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The copyright © of this thesis belongs to its rightful author and/or other copyright owner. Copies can be accessed and downloaded for non-commercial or learning purposes without any charge and permission. The thesis cannot be reproduced or quoted as a whole without the permission from its rightful owner. No alteration or changes in format is allowed without permission from its rightful owner.

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THE INFLUENCE OF E-HRM ON EMPLOYEE PERFORMANCE IN SELECTED CONSTRUCTION

COMPANIES

AIM1 DAMIA BINTI MAT ALI

MASTER OF HUMAN RESOURCE MANAGEMENT UNIVERSITI UTARA MALAYSIA

AUGUST 2020

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THE INFLUENCE OF E-HRM ON EMPLOYEE PERFORMANCE IN SELECTED CONSTRUCTION COMPANIES

By

AIM1 DAMIA BINTI MAT ALI

Thesis Submitted to School of Business Management,

Universiti Utara Malaysia,

in Partial Fulfdment of the Requirement for the Master of Human Resource Management

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Universltl Utara Malaysia

Sap, mengaAar bertandatangan, m e m k a n batma

(I, ,-u cerfified

w

AIM D A U Born MAT

ALI

(820832)

*n unMr @ah Sarjana (Candidate Lbr the Gdegree

Oq

W m O F tlwMN RESOURCE MAMAGEMENT

C

telah mengemukakan kerb penphdkan yang b s w (has presenfed h M e r research pqm dthe W h n g &)

THE INFLUENCE OF LHRM

ON

EMPLOYEE PfRNlRMMlCE M SELECTED C ~ R U C T I O W COMPANIES

Brrhawa brtas penyelidikan tersebut ti&h ctaerima dari seg4 bent& setta k m k g a n dm meE@Ai bidang h dengrvn memuaskan.

~ t t h e m ~ p a p e r a c c e p t a b k , h t h e h a n d m M ~ d t h a t a ~ ~ o f & W k c o ~ by the researdr papeI).

Nama knyeSi PROF. MAOYA DR. TRIl FEE YEAH pame d Sup&sor)

Tandatangan

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PERMLSSION TO USE

In presenting this thesis in partial fulfillment of the requirements for a Post Graduate degree from the Universiti Utara Malaysia (UUM), I agree that the Library of this university may make it freely available for inspection. I further agree

that

permission for copying this dissertatiodproject paper in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor(s) or in their absence, by the Dean of School of Business Management where I did my dissertatiodproject paper. It is understood that any copying or publication or use of this dissertationlproject paper parts of it for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the UUM in any scholarly use which may be made of any material in my dissertatiodproject paper.

Request for permission to copy or to make other use of materials in this dissertatiodproject paper in whole or in part should be addressed to:

Dean of School of Business Management Universiti Utara Malaysia

0601 0 UUM Sintok Kedah Darul Aman

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ABSTRACT

Electronic Human Resource Management (e-HRM) is a way to implement human resource strategies, policies, and practices. E-HRM, through Web-based technology, supports the HR fknction to satisfy the organisation's HR needs. By using this system, human resource management (HRM) can help to reduce costs, deliver information faster, and increase the performance in handling human resource tasks more efficiently and effectively. The aim of this study, is to determine the influence of e-HRM (e- Recruitment and Selection, e-Training and Development, e-Compensation and Benefit and e-Performance) on employee performance in construction companies. The quantitative method was used for data collection via the use of questionnaires. A stratified random sampling was carried out for a population that consisted of 400 employees ffom 20 construction companies. The study found that e-HRM has a positive relationship (i.e. e-compensation and benefit, and e-performance) to the performance of employees. The study's results also indicated that the relationship between e-recruitment and selection, and employee performance was insignificant.

Meanwhile, e-training and development was negatively wrrelated with employee performance. In practice, according to the findings of the current study, e-performance has more influence on employee performance than e-compensation and benefit. An effective use of eHRM has increased the performance of employees.

Keywords: E-recruitment and selection, e-training and development, e-compensation and benefit, e-performance, e-HRM

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ABSTRAK

Elektronik pengurusan sumber manusia (e-HRM) adalah cara untuk melaksanakan strategi, polisi, dan amalan sumber manusia. E-HRM, menyokong fungsi sumber manusia melalui teknologi yang berasaskan laman web demi memenuhi keperluan sumber manusia dalam sesebuah organisasi. Dengan menggunakan sistem ini, pengumsan sumber manusia dapat membantu organisasi mengurangkan kos, berkongsi dan menyampaikan m e a t dengan cepat serta dapat meningkatkan prestasi sumber manusia dengan lebih efisien dan efektif. Oleh itu, objektif kajian ini adalah untuk mengetahui pengaruh e-HRM (e-perehtan dan pemilihan, latihan dan pembangunan, e-pampasan dan faedah, clan e-prestasi) terhadap prestasi pekerja di syarikat pembinaan. Kaedah kuantitatif digunakan. Pengumpulan data adalah melalui soal selidik. Persampelan rawak berstrata dilakukan yang terdiri daripada 400 kakitangan dari 20 buah syarikat pembinaan. Kajian ini mendapati bahawa e-HRM mempunyai hubungan positif (iaitu, e-parnpasan dan faedah, dan e-prestasi) dengan prestasi pekerja. Keputusan kajian juga menunjukkan bahawa tiada hubungan antara e-perekrutan dan pemilihan dengan prestasi pekerja. Selain itu, keputusan regresi menunjukkan bahawa e-latihan dan pembangunan mempengaruhi prestasi pekerja secara negatif. Berdasarkan penemuan kajian, e-prestasi mempakan faktor pengaruh . - yang paling signifikan terhadap prestasi pekerja berbanding de&an e-pampasan dan faedah. Penggunaan e-HRMsecara berkesan bempaya meningkatkan prestasi pekerja.

Kt& kunci: E-pereloutan dan pemilihan, e-latihan dan pembangunan, e-pampasan

dan faedah, e-prestasi, e-HRM

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ACKNOWLEDGEMENTS

In the name of Almighty ALLAH (SWT), the Most Merciful and the Most Gracious, Praise and Peace be upon His beloved our Prophet Muhammad (PBH), his family and his companions and by the will of ALLAH (SWT), we escape darkness into enlightenment. I strongly believe that going through the Master's journey is a challenging undertaking which is only made possible when ALLAH (SWT) makes it easy by His kindness.

Firstly, I would like to express my deepest gratitude to my honourable supervisor, Assoc. Prof. Dr. Tan Fee Yean for providing invaluable guidance throughout my Master's journey and for her extra-ordinary tips in writing this dissertation paper. The entire research owed its pace to the wonderful comments and expertise sharing of my supervisors. In fact, I feel in my heart that without her advice and constructive criticisms this dissertation paper would never have been written.

In addition, my love and appreciation is extended to my parents who have always kept me in their blessings and love. Moreover, I am thankful to my husband, Mohd Jeffry Mohd Annorwar for his sacrifices as well as for giving inspiration, moral support, encouragement and well-wishes throughout the study period.

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TABLE OF CONTENTS

TITLE PAGE

CERTIFICATION O F RESEARCH PAPER PERMISSION TO USE

ABSTRACT ABSTRAK

ACKNOWLEDGEMENT TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES

LIST OF ABBREVIATION

CHAPTER ONE: INTRODUCTION 1.1 Background of the Study

1.2 Problem Statement 1.3 Research Questions

1.4 Research Objectives 1.5 Scope of Study 1.6 Significance of Study 1.7 Definitions of Key Temw 1.8 Organization of the Thesis

Page

i

11

..

. . .

Ill

iv v vi vii xi

xii

. . .

Xlll

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CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction

2.2 Definition and Conceptualisation of Variables 2.2.1 Employee Performance

2.2.2 E-Recruitment and Selection 2.2.3 E-Training and Development 2.2.4 E-compensation and Benefits

2.3 Underlying Theory

2.3.1 Information Systems (IS) Success Model 2.3.2 Human Capital Theory (HCT)

2.4 Research Framework 2.5 Hypothesis Development

2.5.1 E-recruitment and Selection and Employee Performance 2.5.2 E-training and Development and Employee Performance 2.5.3 E-compensation and Benefit and Employee Performance 2.5.4 E-performance and Employee Performance

2.6 Summary

CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Introduction

3.2 Research Design

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3.3 Population and Sample 3.4 Measurements

3.4.1 Dependent Variable 3.4.2 Independent Variable 3.5 Questionnaire Design 3.6 Pilot Study

3.7 Data Collection Procedure 3.8 Data Analysis Techniques 3.9 Summary

CHAPTER FOUR: RESEARCH METHODOLOGY

Introduction Rate of Response

Demographic Profile of the Respondents Reliability Analysis

Descriptive Statistics Correlation Analysis Regression Analysis

Summary of Hypothesis Testing Summary

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CHAPTER FIVE: DISCUSSION

Introduction

Discussion of Findings

The relationship between e-recruitment and selection and employee performance

The relationship between e-training and development and employee performance

The relationship between e-compensation and benefit and

employee performance

The relationship between e-performance and employee performance

Implication of study

Limitations of the Study and Suggestions for Future Research Conclusion

REFERENCES APPENDICES

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LIST OF TABLES

Table 3.1 Table 3.2

Table 3.3 Table 3.4 Table 3.5 Table 3.6 Table 4.1 Table 4.2 Table 4.3 Table 4.4 Table 4.5 Table 4.6 Table 4.7

Table 4.8

Krejcie and Morgan (1970)

Number of Employees in a Random Selection of Construction Companies in Selangor.

Dependent Variable Independent Variable Layout of the Questionnaire

Cronbach's Alpha Reliability Analysis Response Rate

Demographic Profile of the Respondents

Cronbach's Alpha Reliability Analysis Descriptive Statistics

Strength of Linear Relationship Correlation Between Variables

Regression Results of E-HRM Practices and Employee Performance

Summarised Result of Hypothesis Testing

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LIST OF FTGURES

Figure 2.1 Information Systems (IS) Success Model.

Figure 2.2 Human Capital Theory Model.

Figure 2.3 Theoretical Framework.

Page 22 24 25

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Abbreviation E-HRM HCT HR HRM IT IS SMEs SPSS

LIST OF ABBREVIATION

Description of abbreviation

Electronic Human Resource Management Human Capital Theory

Human resource

Human Resource Management Information Technology Information System

Small and Medium-sized Enterprises Statistical Package for the Social Sciences

xiii

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CHAPTER 1 INTRODUCTION

1.1 BACKGROUND OF STUDY

The advent of new technology also presents challenges of competitive benefits to an organisation. The organisation needs to compete in the market in order to retain their employees and to improve the quality of work. One of the technologies in human resource systems is Electronic Human Resource Management which is also known as e-HRM. By using this system, human resource management (HRM) can help to reduce costs, deliver information faster, and increase the performance in handling human resource tasks more efficiently and effectively. Companies find themselves in never ending competition with regard to customers with high qualitative, low cost, and performance expectations (Nivlouei, 2014). According to Nzuve (2007) observation, when good practices of e-HRM are employed in companies, the productivity of employees can be increased and organisation goals can also be achieved. Nyambegera, (2005) and Okumbe (2001) also observed that companies with good practices of e- HRM are able to retain or keep their talented employees, and are also able to attract the most talented new employees from the labour market to join them. Many companies have been introduced to e-HRM systems which are frequently labelled as web-based applications for HRM purposes (Swaroop, 2012).

E-HRM is the planning and application of web-based technology channels to implement a company's human resource strategies, policies, and practices (Gurol, 2010). In other words, e-HRM is the application of electronic technology which enables interactions between employee and employers. The purpose is to transform the human resource functions into one which is paper-less, flexible and also enables

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APPENDlCES Appendix - A

Survey Questionnaire

Dear Participant,

The purpose of the attached survey questionnaire is to understand the e-HRM practices of the selected construction companies in Selangor. The survey questionnaire consisted of some statements and you are requested to give the appropriate answer.

This questionnaire is designed to assess your perception of your e-HRM practices influence on the employee performance.

There is no right or wrong answers in this survey. All your answers will reflect your personal opinion about the cument e-HRM pactices of your organization.Individual responses to this survey will be kept CONFIDENTIAL and will NOT be disclosed.

Your company will have NO access to the information you have provided herein.

Besides, no reference will be made in writing or orally that could link you to this study.

Only summarized data will be reported in the results.

Please read carefully the instruction at the beginning of the questionnaire and answer all the statements as accurately as possible. Your time and cooperation will be highly appreciated. Please take a few minutes to fill out this survey questionnaire. Thank you in advance for taking your valuable time to complete this survey.

Yours faithfully,

Aimi Damia Binti Mat Ali

Master Candidate, School of Business Management, College of Business Universiti Utara Malaysia

06010 UUM Sintok, Kedah Darul Aman, Malaysia.

Phone: +6 018 382 4166; e-mail: airnydarnia@hotmail.com

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THE INFLUENCES OF E-HRM ON THE INDIVIDUAL EMPLOYEE PERFORMANCE IN CONSTRUCTION INDUSTFUES IN SELANGOR

RESEARCH PAPER FOR MASTER IN HUMAN RESOURCES MANAGEMENT

PART A: DEMOGRAPHIC INFORMATION

Kindly tick

(4)

the appropriate response in the box provided

1 Gender:

Male 2 Age in years

1 8 3 0 31 - 40 41-50 50 and above 3 Level of education

SPM Diploma

Degree

L!

Masters

1 1 '

4 Length of selvice in your current organization:

1-3 years 4-6 years

more than 7 years

5 How long has it been introduced EHRM?

1-3 years 4-6 years

more than 7 years

(32)

PART B:

The perception of influence of EHRM on the individual employee's performance is scored on a five -

5 - Strongly agree, 4 - Agree, 3 -

Average, 2 - Disagree, 1 - Strongly Disagree

Section I: Influence of e - Recruitment and e- Selection on individual employee's performance of Construction Industries in Selangor

uccess rate of recruitment &

I

selection process.

I I

Section 11: Influence of e - Training & Development on individual employee's performance of Construction Industries in Selangor

(33)

Section 111: Influence of e - Compensation and Benefit on individual employee's performance of Coilstruction Industries in Selangor

Section IV: Influence of e -Performance on individual employee's performance of Construction Industries in Selangor

10

salary calculation enhances speed and accuracy

NO.

11

12

13

14

15

16

Disagree 2 The discussion of employee

performance is no longer done face to face.

My company is using performance appraisal software for evaluation purposes.

E-HRM tools can he used to improve underlying business processes.

E-HRM tools have allowed for higher quality HR services.

E-HRM tools allow me to work more productively.

E-HRM tools improve quality of services.

Average 3 Str@$@x :,.. .>..,~

Disagee 1

Agree 4

---

Strongly Agree

5

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HR services have been streamlined and standardized using information

-HRM activities reduce cost

The use of e-HRM tools is more cost effective than manual HR

The advantages of e-HRM are outweighed by the cost

Section V: Dependent variable: User 1 Individual employee's performance

Strongly AgWe

5 Agree

4 Disagree

2

-

Strongly Disagree

1 NO

21

22

Average 3 E-HRM tools provlde current

rnformatlon that 1s beneficla1 to employee related

declsion m a h n g E-HRM tools help HR

practitioners handlrng tasks more

systematic and efficient Fewer errors occur when

24

-

25

26

HR professionals, wlth the help of e-HRM tools, can play more of an advlso~y

role to line

management E-HRM tools able to help HR

Manager make the declsrons qurckly and better

The use of e-HRM tools has led to

the automation of routrne HR

work

(35)

Appendix - B

Frequency Of Demographic

FREQUENCIES VARIABLES=AQl AQ2 AQ3 AQ4 AQ5 /ORDER=ANALYSIS.

Frequency Table

A Q I Statistics

AQ5 200

0

1

Valid 41-50

I

Valid N

Missing

MALE Valid FEMALE

Total

Frequency

I

50 AND ABOVE

Tntal

I

AQ2 200

0 AQ 1

200 0

Valid Percent

47.0 53.0 100.0

Cumulative Percent

47.0 100.0 Frequency

94 106 200

I I I I

Percent

37.5 30.0 26.0 6.5 inn n AQ3

200 0

Percent

47.0 53.0 100.0

75 60 52 13 7nn

AQ4 200

0

Valid Percent

37.5 30.0 26.0 6.5 inn n

Cumulative Percent

(36)

AQ3

I

1-3 YEARS

I

100

1

50.0

AQ4

Percent SPM

DIPLOMA Valid DEGREE

MASTER Total

Frequency Percent

34.0 29.5 33.5 3.0 100.0 Frequency

68 59 67 6 200

Percent

I

Total

I

200

1

1000

1

100.0

1 I

4-6 YEARS Valid

MORE THAN 7 YEARS

I

Frequency Percent

Valid Percent

34.0 29.5 33.5 3.0 100.0

Cumulative Percent

34.0 63.5 97.0 100.0

41 59

4-6 YEARS 20.5

Valid

MORE THAN 7 YEARS

I I I

26.0

I I

Total

I

200

1

100.0

20.5 29.5

1-3 YEARS

Valid Percent Cumulative

I

20.5 29.5

107

Percent

100.0 70.5 100.0

53.5

(37)

Appendix - C Reliability

Independent Variable-1: E-recruitment and selection

Cronbach's

Alpha Alpha Based on Standardized

ltems

ltem Statistics

BQR7

BQR8 4.01 ,437

Inter-Item Correlation Matrix

1.000

BQR7 1.000

BQR8 ,477 ,788 1.000

Independent Variable-2: E-training and development

Summary ltem Statistics

Reliability Statistics Cronbach's

Alpha Alpha Based on Standardized

N of Items

3

Items

Maximum / Minimum

2.105 Item Means

,758

Valiance

1.436 Maximum

4.010

.702 3

Range

2.105 Mean

3.288

Minimum

1.905

(38)

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ooz

N

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P1 30 8

PSb' El

30 8

LbZ' L O

' b Z1308

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pa z!

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uo paseg eqdlv

eq d~

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swat1 40

s.q3equol3 N

s.tpequo~3 ~a e! !q !~ S~!IS!I~)S h

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tl

)gauaq put!

uo g~

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n!

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E sluall4o

N

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~

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~

O L Z 'b

lunlu!xeln]

LOZ'Z unw!u!yy

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SE6' 1

wnlu!u!ln]

(39)

Z19' LE9' POS' 96E'

OOZ S8

P

OOZ ZSS'

EL'P 0 L ' P

E O ' P

96 E

paz!pJepuels

uo paseg eqdlv

suean wa)l

s3!js!)e)S L ua

&~ q

et uw ns

S66'E uean

P swall jo N

S9o'P wnw!xen

096'E wnw!u!w

ZOO' a3 ue

!~

e~

L ZO ' 1 wnw!u!n

wnw!xew 1

S O L '

a6 ue

~

(40)

Inter-Item Correlation Matrix

Dependent Variable: Employee Performance

BQP16 BQP17 BQP18 BQP19 BQP20 BQP21 BQP22 BQP23 BQP24 BQP25

Summary ltem Statistics

Cronbach's

Alpha Alpha Based on

Standardized Item Means

BQPl6

1.000 492 .779 .617 -.239 -.I40 ,208 ,480 3 5 3 ,687

Mean

4.015

ltems BQPl7

,492 1.000 ,668 ,664 -.254 -.I48 ,518 ,509 ,755 ,599

.784

Minimum

3.920 BQPl8

,779 5 6 8 1.000 ,768 -.289 -.I69 ,297 ,579 ,618 .710

3 6 0

Maximum

4.1 30

6 BQPl

9 ,617 ,664 ,768 1.000 -.218 -.I27 ,235 ,437 ,491 .548

Range

,210 BQP20

-.239 -.254 -.289 -.218 1.000 ,416 .391 ,429 -.239 -.267

Maximum /

Minimum 1.054 BQP21

-.I40 -.I 48 -.I69 -.I27 ,416 1.000 -.I43 ,432 -.I40 -.I56

Variance

.005 BQP22

,208 5 1 8 ,297 .235 ,391 -.I43 1.000 ,491 ,453 .I 11

N of Items

10 BQP23

,480 509 ,579 .437 ,429 ,432 .491 1.000 ,480 ,536

BQP24

,653 ,755 618 ,491 -.239 -.I40 ,453 ,480 1.000 ,544

BQP25

.687 .599 ,710 ,548 -.267

-. 156 .I11 ,536 ,544 1 .OOO

(41)

ltem Statistics

BQU26 BQU27 BQU28 BQU29 BQU30 BQU31

Inter-Item Correlation Matrix

BQU26 BQU27 BQU28 BQU29 BQU30 BQU31

Summary ltem Statistics Mean

4.06 3.96 4.06 3.90 3.99 3.88

Mean

I

BQU26 1 0 0 0

,547 1.000 ,533 ,571 ,415

Minimum Std. Deviation

,238 .484 .238 ,525 ,448 ,684

Minimum

N 200 200 200 200 200 200

BQU27 ,547 1 .OOO

5 4 7 6 3 4 5 0 0 .I66

Item Means 3.973

Maximum BQU28

1 .OOO ,547 1.000 ,533 ,571 ,415

3.880

Range BQU29

,533 ,634 5 3 3 1 .OOO

,551 ,301

4.060

Maximum / BQU30

.571 5 0 0 571 .551 1.000 .I 93

.I 80

BQU31 ,415 ,166 .415 ,301 .I93 1.000

Variance N of Items

1.046 .006 6

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