The Impact of eHRM Practice on Organizational Performance: Investigating the Effect of Job Satisfaction of HRM Professionals

Abstract

In this study, an integrated eVALUE model is introduced to examine the relationship between organizational performance and electronic Human Resource Management (eHRM) practice. The model also explored the drivers of electronic Human Resource Management (eHRM) practice in the organizations. The primary data collected by using a pilot survey and closed-ended questionnaire designed on Likert 7-point scale. Simple random sampling was adopted to yield 674 acceptable responses from 165 organizations in Bangladesh. The structural equation modeling results indicate that only six drivers out of nine namely senior executives’ attitude, IT skill of HRM professionals, perceived compatibility, senior leadership support, firm culture and competitive pressure are revealed a strong positive effect on eHRM practice. The study revealed a positive and significant relationship between eHRM practice and organizational performance. Moreover, the effect of job satisfaction of HRM professionals is observed to partially mediate on practice - performance relationship. The practical implication of the outcome of study and the extent of further research are postulates at the conclusion.