Tribhuvan University

Institute of Science and Technology

“Human Resource Management System”

A PROPOSAL REPORT

Submitted to
Department of Computer Science & Information Technology
Lumbini City College

In Partial Fulfillment of the Requirements for the Bachelors of

Science in Computer Science and Information Technology
(BSc. CSIT)

Submitted By:

Durlav Parajuli (T.U. Reg. No: 5-2-1134-11-2020)

Ankit Neupane (T.U. Reg. No: 5-2-1134-06-2020)
Angad Thapa (T.U. Reg. No: 5-2-1134-04-2020)

Under the Supervision of

Mr. Suraj Kumar Khatri
Table of Contents
1. Introduction....................................................................................................................2
2. Problem Statement.........................................................................................................2
3. Objective........................................................................................................................3
4. Methodology..................................................................................................................4
4.1 Requirement Identification.....................................................................................4
4.1.1 Functional Requirement................................................................................4
4.1.2 Non-Functional Requirement........................................................................5
4.2 Study of Existing System.......................................................................................5
4.3 Scope......................................................................................................................6
4.4 Literature Review...................................................................................................6
4.5 Requirement Analysis............................................................................................7
4.6 Feasibility Study.....................................................................................................7
4.6.1 Technical Feasibility.....................................................................................8
4.6.2 Operational Feasibility..................................................................................8
4.6.3 Economic Feasibility.....................................................................................8
4.7 System Requirement Specifications.......................................................................8
4.8 User Interface Design.............................................................................................9
4.9 High-Level Design of System................................................................................9
4.9.1 Methodology of the Proposed System..........................................................9
4.9.2 Working Mechanism of Proposed System..................................................11
4.10 Description of Algorithms...................................................................................11
5. Activity Diagram..........................................................................................................14
6. Use Case Diagram........................................................................................................15
7. Gantt Chart...................................................................................................................16
8. Expected Outcome.......................................................................................................17
9. Conclusion....................................................................................................................18
10. References....................................................................................................................19

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Introduction
HRMS is a software that combines a number of systems and processes to ensure the easy
management of human resources, business processes and data. It is used by businesses to
combine a number of necessary HR functions, such as storing employee data, managing
payroll, recruitment, benefits administration, rewards, time and attendance, employee
performance management, and tracking competency and training records.

HRMS can lead to error free, secure, reliable and fast management systems. It can assist
users to concentrate on their activities rather than on record keeping. Thus, it will help
organizations in better utilization of resources. The organization can maintain computerized
records without redundant entries. That means we don’t have to get distracted by the
information that is not relevant, while being able to reach the information.

Problem Statement
The HRMS project aims to address the following key issues:
● Poor Data Storage: Current data storage methods, relying on filing cabinets, are
prone to human error and vulnerable to data theft or loss. A secure and organized
digital storage system is necessary to ensure accurate and reliable employee data.
● Slow and Inefficient Processes: Manual paper-based recording keeping and
spreadsheet usage hinder the efficiency of HR operations, compromising security and
making it challenging to maintain accurate employee records.
● Inefficiency: Outdated and fragmented HR systems lead to manual processing of
employee data.
● Performance Tracking: Difficulty in tracking and managing employee performance
metrics.
● System Integration: Lack of integration between recruitment, payroll, and benefits
management.
● Administrative Burden: Increased administrative workload for HR staff.
● Employee Service Delays: Delays in employees accessing information and services

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Objective
A Human Resource Management System (HRMS) is a comprehensive software platform
designed to streamline and automate various HR functions, such as employee data
management, recruitment, performance evaluations, training, payroll, and compliance. By
centralizing these activities, an HRMS enhances efficiency, reduces administrative costs,
and improves the overall employee experience. It provides valuable data insights for
informed decision-making and strategic workforce planning, while also promoting
transparency and self-service for employees. In today's competitive landscape,
implementing an HRMS is crucial for optimizing human resource processes, retaining top
talent, and maintaining a competitive edge, ultimately leading to greater organizational
efficiency and sustainability. The key objectives of the HRMS are listed below:
● Strategic Workforce Planning: Enable organizations to forecast and plan for future
workforce needs based on business goals and market trends. This ensures the right
talent is available at the right time, aligning human resources with organizational
strategy.
● Employee Development and Training: Provide tools for managing employee
development programs, tracking progress, and identifying training needs. This helps
in enhancing employee skills, job satisfaction, and overall productivity.
● Efficient Recruitment and Onboarding: Streamline the recruitment process, from
job posting to candidate selection, and facilitate smooth onboarding of new
employees. This reduces hiring time, improves candidate experience, and ensures new
hires are quickly integrated into the company.
● Performance Management: Offer a platform for setting performance goals,
conducting evaluations, and providing feedback. This promotes continuous
improvement, aligns individual performance with organizational objectives, and helps
in identifying high performers for advancement.
● Compliance and Record-Keeping: Ensure that the organization adheres to legal and
regulatory requirements related to employment, benefits, and workplace safety. This
reduces the risk of legal issues and maintains accurate, up-to-date employee records.
● Employee Self-Service: Provide employees with access to a self-service portal for
managing personal information, benefits, leave requests, and other HR-related tasks.
This increases transparency, empowers employees, and reduces administrative
workload for HR staff.

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Methodology
To implement a Human Resource Management System successfully, start by understanding
what features and improvements are needed through discussions with HR staff, managers,
and employees. Next, research and compare different HRMS options, test them out, and
evaluate costs to choose the most suitable one. With the right system selected, create a
detailed plan outlining goals, timelines, and resources required. Customize the HRMS to fit
your organization's specific needs and integrate it with existing systems to ensure seamless
data sharing. Transfer existing HR data to the new system, ensuring accuracy and
completeness. Train users, HR staff, managers, and employees on how to effectively use the
new system. Thoroughly test the HRMS to identify and resolve any issues before going live.
Once the system is launched, monitor its performance to address any immediate problems
and review how well it meets your objectives. Finally, maintain the system with regular
updates and security checks, and keep comprehensive documentation to support ongoing
use. This approach ensures a smooth transition and effective long-term operation of the
HRMS.

4.1 Requirement Identification

Requirement identification for a Human Resource Management System is a crucial step in
developing or implementing an HRMS to ensure it meets the needs of an organization.
Here's a structured approach to identify and document these requirements:

4.1.1 Functional Requirements

● Employee Records Management: Maintain detailed employee information (personal
details, job history, etc.).
● Recruitment and Onboarding: Manage job postings, application tracking, and
onboarding processes.
● Payroll Management: Process salaries, deductions, benefits, and tax calculations.
● Leave Management: Track and manage employee leave requests and balances.
● Performance Management: Set goals, conduct evaluations, and track performance
metrics.
● Training and Development: Manage employee training, development programs, and
certifications.

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4.1.2 Non-Functional Requirements
● Usability: The system should be user-friendly and easy to navigate.
● Performance: The system should handle a large number of users and data efficiently.
● Scalability: It should be able to grow with the organization.
● Security: Ensure data protection through authentication, authorization, and
encryption.
● Integration: Ability to integrate with other systems (e.g., accounting software, ERP
systems).

4.2 Study of the Existing System

The trend of automated payroll and workforce management processes began during the
1970s. Due to limited technology and mainframe computers, companies were still relying
on manual entry to conduct employee evaluation and to digitize reporting.
The first enterprise resource planning (ERP) system that integrated human resources
functions was SAP(R/2) (later to be replaced by R/3 and S/4hana), introduced in 1979. This
system gave users the possibility to combine corporate data in real time and regulate
processes from a single mainframe environment. Many of today's popular HR systems still
offer considerable ERP and payroll functionality.
The first completely HR-centered client-server system for the enterprise market
was Peoplesoft, released in 1987 and later bought by Oracle in 2005. Hosted and updated by
clients, PeopleSoft overtook the mainframe environment concept in popularity. Oracle has
also developed multiple similar BMP systems to automate corporate operations,
including Oracle Cloud HCM.
Beginning in the late 1990s, HR vendors started offering cloud-hosted HR services to make
this technology more accessible to small and remote teams. Instead of a client-server,
companies began using online accounts on web-based portals to access their employees'
performance. Mobile applications have also become more common.
HRIS and HRMS technologies have allowed HR professionals to shy away from their
traditional administrative work and have inserted them as strategic assets to the company.
For example, these roles include employee development, as well as analyzing the workforce
to target talent-rich areas [1].

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4.3 Scope
It helps collect perfect management in detail. In short time collection will be short, sensible
and simple. It will help a person to know the management of past years perfectly and
vividly. It also helps in current work relative to HRMS. It also reduces the cost of collecting
management and collecting procedures will go on smoothly.
Ours project aims at Business Process Automation
● In a computer system, the person has to fill various forms and numbers of copies of
forms that can be easily generated at a time.
● To assist staff in capturing the effort spent in their respective working areas.
● To utilize the resources in an effective manner by increasing their productivity
through automation.
● This system generates types of information that can be used for various purposes.
● To satisfy user requirements.
● Be easy to understand and operate.
● Have good user interaction.
● Delivered on schedule with budget.
● Be expandable.

4.4 Literature Review

The evolution of Human Resource Management Systems (HRMS) has transformed HR
from administrative tasks to strategic functions, integrating technology to enhance
efficiency and decision-making. The introduction of Enterprise Resource Planning (ERP)
systems in the 1990s was a significant milestone, enabling organizations to integrate HR
functions with other business processes (Kavanagh & Thite, 2015). Key components of
modern HRMS include recruitment and onboarding, payroll and benefits administration,
performance management, and employee self-service. Automated recruitment processes
have been shown to reduce time-to-hire and improve candidate experience (Stone et al.,
2015), while payroll automation reduces errors and administrative burdens (Ngai & Wat,
2006). Performance management modules enhance employee engagement through real-time
feedback (Pulakos et al., 2019), and self-service portals improve employee autonomy
(Marler & Fisher, 2013.

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The adoption of HRMS offers numerous benefits, including increased efficiency, data-
driven decision-making, and improved employee experience. Organizations using HRMS
report a 20-30% increase in HR efficiency (Ball, 2001), and real-time analytics improve
workforce planning (Fitz-enz, 2010). HRMS also helps organizations stay compliant with
labor laws, reducing legal risks (Johnson & Gueutal, 2011). However, implementing an
HRMS can be costly and complex, especially for SMEs (Bondarouk & Ruël, 2009), and
requires effective change management to address resistance (Vakola & Nikolaou, 2005).
Data security remains a critical concern, necessitating robust security measures (Stone et al.,
2015) [2].

4.5 Requirement Analysis

Analyze the gathered requirements to ensure they are complete, consistent and feasible. The
requirement analysis involves validating and prioritizing the functional and non-functional
requirements to ensure they align with business objectives and are feasible. Key
stakeholders will review it and confirm these requirements through meeting and approvals.
Prioritization will be on business value, feasibility, dependencies and stakeholders’
importance. Detailed specification will be developed including use case, system
architecture, interface, performance and security requirements. This ensures the system
meets user needs and integrates seamlessly with other systems.

4.6 Feasibility Study

After doing the HRMS, studying and analyzing all existing functions of the system, the next
task is checking the feasibility of the project.
Feasibility study includes all possible ways of finding solutions to given problems. It should
mainly satisfy user requirements and should be flexible enough so when we want to change
in future based on upcoming requirements.
4.6.1 Economic Feasibility
This is a very important aspect to consider while developing a project.
● Cost Savings Through Automation.
● Enhanced Productivity.
● Scalability and Flexibility.

4.6.2 Technical Feasibility

This is the study of function, performance and constraint that may affect the ability to
achieve an acceptable system.

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 ● Integration Capabilities.
● User Interface and Usability.
● System Performance and Reliability.

4.6.3 Operational Feasibility

The system should be fully GUI based that is very user friendly and input should be self-
explanatory by layman’s terms.
● User Adoption
● Support and Training
● Data Security

4.7 System Requirement Specifications

The proposed system has the following requirements:
● System needs to help internal staff to keep information about designation and find
them.
● System needs to maintain quality records.
● System needs to keep records of the employee.
● System needs to update and delete records.
● System also needs a search area.
● It needs a security system to protect data.

4.8 User Interface Design

UI design is concerned with dialogue between a user and computer. It is concerned with
everything starting the system or logging into the system. The overall flow of screen and
messages is called Dialogue.
Following are the guidelines for UI design:
● The system user should be aware of what to do next.
● The screen should be formatted so that various instructions, information and messages
always appear in the same general area.
● Messages, instructions and information should appear long enough to allow the user
to read them.
● A user should not be allowed to proceed without correcting an error.
● The system user should never get an operating system message or fatal error.

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4.9 High-Level Design of System
4.9.1 Methodology of the Proposed System

The proposed Human Resource Management System (HRMS) will follow the Waterfall
development methodology. This sequential design process involves clearly defined phases:
requirement analysis, system design, implementation, testing, deployment, and
maintenance. Each phase must be completed before the next phase begins, ensuring a
structured and disciplined approach to software development. This methodology is well-
suited for projects with well-understood requirements and allows for thorough
documentation and rigorous testing.

Waterfall Model Phases:

● Requirement Analysis:
○ Gather and document all system requirements from stakeholders.

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 ○ Define functional and non-functional requirements clearly.
● System Design:
○ Create architectural designs and system specifications.
○ Define data models, user interfaces, and system workflows.
● Implementation:
○ Develop the system based on the design documents.
○ Code the frontend using Blade and the backend using Laravel, adhering to the
MVC principles.
● Testing:
○ Perform unit, integration, and system testing to ensure the system meets
requirements.
○ Identify and fix any defects or issues.
● Deployment:
○ Deploy the system to a production environment.
○ Ensure all components are configured correctly and the system is operational.
● Maintenance:
○ Provide ongoing support and maintenance for the system.
○ Implement updates and improvements as needed.

Key Practices:

● Documentation: Maintain detailed documentation at each phase for clarity and future
reference.
● Quality Assurance: Ensure each phase meets quality standards before moving to the
next phase.
● Stakeholder Involvement: Engage stakeholders throughout the process to validate
requirements and design decisions.
● Change Management: Manage changes to requirements and design through a
controlled process to avoid scope creep and ensure project stability.

4.9.2 Working Mechanism of Proposed System

Frontend (Blade):
● User Interface: Provides an intuitive interface for users to interact with the system.

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 ● User Actions: Users can log in, manage their profiles, view payroll and benefits
information, apply for leave, and access performance reviews.

Backend (Laravel):
● Business Logic: Handles the core functionality, including employee data
management, payroll processing, benefits administration, performance management,
and recruitment.
● MVC Architecture: Implements Laravel's full stack development principles,
ensuring a clear separation of concerns between the Model (data management), View
(user interface), and Controller (business logic).

Database (MySQL):
● Data Storage: Stores all inventory data, user information, transaction records, and
analytics.
● Data Retrieval: Efficiently retrieves data to support real-time tracking and reporting
for smooth operation.

4.10 Description of Algorithms

Performance Evaluation Algorithm
● Purpose: Assesses employee performance based on predefined criteria and metrics.
● How It Works: Uses algorithms such as weighted scoring or multi-criteria decision
analysis (MCDA) to evaluate employee performance against set goals and KPIs.
Aggregates scores from various performance indicators to provide a comprehensive
evaluation.
● Example: An algorithm calculates performance scores based on employee
achievements, peer reviews, and manager assessments, generating an overall
performance rating used for promotions and bonuses.
● Steps:
○ Define Criteria and KPIs: Identify performance indicators.
○ Assign Weights: Allocate importance to each criterion.
○ Collect Data: Gather performance data.
○ Normalize Data: Standardize the collected data.
○ Calculate Scores: Apply weights to normalized data.
○ Aggregate Scores: Sum weighted scores.

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 ○ Generate Rating: Categorize overall scores.
○ Review: Validate results with stakeholders.
○ Communicate: Provide feedback to employees.

Recruitment Matching Algorithm

● Purpose: Matches candidates with job openings based on their skills and
qualifications.
● How It Works: Utilizes techniques such as natural language processing (NLP) to
parse resumes and job descriptions, then applies similarity scoring or recommendation
algorithms to match candidates with suitable job roles.
● Example: The system analyzes a candidate's resume and compares it with job
requirements, providing a list of the best-fit candidates for each open position, thereby
streamlining the recruitment process.
● Steps:
○ Collect Data: Gather job descriptions and resumes.
○ Preprocess Data: Clean and standardize text data.
○ Extract Features: Use NLP to identify skills and qualifications.
○ Calculate Similarity: Compare resumes with job descriptions.
○ Rank Candidates: Order candidates by similarity scores.
○ Apply Filters: Refine list using additional criteria.
○ Generate Matches: List best-fit candidates.
○ Review: Managers review top matches.
○ Communicate: Contact shortlisted candidates.

Password Hashing Algorithm

● Purpose: Secures user passwords by converting them into a fixed-length

cryptographic hash, ensuring they are stored securely.
● How It Works: Applies a cryptographic hashing function, such as bcrypt, Argon2, or
SHA-256, to user passwords. Adds a unique salt to each password before hashing to
prevent dictionary and rainbow table attacks.
● Example: When a user creates a password, the system hashes the password with
bcrypt and stores the hash in the database. During login, the entered password is
hashed and compared to the stored hash for authentication.
● Steps:

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 ○ Select Hash Function: Choose bcrypt, Argon2, or SHA-256.
○ Generate Salt: Create a unique salt for each password.
○ Combine Salt and Password: Concatenate salt with password.
○ Hash Combination: Apply the hash function.
○ Store Salt and Hash: Save both in the database.
○ Retrieve on Login: Get salt and hash from the database.
○ Hash Login Password: Combine entered password with salt and hash.
○ Compare Hashes: Match new hash with stored hash.
○ Update Periodically: Re-hash passwords periodically for security.

5. Activity Diagram

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14
6. Use Case Diagram

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7. Gantt Chart

Key features Duration (in weeks)

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th

Planning

Analysis & Design

Coding

Testing

Evaluation

Documentation

Deployment

Presentation

The Gantt chart outlines a 13-week project timeline divided into key phases. Planning spans
the 1st to 3rd week, Analysis and Design from the 3rd to 5th week, Coding from the 6th to
11th week, Testing from the 10th to 11th week, Evaluation from the 12th to 13th week,
Documentation from the 1st to 12th week, Deployment in the 12th week, and Presentation
in the 13th week. Each phase is visually represented by shaded boxes to indicate its duration
on the timeline.

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8. Expected Outcome
When implementing or using a Human Resource Management System (HRMS), the
expected outcomes can be quite broad, depending on the specific needs and goals of the
organization. Here are some key expected outcomes in points:
● Improved Efficiency: Automates routine HR tasks, reducing manual work and
administrative overhead, leading to faster and more accurate processes.
● Enhanced Data Management: Centralizes employee data, ensuring easy access,
better organization, and improved accuracy of information across the organization.
● Improved Employee Experience: Offers self-service options for employees to
manage their personal information, benefits, and leave requests, enhancing
satisfaction and engagement.
● Enhanced Decision-Making: Provides analytical tools and real-time data insights to
help HR managers make informed decisions regarding workforce planning,
performance, and development.
● Increased Productivity: Streamlines HR workflows and processes, allowing HR
staff to focus on strategic initiatives rather than administrative tasks.
● Better Talent Management: Facilitates efficient recruitment, onboarding,
performance tracking, and development programs, helping to attract, retain, and
develop top talent.
● Enhanced Security: Ensures sensitive employee information is securely stored and
managed, with robust access controls and compliance with data protection
regulations.
● Cost Savings: Reduces operational costs through automation, improved efficiency,
and reduced need for paper-based processes and storage.
● Scalability and Flexibility: Adapts to the changing needs of the organization,
supporting growth and the ability to handle an increasing number of employees and
HR processes.
● Enhanced Collaboration: Promotes better communication and collaboration among
HR staff and between employees and management through integrated tools and
platforms.
● Continuous Improvement: Provides a framework for ongoing monitoring and
refinement of HR processes, ensuring continuous enhancement and adaptation to
evolving organizational needs.

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9. Conclusion
Implementing a Human Resource Management System (HRMS) offers a multitude of
benefits that address the diverse needs and goals of modern organizations. From improving
efficiency and enhancing data management to boosting employee experience and
supporting informed decision-making, an HRMS serves as a crucial tool for optimizing
HR functions. It also contributes to increased productivity, better talent management, and
enhanced security, all while delivering cost savings and scalability. By fostering
collaboration and enabling continuous improvement, an HRMS helps organizations
maintain a competitive edge and achieve long-term sustainability. In an ever-evolving
business landscape, the adoption of an HRMS is a strategic investment that can drive
significant organizational growth and success.

Here are some additional points that highlight the benefits and importance of a Human
Resource Management System (HRMS):

● Compliance Management: Ensures adherence to labor laws, tax regulations, and

industry standards, reducing the risk of legal issues and penalties.
● Customizable Workflows: Allows organizations to tailor HR processes to fit their
unique requirements and workflows, enhancing operational alignment.
● Improved Reporting and Analytics: Generates comprehensive reports and
analytics on various HR metrics, providing insights into trends, performance, and
areas needing attention.
● Employee Engagement: Facilitates initiatives like employee surveys, feedback
mechanisms, and recognition programs, boosting morale and engagement.
● Remote Workforce Management: Supports the management of remote and
distributed teams, providing tools for virtual collaboration and performance tracking.
● Reduced Turnover: Improves retention rates by identifying and addressing
employee concerns promptly and providing career development opportunities.
● Integration with Other Systems: Seamlessly integrates with other business systems
like payroll, finance, and project management, ensuring cohesive operations.
● Time and Attendance Tracking: Automated timekeeping, attendance, and leave
management, reducing errors and ensuring accurate payroll processing.
● Health and Safety Management: Tracks and manages health and safety
compliance, incidents, and training, promoting a safer work environment.

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References

Wikipedia contributors. (2024, July 15). Human resource management system. Wikipedia.
Retrieved from https://en.wikipedia.org/wiki/Human_resource_management_system

Marler, J., & Fisher, S. (2013). Human Resource Management Review. Albany:
Academia. Retrieved from
https://www.academia.edu/3809327/Marler_and_Fisher_2013_Human_Resource_Manage
ment_Review

Kavanagh, M. J., Thite, M., & Johnson, R. D. (2015). Human Resource Information
Systems: Basics, Applications, and Future Directions. Thousand Oaks, CA: SAGE
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Stone, D. L., Deadrick, D. L., Lukaszewski, K. M., & Johnson, R. (2015). The influence of
technology on the future of human resource management. Human Resource Management
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Ngai, E. W. T., & Wat, F. K. T. (2006). Human resource information systems: A review
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Pulakos, E. D., Mueller-Hanson, R. A., & O'Leary, R. S. (2019). Performance

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Fitz-enz, J. (2010). The New HR Analytics: Predicting the Economic Value of Your
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Johnson, R. D., & Gueutal, H. G. (2011). Transforming HR Through Technology: The Use
of E-HR and HRIS in Organizations. SHRM Foundation's Effective Practice Guidelines
Series.

Bondarouk, T., & Ruël, H. (2009). Electronic Human Resource Management: Challenges
in the Digital Era. The International Journal of Human Resource Management, 20(3), 505-
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Vakola, M., & Nikolaou, I. (2005). Attitudes towards organizational change: W hat is the
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