Introduction
Cloud computing has instigated a new paradigm shift towards a more elastic information technology infrastructure following increased advancements and evolution of information and communication technology. The global spending on cloud-based IT infrastructure rose from $47.4 billion in 2013 to over $100 billion as of 2017 (Chen & Wu, 2015). This is an indication that cloud computing is becoming the current trend in the ICT sector. The sole aim businesses have begun investing in cloud computing is that they only require a computer network or internet to access various computing resources. More importantly, they will pay for what they have used during the entire period. One field that has not been left behind regarding the benefits of cloud computing is the human resources management. In human resource management, cloud computing had played a vital role in boosting performance, scouting for quality talent and organization of employee data. Cloud computing has also helped in eliminating the communication gap existing between human resource management, the employees and the overall management.
Background
One of the fastest developing segments in the economy is the IT industry. Technology has changed the entire business operations by not only introducing computers and making work more manageable . Over the last decade, the use and adoption of technology in the Human Resource management field has tremendously grown. The use of technology in human resources has emerged as a field in itself as from the 1990s (Kumar, 2017). The human resource software marked the commencement of technological development with the aim of improving the employee’s lives. According to Kumar, (2017), the human resource information system technology emerged during the late 1980s making it possible for the human resource department to perform various functions such as workflow management, compensation, training, and absence management. With the introduction of this system, the use of paperwork was eliminated making the department more efficient. The HCM systems later followed thus allowing the human resource department to perform various analytical functions, performance appraisals, position control, salary planning, and succession planning. The HRMS software later followed making it an improvement of the HCM by improving the processes of the HCM software (Kumar, 2017).
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It is an indication that the human resource management field has for long relied on various human resource management system software in updating the employee's databases and skype in conducting employee interviews during the selection and recruitment process. In the 21 st century, the adoption of technology is much higher, and no sector can exist or thrive without using some form of technology. However, following technological advancement, there has been a new technological breakthrough on another platform that can tremendously improve the human resource management, cloud computing (Wang et al., 2016). The human resource management has seen a transition from the HRIS to HCM to the current HRMS that is widely used in most businesses. Even so, with cloud computing, it will transform the human resource management field even much better. According to Kumar (2015), Zappos, an online shows business has begun using cloud-computing technology in the recruitment of its employees. The company has an online community platform referred to as InsideZapposs and through this; its applicant pool has tripled. Cloud computing is also economical, unlike the traditional HRMS software that requires constant updates and specific hardware. Cloud computing services allow the human resource department to make its employees feel equal for employees can access information using simple user password and ID. Cloud computing will also help the human resource department in improving its talent management process, easy implementation and it is fast and safe.
Purpose
This proposed term paper aims to highlight the impacts of cloud computing on human resource management. Cloud computing is a new technology, and thus, some organizations might still not be ready to use the technology. Nonetheless, the results of this proposed term paper will be used in instilling confidence to businesses that have not yet adopted cloud computing. The company should be ready to eliminate the use of HCM, HRMS and HRIS systems and invest heavily in cloud computing to improve their employee job satisfaction rates.
Significance
In any business, employees are amongst the most vital assets. However, some industry has significantly invested in improving customer satisfaction rates leaving out employees. What such businesses forget is that, without the employees, the company cannot meet the customer needs and wants. A substantial number of businesses tend to use outdated technologies in managing the human resource department. This brings about a breakdown in communication among other factors that affect employee job satisfaction. Nevertheless, this proposed term paper will be able to show the business benefits of using cloud computing to improve employee jobs satisfaction rates thus fostering an increased customer experience that translates to more revenues.
Methods
The proposed term paper will employ a literature review analysis in reviewing the topic. A literature review analysis encompasses the use of various books, theories, scholarly articles, and other secondary services that are relevant to the study topic. The literature review analysis will make it possible for the coming with an evaluation of the various works related to the topic . A systemic literature review will be employed. The aim of using this type of review is that it aims at providing supporting evidence about the positive impacts of cloud computing in improving the human resource management field .
Results
Centralization of Information
The most appreciated merit of cloud computing in human resource management is the centralization of information. For a business, it will mean that there is much more ease in accessing information related to the department such as the retrieval of the human resource registry is made easier among others.
Easier Recruitment Process
A considerable number of companies have relied on the traditional vacancy advertisement, selection and recruitment processes. Cloud computing helps in streamlining the entire process (Kumar, 2017). Using a single software application ; the human resource management can view the candidates’ data and give back feedback all enabled by clicking a single button.
Boosting Employee-Manager Communication
Communication in the workplace is vital. Any breakdowns in the communication process can negatively affect the entire job productivity and the ability of an organization to meet its goals. With cloud computing, it bridges the communication gap between the employee and manager thus boosting overall productivity (Lv et al., 2018).
Safe
Cloud computing enables an organization to store its employee records in virtual databases. This makes the information more secure as compared to the paper-based files and folder system.
Economical
One of the most significant merits of cloud computing is its set up. In the case of the HCM, HIRS, and HRMS, it requires a company to have a particular software and related hardware. In the case of cloud computing, a business does not have to install any form of hardware for all information is accessible remotely through laptops, smartphones, and tablets. The only expense the business may incur includes the troubleshooting and maintenance requirements that are rather negligible (Kumar, 2017).
Fast
Cloud computing gives every department an ability to update all information related to its employees. The human resource manager does not have to update the information continuously . This allows the human resource manager to focus on other more critical issues related to the department. Through this, the work is done with greater perfection and accuracy (Kumar, 2017).
References
Chen, S. C., & Wu, C. C. (2015). Human Resource Development in Cloud Computing: An Empirical Investigation in Taiwan. Journal of Management Research , 7 (3), 102-114.
Kumar, R (2017). Cloud technology and human resource management. Annual Research Journal of SCMS .5, 82-91.
Lv, Z., Tan, Z., Wang, Q., & Yang, Y. (2018). Cloud Computing Management Platform of Human Resource Based on Mobile Communication Technology. Wireless Personal Communications. doi:10.1007/s11277-017-5195-y
Wang, X. L., Wang, L., Bi, Z., Li, Y. Y., & Xu, Y. (2016). Cloud computing in human resource management (HRM) system for small and medium enterprises (SMEs). The International Journal of Advanced Manufacturing Technology , 84 (1-4), 485-496. https://doi.org/10.1007/s00170-016-8493-8
