The role of information technologies (IT) in human resources management (HRM) of Armenian public and private organizations

Abstract

This study compares public and private organizations of Armenia in terms of level of automation of HR activities. It also explores the different types of impacts that information technology (IT) has on HR activities. Snell et al. (2001) mention three types of impacts of IT on HR activities. There is an operational impact when IT improves operational efficiency of HR by automating routine activities, decreasing costs and increasing productivity. Relational impact influences HR department’s relationships with other parties within the organization. Finally, the transformational impact of IT includes changes in the scope and function of the HR department. The study explores whether: (H1): the level of automation of HR activities is higher in private organizations than it is in public organizations of Armenia; (H2): the level of automation of HR activities in Armenian organizations is correlated with the transformational impact of IT in the organizations. Four organizations in Armenia are used for a comparative case study - two public and two private – with each group having a foreign entity as well. The study has found that the level of automation of HR activities is higher in public sector organizations than it is in private sector organizations. The highest operational, relational and transformational scores were recorded in public organizations, where also the level of automation was the highest. The study also confirmed the hypothesis on correlation between the size of the organizations and the transformational score. The essay ends with discussion on the limitations of the exploratory research, arguing for a research based on a larger sample.