The Extent of Application of Information Technology in Human Resource Management by Insurance Companies in Nairobi.
Abstract
Basic human resource systems can be enormously paper intensive but today, its
becoming more unwieldy and inefficient to rely on manual human resource
systems. There are rapid advances in information technology, a turbulent labour
market, and mobile workforce in a global market place necessitating higher
recruitment and retention efforts by employers. All the management functions are
thereby faced with both a challenge and opportunity and especially so the human
resource professionals are being asked to do more with less, to do different work
and do it better, necessitating the increased use of information technology, to
among other things, speed up recruiting and improve employee development,
performance management and succession planning.
The objective of the study was to determine the extent to which information
technology is being used in human resource management by insurance companies
in Nairobi. The literature review looked at the insurance industry in Kenya,
information technology and human resource management, and the emerging
applications to human resource management. This revealed that the integration of
information technology in human resource planning, recruitment, selection,
placement and termination, training and all other human resource activities can
provide critically needed advantages in quality, cost effectiveness and operational
flexibility.
The study was a census survey. A descriptive research design was adopted for the
study and primary data was collected using a semi-structured questionnaire which
was administered on a drop and pick later method though some were filled with
the presence of the researcher. The respondents involved the human resource managers or the information technology managers where the former was unavailable.
Data collected was then analyzed and it revealed that the insurance companies in
Nairobi have not fully embarked on the use of information technology in the
management of their human resources. The human resource functions have been
automated to some extent which has resulted in efficiency in the processing of
data, better and faster communication, ease of recruiting and training, and the
general running of the human resource activities. Yet a lot remains to be done.
There is still high integration of manual systems in human resource management
especially with computerization and networking being just moderately installed in
most of these companies. Some are still engaging in a hundred percent use of
manual systems in their staff records, recruitment, selection, orientation, training
and development, performance appraisal succession planning, promotion,
turnover, discipline and leave administration.
Citation
A Management Research Project Submitted in Partial Fulfillment for the Degree of Master of Business Administration (MBA), School of Business, Nairobi.Publisher
University of Nairobi Business Administration and planning