IIBF CAIIB HRM and Information Technology | Advanced Bank Management

IIBF CAIIB HRM and Information Technology | Advanced Bank Management


HRM and Information Technology:- In this article, we will be meeting about the impact of Information Technology on HRM. In today’s scenario, as we can see that it has impacted the business in so many ways, it’s only viable that it to the sun also impact field of the human resource management in the organisations or businesses. 

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In HRM, we see activities like recruitment, training, and development of the organisational personnel. Main objective of HRM should be to achieve competitiveness in its field by regularly educating and wearing the employees of the organisation. 


It has been proved that ICT: Information and Communication Technology has the ability to the personnel policies of the organisation by allowing the companies to improve their internal processes, core competencies, relevant Markets and organisational structures as a whole.


Technology development plays an important role in the process of innovation and may include acquired knowledge. Thus, in this context, each and every activity may have some technical content that could result in greater technological advancement, thereby, increasing efficiency of the recruitment system when applied in HRM. 

Innovation in Human Resource Management can be utilised in a number of ways. Some of the important ones are mentioned below: 

  1. Quick and flexible identification of solutions during a negotiation 
  2. Identification of new ideas for services and products 
  3. Identification of new markets 


To better understand how it has impacted the human resource management in the organisations you can read the following points: 

  1. Better services to line managers 
  2. Enhancement of management system 
  3. Effective recruitment 
  4. Management of data and critical analysis 
  5. HRM and tools of inventory management 
  6. Reduction of cost and increase in efficiency 
  7. Customer service and HRM 
  8. Career development and Human Capital Management 
  9. HR processes automation 
  10. Establishing the company as a brand


BETTER SERVICES TO LINE MANAGERS: The primary function of HRM is to support the organisations workforce needs. Having proper coordination between HR and line managers helps in reviewing future projections and determining whether the current employees should be trained for higher roles or new candidates should be recruited. 

IT tools, in this whole process, will prepare the line managers for the number of leadership tasks. 

ENHANCEMENT OF MANAGEMENT SYSTEM: IT tools in HR will supplement in the management and enhance its efficiency and effectiveness, which is simply going to make the organisation successful. All over the world, businesses are trying to find ways to improve organisational performance irrespective of the size. Managers sometimes by your the performance by comparing it with other benchmark and then analyses the results to design the controls accordingly. 

All the above can be better done by customized it to spot a chart as per the organisational needs.

EFFECTIVE RECRUITMENT: In today’s time, businesses have already realised that it helps in the effective recruitment. There are various job portals available on internet to search the best candidates. As more and more people came to know of the offers, the probability of hiring efficient employees increases. 

It also works as promotional tool for the businesses by presenting all the necessary information related to job career and personal development of the employees on the job portals online.


MANAGEMENT OF DATA AND CRITICAL ANALYSIS: IT has made the management of data very easy and that too paperless. The monotonous tasks need note to be done manually which increases the efficiency and effectiveness of work. HR IT tools can critically analyse the employees’ performance and can identify the tasks that are highly repetitive in nature, thus, disliked by them and results in low efficiency.

HRM AND TOOLS OF INVENTORY MANAGEMENT: Entrepreneurs having business insight have described that the organisational performance can be more effective and efficient by operational efficiency, customer intimacy and leading edge. To attain all this, organisations are using HR tools to devise a universal set of products and to diversify the businesses by improving products and services.

REDUCTION OF COST AND INCREASE IN EFFICIENCY: IT tools helps in the preparation of various reports online. Today, information Technology tools are also handling compliance work with the payroll tools. This has reduced the cost and making the processes efficient and workable. 

The performance of the organisation can be increased by using ‘management by objectives’ and a participating style of Management with HR IT tools. 

Organisational Management is answerable to the business owners for the performance and achievements of organisation. And managers when produce the desired economic results can justify their authority. Operations research is usually used to increase the profits, yield, and the performance. Usually, a measurement system is set to view any changes in measure the organisational performance.

CUSTOMER SERVICE AND HRM: The performance of organisation can be evaluated by evaluating the reliability and the quality of its service that is being provided to the customers. Value comes from reliable service, which is to say, customers know that they will get rendered on time and with good service quality. 

Because change in organisation is inevitable, there should be a revision in critical success factors and key performance indicators on regular basis it tools must be incorporated in the HR to increase the quality of work.

CAREER DEVELOPMENT AND HUMAN CAPITAL MANAGEMENT: Where are you planning tools available and are being used by businessmen to manage personal development and career parts along with those of their employees. This career planning tool is basically a learning and knowledge-based system. 

Evaluation of performance and career progression works as a motivating factor for the employees. 

Thus, having a sound performance evaluation system under HR IT tools is crucial for the organisation as people rely on it. 

Reward system should be reviewed on the regular basis so that rewards a duly based on the performance of the employees. 

But as the performance targets are not in the form of Finance terms but in the form of recognition and promotion, therefore, managers must ensure the employees that the promised awards will be given to them as per their performance. 

Human resource IT tools helps in achieving organisational goals by providing better services to line managers, maintaining proper coordination among the organisation of personnel, providing important data to strategize personal decision making enabling quick acquisition and analysis of information which in turn results in reduced labour costs.

HR PROCESSES AUTOMATION: As HRM involves many processes it is considered to be a complex domain in the organisation. It might happen that HR people might find themselves spending too much time in mundane, monotonous activities when they should be focusing on some more serious issues. 


By implementing the technology into the HR frees them from the routine work. Automation also eliminates paperwork, increases execution speed and helps in efficient HR performance. 

Though, we should not forget that HRM is not possible without people. While empathy and the experience of HR personnel is important, the technology can significantly improve the work quality.


ESTABLISHING THE COMPANY AS A BRAND: A good established company, having a brand name, also plays an important role in attracting and retaining the employees. With the help of IT, businesses now and build their strong presence in the online environment and can reach potential employees with minimum effort. 

With branding and design of website, business presence on main market places and online accessibility remote direct interactions between a potential employee and the business. Today, social media has also become a branding tool where businesses can share key information while candidates can look there to search the employment opportunities. This has eased the process of finding good employees for the companies. 

Thus, IT tools not only helps in finding the talent but also the business HR can we reach the top talent and promote the company online too. 


So, as it could be understood from the above text, we can understand how IT has changed some major scenarios in the field of HR. It has basically reduced the routine work, bought automation in the actual HR processes, increased the quality of service for customers, come up as a tool of inventory management, helped managing the data, made the recruitment more effective and have the business to establish as a brand. They are far more benefits of having IT in the organisational structure.


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