Enhancing Labor Productivity through E-HRM - Evidence from Commercial Banks in Pakistan

Abstract

This study investigates the impact of electronic Human Resource Management (e-HRM) systems on labor productivity within commercial banks in Pakistan, with a specific focus on the mediating role of HR service quality. The reasons for adopting e-HRM practice are to reduce HR processes, enhance efficiency and increase productivity. Empirical analysis is carried through the study using a quantitative research design to evaluate the relationships between e-HRM practices and the labor productivity that is mediated through HR service quality. Results indicate a very positive relationship among e-HRM practices’ width and depth with labor productivity, through the quality of HR services. In this study we contribute to the extant literature by understanding the appropriateness of e-HRM in a dynamic developing country setting and provide practical guide to HR and policy makers to change the e-HRM Government system in order to increase e-HRM system performance. This study also emphasizes the importance of tailoring e-HRM practices to local cultural and institutional contexts as this is likely to help in making e-HRM practices more effective and acceptable.