HRM and Information Technology: Caiib Paper 1 (Module C), Unit 6

HRM and Information Technology: Caiib Paper 1 (Module C), Unit 6

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We all know that CAIIB exams are conducted by the Indian Institute of Banking and Finance (IIBF).  CAIIB is said to be one of the difficult courses to be cleared for the bankers. But we assure you that with the help of our “CAIIB study material”, you will definitely clear the CAIIB exam.
CAIIB exams are conducted twice in a year. Candidates should have completed JAIIB before appearing for CAIIB Exam. Here, we will provide detailed notes of every unit of the CAIIB Exam on the latest pattern of IIBF.
So, here we are providing “Unit 6: HRM and Information Technology of “Module C: HRM in Banks” from “Paper 1: Advanced Bank Management (ABM)”.

The Article is Caiib Unit 6: HRM and Information Technology

Using technology to continuously improve the quality of the work. Technology can improve the information available to HR, facilitating HR processes, and making them faster and more effective. One of the biggest allies in HRM, HRIS is adopted to make organizations more accurate and effective.

The banking sector has absorbed maximum technology for their operations. IT has offered a variety of delivery channels to support customers’ needs in an efficient and effective manner.

Role Of Information Technology In HRM

As such its first responsibility would be to adopt the IT orientation within the department. There is tremendous scope to use IT in a whole range of HRM functions. viz. recruitment, training, placement, appraisal and reward systems, organizational development initiatives, etc. The need for use of IT can be seen through the following observations:

  • Certain basic information about an employee is used by number of functionaries within and outside the HR department. For instance, if the organization has a geographical spread, the information about an employee is floated at field units, maintained and processed at field administrative units as well as at the corporate (control) office.
  • The database related to an employee is becoming broad-based as various dimensions are getting added. e.g. along with the traditional data regarding salary, allowances, increments, leave, etc.
  • Updating the data could be done partially by different individuals from different locations.
  • The decisions related to HR – day-to-day or policy reviews – need to be embedded in databases to achieve objectivity and consistency in decisions. Such objectivity is imperative and can be achieved as IT enhances transparency.
  • Human Resources being one of the significant components of internal environment, policy review must be undertaken to respond to the changes.
  • To ensure adherence to statutory requirements, maintaining of such database is needed.

Human Resource Information System (HRIS) 

  • Human Resource Information System (HRIS) has become an organizational necessity. The need for HRIS is an offshoot of the requirement to take frequent strategic decisions concerning employees. Decisions taken on the basis of information, whether it is concerning, posting, training, compensation, job rotation, promotion, etc.
  • Maintenance of Database, Access Control and Use for Decision Making
  • It is evident from the contents of HRIS database mentioned  above  that  all data do not need updating frequently. Some of the static data required to be entered only once in master file, viz., name, date of birth, date of joining, etc. Data on placement, training, etc.,
HR Research
  • Research in HRM can be undertaken to understand: trends of existing systems like recruitment, promotion, training, appraisal system etc. to understand the workforce in terms of motivation, commitment, expectation, frustration etc. to remain sensitive to internal environment, regular opinion surveys, benchmarking, climate studies etc. can be conducted.

Knowledge Management (KM)

  • KM refers to process of (a) creating, (b) storing (c) distributing and (d) pooling the knowledge (as per Wilcox-1997).The people in a system are the sources of creating knowledge while storing and distributing the information is the responsibility of the information technology machinery of the organization.
  • Hence management of ‘knowledge worker’ is very critical issue and cannot be done by traditional, bureaucratic process. Knowledge management has gained prominence in the light of the uncertainty that the employee who has created the knowledge, will continue with the organization or not, particularly where the attritions le77els are higher.
Technology in training

The technology offers an opportunity in designing training interventions to suit the individual learners. Important features are:

  • Mass learning user friendly material can be produces at low cost.
  • Trainers and trainees can be physically separated.
  • Trainee has the option to choose time and date and place and convenience form for learning.
  • Technology based training methods help in distance learning.

Advantages of E-Learning:

  • Enables learner to study at his convenient time and place and can have privacy
  • Enables him to study at his own pace
  • Can offer high level inter-action with immediate feedback and provide opportunity to check his understanding
  • Can be simulated to real life situation
  • Can be cost effective depending upon its use

Disadvantages of E-Learning

  • Relatively inflexible depending on a pre-produced programme
  • Requires greater self-discipline and commitment by the learner
  • May induce a sense of isolation
  • Does not permit personal reinforcement, therefore, the motivational effects are forgone
  • Can prove costly as expensive H1W and S/W are required

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