The Effect of Electronic Human Resources Management on Quality of Services Provided By Human...

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Journal of Social Issues & Humanities, Volume 1, Issue 7, December 2013 ISSN 2345-2633 223 The Effect of Electronic Human Resources Management on Quality of Services Provided By Human Resources in the Insurance Industry (Case Study: Iran Insurance Company in Khorramabad City) Majid Ramezan, Younes Nazari, Mohammad Mehdi Ahmadi AbstractThis research is attempting to explore and study the important dimensions of electronic human resources management and the effect of these dimensions on quality of services provided by human resources of Iran insurance company in the city of Khorramabad. After studying the previous research to build a conceptual model a questionnaire consisting of dimensions of electronic human resource management and quality of services provided by human resources (with confirmed reliability and validity), the questionnaires were given to the employees of Iran insurance company in the city of Khorramabad and finally, the data collected from 72 questionnaires were analyzed by using the structural equation modeling by AMOS software. The study is a correlation survey in which the electronic human resources management is considered as the independent variable and the quality of services provided by human resources as the dependent variable. Finally, the analysis of findings confirmed the presented conceptual model and indicated that the electronic human resources management has a direct and significant impact on the quality of services provided by human resources. Index TermsElectronic Human Resource Management, Employees Empowerment, Iran Insurance Company. -------------------------------------------------- -------------------------------------------------- 1 INTRODUCTION N service organizations, quality of services is one of the most important factors for maintaining and acquiring new customers. In fact, in service organizations, quality of ser- vice and staffing provider the services are considered as the sources of competitive advantage (Sayyed Javadin et al, 2010). Moreover, todays, the service quality has become the differen- tiating factor and the most competitive weapon of leading ser- vice organizations. The leading service organizations are al- ways attempting to maintain their better quality and therefore their customers' loyalty and improve their performance. Thus improving the quality of human resources services through proper management of human resources is one of the good ways for service organizations to become more competitive (Syed Javadin et al, 2006). However, in recent years, with ad- vances in science and technology, especially information tech- nology we were witnessed considerable changes in organiza- tion, workforce and human resources processes. Increasing development of information technology (IT) and its growing influence in all areas lead to emerge terms such as electronic communications, electronic business, e-government and etc. and these rapid and considerable changes, also have change the most important resource of organizations i.e. human re- sources. Information technology has led the organizations to have a more comprehensive view of their human resources (in the variable electronic environment). They are attempting to increase the powers and authorities of their staff and to enter them into the managerial territories in order to quickly re- spond to the associated variables and to perform the organiza- tional tasks in the best manner and to achieve the objectives of the organization (Sultani and Mirza Negad, 2010). Expansion and complexity of managers' duty levels in the human resource management area and the necessity of plan- ning, empowering, maintaining and effective value adding of the human resources as a key strategic factor for the organiza- tion, indicate the necessity of creating and using systems which are able to decrease the costs and increase the level of information and organizational knowledge exchange and the possibility of effective performing of processes of the human resource department. Thus the electronic human resource management systems have been created (very far beyond the human resource information systems) to respond to these needs in large organizations (Hossaini et al, 2009). The term of e-HRM which was used for the first time in 1990s refers to perform HR activities using Web technologies and is seeking to provide information for directors, consultants and employees all the time and everywhere (Sanchez and Aguayo, 2007). Electronic Human Resource Management means plan- ning, implementation and application of information technol- ogy for networking and supporting at least two or more peo- ple based on common actions (Strohmeier, 2007). Human Re- source Management using Web technologies can be simulta- neously more flexible, more cost-effective, more customer ori- ented and more strategic, and can also reduce the managerial costs and increase productivity, speed of response, improve decision making and develop services for customers I ———————————————— Faculty of management and accounting, Tehran University, Tehran. Iran. M.A in Commerce Management, Allameh Tabataba’i University, Tehran. Iran. E-mail: [email protected] M.A in Business Management, Allameh Tabataba’i University, Tehran. Iran.

Transcript of The Effect of Electronic Human Resources Management on Quality of Services Provided By Human...

Journal of Social Issues & Humanities, Volume 1, Issue 7, December 2013 ISSN 2345-2633

223

The Effect of Electronic Human Resources Management on Quality of Services Provided By

Human Resources in the Insurance Industry

(Case Study: Iran Insurance Company in Khorramabad City)

Majid Ramezan, Younes Nazari, Mohammad Mehdi Ahmadi

Abstract— This research is attempting to explore and study the important dimensions of electronic human resources management and the

effect of these dimensions on quality of services provided by human resources of Iran insurance company in the city of Khorramabad. After

studying the previous research to build a conceptual model a questionnaire consisting of dimensions of electronic human resource

management and quality of services provided by human resources (with confirmed reliability and validity), the questionnaires were given to

the employees of Iran insurance company in the city of Khorramabad and finally, the data collected from 72 questionnaires were analyzed

by using the structural equation modeling by AMOS software. The study is a correlation survey in which the electronic human resources

management is considered as the independent variable and the quality of services provided by human resources as the dependent

variable. Finally, the analysis of findings confirmed the presented conceptual model and indicated that the electronic human resources

management has a direct and significant impact on the quality of services provided by human resources.

Index Terms— Electronic Human Resource Management, Employees Empowerment, Iran Insurance Company.

------------------------------------------------------------ ------------------------------------------------------------

1 INTRODUCTION

N service organizations, quality of services is one of the

most important factors for maintaining and acquiring new

customers. In fact, in service organizations, quality of ser-

vice and staffing provider the services are considered as the

sources of competitive advantage (Sayyed Javadin et al, 2010).

Moreover, todays, the service quality has become the d ifferen-

tiating factor and the most competitive weapon of lead ing ser-

vice organizations. The leading service organizations are al-

ways attempting to maintain their better quality and therefore

their customers' loyalty and improve their performance. Thus

improving the quality of human resources services through

proper management of human resources is one of the good

ways for service organizations to become more competitive

(Syed Javadin et al, 2006). However, in recent years, with ad-

vances in science and technology, especially information tech-

nology we were witnessed considerable changes in organiza-

tion, workforce and human resources processes. Increasing

development of information technology (IT) and its growing

influence in all areas lead to emerge terms such as electronic

communications, electronic business, e-government and etc.

and these rapid and considerable changes, also have change

the most important resource of organizations i.e. human re-

sources. Information technology has led the organizations to

have a more comprehensive view of their human resources (in

the variable electronic environment). They are attempting to

increase the powers and authorities of their staff and to enter

them into the managerial territories in order to quickly re-

spond to the associated variables and to perform the organiza-

tional tasks in the best manner and to achieve the objectives of

the organization (Sultani and Mirza Negad, 2010).

Expansion and complexity of managers' duty levels in the

human resource management area and the necessity of plan-

ning, empowering, maintaining and effective value adding of

the human resources as a key strategic factor for the organiza-

tion, indicate the necessity of creating and using systems

which are able to decrease the costs and increase the level of

information and organizational knowledge exchange and the

possibility of effective performing of processes of the human

resource department. Thus the electronic human resource

management systems have been created (very far beyond the

human resource information systems) to respond to these

needs in large organizations (Hossaini et al, 2009).

The term of e-HRM which was used for the first time in 1990s

refers to perform HR activities using Web technologies and is

seeking to provide information for d irectors, consultants and

employees all the time and everywhere (Sanchez and Aguayo,

2007). Electronic Human Resource Management means plan-

ning, implementation and application of information technol-

ogy for networking and supporting at least two or more peo-

ple based on common actions (Strohmeier, 2007). Human Re-

source Management using Web technologies can be simulta-

neously more flexible, more cost-effective, more customer ori-

ented and more strategic, and can also reduce the managerial

costs and increase productivity, speed of response, improve

decision making and develop services for customers

I

————————————————

Faculty of management and accounting, Tehran University, Tehran. Iran. M.A in Commerce Management, Allameh Tabataba’i University, Tehran.

Iran. E-mail: [email protected] M.A in Business Management, Allameh Tabataba’i University, Tehran.

Iran.

Journal of Social Issues & Humanities, Volume 1, Issue 7, December 2013 ISSN 2345-2633

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(Crestone, 2008). Studies show that organizations which have

better HR performance than others, have features such as the

ability to high-level analyze, cognitive skills, high speed pro-

cessing, performance development and professional training.

Organizations to take steps to obtain such qualities can use of

e-HRM (Haggerty and Wright, 2010).

2 RESEARCH PROBLEM STATEMENT

In the tumultuous arena of today's organizations, the only or-

ganizations will be successfu l that can benefit from all their

human resource capacity, so these are organizations which

have a new approach to human capital (Purkiany and Purmo-

rady, 2008). Electronic human resources management is one of

the new important approaches that service organizations can

thereby, respond their contemporary critical need to improve

the quality of human resource services. Therefore, in this arti-

cle which is drawn from a survey, the researcher sought to

answer the question whether there is a link and correlation

between the electronic human resource management and qual-

ity of human resources services of Iran insurance company in

the city of Khorramabad? And if the link exists, in which areas

its power is greater? Answers to these questions will provide

the background in which if there is significant positive correla-

tion between these two categories and their sub-components,

we can propose strategies and comments to strengthen both

based on the research results. Accordingly because of the con-

ceptual richness and applicable values of these concepts as

well as research gaps in this field , this article seeks to integrate

and study these two concepts.

3 ELECTRONIC HUMAN RESOURCE MANAGEMENT

As might be expected , it is thought that an electronic human

resources management system provides a series of key bene-

fits for organization. For example, scholars and activists have

argued that this system increases the efficiency of human re-

sources, reduces administrative costs and charges, and facili-

tates human resource planning, and allows human resource

professionals to be strategic or commercial partner in organi-

zations (Bartram, 2006). Despite these benefits, researchers

have announced that using of these systems may has a series

of unintended consequences (Harris et al, 2003; Kehoe et al,

2005; Stone et al, 2003). For example, there are concerns that

these new systems will initially focus on efficiency and cost

containment, and do not increase the effectiveness of HR pro-

cesses (selection systems). There are concerns that e-HRM sys-

tems may: 1- have a negative impact on some members of pro-

tected groups (for example, job applicants) (McManus and

Ferguson, 2003), and 2- have the potential of invasion of priva-

cy (Stone and Stone, 1990). Given these potential benefits and

unintended consequences, research is needed to examine their

effectiveness, and enable HR professionals to design systems

that are consistent with organizational goals and all their

stakeholders.

4 ELECTRONIC HUMAN RESOURCE MANAGEMENT

FUNCTIONS

One of the other applications of human resource managem ent

is e-learning (Brown, 2001; Salas et al, 2005; Sitzmann et al,

2006). E-learning include courses of education or training by

means of synchronous or asynchronous tools, including corre-

spondence tools, books, graphics, audio, video, CD-ROM,

online training, television, interactive video conferencing, vid-

eo mail and World Wide Web. Another application of human

resource management web-based selection system is effective.

The use of various forms of technology allows organizations to

provide training for staff in all around the world , and reduces

the major costs associated with face-to-face training programs

considerably (Salas et al, 2005). One of the other applications

of the e- human resource management is effectiveness of the

web-based selection system. Some of the other researchers

have mentioned to use of the web-based systems in order to

increase the effectiveness of the - human resources processes

(Reiter et al, 2006). Two examples may be e-business assess-

ment (Aiello, 1995) and e-rewarding. E-rewarding, can be used

for effective designing of rewards, the proper d istribution of

rewards, the relationship between reward and performance

and can have advantages of rapid access to information for

d irectors (Sturman et al, 1996).

TABLE 1

DIMENSIONS, COMPONENTS AND INDICATORS OF E-HUMAN RESOURCE MANAGEMENT index components Dimension

Using satellite, audio and video media, multimedia

computer facilities, funding for training travels, staff

accommodation costs and the costs of lost work time

for employees engaging in training courses

E-Learning

Electronic Human Re-

source Management

evaluation process through the web-based channels,

training the work with the performance assessment

systems, recognizing the importance of the electron-

ic assessment systems by the organization, the pos-

sibility of creating an archive of past performance

evaluation and comparison with current perfor-

mance

E- assessment

Organization's ability to collect, store, analyze, ap-

ply, and distribute data and information relating to

the rights and benefits electronically

E-rewarding system

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Various studies have been carried out in the electronic human

resource management area; following are some of the most

important points.

Stone and Dulebohn (2013), in their article have studied the

evolution of the human resource management systems and

electronic human resource management and they have ex-

pressed that technology, especially in the World Wide Web has

helped many HR processes including: human resource plan-

ning, recruitment, selection, performance management, work

flow and rewarding to be reformed. This new system has ena-

bled HR professionals to provide better service for all of their

stakeholders (e.g. clients, employees, d irectors), and this sys-

tem has reduced the administrative burden in this area.

Aguinis and Lawal (2013), in their article have studied a new

application of e-human resource management i.e. electronic

free job. E-free job or internet free job enables employers to

declare jobs or projects on the Internet, an d to hire employees

or contractors anywhere in the world . Interested parties are

requested to hire for the job, and do it all online. It is expected

that e-free job will create some very fundamental changes in

the nature of the work, and in the relationships between em-

ployer and employees.

Brown and Charlier (2013), in their article titled "Using a com-

prehensive model of e-learning"; have integrated the applying

theory to increase understanding and application, changing of

theory, meta-theory, adoption with of technology and staff

development in order to factors that affect the use of e-

learning in organizations can be understood. They also have

proposed d irections for research on e-learning and have of-

fered suggestions for practical work.

keledi and khoshakhlagh (2009)in a research on the identifica-

tion and prioritization of factors affecting the adoption of E-

HRM have reviewed and prioritized the factors affecting the

adoption of E-HRM using TOPSIS method. They examined

numerous factors affecting the adoption of E-HRM. Some of

these factors include the complexity of E-HRM, adapting E-

HRM, the maturity of an organization's information systems,

top management support, organizational resources, organiza-

tional structure, individuals' familiarity with ICT skills, and

the importance of human resources for the organization and

the community's familiarity with the ICT skills. In the end it

was determined by using TOPSIS approach that the factors of

support of top management, the importance of human re-

sources for the organization and the individual's familiarity

with ICT skills have the greatest impact on the acceptance of

and adoption with E-HRM.

Nazari (2010) in a study entitled "The Impact of Electronic

Human Resource Management on the effectiveness of human

resource management" showed that electronic human resource

management u tilizing advanced technologies and having

great u tilities is supporter for human resource management.

Imani Pur et al (2011) in a paper titled "The Role of Electronic

Human Resource Management on innovation of organization"

have stated that electronic human resource management sub-

systems are impacting on organizational innovation. Research

findings show that the electronic subsystems of pay and bo-

nuses based on performance, performance management and

learning management have the most effects on encouraging

employees to innovate.

5 QUALITY OF HUMAN RESOURCES SERVICES

Concept of Human Resource Services means a service that

organization's human resources department provides for all

employees of the organization. In this study, to assess the qual-

ity of human resources services, Alrych model of assessment

quality of human resources services (1997) is used .

Focus on the day/ Focus on the future Management of change Strategic Management of Human

Resources

Employees relations management Company's substructure man-

agement

HR's role in building a competitive organization (Alrych, 1997).

As it can be seen, the Alrych model refers to four roles of HR.

Accordingly, the human resources department must provide four

kinds of service to the organization employees:

A- Human resources strategic services:

The strategic role of HR is focused on the coordinating the

strategies and routines of the human resources with business

strategies.

B- Human Resources Administrative Services:

This role is in fact the traditional role of human resources (in-

cluding recruiting and hiring, training, performance evaluation,

compensation, promotion and management of staff turnover).

C- Human Resources Supportive Services:

This role includes a focus on current problems and needs of

the employees.

D- Human Resources Change related services:

This role refers to the human resources professionals' duty to

fundamental change of a company's culture in order to add value

to the organization through this way.

TABLE 2

DIMENSIONS, COMPONENTS AND INDICATORS OF THE QUALITY OF HUMAN RESOURCES SERVICES

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6 CONCEPTUAL MODEL

According to previous research and interviews with experts in

human resources management field , model showed in Figure

(1) is

considered as the conceptual model of this research .

The main hypotheses: Electronic Human Resources Man- agement has a positive effect on the quality of human re-

Index Components Dimension

Helping to achieve business goals, participation in the process of

defining business strategies, ensuring of coordinating of human re-

sources strategies and business strategies, human resources measur-

ing through business strategies, being considered as a strategic part-

ner, spending time for strategic issues, active participation in business

planning, Developing processes and programs related to human

resource strategies to achieve the organization's strategy, credit in

organization in order to help achieve business goals

Strategic services

Quality of human re-

sources services

Pay attention to the personal needs of employees, participation in

improving employee engagement, ensuring of consisting the policy

of human resource policies and personal needs of employees, being

considered as supporter of staff, offering the help and support of

employees to meet their personal needs, developing processes and

programs to suit the ind ividual needs of employee, spending the time

to listen and respond to employees

Supportive services

To help the improvement of operational efficiency, participation in

implementation of HR processes, ensuring the efficiency of manage-

ment of HR processes, HR effectiveness measurement based on

providing efficient HR processes, being considered as an administra-

tive expert, spending time to operational issues participate actively in

the design and implementation of HR processes, monitoring the

business processes, developing processes and programs for the effi-

cient processing of documents and proceedings, the validity of the

organization for helping to increase productivity

Executive Services

Helping to change acceptance, contributing to the cultural change for

modernization and change, enhancing the organization's ability to

change with the help of processes and programs of human resources,

measuring the effectiveness of human resources based on the help the

organization to predict and adopt with the future issues, be consid-

ered as a change factor, Spending time to make a change in the organ-

ization, active participation in the modernization, changing the or-

ganization, reshaping behavior for organizational change, developing

processes and programs to help change in the organization, being

valid based on the helping to create change

Change related ser-

vices

Fig. 1. the conceptual model of research.

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sources services.

Secondary hypotheses of this research are as follows:

A- Latent variable of electronic human resources manage-

ment is measurable through three variables of e-learning, e-

assessment and e-rewarding system.

B- Latent variable of quality of human resources services

can be measured through four variables of strategic services,

supportive services, executive services and change related

services.

7 RESEARCH METHODOLOGY

This study was a correlational survey research in which data are

collected through a questionnaire. Managers and Iran insurance

experts of city of Khorramabad, have formed the study popula-

tion, in structural equation modeling method, it is necessary that

in order to obtain relevant information and correct conclusions,

for every variable, there are at least ten questionnaires. In this

study, given that seven observed variables are used, at least 70

questions were needed. Therefore, 100 questionnaires were ran-

domly distributed among some of Iran Insurance managers and

employees in different regions of the city of Khorramabad, and

the data of 72 questionnaires were used for analysis. In this study,

two groups of variables are used. Latent variables are variables

that cannot be directly observed or measured. By the contrast

observed variables are variables that are used to define or infer

the latent variables. In this study, there are two latent variables of

electronic human resources management and quality of human

resources services and seven observed variables. Four variables of

strategic services, supportive services, executive services and

change related services are related to the latent variable of quality

of HR services and the three variables of e-learning, e-assessment,

e-rewarding system are related to the latent variable of electronic

human resources management. Also the latent variable of quality

of HR services is considered as the dependent variable and the

latent variable of electronic human resources management as the

independent variable. The questionnaire consisted of two ques-

tionnaires of electronic human resources management and quali-

ty of human resources services. Validity of the questionnaire was

examined from two aspects of construct validity and content va-

lidity. In order to examine the content validity, the questionnaire

was given to many experts and professors and the necessary

changes were done based on their ideas. In order to examine the

construct validity, the factor analysis test and SPSS statistical

software were used. Evaluation indicators in this test are the sta-

tistic of sampling adequacy (KMO) and the significance level of

Bartlett. The results of these tests are shown in Table 3.

TABLE 3

FACTOR ANALYSIS RESULTS FOR CONSTRUCT VALIDITY OF THE RESEARCH VARIABLES significance level

of Bartlett

KMO measurement Variable

000/ 0 500/ 0 E-Learning

Electronic Human

Resources Manage-

ment

000/ 0 871/ 0 E-assessment

000/ 0 884/ 0 E-rewarding system

000/ 0 736/ 0 Strategic Services

Quality of human re-

sources services 000/ 0 729/ 0 Supportive Services

000/ 0 692/ 0 Executive Services

000/ 0 729/ 0 Change related services

To confirm the construct validity, significance level of Bartlett

should be less than 5% and for sampling adequacy statistic usu-

ally values exceeding 50% are acceptable. The indices have been

measured for the research variables and according to the ob-

tained values, construct validity was confirmed. Reliability of

the questionnaire is measured by Cronbach's alpha. Table 4 in-

dicates the calculated Cronbach's alpha coefficients for the re-

search variables. As can be seen in Table 4, the calculated

Cronbach's alpha coefficient for all variables is more than 70%

separately and in total. So it can be concluded that the reliability

of the questionnaire is acceptable.

TABLE 4

THE RESEARCH VARIABLES RELIABILITY (CRONBACH'S ALPHA)

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In this study, to examine and test the con ceptual model pro-

vided by the researcher, structural equation modeling method

and Amos software are used . Structural equation modeling

assists researchers to test and verify a theoretical model that

consists of several d iverse components, both in total and based

on its components (Ghasemi, 2009).

8 ANALYSIS OF DATA

The descriptive analysis of the data

Data collected from the questionnaires have identified that

there is a high attention to the electronic human resources man-

agement in Iran insurance company in the city of Khorramabad.

Electronic human resources management has a mean score of

4.66. Table 6 shows the status of observed variables of e-HRM.

TABLE 5

DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS Gender Marital status Education

Male Female Single Married Diploma Higher than

Diploma Bachelor

Degree

Master's

Degree or

higher Frequency 24 48 32 40 12 8 44 8

Relative Fre-

quency 33.3 67 44.4 55.6 16.7 11.1 61.1 11.1

TABLE 6

STATUS OF SUB VARIABLES OF E-HRM IN THE INVESTIGATED COMPANIES Mean SD Maximum Minimum Number Dimensions

4.42 1.49 7 1 72 E- Learning

4.68 1.43 7 1.17 72 E-assessment

4.86 1.43 2 2 72 E-rewarding system

4.66 1.32 7 1.89 72 Electronic Human Resources

Management

The variable of quality of human resources services, is the another

variable examined in this study. Table 7 shows the mean values of

this variable dimensions in Iran Insurance company in the city of

Khorramabad. The mean value for this variable was 3.61. Among

the observed variables of the quality of human resources services,

the change related services had the lowest and the supportive

services had the highest value.

TABLE 7

STATUS OF SUB VARIABLES OF QUALITY OF HUMAN RESOURCES SERVICES IN THE INVESTIGATED COMPANIES Mean SD Maximum Minimum Number Dimensions

3.4 0.5 4.8 2.2 72 Strategic Services

3.96 0.55 4.8 2.4 72 Supportive Services

3.72 0.51 4.6 2.6 72 Executive Services

3.37 0.68 4.75 2 72 Change related services

3.61 0.40 4.39 2.45 72 Quality of human resources ser-

vices

Cronbach's alpha Observed variables Latent variables

0.955 E-Learning

Electronic Human Re-

sources Management

0.958 E-assessment

0.939 E-rewarding system

0.950 MEAN

0.711 Strategic Services

Quality of human re-

sources services

0.749 Supportive Services

0.738 Executive Services

0.783 Change related services

0.745 MEAN

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9 TEST THE CONCEPTUAL MODEL AND RESEARCH

HYPOTHESES

This study, is used the structural equation modeling approach

to examine the impact of the variable of electronic human re-

source management as the independent variable on the quality

of human resources services as the dependent variab le. The

conceptual model encompasses a structural model (impact of e-

human resources management on services quality of human

resources) and two measurement models (measuring two vari-

ables of services quality of human resources and e-human re-

sources management). The first step in conducting this test is

drawing a conceptual model in the software. Figure 2 shows

how to map the conceptual model.

After implementing the structural equation modeling test by the

software, the fit parameters are presented that show the concep-

tual model is approximately fitted to experimental data. Unlike

conventional statistical tests which are approved or rejected with

a statistic, in structural equation modeling, a set of indicators are

introduced. Goodness of fit indices for conceptual model of the

research are presented in Table 8.

TABLE 8

OUTPUT OF THE PRIMARY MODEL (THE IMPACT OF THE E-HRM ON THE SERVICES QUALITY OF HR) Acceptable fit primary

Model

Index indices Category

P > 5%

0.064 The area under the Chi-square

Absolute fit ind ices

GFI > 90%

0.926 Goodness of fit index

AGFI > 90%

0.841 Adjusted goodness of fit index

NFI > 90%

0.906 Normalized fit index

Comparative fit indices

GFI > 90%

0.959 Comparative fit index

RIF > 90%

0.848 Relative fit index

IFI > 90%

0.961 Incremental fit index

PNFI> 50%

0.561 Thrifty norm fit index

Thrifty fit indices RMSEA < 10%

0.096 The root mean square error of

estimate

Fig. 2. Structural model depicted in Amos software.

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value between 1 and 3 1.652 chi-square per degree of freedom

As indicated in the table, the large numbers of fitness parameters

of the model are in a good condition. For example, the signifi-

cance level of chi-square of the model is greater than 5% and this

indicates that the experimental data are supporting of the concep-

tual model properly. Also the root mean squared error of the es-

timate is less than 10% and this index confirms the model too.

Acceptability of the other parameters of the model also can be

seen in the software outputs. General confirmation of the model

does not imply that all relationships in the model have been vali-

dated and therefore the model relationships should be studied

separately and, therefore, the fitting indices are calculated. In oth-

er words, after confirming the overall model fitness, the relations

of the model should be tested too, in order to study whether rela-

tions defined in the model have a good fit or not. Significance of

the fitting indicators of the model relationships is shown in Table

9.

TABLE 9

FITTING INDICATORS OF THE MODEL RELATIONSHIPS

The symbol *** in the column of significance level means that

value is smaller than 0.001

Relationships of the Conceptual model estima-

tion standard

error critical ratio Significance

level

hypothesis Result

Electronic

Human

Resources

Manage-

ment

0.000>

Quality of

human re-

sources ser-

vices

0.570 0.134 4.625 *** First

Confirmed

Electronic

Human

Resources

Manage-

ment

0.000>

E-Learning 1.000 Second

Electronic

Human

Resources

Manage-

ment

0.000>

E- assess-

ment 1.030 0.119 8.676 ***

Confirmed

Electronic

Human

Resources

Manage-

ment

0.000> E- rewarding

system 1.052 0.118 8.904 ***

Quality of

human

resources

services

0.000> Strategic

Services

1.000

Three

Quality of

human

resources

services

0.000> Supportive

Services

1.324 0.312 4.246 ***

Confirmed Quality of

human

resources

services

0.000> Executive

Services

0.671 0.252 2.660 0.008

Quality of

human

resources

services

0.000> Change re-

lated services

0.971 0.274 3.547 ***

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As the data in Table 9 shows, the main research hypothesis

(impact of electronic human resources management on quality

of human resources services) has confirmed. Given the signifi-

cance level of this relationship, which is less than 5%, we can

assume that in the organizations which have a higher quality

of electronic human resources management, human resources

provide services with better quality. Due to the positive load-

ing of this relationship (0.57) we can assume that the quality of

electronic human resources management has a positive impact

on quality of the services provided by the human resources of

Iran Insurance Company in the city of Khorramabad.

Two other hypotheses are formulated based on the measure-

ment models. The second research hypothesis assumes that

the observed variables of e-learning, e -assessment and e- re-

warding system; measure the latent variable of electronic hu-

man resources management. As seen in Table 9, the factor

loadings of all branches of this variable were significant and

this means accepting the research second hypothesis. The third

hypothesis of the research was developed to measure the la-

tent variable of quality of human resources services. As seen in

Table 9, the factor loadings of all 4 branches of this variab le

were significant and significance level was less than 5% which

means accepting the third hypothesis. The figure (3) shows an

overview on the conceptual model with estimated coefficients.

10 CONCLUSIONS

The aim of this study was to investigate the impact of electronic

human resource management on quality of services provided

by human resources in insurance industry and specifically Iran

insurance company in the city of Khorramabad, Iran. Research

findings show that the stu died companies have a good condi-

tion based on these two variables. Also through examining the

research hypotheses and testing the model, the positive effect of

the electronic human resources management on quality of ser-

vices provided by human resources as well as the main research

hypothesis was confirmed. This means that as the aforemen-

tioned organizations have paid more attention to electronic hu-

man resources management, the quality of services provided by

human resources have been improved. According to the results

of the study, Iran insurance company of the city of Khorrama-

bad, from the e-HRM view is in relatively good condition but it

needs to be more sensitive in regard to e-learning and to devote

more attention to this issue and simultaneously, the electronic

programs of assessment of staff performance should not be ig-

nored. This company also should use an electronic rewarding

system and further develop the programs of e-HRM and by

using of these systems, create motivation and enthusiasm in the

organization to provide a more conducive environment in order

to improve the quality of services provided by the human re-

sources. Thus, according to the findings of this research, the

following recommendations are offered.

In order to improve the e-learning, the organization should

use of the synchronous or asynchronous teaching tools, includ-

ing books, graphics, audio, video, CD-ROM, online learning,

interactive video conferencing and use of higher education

courses for the staff.

In order to improve the electronic assessment, it is suggested

Fig. 3. Conceptual model with factor loadings.

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that the organization through creation of a web page makes it

possible for its employees to provide a 360-degree assessment.

360 degree feedback is a completed cycle during which staff can

get feedback from all members (includ ing peers, subordinates,

managers, customers, suppliers, etc.).

In order to develop an e- rewarding system, the organization

by providing an electronic assessment system, should create a

platform that staff can get rewards commensurate with their

performance.

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