Electronic human resource management (e-HRM) configuration for organizational success: inclusion of employee outcomes as contextual variables

Abstract

PurposeThe purpose of this paper is to examine whether employee outcomes of employee performance and job satisfaction mediate and enhance the effect of e-HRM usage on organizational performance.Design/methodology/approachData were collected through a survey involving 35 organizations using e-HRM systems. A partially mixed sequential dominant status explanatory design was used for the study. A stratified convenience sampling technique was used for the quantitative phase of the study. A purposive sampling technique was employed for the qualitative phase. A structural equation modelling technique with the use of the process macro approach was used to analyse collected data.FindingsThere is a positive relationship between e-HRM usage and employee outcomes. Employee performance and job satisfaction mediate the effect of e-HRM usage on organizational performance. Employee performance and job satisfaction are contextual variables that characterize effective e-HRM configurations.Practical implicationsOrganizations should invest in employee outcomes in order to maximize the potential of e-HRM. The e-HRM configurations characterized by a multiplicity of dimensions are more likely to add to organizational value creation. The deployment of e-HRM systems should be preceded by high levels of employee performance and job satisfaction, for organizational success.Originality/valueThe study contributes to a growing body of knowledge on dimensions, which characterize effective e-HRM configurations, yielding organizational success. Employee performance and job satisfaction should be added to the characteristics of effective e-HRM configurations.