaining, retrieving, and validating
data needed by an organization about its human resources (HR), personnel activities, and
organization unit characteristics.
These early notions of HRIS reflect the growing recognition of the vital role of HR in
creating an “information culture” within the organization (Townsend and Hendrickson,
1996), i.e. learning to efficiently collect and store employee information and effectively
use it to enhance both the department and the organization’s performance. Yet, the
crucial role of technology in operating and achieving the goals of HRIS was only
emphasized at a later stage. Broderick and Boudreau (1992, p. 17), in a techno-centric
definition, stated that HRIS is “the composite of data bases, computer applications, and
hardware and software necessary to collect/record, store, manage, deliver, present, and
manipulate data for HR.” Nevertheless, as noted by Hendrickson (2003), even at the
current time HRIS is not limited to technological elements alone, such as computer
hardware and software applications, but also includes the people, policies, procedures,
and data required to manage the HR function.
Technological features of HRIS Human resource
While the human role in HR management should not be underestimated, the benefits of information
modern HRIS for the most part stems from the underlying technology. Ashbaugh and
Miranda (2002) described the technological features of an effective HRIS. Most systems
importantly, HRIS technology should allow integration, i.e. the extent to which different
functions are tied together in the overall system. By creating a common database to all
individual HR-related units (e.g. payroll, benefit administration, and pension), work 33
duplication is eliminated and various processes and procedures become more efficient.
In contrast to the obsolete HR systems that contain non-relational employee files,
modern HRIS facilitate integration by using a relational database to store and categorize
all the separate files. Consequently, all information related to an employee can be
accessed from any company location, by simply entering the employee ID number
(Hubbard et al., 1998). In addition, technology should offer HRIS tailing functions such as
audit trail and drill down capabilities. The former provides the ability to track and
review all changes to a file in a database, while the latter provides the ability to reach the
source document of a previous step in the process. These features allow HR, in addition
to other stakeholders in the organization, to follow and control changes occurring within
the human capital, as well as recognizing trends in the workplace.
More recently, modern HRIS make optimal use of internet and web capabilities for
performing their tasks. The growing incorporation of the internet in HR operations, also
known as e-HR (Svoboda and Schröder, 2001), allows both HR professionals and managers
to view relevant employee information from any location at any time, as long as they have
access to a connected computer. This contemporary trend of “wiring” the workplace has
been a central stimulant to the move of HR from paper-based processes, often conducted
by HR practitioners, to the use of self-service functionality, by both employees and
managers. Intranet-based employee self-service (ESS) provides employees direct access,
mainly through a web browser but also through a centralized kiosk, to personal HR-related
information. Thus, the employees can individually handle transactions that used to be
carried out by HR personnel, such as changing name and address, choosing benefits and
filing timecards, managing banking information, electronic pay-stub, travel
reimbursement, enrollment in training sessions, etc. (Ashbaugh and Miranda, 2002;
Targowski and Deshpandé, 2001). In addition, many ESS also include HR portals, which
enable the employees to access organizational information (such as directories of services,
company news, announcements, and current events), as well as to communicate with each
other via e-mail (Kovach et al., 2002).
More currently, HRIS have also begun to incorporate manager self-service (MSS),
which was defined by Roberts (2004, p. 157) as:
[. . .] the use of software and the corporate network to automate paper-based personnel-related
processes that require a manager’s approval, record-keeping or input, and processes that
support the manager’s job.
Examples of routine transactions that can be done through the MSS are authorizing pay
increases, managing work schedules, approving vacation time, and travel expenses, as
well as enabling employee access to information. More strategic-oriented MSS and ESS
applications include recruitment, selection, training, compensation planning, and
performance management, among others, which will be further developed later in this
paper. Both MSS and ESS create a trend of delegation of responsibilities and activities
WHATT that were once considered to be the domain of HR professionals and administrative
2,1 personnel, directly to employees and managers (Lengnick-Hall and Moritz, 2003).

Advantages of HRIS
At its beginning, HRIS was seen mostly as a special form of office automation systems,
the emphasis being on reducing costs and staff while making the standard HR tasks
34 more efficient (Kovach and Cathcart, 1999). In this view, incorporating HRIS in the HR
function provides clear administrative advantages, the most obvious one being a move
toward paperless workplaces. In addition, in today’s workplace the HR tasks have
become more complex, along with organizational trends such as globalization,
consolidations, strategic partnerships, and greater than ever governmental and
regulatory reporting requirements for employees. That being the case, today’s HR
professionals rely heavily on HRIS to fulfill their job functions, even the most elementary
ones. Therefore, from the administrative perspective, by providing powerful computing
capabilities, HRIS are changing and improving procedures and processes that were
carried out less efficiently before, such as regulatory reporting and compliance, payroll,
pension, benefit administration, etc. (Hendrickson, 2003). Moreover, using advanced
HRIS often leads to the provision of timely and quick access to information, the ability to
produce a greater number and variety of HR-related reports, and reducing costs (Ngai
and Wat, 2006). Finally, the accuracy of the HR data has significantly improved as a
result of using ESS, as fewer transcription errors occur when employees directly access
or change personal details in the HRIS (Kovach et al., 2002).
More recently, there is growing awareness of the strategic advantages involved in
the using of HRIS. First, as noted before, the automation of routine transactions
provides HR professionals with time to perform strategic functions related to the
human capital (Kovach et al., 2002). Second, HRIS allow the firm to be proactive in HR
planning, by giving managers a constant flow of employee information (Berger et al.,
1986). Examples of reports that can be regularly generated by HRIS which, in turn,
enables more strategic planning and knowledge management for HR, are new hires per
year, transfer per year, turnover reports, salary comparisons, insurance coverage
calculations, and more. Third, since HRIS can significantly improve the way employees
and managers communicate with each other through various communication channels,
this improves the flow of information and expertise throughout the organization,
thereby enhancing the firms’ strategic capabilities (Lengnick-Hall and Moritz, 2003).
Finally, as noted by Mayfield et al. (2003), successful HRIS support the planning
and implementation of managerial key processes in the organization, such as
executive decision making, technology selection, interdepartmental integration, and
organizational reporting structures. By doing so, HR can potentially become more
actively involved in setting and executing corporate strategy. An example of this type of
strategic use of HRIS in the hospitality industry was noted by Wagner (2002), who
described the labor management system installed at the Loews Hotels, which assists in
budgeting, forecasting and scheduling decision making related to the employees. The
features of the HRIS used by Loews include, among others, forecasting recruitment and
outplacement, weekly labor prediction of required hours, and reports showing actual
work hours compared to standards/required hours, all of which enable efficient
staff-related decisions in real time. Although this might be beneficial to other sectors as
well, the ability for more accurately forecasting of changes in the workforce is highly
relevant to the hospitality industry, which is characterized by an exceptionally high Human resource
turnover rate. In addition, advanced HRIS, as in the case of Loews Hotels, enable information
consistency in the messages that are given to different branches of the same corporation.
This also has the potential of being greatly beneficial for hospitality chains, which are systems
characterized by a wide geographical diffusion of their branches.
Interestingly, Targowski and Deshpandé (2001) noted that HR professionals can
currently use HRIS to evaluate their own business performance, e.g. by calculating 35
return on training investments, turnover costs, and human-value added. These
calculations (when they indicate HR’s positive contribution) can be used to provide
evidence to the executive management that HR is a legitimate strategic partner and is
crucial for achieving organizational goals.

Challenges of HRIS
Although HRIS can provide both administrative and strategic advantages, it should be
noted from the onset that they are usually expensive systems to purchase and
implement. Designing and implementing customized HRIS, adapted to the specific needs
of the organization, will significantly enhance its functionality, but will result in
increased software and hardware costs, as well as time-to-deployment (Hendrickson,
2003). Additionally, as noted by Fox (1998), the initial costs of developing such HRIS are
high, while the implementation process can last between three to nine months, and
usually requires the organization to stick with the system for at least eight years.
Although such tailored-HRIS can improve HR staff leverage and help achieve ROI in a
few years (HR Focus, 2004), Lengnick-Hall and Moritz (2003) warned that while the
relevant costs are usually known, it is more difficult to quantify all the intangible
benefits derived from HRIS.
In order to reduce the costs of HRIS, an organization can purchase off-the-shelf
applications composed of HR database programs, aimed at meeting the general needs
of HR functions (Berger et al., 1986). Yet, naturally, the effectiveness of such HRIS will
depend on the extent to which they meet the specific needs of the organization. In any
case, both tailored-made and off-the-shelf HRIS today involve additional costs, derived
from the process of implementing e-HR. This process requires the costly provision of
personal computers and internet connections for all employees, both at work and at
home (Lengnick-Hall and Moritz, 2003). Indeed, several studies indicate that the high
costs, often accompanied with a lack of top-management commitment toward ensuring
sufficient financial support, are the greatest barriers to the implementation of HRIS
(Ngai and Wat, 2006). These findings point to the vital need of the HR function to
provide evidence of the effectiveness of HRIS, for the purpose of attaining the executive
management support for the change.
Nevertheless, for a successful implementation of HRIS, it is no less important to
obtain the support of managers and employees in the organization. Although modern
HRIS offer clear advantages to managers, through the use of MSS, for better
management of their staff, the implementation of such systems is likely to be followed by
a certain level of resentment on the part of the managers. Since MSS transfer the
responsibility of performing employee HR-related transactions from the HR staff to the
direct managers, many of them are frustrated since they feel that additional
administrative tasks are being imposed on them (Roberts, 2004). In addition, convincing
employees to use ESS also calls for organizational efforts, as time is required for them to
WHATT adopt and adapt to the new system (Kovach et al., 2002). As a result, effective
2,1 implementations of HRIS require a parallel process of change management, in which
the changes, their advantages and meanings are effectively explained throughout the
organization. The managers should be involved early in the process, and be fully
informed about the benefits of using MSS in granting more autonomy at work
(e.g. employee reports compiled by the employees themselves) and in making better
36 decisions regarding the workforce. Employees should also receive support in adjusting
to the HRIS, and have sufficient time to adjust to it. Indeed, the magazine HR Focus
(2004) reported that the resources invested in change management while implementing
HRIS are constantly increasing.
Another relatively common problem, concerning both the implementation and the
flowing management of HRIS, is the question of who is in charge of the system. Since the
successful development of HRIS requires the input of both the IT and the HR
departments, it is not uncommon for disputes over areas of responsibility to break out
between these departments. Yet, Roberts (1999) found that HRIS practitioners agree
that, despite the recognition of the vital role of IT in the process, the control over HRIS
should be in the hands of HR. In order to avoid situations where HRIS is adapted to the IT
capabilities, and not vice versa; HR should be responsible for the code structure, table
maintenance, security systems, and the data itself, while the IT role is to deliver
user-friendly and comfortable technological tools to ensure the usefulness of the system.
Other territorial conflicts around HRIS may arise when departments feel that the system
expropriates some of its authorities; for example, the payroll department might resist
HRIS that combines payroll functions. A possible solution to such a problem can be the
establishment of cross-functional teams that run HRIS projects (Targowski and
Deshpandé, 2001), which will aim to balance the interests and needs of the various
departments affected by HRIS.
Finally, as was broadly discussed by Hubbard et al. (1998), the implementation of
HRIS raises both ethical and legal issues that need to be addressed by the organization.
First, the use of relational database technology provides access to more detailed
employee information than ever before. This situation illustrates the growing
importance of ensuring security measures to protect confidential data, such as medical
records, etc. Second, HRIS usually contain private information on the employees, while
the access to this information is often allowed to employees outside HR, as well. As a
result, some employees feel that their private lives are not protected adequately. Yet,
today organization has various tools for securing the HRIS, including strict regulations
regarding who has access to personnel records, using “secure cards” that continuously
generate new passwords, having firewalls to protect the HRIS from unauthorized
access, and more (Targowski and Deshpandé, 2001).

Technology infusion across HR functions

Recruitment
The hospitality industry is characterized by a higher turnover rate than other sectors of the
economy (Baum, 2007; Bonn and Forbringer, 1992). It is one of the critical challenges
the industry is faced with, as excessive turnover significantly increases costs and reduces
the quality of the service delivered (Iverson and Deery, 1997). Consequently, there is a
growing recognition of the importance of the recruitment function, whose main role is to
attract capable employees suited to the hospitality industry culture and characteristics
(long work hours, few days off, non-standard working conditions, spending long periods Human resource
of time in a relatively restricted space, relatively low wages, and a problematic image; information
Martin et al., 2006; Raub and Streit, 2006). For example, Brymer and Singh (2004) found in
interviews with hotel general managers in the USA, that they expect recruitment and systems
retention issues will dominate HR management in the near future.
Traditionally, HR in organizations has utilized low-tech methods in recruitment.
Common dominant recruitment methods in the hospitality industry – which are not 37
inherently different from other sectors – include referrals from existing staff,
government agencies, ads in the local press, unsolicited correspondence, and educational
institutions, among others (Lockyer and Scholarios, 2004). Nevertheless, currently there
is evidence of a growing trend in the use of IT in recruiting job candidates, while the
dominant IT method in this regard is unanimously the internet (Kinder, 2000). Hausdorf
and Duncan (2004, p. 325) mentioned that “Internet recruitment involves the use of the
Internet as a channel through which jobs are posted and information is provided with
respect to the application process,” which can be done from a company website, or by
using a professional employment website (see, e.g. www.hcareers.com for
hospitality-related internet recruiters). From their extensive review, Singh and Finn
(2003) concluded that although the aforementioned low-tech recruitment methods are
still widespread, more innovative methods, including the internet, are on the rise
(usually in addition to more traditional methods).
Internet recruiting benefits both the organization and the job seeker’s perspectives
(Pearce and Tuten, 2001; Singh and Finn, 2003). The benefits to the recruiters include:
.
Cost savings, as it is significantly cheaper to advertise on the internet than in a
newspaper. Compared to the use of professional search firms (also known as
headhunters) the amounts saved are even higher.
.
Recruiters generally receive more applications, which results in a greater pool of
candidates from which to choose.
.
Recruiters may receive applications faster, often even on the same day a position
is announced.
. Improved ability to target a specific audience, thereby decreasing future
turnover.
.
Time saving, as more unqualified or unfit applicants can be eliminated, through
online contact, in the initial phases of the recruitment process.

From the point of view of the job seeker, by using technology he/she can now search a
wide variety of positions by specific criteria, such as location, position type, position
requirements, and salary. Indeed, initial indications show that job seekers react
positively to online recruitment (Anderson, 2003), although more studies are needed on
this issue.
On the other hand, internet recruitment is not without limitations. Pearce and Tuten
(2001) mentioned that online recruitment only provides a pool of active job seekers, while
often the best candidates are actually passive (do not look for another job, but might be
willing to consider a job offer if contacted). In addition, poorly designed websites might
damage the organization’s image, which can result in the loss of desirable candidates.
Nevertheless, the biggest challenge of internet recruitment is its potentially adverse
impact. Singh and Finn (2003) warned that, according to various estimations, blacks,
WHATT Hispanics, Native Americans and women have the least access to computers and the
2,1 internet – compared with Caucasians and Asians – which puts them in inferior position
as job seekers, from the onset. Since internet recruitment might generate legal problems
for organizations, as employment laws prohibit the use of recruitment systems that
disproportionably affect minorities, they recommend that organizations combine their
advertising efforts with more traditional recruitment methods, as well as the use of the
38 career sections in minorities-related websites.

Selection
Once the recruitment process has ensured a large pool of applicants to choose from, the
next phase is to select the most suitable candidates. Although the success of service
organizations relies heavily on its ability to select effective employees, Lockyer and
Scholarios (2004) report that there is little evidence of systematic selection practice in the
hospitality industry. As in the case of recruitment, hospitality organizations mostly use
low-tech methods in their selection process. Among the common selection methods in the
hospitality industry are application forms, curriculum vitae, reference checks, structured
and unstructured one-on-one interviews, personal recommendations, background records,
cognitive/ability tests, personality tests, interest tests, and graphology, among others
(MacHatton et al., 1997; Martin and Groves, 2002; Paraskevas, 2000). Traditionally, these
selection methods involve the visit of the candidate to the organization or, to a lesser
degree, to an assessment center, for interviewing, pen-and-paper testing, or situational
testing, including group dynamics. Yet, in recent years there is a growing use of
technology in the selection process, which offers clear advantages but also arouses
concerns.
The use of advanced technology allows the selection process to complete the
widespread online recruitment methods. As noted by Targowski and Deshpandé (2001),
resumes sent through the internet and by e-mail can be scanned for keywords
identifying required knowledge, skills, competence, and experience, thus reducing
manual procession and possible errors. In addition, what seems to be highly relevant to
the hospitality industry, background checks are also available online, which enables
greater accuracy and efficiency in selecting skilled and honest employees (DeCotiis,
2006; Waters, 2001). Kooser (2007) reports that hospitality organizations have a wide
variety of online background checks to choose from, including criminal information,
driving records, lawsuits, credit history, past employment, education verification, drug
screening, and more.
Nevertheless, the main impact of technology in selection procedures is in relation
to employee interviewing and testing. While the use of telephone interviews
and computer-based testing procedures are well established in many organizations,
more sophisticated technological platforms are available today to assist in employee
selection (Kwiatkowski, 2003). Anderson (2003) broadly described the prominent
technology-based selection procedures, along with an assessment of their acceptance
and effectiveness. Internet-based testing has been gaining popularity in past years, as it
holds clear advantages both for the organization (cost savings, more efficient
administration) and for the candidate (no physical presence in the organization is
required, freedom to choose the time of the test). Interestingly, the aforementioned
adverse effect of online recruitment seems to disappear in the case of internet-based
testing, as it blurs minority-majority group differences and subsequently reduces
recruiter discrimination. This feature can greatly help the tourism and hospitality Human resource
organizations to meet diversity challenges the industry is faced with (Baum, 2007; information
Woods, 1999).
Testing candidates, whether internet-based or not, can include computerized job systems
simulations and situational judgment tests, allowing the examination of the candidates’
reaction to common work situations. In continuation to this approach, although it is still
less common (but has great potential), is the use of virtual reality technology (VRT) in 39
selection procedures. Aguinis et al. (2001, p. 70) explained that VRT “enables users to
view or ‘immerse’ themselves in an alternative world,” through the use of real-time
computer graphics. They further advocate the use of VRT in selection, mainly because it
enables the situational testing of candidates by simulating the actual work environment.
Finally, the use of technology in employment interviews is also on the rise, especially
through telephone and videoconferences. Nevertheless, Anderson (2003) reported that
candidates still prefer face-to-face interviews over the more technological-based options.

Training
Adequate training is essential in providing quality services, yet traditionally hospitality
organizations have not invested adequate resources in training their employees
(Conrade et al., 1994). Most of the knowledge and skills of hospitality employees is
transferred through on-the-job training, which represents an informal, inconsistent, and
incomplete training method (Woods, 1997). However, as noted by Collins (2004), delivery
of organized and structured training programs in the hospitality industry is a constant
challenge, mainly because of the size and geographical dispersion of the workforce, as
well as the extensive resources – financial, work, and time – needed to establish
in-house training programs. Yet innovative training methods that incorporate new
technology have begun to trickle into hospitality organizations and to replace the more
traditional methods. Although still not widespread within the hospitality industry
(Harris and Bonn, 2000; Perdue et al., 2002), technology-based training methods have the
potential to address many of the training challenges in the industry.
Although technology-based training methods have been available for a long time, the
hospitality industry has usually lagged behind other sectors in adopting them. For
example, modern computer-based multimedia can enhance training by providing
electronically controlled graphics, animation, text, and audio; yet, Harris (1995) found
limited usage of it among hospitality firms, the main reasons being a lack of time, high
costs, the short lifespan of computer technology, and a lack of managerial commitment.
Nevertheless, Collins (2004) reports on the growing evidence of the incorporation of
multimedia training in hospitality, which is expected to continue in the future. He noted,
however, that such methods are usually delivered through videotapes and CD-ROMs,
which are constrained by storage capacity, and do not allow quick responses and
adaptation to changes. Consequently, many organizations have begun to turn training
courses into internet-based courses, which holds many benefits to hospitality
organizations. For example, Clark (2005) reported that Hilton International has
provided more than 1,700 staff with its e-learning program, which is accessible to them
through the corporate network. Many casinos and restaurant operators, such as
Delaware and Darden Restaurants, have also implemented online training programs
(Harris, 2006; Liddle, 2003).
WHATT Web-based training (WBT) can deliver courses nationwide or worldwide at all time
2,1 zones to any connected computer, and is easy to update and monitor. Some of the
prominent advantages of using WBT in hospitality are as follows:
.
WBT allows the transfer of consistent training material to a wide range of
employees and properties, often in different countries.
.
Although the design costs of WBT are higher compared to classroom training,
40 the delivery costs are significantly lower, since the rental costs of training
facilities are spared.
.
Learners can access training materials at their convenience, 24 hours a day,
seven days a week. This is a substantial advantage for an industry characterized
by particularly irregular work hours.
.
WBT allows for fast, easy, and less expensive updating of training materials.
.
WBT can be beneficial to organizations that are experiencing downsizing or
adopting flattened management structures, by bridging the gap between
managers and employees (Hu et al., 2003).

Currently, there is a growing recognition of the important part WBT has in facilitating
the important concept of employability. Fugate et al. (2004, p. 16) stated that
employability is:
[. . .] a form of work specific active adaptability that enables workers to identify and realize
career opportunities. As such, employability facilitates the movement between jobs, both
within and between organizations [. . .]. Although employability does not ensure actual
employment; we contend that it enhances an individual’s likelihood of gaining employment.
In the widespread situation in which organizations can no longer guarantee
employment for life, managers have the responsibility to ensure a reasonable level of
employability for their employees, by making them responsible for their own
achievements and professional development. By offering employees a wide variety of
courses and training content available online at any time through the ESS, the
organization allows its employees to actively contribute to their own employability
(Gascó et al., 2004).
Naturally, WBT has its limitations, as elaborated by Hu et al. (2003):
.
many employees suffer from computer illiteracy, when they do not possess
enough knowledge (for example, to download and install the required plug-ins) to
simply access the course;
.
very high initial costs to the organization;
.
limited bandwidth occasionally causes slower performance for sound, video, and
extensive graphics; and
.
lost of human contact might result in anxiety among some employees,
misinterpretations, and ambiguities.

In addition, WBT is controversial for teaching soft skills, such as leadership, service
quality, and dealing with difficult customers. A recent study conducted among
corporate trainers in the foodservice sector shows that the vast majority of them still
prefer live, one-on-one training (Berta, 2007). For these reasons, many recommend an
approach combining both traditional and online training, for example by offering Human resource
follow-up meetings after online courses, and providing constant support to the information
e-learners (Harris, 2006).
systems
Performance evaluation and compensation
As part of the move from administrative to strategic role for the HR department, it is well
accepted today that it holds the responsibility for ensuring, measuring, and maintaining 41
the quality of the human capital in the organization. To avoid motivational, ethical, and
legal problems often associated with measuring performance, a structured appraisal
system needs to be established, to ensure a lawful, fair, defensible, and accurate system
(Singh et al., 2007). Effective performance evaluation plays a critical role in the
successful implementation of organizational strategy and in gaining a competitive
advantage. Therefore, in addition to important HR decisions that greatly rely on
performance evaluation, such as promotions, outplacements, dismissals, many
organizations link performance to compensations and rewards. As noted by Bowley
and Link (2005), a performance-based compensation plan, often known as
“pay-per-performance,” should reflect the organization’s goals. For example, an
employee might be rewarded on the acquisition of new customers, or on increased sales
to existing ones, based on the strategic objectives of the company.
An effective performance appraisal calls for a comprehensive system that will
integrate the relevant functions in evaluating and tracking employee performance.
Thus, the traditional methods, based on a disconnected blend of discrete applications,
spreadsheet programs and paper-based systems, to communicate goals, track employee
performance and manage compensation, are insufficient in the contemporary challenges
of linking performance evaluation to organizational strategy (Bowley and Link, 2005).
Yet, although sophisticated HRIS were developed to meet these contemporary
challenges, Ensher et al. (2002) found little effect of HRIS on the process of performance
management among HR executives, who still rely on paper-and-pencil administration
and hard copy documentation of employee evaluation. Nevertheless, in recent years,
there has been an increasing infusion of technology in performance appraisals, a trend
which has substantial consequences for organizations.
According to Miller (2003), applications of technology in management appraisal can
be divided to two main clusters. First, the more conventional form is performance
evaluation through computer performance monitoring (CPM). CPM seems to be
appealing mainly in terms of capturing performance quantity, as it facilitates the
measurement of objective performance criteria, such as attendance, work speed, work
completed, number of times and length of time a workstation is left inactive, error
rates, time spent on different tasks, etc. CPM has clear advantages, the most prominent
being:
.
no physical presence of supervisors is required to provide detailed feedback to
the employees;
.
CPM greatly expands the amount and frequency of feedback provided to the
employees; and
.
CPM can improve perception and sense of control and fairness among
employees, as it evaluates on the basis of objective standards, rather than the
subjective assessment of managers (Alder and Ambrose, 2005).
WHATT Nevertheless, CPM has drawbacks that are highly relevant to a service industry such
2,1 as the hospitality industry (Miller, 2003). The main concern that CPM raises is that
reliance only on quantitative criteria is likely to lead to the neglect of more qualitative
aspects of performance. For example, a front-desk agent in a hotel might perform
exceptionally well in dealing with difficult customers, yet the CPM might not capture
this fact since more time is needed when handling such customers. Thus, in this
42 example it is vital to examine not only the number of service encounters, but also their
quality and difficulty. In addition, feedback provided by CPM is limited since it does
not address how to interpret the outcome measures, and how to enhance future
performance. Consequently, an effective CPM must be followed by the establishment of
an employee development plan, designed in collaboration with his/her supervisor.
The second application of technology in appraisal management is online evaluation
and appraisal software (Miller, 2003). In contrast to the aforementioned CPM, in these
cases technology facilitates delivering performance feedback, rather than generating the
actual evaluation outcome. By integrating performance evaluation into the organization
HRIS, managers can easily pull together relevant employee information, including
training appraisal and past performance, thus more easily identifying high performers,
competency gaps, return on training, and future training needs (Targowski and
Deshpandé, 2001). Miller (2003) added that online evaluation smoothes the
implementation of 3608 feedback, allows the frequent evaluation of more employees
and provides a better link between training and evaluation. Regarding the last point,
HRIS facilitates the automatic monitoring and documentation of the training progress,
which can be used by management in decisions such as compensation and promotion
(Hu et al., 2003).
In addition, evaluation software packages can be used as stand-alone applications
or as an integral part of the organization’s HRIS, which offers computerized standard
evaluation forms. The use of user-friendly software in evaluating employees allows
managers to focus more on the contents of the evaluation, rather than on the forms.
Consequently, the appraisal process becomes less tedious even to managers who are
less experienced in performance evaluation. In addition, the effectiveness, consistency,
and speed of the evaluation process also have the potential to increase dramatically
(Ensher et al., 2002).

Payroll, benefits, and pension administration

Automating the payroll function was one of the earliest expressions of technology
integration in HR operations (Berger et al., 1986). In contrast to the days when the
payroll process was labor and paper intensive, technology has substantially helped it
adapt to the needs of modern organizations. As noted by Danilewicz (1997, p. 6):
[. . .] every payroll department must generate, receive, and process an incredible amount of
information to achieve its goal of timely and accurate payments to employees. And this
information must be produced faster than many of us ever dreamed possible.
Therefore, the use of computer software programs allows better coping with these
challenges, while saving time and money. As mentioned above, today more
organizations provide ESS interfaces to their employees, which in many cases include
the ability to carry out payroll-related transactions by themselves, such as direct
deposits, changing voluntary deductions, and filling out forms. In addition, through ESS
the employees can also self-manage their benefit plans, such as healthcare, disability, Human resource
savings, as well as retirement and pension plans. While the organization enjoys the information
reduced need for complex bureaucracy, the employees enjoy better control and enhanced
anonymity, as there is no need for dealing directly with HR staff on personal financial systems
matters.
Since for small and medium size organizations self-managing the payroll function can
be expensive and inefficient, many of them choose to outsource it to professional online 43
payroll services. The advantages of using online payroll, besides its relatively reasonable
costs, include ensuring the compliance with governmental regulatory and deadlines, the
ability to retrieve employee and client data from any location, and enhancing the flexibility
of managing the payroll (Sanghvi, 2007). Yet the issue of online security remains a central
obstacle in using online payroll services, which requires the latter to adopt advanced
technologies in securing their clients’ information. Many employees are still hesitant to use
online payroll and to benefit from self-service applications, mainly out of security concerns
(Danilewicz, 1997). As with other HR functions reviewed above, investing in change
management is highly relevant in this regard.

Labor relations and outplacement

The use of HRIS has significant impact on the current affairs between the management
and the employees, as well as the characteristics and the environment of the
contemporary workplace. From the administrative perspective, through the HRIS the
managers and the employees have access to relevant information on employee work
rules, policies, and regulations on issues like privacy, illegal discrimination, and work
diversity. In addition, the HRIS can assist discharged or displaced employees in finding
alternative employment, by providing links to career counselors, training programs,
and information, all of which are required for a successful and effective job search
(Targowski and Deshpandé, 2001). The HRIS can also offer online surveys and
“suggestion box,” for allowing employees express their satisfaction or dissatisfaction
from the work environment, thus keeping the management better informed about the
atmosphere among the employees.
Nevertheless, technology has changed the nature of the workplace and
employer-employee relations more fundamentally than just providing more
accessible information. Townsend and Bennett (2003) described a number of
changes in the workers’ environment as a result of the increasing use of IT:
.
workers are better informed, therefore are less informational disadvantaged in
their relations with the management than what it used to be;
.
workers are enjoying better mobility at the current time, as the use of the
internet allows them to identify and apply for job positions virtually anywhere in
the world; and
.
workers now have a considerable voice, as modern technology allows better
connections with the management, as well as enhanced capabilities to organize
and develop a collective response to problems in the workplace.

Conclusions
The literature clearly demonstrates that HRIS technology has evolved from
administrative databases into holistic communication systems that resemble those
WHATT used within e-commerce programs. Traditional e-commerce technology provides
2,1 product/service, promotion, placement, and pricing strategic initiatives to external
constituents through the use of extranet platforms merged with intranets (for instance,
customer relationship management). HRIS technology provides the same initiatives
through the use of intranets merged with extranet platforms (for example, recruitment).
Thus, HRIS technology may be considered to represent internal e-commerce systems,
44 which are crucial to the alignment of HR functions within strategic initiatives aimed at
sustainable competitive advantages. Portions of the literature identify existing practices
of HRIS implementation within existing hospitality firms. The evidence from past and
recent studies identifies actual proactive HRIS practices on an international level that
appear to be achieving successful outcomes. Nevertheless, numerous challenges to the
development and implementation of such systems are also noted in the literature.
The evolution of HRIS platforms provides a range of tools for use by enhancing
employee-employer relationships. The full service range of HRIS functions brings
human capital closer to the strategic direction of the organization. Just as e-commerce
systems should be designed based on the strategic direction of the firm, the same should
be true for HRIS development. If this were to be the case, there would be alignment
within the strategic initiatives for both functions. However, the technology is merely a
tool that may enhance strategic alignment. It is the corporate leadership that must create
strategic planning, direction, and implementation that includes all functions through a
commitment to alignment of all aspects of the organization. Portions of the
aforementioned literature support this contention. There is also evidence from the
literature that a disengagement of the HR function from strategic initiatives exist in
many hospitality enterprises.
It is common knowledge that the hospitality industry is labor intensive with many
points of intimate service interactions of long duration. HR will produce sustainable
competitive advantages for those firms that include the HR function in a united
strategic direction. Many hospitality firms conduct business in various geographic
locations. Recent trends include consolidated partnerships among various firms. This
presents a challenge to strategic development aimed at consistency of guest/client
experiences that are in line with a single strategic direction. The existence of this
scenario argued for the alignment of human capital strategic inclusion within the
overall objectives of the firm. The literature identifies the advantages of aligned human
capital as a means to accomplishing sustainable competitive advantage for enterprises.
For these reasons, it is imperative for practitioners to be familiar with the recent
developments within HRIS systems. Also, academics should be familiar with the
literature for the purpose of training future practitioners in features of HRIS platforms
and their relationships to creating strategic alignment within organizations. There is
room for much future research in this area for the hospitality industry.
One aspect of future studies would be for researchers to investigate the scope of
HRIS usage within hospitality HR units. An appropriate approach to this end would be
the development of empirical studies representing various international locations. It
would be appropriate to develop studies concerning best practices among hospitality
organizations once a body of empirical research is established. More critically, studies
should be directed toward investigating the nature of HRIS usage in hospitality
organizations, especially the degree of utilization of HRIS as a strategic tool. It would
also be worthwhile to evaluate the users’ perceptions regarding the benefits and
challenges of HRIS, and whether the system is recognized throughout an organization Human resource
as an internal e-commerce that actively promotes the company’s policies and plans. information
An additional research approach would be to correlate HRIS implementation within
firms to factors such as corporate performance, employee satisfaction, and other systems
variables. Other investigations may consider alternative approaches for small-to-medium
firms that have outsourced HRIS applications from application service providers to
overcome barriers concerning limited in-house resources for such initiatives. 45
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