Does e-HRM improve labour productivity? A study of commercial bank workplaces in Pakistan

Abstract

Purpose

Drawing on data from a unique, large-scale survey, the purpose of this paper is to examine the links between e-HRM and perceived labour productivity both directly and through the mediating role of HR service quality amongst commercial-bank workplaces in Pakistan, many of which have introduced e-HRM.

Design/methodology/approach

The authors use partial least squares structural equation modelling to examine the direct links between e-HRM and productivity as well as the mediated links between e-HRM, perceived HR service quality and productivity.

Findings

The authors show that e-HRM practices have a statistically significant, positive effect on managers’ perceptions of labour productivity. The authors also reveal that e-HRM practices influence the quality of HR service, and that the quality of HR services fully mediates the relationship between e-HRM practices and managers’ perceptions of labour productivity.

Practical implications

The results highlight the importance of designing and implementing e-HRM systems so that they support organisation workflow and enable workers to carry out a range of HR and non-HR activities more efficiently. In particular, this study suggests that managers should focus on how e-HRM impacts on HR service quality in a holistic way, as this is the “route” via which e-HRM can improve labour productivity.

Originality/value

Existing research has demonstrated a link between e-HRM and the quality of HR services; however, these studies downplay the potential impact of e-HRM on labour productivity, a key organisational outcome and one that e-HRM aims to improve. This study contributes to the HRM literature by identifying how e-HRM can improve labour productivity by enhancing the perceived HR service quality. This study, therefore, provides the basis for future theory developments in this area.

Citation

Iqbal, N., Ahmad, M., M.C. Allen, M. and Raziq, M.M. (2018), "Does e-HRM improve labour productivity? A study of commercial bank workplaces in Pakistan", Employee Relations, Vol. 40 No. 2, pp. 281-297. https://doi.org/10.1108/ER-01-2017-0018