January 25, 2009

Impact of Information Technology on Human Resources Research Proposal


A fundamental change is happening in companies' competition due to the changes in the global business environment, management thinking and experience and information technology.

In the new global method of competition, collaboration exists as a new established niche of competitiveness. In a traditional thought, collaboration pertains to office workers interacting effectively together to achieve a common objective and goal of the company. Here, the exchange of knowledge among individuals allows them to communicate and chare complex ideas and to form a collaborative work performance in crating value. Yet, competitiveness remains central to profitability, growth and business success. It is true that in many emerging markets and collaboration scheme competitors do not exist.

Technology has become the driver of change that is taking place in the banking sector. Technology-based tools greatly support the most innovative concepts currently being implemented in the market. The efficiency at which service levels are improved hinges on the appropriate use of the available technologies.

In this study, I would like to analyze and evaluate the weight of the impact of technology or information technology to human resource management and manpower in particular. The development of human resource and the information are in friction. In this case, it is relevant to take a glimpse on the impact of technological innovation to the formation and development of human resource.

Background of the Study

            The emergence of information technology sets another trend in the economy of production and the profitability scheme of business firms and corporations. The advantage sets by information technology primarily seen in the cyberspace in the likes of e-businesses and other forms or business marketing in the marketspace becomes the new rule in maintaining one's business organization and to gain competitive advantage and sustainable growth.

Competitive advantage is a fundamental requirement for an organization if it is to survive in the long term. The reality is that few organizations achieve competitive advantage and even fewer sustain their advantages.  Porter identifies three generic strategies for competitive advantage: low cost, differentiation, and sustainability.

            Information technology has been perceived as being a means to provide more efficient processes that would lead to lower cost products and services. Yet, the only barrier preventing all organizations from acquiring the same technology is the cost of acquisition.

Tapscott argued, "IT networks accelerated the development of global commerce and lowered transaction costs, enabling the global unbundling of the firm" (2005). In this case, IT serves to be a utility in which a firms' competitive advantage sustained and make a stronghold.

            The widespread impact of information systems is increasingly being acknowledged as being fundamentally strategic as new information technology continues to progressively penetrate into core business technologies. Information technology is not limited to specific applications unlike other application of technology for competitive advantage. For instance, the use of automation in manufacturing industries can increase the effectiveness of a factory.     

The usefulness of information technology are enormous and diverse, depending on the kind of products and goods a company is leveraging and producing. If in a case like manufacturing products, the usefulness of IT obviously to mass produce goods, highly qualified in just a few period of time. The IT in these industries is using software and other IT means in which to replace the manpower ability of mass production. In this way, IT generates multiple incomes for the firms compared to the human labor. Since, the primary task of a business organization is to generate profit; IT becomes a prominent tool to utilize. However, it has a significant impact to the human resource management since technology becomes a paragon of generating mass production, human resource no is less overridden by technology wherein manpower is less necessary than technology.

On the other hand, the impact of the use of information technology on corporate performance and human resource management should be examined. In some studies made, there is no monopoly of information technology on the performance of a corporation. It can get over the human resources ability and power to gain greater production and profit for the company. Yet, it cannot be absolutely claimed that the corporate performance is solely produced by technology resources.

On the other hand, retailers that gained competitive advantage are those that employ technology to leverage intangible, complementary human and business resources. Since IT becomes a complex reality, there is a need for IT to be simplified in a way that it becomes more useful and adoptable to other business markets. IT simplification generates a smarter, faster, more efficient and better for the environment. Companies and organizations want simple standards for computing on speed, innovation and efficiency. Businesses and governments want to invest in innovation, not maintenance and they want to spend their time and resources creating better services and better products for their customers. In this way, simplifying IT as a means for companies and government's competitive advantage is a gateway to innovation.

Problem Statement

            In order that this study will be directed towards its objectives and claim on the impact of IT to human resource the need to underline the problems are significant. Hence, this study seeks to answer the problem statements raised in here:

  1. The significance of the IT and human resource management to corporate strategy.
  2. The role of IT as a tool to generate corporate income.
  3. The importance of human resource management in the operations of a corporation towards profit.
  4. The role of IT and human resource management in fulfilling the corporate mission, objectives, and goals.

Research Question

            The main research question of this study is directed towards the role of IT in affecting the human resource management structure and development. Hence, the question is how is the impact of IT to human resource affects the whole organizational structure and processes and its goal to profit?

Significance of the Study

            Although there are several studies which that touches the role and impact of IT to organizations and business market, and same time with human resource management, yet much of them did not bother to analyze and study the impact of IT to human resource. In fact, some studies bothered to present the impact of human resource to IT which is a different subject matter.

            The importance of this study is to help HR practitioners, experts, and managers to look more deeply on the issue of the effects of IT to other organizational dimensions or structures of the company. More than seeing the role of HR to IT, now, it must be a ripe time to see the effect of IT on the human resource structure and development. This could also open up for more studies and excavate a more fertile ground to cultivate that would in future helps organizations to make a balance scorecard between human resource and technology.


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